Leaving the comfort of a salary to start own agency

insurancegal · 06-09-2008, 04:56 PM

Hi everyone,
I am a P&C agent with a reputable brokerage making just about six figures a year. I have been thinking for a long time now to start my own agency but I am a bit scared to leave a salary paying job to work on my own - commission only. I have about 10 years experience in this field and know all the carriers I would like to continue to work with.

I realize I would not have a book to roll over, as I have a non-compete with my company, but I can always find other agencies such as NIA to get to these markets until I grow my book. I have become extremely BORED with my job! I think the company I work for is a very good one, I just don't see myself growing or learning anything new. Everyone in my office is older and have become complacent, I cannot learn anything from them.

I feel I can do this on my own but just thought I would get other experienced agent's thoughts or advice. Should I just look to work for another brokerage or should I start my own agency?

Thanks so much!

joshril · 06-09-2008, 05:06 PM

If you have 6-12 months of reserves in the bank, you would be crazy not to start your own agency with your experience. If you are looking to stay in P&C keep in mind you will probably want to have an office and your E&O will be much more than if you decide to the L&H route...

SureShot · 06-09-2008, 07:33 PM

I am in the same boat. I thinking about leaving a decent salary with an excellent LH company. It's just hard to imagine myself 10-15 years down the road. So I have my PC license now. I have over 1000 clients with just LH. Where can I get an appointment to do PC? Is it as easy as I think?

xrac · 06-09-2008, 08:02 PM

You guys sound like you are in an excellent place to be successful on your own. However, it also sounds like an attack of midlife crisis. I know because I have been there and I took the risk but I was internally DRIVEN.

SureShot · 06-09-2008, 10:02 PM

Xrac how did you initially start? Did you sub for a GA? Do you think that I can use the Life and Health client base to justify being a PC carrier?

And yes, I am going through a mid-life crisis, however, I will come out stronger than I was before.

xrac · 06-09-2008, 10:28 PM

Originally Posted by SureShot

Xrac how did you initially start? Did you sub for a GA? Do you think that I can use the Life and Health client base to justify being a PC carrier?

And yes, I am going through a mid-life crisis, however, I will come out stronger than I was before.

I know about mid-life crisis.

As I have posted elsewhere I was not in insurance. I left the best job I had ever had to start my own business with no partners, no money, a wife, and three teenagers and I succeeded. I HAD TO I had no alternative. Here are some things I think I would do:

1. Plan every detail. Have a well thought out business plan.
2. Do everything you can to minimize overhead. I started my business at home and moved out only when I outgrew my space.
3. Build whatever nest egg and war chest that you can.
4. May sure your wife is completely on board.
5. Keep your current production up but figure out a way to move business away from your current situation. I don't mean being dishonest but there are ways to do this without violating your noncompete or to be selling away. Maybe something as simple as an agreement with another agency where you are not appointed with the company and not the agent of record but where some type of split of commission and renewals flows to you. I have that kind of set up with an agent and money is paid to a corporation I have.

I am sure that there may be other things but this is what leaps out at me tonight.

Soaringagent · 06-09-2008, 11:43 PM

What insurance companies do you like doing business with?

insurancegal · 06-10-2008, 05:06 PM

Hi everyone, thanks so much for your words of encouragement! I will start with a business plan and go from there.

Insurance Phoenix · 06-11-2008, 12:56 AM

Some of your decision may rest with your age and how much time/energy you want to put into starting over. It's alot of work doing it again, after building a business with a captive. But it's worth it for most people.

halis · 11-09-2008, 11:37 PM

Getting appointed with P&C carriers is actually not that easy, however with your experience (and E&O insurance) I think any of them would appoint you directly.

1manshow · 11-13-2008, 12:55 PM

IMO, Timing couldn't be better to jump into the mix right now. I'm hearing fellow P & C agents crying about no business, no calls, etc. We have an active marketing plan and are up 30+% in new business from '07 numbers with room to improve. So.... sitting on your ass is really not the best position to be in right now. These "old school" P & C boys are ripe for the picking while they're sitting back waiting to weather this current storm. I hope you do well in your efforts.

I also took the road that xrac took about 20+ yrs ago. Best gamble I've made to date.

moonlightandmargaritas · 11-13-2008, 01:03 PM

Originally Posted by 1manshow

IMO, Timing couldn't be better to jump into the mix right now. I'm hearing fellow P & C agents crying about no business, no calls, etc. We have an active marketing plan and are up 30+% in new business from '07 numbers with room to improve. So.... sitting on your ass is really not the best position to be in right now. These "old school" P & C boys are ripe for the picking while they're sitting back waiting to weather this current storm.

A great post.

Many wait by the phone...aggressively waiting for it to ring...

bobson · 11-13-2008, 05:16 PM

Originally Posted by 1manshow

IMO, Timing couldn't be better to jump into the mix right now. I'm hearing fellow P & C agents crying about no business, no calls, etc. We have an active marketing plan and are up 30+% in new business from '07 numbers with room to improve. So.... sitting on your ass is really not the best position to be in right now. These "old school" P & C boys are ripe for the picking while they're sitting back waiting to weather this current storm. I hope you do well in your efforts.

I also took the road that xrac took about 20+ yrs ago. Best gamble I've made to date.

There are a lot of bozos on here. 1manshow is not one of them. If you start your own agency, go through and gather all of 1man's post, cut and paste them in a Word document. You'll have a great marketing plan right there.