Start Up Cost of an Independent Agency

[Roenick27]

Hi all,

I have been a captive agent for the past few years and worked at another captive agency. I was thinking about going indy .
I know it depends on rent, location etc, but what are some sample estimated costs of the operating system needed etc that you can expect to have when going independent?

 

[scooter33]

Hi all, I have been a captive agent for the past few years and worked at another captive agency. I was thinking about going indy . I know it depends on rent, location etc, but what are some sample estimated costs of the operating system needed etc that you can expect to have when going independent?

A lot of factors, but here were my approx. Costs...

-office, $700 per month
- agency management system, $175 per month
- rater, $100 per month
- E&O, $1500 per year
- office phone, 75 per month
- efax, 10 per month
- Internet, 100 per month
- office eq. Desk, chairs, printer, scanner, computer, etc....2000
- business license, city business license, etc, 500
- stationary, business cards, letterheads, etc... 1000, got nice ones.

I'm sure I am missing others, but that's all can think of now.

 

[Verbgravy]

A lot of factors, but here were my approx. Costs...

-office, $700 per month
- agency management system, $175 per month
- rater, $100 per month
- E&O, $1500 per year
- office phone, 75 per month
- efax, 10 per month
- Internet, 100 per month
- office eq. Desk, chairs, printer, scanner, computer, etc....2000
- business license, city business license, etc, 500
- stationary, business cards, letterheads, etc... 1000, got nice ones.

I'm sure I am missing others, but that's all can think of now.

This is a pretty solid low end estimate. Keep in mind this includes $0 marketing.

I would add-on another approximately $500 for agency website/email setup.

 

[Guest]

Hi all, I have been a captive agent for the past few years and worked at another captive agency. I was thinking about going indy . I know it depends on rent, location etc, but what are some sample estimated costs of the operating system needed etc that you can expect to have when going independent?

After you have purchase office furniture, supplies, all the one time start up items & fees... Then I would budget about $1500 a month for expense, rent, marketing , etc...

 

[scooter33]

This is a pretty solid low end estimate. Keep in mind this includes $0 marketing. I would add-on another approximately $500 for agency website/email setup.

Good call... Need a website, hosting for website and email. Also, would recommend get cloud sever for all documents. Yes, 1500 a month for marketing sounds about right. With all that said... Plan on making little to nothing for the first 12 months.

 

[Lee_CQ]

marketing.. leads... marketing... leads... you get the idea. but if you get it done right it will be worth it in the end. Clearly a hockey fan so I take it its not dental. What kind of insurane?

 

[thomasm]

Depends on what type of insurance. If anything other than P&C, skip the office. Work out of your home.

A lot of agents think they need to have everything set up first before they officially launch. It's also one of the reasons this industry has a 95% failure rate.

Just invest in the bare minimum necessities you need to generate business, then gradually invest in the rest when you can cash-flow it out of either FYC or renewals.

Simple question to ask before spending any money: "Will this purchase directly translate into more sales for my business?" If not... it can wait!

 

[Roenick27]

Yeah JR was one one my favs.
P & C office for sure but I'm licensed in life and health and have about 6 years experience. I have a small and I mean small base of clients that I know I can take with me but I also don't know if I can get appointed with a top end carrier right away. I don't want to place a food client in a substandard carrier. Based on location I'd probably start out writing high premiums in sub standard carriers to drive premium quickly and easily to bring in cash flow to build off of

marketing.. leads... marketing... leads... you get the idea. but if you get it done right it will be worth it in the end. Clearly a hockey fan so I take it its not dental. What kind of insurane?

 

[Guest]

Yeah JR was one one my favs. P & C office for sure but I'm licensed in life and health and have about 6 years experience. I have a small and I mean small base of clients that I know I can take with me but I also don't know if I can get appointed with a top end carrier right away. I don't want to place a food client in a substandard carrier. Based on location I'd probably start out writing high premiums in sub standard carriers to drive premium quickly and easily to bring in cash flow to build off of

In that case ... Start out of your house. I did.... I'd still be if it was not for kids

Where are you located, I know a few standard carriers that are appointing?

 

[Roenick27]

In that case ... Start out of your house. I did.... I'd still be if it was not for kids

Where are you located, I know a few standard carriers that are appointing?

I'm in NY. I know I can get progressive etc but was hoping for a met life or travelers or a comparable local place

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And thanks all for the quick replies!!

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Thanks all for the responses so far