Financial Peaks and Valleys

- Hey everybody! Drew McLellan here from Agency Management Institute, coming to you from Orlando, Florida at the beautiful Yacht Resort on Disney property. Getting ready to teach your workshop next week, but I wanted to remind you that ups and downs in your business are normal. So we see hundreds of agencies' full financials every year and there is definitely a pattern. Now I will say the smaller you are, the longer you can go by growing over and over and over without any dip in AGI. So for some of you in the beginning of your agency, you might've doubled in size for the first couple of years or at least grown by 20% or 30% over the first five years of your agency. But at a certain point in time, you get to sort of a critical mass. And what happens then is you fall into the normal agency financial pattern, and that pattern looks like this. Your AGI is going to go up for three to four years, and then it's going to dip down a year, maybe two, then it's going to go up for another three to five years. That is perfectly normal. There is no way that you can sustain year over year growth in an ongoing way forever. So you have to know and be ready for the occasional slide down. Now understand you never slide down as far as you started, so you're always growing. It's just that every once in a while, the ramp of growth goes down a little bit before it goes back up. So if you're worried about your finances, or you're seeing that pattern and thinking that you are in trouble, or there's a problem, just know that that is a normal cadence for agency finances. just know that that is a normal cadence for agency finances. I have some ideas around why that is, and I will tell you next week in the video, okay? See you then.