Plynthe Insurance will offer the following personal insurance products:
1. Home and Contents:
2. Valuable Items:
3. Personal Liability
4. Life Insurance
5. Long-term Care
6. Long-term Disability
All of these products will be offered to individuals and not businesses. The insurance products will be provided by any of the major insurance providers in existence, with attention paid to smaller providers who offer specialized insurance products.
While offering these products, Plynthe Insurance will provide the following services:
The market for personal insurance consists of all adult individuals, potentially, as there are products available which are appropriate for every type of person from the moment they leave their parents’ home to the day they die. Therefore, the market for an insurance agent selling personal insurance in Peristyle Gardens is synonymous with the adult population of Peristyle Gardens. In 2008, the population of adults (18 and older) in the town was estimated at 57,500. The town has an overall annual growth rate of 2% due to new developments in the town and an aging population with ever-increasing life expectancies.
Within this target market, the market segments on which Plynthe Insurance will focus include renters, homeowners, individuals over 40 years of age, and new parents/parents-to-be.
The market segments described include a great deal of overlap. For example, many adults over the age of 40 are also homeowners and the remainder are renters. The new parent segment are also either homeowners or renters, generally. Each segment has different needs for insurance products, however, and those who fall into more than one segment have a need for more than one product.
Market Analysis | |||||||
Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | |||
Potential Customers | Growth | CAGR | |||||
Renters | 2% | 11,000 | 11,220 | 11,444 | 11,673 | 11,906 | 2.00% |
Homeowners | 1% | 34,000 | 34,340 | 34,683 | 35,030 | 35,380 | 1.00% |
Adults over Age 40 | 3% | 35,000 | 36,050 | 37,132 | 38,246 | 39,393 | 3.00% |
New Parents/Parents-To-Be | 2% | 3,000 | 3,060 | 3,121 | 3,183 | 3,247 | 2.00% |
Total | 2.02% | 83,000 | 84,670 | 86,380 | 88,132 | 89,926 | 2.02% |
Plynthe Insurance will focus its initial marketing on those at the younger end of the spectrum, including renters and new parents/parents-to-be. The strategy will be to begin by selling renter’s insurance and life insurance to clients and then earn their ongoing trust in order to sell additional insurance policies to them as new needs arise. Younger clients will also serve as a longer annuity as insurance policies are renewed year after year.
As these clients increase in age they will have growing needs for homeowner’s insurance, valuable items insurance, life insurance, and, eventually, long-term care and long-term disability.
The United States Department of Labor offers the following summary of the insurance industry:
Most people have their first contact with an insurance company through an insurance sales agent. These workers help individuals, families, and businesses select insurance policies that provide the best protection for their lives, health, and property. Insurance sales agents, commonly referred to as “producers” in the insurance industry, sell one or more types of insurance, such as property and casualty, life, health, disability, and long-term care. Property and casualty insurance agents sell policies that protect individuals and businesses from financial loss resulting from automobile accidents, fire, theft, storms, and other events that can damage property. For businesses, property and casualty insurance can also cover injured workers’ compensation, product liability claims, or medical malpractice claims. Life insurance agents specialize in selling policies that pay beneficiaries when a policyholder dies. Depending on the policyholder’s circumstances, a cash-value policy can be designed to provide retirement income, funds for the education of children, or other benefits as well. Life insurance agents also sell annuities that promise a retirement income. Health insurance agents sell health insurance policies that cover the costs of medical care and loss of income due to illness or injury. They also may sell dental insurance and short-term and long-term-disability insurance policies. Agents may specialize in any one of these product areas, or function as generalists, providing multiple products to a single customer. An increasing number of insurance sales agents are offering comprehensive financial planning services to their clients. These services include retirement planning, estate planning, and assistance in setting up pension plans for businesses. As a result, many insurance agents are involved in “cross-selling” or “total account development”. Besides offering insurance, these agents may become licensed to sell mutual funds, variable annuities, and other securities. This practice is most common with life insurance agents who already sell annuities, but many property and casualty agents also sell financial products. Insurance sales agents also prepare