These days it seems like there are more insurance agencies than ever before. Why is this? What makes starting an insurance agency such a good business idea? We did some research, and found that it boiled down to these three things:
The main reason insurance agencies are great business ideas is due to the high demand for insurance. It’s 2017, and the cost of living has increased once more since this time last year. What does this mean? It means things like houses are now more expensive than they once more. As such, the need to insure a house becomes even more justified. Likewise, consumers are now buying more things than ever before. Every man, woman, and child seem to have a smartphone, with a large proportion of people adding a tablet, laptop, and expensive TV into the mix too. Again, this means they have more things that need to be insured. Finally, we have one of the biggest things people need insurance for; healthcare. With Donald Trump as president, Obamacare is being thrown out, and there’s seemingly no backup plan for affordable healthcare. As such, people are now desperate for cheap health insurance, meaning the demand is higher than it’s probably ever been before.
The thing with an insurance agency is that you need significant funds to get started. The actual setting up of the business is fairly straightforward and doesn’t cost too much. However, when you’re offering insurance to people, this means you need money to cover any potential losses they suffer – hence the need for significant startup funds. Thankfully, there are loads of funding options available via specific insurance loans from banks or companies like Springtree Group. Then, you have all the more conventional funding options too like a crowdfunding source or angel investor. The point is, these businesses are very easy to finance and therefore easy to set up. There are so many other business ideas out there that are difficult to fund and tricky to get started. So, it’s smart to opt for something that’s easy to set in motion.
One of the hardest parts of starting a business is going through the motions of finding your target market. Ideally, you want to find a niche group of people to market your business towards. With an insurance agency, your niche is already waiting for you, without you having to do any research at all. It all boils down to what your area of expertise will be in, essentially, what insurance are you offering? Offer car insurance and your target market is anyone with a car, offer phone insurance and your target market is anyone with a phone. You don’t have to go out and spend hours researching who the ideal market for your service is, as it’s clear from the beginning. As a result, you have a clear target market that’s easy for you to market your business towards.
When you look at these three reasons, it’s clear that an insurance agency is a brilliant business idea. Who knows, if you’re looking to start a company this year, it could be right for you.