Hidden costs in working for yourself

[Christian Vincent]

First time post, long time lurker.

I am considering making the jump from the medium to large sized term brokerage into working for myself. My niche currently seems to be with some FE products I have available to me.

I am curious other than leads, travel expenses, E&O, And licensing what some of the hidden costs may be. Any advice would be appreciated.

Thanks

 

[LostDollar]

Caveat, not an agent.

One of the things I see discussed from time to time that I would not have thought of is the ability to record phone calls.

 

[somarco]

leads, travel expenses, E&O, And licensing

Where are you traveling?

 

[goillini52]

First time post, long time lurker.

I am considering making the jump from the medium to large sized term brokerage into working for myself. My niche currently seems to be with some FE products I have available to me.

I am curious other than leads, travel expenses, E&O, And licensing what some of the hidden costs may be. Any advice would be appreciated.

Thanks

Quote engines, website, business cards, internet, printer/copier/scanner, ink, paper....

 

[pfg1]

Self employment tax

 

[WinoBlues]

Laptop or tablet, Smartphone with Hot Spot. A lot will depend on if you are going to be F2F or telesales Only.

 

[TwiLight]

Here is a partial expense budget to start.

rent: work from home and deduct % of space off rent or house payment
laptop: $900 or less
E&O: Depends on what you do. Life and health as little as $400/yr and Mo payments
Phone fax combo: as little as $19/mo. Shop around
Quoting engine: As little as $60/yr www.agentquoter.com
Website and email: start with Agent Quote site or landing page
Copier/Scanner: $200 to 400, depends on what you like
Licensing: Where you are from "Texas" worry about that state for now.

These are costs prior to getting leads or marketing for leads or driving traffic to your website.

The Skipper

 

[marindependent]

First time post, long time lurker.

Love this opening line.

There are a lot, far more than you may think.

First off, unless you absolutely have to, I would skip on Office Rent in the beginning.

Startup Costs Include:
General Software, such as Cloud Storage, Antivirus, Email, etc
Industry Software, such as Raters, Management Systems, CRMs, E Signature
Website Hosting, Build Out, Up Keep
Incorporation Expenses
Accounting Fees or Software
E&O Insurance
GL Insurance
Advertising and Marketing
Lead and/or List Purchasing (if you are going to do this.)
Lead Groups or Other Group Association Fees (if you are going to do this.)
Licensing and Training. If you are doing multi state this is more than you might think.
Other Professional Development Costs
Computer, Internet, Phone, Cell Phone, Headsets for Computer and Cell Phone
Scanner, Copier, Fax Combo
Paper, Envelopes, Printer Cartridges, Bus Cards, Stamps, Stamper, Pens
A Business Checking Account (which could or could not be free)

- Not sure as others have said on the travel. I guess a bit of travel expenses. In the grand scheme of setting up a new business, being a stand alone insurance agent/broker is not all that expensive. If you work out of your house you can be pretty bare bones about it.