You Own Your Business – It Is Not Just a Job

New agents tend to look at their new insurance business as a job. That is a big mistake. Since you own your business, you need to work to make it viable.

It is an investment in your future and a labor of love. You would not be selling insurance if you did not see it as being a calling you could dedicate yourself to wholeheartedly by helping people get the right kind of insurance coverage.

It makes sense to sit down before you get started and figure out how much money you want to earn. It’s part of your roadmap to success. As part of that calculation, work with figures that cover how much you intend to spend for each application you write. Do you have limits? Do you have preferences for the kinds of applications you write? Do you want to work in a particular niche? These questions form the backbone of your strategy for success in building your insurance business.

Make sure to separate your personal expenses out from your business expenses. Getting those two things intermingled is a recipe for disaster and the IRS frowns upon it. How do you keep your expenses separate? Easy. Have a dedicated credit card for the business and any business expense goes on it, not your personal credit card. It’s not that difficult to get used to distinguishing what is and what is not a legitimate business expense. When in doubt, ask colleagues what they consider to be business expenses. You learn as you grow.

Along with a business only credit card, make sure to also have a business only bank account. That is even more important when it comes to keeping track of your sales and expenses. It’s your monthly snapshot of the health of your insurance agency and its growth and shows if you are on track.

The third element you need is either an online bookkeeping program, like Inuit or Quick Books or do it the old fashion way. Whatever works. You just need a way to keep track of your income and expenses. If you don’t like the idea of doing your books online, talk to a brick and mortar accountant or bookkeeper. Just be sure to cross your T’s and dot your I’s when it comes to tracking your success.

Make sure you do the paperwork to make your agency legitimate

As strange as it may sound, make sure your business is legitimate on paper. It’s part of being and doing business when you are starting out with your insurance agency. That means you take the time to create a business entity and get licensed in your state.

Your business entity may be any one of the following: corporation, sole proprietorship, LLC or partnership. Take the time to get an Employer Identification Number from the IRS and make sure to set up a separate bank account.

Anything financial relating to your company must be run through your business bank account. Having the trappings of what you need to run a business in place helps you think like you are running a business and not just doing something you like as a hobby. Formalizing it with the paperwork makes you a real entity and you’re ready to get out there and sell insurance.

Lay the groundwork for success before you leap off a tall building and dive right in. If you have the foundation in place, success follows.

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