How much do you want to be involved in the hiring process?  Are you really interested in interviewing 32 people to get the right one, whether it is you or someone on your staff?  If you answered no, I agree with you.  Here’s what our process looks like in a nutshell:

• The ad is placed.
• Prospect calls our hot-line telephone number and listens to a 3-4 minute recorded message describing the position we are hiring for.  I personally record this message once.  For this, we use AutomaticResponse.com, but there are many options on the market today.  At the end of the recorded message, prospect is given an email address to send an email to.
• When they send this email (if they can follow directions, here’s where the autopilot testing begins), an auto responder automatically sends them a detailed email with more specifics about the job along with more directions on how they can get to the first interview.  Yes I said first.  The auto responder email is very candid about their responsibilities, the team organization, compensation, benefits, and more.
• At the end of the email is the email address where they are to send their resume.  Those directions contain a specific request.  Here is where most fall short:  I ask them to email me their resume and put two things in the SUBJECT LINE – 1) their full name 2) the word "winner".  I am continually amazed that people cannot follow these simple directions, what will they do when they actually work on your team for your clients?  Also, I am looking for certain mindset, hence "winner".  This step really weeds people out.  The best part? I have invested less than 15 minutes at this point.
• Once the resumes start coming in, time must be invested in reviewing them and beginning to set intitial interviews.
• For those we want to pursue, we conduct a 10 minute initial face-to-face interview at our office.  The initial interview is six questions.  I am looking for a few things: make sure they are punctual; I want to check their appearance to make sure they fit; I want to look them in the eye.  At the end of the interview, I always know if they are destined for more scrutiny.
• If the candidate is ready for the next step, we have them perform two different aptitude tests.  We use Kolbe and Selecting Winners.  There are many similar companies on the market, such as Omnia.  Make sure the company you use matches your industry and has a proven track record.  A very important, critical part of the process – have the person take the test AT your office.  I once hired someone and realized in the first two weeks that the person I hired did not appear to have the characteristics of the person in the aptitude test results… from that day, all tests are performed at the office.
• When the candidate matches your need via all of the above steps, it’s time for the last interview.  This interview is about one hour, involves some 30 questions on all subjects and is conducted by two qualified people, one male and one female owner or manager.  Why?  The different genders just pick up different information the other might not.  All I can tell you it helps and it works.
• Only after the second interview is an offer of employment and potential compensation made.

I know it seems like a lot of work, but the only time success comes before work is in the dictionary. 

Next time you are out in society, pay close attention to the people working at various employers.  Contemplate what you see and compare it to the kind of people representing your company on a daily basis.

I hope this helps you.  Make a difference and be unstoppable!  If you want to know more about our complete process, please shoot me an email at 411mike.org or comment to this article.  Thanks Mike! – villageChief

Share this post…

Hire slow and fire fast because if you hire the wrong person, your entire organization can quickly become infected and it will cost you truckloads of money.

When it comes to hiring, how many steps are in your hiring process?  Within these steps, how much involvement of your personal time does it take to exectue each of tese steps?  Who is involved in the process?  Let’s dig in.

Most winning entrepreneurs know that the people on their gifted team are the absolute key and the core to the success of any organization.  That’s why it’s critically important that each team member is pre-evaluated before they are allowed to work within any thriving organizational team.  Over the years and through much painful experience, we’ve created a hiring process that weeds out any prospects that do not bring forward the absolute best for our exceptional team.  It starts with a story, a quick, one-page story about the kind of person we’re looking for and it details the characteristics of that person that will fit the need of our team.  Below is an example of one of those stories, this is an ad I actually used when I had to replace my assistant:

WANTED!

The Very Best Executive Assistant

The President of Mega Insurance Agency, Mike Stromsoe is seeking a replacement for his executive assistant Susie Smith.  Susie has decided to become an entrepreneur with her husband Jim.  She will be greatly missed and difficult to replace but the show must go on.  Here are some of the characteristics these people possess:  Highly motivated, enthusiastic, very high energy, well-organized, solid administrative skills, technology oriented and computer literate with a do-it-now type attitude.  By the way, all of these are a must.  If you would like to hear a three to four minute overview of this position and what all it entails please dial our 24/7 Toll free information hotline at 1.888.xxx.xxxx ext. xxx.  Only those seriously committed to being a dedicated member of a fast-paced, team oriented, forward thinking culture need apply.

