- 156
I know guys, here we go, another one of these threads...
First some background info on me. I'm 34, fell into the insurance industry back in 2005 trying to get out of retail. I started off in a call center working for the little green guy, spent 6 months in customer service before moving into a hybrid customer service/underwriting hybrid position. From there I went to Mercury insurance as an underwriter for several years. Now I am in a sales and service position in another call center for USAA doing P&C. I am licensed in 16 states due to the nature of the call center environment since I do have to take calls from the states my region handles. On my own I have obtained a CISR and PLCS designation, and I am one module away from my AINS (they've opened up options so I have to decide what module to take next). I'm considering getting my L&H license on my own as well just to have the additional license, although I have no experience in it and at work I can not talk about or learn about the LOB unless I am moved into that position, which would require posting for the position, interviewing for it, and so on. So work is no help on that particular front.
Although I have insurance industry experience, I do not have AGENCY experience. I have been applying to agencies to try to get some agency experience, and I do well in the interviews but then get declined because they want someone with agency experience. I've flown to MD on two occasions for 5 interviews to go through this same frustration.
I made some great agency relationships when I was an underwriter for Mercury and once I have a solid business plan and some concrete plans in place, I think I can reach out to some old agents for mentoring since I will not be in their markets (I am currently in FL, but looking to relocate to MD, the agents are in NJ). But I'd rather not reach out to them until I have a solid plan in place, and maybe already have the wheels in motion.
I have been lurking on the threads here for a few days now since I've been toying with the ideas of opening up my own IA. NCAgent and Crabcake Johnny's threads are excellent and filled with some great tips and AgencyEquity.com has a lot of good links, and I definitely feel that it's the way to go. Captive usually want way too much to talk to you (I've seen Allstate asking for $70k-$150k liquid depending on the region). Plus while I do need to make a living, I'm very big on doing the right thing for the customer and when it's getting 100/300/50 vs 10/20/10 coverage for the same price, I'm going to urge them to the 100/300 all day long.
While I've been lurking I started making up a spreadsheet of some startup costs to see what I would need to get my feet wet to get this started. Until I read NCAgent's post, I wouldn't have even considered not needing an office space for the first year or two, but then I thought about it and realized that most people are like me and want to go on line and click the quote button and have that convenience, so I don't really need that office right now. So it definitely changed my numbers some. Plus that changes utilities and such since now on my spreadsheet I have a "home office" instead of retail space.
Of course though I have some questions though. One thing I see debated on posts is an agency management system. I'm assuming for the first year or so, especially since I plan on using someone like SmartChoice (most posts seemed to speak highly about them for someone in my position), that I wouldn't need it. But a few posts seemed adamant that you needed it right off the bat to keep cost down later. For those that went this way, which is your experience?
For those that have used SmartChoice, I see that they let list on there EZLynx and that they charge you for the use of it. And I know from my Mercury days that a lot of companies do use that to link to their AMS systems. Is this an option, or a mandatory part of their program? As part of their Smart Start program since they only give you access to 4 carriers on their website, I can't see the $199 setup and $109/mo being worth it unless I'm quoting like I do in my call center now.
Next, LLC vs DBA... I was starting off looking at going with an LLC. But again, as I would want to keep costs lower for starting up, I wouldn't want to need a second license for the LLC. So I think a DBA would be the way to go until I'm more established. Thoughts? And for anyone who is familiar with MD, if I do start off with the DBA and move to an LLC later, any idea how hard it is to move everything over? Or should I just go all in on the first go?
Liability insurance - I know how important this is in general. But if I have no office space and I'm carrying E&O when this starts, should I carry this as well?
I have a friend who is a CPA that recommended Quickbooks and who will help me out with my taxes, I have another friend who is a graphic designer that can take care of my print ad needs, and one that does web design. Looked into web hosting and there are a lot of good deals out there right now, of course I can't move on that until I decide on the DBA or LLC thing because I'll want the domain to be the same or close, depending on what's available.
At this point, I have not actually started any of this, only started looking. It is definitely something that I want, and I know it won't be easy. I don't expect to be making $100k a year the day my website and mailers go out without picking up a phone. I want to actually make something for the work I put into it. I want to build a legacy for my family. And I want to have my personal freedom. So I'm open to all of your advice, please let me know if I forgot anything (because I'm sure I have) and thanks ahead of time!
Steve
Contact me through my email [email protected] I will give you my cell I own an operate a independent in Florida and had a similar road as you. Hence the forum name I will be happy to chat with you
