A Day in the Life: Leadership Tips from an Insurance Agent

It's probably never someone's first choice nor do I know anyone who has it listed as what they want to be when they grow up, but an Insurance Agent is more than a necessary career in this world. It's an opportunity to make a life-long impact on each person you come in contact with. This is why I want to write about leadership tips from an insurance agent. The effect of the decisions that are made within an insurance agency are lasting. Insurance is an invisible product, customers are paying for peace of mine, so when a loss occurs, customers want to ensure they are covered and are able to resume life before the loss happened. Now, imagine if an agent gave a customer the wrong amount of coverage or didn't emphasize the importance of a certain product, the effects could be devastating to that insured and their family in their time of need. All the more reason why I want to focus on leadership from the agents who protect the world.

I've had the opportunity to shadow and learn under an insurance agent for the past month. While doing so, I've been able to see and hear every conversation within the agency, work their tasks and systems, learn how they operate their business from the ground-up and day-to-day, and most importantly learn from their experiences and understand how they think and view this industry and business.

My knowledge and understanding of this industry and how to successfully run a small business has grown tremendously so I'm sharing the key five things that I observed, which define success and true leadership in this space. Let me reassure you that these five things aren't complex or a secret formula; However, these five things are rare to find and easily make any individual stand out as an exceptional leader and person.

Five Things That Define Success And Leadership In Your Agency

1. Have Passion And Commitment In Your Work
Opening any practice is no small feat to accomplish so you want to make sure you receive the best return on your investment and to achieve that return means passion and commitment to your practice. This should never change during your course as a business owner and your commitment on day one should be the same as on day 365 and years down the road. Find enjoyment in the process, because it's going to be tough.

2. Be A Person Of Your Word
There's nothing worse than being on the receiving end of an unfulfilled promise or commitment. It's disappointing, disheartening, and you easily lose trust and faith in the individual that made the promise to you. As any business owner knows, your customers make or break your business. Being a person of your word is key to success and more importantly is simply a choice. "When the going gets tough, the tough get going", but far too often, people choose to take the easier route when things get difficult. Do you want to be known as someone who honors their word?

3. The Day Isn't Complete Until Your Tasks Are
"Once a job is first begun, never leave it til it's done. Be the labor big or small, do it well or not at all." A phrase I heard from my late grandmother, Dorothy Wilson. Everyday will bring new challenges that will add to your to do lists and tasks, whether it's unplanned meetings, unexpected projects, or technological issues. However, you need to hold yourself accountable and realize that the job isn't complete until all your tasks are finished, even if it means working longer hours. This is a huge separator from a mediocre owner and an excellent owner. An excellent owner realizes what's most important, identifies those tasks, and finds a way to accomplish them despite what the day may bring.

4. Treat Everyone Right
Everyone means yourself, your practice, your employees, and your customers. It's as simple as the Golden Rule: Do unto others as you would have them do unto you. If you faithfully and truthfully follow this rule, your customers will continue to come back and your employees will be happy, which will lead to positive results for your practice and ultimately your well-being.

5. Have High Standards
"High achievers don't like mediocre people and mediocre people don't like high achievers." - Nick Saban. Hold yourself to high standards and your team and practice will follow. You are the leader and it is your responsibility, which shouldn't be taken lightly, to lead your practice in the right direction. Your actions make a difference and you have a defining impact on each person you come in contact with. How do you want to be remembered and what do you want your practice to be known for?

Being a business owner is one of the most rewarding experiences there is, you play a vital role in making an impact on so many people's lives. However, while managing your day to day operations, your time as an owner and leader needs to become more and more intentful. Make these five things part of your daily practice and watch the success grow.

Everpix and Its Last Photo

Everpix was known as one of the best solutions for managing large libraries of photos. You know, where our pictures go after we take them and then never look at them again. No, not a photobook. Think about it, we take thousands of photos each year to remember various occasions, but when was the last time you went back to the beginning of a journey just to reminiscence or find those images. It’s a very common problem and we always wait until we need a photo for a reunion or event when we realize the true hassle of finding it. Well, Everpix was one of those solutions and a very good one at that. So why do they only have one photo left now.

