Track These 5 Numbers to Grow Your Public Adjusting Firm
What’s up, advocates!
In this week’s lesson, you can learn how to track your business numbers and grow your public adjusting firm.
Last week you read about hiring people and surrounding yourself with game changers, but now let us talk about the information you should track.
Here are five numbers you should track every week:
👉 Claims signed
👉 Claims closed
👉 Settlement Amounts
👉 Estimate Amounts
👉 Total revenue
Let us jump into each of these and teach you another crucial aspect of growing your business into a juggernaut.
Track Weekly Signed Claims
Signed claims are your first indication of how well your business is doing. You need more claims if you want to increase total revenue.
And you might need a larger team if you sign more claims than you can manage.
Plus, the number of signed claims also speaks about the effectiveness of your networking efforts. The more you sign, the more you can say your business is “out there.”
Next, You Should Track Claims Closed
You can sign all the claims you want, but your business will not move forward if you are not closing them.
Additionally, signed claims are not an indicator of revenue. You can use them to project and set objectives for total revenue, but you cannot know how much you will receive until the insurance company accepts (or denies) the claim.
There is also an excellent indicator hidden between the signed and closed claims numbers.
You are doing something wrong if you sign many claims but close only about 20% to 30%.
Your first goal should be closing a claim as soon as possible because that is your revenue source!
You might consider getting extra training, like our video courses or the public adjusting handbook, if you, or your public adjusters, notice you are not adequate at closing claims.
You probably already know closing claims is not simple. Many public adjusting firms go down because they are unable to close claims fast enough or do not have enough funding to get through the dry period.
You should always do your best to close the claims and train your guys to do the same. A good number is closing about 50% to 70% of signed projects. We stick by those percentages at Elite Resolutions.
Tracking how many claims your team closes is an excellent indicator of your company’s success!
Track Settlement Amounts If You Want to Grow Your Public Adjusting Business
You should have revenue objectives if you are serious about growing your public adjusting firm. But you will not get far if you are not tracking settlement amounts.
Settlement amounts are how much your company actually earns. For example, let us say you want to reach one million dollars in revenue next year, and your average settlement amounts are $50 000.
You can multiply your settlement averages with the percentage you charge, let us say 15%, and you will know exactly how many claims you should close to get to one million dollars.
In this example, you would need 134 (actually 133.3) closed claims in one year to hit your million. Now you see how everything starts to fall together.
You need 33.5 claims each quarter if you know you need 134 in one year. And if you are keeping track of weekly claims signed and claims closed, you can easily check where you are at the end of each quarter.
Now you see how tracking numbers gives you an idea of how effective your efforts are and how realistic your business objectives are.
To set realistic business goals, go back to your last year’s documentation and see how many claims you have settled and for how much. Start from there and see how you can improve to reach your desired revenue.
Do Not Forget to Track Your Estimate Amounts
The number one mistake most public adjusters make is working in a chaotic environment. You will have difficulties growing your business without a systematic approach to every business aspect.
And tracking estimate amounts is one of those systems.
Firstly, you should know what percentage of your estimate you are settling for.
If you know that, you can plan the money you will receive when and if the claim is closed.
Sometimes claims take a while to close, so you should have an indicator of how much you will receive in one, two, three, etc. months.
Secondly, tracking estimate amounts also tells you about your estimating skills. You cannot say you are good at estimating if most of your claims are settled at 50% or 60% of the estimate.
But if you know from experience that your settled amounts come to 80% or 90% of the estimate, you also know that you can have fewer claims worth more and still hit your revenue goals.
In the End, Track Total Revenue and Grow Your Public Adjusting Business!
Finally, keep track of your total revenue.
Tracking your revenue each month and quarter helps you reach your yearly goals and keeps you on track toward growth.
Also, probably the best advice I can give you concerning revenue is to share your revenue totals with your team.
If you are not afraid of sharing your revenue totals and goals, everybody in your team will know how healthy the company is and feel a part of the race towards the target.
Let your game changers know about your current revenue situation and they will be more likely to brainstorm and come up with excellent ideas about the next best steps and solutions.
It’s time to take full control of your claims. Of your business. Of your life.
A community can help you get there faster. It can offer support during these tough times. Inspiration. Guidance.
Together, we can get you to where you want to be.
What are you waiting for?