I've been reading through the forums here and have found lots of great information. I don't have any specific questions yet, but thought I'd explain my situation (it feels somewhat unique) and see if anybody has any good advice.
I live and work in Texas. My father owns an independent agency in TN. He is 66 and I am 36. I worked with him for a few months 5 years ago, but really have no experience with insurance.
Dad wants to retire, and I think it would be a good idea to buy his agency from him and move with my fiance to TN. Currently, I would have to move every few years to continue advancing my career, and my fiance has a somewhat specialized degree (digital and fine arts) that I feel would make it difficult for us to keep moving and have success finding good jobs in the same areas (to advance our careers). I have discussed this with both my fiance and my father and we have all decided that me purchasing his agency would allow me to grow my income over time without the need to move. It would also allow my fiance to work toward her goal of business ownership (in the art world).
His agency had commissions totaling $159K last year (before any bonus). He has 1 employee (licensed and salaried) and his total operating expenses came to around 70K. This leaves 90K in profit. He wants to self finance the purchase at around 20K per year (total of around 400K). This leaves me 70K as a starting figure. I currently make 55K so this sounds like a nice raise assuming the same commissions next year. The majority of his business is P&C.
Dad says he would like to work with me for a year or so (at least part time) to give me time to meet his clients with him around, and to help me learn the business. Also, my brother in law has an agency with the same company about 100 miles away, and has told me he will always be there for advice. The agency has an apartment attached that we are planning on turning into an office so he can be present without everyone who walks in the door asking for him instead of me (he can park behind the building and essentially hide in this office).
I am in a lease in TX until August 1st, so that is the date I am planning on moving to TN. My goal is to take the pre licensing course for P&C in March, and drive to Memphis as soon as possible after completing the coursework to take the exam at Pearsonvue. I will then wait until August to apply for the license (so I am a resident of TN).
OK, I feel like I'm starting to ramble... If anyone has any advice I'd love to hear from you. I'm a little anxious, but also very excited about all this!
I live and work in Texas. My father owns an independent agency in TN. He is 66 and I am 36. I worked with him for a few months 5 years ago, but really have no experience with insurance.
Dad wants to retire, and I think it would be a good idea to buy his agency from him and move with my fiance to TN. Currently, I would have to move every few years to continue advancing my career, and my fiance has a somewhat specialized degree (digital and fine arts) that I feel would make it difficult for us to keep moving and have success finding good jobs in the same areas (to advance our careers). I have discussed this with both my fiance and my father and we have all decided that me purchasing his agency would allow me to grow my income over time without the need to move. It would also allow my fiance to work toward her goal of business ownership (in the art world).
His agency had commissions totaling $159K last year (before any bonus). He has 1 employee (licensed and salaried) and his total operating expenses came to around 70K. This leaves 90K in profit. He wants to self finance the purchase at around 20K per year (total of around 400K). This leaves me 70K as a starting figure. I currently make 55K so this sounds like a nice raise assuming the same commissions next year. The majority of his business is P&C.
Dad says he would like to work with me for a year or so (at least part time) to give me time to meet his clients with him around, and to help me learn the business. Also, my brother in law has an agency with the same company about 100 miles away, and has told me he will always be there for advice. The agency has an apartment attached that we are planning on turning into an office so he can be present without everyone who walks in the door asking for him instead of me (he can park behind the building and essentially hide in this office).
I am in a lease in TX until August 1st, so that is the date I am planning on moving to TN. My goal is to take the pre licensing course for P&C in March, and drive to Memphis as soon as possible after completing the coursework to take the exam at Pearsonvue. I will then wait until August to apply for the license (so I am a resident of TN).
OK, I feel like I'm starting to ramble... If anyone has any advice I'd love to hear from you. I'm a little anxious, but also very excited about all this!