Introduction
Ever wondered what it takes to build a successful insurance agency from the ground up? Today, I had the pleasure of chatting with Bill Garrity, president of Garrity Insurance, who recently sold his agency after decades of growth and development. Bill’s insights are pure gold for anyone in the industry, whether you’re just starting or looking to scale. Let’s dive into his story and unpack the lessons from his journey!
1. From College Grad to Insurance Agency Owner
Bill’s path into insurance started right out of college, working for Century Insurance. Eventually, he purchased his father’s agency in 1994. Back then, it was just one modest office with three employees. Fast forward, and Garrity Insurance transformed into a multi-office powerhouse. Bill’s journey shows that with patience, hard work, and a keen eye for opportunity, you can scale a business from humble beginnings to major success.
2. Building a Team: The Secret to Success
One thing that stood out about Garrity Insurance is the incredible team Bill built. Unlike many agencies, he relied on personal connections rather than traditional recruiting methods. Bill describes his approach as scooping up “free agents,” using his network to recruit like-minded and motivated people. By building a team that was already connected and invested, he created a strong, unified culture—a true win for any growing agency.
3. Keeping the Team Together: Culture, Camaraderie, and Connection
Retaining talent is a challenge, especially in the competitive world of insurance. Bill emphasized the importance of fostering a tight-knit culture. By keeping everyone connected through outings, quarterly meetings, and team events, Garrity Insurance built strong relationships beyond the office walls. Investing in these connections paid off, creating a team that was not only productive but also loyal.
4. Focusing on Niches: The Key to Market Dominance
In insurance, there’s no shortage of potential clients, but Bill’s strategy was all about focus. He stressed the importance of being niche-driven rather than spreading the agency’s attention across too many sectors. Whether it’s landscaping contractors, hospitality, or tree services, focusing on a niche allows an agency to become a go-to expert in that field. And when you’re recognized as the expert, clients start coming to you. It’s all about getting known and becoming the trusted name in the business.
5. The Art of Acquisition: Expanding Garrity Insurance
When it came to expanding his business, Bill didn’t shy away from acquiring other agencies. But it wasn’t just about the money—he prioritized finding agencies that aligned with his company’s culture and niche focus. By doing this, he ensured a smooth integration and long-term growth. Bill’s strategy was about building relationships, both with clients and with other agencies, to create win-win opportunities.
6. Preparing for a Sale: When Opportunity Knocks
Interestingly, selling Garrity Insurance wasn’t initially part of Bill’s plan. However, with the market booming and private equity firms offering sky-high valuations, he saw the opportunity and took it. His agency’s growth, profitability, and culture made it a prime target. Even though Bill was a reluctant seller at first, he recognized the value in capitalizing on the market’s momentum.
7. Working on the Business, Not Just In It: Scaling Smartly
For Bill, scaling Garrity Insurance was about working on the business, not getting stuck in the day-to-day servicing grind. He highlights how smaller agencies often struggle with this balance, as owners get bogged down with service demands, leaving little time for growth activities. The lesson here? Delegate effectively and focus on growth strategies—like networking and outbound marketing—if you want your agency to scale.
8. Salespeople vs. Outsourcing: Finding the Right Talent
Bill discusses the challenge of finding experienced insurance salespeople who are also eager to hunt for new business. These “unicorns” are hard to find, as many talented individuals are drawn to other industries. Bill’s solution was to use a mix of both direct hires and outsourced services, adapting to the unique demands of the market.
9. Expense Discipline: A Key to Staying Profitable
One of Bill’s top tips for agency owners looking to sell is to maintain profitability through expense discipline. It’s easy to let costs pile up—especially subscriptions and software that go unused. Staying on top of expenses not only keeps the business profitable but also makes it more attractive to buyers when it’s time to sell.
10. Embracing Private Equity: Transitioning with Relation
Selling to Relation gave Bill a unique opportunity to remain involved in Garrity Insurance while benefiting from a larger network. He explains that one of the attractive aspects of his deal was that he could continue to grow his business under the Relation umbrella while maintaining operational control. This setup allowed him to stay connected with his team and continue doing what he loves.
11. The Future: From Insurance to Hunting Dogs
When asked about his future plans, Bill joked about his next venture potentially involving working with hunting dogs—showing that no matter what, he’s got plenty of passion and energy left. Whether it’s growing a business or training dogs, Bill’s approach is always the same: commit fully and enjoy the ride.
Conclusion
Bill Garrity’s story is a testament to the power of focus, networking, and passion in building a successful business. Whether you’re looking to grow your agency or considering the possibility of selling, his insights offer valuable lessons. From building a strong team culture to strategically targeting niches and managing expenses, Bill shows us that the path to success is all about staying true to your values while seizing opportunities when they arise.
