Sell insurance or toilet paper? One my favorite businesses

A lot of time people will ask me “What is your favorite type of business?”. Many times I will say the insurance business. The Insurance business is an excellent business model because of the need and the system that has been created with the renewal income. This renewal income is constant as long as the customer never changes. I have not changed my insurance for about 5 years now.

So when the opportunities are presented of either an insurance business or a toilet paper business I options have to be considered on what will give the greatest return with the greatest return with the least effort and least expense. Both insurance and toilet paper are needed, every day. Insurance however, is mandated and provides income upon renewal. Insurance also has very little overhead and can do very well with good products and a few superstar sales people. Next step in success would be to have excellent customer service and good follow up because good retention will provide a healthy stream of renewal income.

 The insurance business is like no other type of business were you can implement and maintain a customer retention system to receive income. Customer and employee retention is critical in every business but in this business the reward is a lot greater.

A toilet paper business is also good because it is always needed but it is not mandated and people do not always use the same product all the time. They can use any type of toilet paper. The profit is also minimal with the high cost that it would incur just to bring the product to the shelf. Unlike in insurance which is non tangible product (like selling an invoice with value) and just takes a few minutes to put together.

 I would love to write everyday “Thank you of your payment of $324.00 Your insurance is renewed until 1/16/2016”. I can do this all day long!!

I enjoy advertising and marketing but this can be very costly and time consuming, in business the more of these you can eliminate the better. I would love to have a business I can just press a button and money would come out but if the next best thing is writing up a new insurance for someone, I will take that, sign me up!

Sometimes I will see insurance businesses being sold for 1 X NET, which is very rare.  This means you will have your investment on purchase of business returned to you in 1 year.

To add the icing on the cake, the potential for growth is phenomenal.

I have a business broker friend of mine that works with me part time here in the office. He specializes in selling insurance agencies. Before he was selling businesses he owned an insurance company himself for over 40 years. He owned one of the largest insurance offices in Orange County and later sold it for a hefty price. I was very impressed on how he got so big. He had thousands of accounts. He did do a lot of advertisement but the majority of his growth through the years was done through acquisition. Every year he would either have bought or was in the process of buying another insurance agency. This would give him more accounts, providing him with more income on renewals every year. He became such an expert that when he sold his company he decided to help others buy and sell insurance agencies.

Sell INSURANCE! Receive $$$$ (commissions) generated by automatic renewal.