Plan To Succeed
There are things that you will need to consider when starting an agency from scratch, from a business plan to financing and investment to education. Visit the Small Business Adminstration for help with understanding is being an entrepreneur right for you, questions to ask, steps to starting a business, data development and more.
Investment Capital
You will need startup capital to cover things such as office space, equipment and furniture, E&O insurance and marketing. And, don't forget that you have to pay yourself. Visit InsurBanc for assistance with business financing and cash management.
Insurance License and State Regulations
In all states, you need to be licensed in order to sell insurance. You will be required to take a certain number of hours of training as well as sit for a licensure exam. In most states, you will need a licenses for each type of insurance that you wish sell. Pre-licensing, licensing and continuing education are state specific. Choose and contact your local Big "I" state association for assistance understanding this critical aspect of running an insurance operation. The rules on the sale of insurance and consumer protection information can be found at National Association of Insurance Commissioners.
Access to Insurance Companies
After you are licensed, you will need to have access to insurance companies to have insurance products to sell. In order to get an appointment to sell insurance with many companies, you will need a marketing plan, some background in sales, and a solid business plan. Research your anticipated client base and know what companies will best serve them. Big "I" may be able to assist with access to personal lines markets through Eagle Agency program. Other resources:
- Prepare for the conversation through the Right Start Series: A Tool Kit to Grow Your Business and Gain Appointments.
- Understand what insurance markets to representent through A.M. Best Company.