Solid Pay and Possible Benefits 

To Apply confidentially, call 1.888.xxx.xxxx ext. xxx right now.  If you qualify, this will be the best job you have ever had – our team guarantees it!

* All applications WILL remain strictly confidential

So where do you place the ad?  Currently, I immediately distribute the ad to two sources: 1) my own email list, every person.  You never know who knows who.  2)  Craigslist.  I have simply had good luck with Craigslist over the years, but you can place this ad virtually anywhere.

In the past versions of the above ad, I provided my name, address, phone, email address.  Today, I will normally only provide our toll-free hotline number and that’s it.  The amount of contact information provided by you dictates the response but reduces the quality of the candidates.  Stay tuned, I’ll explain why.

Return next Monday for Part2 – Article compliments of Mike Stromsoe, The Unstoppable Profit Producer, Creator of the Stromsoe Profit Producer System.

Here’s what other Agents say about UPP and the effect on their lives:

"You completely changed the direction of my business.  You are an inspiration with timely, real information.  You provide the tools and actually show us how to implement, execute and take action so money instantly fell to the bottom line, just like you promised.  No airy fairy, totally results driven."   – Kathleen McConnell, Roseville, CA

Share this post…

Pick any news outlet and just hit the headlines to list your culprits for likely rising premiums this year.  The crashing housing market dove-tailed with the sub-prime lending which ushered over-rated collateralized-backed securities into almost every bank’s balance sheet is a big one.  How about Hurricane Ike?  We do know that re-insurers were hit hard by this storm.  Or just plain old disappointing ROI for insurance companies.  By the end of the third quarter last year, the best data available, investment gains totaled less than 50% than in 2007 according to the New York based Insurance Information Institute (III).  The only asset class to weather this last market free-fall is cash.  Yes, even money market accounts saw record redemptions.

But these headlines don’t tell the entire story.  Even with premiums possibly climbing this year, premium revenue is just not there.  Contributing factors to this are falling gross receipts, lay-offs, and businesses just closing their doors.  So what does this mean? It means we are entering a new cycle of premium adjustments.  Insurance Information Institute states, when premiums fall below average as they’ve been for the past few years, insurer’s profits decrease precipitously or disappear altogether, thus they can’t underwrite new business.  When the supply of insurance drops, underwriting appetites narrow and premiums accelerate.

Insureds know there are numerous factors affecting their premiums.  So educate your them on all of the dynamics that are affecting their yearly premiums.  Layout the possible landscape for the coming year and let them know you’ll offer them the best package you can put together.  Premiums may rise but from this is the opportunity of a lifetime to make clients for life!

I want to thank the Dallas Business Journal for information relating to this article.  Peace.  -villageChief

Share this post…

Onward to Part 2 of our discussion on Business Continuation.  Randall Blinn is our author this week as he was for Part 1.  Randall is a professional financial consultant with Asset Strategies Group in Austin, TX.  Most insurance agencies are small to medium sized businesses and need to have an established plan for the new leadership taking the helm.  The tax, estate, and financial laws and rules can be confusing and complex.  You should seek counsel in each area.  Look at this like a chess match, you versus the governement.  Keep in mind that the government is betting that you are not going to take the proper steps to secure your estate and legacy for the next generation.  Because if you don’t, Uncle Sam gets more from you.  So please take the steps necessary to plan for specific scenarios before they happen.

Develop a Business Plan for the Future.  You should outline clear-cut short-, medium-, and long-term goals for your successor, along with an action plan for achieving them.  The business plan should include budgets and financial forecasts that can adapt to changing conditions in both the industry and the economy.

Choose a Transfer Strategy.  Depending on the type of business, its value, and your personal financial situation and goals, you’ll need to determine the best transfer strategy for your business.  There are a variety of ways to structure and fund buy-sell agreements.  For transfers to family members or charity, gifting may be a viable option.  Consult your tax and legal professionals for specific guidance.

