Start Building Your Financial Ark Part II

Benjamin Franklin once said, Key Thought #1: "If a man empties his purse into his head, no man can take it away from him. An investment in knowledge always pay the best interest!" James Rohn continues with Key Thought #2: "The two major reasons for knowing is to (a) keep from getting hurt: ignorance is not bliss and (b) to benefit: like happiness, prosperity and wealth."

My financial education began sometimes after 9/11 in 2001 which led me to 'Rich Dad, Poor Dad' by Robert Kiyosaki. He made a lot of sense. I raised my financial I.Q. and became involved with real estate but didn't produce very much from any of that information. I let life get in the way.

Later I finally realized that it doesn't matter how smart you are or how much you know and information you've accumulated, if you don't take massive action on your information you'll be left out in the cold just like anybody else without the information.

In other words, imagine yourself standing on train tracks with a train bearing down on your position; you have little time to get out of the way because the train is out of control and doesn't care who's in the way. You're pointing at the train thinking, "Wow, there's a train coming I'd better get off these tracks!" If you don't take immediate action based on your current information it's all over for you.

Also, don't be looking at our government to help save you and your family from the train tracks, remember, if the government couldn't even save the city of New Orleans during hurricane Katrina, how in the world will it save an entire country when financial disaster comes barreling down towards it. Realize that it's going to be up to you to recognize the dangers because this bureaucracy will be too busy with their own interests and much more concerned with saving itself. Key Thought #3: Take massive and heavy action on a great idea. James Rohn

And so this economical crisis has become my mission, to inform as many people as possible, like a voice from the wilderness, advocating what the experts are doing in protecting their assets and wealth from loss. Since I'm not the financial expert or analyst on dying economies from massive inflation, I am simply the messenger, a 'Paul Revere' (Noah was the first).

The experts have based their findings on financial numbers, economical indicators and historical facts of past empires who have had similar events occurring causing them to fail and collapse. You see, massive inflation has happened many times before (since the Roman Empire) and the new one coming down the tracks is going to make the 1939 Stock Market Crash look like a Sunday walk in the park. Key Thought #4: Don't hand over motivation to someone else...reserve that job for yourself. James Rohn

Now you don't need to believe me or take my word for it and I'm not trying to scare you; I don't have time that. I'm just asking you to take some form of action on this information and see if it works for you; like trying on a new coat. If it's a fit, great; if not, then simply put it back and move on. Key Thought #5: Most people prefer to get their information from the 'horse's mouth' rather than from the horse's tail; it's less messy that way! Papa SKWE-G's Write Times

Recommendation #1: Start growing vegetable gardens; if you only have a back yard to use plow under your beautiful prize winning grass and plant your vegetables, you can't survive on grass.

Joseph, the interpreter of dreams (The Bible), told Pharaoh that his dreams meant seven years of plenty and prosperity then seven years of famine and drought. When Pharaoh put Joseph in charge of the seven years of plenty Egypt had enough surplus to sell to other countries during the seven years of famine.

Our seven years of plenty have already passed, deflation has started and gas and food prices are going up. Glenn Beck has been 'strongly suggesting' to start buying non-hybrid garden seeds and plant crisis gardens, as food insurance, should the economy go through a catastrophic meltdown.

That means you'll learn how to preserve and store your bounty throughout the non growing season. When people are starving fresh food could become more valuable than gold and silver as a barter item. When our government is stockpiling food, shouldn't we be doing the same?

Porter Stansberry states that, "If you live in an urban area, I recommend making sure you've got somewhere you can go as I firmly believe there could be riots, marches in the streets, bank runs, massive arrests, and periods of uncontrollable mayhem... I think there's a very good chance we'll see that in the next two years."

My grandparents, the Davis family, lived on a farm during the 'Dirty Thirties', the Great Depression, and grew most of their food. They had to work hard to keep the farm and survive but together they pulled through and overcame a great challenge. Key Thought #6: All values must be defended; family values, marriage values, religious values, economical values, conservative values. If not, all good will be attacked and taken. James Rohn

Recommendation #2: Open up a foreign bank account. The most aggravating part of this whole economy mess is that in the last two years the U.S. government has irresponsibly driven up the deficit from $200 billion to over $1.3 trillion dollars and are perpetuating this economical crisis with printing more fiat money.

Eventually they'll become even more desperate and implement more policies to legally steal more of our money to save themselves from running out of revenue; like nationalizing 401K and private retirement plans. Do you honestly believe our current government is looking out for our best interests?