reports, maintain records, and seek out new clients. In the event that policy holders experience a loss, agents help them settle their insurance claims. Increasingly, some agents are also offering their clients financial analysis or advice on how to minimize risk. Insurance sales agents working exclusively for one insurance company are referred to as captive agents . Independent insurance agents, or brokers , represent several companies and match insurance policies for their clients with the company that offers the best rate and coverage. Technology has greatly affected the insurance business, making it much more efficient and giving the agent the ability to take on more clients. Agents’ computers are now linked directly to insurance carriers via the Internet, making the tasks of obtaining price quotes and processing applications and service requests faster and easier. Computers also allow agents to be better informed about new products that the insurance carriers may be offering. The growing use of the Internet in the insurance industry has altered the relationship between agent and client. Agents formerly used to devote much of their time to marketing and selling products to new clients. Now, clients are increasingly obtaining insurance quotes from a company’s Web site and then contacting the company directly to purchase policies. This interaction gives the client a more active role in selecting their policy, while reducing the amount of time agents spend actively seeking new clients. Insurance sales agents also obtain many new accounts through referrals, so it is important that they maintain regular contact with their clients to ensure that the clients’ financial needs are being met. Developing a satisfied clientele that will recommend an agent’s services to other potential customers is a key to success for agents.
The Department of Labor reports that there were 436,000 insurance sales agents in 2006 and that approximately 50% of them were independent agents or worked for brokerages. Urban areas tend to have a greater concentration of insurance agents. Peristyle Gardens has approximately 28 insurance agents (or roughly 1 for every 2,000 residents). However, these agents do not all offer the same products as Plynthe Insurance.
Customers seek insurance through one or more of the following:
The greater the insurance need of an individual, the more likely they are to seek a local office where they can meet with an agent and discuss their needs in person. For the target markets of renters and new parents/parents-to-be in Peristyle Gardens, the primary competition will come from national insurance carriers rather than other independent agents.
To implement its launch in Peristyle Gardens, Plynthe Insurance intends to target clients on the younger side of the total potential market in order to build up a client base for long-term service. This is also a target market that is ignored by other local independent insurance agents, making it easier to establish a foothold in the market this way. This implementation will include:
Plynthe Insurance will establish its competitive edge through a single-minded focus on personal insurance. By being and staying an expert on personal insurance products and providers, Plynthe Insurance will be a one-stop-shop for individuals looking to minimize the risks in their lives for themselves and for their families. To maintain this expertise, Plynthe Insurance will devote time and energy to training and course work, and will subscribe to trade periodicals and newsletters. Plynthe Insurance will also spend time learning about the specific risks and problems associated with Peristyle Gardens in order to better serve its residents.
The marketing strategy for Plynthe Insurance involves an initial focus on the target markets chosen, new parents/parents-to-be and renters. Renters require renter’s insurance and valuable items insurance. It is often the first time they will have purchased insurance in their lives. New parents require life insurance to protect their family and their children. Both groups may only purchase policies with small premiums at the moment, but their loyalty will turn into an annuity of renewals and opportunities to sell additional policies as they age.
To reach these target markets, Plynthe Insurance will engage in the following tactics:
The sales strategy of Plynthe Insurance will be an aggressive one based on profiling and targeting individuals in the initial target market. Kolem Plynthe will have initial phone conversations with clients and then meet them at their home or office to discuss further. He will bring his laptop with him to all sales calls to search for insurance options for clients on the spot whenever possible.
Potential, actual, and past clients will all be managed through a CRM database in salesforce.com which will contain contact information and data on the relationship, and will generate reminders for follow-ups and next steps automatically.
Kolem Plynthe will encourage referrals through his interactions with clients by asking them directly and by offering gifts to those who refer clients.