Plan for Contingencies.  Regardless of your ultimate intentions for succession, it is wise to have an updated package of basic information on hand in case an emergency, such as death or disability, should occur before you have finalized your succession plan.  This should include the following:

• A copy of your current business plan.
• Updated job descriptions of all positions within the company, including details regarding areas of responsibility and delegation of duties.
• A list of potential successors.
• A plan to help ensure extensive hands-on training for your designated successor.
• An estate plan to help ensure the availability of cash to help fulfill federal and state estate tax obligations.

Other Consideratations

 There are a number of financial, legal, and tax issues that a thorough succession plan will need to take into account.  For instance, how will a successor secure funds to buy out a retiring, deceased, or disabled owner’s share of the business?  What are the estate planning issue?  And, how can an owner minimize gift taxes resulting from the transfer of company stock to family members?  Answers to these and other questions can be addressed n a succession plan, which is often the result of a coordinated effort by qualified legal, tax, financial, and insurance professionals.

A Parting Thought

You owe it to yourself to ensure that you business will continue to flourish after your retirement, as well as in the event of death or disability.  Proper planning can help provide long-term security for your retirement, your company’s future, and your family.

Thank you Randall for the in-depth article on this deep and complex subject.  If you are interested in learning more, you may reach Mr. Blinn at rblinn@finsvcs.com.  Or you can stop by his online office at www.randallblinn.com.  – villageChief

Share this post…

Successful business owners invest a great deal of time and effort in building their companies.  With the day-to-day demands, it is often difficult to imagine stepping down for retirement.  Yet, in order to help build financial security for retirement and ensure business continuation, it is important to plan ahead.  Business succession planning can establish retirement income for a retiring business owner, as well as smooth the transfer of operations and/or ownership to family or another entity.  In addition, a succession plan can also help provide structure for unforeseen events, such as death or disability.

Laying the Groundwork

It is never too early to begin planning for succession.  An early start can help you develop an appropriate exit strategy and allow you the time to choose the right person to eventually run your business.  It could take many years to groom a successor to manage the intricacies of your company.  With this in mind, here are some basic considerations to help lay the foundation for a successful plan:

1.  Valuate Your Business. A key aspect of planning for continuation is calculating the worth of your business.  There are a variety of techniques for business valuation.  A qualified professional can help you choose the appropriate strategies.

2.  Plan Your Exit Strategy. It is important for retiring business owners to thoroughly plot out their scheduled departures.  A sound plan can help ensure smooth operations during the time of transition, as well as facilitate the transfer of ownership.

3.  Meet with Potential Successors. If you wish to keep ownership and control of your business within your family, you will need to assess your family members’ interests and qualifications and how well they match the needs of the business.  Discuss with family members who will participate in the compnay and in what capacity.  Then, determine how working members will be compensated and what nonparticipating members will receive.

If you expect unrelated parties to carry on the business, you will need to meet with the key people involved for in-depth discussions about the company and its future.  If succession involves the sale of the business, be prepared to address such issues as what the purchase price will be, how it will be paid, and when the succession plan will be activated.

… Part 2 next Tues.!  – villageChief

Share this post…

1. Educate, Educate, Educate – Got the message here?  Start with a complete review of what the insured currently has.  Chances are the other agent missed an important detail that could save the insured money or the agent missed a risk that needs to be added to the overall insurance package.  If so, you need to be able to educate the insured on the product features and benefits and how it applies to them.  Is the risk subject to filings or inspections?  Go slow and don’t take for granted that they know insurance lingo.  Chances are they’ll appreciate you breaking down what they need and can expect from you.

2.  Go Meet Them at Their Business - If your insured is in manufacturing, then ask to take a tour.  Learn about when they started, who their clients are, and how they plan to grow in the future.  Now you may not want to set a precedent here of always meeting them at their office.  So have your next meeting at yours.  Who are their key employees?  Is family involved and if so what are their succession plans?  The more you know, the more opportunities for new business may arise.  Remember the more products they have with you the higher the chances of that isured staying with you long-term.

