The Great Recession hit small business hard but it’s starting to bounce back. Well, at least bounce back in some form or another. The National Federation of Independent Businesses said optimism of small business people hit 98.1 in August. It’s the highest positivity rating since February of 2007.
Former Aon Re head and now Insureon CEO Ted Devine said the reason for the positivity hike is access to alternative capital, rapidly dropping fuel costs and tax incentives. Devine reaching them — however — is tricky and will require some new strategy.
This is especially true of single-person businesses and entrepreneurs. “A lot of the single-person businesses don’t think of themselves as businesses at all. They might be moonlighting, freelancing on the side, picking up some work from old colleagues to supplement their income. Insurance isn’t on their radar, but anyone serving clients can be sued or have their property ruined in a storm. So the need is there but the awareness is not,” he said.
And this is where the agent comes into play. Devine suggests you begin by asking your current business clients if they do any work on the side or if they know of anyone doing work on the side.
“You may not have any clients right now who own business, but there’s a good chance one of your clients knows someone who has a side business or does some freelancing or offers handyman work around the neighborhood. And once you get the word out, both about small businesses’ need for insurance and about yourself as someone who can write those policies, things have a way of building,” Devine said.
In other words, Devine says the growing economy is encouraging people to stretch.
“The economy is recovering and hiring is picking up, but wages still aren’t growing and a lot of hiring is still in lower-paying jobs. So people are going to continue looking to other opportunities where they can be independent and pursue their dreams,” he said.
And small business — and entrepreneurs like these — is an insurance agency gold mine if the agency and agent-and-or-agents pay attention.
Source link: Insurance Business America