By building business through Kolem Plynthe’s own sales work and then through an additional associate, the business is expected to significantly grow its revenue streams, especially in the target market of younger clients, in these first three years of operation.
Sales Forecast | |||
Year 1 | Year 2 | Year 3 | |
Unit Sales | |||
Propery Insurance | 682 | 955 | 1,336 |
Life Insurance | 318 | 445 | 624 |
Long Term Care/Disability | 26 | 46 | 80 |
Valuable Items | 363 | 509 | 712 |
Personal Liability | 57 | 100 | 175 |
Total Unit Sales | 1,446 | 2,055 | 2,927 |
Unit Prices | Year 1 | Year 2 | Year 3 |
Propery Insurance | $100.00 | $100.00 | $100.00 |
Life Insurance | $150.00 | $150.00 | $150.00 |
Long Term Care/Disability | $150.00 | $150.00 | $150.00 |
Valuable Items | $75.00 | $75.00 | $75.00 |
Personal Liability | $75.00 | $75.00 | $75.00 |
Sales | |||
Propery Insurance | $68,200 | $95,500 | $133,600 |
Life Insurance | $47,700 | $66,750 | $93,600 |
Long Term Care/Disability | $3,900 | $6,900 | $12,000 |
Valuable Items | $27,225 | $38,175 | $53,400 |
Personal Liability | $4,275 | $7,500 | $13,125 |
Total Sales | $151,300 | $214,825 | $305,725 |
Direct Unit Costs | Year 1 | Year 2 | Year 3 |
Propery Insurance | $16.00 | $15.00 | $15.00 |
Life Insurance | $24.00 | $22.50 | $22.50 |
Long Term Care/Disability | $24.00 | $22.50 | $22.50 |
Valuable Items | $12.00 | $11.25 | $11.25 |
Personal Liability | $12.00 | $11.25 | $11.25 |
Direct Cost of Sales | |||
Propery Insurance | $10,912 | $14,325 | $20,040 |
Life Insurance | $7,632 | $10,013 | $14,040 |
Long Term Care/Disability | $624 | $1,035 | $1,800 |
Valuable Items | $4,356 | $5,726 | $8,010 |
Personal Liability | $684 | $1,125 | $1,969 |
Subtotal Direct Cost of Sales | $24,208 | $32,224 | $45,859 |
The marketing activities listed in the Milestones Table are all intended to be low cost methods to establish an initial client base. They are intended as one-time activities with the exception of search engine marketing which will continue with a dedicated budget of $500 per month and advertising in parent periodicals which may continue with $500 per month devoted to it after the launch.
Milestones | |||||
Milestone | Start Date | End Date | Budget | Manager | Department |
Create Website | 1/1/2010 | 1/30/2010 | $1,000 | KP | Owner |
Launch SEM Campaign | 2/1/2010 | 2/15/2010 | $500 | KP | Owner |
Create and Post Flyers | 2/15/2010 | 2/28/2010 | $500 | KP | Owner |
Direct Mail Campaign | 2/15/2010 | 2/28/2010 | $1,000 | KP | Owner |
Advertising in Periodicals | 2/15/2010 | 4/15/2010 | $500 | KP | Owner |
Yellow Pages Listing | 2/15/2010 | 2/28/2010 | $100 | KP | Owner |
Totals | $3,600 |
Kolem Plynthe will be the only employee of Plynthe Insurance in its first year. He will continue to direct the company going forward and will bring on an associate agent in the second year of operation. This agent will prospect, sell, and fulfill policy requests for clients and will answer questions of clients just as Kolem Plynthe will. However, Plynthe will manage the marketing and finances of the firm and will set guidelines for training and education which the associate agent must follow.
Kolem Plynthe will escalate his salary as the year goes forward. Although the business is currently a sole proprietorship, his salary is recorded to better illustrate the tax burden he will face. The associate agent will be compensated with a base salary, a 5% commission on sales, and a percentage of net profits which will increase based on performance. The associate agent will have an initial salary of $50,000 per year, but will be hired part way into the second year of operation.
