Start Up Cost of an Independent Agency

[Verbgravy]

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 ---------- And thanks all for the quick replies!! ---------- Thanks all for the responses so far

I can't speak to NY specifically, but if you're not joining a cluster of any kind, you can still get a Travelers, Hartford, etc., you'll just need a solid business plan with a clearly defined marketing strategy and you'll need to make a large commitment to them. I would personally look in to joining a cluster for the profit sharing and carrier access.

 

[sarag]

I can't speak to NY specifically, but if you're not joining a cluster of any kind, you can still get a Travelers, Hartford, etc., you'll just need a solid business plan with a clearly defined marketing strategy and you'll need to make a large commitment to them. I would personally look in to joining a cluster for the profit sharing and carrier access.

Im in Oregon n looking to start my own agency. Anybody in Oregon that can give me advice.

 

[Guest]

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 ---------- And thanks all for the quick replies!! ---------- Thanks all for the responses so far

Contact your local Mutual of Omaha office and tell them you want an APC contract, not the carrier contract. The APC requires you to only make $1,0000 Of MOO commission a year to keep the contract. By getting the APC contract, you can get appointed by Liberty Mutual and sell their auto and HO products through their MOMCO division.

 

[Roenick27]

Contact your local Mutual of Omaha office and tell them you want an APC contract, not the carrier contract. The APC requires you to only make $1,0000 Of MOO commission a year to keep the contract. By getting the APC contract, you can get appointed by Liberty Mutual and sell their auto and HO products through their MOMCO division.

Awesome. Thanks again for the response

 

[Canureallysale]

Good Luck,

I too recently went Indy, and it's tough, but I would not go back. Two things I would change is my marketing budget and my working capital. Depending on where you may be leaving that whole book with all the renewals stays with them. So your renewal income goes to $0.00 per month. You have to replace that fast with as many new customers as you can get, so double or triple what you spend marketing the new agency and getting the word out, add some marketing stuff you did not / could not do before. Remember to get your agency name out there.

Second make sure you increase your operating reserve and household reserve by a multiple of 2 or 3. Good Luck.

 

[JohnWalker]

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 good solid estimate. I started my agency with about $4500 out of pocket first month then about $2500 over head each month thereafter including marketing.

 

[Blastr17]

What part of New York?

 

[Lee_CQ]

There's lots of ways you can save that add up too, it just takes some research. For instance, I added one of those goofy magic jack phone lines you see on the infomercials. It was $35 total, not monthly, for the first 6 months. Now they added you can buy a 5 year plan for $120 total, talk about savings. Thats just one example.

 

[bliss171]

I would like to tack on a follow up question to this post. I just signed a lease to go indy in a great spot. I am fixing to sign up for phones/internet and would like some advice. I saw some posts in here regarding efax, etc.

I was going to go with Charter as they have a bundle where I can get 2 lines (one rollover), a dedicated fax line, and high speed internet for about $175/month. Is there a cheaper way to do this? I don't want any issues, so I thought this was the best option. After tax and misc. it will probably be about $225 or more.

Thoughts?

 

[Guest]

I would like to tack on a follow up question to this post. I just signed a lease to go indy in a great spot. I am fixing to sign up for phones/internet and would like some advice. I saw some posts in here regarding efax, etc. I was going to go with Charter as they have a bundle where I can get 2 lines (one rollover), a dedicated fax line, and high speed internet for about $175/month. Is there a cheaper way to do this? I don't want any issues, so I thought this was the best option. After tax and misc. it will probably be about $225 or more. Thoughts?

I have a ring central phone for &45 a month w/3 lines. Internet is $95 a month.