A foreign bank account will keep your money safe and beyond the reach of a desperate bureaucracy. As of now it's perfectly legal to open an account and with less than $10,000 you do not have to report the assets; that's including all combined foreign accounts in your name. By the same deal individual members of your family could do the same thing in their separate accounts overseas and not report it. It's all legal, for now.

Since foreign banks are not allowed to advertise in the U.S., let me suggest to you to look into the possibilities with Caye (Key) Bank in Belize. I understand that it's a safer bank than most U.S. banks.

Key Thought #7: It's not important to like the setup, but it is important to become a student and learn the setup. James Rohn

Recommendation # 3: Buy Gold and Silver: When the U.S. dollar loses its status as the world's reserve currency, these precious metals are going to skyrocket beyond it current price. Gold may top $5000 or $6000 an oz, according to the experts, and silver may go as high as $187 an oz. Gold is now selling for just under $1,500 an oz and silver is selling just over $30 dollars an oz (12/31/2010). Personally, I'm buying as much silver as possible because it is believed that silver will serve a unique role during this currency crisis.

Holding bullion gold and silver (and other metals) in an overseas account is another private and secure way to keep assets out of the reach of a desperate government. It's not reportable, nor do they generate taxable income until you sell them. Don't try to store your bullion in an American bank because policies could be changed making it very hard to pull your assets out. The government could also make it illegal to own gold in America like they did 80 years ago.

An alternative is investing in Switzerland's Zürcher Kantonalbank (ZKB) exchange-traded gold fund. ZKB is the state-run bank in the Swiss province of Zurich. ZKB is the third-largest bank in Switzerland, and is an extraordinarily safe institution. You'll want to work with an experienced broker if you haven't purchased foreign stocks before. Key Thought #8: "I've made gallons of lemonade when life handed me lemons; Imagine what I made when I inherited a barnyard." Papa SKWE-G's Write Times

Recommedation #4: Buy a plot of land or farmland. As I've pointed out in my 1st recommendation food prices will become astronomical and more valuable than gold or silver. You could invest in the stock market for farmland stocks, buy or lease an actual farm or lease a plot of ground somewhere, 1 to 5 acres and preferably away from a metropolis and urban areas. I believe this action is prudent in order to seriously grow your own food and avoid starvation, soup kitchens or government food lines.

When you have your plot of ground or farm you should be ready and able to protect your garden like it's gold in Fort Knox. How to do that you'll need to figure that out for yourself just as long as you protect you and your property legally.

On the other hand if you know that America is going to be too hot for you to stay then why not buy some real estate overseas? This asset is perhaps the best way to have an offshore account because it's not reportable and if it generates no income then you pay no taxes. For years people have invested in foreign real estate and now have a portfolio worth millions in offshore accounts and far from the clutches of the American government.

The publications International Living and Live and Invest Overseas are two great resources for learning more about international real estate opportunities.

In addition, real estate can be made more liquid if you place it in a corporation or trust. This makes it easier to sell or transfer your assets. Key Thought #9: Man who says "It can't be done!" shouldn't be saying it to woman who is doing it!! Chinese Proverb

Recommendation #5: Create a family Trust. The right sort of "trust" offshore can protect assets and provide tax-advantaged income. Trusts can be complex structures but are similar to a company except they are legal entities and only hold securities and assets. They are useful in protecting wealth and by using certain life insurance bought and owned by these trusts can even create more wealth by creating a family 'bank' trust. You should speak to a lawyer to help you set this up. Key Thought #10: You may not be able to do all you find out, but you should find out all you can do. James Rohn

Recommendation #6: Bank on Yourself by Pamela Yellen: In 2007 I was introduced to this time-tested financial concept that lets you grow your money safely and predictably, even when stocks, real estate and other investments tumble.

The Bank On Yourself concept uses a whole life insurance policy that can beat the pants off your Wall Street and financial "gurus" such as Dave Ramsey and Suze Orman.

Research has shown that less than 1 in 1,000 advisors fully understands this is a type of policy and with a whole life policy, designed properly, you receive a pre-set and contractually guaranteed increase every year. Neither your principal nor your gains are lost when the stock or real estate markets tumble and the growth in this type of policy is both guaranteed and exponential, meaning it gets better every single year, simply because you stick with it. In other words, when you take out a loan with your family bank you must make sure your pay it back with interest. Even the government will be unable to take over and weasel their way into your bank.