Training for the associate agent (and future associate agents) will begin with direct, on the job training by Kolem Plynthe on sales calls. Ongoing training will include required course work to maintain certification as well as additional events in the community, conferences, and reading material.
Personnel Plan | |||
Year 1 | Year 2 | Year 3 | |
Kolem Plynthe | $49,000 | $50,000 | $75,000 |
Associate Agent | $0 | $35,000 | $75,000 |
Total People | 1 | 2 | 2 |
Total Payroll | $49,000 | $85,000 | $150,000 |
The business will finance its growth from a combination of the free cash flows generated by the business and a loan taken out in the second year to finance the move to a small office space in Peristyle Gardens. Beyond the first three years, growth will be possible by adding more agents and moving to a larger office space when the initial space is no longer adequate (when a third associate must be added).
The business is not well positioned for a sale as it will be built on the expertise of Kolem Plynthe. However, profits may become extensive when the appropriate scale is achieved and the business can expand to additional personal insurance products or financial advisory services.
Plynthe Insurance will be launched with Kolem Plynthe’s own resources, including credit card debt, personal savings, and some credit extended by vendors providing start-up services.
Start-up Funding | |
Start-up Expenses to Fund | $8,000 |
Start-up Assets to Fund | $24,000 |
Total Funding Required | $32,000 |
Assets | |
Non-cash Assets from Start-up | $0 |
Cash Requirements from Start-up | $24,000 |
Additional Cash Raised | $0 |
Cash Balance on Starting Date | $24,000 |
Total Assets | $24,000 |
Liabilities and Capital | |
Liabilities | |
Current Borrowing | $4,000 |
Long-term Liabilities | $0 |
Accounts Payable (Outstanding Bills) | $1,000 |
Other Current Liabilities (interest-free) | $0 |
Total Liabilities | $5,000 |
Capital | |
Planned Investment | |
Owner | $27,000 |
Investor | $0 |
Additional Investment Requirement | $0 |
Total Planned Investment | $27,000 |
Loss at Start-up (Start-up Expenses) | ($8,000) |
Total Capital | $19,000 |
Total Capital and Liabilities | $24,000 |
Total Funding | $32,000 |
This plan assumes the following:
As shown below a low monthly break even point leads to break even from a profit perspective in the nineth month of operation.
Break-even Analysis | |
Monthly Units Break-even | 86 |
Monthly Revenue Break-even | $8,983 |
Assumptions: | |
Average Per-Unit Revenue | $104.63 |
Average Per-Unit Variable Cost | $16.74 |
Estimated Monthly Fixed Cost | $7,546 |
Net profit will be on top of a healthy salary for Kolem Plynthe, showing that the business will be well worth the small initial investment to launch. Gross margins are very high (as is standard for the insurance brokerage industry) and overhead is rather low. The main costs will be payroll for the insurance agents. Lower salaries can be paid in the future for new associate agents as less experienced, but malleable, agents are brought into the business.
