Heading Off On My Own

Jailbreak

New Member
1
Well, the time has come where I've made the decision to quit the rat race and decide to start my own agency. I've been in the game for a few years now working for an IA and I want a larger piece of the pie, if not all of it.

Here's the problem! I don't know much about where I'm going. At this point I only know that I'm leaving.

I don't have much start up capital but I can survive for 6 months or so with no income.

With the right carriers, I'm confident that I can build a 1 million dollar BOB within 2 years.

Here are my thoughts so far - SIAA, PGI, Erie or buying a small book of business. I see a few Allstate agencies available relatively cheap.

I've read that the master agency can make or break a cluster and I would like to learn more about how.

Who's been in my shoes before?
 
Before you make any sudden movements, I would talk to the following people or institutions and consider some of the following:
1. Your Banker. See if and what you can get for a loan.
2. Your current company reps about possible contracts, if you can trust they won't let the cat out of the bag. Remember, they will protect their current agents and agencies and may not offer a contract to you right out the gate. They may also know an agency to buy.
3. Member associations....PIA, Big I, etc. about your plan.
4. What does your current non-compete or restrictive covenant say? Have a lawyer look it over. Your current employer will most likely want to enforce it.
5. You think being an agent is competitive, wait until you try to buy an agency when your competing with guys/gals/firms that don't need an ROI for at least 5 years and your cash is limited. Not that it can't be done, the agencies are out there to buy and not everyone wants to sell to the biggest shop.
6. Have you discussed this with your current employer? He may not know that you have interest.

Maybe you have thought of these and maybe you haven't and there are many, many, other things to consider. These are just my humble opinions. Good luck and I hope it works out for you!
 
Start small, get MGA appointments, and build your way up. You can reach 1 million your second year, but don't bite off more you can chew. Acquiring another agency is useless unless you have money to burn.

Don't invest capital you do not have or limited thereof.

" If you cannot buy it twice without flinching, you cannot afford it. "
 
Glad to see we made the list. But I like Sconnieagent's comments. Some good wisdom there. Don't make any sudden moves. Slow down and see all the options. I like the buy an agency option.

Where did you end up going?
 
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