I wonder if anyone else has gone through something like this.
I work in my family agency (3rd gen) and we consist of my dad (principal) me, a brother, sister, and 2 secretaries/CSR gals. My siblings are both brokers, with my sister recently starting. Right now commissions are assigned to the agency and I talk home half of what I bring in. The agency pays for all overhead and we have a formal office as well. In the last 2 yrs or so I've taken over most of the principals jobs, like marketing campaigns, finding new products, sales ideas. I've been in the business for 10yrs and just turned 30, my dad is 65 this year and is on the backside of working new accounts, learning new products, etc. I'm starting to feel like my 50% is a little too rich for the agency, and what they provide, so there is some frustration with that (as a broker feeling like I'm giving too much to the house).
There is also the concern of succession and taking our agency to another level. We have no formal plan in place but an upcoming talk about ownership. Because of our setup, I'm next in line to take over, even though I'm not the oldest. We have a great family relationship and work well together. There really isn't any hostility between us and we have a good relationship. A concern I have here is the longer I contribute to the agency, the more "expensive" it becomes. I guess I'm wondering if anyone has some feedback about direction or overall ideas (ie increasing my % of new business commission or buying 5% of the agency each year) of how an agency switches hands while still maintaining the same structure. A buyout or me going on my own isn't something we want to do.
I know my dad wants to stay involved and he does a great job with contracts/commissions but his complatency (after 30+yrs) with growth is frustrating when I'm ready to grow and expand. We are a l/h agency with about 80% in medicare and 20% in other products (ltc, ACA, fe). Our total revenue will be about 1.2-1.5m this yr. I feel stuck in how to solve this problem and look forward to any suggestions.
Thanks.
I work in my family agency (3rd gen) and we consist of my dad (principal) me, a brother, sister, and 2 secretaries/CSR gals. My siblings are both brokers, with my sister recently starting. Right now commissions are assigned to the agency and I talk home half of what I bring in. The agency pays for all overhead and we have a formal office as well. In the last 2 yrs or so I've taken over most of the principals jobs, like marketing campaigns, finding new products, sales ideas. I've been in the business for 10yrs and just turned 30, my dad is 65 this year and is on the backside of working new accounts, learning new products, etc. I'm starting to feel like my 50% is a little too rich for the agency, and what they provide, so there is some frustration with that (as a broker feeling like I'm giving too much to the house).
There is also the concern of succession and taking our agency to another level. We have no formal plan in place but an upcoming talk about ownership. Because of our setup, I'm next in line to take over, even though I'm not the oldest. We have a great family relationship and work well together. There really isn't any hostility between us and we have a good relationship. A concern I have here is the longer I contribute to the agency, the more "expensive" it becomes. I guess I'm wondering if anyone has some feedback about direction or overall ideas (ie increasing my % of new business commission or buying 5% of the agency each year) of how an agency switches hands while still maintaining the same structure. A buyout or me going on my own isn't something we want to do.
I know my dad wants to stay involved and he does a great job with contracts/commissions but his complatency (after 30+yrs) with growth is frustrating when I'm ready to grow and expand. We are a l/h agency with about 80% in medicare and 20% in other products (ltc, ACA, fe). Our total revenue will be about 1.2-1.5m this yr. I feel stuck in how to solve this problem and look forward to any suggestions.
Thanks.