 
By Janet Arrowood
So you’re thinking you want to set up your own practice. Whether you continue as a career agent or become an independent advisor, here are three key considerations:
- Have a plan before you make a move.
- Become a specialist and an expert.
- Follow compliance and licensing requirements to the letter.
Your business plan
You need a number of different plans before you break away from your current office or employment arrangements. You need a business plan, a relocation plan, and a plan for getting the training and resources you will need. Your business plan is the heart of the matter. Starting a business without a business plan is much like starting on a drive through Europe without a roadmap—essentially crazy. How will you know where you are going and whether you are on the right path without a plan?
Business plans address several key areas:
- What your business is and is not.
- Who/what your market is and is not.
- How you will get start-up funding.
- What your income projections and sources will be.
- Where you will locate and why (analysis of the competition).
- How you will market your services.
Business plans are not just for businesses looking to raise capital; they are for business owners who want to succeed and grow. They can contain lots of information or be just a few pages (maybe an outline) to help you focus. For examples, visit the Small Business Administration website at www.sba.gov. It is also worth spending time at your local chamber of commerce and Small Business Development Centers (an SBA program that provides management assistance to small-business owners). You can also check out the SBA’s SCORE program (www.score.org), a national network of volunteers who are experienced entrepreneurs, managers and executives who provide advice for small businesses free of charge.
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Business plans are not just for businesses looking to raise capital; they are for business owners who want to succeed and grow.
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The logistics
Here are some suggestions are getting yourself up and running:
1. Choose your office location with care. If you will have foot traffic, make sure you have free parking. Ensure the location can support the telecommunications you’ll need: high-speed internet, multiple phone lines, voice mail, cellular connectivity, etc. The best solution for the near-term may be an “executive suite” or a home office.
2. Hire good advisors. If you don’t have a business attorney and a tax advisor, now is the time to start the search. Remember, the doctor who treats himself has a fool for a patient. Unless you are an attorney and CPA, hire a professional. After all, that’s what you expect your clients to do—hire you!
3. Consider your business form: S corporation, LLC, sole proprietor, etc. This is where the opinions of an accountant and attorney are essential. Have the entity paperwork drawn up by an attorney, and have a tax professional handle your taxes, books and other filings. Your time is valuable; it should be spent with clients.
4. Look for discount furniture resellers. New stuff is too expensive, so check out office furniture liquidators. Consider leasing expensive items like copiers and computer systems.
5. Secure your records. Find a place to store your paper and electronic (back-up) records off-site. This service should also be able to shred documents for you (at your office) if you don’t have a shredder.
6. Evaluate and choose the appropriate software and hardware. Insurance companies and your broker-dealer can be great resources in this process. Many times they will supply much of the software you will need. Make sure you have a client and prospect-tracking system and a back-office system.
7. Establish your corporate identity. Don’t go overboard with branding—have a logo, cards and stationery, but be judicious with other branded items (pens, magnets, brochures) since they are often throwaways.
8. Affiliate wisely. Choose the right companies for the products and services you plan to offer, if you are not going to be a career agent. And get the right insurance in place for yourself. That means: (continued …)
Part 1 | 2
June 2005 Service With Style
A Lifestyle Decision
Keep It REAL
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