Just think, now you don't have to die for your family to benefit from an insurance policy. You get to live and benefit from a life insurance policy that will pay dividends, while not guaranteed, but have been paid every single year for over 100 years, by some companies, including the Great Depression. Key Thought #11: Forget the debate, 'Is the glass half empty or half full?', it's wasting your time and energy. Fill the glass up 'til it runneth over' and live! Papa SKWE-G's Write Times

Recommendation #7: Creating New Wealth NOW: I know and understand that most of you live paycheck to paycheck and don't have extra sums of money laying around to buy land (let alone foreign land) or buy gold and silver plus store it in a Zurich vault. I just read that because of our 25% unemployment rate that some of you are enrolling into the military and the waiting list are near record levels. So I'm very much aware of what this economy is forcing people to do with what they do and don't have.

The following is what I would do if I had a little money and wanted to create new wealth now. Remember, you can either buy into theses ideas and take action, or you can say no thanks, put it back and move on. For those in the military and already wealthy you can do these things too.

(A) January, being the first of the year, 2011, I would start buying vegetable seeds for your crisis garden and start planning on where you want your garden to grow this coming spring. Work out the details of how big, what to plant, what's your source of irrigation, how to protect your crop, how to harvest it. If there's a surplus, will you sell it, barter it, preserve it for storage to eat come next winter? You'll need to plan how much seed should you save for the next planting season.

At some point as inflation starts growing and evolves into hyperinflation your money resources may dwindle and dry up. Your garden could be the only thing sustaining you and your family as long you have taken security and protective measures against the usual suspects, lack of irrigation, weather, animals, weeds and insects.

Your biggest threat will be desperate and hungry people who didn't listen or plan for an economical meltdown. BUT, they may have something you need in exchange for fresh food. That could be gold, silver (dollars will be worthless), property, a house or anything deemed an asset to you. If your garden expands and you need help then they may be more than willing to work for their food. Just be fair to both you.

Civility and being a good neighbor shouldn't be thrown out the window just because of desperate times. Economical stability will eventually return and you will be remembered one way or another; one of the few who saved others or the SOB who starved children. I think you get the picture. Key Thought #12: If you plant a cup of corn in the Spring, you could harvest a bushel in the Fall. James Rohn

(B) Next, I would talk to my family and find out together what the setup costs are for a legal family trust. Then compare that entity with a 'Bank on Yourself' whole life insurance policy (with dividends) and figure out which is best for you. Once you have either one of the ideas physically set up then start pooling your recourses and form an executive board to manage the family wealth. You will find out that, by pooling your resources together, your family trust or bank will be able to exponentially grow and position itself to buy gold, silver and land more effectively. More importantly you have created a MasterMind Group with a built in Advisory panel, your family (or friends). Key Thought #13:THE POWER OF THE MASTERMIND; form groups who want the same as you; to exchange ideas, lend moral support, become better at presentations; you'll have strength in numbers! Napoleon Hill's THINK AND GROW RICH

(C) This next idea is so important to understand it incorporates the previous two ideas and justifies Mr. Franklin's quote simply stated, "Invest in yourself for knowledge that will pay you the highest return." In this case, it's financial literacy.

From Part I, I stated that, "Over the next few year, $50 Trillion Dollars is going to transfer from the 'uninformed' to the 'well informed.' What you know about money will determine which side you'll be on." This process has already started and by the end of this year, 2011, we'll be seeing more evidence of a widening gap between the 'uninformed and the 'well informed'.

If you're going to be serious about creating wealth NOW, you and your mastermind group will need a plan of action to fully understand how to become financially educated in order to legally and completely protect your family's wealth from the financial scavengers of this world.

You will need a financial plan that will allow you to 'earn while you learn' and has already proven itself to work for others who carbon copied their energies, work ethics and plan of action after successful millionaires who did the same thing to get there. There is no re-inventing the wheel, just re-inventing you!

David Bach, author of #1 Best Seller, The Automatic Millionaire, has partnered with PRO University, an affiliate of Carbon Copy PRO, and has created and implemented a 5-year, 10-year and 15-year master plan to LIVE and FINISH RICH. He has also developed an ultra-exclusive master plan for total freedom. This is what I call building the 'Ultimate Financial Ark.'