Pro Forma Profit and Loss | |||
Year 1 | Year 2 | Year 3 | |
Sales | $151,300 | $214,825 | $305,725 |
Direct Cost of Sales | $24,208 | $32,224 | $45,859 |
Other Costs of Sales | $0 | $0 | $0 |
Total Cost of Sales | $24,208 | $32,224 | $45,859 |
Gross Margin | $127,092 | $182,601 | $259,866 |
Gross Margin % | 84.00% | 85.00% | 85.00% |
Expenses | |||
Payroll | $49,000 | $85,000 | $150,000 |
Marketing/Promotion | $24,000 | $15,000 | $15,000 |
Depreciation | $0 | $5,000 | $5,000 |
Rent | $2,400 | $12,000 | $12,600 |
Utilities | $600 | $1,800 | $1,890 |
Insurance | $2,400 | $3,000 | $3,500 |
Payroll Taxes | $7,350 | $12,750 | $22,500 |
Education | $4,800 | $5,000 | $7,500 |
Total Operating Expenses | $90,550 | $139,550 | $217,990 |
Profit Before Interest and Taxes | $36,542 | $43,051 | $41,876 |
EBITDA | $36,542 | $48,051 | $46,876 |
Interest Expense | $327 | $350 | $550 |
Taxes Incurred | $10,864 | $12,810 | $12,398 |
Net Profit | $25,350 | $29,891 | $28,928 |
Net Profit/Sales | 16.75% | 13.91% | 9.46% |
The projected cash flow shows the business investing in additional assets (furniture, computers, equipment) in the second year and third year to equip the office. While the cash balance of the business is low, the salary paid to Kolem Plynthe will act as a safety valve and can be reduced if the cash is not currently available.
Pro Forma Cash Flow | |||
Year 1 | Year 2 | Year 3 | |
Cash Received | |||
Cash from Operations | |||
Cash Sales | $0 | $0 | $0 |
Cash from Receivables | $105,935 | $195,778 | $278,470 |
Subtotal Cash from Operations | $105,935 | $195,778 | $278,470 |
Additional Cash Received | |||
Sales Tax, VAT, HST/GST Received | $0 | $0 | $0 |
New Current Borrowing | $0 | $0 | $0 |
New Other Liabilities (interest-free) | $0 | $0 | $0 |
New Long-term Liabilities | $0 | $10,000 | $0 |
Sales of Other Current Assets | $0 | $0 | $0 |
Sales of Long-term Assets | $0 | $0 | $0 |
New Investment Received | $0 | $0 | $0 |
Subtotal Cash Received | $105,935 | $205,778 | $278,470 |
Expenditures | Year 1 | Year 2 | Year 3 |
Expenditures from Operations | |||
Cash Spending | $49,000 | $85,000 | $150,000 |
Bill Payments | $67,097 | $97,984 | $119,589 |
Subtotal Spent on Operations | $116,097 | $182,984 | $269,589 |
Additional Cash Spent | |||
Sales Tax, VAT, HST/GST Paid Out | $0 | $0 | $0 |
Principal Repayment of Current Borrowing | $4,000 | $0 | $0 |
Other Liabilities Principal Repayment | $0 | $0 | $0 |
Long-term Liabilities Principal Repayment | $0 | $3,000 | $3,000 |
Purchase Other Current Assets | $0 | $5,000 | $5,000 |
Purchase Long-term Assets | $0 | $15,000 | $5,000 |
Dividends | $0 | $0 | $0 |
Subtotal Cash Spent | $120,097 | $205,984 | $282,589 |
Net Cash Flow | ($14,162) | ($206) | ($4,119) |
Cash Balance | $9,838 | $9,632 | $5,513 |
The balance sheet reflects that assets will not need to be purchased until the second year when the business moves from the home office of Kolem Plynthe to a small commercial office space in Peristyle Gardens.
