Planning is more than a business task—it should be an integrated element of your culture. Below, we will discuss the importance of planning, explaining how you must plan for every eventuality—even those that aren’t all that pleasant to consider. According to Entrepreneur, around 75% of businesses don’t have a succession plan, and that means they’re not actively thinking about the future – all versions of it.
With a robust and detailed business plan, you can push your agency into the future, ready to capitalize on opportunities when they present or be prepared for trouble when it comes, and ensure the financial security of your family and staff.
Regular Business Planning Activities
Planning is an ongoing process as you build a business model, consider any changes you should make, hiring decisions, investments, expansions, partnerships, etc. You’re consistently evaluating the performance of your business and how that matches up with the goals you’ve set. However, there are other items you must consider if you wish to create a robust and effective plan.
Delegating Business Tasks
At one point or another, you must delegate business tasks to your team. This could be junior partners in your agency, apprentices, office staff, etc. In short, you cannot be the only person who understands how to manage your business and get the job done.
In fact, this idea must go far beyond the idea of “I want to be able to go on vacation and relax.” You want your legacy—the business you’ve built over many years—to go on for many more years after you retire or pass on. Allowing everyone around you to understand how the business operates protects the future of the business should something catastrophic occur.
Why Does Perpetuation Planning Matter?
Perpetuation planning matters because it prepares the business for the future with you in it and beyond. For example, you must plan for all the following circumstances:
- You might pass away unexpectedly, and you need a succession plan in place that hands the business off to the appropriate parties.
- Your succession plan should include junior partners who may need assistance after you’re gone—but before taking over fully.
- Succession plans must include parties beyond those in the office. For example, you may need to include your spouse and children.
- What if your spouse and children do not plan to carry on the business? How can they sell the business in a manner that benefits them and protects their financial future.
- Can you sell a portion of your business now, allowing you to semi-retire or pull back from the business?
- Would selling a stake in your business help you continue to recover after a major interruption or loss?
What Does the Future Hold for Your Business?
The future of your business is contingent on your planning and business modelling. At times, you may find that the business cannot grow without improved profit sharing from the carriers with which you’ve partnered. You can turn to Secured Advantage to increase your profit-sharing revenue, to network with others who may want to partner with you, or even to find partners who may wish to help in your perpetuation, now and in the future.
Contact Secured Advantage for More Information on Business Planning
Contact Secured Advantage today for help with the perpetual art of planning, be it succession, selling your share in the business, retiring, or moving on after the loss of a loved one. We’re happy to help you organize your agency for the future so that you can rest comfortably in the present.