Am I large enough for an agency management system?

Having the reputation of being a good fit for small to medium sized agencies, we are asked this question by small agencies every day.  The answer is simple; an agency cannot be too small to need an agency management system.  You knew we were going to say that, right?  This is how we make our living after all.  But every month, we have about fifteen 1-2 man shops that must agree with us because they buy our system.  Let’s back that up with some food for thought. 

You are going to open your doors next month.  You’ve spent thousands getting an office space, buying furniture, setting up phone systems and internet lines, buying computers, advertising and let’s not forget E&O insurance.  Those are all must haves before you can write that first policy.  So why, now that you’re in debt, would you want to spend more money on something like a management system?  You know agencies that have operated for decades without a system and they are doing just fine. 

As a small or scratch agency, the single most important thing you want to focus on is growing your business.  You can’t afford a CSR, so you have to do it all.  Take phone calls, do quotes, write the applications, satisfy all the underwriters questions, service the new clients, remember website addresses and passwords for each carrier, pay the bills and so on.  Let’s face it; you are going to be busy.  Doesn’t it make sense that you need to be as efficient as possible?  As your business grows, so does the need for customer service.  The longer it takes you to do all these tasks, the less time you are going to have to sell.  And the last thing you want to do is hire a CSR and have an additional salary to worry about.  If you wait, that is exactly what you’ll have to do.    

Let’s look at another scenario.  You waited.  It is one year later.  You come in at 7am and the phone rings off the hook all day.  Around 5pm, you finally start processing all the requests that came in earlier.  Around 9 or 10pm you leave.  You really need an agency management system, but you don’t have time to research them, train and set it up.  So instead, you hire an experienced CSR who can come in and start helping immediately.  That will free up some of your time so you can begin looking at systems.  But now you’ve got another salary to pay for instead of just a management system.  That’s at least a $20,000 loss in your 2^nd year of being in business.  And you have no life!  You’re always tired and the dream you had of opening an agency becomes a nightmare.  Your service goes downhill and the last thing you want to hear is that there is a quote needed on line #1.

Instead of going down this path that so many agents choose, why not try a better route?  Setup a management system before or within the first few months of opening your agency.  If you learn to use the tools provided within the management system, not only are you going to make an invaluable investment and save money on salaries, but you are going to establish procedures for future employees preventing E&O problems, you are going to look forward to quotes, you will be able to provide better, quicker customer service and you will lead an overall happier life.  The business you build will be a rewarding one.  So you ask, “Am I large enough to purchase an agency management system?”  The answer is, do it now while you have the time.  You can’t afford not to.