Pro Forma Balance Sheet | |||
Year 1 | Year 2 | Year 3 | |
Assets | |||
Current Assets | |||
Cash | $9,838 | $9,632 | $5,513 |
Accounts Receivable | $45,365 | $64,412 | $91,667 |
Other Current Assets | $0 | $5,000 | $10,000 |
Total Current Assets | $55,203 | $79,044 | $107,180 |
Long-term Assets | |||
Long-term Assets | $0 | $15,000 | $20,000 |
Accumulated Depreciation | $0 | $5,000 | $10,000 |
Total Long-term Assets | $0 | $10,000 | $10,000 |
Total Assets | $55,203 | $89,044 | $117,180 |
Liabilities and Capital | Year 1 | Year 2 | Year 3 |
Current Liabilities | |||
Accounts Payable | $10,853 | $7,803 | $10,011 |
Current Borrowing | $0 | $0 | $0 |
Other Current Liabilities | $0 | $0 | $0 |
Subtotal Current Liabilities | $10,853 | $7,803 | $10,011 |
Long-term Liabilities | $0 | $7,000 | $4,000 |
Total Liabilities | $10,853 | $14,803 | $14,011 |
Paid-in Capital | $27,000 | $27,000 | $27,000 |
Retained Earnings | ($8,000) | $17,350 | $47,241 |
Earnings | $25,350 | $29,891 | $28,928 |
Total Capital | $44,350 | $74,241 | $103,169 |
Total Liabilities and Capital | $55,203 | $89,044 | $117,180 |
Net Worth | $44,350 | $74,241 | $103,169 |
The business rations for Plynthe Insurance are compared here against insurance agencies and brokerages (NAISC industry code 534210, SIC code 6411) of under $500,000 annual revenue. The accounts receivable ratio for the business is higher than the industry average as all accounts will be paid out of commissions from insurance providers after the policies have been processed and bills put through their systems. Also, the fact that the industry average S G & A expense and Advertising expense is much lower (as a percentage of sales) than that of Plynthe Insurance shows that the business can grow to a much greater scale, spreading its current relatively fixed costs over more agents and becoming more profitable in the process. As the business grows, this will be possible.
Ratio Analysis | ||||
Year 1 | Year 2 | Year 3 | Industry Profile | |
Sales Growth | n.a. | 41.99% | 42.31% | 1.02% |
Percent of Total Assets | ||||
Accounts Receivable | 82.18% | 72.34% | 78.23% | 8.34% |
Other Current Assets | 0.00% | 5.62% | 8.53% | 76.12% |
Total Current Assets | 100.00% | 88.77% | 91.47% | 84.46% |
Long-term Assets | 0.00% | 11.23% | 8.53% | 15.54% |
Total Assets | 100.00% | 100.00% | 100.00% | 100.00% |
Current Liabilities | 19.66% | 8.76% | 8.54% | 38.87% |
Long-term Liabilities | 0.00% | 7.86% | 3.41% | 30.80% |
Total Liabilities | 19.66% | 16.62% | 11.96% | 69.67% |
Net Worth | 80.34% | 83.38% | 88.04% | 30.33% |
Percent of Sales | ||||
Sales | 100.00% | 100.00% | 100.00% | 100.00% |
Gross Margin | 84.00% | 85.00% | 85.00% | 85.97% |
Selling, General & Administrative Expenses | 67.25% | 71.09% | 75.54% | 38.55% |
Advertising Expenses | 15.86% | 6.98% | 4.91% | 1.64% |
Profit Before Interest and Taxes | 24.15% | 20.04% | 13.70% | 17.53% |
