[quote=NEVER_proprietary]

Hi,   This is my first post to the forum so HELLO everyone in this this doggy dog business we call investments.   I am currently rebuilding an investment book of business after being out for 3 years learning the insurance world. A friend and I currently have an indy osj and we work out of my home office.   My question is what our monthly and one-time overhead will be if we decide to lease a commercial space and eventually recruit financial advisors, health insurance agents, registered reps, and life insurance agents. We plan on giving everyone 1099 contracts and between 65-75% payout on investments. My main concern is the set reoccuring expenses. I have the following expenses down but I'm sure there is a lot I've overlooked........   Lease-in my area of the mid-atlantic A level office space is north of $22/sf.  Find a local commerical realtor and request a location survey of the area your looking.  Now is a good time for sub-leases so inquire into that too.  phone,cable,internet bill-Verizon is about 55 dollars per line nationwide calling once you factor is all the fees.  I have 6 phone lines and a mid level internet for about 450 per month.  It serves 6-9 loan officers and no trouble of running out of lines or web speeds. phone system-pricey.  I have ESI phones which are very user friendly reducing need for tech calls.  I paid about 4k for 8 phone system, installed.  It has an auto attendent, 4hrs of voicemail, works for us. desks/chairs-try to get a furnished space if possible.  Decent desk are about 1k chair another 300.  You can find cheaper deals but check HON out. receptionist salary-10 an hour in these parts.  copier/fax machines-recommend HP Laser jets for desk or networked printer.  I do a lot of scanning so I have a stand alone Biz Hub.  Highly recommend.  Find this on craigslist as many failing businesses are selling office equipment.  paper/pens/supplies-We use a lot of paper and file folders.  I spent about 300 upfront decking the place out, now I spend about 100 month with qualls.com.  Computers-craigslist,  www.dell.com/outlet for refurbs           Any help would be greatly appreciated.   Thanks guys!              [/quote]

[quote=NEVER_proprietary]

Hi,   This is my first post to the forum so HELLO everyone in this this doggy dog business we call investments.   I am currently rebuilding an investment book of business after being out for 3 years learning the insurance world. A friend and I currently have an indy osj and we work out of my home office.   My question is what our monthly and one-time overhead will be if we decide to lease a commercial space and eventually recruit financial advisors, health insurance agents, registered reps, and life insurance agents. We plan on giving everyone 1099 contracts and between 65-75% payout on investments. My main concern is the set reoccuring expenses. I have the following expenses down but I'm sure there is a lot I've overlooked........   Lease phone,cable,internet bill phone system desks/chairs receptionist salary copier/fax machines paper/pens/supplies Computers     Any help would be greatly appreciated.   Thanks guys!       [/quote]   Marketing budget Postage

Thank you Yield, that was a great response I really appreciate it.

  Chief Thank you too, our marketing budget is tiny. We do 95% of our business over the phone so just a stamp and postcard to a for a lead to introduce ourselves. I will begin prospecting in NY (my home state) for Estate planning cases and group benifits also but, thats all face-to-face and no brochures.   If there is any other info or advice I'd greatly appreciate it.   Thank you!

My guess the costs will be anywhere from $1,000/month - $20,000/month likely.  hope that helps. 

  Seriously, this question has so many variables that NO ONE on a public forum can get even close to guessing what it'll cost you.  You may actually have to do some work yourself based on how much space/equipments/etc you will need or plan to grow into.   If you're not to sure about how to handle these things... you may want to start off with a smaller office with you and your buddy and try to find a lease you can get out of easily if indeed you do grow or recruit more brokers so you can move into larger space.  You're not going to go from pajamas and home offices to 3,000 square foot unit with 10 brokers overnight. 

[quote=Baldy McGrindy]My guess the costs will be anywhere from $1,000/month - $20,000/month likely.  hope that helps. 

  Seriously, this question has so many variables that NO ONE on a public forum can get even close to guessing what it'll cost you.  You may actually have to do some work yourself based on how much space/equipments/etc you will need or plan to grow into.   If you're not to sure about how to handle these things... you may want to start off with a smaller office with you and your buddy and try to find a lease you can get out of easily if indeed you do grow or recruit more brokers so you can move into larger space.  You're not going to go from pajamas and home offices to 3,000 square foot unit with 10 brokers overnight.  [/quote]     Hi,   I'm looking more for what type of costs we will incur more so than how much. We don't have an issue so much with office space or recruiting a few brokers quickly. We are going to sublease space and move up from there. I'd like to start with 1,000sft so we can accommodate 5-6 reps.

CALI123:

I would see if you can find some reps in your area working under an OSJ and look at their deals. When I was leaving my wirehouse, I was approached by a rep who wanted to hire me. He offered to pay tech costs (which you seem to be doing) all my clients’ acat fees, any cost to transfer cost basis data, press release to mention new hiring, business cards, stationary, etc - I was also offered cash to help cover the cost of transfer and to help “woo” clients". Depending on the size of broker you are trying to recruit, this could be a pretty large number.

  When I was a rep at an OSJ years ago my monthly set costs were tech (ILX-$400), E&O- $150, desk fee( $250, was really used to help pay assistant). Brokers did receive sign on bonuses but not a 75% payout also. Maybe 60% and a fat check upfront.