Funds Needed/Required to Start in Insurance

surance whizard

New Member
3
Hello all of the Forum, I currently work at a captive agency for over 3 years and have been told that i would need anywhere from between $15,000 to $25,000 cash plus an additional $50,000 to $75,000 in the form of a loan or line of credit. Just curious to see where everyone started out here and how. The lines of credit currently are hard to get especially $50,000 from what I have heard. I am open to any sugestions or advice. I have looked into both Farmers and State Farm and both look like the start up capital would need to be about that to keep you afloat although they will both help you out. State Farm seems as though they want you to have the money now. Where as Farmers seems to really not care if you have it or, again this is my personal situations yours may be very differant. Please elaborate if you have found creative ways to find start up capital, and from what type of resources. Thanks again in advance.
 
There is no answer to this question. You didn't specify what you are looking for.

If you need money to live on, then you will need that much for a year. You will be making money well before this, but it will take a while (especially in P&C) to get a full income rolling in. In the meantime, life goes on and so do your expenses.

From there:
- Find a small office space in your area to see what rents are going for. Multiply this by 12.
- Add in furniture.
- Computers, phones, utilities.
- Ahh, the inevitable marketing expenses. Figure out what you want to spend for the year. Multiply that number by 5 because you didn't plan near enough.
- Need staff? Have at least 6 months of their salary on hand starting out.

If you have a working spouse and no real bills you can start with a lot less than if you provide all the income and have 2 car payments, 5 credit cards and a $5000 a month mortgage.

The business side is whatever you want to spend, but the less you spend, the slower the growth. Or worse, spending unwisely.....

Dan
 
Hi Dan,
Thank you for your reply I already know my budget and what I need to start out, I should have been clearer I have a business plan put together I know what all of my expenses are supposed to be (estimated). I am trying to figure out what institutions are lending currently and what type of lending they are doing. My credit is in excellent shape, I am trying to figure out what helped everyone else get started. And if anyone had any ideas that they have used recently.

thanks again in advance.
 
Stay away from Farmers as their washout rate is around 98% with their new contract, which limits your outside income to zero. YOu cant sell any health or outside commercial. Terrible.
 
$5,000 a month mortgage!!!!?

Who the he!! Has a $5,000 a month mortgage?

Either that was a misprint or I'm really getting to be an old geezer.
 
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