Main Ratios | ||||
Current | 5.09 | 10.13 | 10.71 | 1.27 |
Quick | 5.09 | 10.13 | 10.71 | 1.27 |
Total Debt to Total Assets | 19.66% | 16.62% | 11.96% | 69.67% |
Pre-tax Return on Net Worth | 81.66% | 57.52% | 40.06% | 260.25% |
Pre-tax Return on Assets | 65.60% | 47.96% | 35.27% | 78.92% |
Additional Ratios | Year 1 | Year 2 | Year 3 | |
Net Profit Margin | 16.75% | 13.91% | 9.46% | n.a |
Return on Equity | 57.16% | 40.26% | 28.04% | n.a |
Activity Ratios | ||||
Accounts Receivable Turnover | 3.34 | 3.34 | 3.34 | n.a |
Collection Days | 55 | 93 | 93 | n.a |
Accounts Payable Turnover | 7.09 | 12.17 | 12.17 | n.a |
Payment Days | 28 | 36 | 27 | n.a |
Total Asset Turnover | 2.74 | 2.41 | 2.61 | n.a |
Debt Ratios | ||||
Debt to Net Worth | 0.24 | 0.20 | 0.14 | n.a |
Current Liab. to Liab. | 1.00 | 0.53 | 0.71 | n.a |
Liquidity Ratios | ||||
Net Working Capital | $44,350 | $71,241 | $97,169 | n.a |
Interest Coverage | 111.60 | 123.00 | 76.14 | n.a |
Additional Ratios | ||||
Assets to Sales | 0.36 | 0.41 | 0.38 | n.a |
Current Debt/Total Assets | 20% | 9% | 9% | n.a |
Acid Test | 0.91 | 1.88 | 1.55 | n.a |
Sales/Net Worth | 3.41 | 2.89 | 2.96 | n.a |
Dividend Payout | 0.00 | 0.00 | 0.00 | n.a |
Sales Forecast | |||||||||||||
Month 1 | Month 2 | Month 3 | Month 4 | Month 5 | Month 6 | Month 7 | Month 8 | Month 9 | Month 10 | Month 11 | Month 12 | ||
Unit Sales | |||||||||||||
Propery Insurance | 25 | 29 | 32 | 37 | 42 | 48 | 55 | 63 | 71 | 81 | 93 | 106 | |
Life Insurance | 12 | 13 | 15 | 17 | 20 | 22 | 25 | 28 | 37 | 38 | 42 | 49 | |
Long Term Care/Disability | 0 | 0 | 0 | 0 | 0 | 1 | 1 | 2 | 3 | 5 | 6 | 8 | |
Valuable Items | 13 | 15 | 17 | 20 | 23 | 26 | 29 | 33 | 38 | 43 | 49 | 57 | |
Personal Liability | 0 | 0 | 0 | 0 | 0 | 0 | 2 | 4 | 7 | 11 | 15 | 18 | |
Total Unit Sales | 50 | 57 | 64 | 74 | 85 | 97 | 112 | 130 | 156 | 178 | 205 | 238 | |
Unit Prices | Month 1 | Month 2 | Month 3 | Month 4 | Month 5 | Month 6 | Month 7 | Month 8 | Month 9 | Month 10 | Month 11 | Month 12 | |
Propery Insurance | $100.00 | $100.00 | $100.00 | $100.00 | $100.00 | $100.00 | $100.00 | $100.00 | $100.00 | $100.00 | $100.00 | $100.00 | |
Life Insurance | $150.00 | $150.00 | $150.00 | $150.00 | $150.00 | $150.00 | $150.00 | $150.00 | $150.00 | $150.00 | $150.00 | $150.00 | |
Long Term Care/Disability | $150.00 | $150.00 | $150.00 | $150.00 | $150.00 | $150.00 | $150.00 | $150.00 | $150.00 | $150.00 | $150.00 | $150.00 | |
Valuable Items | $75.00 | $75.00 | $75.00 | $75.00 | $75.00 | $75.00 | $75.00 | $75.00 | $75.00 | $75.00 | $75.00 | $75.00 | |
Personal Liability | $75.00 | $75.00 | $75.00 | $75.00 | $75.00 | $75.00 | $75.00 | $75.00 | $75.00 | $75.00 | $75.00 | $75.00 | |
Sales | |||||||||||||
Propery Insurance | $2,500 | $2,900 | $3,200 | $3,700 | $4,200 | $4,800 | $5,500 | $6,300 | $7,100 | $8,100 | $9,300 | $10,600 | |
