Running an independent manufacturers’ representative business is a day-by-day, minute‑by‑minute business. That intensity means that agency leadership is constantly in the business. When can a rep owner/manager find the time to work on the business?

In my experience working with agencies in many different industries the only way for leadership to plan and re-plan the business is to find a time to focus on the business.

How can you find time to step outside the business and think? Here is a suggestion — make a list.

To succeed in the agency business you need to work on your:

• Line card.
• Team’s selling.
• Marketing position.
• Inside service and support.
• Commission income-collections-cash-flow problems.

Your Line Card

Successfully leading an agency requires constant attention to the line card. First, review the overall package of lines and how you present your lines to customers and principals.

With customers there has to be a rationale for the lines you have. How do your lines work together to provide advantages to the customer? How do your lines provide a synergistic whole that makes your firm make sense to your customers? How do your salespeople present your line package so that customers understand it and appreciate the value this agency is bringing to them?

With your principals, you need to be able to explain your line card. Why do you have certain lines? Which lines are really important to your firm? How do you sell from one line to another? This last point is one of the most critical elements in being an agent. Your salespeople have to understand how you position each line and how the lines work together. Explaining the synergistic effect of your lines is vital.

An agency is in constant danger that one or more principals will conclude that the firm is not doing the job for their company. You are not paranoid — you just know they are out to get you!

One of the most important things an agency leader can do is prevent problems with the manufacturers you represent. This is not a casual exercise. This point alone is why you need to find time to work on the business. Staying ahead of manufacturer management personnel is vital. This can’t be done if you don’t take the time to think about your line card and the positioning of your lines.

Finally, where does the bulk of your income come from? Are you representing lines that produce insignificant income for your business? Do you have lines with little or no potential to be significant income producers? What are you going to do about it? That is truly working on the business.

Your Team’s Selling

You are in the selling business. First and foremost selling is job one! As the leader of an organization you must be constantly assessing the sales job your people are doing. This assessment cannot be on the surface. You must dig down into the individual sales efforts of each salesperson with each line and each customer. Where is each salesperson succeeding? Where is each salesperson failing to do the job for one or more of the principals? Is each salesperson earning their share of the commission income from each line?

This type of analysis takes time and a concentrated effort. If you, the leader, are buried in the business, buried in your accounts and your problems, you cannot do the job of the sales manager and your firm will not be providing the high-quality service that your principals require. You cannot do the job that protects today’s and tomorrow’s commission income.

There is nothing more important than knowing what is happening in the field and having a game plan for each salesperson with each line and each customer. This effort is truly working on the business.

Your Marketing Position

How is your rep firm positioned in the marketplace? What do your principals think of your firm as it compares to the other firms they partner with? Do you have strong support with the influential people at each of your significant principals?

What do customers have to say about your firm? If a prospective principal calls a good customer to find out about agents in the territory, will your firm be mentioned? How will the customer talk about your firm?

What are you going to do to make sure that your market position is at the top of the list of agents in your territory? In the country?

How often are you considered for significant new lines? When is the last time that you had an opportunity to add a major line to your line card? Did you get the line? If so, why? If not, why not? Do you have significant prospects in your new-opportunities pipeline right now? If not, what are you going to do about creating opportunities? What sort of new opportunities campaign are you conducting? Do you have any major threats to your line card at this time? If so, what can you do about it? What are your biggest weaknesses in maintaining a positive productive marketing position?

Your Inside Service and Support

Inside service and support is critical to your business. How many people do you have handling service? Do you need additional people? How good are these people? What do your principals think of your people when they deal with them? Do you really know?

If you have any doubts about any of your people, what are you going to do about it? How well trained are your people? Do your principals like to talk to and work with your personnel?

Your Commission Income-Collections-Cash-Flow Problems

Income is the key to the agency business. Do you have problems with showing a solid profit? Do you have one or more lines that are late paying commissions? Do you have significant accounts receivable problems? Do you have cash flow problems? Remember happiness is positive cash flow!

It is very difficult to enjoy your work if you are constantly scrambling to meet payroll, pay bills and have enough cash reserves to handle slow payments of commissions.

Summary

The bottom line — five key points to think about to help you work on your business. Good luck and good selling.

MANA welcomes your comments on this article. Write to us at [email protected].