There are many captive insurance agents that are feeling trapped in their jobs. They have reached an impasse in their careers; they know they want more and can do more, but the limitations of their captive position aren’t allowing them to flourish. At Affordable American Insurance, we want to help captive agents become independent agents by giving them the tools to start their own agency and be a business owner.
Requirements for starting an agency
Just because you have a lifetime of experience in the insurance industry doesn’t mean that you are ready to be the boss and run your own agency. Before you quit your job as a captive, there are a few questions you need to ask yourself:
WHAT IS YOUR BUSINESS PLAN – Starting an agency requires more than just a desire to be your own boss. You need to have a plan for how your agency is going to stand out among the rest. How are you going to be different from other agencies in your area, how will you reach your target audience, and, most importantly, how is your agency going to be profitable?
WHAT IS YOUR STARTING CAPITAL – You have to spend money to make money. Make sure you have the financial resources to start an independent agency. You’ll need seed money to rent and furnish your office space, including all IT infrastructure. A new agency will need professional liability insurance, along with money for marketing, advertising, and branding.
ARE YOU ORGANIZED AND DETAIL-ORIENTED – You’ll need to have an overview of everything that is going on in your agency. In the beginning, you’ll be wearing many hats, including the boss hat, sales hat, policy writing hat, bookkeeping and accounting hat, as well as a bunch of miscellaneous hats so that you can stay on top of your progress and reach the goals you set for yourself in your business plan. Until you can hire employees to make separate departments for each area of insurance, you need to be prepared to take on many roles.
DO YOU HAVE THE SUPPORT OF YOUR FAMILY – As you can see by the above item, you’re going to be busy. And with any entrepreneur, whether it’s starting an independent insurance agency or something entirely different, this new venture is going to be your priority for a while. For those of you with families, it’s so important that everyone is on board and accepts the time commitment you are going to have to make to succeed, even if it means missing a few family dinners or bedtime stories. If your agency is a success, your whole family will reap the rewards, and you can soon find the perfect work-life balance.
Joining a network of independent insurance agents in Colorado, Arizona, and Utah
At AAI, we’ve helped many agents make the transition from captive to independent. We give you a turnkey business model, including the tools, technology, and training to help you transition smoothly from captive employee to independent boss. By joining our network, you’ll get instant access to multiple A-Rated carriers so you can start selling immediately.