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RE: interesting. what do you have budgeted for office rent?
Posted on: September 14, 2016 at 11:02:46 CT
Joeboo MU
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Furnishing is covered, my father is giving me all of his office furniture (enough furniture for 3 people, 3 desks, 3 book cases, 3 cradenzas(hi Reino), 3 chairs, a ****LOAD of file cabinets, etc. I have it all already, I'd just have to move it if I move.
As far as rent goes, with my projected first year sales, I really can't afford to go over 2000 per month in rent & utilities. 1500 or under would be much, much more comfortable.
Where I am currently at, I would actually be a little under 1000, it's REALLY cheap. Going to Lees Summit on my own would push me really close to my 2000 limit, if not slightly over. Lees Summit tends to run $15 per square foot minimum for decent office space. So a 1200 square foot office(about the smallest you'll find, short of subletting from an existing office), is going to run $18,000 per year, or $1500 per month just in rent. Tack on utilities(electric, phone, internet) and you're easily pushing 2 grand at that point, which is a little uncomfortable for me in year 1.
The guys I was going to partner with were going to charge me $500 per month to rent from them, plus my share of utilities (another $200ish per month), so it would be a very cheap option, which is great in year 1.
In talking to other agents that left my current company to move to this brokerage company(these 2 guys, and several others in the KC area) I can probably expect about $400,000 in written premium my first year, which at an average commission rate of ~12% is an income of about $48,000. Of course year two, all of that renews (at probably a 5-10% policy shrinkage rate) and then I'll write that much new business again. So year two I'm looking at probably $43,000 in renewals(lose 10% of policies) and another $48,000 in commission. Year 2 is when I'll have to hire a secratary, the amount of service work at that point will be too much for me to handle alone. So that's ~$30,000 per year out of pocket by probably mid-year.
That sales pace will last about 3 years as I re-write our current customers.
Year 1 and 2 will be lean, I'll probably be lucky to take home $20,000-$30,000 each of those years(depending on expenses), but then year 3(once I have a secretary hired in year 2) should push me well up over $50,000, and it should grow from there.
I plan on being up around $70,000-$80,000 by year 5, and 6-figures by year 10.
On average, the agents I've talked to have re-captured 75% of their book of business within 3 years, and then that well has dried up at that point and it's time to move on to focusing on new business, marketing, etc. But my current book will keep me pretty solidly busy for about 3 years
Edited by Joeboo at 11:20:53 on 09/14/16
As far as rent goes, with my projected first year sales, I really can't afford to go over 2000 per month in rent & utilities. 1500 or under would be much, much more comfortable.
Where I am currently at, I would actually be a little under 1000, it's REALLY cheap. Going to Lees Summit on my own would push me really close to my 2000 limit, if not slightly over. Lees Summit tends to run $15 per square foot minimum for decent office space. So a 1200 square foot office(about the smallest you'll find, short of subletting from an existing office), is going to run $18,000 per year, or $1500 per month just in rent. Tack on utilities(electric, phone, internet) and you're easily pushing 2 grand at that point, which is a little uncomfortable for me in year 1.
The guys I was going to partner with were going to charge me $500 per month to rent from them, plus my share of utilities (another $200ish per month), so it would be a very cheap option, which is great in year 1.
In talking to other agents that left my current company to move to this brokerage company(these 2 guys, and several others in the KC area) I can probably expect about $400,000 in written premium my first year, which at an average commission rate of ~12% is an income of about $48,000. Of course year two, all of that renews (at probably a 5-10% policy shrinkage rate) and then I'll write that much new business again. So year two I'm looking at probably $43,000 in renewals(lose 10% of policies) and another $48,000 in commission. Year 2 is when I'll have to hire a secratary, the amount of service work at that point will be too much for me to handle alone. So that's ~$30,000 per year out of pocket by probably mid-year.
That sales pace will last about 3 years as I re-write our current customers.
Year 1 and 2 will be lean, I'll probably be lucky to take home $20,000-$30,000 each of those years(depending on expenses), but then year 3(once I have a secretary hired in year 2) should push me well up over $50,000, and it should grow from there.
I plan on being up around $70,000-$80,000 by year 5, and 6-figures by year 10.
On average, the agents I've talked to have re-captured 75% of their book of business within 3 years, and then that well has dried up at that point and it's time to move on to focusing on new business, marketing, etc. But my current book will keep me pretty solidly busy for about 3 years
Edited by Joeboo at 11:20:53 on 09/14/16
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RE: interesting. what do you have budgeted for office rent? - Joeboo MU - 9/14 11:02:46