Insurance agents often spend their 20s producing, their 30s managing, their 40s becoming owners, and their 50s and early 60s exiting their agency. (Shutterstock) insurance agency owner relatively young mistakes we've made

Related: Education, communication and collaboration

according to plan mentoring

No. 1: Develop owner mentality

be an owner

No. 2: Create value

No. 3: Get your house in order

No. 4: Grow organically

Organic growth

No. 5: Groom your successor

There are many ways to transfer ownership.

One last note about succession planning

  • Start early. It takes time to put in place stock plans, earn-outs or seller-assisted agreements — not to mention legal, accounting and tax planning.
  • Invest in your successor. Take steps to prepare them to become the new owner.
  • Eliminate uncertainty. Keep employees, clients and carriers fully informed to ensure a smooth transition.
  • Have a retirement strategy. What will be your role after you step down? Will you have a financial interest in the agency?
David Tralka ([email protected]) is the president and CEO of InsurBanc, a division of Connecticut Community Bank, N.A.  The opinions expressed here are the author's own.

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