When I became an Automatic Millionaire member I dedicated myself to a plan of action and catapulted myself into a wealth of financial knowledge; and SO CAN YOU! My mission is to spread the message all over the world, like a Paul Revere, "Hyperinflation is coming, hyperinflation is coming!" and warn as many people as possible of the coming economical meltdown; and SO CAN YOU. My mission can become your mission, but time is short and you need to position yourself as soon as possible. To access my information click on: www.MYONLINEBUSINESSINCOM.COM.

The journey ahead may be difficult and arduous; and until our economy gets back on track our country will need you, and others, with your pioneer spirit to become the stewards of the land, the keepers of the U.S. Constitution and the protectors of our borders.

You need to take heavy action because you and your family depends on it and because when a runaway train barrels over you the last thing you want to think or say, "Oh darn, I should have taken heavy action on my wealth plan.'' Key Thought #14: Humans are remarkable; they can turn nothing into something, weeds into gardens, pennies into fortunes and disasters into success. Reach down deep inside you and come up with those remarkable changes. James Rohn

Stephen P. Davis

When the Going Gets Tough - The Tough Start Looking For New Customers

At the moment the news seems to be full of nothing but doom and disaster, fire and famine, war and pestilence, death and destruction.

So it might seem insane to be talking about how to find new customers in these circumstances.

On the contrary, now is precisely the time when it is most important to be thinking about new business. For a start, during the bad times it may be essential to find new customers to replace existing customers who go to the wall. On a more positive note, the links one forges in the hard times tend to endure, and they will probably be the source of far greater profits when the good times return.

In many businesses, bad times produce as many, if not more, business opportunities as good.

If the newspapers are full of war and the threat of terrorism, now is the time to sell life insurance. For most people the chance of being killed in combat or by terrorists is negligible, but it is the fear of these remote possibilities that sells the insurance.

If there are pictures of tornados, floods, or hurricanes on the television, it is good time to be in building materials. The pictures of flattened wooden houses are poignant but also an advertisement for bricks. Again, the brick house would not stand up much better than the wooden one against a major hurricane, but it is the feeling of security that sells.

Even famine in the Third World is a business opportunity. It would be wrong to exploit the starving local people - who, in any case, do not have any money - but when the aid agencies move in, they and their employees will need all sorts of support on the ground.

At this point, there is an obvious question: why write about this instead of going out and doing it?

To this here is an equally obvious answer: even hardened entrepreneurs sometimes feel that there is something indecent about making money out of the suffering of others.

Yet surely it all depends on precisely how one does business.

Meeting a basic need is not in itself immoral. It is, on the contrary, essential that someone does. Indeed, it may be a positive moral good to provide food, shelter, water, healthcare and the like. No one in their right minds would suggest that those who provide these things should not be paid. If they were not, these products and services would be reduced to permanent subsistence level everywhere.

So the farmer who produces the food deserves to be paid. If he happens to be an enterprising and efficient farmer who produces more, and therefore lowers the price to the consumer, he deserves to be paid more.

However, if he reduces production or hoards food in order to drive prices up - which is actually government policy in many Western nations - he is a profiteer.

He is also a bad businessman. If the whole point of getting new customers in bad times is to make more out of them in good times, his exploitation will be remembered and others will make the profits he could have made in the longer term.

Guy Kingston produces and presents the Mind Your Own Business podcast, offering free business advice to entrepreneurs and business owners. As well as audio podcasts there are more articles like this, compelling videos and a must-read blog. All at http://www.myobpod.com or you can network and join in discussions on the MYOB Facebook group http://www.new.facebook.com/group.php?gid=12117784275

So, You Think You'd Like to Start Speaking Professionally? A 7-Step Guide to Starting Your Business

David, a 59 year old divisional vice president with one of the largest and most renowned financial service providers in the world, is working harder and longer hours than ever before in his career. He travels extensively, is heavily scheduled, and earns an annual salary over $500K.

David finds himself at what is most probably his professional peak. He is well invested, fully insured, able to fund college educations for his children and is in relatively good health, albeit stress-related minor health challenges.

Barely making time for his favorite pastime of golf, he longs for a way to share his expertise without the management responsibilities that come with his job. His company takes full advantage of his expertise and his natural talent to train others in the company. Occasionally, he's asked to speak to a professional association.

David and I spent some time talking at a gathering of friends. We discussed ideas in which he could utilize his knowledge base in new and stimulating ways without having to work for the firm including interviewing his favorite authors about their philosophies of success building practices and then producing a series of CDs based on those interviews. David left the gathering a little more confident that he could have another career path of speaking full time.

