There’s a famous saying that goes something like this:...
An insurance franchise can be a lucrative business to buy. People will always need insurance, for host of things, and somebody must provide that insurance. Why not you?
Is it because you don’t know how an insurance franchise works? Don’t worry, Be The Boss is here to help! This article explains how insurance franchises work.
How Insurance Works
You pay somebody a set amount, usually a monthly premium, to insure your health, your car, your house, or any number of other things. Professional athletes sometimes insure parts of their body, singers insure their voices, art galleries insure paintings, and on and on. If any of these things become damaged or stolen, your insurance company will pay to have it (or you) repaired or reimburse you the value of the stolen item.
How Franchises Work
All businesses are looking to grow. Once you have mastered a single location and are making a good profit, the impulse is to open another location. Most people understand franchising best through the lens of food restaurants. They have really mastered the franchising game. You see, once you start to expand to two, three, or ten locations, it becomes unwieldy to manage all by yourself. By selling the rights to individual locations to franchisees, you can expand your business more quickly with less work for you. Franchising is efficient at allowing businesses to increase market shares.
It’s funny how most people understand insurance and franchises but are taken aback at the thought of an insurance franchise. Insurance franchises operate much like any other type of franchise. As the owner of an insurance franchise, you would be tasked with issuing as many policies to as many customers as possible within your catchment area. All good insurance franchises ensure that each franchisee has a protected territory so that different locations don’t eat into each other’s business.
Find Your Lane
As an insurance franchise owner, you could be issuing auto insurance, health insurance, home insurance, a combination of those, or any number of other types of insurance. It’s up to you to pick the franchise that you think offers the best types of insurance policies for the people in your area. You can choose to specialize or generalize. You can also try to find a niche market. Some insurance franchises find success by casting as wide a net as possible in order to get new customers while other insurance franchises find success by targeting specific demographics and converting a higher percentage of them into customers.
Insurance franchises often work closely with other types of businesses. There’s quite a bit of overlap between insurance franchises and restoration/construction franchises and maintenance service franchises. These types of businesses are often affected by the same factors and they often have the same customers.
Be The Boss
To learn more about insurance franchises and to get connected to some of the leading insurance franchises in your area, please get in touch with us.