How Much Did You Have Saved?

nyc2phi

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How much did you have saved when you opened your doors to your independent or captive agency?

I know everyone's situation is going to be different but I wanted to get an idea since I may possibly embark on this journey.

If I have a small office costing appox $600/month, using average figures for all other common business expenses, marketing which primarily consists of purchasing leads, attending networking events, and using gift cards to entice referrals, would 50K be a good starting point? I would be writing primarily personal lines and averaging around 25K in premium a month.
 
How much did you have saved when you opened your doors to your independent or captive agency?

I know everyone's situation is going to be different but I wanted to get an idea since I may possibly embark on this journey.

If I have a small office costing appox $600/month, using average figures for all other common business expenses, marketing which primarily consists of purchasing leads, attending networking events, and using gift cards to entice referrals, would 50K be a good starting point? I would be writing primarily personal lines and averaging around 25K in premium a month.

I think you can do it on 50K. Will you have to pay yourself out of the 50K?
 
Most likely but my personal expenses are low, no mortgage, not married, no kids, just a small car payment and credit cards.

If I get a direct appoint the carrier looking to appoint also has a loan progam that works kinda like a draw but I would have to get approved for that as well.
 
Honestly if your prospecting methods are solid you can start with almost nothing. When I opened I had $4500 cash and $10k in credit cards. It made for a really fast return on investment.

Of course nobody will recommend you start a business with $4500 but it can be done.
 
Most likely but my personal expenses are low, no mortgage, not married, no kids, just a small car payment and credit cards.

If I get a direct appoint the carrier looking to appoint also has a loan progam that works kinda like a draw but I would have to get approved for that as well.

I think you will be just fine. Just do not spend one dollar you do not have to spend until you build some cushion.
 
Thanks !

I am really looking forward to the opportunity, I have one more meeting to get the final approval.

Still interested in here how you all started out so keep em coming !
 
Thanks !

I am really looking forward to the opportunity, I have one more meeting to get the final approval.

Still interested in here how you all started out so keep em coming !

I didn't start an agency from scratch in insurance but I did start an environmental consulting, engineering, cleanup company from scratch. I had three teenage children and a wife with a minimum wage job that did provide health insurance. I began with $15K and I succeeded. My second full calendar year we grossed in excess of $1,000,000. That was in the early 90's.
 
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