Independent Agency Start Up Costs

[AgencyEquity]

Start up costs for an independent agency should be planned and budgeted for, if a prospective agency owner is not properly funded, it can cause the failure of the agency due to a lack operating funds it will take to open its door and keep it running for the first few years. Here is a list of most start up costs that will be needed to open:

 Agency Management System
 Insurance, including E&O, Package, Workers Comp and Bond
 Rent Security Deposit and First Month Rent
 Cluster Initiation Fee and first month payment
 Office Computers and Printers
 Office Furniture
 License costs, including Insurance Agency License and any required business licenses
 Legal cost if you plan on setting up an Partnership, LLC, or Corporation

[slenard]

Agency Equity,

You are something else. Besides the obvious advertising as you are posting all over the place (more than just IJ) you are not even doing a very good job.

Most of the costs you list herein are so obvious it hurts. If an agent needs a consultant to figure out that they will need first month's rent and deposit, well, they shouldn't be considering the venture. Forget about failing down the road if you can't get past most of these tick marks.

What about staffing, advertising, taxes, consultant fees maybe(?), E&O deductibles, schmoozing costs, just to name a few off the tip of my non-consultant tongue. Judging from your inclusion of a "Cluster Initiation Fee", I suspect that you are more of a salesman for a Cluster group and other services, more than a true consultant.

But, I could be wrong.

What I'm not wrong about is your need to do a better, more professional job if you are going to sling your posts all over the internet in hopes of inspiring confidence. As of now, you're failing with this viewer, and I'll bet many others feel the same.

[AgencyEquity]

Agency Equity,

You are something else. Besides the obvious advertising as you are posting all over the place (more than just IJ) you are not even doing a very good job.

Most of the costs you list herein are so obvious it hurts. If an agent needs a consultant to figure out that they will need first month's rent and deposit, well, they shouldn't be considering the venture. Forget about failing down the road if you can't get past most of these tick marks.

What about staffing, advertising, taxes, consultant fees maybe(?), E&O deductibles, schmoozing costs, just to name a few off the tip of my non-consultant tongue. Judging from your inclusion of a "Cluster Initiation Fee", I suspect that you are more of a salesman for a Cluster group and other services, more than a true consultant.

But, I could be wrong.

What I'm not wrong about is your need to do a better, more professional job if you are going to sling your posts all over the internet in hopes of inspiring confidence. As of now, you're failing with this viewer, and I'll bet many others feel the same.

Your feedback is important to me and I thank you for your input. You state:

“What about staffing, advertising, taxes, consultant fees maybe(?), E&O deductibles, schmoozing costs, just to name a few off the tip of my non-consultant tongue.”

These are actually ongoing expenses, not initial start up costs, though it can be argued that there will be additional advertising costs at startup. I do not represent any organization, I provide impartial consulting services to those who are looking to start an independent agency. I don’t advocate any one product or service, each individual is different and will probably be setting up different types of agencies, my consulting services are customized towards the individual and their given situation. You bring up some good questions and I encourage you to bring up more issues as this is a good topic of conversation. Forums exist so people can discuss the issues, I had no intention of posting with hopes of not getting a response, so I do greatly appreciate your response.