If you're like Andrew Bloom and I, "Built to Last" might conjure images of the Grateful Dead's final studio album. I prefer "Blues for Allah", an album hanging on one of Bloom's office walls.

If you're a serial entrepreneur or Self-Helpist (yes, I made that word up) you may be thinking of Jim Collins' book Built to Last. This is the Sophomore follow up to Good to Great. Again I prefer the earlier effort.

If you're an insurance agency owner you're probably well aware of the evolving market place.

The disruption that is taking place started with PPACA and it has shaken insurance to the core. It has also created new competitors that have been wildly successful at answering the needs of your clients.

Consolidation of insurance companies and insurance agencies has changed how and where you place premium.

If you're even more concerned with the future you may be like Warren Buffet. He sees a "Real Threat" when self-driving cars hit the road. The liability shifts from the driver to the manufacturer. Goodbye auto insurance.

And what happens when your customers can buy all of their insurance from Google?

Are you built to last?

The demand for solutions like payroll, Human Resource services, and more technology require brokers to spend more money.

The insurance companies are also lowering commissions. This is creating a critical business moment for many agency owners.

Look at your Year Over Year Over Year net revenue. See if it is growing and at what rate then ask yourself, "Is this sustainable?"

Is price "King"?

If that is true then you better have enough revenue with your carriers to get the best rates.

If you can't get the best rates then what is keeping your clients from leaving you to save 10%-15% with larger agency?

Insurance companies will continue to show favor to the large agencies.

I have the relationship.

You have the relationship today. You went to college with the business owner. You belong to the same country club as the CFO.

Like you these owners want to sell there business one day or give it to their kids. The CFO may go somewhere else.

Will you have the relationship tomorrow?

The Answer

There is an adage "Safety in Numbers".

That could mean a large surplus of cash.

It could mean having many clients diversified by industry and location to distribute your risk.

It could mean all of your premium with just a couple of carriers.

It could mean joining a larger agency.

-R