im leaving my agency to start my own !

[californiabroker]

hi everyone, this is my first post , im a broker in CA ive been in the business for about 4 years since 18 yrs old. and ive been a p&c broker since earlier this year. i work for a broker in san jose, CA . my agency has pretty good appointments, allied ( nationwide) , zurich and about 100 more. but not making enough money ! im starting my own agency. besides geting an office, fax, phones, computers, e&o, etc. what els do i need? how to i get the notice of appointments? will anyone give them to me being a new agency? any advice is appreciated !

 

[djs]

The complete 'required' office supply list:
- Pen
- Paper
- Computer (with a limited supply of boring games)
- Scanner / Printer / Fax
- Phone
- Copy of your E&O insurance
- Copy of your license
- Key to your office
- Marketing plan

Everything else is pretty much fluff, and yes, I have lots of 'else'.
For appointments, you can always try with Allied and see if they will appoint you directly, then rebuild from there. You can also work the non-standard market and specialty insurance, get appointed with Bristol West (though Farmers just bought them, not sure if they accept new independent agents in California), and Foremost (oops, Farmers owns them to), and start writing away.

An alternative is to go to somewhere like Superior (sais.com) and write through them. You won't have binding authority though.

The third choice (if your good) is to come up to Fremont and work with me.

Dan

 

[The New Guy]

hi everyone, this is my first post , im a broker in CA ive been in the business for about 4 years since 18 yrs old. and ive been a p&c broker since earlier this year. i work for a broker in san jose, CA . my agency has pretty good appointments, allied ( nationwide) , zurich and about 100 more. but not making enough money ! im starting my own agency. besides geting an office, fax, phones, computers, e&o, etc. what els do i need? how to i get the notice of appointments? will anyone give them to me being a new agency? any advice is appreciated !

I would start with a budget. It sounds to me like you THINK you may know what it takes to open an office. I'm not trying to be rude, but your new office, doesn't sound at all like you have given it enough thought.

What kind of savings do you have? Who is your customer? What kind of location? Just the expense that comes with an office, can, and does drive, many out of business. Lets look at just the office.

First comes the rent, then there is a security deposit, usually the same as the first months rent. What kind of credit do you have? After the rent comes utilities: Phone, Electric, Gas, Trash, Internet, Insurance, Water, Taxes, many of them also require a deposit. The worse your credit, the higher the deposit. Once you sign a lease, these expenses come at you every month, doesn't matter if you have a good month, or bad month.

Once you have located your office, you need to furnish it. Here, you sound like you may know what it takes. But don't be fooled. Besides the desk, chair, computer, copier, fax etc.. Don't forget the office supplies, cleaning supplies, and your software fees for your quoting system. Depending how far from your home you are, what about eating? Eat at the office? Then don't forget about the frig, and the microwave.

Now that you have your office. How far is it located from your home, don't forget to factor that into your budget. Round trip everyday, sometimes two or three times a day. What kind of hours will you be open? What days? Whose going to sit there? Sitting in an empty office for days on end gets old fast.

Don't even get me started on employees. That's another whole expense of it's own. That's another desk, chair, computer, etc.. Not to mention the taxes. You pay Federal, State, Social Security, and Unemployment Taxes. Not much, about 13 to 15% above whatever you are paying them. So $10.00 an hour, becomes $11.50 and hour, of which the extra $1.50 per hour you have to save, and pay either monthly, or quarterly. I almost forgot about the Workers Comp Insurance, and allow for some employee theft. Personal use of office supplies, postage, etc..

This was just a quick overview off the top of me head, but should be fairly accurate. The grass isn't always greener on the other side. But if you chose to mow your own lawn, more power to you. I've been mowing mine for almost 25 years now.

 

[Survivor]

First of all, how good are you working for some one else?

The New Guy brings up some great points.

Before you do anything, you need a solid business plan. In this plan, you need to make conservative estimates. You need to determine how long you can keep your head above water if you do ZERO business. Also, if you don't make it, what kind of long term liabilities would you have incurred (the lease for instance).

You also need to determine your personal living expenses each month, and know that you have X dollars set aside for several months.

Also:
What type of business education do you have as far as accounting, finance, business law, etc.
If you don't have formal education in this you will need to read many books.

 

[rocky top buzz]

I guess I would differ from the two previous posts in that I think you're much better off working for yourself than working for someone else. The question is, are you self-motivated enough to work for yourself? If the anwer is yes, you keep your commissions instead of allowing the higher-up's in your agency to make a cut off of your work. I'm also assuming their not currently paying to provide you with leads, assistant, etc. Those are things you have to consider.

Not sure if you write any of our lines, but if you do I'll be happy to help you get started. Most of our independent agents got their start as career agents, so this seems to be a normal progression

 

[californiabroker]

thanks for all the advice so far. and the new guy you are not rude, i did ask for advice, i appreciate the honesty. i know that no matter how much i think i know, there will always be more. i figured if i had a years worth of living expenses and overhead saved up that should be good to start. even though im a new agent, i really want to open my own. im not trying to skip paying my dues but im 23, and as i write this, my 2 month old is crying and it makes me realize i need to be making more money in the long run. anyways, keep the advice coming i really appreciate being able get it from experienced agents !

 

[californiabroker]

i guess thats all haha

 

[gradyinsurance]

Be sure to have a marketing plan. I've been working without one for a few months, and its tough.

Good Luck, Dave.

 

[Corey]

Ever considered going into life also or are you sticking to P&C?