Like other types of business ownership, being an independent insurance agency owner is not for those who are seeking the easiest path. However, the benefits of working independently can far outweigh the challenges you’ll face. Springtree Group’s experience facilitating agency mergers and acquisitions has given us a depth of insight into this topic, so let’s discuss some of the specific pros and cons of owning an independent insurance agency.
Pros
- Working Within Your Preferred Business Structure and Strategies
Your business plan will create the foundation for building your agency. Once you understand the market in your area, especially as it relates to your target niche, you will have immense freedom when setting up your business plan. For advice specific to your newly acquired agency, consult with the expert business consulting team at Springtree Group.
- Naming Your Own Company
Selecting a name for your agency can be an empowering and fun step in this process, but it doesn’t come without its challenges. As we live in the digital era, you’ll want to position yourself for success via the internet. Your agency’s name should be catchy yet easy to spell and pronounce. The name must be unique; if it’s used by another company, even one on the other side of the country, choose something more distinct.
- Being the Leader of a Self-Selected Team
Have you ever worked somewhere and found yourself longing for colleagues or employees who were a cut above? If so, you’ll immensely enjoy the process of curating your independent insurance agency’s team. Unless you plan to work alone, your agents will be the backbone of your agency.
- Meeting the Needs of Your Community
Each region has a unique community composed of individuals, families, and businesses with specific needs. Often, large corporate insurance companies cannot offer products tailor-made to meet the needs of all of the community members.
You will have the benefit of working directly with your community. By asking probing questions and responding to the gaps they perceive in available insurance offerings, you’ll be able to create policies that will bring in clients and retain their loyalty over time.
- Enjoying Unlimited Growth Potential
As an agent working for a large company, you would have a capped earning potential. However, by working independently, you’ll be able to use your insight and dedication to propel yourself forward, ensuring your income increases year by year.
- Solidifying Your Retirement
When you’re ready to retire, you will have the ability to plan and prepare your agency for eventual sale through a skilled brokerage like Springtree Group. While many workers have to postpone their retirement due to limited retirement funds, your agency’s sale income can provide amply for your retirement years.
Cons
- Increased Responsibility
To succeed, independent insurance agency owners must embrace the responsibilities inherent to their leadership position. Those who can’t tolerate the mental strain, flexibility, and persistence required often choose to list their agency for sale.
When we speak with an owner who misses the cut-and-dried nature of being someone else’s employee, we know that selling their agency is the best choice.
- Increased Work Hours
Especially in the first years of owning an independent insurance agency, you can expect to work a lot of hours. However, success in this business will require your willingness to make sacrifices and spend as much time as needed while remaining in high spirits to set the tone for your employees.
- Selling Your Agency is The Best Way Out
To leave a position as an insurance agent in the employ of a large company, you need only submit your notice and seek alternative employment. Conversely, as an agency owner, you’ll need to spend substantial time positioning your agency for a profitable sale before you can move on.
If you’re ready to begin preparing your agency for sale or want to list it for sale right away, contact Springtree Group. Our in-house financing options and buyer vetting process ensure that the buyers we connect with will be funded and eager to purchase your agency.