It does not matter if you're a top producer in a commissioned sales business such as insurance or real estate or if you're a corporate leader who's ready to challenge yourself beyond the bounds of your organization or you're an entrepreneur leading the field...

These SEVEN STEPS will help you think more seriously about making a transition to professional speaking:

1. Identify your core competencies. What are the things that you do that have taken you to the top of your profession either in your geographical area or in your organization nationwide? Write a list and make it as long as you can. You can edit it later.

2. Create a list of facts about yourself that have distinguished your expertise and brought recognition to you and your organization. As an example, here is a list of facts I gathered in 2005 about Mark Victor Hansen so that I could utilize those in securing more speaking engagements for him:

o Has addressed 3 million people in 38 countries since 1978

o Bestselling author of 3 books: Chicken Soup for the Soul, Power of Focus, One Minute Millionaire

o #1 bestselling living author of a non-fiction series

o Created billion dollar brand with Chicken Soup for the Soul

o Only author in 2003 with two bestselling books on BusinessWeek Best-Seller List at same time (One Minute Millionaire & The Power of Focus)

o USA TODAY (March 2004) named five Chicken Soup for the Soul titles among the top 100 books from the first ten years of the USA TODAY Bestselling books list.

o Famous author Harvey Mackay said, "If you only real one book this year, read The Power of Focus."

o Recipient of the Book of the Year Award by the American Booksellers Association - voted on by over 20,000 bookstores who nominate titles that are the "hidden treasures in the adult and children's book categories

o Recipient of the Horatio Alger Association of Distinguished Americans which honors American leaders who have succeeded in the face of adversity and who personify the virtues and principles inherent in the success stories written by nineteenth century American author Horatio Alger, Jr.

o Inducted into 2004 Sales & Marketing Executives International, Inc.'s Sales and Marketing Hall of Fame - The Ambassador of Free Enterprise award

o Named 1999 Humanitarian of the Year by the National Conference for Community and Justice (formerly the National Conference of Christians and Jews

o 2004 recipient of the Dove Award - Visionary Philanthropist for Youth Award by Covenant House California

3. Compose a list of the major turning points in your life. What experiences did you have that helped you form who you are today? What childhood experiences did you have that demonstrated your tenacity, your positive attitude, your ability to help others communicate more effectively, your ability to turn a negative experience into one that benefited you? Being able to tell stories about yourself, your childhood experiences, handling crises, overcoming obstacles - those are defining experiences to which you can refer in building your signature speech.

4. Write a unique selling proposition about yourself. Make it two sentences which say, in short, "I am... I do..."

When others ask what you do, avoid saying, "I'm a speaker." How uninteresting is that? Plus, their next question will be, "What do you speak about?"

Why not say..."I am a management expert for personal bankers. I am an equity specialist for organizations who seek staff development training to produce highly qualified individuals regarding ongoing reforms in the banking industry."

Now, there's an opening for building a relationship.

5. Identify your target market. What industry will most benefit from your time and talents? What organization, either a company or an association, boot camp or public rally with multiple speakers, would benefit from your expertise? When you read about current events in trade journals, magazines and newspapers, think about how your expertise could create solutions for those organizations. Beyond speaking to these organizations, you'll have a natural outlet for your products and services.

6. Collect third party endorsements. List the names of business professionals who believe in you and your expertise... those who are your champions in the field. This may be one sentence from an individual or an entire thank you letter from someone. These people will be the ones who can verify your talent and your ability to teach others what you know effectively. If you're a top producer in real estate, this may be your broker, the regional director in your company or a real estate professional who has used your sales strategies and increased their own production. The two primary reasons that organizations will begin to hire you are facts and third party endorsements. I have seen top producers have an additional significant income from speaking part time because they only had their personal production and third party endorsements to secure paid speaking engagements.

7. Formulate your signature speech. Imagine that you have 45 minutes to teach others what you know. What would be the most important elements to cover? What principles have served you over the years? Oprah Winfrey has special page in every O magazine entitled, What I Know for Sure. What do you know for sure?

Going through the process of answering these questions is fun and productive. It is the beginning after which Internet technology can maximize your outreach, attract and position you within your target market. You may be among the new breed of speakers that comes from passion and purpose for which professional speaking is a natural evolution.

