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The number of conversations I have about highly dysfunctional organizations would probably surprise you. These conversations don’t always revolve around insurance or employee benefits agencies, though many do. I love to talk about running businesses and frequently find myself in these conversations, asking questions and probing to learn more about their operations.
I was talking with an industry friend who asked why so many agencies have revenue under a million, and my response was, “Chaos will not get you to a million dollars.”
Most businesses operate in chaos.
The two most dysfunctional areas that stand out in these conversations are sales and processes.
Salespeople represent your brand
Often, these conversations start around sales teams or their lack of a solid sales strategy. Business owners love to think of salespeople as dispensable and interchangeable pieces. They know they need a sales team but don’t want to put in the time to train them, coach them, or teach them the company's brand and culture.
I’m baffled by the number of owners who hire salespeople as 1099s and then say, “They’re independent; we can’t tell them what to do.” They explain how they have no control over the salespeople, so they can do things however they want.
I can’t understand why you would want anyone on your team who isn’t on brand for your company.
When you treat salespeople as a separate entity, abdicate your brand to someone outside the organization, and don’t provide training, you create chaos around your brand.
- You have someone representing you who is not really part of your team—they’re essentially a lone ranger, with your company acting as the back office.
- Without teaching them your processes and expectations, they will be at odds with your team, and clients and team members will be unhappy. Especially if you require the service team to bend and flex to the way each salesperson works.
This is a TERRIBLE way to grow a business, no matter how much new revenue you think it might bring in.
Processes allow you to scale
One of my favorite topics is the importance of processes in growing and scaling. It is the rare business I talk with that has clear and consistent processes. Most show up each day and see what it holds, operating with a general idea of how things are done, but each person is left on their own to handle things their own way. This is chaos.
To grow revenue and value, you need clear and consistent processes that everyone on your team knows and will follow day in and day out. These processes should not be suggestions or optional. And they should be documented for each area of the business.
Marketing
Properly structured marketing messages will attract your target employers. Clearly explain your company messages on your website, social profiles, and materials.
If buyers can’t easily learn about you, or your messages are unclear or sloppy, they will move on. If your salespeople are required to spend time filling in gaps or correcting inaccurate information, they’re wasting time and working with unnecessary friction. Chaos will not get you to a million dollars.
Sales
Salespeople thrive with a structured, repeatable approach to winning clients. Not all clients are a good fit, so you need a process that attracts and converts buyers who benefit the most from what you do and weeds out those who are not a good fit.
It is unfair to clients to bring them into an environment where they will not receive the best attention from your team. Chaos will not get you to a million dollars.
Service
Service teams perform best with defined, logical processes for consistently onboarding, servicing, and renewing clients.
Your account managers should not be burdened with clients who are not a good fit for what your agency does and have to adjust how they work to accommodate mismatched clients. Chaos will not get you to a million dollars.
Leadership
Teams collaborate, grow, and prosper when they have a collective knowledge of where the company is going and how it’s progressing. Receiving regular communication from company leaders about the state of the company empowers everyone to take pride in ownership, even if it’s of their own small part in the efforts.
It’s not fair for your team to work in ignorance about the company's direction, intent, and progress. Chaos will not get you to a million dollars.
Increase your company’s value
Consistent, intentional processes aren’t a luxury. If you want to grow your agency and reach the million-dollar mark or five or ten, step away from chaotic, makeshift operations and focus on building a structured approach across every area of your business. A company that runs on clear, aligned processes attracts the right clients and empowers team members to help you build your company and grow its revenue.
We’ve built the answer
We’ve built the program to help you do just this. Join Goose to learn how to grow and scale your employee benefits agency, train your brokers to use an industry-specific sales process, and learn alongside a peer community that is on the same mission.
Content originally published on Q4intelligence
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