ApexConsultant
New Member
Hello everyone.
I currently work for a very old and established Property Casualty Agency. I helped broaden the agency 7 years ago when I came in and started the Employee Benefits Division. It is not a finished product, by no means, but the Agency now has a name for itself in the Benefits World.
That being said, I really want to start my own Employee Benefits Firm. I have done tons of research. I have over 12 years of Benefits selling experience with 7 of those years as a broker/consultant.
I do not currently own any part of my book of business which generates roughly $500K in revenue. Some of my customers came from referrals from our main P&C producer whom is also a Principal in the company.
I would estimate I would have to leave behind about $100K of revenue due to shared relationships that we have. So I would be looking to walk away with about $400K in revenue.
I have a fairly good relationship with the two owners. They often come to me for my opinion on things we implement across the agency. We employ about 30 people.
The main reason for me wanting to go out on my own is that I am 33 years old and I have a vision of what I would like the Benefits Division to look like. The two principals are in there 50's and are somewhat "life style" agents if you will. They are in their comfort zone and the agency really is not growing.
I have consulted a bank about a SBA loan, checked in on office space, looked at agency technology so I have a good feel for what my overhead will look like.
The biggest challenge I have right now is coming up with a way to present this to the Principal's of the company. If they shoot down the idea, I will of course remain at the agency until I can come up with another plan. I really need some advice on how to bring up my goals without insulting them or them taking it personal.
Since they are primarily P&C guys, I do believe I could purchase the book of business at an affordable price. If I were to simply walk away from it, the revenue would go to zero quite fast I believe.
Questions:
How should I approach the subject?
How should I seek financing (banks, agency financing)
What should I offer for a block generating $400K in revenue?
I do intend on waiting until after Healthcare Reform passes because this could be a deadly venture if Small Group business goes to the wayside.
Thanks and sorry for the lengthy post!
I currently work for a very old and established Property Casualty Agency. I helped broaden the agency 7 years ago when I came in and started the Employee Benefits Division. It is not a finished product, by no means, but the Agency now has a name for itself in the Benefits World.
That being said, I really want to start my own Employee Benefits Firm. I have done tons of research. I have over 12 years of Benefits selling experience with 7 of those years as a broker/consultant.
I do not currently own any part of my book of business which generates roughly $500K in revenue. Some of my customers came from referrals from our main P&C producer whom is also a Principal in the company.
I would estimate I would have to leave behind about $100K of revenue due to shared relationships that we have. So I would be looking to walk away with about $400K in revenue.
I have a fairly good relationship with the two owners. They often come to me for my opinion on things we implement across the agency. We employ about 30 people.
The main reason for me wanting to go out on my own is that I am 33 years old and I have a vision of what I would like the Benefits Division to look like. The two principals are in there 50's and are somewhat "life style" agents if you will. They are in their comfort zone and the agency really is not growing.
I have consulted a bank about a SBA loan, checked in on office space, looked at agency technology so I have a good feel for what my overhead will look like.
The biggest challenge I have right now is coming up with a way to present this to the Principal's of the company. If they shoot down the idea, I will of course remain at the agency until I can come up with another plan. I really need some advice on how to bring up my goals without insulting them or them taking it personal.
Since they are primarily P&C guys, I do believe I could purchase the book of business at an affordable price. If I were to simply walk away from it, the revenue would go to zero quite fast I believe.
Questions:
How should I approach the subject?
How should I seek financing (banks, agency financing)
What should I offer for a block generating $400K in revenue?
I do intend on waiting until after Healthcare Reform passes because this could be a deadly venture if Small Group business goes to the wayside.
Thanks and sorry for the lengthy post!