Mary McKay
Speaker Marketing Specialist
Turnkey Marketing for Experts Who Speak
http://www.TurnkeySpeaker.com
Get immediate access to 2 FREE Insider
Reports, including 7 Ways to Get Paid
to Speak.
Mary McKay Productions, Inc.
Mary@TurnkeySpeaker.com
(949)429-6646

Start Your Own Medical Billing Service

An aging American population and changes to Medicare regulations in the early nineties have produced a booming medical billing industry. Medical practices simply can't cope under the strain of increasing paper work and client enquiries. If you are looking for a skilled work at home career with the potential to pay the bills and much more, the medical billing industry is for you.

(Please note this article is made up of mostly U.S specific details, that is not to say that the industry doesn't exist elsewhere in the world or that the general principles of starting this job don't apply)

What exactly does a medical billing service entail?

Medical practices outsource all of their billing responsibilities to private medical billing services. Your day to day activities could any of the following:

Preparation of insurance company claims, both electronic and hardcopy Maintaining a practice's patient database Invoicing patients, both electronic and hardcopy Collecting co-payments from patients Tracking overdue accounts Answering patient enquiries Submitting reports to practices i.e. number of patients, bottom line etc.
What is required to start a service - experience, qualifications?

The medical billing industry makes use of a complex and ever changing system of codes. If you don't have any experience in the industry, its time to take a course at your local college or through a recognized home study program. When enquiring about courses or doing research, remember that the course you are after might be under another name than medical billing. Purdue for instance runs a Medical Specialist course which includes a module on medical billing.

Beware of scams, anything that sounds too good to be true usually is. Experience or a qualification is always required to start a medical billing service - all services take time to grow and attract clients. Any companies that advertise "no experience required" or "guaranteed client list" are scams.

What your medical specialist course should include

Make sure the course you take includes at least the following basic elements.

Basic medical terminology The insurance claims process Processing forms National diagnostic and procedural system Training for medical billing software Methods to handle denied claims Soft collection techniques CPT codes

Don't necessarily choose the cheapest course option available. Doctors are very weary of who they hand control of their billing too. A qualification from an established and recognized institution will go along way to created trust and increasing the reputability of your service.

Getting your service off the ground

To start your service you'll first need to setup an office, the following will be required: a computer, high speed internet connection, printer, medical billing software and a CPT coding manual. Most of your work will be done online so a high speed internet connection and a good billing program are essential. Also consider spoiling yourself with an LCD monitor, your eyes will thank you later! Don't forget to compile a basic business plan before setting up your service. Good planning can often mean the difference between failure and success.

There are numerous software packages available on the Internet, expect to pay at least $500 for your software and around $3000 to $5000 for the total business setup, depending on the course you take and equipment you purchase. Search online forums and social network sites like Digg.com for honest consumer reviews before purchasing a software package, the number of unresolved forum posts or negative user reviews will give you a good idea of each programs usability and features.

Marketing your new service

To be successful in the industry you will need at least six medical practices in your employ - typical monthly fees range from $800 to $1,500 per client. The good news is you'll only need to market your services in the beginning, once you have a full roster of medical practices marketing is no longer required. (This lack of marketing expenditure later on is part of what makes this career very profitable).

Market your services initially through direct mailers to doctors, cold calling and networking in the medical billing community.

Final word

Budget for occasional and ongoing education - medical billing is constantly changing so its essential to stay current with changes in the industry. Be on the look out for seminars in your area.

Andrew Misplon is co-owner of The Work Pad - Work at Home Ideas, Tips and Advice, a feature packed work at home resource site including ideas, tips and advice. The Work Pad offers a free Personality Profiler and free Time Profiler to help work at home entrepreneurs achieve their potential. Every article is written by our in house team of entrepreneurs and work at home business people - unique, timely content is always guaranteed.

How to Start an Independent Insurance Brokerage Agency

Establishing an insurance agency business requires the same talents and dedications that any other business requires. Proper planning, persistence, and consistence are the essential elements for success in any venture. There are certain important factors that distinguish the insurance brokerage business from other business ventures.

Proper Licensing: To become an insurance broker you need to be licensed for the lines of business you intend to sell/ broker. For example, brokering life, health, property or casualty, or a combination of those requires state licensing. Check with the department of insurance of the state where you reside for the proper licensing/ bonding requirements. If you plan to be brokering insurance to clients in different states you need to obtain a license from those states as well.

If you intend to run the business as an incorporated business (very much recommended), you need to obtain the proper article of incorporation, and then apply for an insurance producer license for your new business entity. In the state of Illinois you can incorporate yourself online, and it can be done on expedited basis (overnight).

