Starting an Independent Agency as a Sole Proprietorship
When you transition from a captive agent to an independent agent, the simplest way is to start an independent insurance agency as a sole proprietorship. The decision to go independent is often because you have an idea of how you can run an agency more efficiently and build better client relationships than working as a captive agent. However, starting your own agency and doing it all by yourself comes with both risks and rewards.
Being a sole proprietor
The more you can keep your business simple in the beginning, the better. Starting a business means that you have to be strategic about every move you make. Being a sole proprietor is the simplest and most common business structure.
Risks of a sole proprietorship
Taking that leap of faith in your ability to run an agency as a sole proprietor means that you are solely responsible for every aspect of the business. If you don’t build a client base, it’s your fault. If you don’t meet deadlines, it’s your fault. If you don’t have enough cash flow, it’s your fault. If you don’t meet your profit goal, it’s your fault. Since there is no separation between you and the business, if you run into financial trouble, you can be held personally liable for any debt or obligation that you haven’t met.
Rewards of a sole proprietorship
Of course, having complete control of the agency is a big advantage. You won’t have to answer to anyone else. You are in charge of the business model, you set the pace, and you set the goals. You can easily adapt to changes since you make all the decisions. If your independent agency succeeds, you can take all the credit and reap all the rewards.
Minimize the risks of starting an independent agency
At Affordable American Insurance (AAI), we understand the risks of starting an independent insurance agency. We provide a turnkey business model to our members, giving them the tools, technology, and training to run a business and succeed as an independent insurance agent.
When you join AAI, you will minimize the risks and maximize the rewards. With AAI, you are independent, but not alone.