Everpix would allow users to store an infinite amount of photos and organize them for you for just $4.99/mo or $49/yr. If you didn’t want to pay for Everpix’s services, you could just receive an email daily with photos from the same day in prior years, which is still pretty cool. Users thought so too as Everpix quickly gained over 55,000 users and over 400,000 million photos. Sounds like a strong start, but did I mention that only 19,000 of those users were paid subscriptions. Let’s look at the numbers.

The Snapshot

Everpix had raised $2.3 million from investors and had revenue from paid subscribers of $250,000. They had total expenses of $4.9 million, in which salaries, payroll, and personnel costs equated to $3.6 million of it. That easily leaves you with a big red negative net income of  -$2.3 million and just as many questions of how did it get this bad and where did the money go.

The Photo Finish

Everpix spent far too much time on perfecting the user experience and design/layout of the site, which cost them close to $2 million alone. They also neglected some of their major competition in Apple and Google, which offer services similar to theirs for free. Everpix may have had a better product and service, but without spending the necessary time selling and advertising the service to acquire new users, especially paying users, they were losing out on necessary revenue to keep doors open. With any business or startup, if you can’t keep a steady income, grow, and expand, investors will not continue to fund you nor will you be able to keep your own doors open. A great product doesn’t solve anything if you don’t market it.

Everpix had a very intelligent and focused team, which is why the product and service was designed well, receiving a 4.5 out of 5 average rating on the iOS app. However, it should be questioned why $3.6 million was spent alone on salaries, payroll, and personnel costs. When most people think of startups, they think about a small group of individuals squeezed into one room and all receiving a small compensation package and pouring all money back into the business with hopes that they will make it one day and then never have to worry about money again. When looking at Everpix’s $1.1 million for salaries, $1.2 million for payroll, and $1.4 million in personnel costs, where exactly was the money going? Better yet, why wasn’t more put back into the startup?

Everpix did attempt to correct early mistakes like the lack of advertising and the budget expenses. They hired a marketing specialist who helped better position Everpix in the marketplace and helped create a better pitch deck to help raise money. Everpix’s staff also took major pay cuts all the way down to San Francisco’s minimum wage of $10.55/hr. Unfortunately, all these moves were far too late, Everpix was losing more money than they were generating from paying users. With no investors willing to hand over millions to Everpix to continue business, it was time for one last photo. This all goes to say that a business that doesn't generate a consistent revenue stream can very well be seen as just a hobby.

References:
http://www.theverge.com/2013/11/5/5039216/everpix-life-and-death-inside-the-worlds-best-photo-startup

How OpenTable Ensures It Has The Only Seat At The Table

One my favorite things to do is eat! That is no secret for millions of people who agree with me and enjoy the simple act of feeding our faces. My name is Jared Wilson and I am a foodie and I accept that about myself. I often think about what I’m going to eat meals and days in advance and have cravings for certain foods, which can leave my stomach growling and my mouth salivating. I get an adrenaline rush from ‘foodgasms’ and have a blog about my restaurant journeys and experiences. This makes it all the easier to understand why I want to talk about OpenTable. Anyone hungry?

Why Is There An OpenTable?

Offering reservations to about 31,000 upscale restaurants around the world, having 15 million users per month, and with revenue of over $190 million last year, OpenTable has been the best restaurant-reservation app in the marketplace for quite some time now dating back to its inception in 1998. OpenTable allows users to search for restaurants, wherever they may be, and make reservations for the date, time, and size of their party with a click of a button. No more phone calls to the restaurant to see if they’re busy. To make it even more enticing, OpenTable offers the user points for using their system. As a user makes more reservations, they accumulate more points, and these points can then add up to dollars off their future meals. It’s a pretty sweet deal for anyone who loves restaurants.

On the other side of the table, the restaurant receives an electronic reservation management system to replace the old-fashioned paper system and allows the restaurant to manage reports and keep track of guests and tables. Not to mention, the advertising they’re receiving for being on OpenTable. The catch, while this experience is free for the user, the restaurant pays OpenTable a fee for the service and advertising.

So All The Tables Are Taken?

