Technology is infiltrating the career landscape. With so many news networks and industry analysts predicting the consumption of our career choices by Artificial Intelligence (AI), you might wonder if your job is next. This is a scary proposition, but there is still time to do something about it. You could control your destiny by pursuing an entrepreneurial endeavor like buying an insurance company for sale.
Owning and operating your own business can come with many side benefits, like the freedom to be your own boss, the fulfillment of growing something to new heights of success, and impacting the lives of other workers, customers, and the community around you. If becoming an entrepreneur as a policy provider sounds like a promising opportunity, we have five tips for you to consider as you get started.
1. Franchise or Independent?
The first choice to make when purchasing an insurance company for sale is to decide between starting an independent agency or owning and operating a franchise. Which path you choose depends greatly on your specific needs as a business owner.
Suppose you prefer to start from scratch. In that case, you would create your brand image, develop your own hiring and training processes, and have zero guidance from external sources. If you want to start from the ground up, an independent agency might be the right choice.
Likewise, we don’t blame you if that option sounds risky. Inherently elevated levels of risk exist in any startup or brand-new venture. After all, nobody has heard of you, so customers won’t line up to enroll in products and services they’re unaware of. Also, where do you go for assistance, resources, and proven processes to hire “A” list talent and train them?
To diminish as much risk as possible, exploring franchise insurance companies for sale will likely be the best decision.
When you join an existing franchise, you assume its brand name, which means all the customers who are already familiar with the coverage options, prices, and services from that entity will be more inclined to join you. People love the idea of being comfortable and familiar with their choices. As a franchisee, you also get the parent company’s proven track record, technology, and established hiring and operational processes.
Most franchises require a fee to purchase the use of their business model, but inheriting their methods and practices is usually well worth any additional cost associated with the initial investment. If you’re worried about limitations, most existing providers still allow you to have great flexibility in selecting your options for products and services.
2. What Are Your Options?
Whether you choose to run an independent agency or join an existing team, you have to think about which products and services you want to provide. For example, you could choose to be highly specialized and buy an auto insurance company for sale. If ultra specialization starts to limit bottom-line profits, you can expand the product line.
Most carriers offer standard policies like home, auto, life, health, and others. This may be the best way to start. Provide coverage that everyone needs, and if/when you’re successful, branch out to motorcycle, RV, boat, renters, and even pet insurance.
Once you’ve shown high success in offering those primary and secondary products, consider complementary options like roadside assistance, windshield repair, paintless dent repair, and more. Get creative and maybe you’ll break new ground in the industry. Pioneering innovation can only lead to increased levels of success.
3. Secure Financing
Choose between an independent agency or a franchise business model that works for you. Then, research your options for policy offerings, and figure out how you will pay for the initial investment. Don’t worry if you’re last name isn’t Bezos or Gates. You don’t need millions of dollars to get started. You don’t even need tens of thousands.
Like when buying a car or applying for a mortgage, you can opt for financing to pay some of the startup fees and even the maintenance costs. Additionally, suppose you need an influx of capital to purchase new technology or expand your operations. In that case, most financial institutions are more than happy to lend money to a hard-working, profitable entrepreneur. After all, processing loans is the primary way banks make money.
4. Site Selection
You’ve already read some purposeful tips about which business model to choose, your options for products and services, and how to pay for startup and maintenance costs. However, one of the most valuable tips we can provide is where to buy one of the insurance companies for sale.
Granted, a lot of work is done online today. Site selection isn’t quite as important as it used to be in this industry, because customers no longer need to physically show up at your office to sign paperwork. They can do most of it online. Still, you want to ensure the site you choose gets enough traffic around it to keep your brand name at the top of the lists for prospective customers.
If you choose to start an independent agency, you must thoroughly analyze every possible location. When you go the franchise route, most existing providers will help you choose the perfect selection. Once again, a franchisor will provide guidance and support to ensure your success from launch day to your tenth anniversary and beyond.
5. Prepare for Launch
Cut the ribbon, open the doors, and let the crowds of rabid followers flood your office space…okay, launch day won’t look quite like that. Chances are, you won’t be in the Guinness World Book of Records for having the most successful launch day of all time. Although, you never know.
If you market your new business in a way that appeals to prospects, offers launch day promotions, and provides elite customer service from day one, you will give yourself every chance to have a successful grand opening and long-term operations.
Is it time to put these five great tips into action?
If you’re looking to join the #1 team in the insurance franchise industry, contact Freeway Franchise at 1-877-822-3024 or fill out our quick online form. Get started on finding a franchise for sale in your area today and take the first step toward becoming an entrepreneur!