How Do I Start My Agency?

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.