New Agency? Avoid These Common Startup Mistakes

Hi Agents,

When starting a new insurance agency, success is never guaranteed and many start-ups are prone to failing. We all had to start somewhere in the insurance industry and some of us had to learn the hard way.

So, how does a savvy independent insurance agent avoid failure? Below are some brief takeaways that will help you lead your agency in the direction of success:

Right when you start your agency, it’s easy to get wrapped up in all the marketing materials you “need”. These are all important parts of your agency but when starting out, will these purchases directly lead to new sales? Don’t waste money without planning out your marketing goals. A marketing plan is a great way to insure your agency messaging is consistent, the money you spend is going towards building revenue, and help with focusing your budget to invest in online insurance leads and live-transfer calls that will result in actual sales. Auto insurance leads are a great first investment because they usually close faster than other leads, resulting in immediate ROI!

When starting an agency, many insurance agency agreements require a retail office or location prior to opening. Opening an office includes furnishings, possible support staff, and monthly operating costs. Trying to keep up with the Joneses won’t get you more customers so keep it simple. Only purchase necessities and focus on 2nd hand items such as a desk or shelves from the internet. During the first year of business, agency owners should keep their fixed expense or overhead to a bare minimum. In doing so, there will be more available resources to invest in things that will result in sales such as inbound insurance leads.

You’ve passed your test and learned everything you need to know about the insurance industry. So you don’t need any further training. Wrong! No matter what industry you’re in, it’s always best to stay up on the latest trends and new developments that are happening. No matter how long you’ve been in the insurance industry, agents should always be on the lookout for additional and ongoing education, training and mentorship. Classes, seminars, conferences, or simply keeping up with industry news are all great ways to grow professionally. By continually working to make yourself a better agent, you’re showing your customers you are the best agent they should be working with!

One of the biggest perks to owning your own agency is having the ability to have more flexibility in your schedule. Sometimes it can be too easy to leave work for a personal event. A new agency is going to take more than 40 hours a week to be successful. As you start to build up interest in your agency, you’ll find working outside normal business hours is a great way to reach potential customers. It can’t be said enough that starting your own business will take all of your blood, sweat, and tears!

The Takeaway: These tips may seem obvious but it can be easy to overlook the small details that can make a big impact on your agency! Anytime you’re making a decision for your agency ask yourself “How will this decision impact revenue for the company?” That way you can prioritize needs and wants efficiently!

Find your next happy customer.

- Contactability