We all know people that thought they could just jump into selling insurance and make a good profit in a few months. However, managing your own insurance agency is not as easy as we think. Here is an overview on how to establish your own agency.
First obtain your license. The type of license you need depends on your state and where you want to run your business. Whether you are starting from zero or you will buy a book of business, raise enough capital. This money is necessary for getting office space, software, insurance, etc.
Next, create a business plan. Make sure that have the answers to the following questions: What risks do you anticipate facing? How will you resolve such problems? What is your budget, cash flow forecast and production prediction? Who are your customers? What are your products/services?
Get insurance and meet your state’s legal obligations. Register your business with the state and get your taxpayer identification number from the IRS. Because errors are common, you should think about getting E&O or professional liability insurance.
Obtain access to insurance markets. This can be done either through joining an aggregator or an agency network. This will allow you to build trust and a history within the industry.