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Starting an Agency

10 Steps to an Independent Agency

Starting an independent insurance agency can seem like a daunting task.  Where do I begin? How do I get licensed, find insurance companies to represent, open an office, and hire people?  If you are reading this, it means you are considering embarking on this journey. While there are many challenges that will face you there are also many rewards that will await you, such as the ability to call your own shots, a healthy return on investment in the form of owner’s equity and the satisfaction of being in a business that protects people and their valuables. 

We hope that you will use the following ten steps to assist you in your journey to opening your own Independent Insurance Agency.

STEP 1: THE GROUNDWORK

How to Get Started 

  • Establish a realistic timeline  
  • Obtain qualified legal advice
  • Find out what is required to open a business in Arkansas

    STEP 2: THE BUSINESS PLAN

    Five Things Every Business Plan Should Address

    • People
    • The Opportunity
    • The Business Environment
    • The Risks 
    • The Numbers

    STEP 3: LEGAL CRITERIA AND E&O

    Licensing, Registration, Tax ID, etc. 

    • Meet Legal Criteria
    • Obtain Licenses 
    • Choose an Entity
    • Obtain IRS ID
    • Apply for E&O

    STEP 4: ACCESS TO INSURANCE MARKETS

    Secure Direct Appointments and Indirect Markets

    • Secure Market Appointments
    • Direct Appointments
    • Big I Markets
    • Market Aggregators 

    STEP 5: AGENCY MANAGEMENT SYSTEM

    Framework for the Necessary Business Processes 

    • Choosing an Agency Management System

    STEP 6: Workflow Procedures

    Develop a written procedures manual

    • Establish Workflow Processes and Loss Control Procedures

    STEP 7: Additional TRAINING AND CEontinuing education

    Technical and Management

    • Obtain Additional Training - Technical, Management, and Industry

    STEP 8: RECRUITING THE RIGHT STAFF

    Find Reliable Staff

    STEP 9: Professional Relationships

    You may be an Independent Agent, but you are not alone!

    • Join the Big I Arkansas

    STEP 10: networking

    Developing the Relationships YOU Need to be Successful

    • Get Involved in Your Local Community
    • Directory of Arkansas Chamber of Commerce
    • Use the Internet and Social Media to Enhance Youg Agency's Visibility to Others
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