We polled your team and asked them to tell us the common questions and feedback they hear from prospects. Here are the top three concerns we found:

  1. A lack of finances to start the business.
  2. Concerns about replacing their current income.
  3. Fears about the timing of opening a franchise in a challenging market.

Could you first address prospective agency owners’ concerns about financing a new business? What would you and your team advise them to consider if they don’t have the capital but they have the drive to own their own business?

While having the drive to succeed is important, capital is required. We do not want anyone to start an agency and fail because they did not have enough saved to support themselves in their ramp-up. Instead, work toward your savings goals slowly, explore all your financial options, and avoid going into debt. Stay connected to your preferred franchisor through marketing emails, news updates, and one-on-one contact with your assigned sales agent until you can afford the start-up cost. Or, if you’re looking to switch jobs immediately and want to develop your skills to thrive in franchise ownership in the future, consider temporarily working for another Goosehead agency owner as a producer.

How would you address concern #2 about generating enough income to replace their current paycheck?

Starting a business is hard, but Goosehead provides the resources and model for you to follow. It is important to have enough liquid capital to be able to fund your lifestyle for 6-12 months while you ramp up. You have to be prepared to take a step back in year one so you can take a giant leap forward in years two and beyond. With your biggest earning potential on policy renewals, patience is key. Top performers and forward-looking agency owners who push through those first years are more likely to scale their business and take a hands-off ownership role.

Historically, Goosehead’s agency owners have had their best months in challenging markets. Is the concern about timing a launch during a hard market something you speak with prospects about often? How do you and your team respond to these concerns?

This is absolutely a common and valid concern we hear from many prospects; however, Goosehead is uniquely positioned to operate in hard and soft markets and still achieve all-time productivity highs. While we are experiencing some of the most significant product challenges in recent history, periods of higher price growth and underwriting cycles are very common for the industry. We have seen carriers take aggressive premium increases, but as rate increases begin to benefit their profitability, a more normalized product environment starts to emerge.

Despite current market challenges, insurance is a product that everyone who lives somewhere or drives something needs. During these times, we coach our agents to refine their sales skills, develop their referral partner network, and deliver an outstanding client experience wherever they can.

We often speak with prospects about timing. Timing won’t ever be perfect. If you can see yourself opening a new business within the next calendar year, it’s worth having a conversation with one of our sales representatives.

Thank you, Jacob, for helping address some of these common concerns. For my final question, what advice would you leave prospective agency owners who are on the fence about this opportunity?

Goosehead provides a blueprint for success, and you are franchising off of a proven model that has been replicated over and over again. My advice is to follow the model exactly. The original Goosehead franchise has built a book of business with more than $700 million in premium (the largest single personal lines booked in the space). You get the same support and resources that built that book, so your job is show up and execute.

The opinions expressed in this article are those of the Goosehead interviewee and do not necessarily reflect the views of Goosehead Insurance. Jacob Brown is speaking on his own behalf and not on behalf of Goosehead Insurance or its affiliates. Goosehead cannot and does not guarantee results.


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