3.  Give Insureds Your Best – This may not mean the best price.  After all, you have to ask yourself the question, "Do you want to compete in the arena of lowest cost insurance?"  Some do and that’s fine.  However, if you’re not, then ‘your best’ is going to be in delivering the best customer service you can.  What does this mean?  This means you probe and ask discovery type questions that really uncover all the risks associated with your client’s business.  Ask open-ended questions.  Open-ended questions are those that can’t be answered with a simple ‘yes’ or ‘no’.  Rather these type of questions reveal more when asked.  For example, "How did you get into the manufacturing business?".  It shows you care about knowing your insured better and this prepares you for delivering your best to that insured. 

Simple, short, sweet, but nonetheless very valuable in locking down current clients and communicating to them you care enough to give them the best possible policy available.  Remember to stay in front of your client even when the news is not so good.  They’ll appreciate your candor and your service.  – villageChief

Share this post…

C

For the most part ,sequels fail to meet the shadowing success of their previous achievements.  Usually bad memories are all we’re left with when it comes to sequels.  However, that’s not true with the offerings of Web 2.0.  Allow me to brief you on Web 2.0 and why it has to be part of your web-presence and marketing efforts today.

What is Web 2.0?  According to Webopedia (online glossary for technical terminology) it’s the term given to describe the second generation of the world wide web that is focused on the ability for people to collaborate and share information online.  While Web 1.0 was just low-res. pics and text, this newest version is much different.  Hey, no bad sequel here, this is an upgrade.  Here’s a few examples.

1.  Blog – Like previously mentioned in the iiaVillage article on September 4th, blogging is sharing anything online with anyone.  If your agency publishes (or just sends out to clients) a newsletter, you may want to consider posting this article online.  Offer the viewer the choice to respond with comments.  Content is key.  Whether your article is informative or instructional (like teaching an insured how to read and understand their policy), keeping information fresh and engaging will ensure their return.

 2.  RSS – Real Simple Syndicate… and it really is.  I’m sure you’ve noticed orange icons from time to time on websites with RSS next to them.  RSS is an invitation to follow future posts.  So instead of frequently checking a particular website for updates, the RSS function will feed the newest article to your MyYahoo, iGoogle homepage or directly to your email automatically.  Again, if your agency offers a frequent newsletter, be sure to put it on the web and also offer the RSS feed capability.  FeedBurner is a good place to learn about and implement this feature.

3.  Videos – This used to shut down servers from coast to coast.  Then along came YouTube.  Express yourself, your agency, and your team visually with the world.  You have a viewer’s attention for about 10 seconds to set the hook.  Once their hooked, they’ll want to check out your short video (2 min. or less) posted on your website.  If you focus in a particular commercial insurance niche’, tell the world why you are the expert in this area.  A video will say so much more than a picture or texty website.

4.  Social Media – Got your homepage up and running?  Good, now add the Facebook, LinkedIn, and Twitter icons at the bottom so anyone interested in learning more about you can follow you.  This medium is here to stay.  And the early ones to adopt this technology will have a significant stake in the ground once the Millineal Generation (born 1977-1990) grows up to be a larger consumer base.  They will gravitate towards familiar communication mediums and the aforementioned are the leaders.

See, not all sequels are worse off than the original.  But technology is still moving at break-neck speed.  Now after 20 years of the internet, everything associated has changed.  But I promise the third sequel will be just as thrilling as Web 2.0.  I just hope there’s never a Good Will Hunting 2!   -villageChief

Share this post…

Stay Up-To-Date – Keep all your links and information on your site current.  Remove any former employee information off your site.  Review all of your copy to make sure it is still pertinent and useful to the browser.  Content is so key to catching your viewer’s attention for as long as possible.

Quick Load Time – Don’t post large sized or super hi-res pictures on your site.  If your site takes longer than 10 seconds to load, the viewer will "bounce" from your site.  A bounce is a reference to the effect of a viewer leaving your website.  Make it a snappy load time.  And always keep in mind you may have a potential ‘A’ client checking you out online before the appointment.

Colors - Use standard colors that are easy on the eyes and that go together.  Don’t use florescent colors.  It shouts warning and most viewers will leave.  Also, don’t use blinking anything.  It’s annoying and distracts the viewer from learning more about your agency.  Ask others to give their opinion on their experience on your website.  Feedback is key to keeping a fresh and attractive site.

