From learning all you need to know about insurance broker bonds to how you can develop and leverage a brand, the right information makes all the difference. Here are five tips to get you that information and get you on the path to success.
1. Craft a great business plan
This may seem a bit obvious, but the critical word here is "great." The difference between a sloppily put together business plan and one done with care and vision is the difference between night and day. So where should you start?
The first step is always to think broadly about your business. Beyond simply considering the basics of budgeting, legal structure, and strategic vision, it's essential to think about distractions, delegation, opportunities, and your place in your niche.
Your business plan boils down to this, a marriage of qualitative and quantitative planning. Whether you use some specialty software or a classic structure, crafting a good plan is an essential first step. Skip it at your peril. Of course, beyond this, you'll need to go through the legal process of obtaining a license before your business really gets started.
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2. Plan out the licensing process
Again, beyond the obvious fact that going through the licensing process is legally necessary, having a full understanding of what this entails before you begin can help immensely in planning for it. Importantly, the same is true for acquiring your insurance broker bond.
Why is so much planning necessary? Because licensing is done at the state level. This means requirements and details of the process can vary enormously between states. So, even if you've had previous experience in the industry, or have heard about how the process worked for colleagues, neither is a guarantee that the process hasn't changed.
Most often, the state Department of Financial Services (or nearest equivalent) will have a site explaining the process. Still, it's best to call them early on to double check that you've understood all the steps. Here's one example from New York.
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3. Build a database of quality leads
Once you've got your business fully set up, you're going to need to have a strategy for acquiring leads (hopefully this was developed in your original business plan). The issue here is the sheer variety of options out there. How should you decide on a lead acquisition strategy?
Online databases of lead acquisition companies with reviews and forums like insuranceleadreviews.com are a great resource. Look for pricing information, the types of leads offered, customer service quality, and even the user-friendliness of the interface when considering a service. After all, social media referrals will only get you so far.
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4. Build your own brand – be present on LinkedIn, Twitter and other social media sites
Once you're really in business, you need to build a brand. Why? Put simply, once you've got a respected and known brand, it can do a lot of work for you. This is particularly true in the age of social media, when simply having a name in the industry can bring business in a way which is both personal and affordable.
So how should you engage with potential clients and the wider public to build a brand? The first thing to bear in mind is to focus on providing value. Try blogging on topics anyone who might require an insurance broker may find useful. Then, craft a social media strategy which allows you to promote those posts.
This may include working on LinkedIn, Twitter, Facebook, and other social media sites. Look at the advantages and disadvantages of each network before you decide where to allocate your resources. Once a potential customer has read your work and seen how knowledgeable and approachable you are, they're far more likely to come to you with their business.
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5. Build your professional network
This final tip should be fully integrated in your brand-building strategy. Beyond blogging and providing helpful advice online, you need to put your face out there by attending industry-related events.
This provides a one-two-punch effect, where potential clients and peers who may have encountered you online can meet you in person, reinforcing your image, brand and memorability. Frankly, you can't neglect either aspect. Like so many brand-building strategies, each step reinforces the other. Neglecting one does far more harm than may be initially evident.
What does it boil down to?
Ultimately, you can synthesize these five tips into a single mantra: Have a plan. With the wealth of online resources available at your fingertips, there's no reason to wait to develop a detailed plan of action for becoming the best possible insurance broker. So take it all in and get started today!
Eric Halsey is a historian by training and disposition who's been interested in U.S. small businesses since working at the House Committee on Small Business in 2006. Coming from a family with a history of working on industry policy, he has a particular interest in the Surety Bonding and Insurance and Professional Certification. He loves sharing his knowledge of the industry for JW Surety Bonds.
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