SOLD – 40+ Year Established Local Insurance Agency
A well-established locally owned non-standard insurance company that has been operating and serving the area for over 40 years is now available for acquisition. This business is in a 1,250 SF retail strip center and is conveniently located next to the intersection of two busy roads surrounded by densely populated single-family homes and many local businesses. Competition is expected in this type of business but there are only a few in the immediate area as few agencies have closed down during and after the pandemic. The two main employees are bilingual and licensed and have been with the business for a long time and have built a solid relationship with the clients. There are many low to mid-income families in the surrounding area needing low-cost insurance, but this business has been long established and has a solid customer base with a high retention rate and revenue has been consistent and $200,000/year with commissions and fees combined. This independent insurance agency offers a variety and affordable auto, home, and commercial insurance and is affiliated with several small and major insurance company carriers to provide the least inexpensive and customize the policies to meet each client’s needs. Although no marketing efforts are in place currently except by word of mouth, proactive marketing in various methods is crucial to the further growth of this business in overall cash flow and acquisition of new customers from untapped areas of the city. There are many ways to accelerate the growth of this business by direct mail and flyers to surrounding homes and local businesses, and by being more active in a social media outlets. Most importantly, being more proactive and aggressive in retaining current policyholders by following up with them before the policy expires will greatly improve sustain and grow its overall revenue. Acquisition of a well-established insurance company that operated for over 40 years will give a buyer access to a stable and considerable cash flow business with a solid customer base that can be further expanded to its full potential by proactive marketing and owner involvement. This business is ideal for those who already own an insurance agency and is wanting to expand their business or a first-time buyer who can take advantage of its reputable name, established customer base, and employees who can run the business on their behalf.