Starting an insurance agency involves the same processes as starting a regular business. You still have to file that business like any other business. Meaning you still need to incorporate, or organize an LLC. You need to get yourself a federal tax-id number, and open a business checking account. You can most likely work out of your home office at the start. So the start up fees is low. The biggest expense when you are first getting starting is getting E&O Coverage. (Errors and Omissions) So you can protect yourself from accidentals while selling insurance. You will also need to get other forms of Liability coverages. And if you have employees, you need to file the proper paperwork for workers compensation. Also make sure you already have a license from your state. This shouldn’t be a problem if you are already an independent agent. Checkout Ieuter Insurance Group – Midland Auto Insurance.
One of the trickiest steps at the start is getting insurance carriers. You can use relationships you already have as an independent agent. Or you can just go through the list of insurance companies and build new relationships. Once you set up your business (due diligence) and have your carriers in place (offers) you next have to worry about the marketing and getting sales. You could market your business at local business groups in your area, or online, using direct response style marketing.
Keeping a relationship with your clientele, and getting referrals is where you will get your money from. You have to develop a unique relationship and have a unique business approach to differentiate yourself from your competition. This could be offering optimal service. It could be by making house visits. You also might want to consider having an insurance niche that you do. What if you only offer business insurance, or personal life insurance. Etc. That way you can stand out in your marketplace.