Any advice for 26 years thinking of starting a new State Farm Insurance Agency?
I have 1 years experience working as an insurance claims adjuster for one of the largest insurance companies, P & C and I am tempted to start my own agency interests. I know my own business someday, and I’m looking for the best oppurtunity to succeed. I’m as good as the responsibility of all owning your own business is concerned (rent paid, older workers, your customers are satisfied with it, etc) I am the financial rewards that come from owning your own business as but I’m not sure I am ready to undertake this task. Suggestions to say if I could do? Any suggestion to predict my success?
March 3rd, 2010 at 5:57 pm
I think you’re better off getting a job WORKING for a State FArm agent, or independent agent, to see how well you can sell.
Claims adjusting and sales are two COMPLETELY different horses – I’d take baby steps on this one.
You could PROBABLY keep your day job, get your producer’s license, and get someone to take you in on a commission split part time – evenings & weekends, until you know if it’s going to work for you. That’s what I’d do if i were you.
March 3rd, 2010 at 6:08 pm
You couldnt think of another insurance agency? State Farm is not a name screaming with trust now a days due to their wrong doing with Katrina victims.. A good thing you have working for you is your age. I admire your determination and eagerness but chances of success for a first time business is hard to predict. I wish you the best of luck
March 3rd, 2010 at 6:46 pm
Agentco (www.agentco.com) is a market access provider that helps provide insurance markets for new,small and mid-sized independent insurance agencies. AgentCo allows you to get a sub code appointment with carrier, build a book of business and when that book becomes large enough for a direct appointment they allow you to exit their services and go direct with the carrier. It’s a great way to start an agency without losing any of the Independence. Oh yea, great commission split too!
AgentCo also offers an “AgencyStart” consulting program that is designed to help you answer the tough questions behind becoming a Independent Agency owner. You would develop the final product of this service , which is a business plan with in depth custom financial projections. Streamline the startup process and gets you ready for carrier appointments. AgentCo’s personnel has over 60+years of combined Independent Agency experience and can provide great guidance for any startup!
Inquire through website if you would like more info. Hope this helped. Best of Luck!
-Jason
March 3rd, 2010 at 7:01 pm
State Farm, like most ‘captive’ companies or ‘direct writers’ (agents sell for one company exclusively) , has a very good training program for new agents. The agent training program (in most states) is 6 months or longer in duration. It involves classroom training and field (agency) training. You have to be successful in selling bank and life insurance products(along with home and auto) before you get assigned an agency. They will start most new agents out with a salary or draw and pay some of the office expenses as they start their business.
Your best chance of success is getting a a small customer base or ‘book’ to start with. If you start up without any customers it’s called a ‘scratch’ agency. At State Farm they told us that 25% of scratch agencies succeed.
Other companies have similiar programs for new agents. I think you should have a lot of options in your area.
September 27th, 2010 at 1:04 pm
I’m not an agent or in the insurance business but after reading your post I have a few comments. First and foremost, I would work on your grammer and written communication skills before pursuing any career change. I don’t say that to be mean, but the fact is; if I were to read something like this from an agent (Or anyone for that matter)wanting my business I wouldn’t even consider it. Next, I would really take a look at your skills and determine if you have the knowledge base, sales skills, and management ability to run your own office. Do you have a business plan? What about start up capital? Do you have enough, or do you need to borrow? Are you getting a loan or do you know someone who will be a private backer? What about the liscensing aspect. After all of this is considered, then look at the current economy and geographic region you want to start your company in. Based on that, do you have opportunities, room for growth etc… What are the demographics of people living in the area. How many staff members do you need to handle the volume of your book, mitigate risks, cold call etc… Will you be getting a book of existing clients and policies or starting from scratch. Hopefully these items will help you better determine if this is the path you want to take. I wish you the best of luck in your decisions and the actions that follow.