WHAT JOB skills should an agency owner have? For some agencies, this is a moot point. The owner has grown the agency from scratch and has proven himself or herself time and time again. For many agencies, though, including those that are growing significantly or that are taking on additional owners, agency-owner job skills become an important issue.

An agency owner-producer who generates $1.5 million or more in commissions obviously has all the skills required to get the agency to $2 million. In all likelihood, those skills primarily are excellent sales skills. However, many great salespeople have limited management skills, and going from $2 million to $3 million probably will require hiring and successfully managing producers. So the agency owner, if he or she desires to grow, may need to develop additional skills or hire someone who has them (possibly the better choice).

A far more serious problem arises when an agency's owner is not qualified to be an owner. To own an agency, or even part of it, an owner absolutely must contribute significantly to its success. Agencies are generally too small to be able to carry dead weight at the ownership level. So what is required of an agency owner? Here are some important considerations.