Goal: I am looking for advice to help with the decision if the timing makes sense to start my own agency.
Background: I have over 8 years of experience writing commercial/group/life and have been on the independent side for 3 years working for an agency with top tier carriers. I average 80-100k of revenue production per year.
I have always had the goal of owning an agency and came to my current agency on the promise of future ownership, but I will be a minority shareholder for at least 20 years.
I have the ability to get an appointment from Erie, but will need to spend more time on personal lines than I have in the past. I also will sell benefits.
Problem: I'm having trouble forecasting expenses. Is there a good rule of thumb for a percentage of revenue? Also. I have no idea on what to forecast for potential contingencies in future years. Lastly, I know my revenue numbers will take a hit as I will be wearing more hats. I will be walking away from six figures guaranteed. Any help is appreciated.
Background: I have over 8 years of experience writing commercial/group/life and have been on the independent side for 3 years working for an agency with top tier carriers. I average 80-100k of revenue production per year.
I have always had the goal of owning an agency and came to my current agency on the promise of future ownership, but I will be a minority shareholder for at least 20 years.
I have the ability to get an appointment from Erie, but will need to spend more time on personal lines than I have in the past. I also will sell benefits.
Problem: I'm having trouble forecasting expenses. Is there a good rule of thumb for a percentage of revenue? Also. I have no idea on what to forecast for potential contingencies in future years. Lastly, I know my revenue numbers will take a hit as I will be wearing more hats. I will be walking away from six figures guaranteed. Any help is appreciated.