Now, after you, the individual producer, and your business entity are properly licensed with the state(s), you will need to find a location. You can start by looking around to share space with other professionals, such as accountants, real estate agents, travel agents, or lawyers. Sharing an office is good in the beginning because it saves you rent expense and because it exposes you to the traffic that you need. If your budget allows you to rent a separate space, choosing a busy mall is the best idea, especially if you will be focusing on auto insurance and business insurance. Heavy traffic is free advertisement.

At this point you will be able to sell insurance. The issue is what insurance to sell, which can be confusing. Many agents find it hard to focus on more than 1 or 2 lines of insurance. Selling life insurance requires great deal of salesmanship, however the commission is the greatest. Selling health insurance still requires salesmanship, average demand, the commission is good and so is the renewal. Business insurance is easier to sell (most businesses must have insurance), the commission is good, but it requires experienced customer services. Selling auto/ home insurance is perhaps the easiest, the commission is the not as great, and it requires extensive customer services.

Selling insurance as an independent broker can be done through different ways: First you might seek appointment directly with insurance companies. It is very easy to get appointment for the life and health insurance lines, but when it comes to auto and commercial insurance, appointment with insurers get little more difficult. Most property and casualty insurers require experience, and Errors and Omission coverage for your agency. Errors and omission (E&O) for life and health agents is easy and inexpensive to obtain, but when it comes to errors and omission for property and casualty agents things become harder. Experience, education, and character are very important when obtaining errors and omission coverage, which is certainly much more expensive than E&O coverage for life and health brokers.

Most companies, especially the reputable ones, will stay away from agents without experience. That is why you should target less known regional or local companies for appointment. Also, you can approach a local broker who will accept to place your business under their contract and share with you the commission (you get the experience and the access to the insurance carriers.) Many larger brokers and MGAs (Managing General Agents) are willing to do that.

Marketing your agency is the most critical task. There are lots of great agents and agencies in the market place, therefore there has to be something different about you and your agency for people to become your customers. Why do people need to come to you and become your customers? The answer to that should be the backbone of your marketing campaign.

You can design very complicated and expensive marketing campaign, but always keep in mind that advertising an auto insurance agency is not the same as advertising a life insurance agency. Selecting the target market is very important because it will determine the which product to sell (ie standard vs non standard auto), and it will determine the marketing campaign (newspapers ads, direct mailing, TV commercials, internet, etc.)

Regardless of the size of your agency, your staff will make you or break you! Proper recruiting, training and incentive oriented compensation are the keys to the success of your business. Your employees are your connection with the customers.

Capital Requirements: A starting agency needs between $15,000 to 50,000 for initial setup, and marketing startup. This includes computers, printers, fax, scanners, signs, files, advertising materials, office furniture, licensing, and minor remodeling.

The following are some sources that can help you getting started:

Find the requirement to get your insurance license (individual and business entity):

Check your state's Department of Insurance

In Illinois: insurance.illinois.gov/producer/producer_information.asp

Find how to incorporate yourself online:

To do it yourself, check your state website. You also can have a bookkeeper or a lawyer (for a fee) do that for you.

In Illinois: You can incorporate yourself online at http://www.ilsos.gov/corparticles/

Find how to get your FEIN online:

Check the IRS website at https://sa2.www4.irs.gov/modiein/individual/index.jsp

Some online brokers that give you access to preferred markets:

Insurance Noodle (insurancenoodle.com) and Agent Secure (agentsecure.com) are two national agencies that will allow you to get access to preferred markets.

Providers of Errors and Omission Coverage:

US E & O Brokers- (useo.com)

Get lists of companies to deal with/ software to manage your agency and MGAs to place business with:

Check the website of the Ultimate Insurance Links (the best) at ultimateinsurancelinks.com/

Finally "Nothing can stop the man with the right mental attitude from achieving his goal; nothing on earth can help the man with the wrong mental attitude. " Thomas Jefferson

Ed Sneineh: Founder of Insurance Navy, an independent insurance broker chain in Chicago. Insurance Navy is licensed in Illinois and Indiana as an Independent Insurance Broker.

Women Start Businesses in Record Numbers in 2009

The United States has produced many women making it to the top and becoming successful leaders. This is despite the fact that the environment these women grew up in might not have facilitated their direct access to the business world or provided these women role models in which to emulate. Nevertheless, many women have managed to learn enough about conducting a business and leading a team through education and mentoring.

