Are you looking for an insurance agency business for sale? If it’s your first time doing so, we know this can be an overwhelming experience. Before you decide to buy an existing insurance business, you should ask yourself a couple of questions.
Questions to Ask Yourself Before Buying an Insurance Agency
Why Am I Purchasing an Insurance Agency?
Aside from making a huge financial investment, buying an insurance agency also means deciding to commit to the community where you’re investing. While you can easily transfer your skills and knowledge of sales and customer relations, taking ownership of a business presents its own set of requirements.
This means that owning an insurance agency is an entirely different ballgame than being one of its employees. It’s going to be even more challenging if you’re planning to expand your business and increase the number of employees. Needless to say, your reasons for buying an insurance agency business should be crystal clear to you.
Do I Have the Financial Resources?
Developing a solid base of clients can take some time. Since insurance is a type of business that has to be built on a steady stream of revenue, you’ll have to work hard to build the groundwork. Taking over a business comes with a cost, but you have to make sure that you have the financial resources to sustain your business. Keep in mind that buyers need about 20-25% of a potential purchase in cash to keep the agency running.
What Type of Transaction Would I Want to Do?
Figure out if you’d want to buy or lease your place of business and its assets or if you’re just interested in purchasing somebody’s book of business. To demonstrate your ability to buy an insurance agency, you’ll have to determine how you’d like to purchase it and make sure that your financial case is well-prepared.
Looking for An Insurance Agency Business for Sale?
The professionals at Energia Consulting Partners, LLC would love to assist you with your agency’s acquisition. You can count on us to connect you with the right insurance agency seller. So, get in touch with us today to schedule your appointment!