Text & Pics - There is a happy balance between posting text and pics.  The internet is visual so if you can make a point with a picture then do so.  For example, show what types of coverage you offer with pics instead of text.  Also, the viewer is interested in quickly understanding your agency’s message.  So deliver quickly. 

So invite all the neighbors and friends over you want to visit your online front porch.  The internet has no doubt grown from a cute electronic poster to a fully-functional engaging medium that we quite frankly can’t live without today.  So use this tool to engage with your clients and prospects.  Success will be measured by the leads and business you end up writing.  – villageChief

Share this post…

1.  Facebook - It’s not the kiddos’ network for who’s wearing what today at school.  No, it’s for any professional business man or woman interested in networking with people they know.  If you target a commercial niche or are a general lines producer, you can let any number of people you know what you do.  It’s free, it’s not going away, it’s free-subscriber base is growing daily so make yourself known to as many as you like.  You may learn a few more things about your clients too.

2. Twitter - What in the heck is all this Twitter stuff I keep hearing about?  Well, surprisingly it’s pretty elementary.  Here’s how it works.  The simple question is this, "What are you up to?".  I know, you don’t have time to keep random folks abreast of what you are up to on a daily basis.  So let me ask you this.  If you could provide small industry updates or insurance tips from time to time and attract followers, would it be worth it?  Yes, is the correct answer.   You can follow others as well as create a following of your own over time.   And furthermore, you can have your twitter posts feed directly into Facebook.  Think world wide web here where everything is connected to one another.

3. LinkedIn - It all started here.  This is one of the first sites to link professionals.  Professionals alike link themselves to one another through past jobs, positions, and current occupations.  Looking to reach out to accountants?  Check out who’s in your LinkedIn network.  You may be surprised to know there’s a couple in our network.  You can also create a group where you have members follow your discussions or posts.  By the way, the cost is free here too. 

These online networking applications are here to stay and will only continue to grow.  How much do they integrate themselves into our everyday business practices and activities remains yet to be seen.  But getting in early and contributing builds your credibility and just may land new business.  – villageChief

Share this post…

Here’s four points to help make the most of this opportunity.

1.  Don’t sit down.  Sitting down during the trade show / expo, while all your visitors are standing, sends the body language message of  "I’m here but really don’t want to be."  So stand up tall the entire time and take special consideration of your footwear selection.  Never take your shoes off and never wear new shoes!

2.  Offer to shake your visitor’s hand and introduce yourself.  You are the first person they’ll associate with your company after all.  It’s your first impression to make on some of these visitors so make it count.  Immediately engage your visitors by greeting them with a smile.  If you’re giving away freebies, offer them one.  If you’re running a "guess how many jelly beans" contest, let them know you want them to participate. 

 3.  Learn the 10 second rule.  If you have a visitor in your booth, you generally have 10 seconds to earn their attention for a more lengthy chat.   And if you do, you can ask your open-ended questions so you can build more of a profile of this person and their company.  Remember you are at the show to learn about others and to qualify who is an ideal prospect for your company and who is not.  Besides, these shows can be pricey for a 10×10 booth, so make the most out of your allotted time.

4. Post show follow-up is huge.  This is how you pay for your time and expenses for the expo / trade show.  Here’s a couple of tips on making this part easy.  Before the event starts make sure you’ve written your thank you notes.  Leave the attendee’s name blank (you’ll gather their b-card later).  When you do trade b-cards at the show or they put theirs in the drawing, be sure to write a quick note of something you learned about that person on the back.  You’ll want to reference it later (they’ll be impressed too).  Also, you may want to keep your schedule flexible for the following week after the show.  A hot-lead may want an appointment.  So be ready!

Bonus, here’s a couple of sites I think you’ll find helpful in planning for your next show.  www.tradeshowmarketing.com, www.trade-show-advisor.com, and an article by Susan Friedmann I found helpful on About.com called 10 Ways to Master the Trade Show Giveaway Game.

I know these will help you improve your results at the show.  If you can think of other tips that help you and your company out, please share by noting them in the comments field.  We’d love to hear your voice in the village.  And if you haven’t joined iiaVillage as a villager, it’s free, please go to the homepage and click on "Become a Villager" on the upper-right side.  Peace   -villageChief

Share this post…