What does year one
really look like?
Deciding to start a business is one thing. Actually delivering your own insurance brokerage and building a business that works financially, operationally and for your clients is another.
The planning happens before year one. Year one is where the plan meets reality: clients, income, covenants, new business, market access and the day-to-day job of building a brokerage that works.
The uncertainty is rational.
Experienced brokers rarely worry about whether they can advise clients. The questions are usually much more practical.
What happens to income while covenants are still running? How much business can realistically move? Where will new business come from? Who places the risks? What happens when a client needs access to a wider part of the market?
Those questions belong in the planning stage. By the time year one begins, the aim is to have thought them through and to start putting the plan into practice.
Six questions that shape year one.
Work through them before launch so year one becomes about delivering the plan rather than discovering the problems.
How do I replace my salary?
Revenue does not arrive in the same neat monthly pattern as a salary. Your plan needs to account for what you need to pay yourself, commission timing and the period before the book begins generating consistent income.What happens during my covenant period?
Notice periods, garden leave and restrictive covenants can all affect when clients are able to move. Understanding that timing before launch helps you work out how much financial breathing room you may need.How much business will actually follow?
A business plan should not assume every client relationship converts immediately. Build around realistic timings, new business opportunities and what you can properly approach.Who actually places the business?
You remain at the centre of the client relationship and advice. Momentum's specialist Broking Team supports placement, complex risks and access to the wider market around you.Will I have the markets I need?
With access to more than 300 agencies and a Broking Team of more than 60, the aim is to give you practical access to the markets your clients need.When does this start feeling like a business?
Year one is not simply about replacing a salary. You are beginning to build a client book, recurring income and a business asset of your own.It doesn't all happen on day one.
The preparation starts before launch. Year one is about turning those foundations into a working, growing brokerage.
Build strong foundations.
Before trading begins, the job is to remove as much uncertainty as possible and build a plan you can actually execute.- Business planning and realistic income forecasting
- Understanding covenants and timing
- Company and regulatory setup
- Brand, website and launch preparation
- Acturis and systems setup
- Market and placement planning
- Working out what you need personally before income builds
Start trading properly.
Going live is where the planning starts becoming real. The aim is to have the infrastructure around you so your attention can stay on clients and winning business.- Client onboarding and servicing
- Broking and placement support
- Compliance oversight
- Client money management
- Marketing support
- Operational guidance
Find a working rhythm.
The business is now operating. This period is about learning what actually works, building your pipeline and creating repeatable ways to win and look after clients.- Track income against the plan
- Monitor client transfer and conversion
- Build new business momentum
- Refine your workflows
- Build referral relationships through groups such as BNI and local business networks
- Adjust resource as the book grows
Build for sustainable growth.
By the final part of year one, the focus starts shifting from simply getting established to building a stronger, more sustainable and more valuable brokerage.- Strengthen recurring income
- Protect client retention
- Plan additional hires or support
- Improve operational efficiency
- Plan the next stage of growth
- Start thinking about long-term business value
The gap is real. Plan for it.
One of the biggest practical changes is moving from a predictable salary to income that builds with the brokerage.
There may be a period where covenants are still running, clients are moving across gradually and new business is only beginning to generate income. The important question is simple: how much financial breathing room do you need personally while the business gets established?
Sometimes the plan needs more breathing room.
One of the key reasons we partnered with Momentum was their willingness to support cash flow in year one. That first year is always challenging due to restrictive covenants and the shift from a monthly salary to full financial responsibility.
You focus on the clients.
We support you with everything else.
You bring the relationships, experience and ambition. Momentum provides the people, infrastructure and support around your business.
Broking and market placement.
More than 60 experienced brokers working across the market to support placement, complex risks and new-business opportunities.Practical compliance support.
Practical FCA oversight, governance and auditing as part of the AR structure.Client money management.
Momentum handles client money management for you, so it is not something you need to build, administer or worry about day to day.Systems that support you.
Acturis, management information and the technology needed to operate professionally from launch.Marketing around your business.
Support with brand, website, communications and ongoing marketing activity.And the things you do not want to build from scratch.
PI insurance, training and CPD, management information, claims support, mentoring and additional operational resource are all there to strengthen the business around you.You are not just replacing a salary.
You are beginning to build an asset.
Your client relationships remain yours. Your business remains yours. The work you put into winning clients and growing recurring income is building value in something you own.
That changes the way year one should be judged. It is not only about what you take from the business during the first twelve months. It is about the business those twelve months begin to create.
Before you move forward.
Put the plan on paper.
The question is not whether starting a brokerage feels exciting. The question is whether the numbers, timing and plan work.
Income. Covenants. Clients. New business. Market access. Costs. Funding. Support. Put it on paper and see what your first year could look like.
The practical questions matter.
How much money do I need before starting?
The distinction between setup costs and personal costs is important. Much of the infrastructure and setup required to operate your brokerage is provided through Momentum, so your direct setup costs can be relatively small.
The bigger question is what you need personally each month while client income and new business begin to build. That gives you a much clearer idea of the financial buffer you may need.
What happens if a client moves to me before their renewal?
A client may choose to move to your new brokerage before their existing policy is due for renewal. That means you can begin looking after the relationship straight away, but the income attached to that policy may not arrive until the renewal is placed.
This is another reason why year one cash flow needs to be planned around the timing of renewals, not simply the number of clients you expect to bring across.
Can Momentum support me during a covenant period?
Yes. Covenant timing is considered as part of the business-planning process. Funding can be available from the beginning where a temporary income gap forms part of a credible plan.
Do I keep control of my clients?
Yes. Your client relationships and your business remain yours. Momentum provides the infrastructure and support around the brokerage.
Who handles the broking?
You remain responsible for the client relationship and advice. Momentum's specialist central Broking Team supports placement, market access and complex risks around you.
What systems do I need?
The AR structure includes access to the systems and operational infrastructure needed to run the brokerage, including Acturis.
Start with a plan.
Build from there.
If you are an experienced commercial insurance broker considering starting your own business, talk to us about what year one could realistically look like.
