Office Spacing Advice Please.

[genYbroker]

Hello, everyone.

I try to figure how much space I would need for my IA office.

I will likely have 3 people working in this future office.

What is recommended office space? It seems to be a silly question. However, as you might know that office space in southern California is very very very expensive. So I need to rein in that fixed cost, otherwise, I will be closing my business before it takes off.

Thanks for any advice.

GenYBroker.

[independent guy]

The office I'm working in has 1000 sq. ft. to work with, but has up to 7 employees in it at a time. And that's way too busy & crammed. I'd say that if you're just starting out, you might want half that amount of space to work with. We have too many paper-file drawers taking up space.

[DanD]

Whats driving your question about the amount of space needed is the cost of the space. The cost of the space depends on your location. Do you need to be in a "high end" location? Can you move 10 - 15 - 20 miles or more away from your target market and still do well? yes. (unless your looking for substandard biz)

Prospects do not want to come and see you. They want insurance and they want it from someone they trust. Use your email, fax and any othe technoligy to show them they can trust you. 80% of my polices are written outme or anyone in my office ever seeing the new client.

I would get between 700 and 1000 sq feet - you want something you can grow in.

[genYbroker]

Thank you, everyone.

DanD, thanks for pointing out those essential location factors.

Some of the locations I like, they cost from $ 3-4 per square foot. For a 1000 square foot office, it comes out to be $ 3,000-4000/month.
That is a lot. As a new IA office, it will be very tough to earn enough commission to cover the rent.

GenYBroker.

[yoyowordup]

Most new agents/agencies are going the high tech route as it is the wave of the future. You may want to consider having producers and/or CSR's working from home.

I also strongly recommend going paperless from the start. Less filing cabinets, scan everything.

[pita3333]

Having helped start an agency a year ago...can offer advise on this.

First totally agree with paperless - but make sure you have a good agency management system in place for this. We use AMS360.

We are also in SoCal and about to move from the Valencia area back to the Valley...as soon as we sublease our current space. We have just under 900 sq ft here in a "suite" enviroment. We could house 11 people here if we needed to...I would suggest looking for about 500-600.

Pricing...I do not know where you are getting the $3-4 rate. Even in the prime Encino/Sherman Oaks area I was able to find rates at or below $2.00.

One piece of advise - don't get too much too early...wait to move until you are certain you are stable...or bursting at seams.

[genYbroker]

Thank you for your valuable info on the agency management software AMS360, Pita3333.

Do you know anything about Applied Systems (AS)product?
I'm wondering if AS is better and/or less expensive in any aspects. Of course, every product has its own pluses and minuses. However, it depends on one's operations (sizes, lines of business, etc..) that one product is prefered over the others.

With regard to the $ 3-4 square foot rate, the location is in a newly developed shopping center that's opened last November. In fact, one wireless store just pulled out last month. I bet it has to do with the expensive rent. There are still vacancy. But I will sure stay away from that area.

GenYBroker

[yoyowordup]

I am currently using Applied Systems WinTam 7.0. The product is great and they seem to be very progressive with respect to system capabilities.

You need to make sure the system has the ability to attach e-mails to the client etc.

I used to be on AMS 5-6 years ago and they are very similar products. And they are both very expensive. When getting quotes, make sure to find out all future costs including cost to support company downloads etc.

Good Luck!

[pita3333]

Judging from your reply-shopping center - you must be a personal lines person, and looking for walk in customers.

I know another person who recently started as personal lines...and he has a office in an exec suite and is paying about 800 a month. He flyers and has ads in yellow pages and is starting to get busier...but it took him a while.

If you do not need to be in shopping center...look at either subleasing space or exec suite type of situation. This gives you the flexability to have as lil space as needed and to move when you need to. I would also suggest using a PO box so that when you do move your mailing does not have to change.

What part of SoCal are you in?

[ditsleg]

speaking of location, how valuable is a high traffic a exposed office on a busy road ? Is it more from the advertizing advantage or do you expect walk in traffic ?

[genYbroker]

Hello, Pita.

Your judgment is right. I will focus on personal lines and commercial lines for "very" small businesses. I guess not much money to be made from. I gather the big money is with commercial lines/ surplus lines. Well, I don't have the high caliber so I can't expect too much.
Thanks for your marketing hints.
I am in Anaheim, CA.

I just got a quote from a property management company for another shopping center area. Here is their exact quote. "The minimum space is 1,000 sq. ft. at the beginning rent of $1.95 / sq. ft." That is $1,950 /month. Wow... B). But this is half price from the last quote I got. I guess the other guy smoked dope or his place is special . This plaza is big and has about 80,000 sqft.

Well, I will keep looking.

Yoyowordup, thanks for that info. I will give them a call to check out their prices on the software products.

Does any of you use QuickBooks for your office accounting/financials?


GenYBroker