The American economy is dominated by small businesses. According to the Small Business Administration (SBA), there are nearly 30 million small businesses employing over 80% of the country. That’s a huge market for any agency looking to write more commercial insurance. Producers can do well specializing in small businesses. The following are tips to keep in mind when approaching and working with small businesses:
- Provide and present a solid value. It is crucial to offer more than just a policy. Make sure that your staff can handle supporting these small accounts, and that your agency has a customer relations process in place.
- Be a true consultant. Ask the right questions and listen to the answers. Try to formulate a plan that actually gives the small business true risk coverage, plus peace of mind and perceived value.
- Make sure you are speaking with the decision maker. Many times you can convince the prospect but not make the sale if you aren’t talking to the right person.
- Be very clear in your presentation. Many small business owners know their craft well, but they may know little about insurance. Be sure to include the fundamentals in your presentations. You might be surprised at the basic terms and concepts that business owners are not familiar with.
- Communicate after the sales presentation. Small business owners are very busy. They often wear many hats in the day-to-day management of their businesses. If you’ve yet to close the sale, or even hear back, the business owner may be simply overwhelmed. Don’t be afraid to follow up weekly or even months after the first meeting. Using a CRM software program can help to automate this process.
- Consider specializations within the small business market. Offering a unique product or expertise to a particular type of small business can make you very attractive. Sub-markets could include self-storage, home services, beauty, wellness, automotive, and others.