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For years, I worked with large, regional agencies across the Midwest; but, on a handful of occasions, I had the chance to work with some small to mid-sized (SMB) boutique-style firms.

Full disclosure: My initial impression of SMB firms wasn't great. I’ll tell you about one particular experience. I walked into a small office in rural Wisconsin—there was dated wood paneling in the reception-less lobby and a dusty fax machine in the corner. It was decorated with wallpaper from the mid-90s, and, worst of all, on the wall was an inspirational poster with the words “Dare to Soar” printed over a picture of a bald eagle flying in front of a mountainous backdrop. Needless to say, I wasn’t very encouraged or excited about the idea of working with SMB firms.

Throughout the past couple of years, my career has afforded me the opportunity to focus on the SMB marketplace and to work with hundreds of SMB-style agencies across the country—all of which has allowed me to reassess my initial impression of the SMB space. Just like the time I mistook green wasabi for guacamole, I quickly learned that appearances can be deceiving. Many SMB firms possess an entrepreneurial spirit and embrace the fact that they are lean and nimble. In fact, a lot of these organizations have used their small size to their advantage.

Following are three strategies that I’ve seen SMB agencies employ in order to capitalize on their size and level the playing field with large national and regional brokers.

1. Attack compliance issues and boost your agency value proposition

Don’t let compliance intimidate you. I see too many agencies avoiding this conversation when they should be embracing it. Get rid of the stale sales pitch—“We have great people and service”—and lead instead with compliance-related issues you know your clients (and prospects) struggle with. Become the expert in your area. We’ve found a growing number of agencies are wrapping compliance-related topics such as the Patient Protection and Affordable Care Act (PPACA) and the Department of Labor (DOL) into their conversations. In turn, they are boosting their value propositions and brand reputations by providing a highly sought after value-added service.

Want a great sales idea? Search recruiting sites, such as LinkedIn, Indeed, Glass Door and Monster, to find out which companies are looking for HR support. Then, target those prospects and show them how they can fill the gap without hiring more staff.

How do you become the compliance expert? Find a good partner to help you navigate this space. This could be a technology firm or a local law firm. A warning to those sticking their heads in the sand on compliance: Expect to lose clients or prospects if you’re not prepared to have this conversation. Other brokers are leading with compliance conversations and winning business as a result.

2. Recruit millennials and advance your agency culture

Generation Y, or millennials (25- to 35-year-olds), often get a bad rap. However, there are a lot of bright, ambitious individuals who are part of this generation. The tide is turning, and as baby boomers retire, millennials will begin to make up more of the workforce. So, it’s imperative that you find ways to attract and motivate this generation.

Millennials are looking to make a big splash. Case in point: I was at a career fair in Milwaukee a couple of months ago. Zywave was one of many companies there looking for bright talent. Many young professionals told me, “I am more interested in working at a small company than a large company.” I learned that it was because millennials want the opportunity to be involved in meaningful projects—ones that affect the organization at a higher level. They are not satisfied with feeling like they are just a “cog in the machine.”

Lastly, millennials embrace technology and thrive on change. Their flexibility can be an incredible asset to an SMB firm that needs to be nimble and adaptive. Targeting this young demographic is a good way to find “non-insurance” talent that can bring different skill sets to your agency—helping you advance your culture and remain competitive in a changing market.

3. Embrace being a local, boutique firm and find your stride

Showcase the benefit of not being a national alphabet-house agency. All too often, large agencies kick small to mid-sized groups into the “house account” bucket. Their business relationships now spin in the revolving door of account managers. Embrace being a one-man band (or a duo or trio). You can interact with your clients on both the day-to-day and strategic business decisions. This gives you the ability to provide advice and make decisions from a holistic point of view, as opposed to a siloed, narrowly focused approach. Being an SMB firm means you have the unique opportunity to position yourself as a consistent and valued asset to an organization—and this is how you win clients for life.

The three strategies I’ve shared aren’t necessarily revolutionary or groundbreaking. But, they don’t need to be—they just need to be effective. Even if you are an SMB firm (or you work for one) that still has a dusty fax machine in the corner and motivational posters hanging on wood-paneled walls, these strategies are actionable and can help produce the results you desire—despite any dated décor.

Andrew Metz is the Regional Manager for Zywave’s small to mid-sized business team. He currently manages dozens of sales reps and has developed the SMB team into a group of top producers. Andrew has demonstrated success in driving results for a wide variety of brokerages—working with one-person agencies, mid-sized shops, and large regional and national firms. Among his previous positions, Andrew served as an Inside and Outside Sales representative at Zywave and also worked on sales teams at Oracle. For more than three years, Andrew has been part of the business and communication studies programs at Marquette University.

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3 ways small to mid-sized agencies compete with large brokerages

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