Becoming an owner of a successful insurance brokerage can be a long and exhausting process, but it is definitely worth it. You will get to set your own schedule and have a huge impact on your work environment, among other things.
If you want to start a life insurance brokerage, you will need to do quite a few things. For starters, you will have to create a business plan and determine what your budget is. Second, you will need to create a marketing strategy, figure out what your pricing is going to be, and come up with a catchy and memorable name for your business.
Next, it is important that you form a legal entity, register for taxes, obtain necessary permits and licenses, and open a business bank account. Last but not least, you need to create an appealing and mobile-friendly website for your business.
Want to learn more about the things listed here? If so, keep reading! In this article, you will find a short guide on how to start a life insurance brokerage.
Create a Business Plan
The first thing that you need to do is to create a business plan. A business plan is a document that explains what your business is about, how it will be run, what will be its purpose, and what your expectations are. In addition to that, it explains the competitive advantage of the business and its opportunities for growth, as well as potential risks and challenges.
Creating a business plan may take time, but it is guaranteed to help you out in the long run. Not only will you be able to see your goals clearly, but it will also help you understand your motivations and aspirations.
Determine Your Budget and Figure Out Your Pricing
Other than that, you will need to determine how much money you want to invest in your business. It is an important step, as it will help you figure out whether you can afford to start a life insurance brokerage. If you cannot afford to do that, you can always start working in an existing life insurance company and work your way up the corporate ladder.
After you have determined how much money you want to invest, it is time to think about pricing.
The insurance fees charged by various companies can vary significantly. Before you decide on a pricing model, do your research on the subject and figure out how much the average life insurance policy costs.
Come Up With an Appealing Name for Your Business
The next thing that you will need to do is create an appealing name for your insurance brokerage. Ideally, it should be catchy, memorable, and easy to type out. It is definitely an important step, as your company’s name will be the first thing that people see when viewing your posts and advertisements on different social media platforms.
Form a Legal Entity
You have to think about how you are going to form a legal entity. You have two options. You can either start your business as an LLC or as an S-Corporation. If you are not sure which one you want to choose, here are some things that you should think about!
S-Corporation. S-Corporation taxation is handled at the corporate level instead of being passed on to individual shareholders. Each shareholder receives a K-1 tax form instead of a 1099 tax form. If you form a single-member S-Corporation, you will not be able to claim salary income.
LLC. LLC taxation is handled at both the corporate level and at the individual level. Each shareholder receives their own individual K-1 tax form. If you form a single-member LLC, you will get to claim salary income.
Obtain Necessary Permits and Licenses
Doing business without proper permits and licenses can get your business into serious trouble with the law. Before you start doing any kind of business operations, make sure that you have all of the necessary permits and licenses.
For example, if you decide to carry liability insurance, make sure that your liability policies are valid. Also, if your company sells health insurance, make sure that your company has the necessary license to sell it. Otherwise, your company could get into legal trouble with the state authorities!
Open a Business Bank Account
After you have figured out your pricing, determined how much money you want to invest in your company, created an appealing name for your company, formed a legal entity, and obtained necessary permits and licenses, it is time to open a business bank account!
As soon as you are approved for a business bank account, you will be able to start accepting payments from your customers. The only thing that will be left for you to do is to start doing business!
Create an Appealing and Mobile-Friendly Website
No matter what kind of business you own, it is important that you create an appealing and mobile-friendly website for it. A website will help you attract new customers to your business, allow current customers to place orders, help you sell products online, and much more.
Therefore, making sure that your website looks good, is easy to use, and works well on different types of devices should be one of the main priorities on your list of things to do. If you need help creating a website, contact a professional web design company.
Starting a life insurance brokerage is not an easy task. However, if you follow the tips mentioned in this article, it should get much more manageable. It might take some time, but it is definitely worth the effort.
If you want to know more about the process of starting a life insurance brokerage, contact a business consultant. An experienced business consultant should be able to help you create a profitable and sustainable business that will earn you a lot of money in no time!