Page 77 - The UnCaptive Agent

50 THE UNCAPTIVE AGENT

that have to happen for you to get your agency off the
ground successfully?

You’re Going to Need Money

The first consideration that every business owner needs
to think about is capital. You need money to start a
business. The question you have to answer is, “How
much money does the business need to survive the first
year?” And equally important, you need to ask, “Where
will it come from?”
Certainly, some of the money will come from sales of
insurance policies. But before that, you must have money
to buy office equipment, furniture, supplies, marketing
materials, a website, agency automation software, and
a myriad of other things. Service businesses like insur-
ance agencies are relatively low in capital requirements.
However, they still require capital.

Startup Expenses

Let’s begin by making a list of the things you’ll need.
They include office furniture, a computer system, and
a printer. You’ll need a telephone system, cell phone,
website, comparative rating system, agency automation
system, business cards, miscellaneous office supplies,
and a myriad of other things, including organizational
expenses. You’ll need to purchase insurance, too, includ-
ing general liability, auto, workers’ compensation, E&O,
and cyber liability, at a minimum. Your capital needs
will also depend on the number of people you plan to
employ and how much equipment you will need to
provide for them. These are all initial capital expenses
and may run somewhere between $10,000 and $50,000