Summary of Success Business of Insurance Podcast

Episode 72 - If you’ve been listening to the last few episodes, we’ve been breaking down the steps you need to consider before starting a business. The concepts shared in these episodes are the foundation of building a successful business, no matter what kind.
Bottom line in business is You Don’t Know What You Don’t Know
You see, too many people jump into starting a business without doing any planning. Then they wonder why they aren’t finding success, as if business should just fall from the sky!
For some people even if they don’t plan, they might get lucky but the majority of people put in a lot of hard work, time, money and sweat equity to get their dream of owning their own business off the ground.
For many people it’s trial and error
It’s figuring out what to do as they run into trouble or finding answers when they least expect to. 
Even if you do extensive planning and research before you start your business, you will hit obstacles, but the more you are prepared with your foundation, the better chance of success you will have.
In this episode I want to recap the top 5 things I think you should focus on when planning to open your business. I’ve talked about these before, but I’m hoping that if they have their own episode, you’ll pay attention.
Quick recap
Marketing Plan
Focus
Business Team
Capital
Contracts
What’s your end game
Ideas To Consider
Have a plan. You can take courses on how to create a business plan, and your plan can be 30 pages or 3 pages. I’ve even heard of a one page business plan, but it’s hard to get a lot of details on one page!   There’s two things I think are essential in your plan.  The first is marketing. And I think this needs to be very well defined. Maybe you need to do a little market research to test your idea before you can create a solid marketing plan, but without this, you are doomed. I also think that when you define your marketing plan up front and look at the costs for each tactic you want to implement, then you can budget accordingly which is the se cond part of the plan that I think is essential. I’ll get back to that part but let's talk about marketing first.
The second is financial - For someone like me, this is the toughest part because while I understand math and some accounting, financial projections aren’t something I can easily wrap my head around. I see this part as start up costs - what you need to really open your doors, how much capital do you need to pay yourself or a staff for the first year while you are growing your business and how much reserve do you need in the event things don’t go as planned? Map this part out, give it to your banker friends and ask their opinions. This is essential and often overlooked by many startup entrepreneurs. It’s why first year entrepreneurs have such a high failure rate.
Focus on what you want to do - It’s ok to pivot down the road as many companies do, but if you are starting as an agency, an insurance company or a related insurance partner, be focused. Don’t try to be all things to all people. It is the greatest component of success for startups.
Put together  you business team. I’m not talking about staff but the other professionals that can guide you. Don’t hire your family member if they don’t specialize in what you need. For example, you need a business attorney, not the family law attorney. Get a good business accountant, and make friends with your banker, payroll, bookkeeper, human resources and even other insurance professionals that aren't doing what you hope to do.
This ties into the financial piece, but having enough capital to get you through is essential. This is really the hardest part. So many people want to start but don’t have the capital. They bootstrap it which can work but it would be so much easier if there was capital. If you are working as you are thinking about starting a business, get your loan while you are work