Agents considering whether or not to establish their own businesses should carefully
consider the following:
1. Establishment of the business should not be for the wrong reasons, i.e.; EGO.
2. Capital may have to be contributed when establishing the business — either by
contributing real capital or by taking a reduction in income.
3. Life companies which offer large amounts of advance income to establish a
relationship with agents will usually have greater control in the operation of a life
insurance agency than those who do not.
The agent who wishes to take the risks and build a business that has value must do some
careful planning. Introspection and the determination of long term objectives are the key.
