Starting your own insurance agency is a big move.
After years of hard work and honing your skills, you’re finally ready to be the boss. But that leap into entrepreneurship often comes with a surprising twist: the very passion and skill that made you great at selling insurance can get lost in the operational chaos of running your own business.
You can quickly find yourself caught up in the minutiae — figuring out a business name, deciding how to structure your agency, paying rent, setting up the internet, and handling countless other details you never had to worry about before.
“New agency owners come in with passion and wide-eyed enthusiasm,” says Mike Miller, State Director at Smart Choice and a seasoned mentor to those just starting out. “Now that they’re the boss, they often lose the ability to continue to harness and hone in on the skills [that] got them there in the first place.”
But that doesn’t have to be the case. With the right support system in place, you don’t have to navigate the chaos alone. By partnering with an agency network like Smart Choice, you can gain a guiding hand from industry veterans like Miller, along with the tools, resources, education, and market access to help you get back to doing what you do best: selling insurance and serving clients.
That said, there are some foundational steps you need to get right before you can fully take advantage of what an agency network has to offer. Early errors around business branding, communications and operations can stall your agency’s progress before it has even gotten off the ground.
Here are some of the most common mistakes new agency owners make — and what you should do instead.
1. Failing to See the Big Picture
It’s easy to get caught up in the excitement of launching your agency. In the rush to get everything going, many new agency owners forget to think about the bigger picture. One of the most overlooked questions is: What’s your endgame? Whether you plan to retire, sell, or pass on your agency, how you set things up today can have a big impact on your future.
“We’re excited about helping you set up your business, but at the end of the day, we don’t want to wait ten years down the road [to think about agency perpetuation],” says Miller. “One of the first things you need to think about when you start building your business is: What’s going to happen when you sell your business?”
You might not plan to exit for 10 or 20 years, but the decisions you make in the first month — from your business name and contact details to your management systems and marketing plan — can shape how smooth and profitable the transition will be.
Many new agency owners make early choices that feel easy in the moment. But those decisions don’t always scale — and they can be hard to sell. Miller’s advice is to build a business that can live without you. The more transferable your operation is, the more valuable it will be when it’s time to hand over the keys.
2. Naming Your Agency Without the Future in Mind
It may be tempting to name your agency after yourself. It feels personal, authentic, and like a reward for all the hard work you’ve put in to get to this point. But Miller warns against such a move, stating that it may undermine the value of your agency when you decide to sell.
“Have you thought about what that’s going to cost you in ‘blue sky’ when it comes time to sell that agency?” he says, using the example of selling the Mike Miller Agency. “[Agent X] is not going to want to answer the phone by saying: ‘Hi, thanks for calling the Mike Miller Agency. I’m Agent X, the owner. How can I help you?’”
Your name may have value to you, but not to a buyer. Miller suggests using a generic, brandable name, such as North Star Agency or Viking Insurance. This gives you more flexibility, boosts your brand equity, and makes it easier for the next owner to step in without confusion or customer disconnect.
3. Using Personal Contact Information
Shopping for a new cell phone plan and email domain may seem like unnecessary distractions when all you want to do is market your new agency and sell insurance, but Miller says this step is critically important.
The 45-year industry veteran urges new agency owners not to use a personal cell phone or email address for business purposes because this can cause headaches at the time of sale.
Miller explains: “Years down the road, you’ll have to hand over your entire contact list, and then […] tell all your friends: ‘By the way, I had to sell my cell phone number along with the agency, because that’s the only contact number I used.’”
Instead, he advises agency owners to set up a business line and to secure a domain name and professional email—such as mike@northstaragency.com—from day one. This makes your agency look professional, helps with business expansion and transition, and keeps your work and personal life separate.
4. Overlooking Social Media and SEO
Your early branding and marketing decisions can make or break your digital presence. Once you’ve nailed down your agency’s name, think about how you want to communicate with current and prospective clients. Consider how you want to market your business online —always keeping brand equity and longevity in mind.
Miller lists the questions he fields on a regular basis: “How do I harness social media? Where do I go to get my webpage set up? What should my logo look like? What should my email signature look like? How do I get onto the first page of Google?
“We all know that if you’re on page 3 of Google, you’re never going to get noticed,” he adds. “If you’re going to invest in social media, how do you do it to get the maximum penetration? You’re either all-in or all-out.”
Miller notes it is possible to “buy access” to social media and Google, meaning you can invest a small amount each month to get your website and content in front of the right audience, rather than relying only on organic reach. In today’s digital economy, controlling your online presence is essential, as that’s where many of your future clients will find you first.
5. Failing to Compartmentalize
As an agency owner, you will undoubtedly find yourself wearing multiple hats —strategist, accountant, salesperson, HR manager, IT specialist, and more. While this versatility can be a strength, it can also be a challenge if you’re not able to effectively compartmentalize your tasks.
When asked about the biggest distraction for new agency owners, Miller doesn’t hesitate: “Answering emails.”
As a new agency owner, it’s easy to get lost in your inbox — answering underwriters’ questions, following up with clients, and putting out fires — to the point where you lose track of your day and fall behind on other revenue-driving tasks. Adopting systems and processes to manage administrative work can help you stay focused on what truly matters: growing your business and serving your clients.