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Insurance Agent Recession Survival – Business Strategies That Help!


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This recession is a very difficult time small-business owners; and not all companies will survive. To ensure that your insurance agency or brokerage is left standing when the economy finally recovers, there are actions you can take to help you withstand the financial storm while maintaining and perhaps even growing your business at the same time.

 

Cash Flow Management

 

One aspect that’s key to success for your insurance businesses in either a prospering economy or a recessed economy is effectively handling the cash that flows in and out of your company. Keeping track of your business’s cash flow becomes even more vital in difficult times. According to Power HomeBiz, effectively managing your outflows can help keep your business above the water when revenue or sales streams have gone dry. Begin by creating a budget and strictly sticking to that budget, limiting spending considered “nonessential,” removing waste and perhaps even negotiating with suppliers to adjust terms and negotiate for healthier discounts to support your profit margins. Reinvest your accumulated savings into fresh ways to develop your insurance business, such as revamping your website or making an investment in a brand new piece of equipment or a brand new product line.

 

Deliver Outstanding Customer Service

 

Delivering the best customer service is an intangible way by which to combat a recession with results that are tangible. Gauging best procedures in customer service can at times be difficult -what is pushy to one of your customers may be useful to another. However, this much is evident: Outstanding customer service can spearhead customer loyalty. Particularly in a small-business atmosphere, identifying your customers, mainly what they enjoy and what they deem to be essential, can create a difference in assisting you in keeping your customers. One of your primary goals should be focused on your current customers, making sure that their business remains intact and assuring that you do not provide them with any reason to go somewhere else or cease spending their money on what you are providing.

 

Ask Your Customers

 

Josh Gordon, who is the president of Smarter Media Sales, said in a published interview in the magazine “Publishing Executive”, in a recessed economy, one of the secrets to selling to your business-to-business clients is to ask the right questions. If your customers are withdrawing, it is up to you to determine why and how you can possibly help. Contemplate their reasons and search for solutions. If they are having a tough time with their cash flow, negotiate favorable terms of payment, comprised of installment plans or other types of creative financing; if the price is a concern, search for less costly options or reduce your prices for a limited duration. Your retail company could also gain from questioning your customers about what they desire. From inventory management to merchandising to pricing and marketing, your customers can give you insight on how to successfully run your company. If you have the correct merchandise along with the correct message at the correct price, your customers will purchase, whether in a recession or not.

 

Reestablish Yourself

 

According to the SBA, or the Small Business Association, businesses that are struggling during a recession can utilize the downtime as an opportunity to analyze their business practices. If you are an owner of a small business, you’ve got the power and ability and to implement a change if a change is necessary. According to the SBA, to do that, you must assess your company from the bottom to the top, examining your operations, your streams of revenue, your customer interface, even your primary business model. Search for opportunities, specifically when assessing your sources of revenue, to create fresh streams of revenue and new methods of conducting business. Nothing needs to be sacred; do not be frightened to strive for something different. Utilize a recession as a path to a fresh start, not as an excuse to put an end to the business you have built.

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