While it’s great to be on top, the new order is staying on top. OpenTable has been the best at what it does and when you’re the best, others have to play by your rules or take their chances without you. Let’s just say that the fees restaurants pay OpenTable, they’re pretty pricey. OpenTable charges $1,295 just for their software, a monthly fee of $199, an additional $99 to be featured in OpenTable’s dining guide, $.25 per reservation booked on the restaurant’s website, $1 per reservation booked through OpenTable or one of its partners, and restaurants pay up to $10 just to give users the points we love to collect.³ When you add all these fees and charges up, some restaurants begin to question if it’s worth it. Welcome competition.

SeatMe is similar to OpenTable, but focuses more on putting the restaurant back in control versus the reservation system. SeatMe’s secret sauce is that they’re easier to use, more powerful, and have no pesky cover fees. SeatMe provides 24/7 access to the manager wherever they may be and a seamless system for users, which includes automatic wait lists; all things OpenTable doesn’t have. What gives SeatMe a good kick in their service is that they already have Yelp dining in. Yelp gives SeatMe great exposure and credibility and is a strong backing system with their 139 million visitors monthly on average. Did I mention they offer all of their services for only $99 a month.

Eveve provides very comparable capabilities and features to restaurants and users. They’re similar to OpenTable in the services they offer, but similar to SeatMe in their pricing model and no cover fees. Eveve believes their strength is in their pricing, which offers savings from 60 - 90% compared to OpenTable. They aren’t wrong to highlight this strength either. Eveve has already gained traction in the market; they average 770 users monthly and already are being used by every 3 out of 10 restaurants.

Dessert Anyone?

The tab is still out on what the future will hold for these restaurant-reservation system companies. OpenTable has a large portion of the market due to its user-base and advertising reach, but with large fees, will restaurants continue to fall in line with their prices or continue to give companies like SeatMe and Eveve greater shares in this industry. I guess it will depend on how well restaurants can fill their seats.

References:
1. http://en.wikipedia.org/wiki/OpenTable
2. http://techcrunch.com/tag/opentable/
3. http://blogs.houstonpress.com/eating/2014/05/as_fees_become_problematic_res.php
4. http://www.opentable.com/start/home
5. https://www.seatme.yelp.com/
6. http://www.eveve.com/

Hakuna Matata: Insurance is Our Worry-Free Philosophy

Hakuna Matata means “No worries for the rest of your days” to the vast majority of people from the Disney classic, ‘The Lion King’. Hakuna Matata also comes from a Swahili phrase meaning “There isn’t a problem or trouble”. It’s to have a peace of mind in life, to know that everything will be fine regardless of what happens. Some people call it a vacation, I call it insurance.

Insurance was a $1,041.5 billion industry, in just the US, in 2013¹ and continues to grow at a rapid pace as the world’s population increases. A very large industry when they market the only product that you can’t see, hear, taste, smell, or touch. Insurance companies have always had the struggle of selling piece of mind to consumers, the very essential of what Hakuna Matata is at its core. When you walk into a fast food restaurant and buy a meal, in exchange for your money, you receive a product that hits all five of your senses. With insurance, you pay, what some would say is a very steep price in exchange, for a product that you may never use. “On average, a driver will have an accident claim once every 17.9 years”² says enhanceinsurance.com. I would say most people would say their money could be better spent elsewhere and that’s just not my opinion. According to a 2012 study by the Insurance Information Institute, every one in eight drivers were uninsured with some states having up to 26% of their drivers being uninsured¹. Most states are changing their laws to decrease this number, but this is a trend amongst all types of insurance. The underlying issue here, and not just with auto insurance, is that more and more people do not understand the true value of having insurance.

The purpose of insurance is to make one whole again after life happens, not make them rich. This is the first myth we need to understand, insurance doesn’t exist to pay you more than the cost of what is being covered. So when we have a loss, we shouldn’t expect this to be our big break towards financial freedom, but rather insurance picking us up, dusting us off, and allowing us to go on our merry way.

Insurance comes in many shapes, sizes, and forms; we need to understand that every type of insurance depends on our direct needs and that our needs will change over time. This means that insurance doesn’t follow a one size fits all model. We need to fully understand our policies and coverages and actually attend policy reviews to update our policies and coverages as life events occur. Do not overlook the benefit and value of having these meetings.

