Starting an insurance agency and then growing it to the point at which you can reap the benefits of your hard work in your retirement years is a journey.

Your success as a principal depends on your ability to build value in your agency from day one. Agency owners especially need to review and understand banking services and the technology available to smoothly navigate the stages of their journey.

Ask yourself: What stage is my agency in, and how will I get to the next stage?

The beginning

Fledgling independent agencies are faced with big challenges while working toward profitability and improved cash flow. During this beginning stage, time is often consumed by inefficiencies and time-wasting activities. Good cash management solutions can save valuable time.

• Remote Deposit Capture (RDC) can reduce transportation time and unrealized expenses, allowing you to concentrate on more efficient activities that generate revenue and reduce costs. The technology lets you scan and deposit checks electronically, so you can do your banking without ever leaving your office. Agencies can use RDC to consolidate funds from multiple remote locations into one financial institution. RDC also helps with accelerated check-clearing and improved funds availability, which improves cash flow and working capital.

• Online banking is another great solution. Many banks have revolutionized brick-and-mortar banking by making it greener, faster and more convenient. Online banking makes it easier for the independent agent to pay bills electronically and set up recurring payments with improved efficiency.

Growth stage

At this point many agency owners are faced with managing increasing levels of revenue, attending to customers, dealing with competition and hiring a workforce. You may be expanding into new markets and experiencing growth in cash flow to cover ongoing expenses.