Starting an Agency or Business Despite Personal Debt
It is a lucky few who can get through life without any debt. For people straight out of college, student loans tend to follow, and as we go through life, mortgages, car loans, medical bills, are added to our debt. Debt is hard to avoid. Don’t let a little debt stand in your way of pursuing your dreams to becoming an independent insurance agent.
Take realistic risks
Starting an agency takes capital, and having debt can sometimes hinder your chances of acquiring the loans necessary to take that first step. However, the rewards of running a successful independent agency will soon get you back in the black. Starting a business is risky, no matter what industry you are in. If you aren’t willing to take a few risks and bet on yourself despite financial insecurity, then being independent may not be right for you.
Of course, you need to be realistic. That’s why talking to friends and family about your situation and seeing if you can borrow money from the people who love you (debt and all) is a good measure of whether you should be starting a business. If your friends and family can’t help financially, they should at least be backing you emotionally. If you don’t have the support of your family when you start a business, you’re in trouble, especially if it means taking out a second mortgage or gambling with your savings.
Crowdfunding for capital
The second step to acquiring capital is to start a crowdfunding campaign. Once your family is on board, it’s time to put out feelers to see if your potential customers also think it’s a good idea for you to start an agency. This is your chance to sell your vision. Do your research, write a moving mission statement and a business plan, and ask your peers to help you out. A successful crowdfunding campaign, industry research, and a good business plan will impress potential investors with deeper pockets once it’s time to ask for more money.
Even if you have personal debt and you need investors to front your salary as well as capital for your business, investors will be much more amenable if they can see that you have done your market research and can engage the crowd. Investors want to see the potential for making money, so you need to be on top of your game, and a great salesperson, to sell your business despite personal debt.
Join a network
Starting your agency with AAI, you have instant access to business development courses and seminars, plus a large network of independent agents in Colorado, Utah, and Arizona who can guide you in your quest to independent success. We provide our agents and entrepreneurs with a turn-key business model, setting you up for instant success. With us, you have instant access to carrier representation so you can hit the ground running. Give your agency the best chance at success, and instantly increase your revenue.
With AAI, you are independent, but not alone!