One of my goals this year was to get an office and as it stands now I'm still weighing the pros and cons.
Would it just be added expenses for the same amount of business? There are around 5 agency owners in my chamber of commerce - two are "franchise" owners; Nationwide and State Farm but the other 3 are just independent mainly writing P&C.
I'm the only one without an office. They all have retail, not office locations. What I mean is all have offices in plaza's - not on the 8th story of some office building.
That crap's expensive - just to rent an office in a complex is from $1,000 to $1,500 - easily. And that's a small office.
Store-front locations run $2,000 to $4,000 a month depending on size and location. Do they all know something I don't? I do a pretty decent job motivating myself to work so having an office just for the sake of having an office would be added expenses.
For me, going for an office would have to increase my business and that's where I'm stuck. If I had a store-front location would I actually get a bit of traffic? When I did local advertising would it pull better since people also notice my office?
One part of me can't see people coming in to sit down and buy health insurance. Yet these other agencies don't seem to have a problem with people coming in and sitting down.
I think it's unfortunately one of those things where it's impossible to predict the results until I simply do it. But for obvious reasons it would tough to pull the trigger one a one or two year lease and have the added expense if it didn't work.
Also, I have a love/hate relationship with working from home. Same days I'd really like to go to an office and being at home is depressive. Other days I'm happy as hell that I work from home and couldn't see going into an office that day.
If this is something I'm gonna do I'd want it done in the spring when I plan on being at a lot of local events.
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11 comments:
Perhaps you can share office and split rent with another business owner... I remember hearing some brokers are sharing the lease with other business owners...
Other option is to TEST market and open your own office independently for six months... test, test, and constantly test market your strategies to see if you are pulling in traffic with positive ROI...
Just having an office for the sake of an office to me is wasted money.
What I would want is a visible retail location probably in a plaza or strip with my "MARYLAND HEALTH PLANS" name on the sign.
DO NOT waste your money on a retail store front! I work w/ P&C agents in Chicago and suburbs and most will tell you the only new business "walk ins" they get are people who are uninsurable. State Farm, Nationwide, Allstate,etc...have store fronts because their contract requires them to have a space. If you need an office away from home, look for a "virtual office." Go to www.regus.com and check out what they offer. They have worldwide locations,short term leases and range in price from $175-$400 depending on what services you want and amount of time you will spend there.
I'd ask for a free desk in an existing insurance office that writes
P&C and refer that work to them and you do the health, maybe even get their health leads too.
Well not only from these few comments but others who have emailed me the resounding conclusion is a store front would not work.
I tend to agree. I think walk-in traffic would be low to maybe non-existent.
Maybe the big sign at a high-traffic retail location could work. I'd even try displaying a huge banner offering a free lunch ($8 gift cert or so) for trying to beat their existing insurance plan. (so you don't get uninsureds walking in).
An idea I've had for a while is buying a junk cargo van for a few hundreds - just has to run. Then slap a fantastic paint job on it touting quotes. Then drive it down to a very busy plaza or mall and park it in a spot so everyone driving by would see it.
Don't mean to sound like a pig but..if the retail spot has big windows and your "secretary's" primary responsibility was licking envelopes and retrieving the zzzignewski file in the bottom drawer, you might start pulling in a lot of healthy single males.
Yes, maybe we'd have a huge problem with pencils falling on the floor.
I would go with an office. 100% of my business is appointments in my office. I do not do house calls, neither does my C.P.A., or Attorney.
I want to separate myself from the NASE,guys who will only be in the business a few months. It is also easy to blow someone elses deal away when you tell the client you have an office for them to come to complete the application.
It just adds to your credibility.
Brian
Texas Broker
I think a CPA or attorney is more of a necessity. If you need a CPA or attorney then you'll have to go see one.
Problem is most people who "need" to have health insurance don't qualify.
My business is owners who are otherwise happy with their coverage, I'm simply saving them money.
I'm not sure if biz owners are actually going to stop a portion of their day to come see me.
The other issue is driving distance. People would only drive "X" miles to see me so marketing would have to be very local.
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