Making the decision to launch your own agency is exciting—and a little daunting. It’s a move that comes with independence, growth potential, and the ability to build something that reflects your own values and vision. But like any important journey, success starts with laying the right groundwork.
New agency owners often focus first on the big picture—finding clients and generating revenue. While those goals are essential, the choices you make in the earliest stages of building your business can set the tone for years to come. Taking time to think through key areas of your operation will help create a foundation that supports growth and minimizes roadblocks.
Choosing the Right Business Structure
Every agency begins with a name and a legal identity. Will your agency operate as a sole proprietorship, an LLC, or a corporation? Should you file for a “doing business as” (DBA) name?
These decisions have implications for liability, taxes, and how clients and carriers perceive your business. Requirements also vary by state, so this is one area where legal and tax guidance is essential. What’s important is to approach the process thoughtfully—taking time to choose the structure that matches your short- and long-term goals.
In addition to setting up the business legally, new agencies often must submit their intended name to the state department of insurance for approval. Having a few name options ready can help streamline the process.
Where and How You’ll Operate
Another important early decision is where—and how—you’ll run your agency. Some agency owners choose to establish a retail office, while others work from a home office or take a fully virtual approach.
Each option carries different considerations, from regulatory and licensing requirements to client experience. For example, some states may have rules tied to physical locations, and certain carriers may require or prefer a business address. Virtual agencies, meanwhile, may need to be especially intentional about how they build local visibility and accessibility.
There’s no single right approach. The key is selecting the model that aligns with your market, your goals, and your resources.
Market Access and Carrier Relationships
Before you can start writing business, you’ll need to determine how you will access markets. For many independent agencies, this involves building relationships with carriers directly or partnering with an organization that offers access to a wider range of markets.
New agencies can face challenges in securing direct appointments right away, so exploring options such as market access programs or joining a network can provide flexibility and allow you to meet client needs from day one.
It’s not just about access, though—it’s about fit. Look for carrier partners whose appetite and service models align with the type of business you expect to write.
Building the Right Technology and Safeguards
Even the smallest agencies today rely on technology to stay organized, serve clients, and remain competitive. Decisions made early on—about agency management systems, email platforms, customer relationship management (CRM) tools, and marketing automation—can make day-to-day operations more efficient and scalable.
Not every system needs to be in place on day one. But it’s important to have a plan. Choosing flexible, widely supported solutions can make it easier to add capabilities as your agency grows.
As you build your technology stack, don’t overlook security. State regulations and carrier agreements may require certain protections, such as cybersecurity safeguards or carrying cyber liability insurance. Protecting client data is more than good business practice—it may be a requirement.
Establishing Financial Readiness
Starting an agency requires investment. While overhead may be lower than a traditional retail business, expenses like licensing, technology, E&O insurance, and marketing add up quickly.
In addition, revenue may not flow immediately. Commissions often lag behind new business production. Having a clear view of your operating expenses—and a plan to cover them through your launch phase—can reduce financial stress and allow you to focus on building relationships and writing business.
Planning for Growth from Day One
While it’s tempting to focus entirely on getting the agency off the ground, it’s wise to keep long-term goals in view. What do you want the agency to become? Who will you serve? On what lines of business will you focus?
Answering these questions early can help guide decisions about branding, staffing, marketing, and technology investments. It also helps ensure that the foundational choices you make today will continue to support your agency as it grows and evolves.
Final Thought
Launching your own agency opens the door to tremendous opportunity—but it also requires careful planning. While no two agencies are alike, agency owners who take the time to establish a thoughtful foundation are better positioned to overcome challenges, seize opportunities, and create the business they envision.
Taking stock of these key areas early on can help you move forward with confidence and clarity as you begin the journey to independent agency ownership.