|Entrepreneurial Paper |
|Dameron-Jones Insurance Agency |
|Della McCrory – Owner/Agent |

|Rebecca Erin McCrory MGMT 485-02 |
|12/3/2009 |

An entrepreneur is a person who has possession of an enterprise, or venture, and assumes significant accountability for the inherent risks and the outcome. Entrepreneurship has worked up its way to become one of the most interesting subjects to learn. It has appealed to dynamic youths as in the past we have witnessed the rise of many entrepreneurs from having nothing and being nothing to become the wealthiest and the most influential people in their societies, countries or even globally. Their achievements have inspired the youths of their times and the many who came after them.

The subject of this paper is an entrepreneur that I know well, my mother, Della McCrory. She is the owner and agent of Dameron-Jones Insurance Agency. Dameron-Jones is a small hometown based business that has withstood the very turbulent times in the economy and maintained its roots in the community and so it remains the oldest insurance agency in Hammond, Louisiana.

In 1945, Mr. Ed Dameron and Spencer Jones started the insurance agency in Hammond, Louisiana. Della began working at the agency in 1979 and did not become the owner until 1994 when Mr. Dameron passed away. Since she had worked for the agency for so long, Mr. Dameron left in his will that Della have the first opportunity to buy the business. So in 1994, she became the new owner of Dameron-Jones Insurance Agency.

The main reason for choosing to purchase this business was that she would be able to take time off when needed, make her own hours and not have to report to anyone other than herself. Della wanted the freedom of being her own boss. She knew that the monetary compensation would be much less than the non-monetary compensation she would receive but money was not what she was looking for. Being an entrepreneur gives a person the ability to be their own boss, but with that also comes the responsibilities of all aspects of the business. When asked about the pitfalls and challenges of owning this agency, Della said that the worries of the expenses are the greatest challenge. “No matter if I leave the office, the worry still rides on my shoulders of how to maintain this business in order to keep it afloat. You never leave the work at the office; you take it with you each and every day because it is your livelihood. No one else has to worry about the light bill, about the advertising expenses, or what each company’s retention numbers or loss-ratios are. It’s all your personal responsibility that you take as a trade off for being your own boss.”

The insurance industry has a very competitive market and each company has to find ways to distinguish itself from another. There are two types of agencies, independent and captive. An independent insurance agent is an agent that represents several insurance companies. The agent is independent from all the companies he or she sells for, and can therefore in theory evaluate different insurance policies objectively. Independent agents pay all their own expenses and keep their own records and earn their income from commissions on the policies they sell. The opposite of an independent agent is a captive agent, who works exclusively for one company, like State Farm or Allstate. A captive agent has an exclusive relationship with the company he or she represents. The company mandates that the agent only sells the products offered from that company only, for the privilege of working under their name. An independent agent has no exclusive relationship with any company he or she represents. The agent is free to choose the product he or she will sell and the company he or she will sell for. Independent agents generally have a wide variety of products and companies. This variety is good for the client and the agent. The client has a better chance to find a company that can fit exactly what they need, the client can shop for the best price, the best company rating, and the best product without having to go or call company after company. The agent can look for what is the best product for this client and not feel pressure into selling anything that is close to what the client needs just to get paid. With Dameron-Jones being an independent agent, she feels that it gives her an edge over the captive agents in the area which helps her to gain and retain business

While insurance is a price competitive arena, trust and customer service play huge roles in attracting and retaining customers. “In the insurance industry, customer service is the key element that distinguishes one agency from another. The price of the policy is important, but the way the customer is treated and respected makes the ultimate difference in where they spend their money”, Della states. When I asked her what she felt was the defining characteristic that makes her business successful, she tells me the following, “My customers feel like they are a part of a family, not just a number. At Dameron-Jones, we strive to make each and every one of our customers feel welcome, we remember their names, their children’s names, invite them in to talk and take their time to discuss with us any problems or concerns with their policies they may have and how they feel we can address them. We make sure the customer knows that they matter here and we are not just out to make a dollar but to help to protect all the things that they have worked so hard to get. The thing about insurance is that you pay for it and hope that you never have to use it. Many people feel that it is a waste of money but when they have a fire, or there is a hurricane and they lose those things that they have worked so hard to get, they understand the importance of having it. Our main goal is to make our customers happy, because without our customers, we have no way of keeping the doors open”. As with any service industry, the way customers feel they are treated has an enormous effect on the success of a business.

When asked about the effect of the economy on the insurance industry as a whole, Della said, the industry is holding strong but has definitely felt the pinch. A hostile investment environment and shrinking economy has had a significant impact on the financial and underwriting performance of the insurance industry during the first part of 2009. The sharp decline in profitability and shrinking capacity was primarily accredited to poor investment market performance, persistent soft market conditions, modest catastrophe losses, and a spillover of the housing and credit bubble collapse into the mortgage and financial guaranty segments of the insurance industry. While insurers remain cautious about the economy and financial market conditions, there is guarded optimism that both will continue to improve as we move into the second half of 2009. Fundamentally, the insurance industry remains quite strong financially.

With the opportunity to discuss the different aspects of the business, I have learned a great amount of information. This is so very important because my goal is to take over the business from my mother and become the owner and agent for Dameron-Jones Insurance Agency in the near future. Once I have graduated, my aim will be to take the agency in a direction that positions it to continuously grow and provide optimal customer service in order to remain at the top in our area.

Going into this interview, I had a general idea of the intense responsibility that an entrepreneur has, but my eyes have been opened to many more pieces of this ever changing puzzle. Not only does the owner of a business never leave her job but there is always the nagging voice there pulling at your thoughts as you try to stay ahead of the game. I have always respected any person who takes the leap in owning their own business, but now the respect has grown even more with the knowledge that I have gained. I look forward to the challenge and anticipate a roller coaster so I am prepared to hang on and enjoy the ride.