A changing industry offers the greatest opportunity business people ever have for becoming successful. Chris Burand urges you to welcome these changes as opportunities to jump ahead of the competition.
Change offers great opportunities because most people hesitate to change and get left behind. Those who recognize change look forward to the future, accept it, and take advantage of it. They quickly advance so far beyond the competition that it could take years to catch up. Sometimes, the competition never does.
The classic example is the Japanese production of small, well-built automobiles in the mid-1970s. By the time the American auto industry realized that the market had changed and consumers valued fuel-efficient and high-quality vehicles Chrysler was almost bankrupt, Ford wasn’t far behind, and GM is still losing market share to this day.
An example closer to home is niche marketing. Agencies that welcome change recognized years ago that target marketing was far more lucrative than general insurance. Today, agencies that have target-marketing programs are far more profitable than generalist agencies. Additionally, they now have the experience, ability, people, and contracts to work efficiently and to launch new programs. Those agencies that didn’t, and still don’t, accept change will find it very difficult to catch up. There are fewer target markets available now, more competition, and lack of experience makes it tough to compete.
A common characteristic of agencies that aren’t growing is that they resist change. Many years ago as a company marketing representative, I visited a number of agencies in
Minnesota. Although I was new to the industry, I distinctly remember two agencies because of the striking contrast in their outlook. Both were located in small, rural towns. However, they approached their situations very differently. One agency had written almost everything in its area; the owner was making enough money to be happy, and he wasn’t greedy, so he concentrated on making no more, and no less, money. The other agency had also written almost everything in its area; the owner was making plenty to be happy, and although he wasn’t greedy, he saw that the industry was changing. He knew that he had to grow just to keep his companies’ contracts.
These two agencies — with similar situations, but differing views about the future — had quite different outcomes. The first agency is slowly losing all of its contracts. Their loss ratios remain wonderfully low, but they don’t have the volume required by the companies. This agency rejected change, and stagnated. The second agency is thriving, although its loss ratios are higher. They’re writing business all across the state and have companies knocking down their doors for appointments. They welcomed change, and succeeded.
Our industry is, as always, in the midst of a myriad of changes such as automation, 24-hour coverage, self-insurance pools, Web-based services, fees, banking relationships, and other enhanced, higher quality services. Change is organic and absolutely inevitable. Welcome these changes as opportunities to jump ahead of the competition. Identify an opportunity that allows you to create an obvious competitive advantage. Most agencies won’t embrace these changes or they’ll hesitate for years, which means that your agency has an opportunity to leave your competition behind.
Change — what an opportunity!