Although in most cases women are still the ones who manage the household and would not normally have the time that running a business requires, many have set their priorities straight and have successfully entered the business world. Recent statistics show that women are starting businesses in record numbers and bringing significant changes to an environment which, not too long ago, seemed to be structured primarily for men and their ways of thinking and working.

Until recently, very few women have managed to succeed as business leaders. Be it for the disturbing lack of flexibility, men's solidarity in business or women's lack of confidence in their skills and abilities as leaders, the reality is that not many women have succeeded to in leadership roles. Moreover, in the absence of any grants from government agencies, women have to turn to private and non-profit organizations for assistance in starting a business. And, unfortunately, such grants often address minority women or women that come from economically disadvantaged communities. In spite of a nationwide network of programs and centers that offer business training, assistance and educational resources specifically for women, the actual business opportunities women are presented with are not too numerous.

Despite all these major drawbacks, what we are witnessing today in the business world is something that many would consider surprising, to say the least. Things are changing and evolving rapidly to an unprecedented presence for women in the business environment. Statistics show that over 23 million people in the United States (approximately 16% of the workforce) are now employed by women-owned businesses. This is almost double the number of employees that the biggest fifty companies in the U.S. have altogether. In addition to this, women-owned businesses generate $3 trillion in revenue and are tantamount to the fifth-largest gross domestic product on a global scale.

The first question that comes to mind is "Why are women starting their own businesses?" The most obvious reason would have to be "Because they want to be financially independent." We all know that depending on someone else for everything you need, from the food you put on the table and the clothes you wear to going on vacation or buying gifts for the holidays can be frustrating at times. All women feel the need to indulge themselves on their whims every now and then, and not all of them have the chance to do so, as long as they depend on someone else for money.

Of course, it's not a question of housewife versus business leader. Women are now almost half of the nation's workforce, which means that most of them have a steady income source and are able to provide for themselves and their families. But this is not the kind of financial independence I'm talking about. I am referring to the cashflow that a profitable business can generate, to no longer depending on a monthly paycheck and to not being forced to give up on many of your wishes and ideals. And if we take into account the fact that a woman's average salary is around 75 percent of that of a man's, it makes all the more sense for women to consider owning a business.

Could it be that women business owners saw a challenge in starting their own businesses and being successful like so many men before them? This too is a plausible reason. Now that equality between sexes is no longer an issue (except for maybe some remote parts of the world), women have the opportunity to prove that they are just as capable as men when it comes to setting up and fueling the growth of a profitable business. Many have succeeded and a lot more are attempting to.

Flexibility at their workplace and family-friendly benefits are yet another reason why women are considering business ownership. It is very difficult for a working mom to find the perfect balance between family life and career. Very few companies allow for family leaves or sick days, and even fewer provide their employees with high quality childcare. It is only natural that women try to relieve these burdens and attempt to set up an environment where such benefits would no longer be an issue. Given the minuses of the current employment market, it is safe to say that many women have chosen to start a business as a lifestyle choice. Everyone would like to have the flexibility that comes with being self-employed. Under these circumstances, there is little wonder why the number of women-owned businesses has seen such an astounding growth over recent years.

As I stated earlier, most women are the managers of their household and families. Statistics show that approximately three quarters of the decisions regarding purchases for the household are made by women. And in most cases, they do a great job managing everything around the house. Many women have decided to take a step forward and use this innate talent or acquired skill of juggling multiple tasks simultaneously, with the purpose of running a business of their own. The number of women starting businesses nowadays is almost three times the rate of men. Whatever the reasons for this growth may be, I am certain of one thing-we should all welcome this rise in the number of women-owned businesses for several reasons.

For one, women are more oriented towards communication than men and more likely to build stronger relationships with everyone around them, including the people they work with. Women feel the need to be part of a community more than men do, and a working community led by a woman is therefore more likely to be based on friendship and support.

Moreover, in most cases, women-owned businesses are closer to the kind of company that respects its employees' needs. All the benefits I was mentioned earlier (sick leaves, daycare and family leaves) are more likely to be found in women-owned businesses.

All in all, not everyone might think that the days of women as housewives are long gone, but the statistics beg to differ. Women start businesses in such record numbers that it is safe to say that women-owned businesses will play a major part in the recovery of the economy.

Christine is an independent marketer with The Trump Network. She is a mompreneur and lives with her four children and boyfriend in Malibu, California. For more information, please email Christine@ChristineSyquia.com.