Your auto premium will probably increase. This is a simple fact that we need to come to learn, accept, and expect. It doesn’t necessarily mean you filed a claim the prior year and in some cases, your premium may even decrease. We should look at insurance in a holistic way. When we are stuck in traffic and realize it’s because of an auto accident, we need to realize that insurance is paying to cover the losses in that accident. That means our premium is going to help settle the loss from that person’s accident. The same can be said when we’re the person involved in the accident and other people’s premiums are paying for it. Holistically, when the cost to settle claims is greater than the premiums being received, insurance companies raise everyone’s premiums to be able to continue to cover all the losses for the upcoming year. The best way to look at a premium increase is that we’re all in this together just like how the cost of living continues to increase, which affects all of us.

Life insurance is seen as another bill to some, but it should be seen as an investment and even a gift to all. Many Americans believe they don’t need life insurance. In fact, 41% of US adults don’t have any life insurance, that’s equivalent to 95 million Americans³. The biggest gift we can give to our family and those we leave behind when we move on is Hakuna Matata, the peace of mind that their standard of living will not change and that they will still be able to live without incurring any hardships from our departure. Life insurance allows us to do this and the death benefit our loved ones receive far outweighs the premium we pay. It’s hard not to call it a gift when we can ensure our child’s education, the mortgage being paid off, our spouse not having to pay out of pocket for our funeral, and so forth when we’re not around.

If we simply take the time to learn and uncover what our needs are, take the steps to ensure we are adequately covered and don’t just have coverage, understand our policies and coverages and revisit them as life events happens, leave the best gift we can for our loved ones in life insurance, then we will then find Hakuna Matata, ‘no worries for the rest of your days’. Insurance is our worry-free philosophy.

References:

1. http://www.iii.org/fact-statistic/industry-overview

2. http://visual.ly/auto-insurance-facts-and-interesting-statistics

3. http://www.infographicszone.com/wp-content/uploads/2013/01/life-insurance-facts-and-figures-1.jpg

Why Uncle Sam Wants Your Next Startup in DC

The White House, Smithsonian, politics and the government, all things that make one think about Washington, DC. Known as a city for politicians, power brokers, and business professionals, it’s no wonder why so many people don’t think about Washington and its startup ecosystem. With hundreds of active angel investors, a high concentration of engineers and people with advanced degrees nationally, and a metro area in the top 5 in the nation for venture capital; Washington DC should be on your radar as your next startup’s destination.

There are well over 1,000 companies raising capital within Washington, DC right now. As DC has grown, the startup space has continued to expand alongside it. With the large number and depth of different corporations that call DC home, there is no lack of verticals for startups to pursue and contribute to. Some great verticals within Washington, DC include: Compliance management, DC has one of the highest concentrations of compliance experts in the country; Hospitality and green tourism, DC is headquarters to Hilton, Marriott, and Choice Hotels; Geospatial technology, DC has over 15,000 imagery and geospatial analysts with the NGA supporting contractors; and Cyber Security, DC and the surrounding MD and VA areas are home to several military bases and cyber-security companies. There are already hundreds of startups that got the memo and realize these are all great verticals to make an impact within.

A few notable startups include: Social Tables, a platform focused on helping hotels increase their return on meeting spaces. Teranga, a mobile and cloud-based application helping hotels increase revenue while reducing operational costs. Punch Cyber Analytics Group provides advanced analytics and support to government and commercial clients. Virtru has the goal to give everyone secure email through their browser plug-ins and mobile apps. These are just a few of the innovative startups residing within DC, but there is an even bigger opportunity for startups as DC continues to grow and expand. So the next time you visit and think DC, go visit the Capitol, see the monuments and memorials, try the iconic Ben’s Chili Bowl, but also think about the possibilities for change, growth, and development surrounding DC.

References:

http://tech.co/dc-startup-community-intro-2013-11

http://www.bloomberg.com/news/videos/b/03bcf076-7e74-4e98-99ff-a7988122e840

http://www.entrepreneur.com/slideshow/225974