I want to start my own agency.
Starting
an agency from scratch is possible, but also challenging. Owning an
agency gives you the ability to be you own boss, have the satisfaction
of helping people protect their valuables and investments, as well as
provide you with good income potential for now until and into your
retirement.
Some things to consider when starting an agency from scratch:
- Investment Capital
You
will need startup capital to cover things such as office space,
equipment and furniture, E&O insurance and marketing. And, don’t
forget that you have to pay yourself! - Insurance License
In
all states, you need to be licensed in order to sell insurance. You
will be required to take a certain number of hours of training as well
as sit for a licensure exam. In most states, you will need a license for
each type of insurance that you wish sell. Contact the Maryland Insurance Department for information about licensing and required pre-licensing and continuing education. - Access to Insurance Companies
After
you are licensed, you will need to have access to insurance companies
to have insurance products to sell. In order to get an appointment to
sell insurance with many companies, you will need a marketing plan, some
background in sales, and a solid business plan. Research your
anticipated client base and know what companies will best serve them. - Great Management Skills
You
need to excel at sales, marketing and administrative management in
order to operate a successful insurance agency at the start up level.
You will have to wear many hats and will need a variety of skills to
ensure success. - Extensive Technical Knowledge
You
have to fully understand the many different types of policies, forms
and coverages in order provide your customers with the information they
need to make informed insurance buying decisions. You will need to
understand how to manage risks for your clients and be vigilant about
seeking more knowledge and training.
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