If it’s time to move on to the next stage of your career and leave your insurance agency, it’s helpful to have a game plan for how to do so. If you plan to sell your insurance agency (which may be the best move for you, depending on your long-term goals), take the time to make sure you’re in the best possible position to do so.
Before you are officially ready to sell your insurance agency , there are a few things you should do.
1. Make an exit plan
Depending on your long-term vision for your business, you may need to first decide how you want to
exit your insurance agency
. This should be done as early as possible. In fact, many business experts recommend creating an exit plan before you even start or buy a business. This can help you create a more cohesive and manageable business plan.
Your exit strategy should answer questions such as:
- Do I plan to sell the entire business, just the client base, or offer stock options?
- Do I sell to an outsider or leave my business to a friend or family member?
- Will I sell it to a group or an individual?
- Will I want to stay on as a consultant after the sale if asked to do so?
Doesmy insurance agency’s brick and mortar location need any updating or maintenance work? If so, how much am I willing to spend?
It’s important to answer these questions in order to have a more organized and less stressful sales process.
2. Value your business
Whether you hire a professional or decide to value your business on your own, make sure you are getting the most value from the sale. A professional may be the best choice since most privately owned businesses are steeped in years of hard work and are difficult to be objective about. Overvalue your business, and you risk alienating buyers in a lower price range who may be a perfect fit for you. And don’t shortchange yourself by undervaluing your business. All those years of hard work and happy clients are worth something and will be invaluable to a potential buyer.
3. Get organized
No matter what type of business you are selling, do your due diligence and make sure everything is in order for the person who takes over in order to make the transition as smooth as possible for everyone, including your clients. This means making sure your books are balanced and organized, all financial information is in one place, and any compliance issues are settled. This last one is especially important in a highly-regulated industry such as insurance. Leaving your buyer in a mess could not only affect them, but also leave your clients without insurance, and no one wants that.
4. List your business
Once you have done these things, it’s time to list your business for sale. This is the easiest part of the whole process. List your business online and attract buyers from around the globe, allowing you to make sure you’ve found the perfect match for your insurance agency.
Selling an insurance agency doesn’t have to be stressful. Following these helpful tips can make it easier for you. For more information, visit