At 28-years-old, Tim Gaspar has grown the full-service insurance agency he launched in Encino back in March of 2008 from a two-person operation, to having 8 employees and close to 2,000 clients. Projecting an 80 percent revenue growth during its second year of operation, the upward trend has held steady for the company, Gaspar Insurance Services. It specializes in both personal and commercial property casualty insurance services for individuals and companies of all sizes. “We take extremely good care of our clients, that’s the key to success,” he said. “There’s no secret marketing plan, no genius advertising, it’s just been real simple, customer service, keeping our promises, all the really obvious stuff. It’s not rocket science or anything.” Gaspar, who by the age of 19 had already launched and sold a business of inflatable moon houses, decided to pursue a career in insurance, like other members of his family, because of the lucrative prospect it presented. “There’s really only 2 or 3 types of businesses that I can think of that give you ongoing revenue. When we sell a policy for somebody we get paid every single time it renews, that means that as far as finding new customers, if we have a really terrible month, we still have all the revenue from all the accounts we’ve written since we started, and that’s really important,” he said. Gaspar took the plunge into business ownership when faced with an opportunity to buy out his clients at the insurance company where he had worked for five years. Inadvertently, he became a beneficiary of the down economy. While some of his clients were devastated by the recession, and some policies for such things as exotic car collections and valuable art may have shrunk or disappeared, many other clients have come knocking on his door looking to save money. “Most of the calls we get right now are from people looking to reduce their expenses and that’s something we’re able to do for about 80 percent of the people that come to us,” he said. “We’re able to give them the same or better coverage but cut their bill by 30-40 percent.” Fixed cost At the same time, insurance for a lot of people and businesses is a fixed cost, it’s an expense that you can’t get rid off, he said, and especially for those that are living paycheck to paycheck it can become especially relevant. “Somebody who’s barely making it actually has the biggest need for insurance because when you’re living paycheck to paycheck you don’t have any cushion whatsoever to buy yourself a new car if it’s stolen, to fix your car, to buy yourself new furniture if it gets stolen, if a water pipe breaks, or your house burns down,” he said. With a large potential client base out there in the current financial climate, it’s been Gaspar’s “personal touch’ which he says has kept clients loyal and fueled growth through word of mouth. “I think generally speaking people like to do business with people that they’re comfortable with- and this is something I learned from my family- I think it’s important to have a pretty close relationship with your clients whenever possible,” he said. Launching a business as the economy began to plummet didn’t come without its challenges, however. In order to get the $260,000 necessary to buy out his clients and open his own office, Gaspar had to take a personal risk and refinance his house, as he was unable to access credit elsewhere. Perhaps the biggest challenge was just getting his foot out the door. “I think that’s true anytime you want to start a business and you’re leaving a job that has a stable paycheck. Leaving is the hardest part. It’s harder than anything else. No matter what other challenges you have to face, I think that first step out the door is definitely the hardest one.” Solid plan After conquering that initial fear, and if relying on a solid business plan that backs up all grandiose plans, as well as on an organized accounting system, business owners may find not only success but personal satisfaction, he said. “There’s a feeling that you have as a business owner -building a business that you own and having control of something– it’s almost like raising your kid. It’s a really neat feeling. I wake up in the morning everyday excited to come to the office regardless of what challenges there are because this is my business and it’s my job to make it what I want to make it, and its something I haven’t been able to get by working for somebody else.” As the company grows, there are near future plans to begin advertising in radio, print and the internet more aggressively, and a new company web site will launch soon giving clients the ability to do policy changes and submit claims online. “The web site is going to be a huge part of our growth,” he said. “I’m going to grow as large as I can grow and still feel comfortable as far as being hands-on with my clients. Most of our growth is going to be attributed to having the right people here and the right staff, but there’s no limit to what we can do.”
Young Company Has Big Expansion Amid Turmoil