Life Insurance | $1,800 | $1,950 | $2,250 | $2,550 | $3,000 | $3,300 | $3,750 | $4,200 | $5,550 | $5,700 | $6,300 | $7,350 | |
Long Term Care/Disability | $0 | $0 | $0 | $0 | $0 | $150 | $150 | $300 | $450 | $750 | $900 | $1,200 | |
Valuable Items | $975 | $1,125 | $1,275 | $1,500 | $1,725 | $1,950 | $2,175 | $2,475 | $2,850 | $3,225 | $3,675 | $4,275 | |
Personal Liability | $0 | $0 | $0 | $0 | $0 | $0 | $150 | $300 | $525 | $825 | $1,125 | $1,350 | |
Total Sales | $5,275 | $5,975 | $6,725 | $7,750 | $8,925 | $10,200 | $11,725 | $13,575 | $16,475 | $18,600 | $21,300 | $24,775 | |
Direct Unit Costs | Month 1 | Month 2 | Month 3 | Month 4 | Month 5 | Month 6 | Month 7 | Month 8 | Month 9 | Month 10 | Month 11 | Month 12 | |
Propery Insurance | 16.00% | $16.00 | $16.00 | $16.00 | $16.00 | $16.00 | $16.00 | $16.00 | $16.00 | $16.00 | $16.00 | $16.00 | $16.00 |
Life Insurance | 16.00% | $24.00 | $24.00 | $24.00 | $24.00 | $24.00 | $24.00 | $24.00 | $24.00 | $24.00 | $24.00 | $24.00 | $24.00 |
Long Term Care/Disability | 16.00% | $24.00 | $24.00 | $24.00 | $24.00 | $24.00 | $24.00 | $24.00 | $24.00 | $24.00 | $24.00 | $24.00 | $24.00 |
Valuable Items | 16.00% | $12.00 | $12.00 | $12.00 | $12.00 | $12.00 | $12.00 | $12.00 | $12.00 | $12.00 | $12.00 | $12.00 | $12.00 |
Personal Liability | 16.00% | $12.00 | $12.00 | $12.00 | $12.00 | $12.00 | $12.00 | $12.00 | $12.00 | $12.00 | $12.00 | $12.00 | $12.00 |
Direct Cost of Sales | |||||||||||||
Propery Insurance | $400 | $464 | $512 | $592 | $672 | $768 | $880 | $1,008 | $1,136 | $1,296 | $1,488 | $1,696 | |
Life Insurance | $288 | $312 | $360 | $408 | $480 | $528 | $600 | $672 | $888 | $912 | $1,008 | $1,176 | |
Long Term Care/Disability | $0 | $0 | $0 | $0 | $0 | $24 | $24 | $48 | $72 | $120 | $144 | $192 | |
Valuable Items | $156 | $180 | $204 | $240 | $276 | $312 | $348 | $396 | $456 | $516 | $588 | $684 | |
Personal Liability | $0 | $0 | $0 | $0 | $0 | $0 | $24 | $48 | $84 | $132 | $180 | $216 | |
Subtotal Direct Cost of Sales | $844 | $956 | $1,076 | $1,240 | $1,428 | $1,632 | $1,876 | $2,172 | $2,636 | $2,976 | $3,408 | $3,964 |
Personnel Plan | |||||||||||||
Month 1 | Month 2 | Month 3 | Month 4 | Month 5 | Month 6 | Month 7 | Month 8 | Month 9 | Month 10 | Month 11 | Month 12 | ||
Kolem Plynthe | $3,000 | $3,000 | $3,000 | $4,000 | $4,000 | $4,000 | $4,000 | $4,000 | $5,000 | $5,000 | $5,000 | $5,000 | |
Associate Agent | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Total People | 1 | 1 | 1 | 1 | 1 | 1 | 1 | 1 | 1 | 1 | 1 | 1 | |
Total Payroll | $3,000 | $3,000 | $3,000 | $4,000 | $4,000 | $4,000 | $4,000 | $4,000 | $5,000 | $5,000 | $5,000 | $5,000 |
Pro Forma Profit and Loss | |||||||||||||
Month 1 | Month 2 | Month 3 | Month 4 | Month 5 | Month 6 | Month 7 | Month 8 | Month 9 | Month 10 | Month 11 | Month 12 | ||
Sales | $5,275 | $5,975 | $6,725 | $7,750 | $8,925 | $10,200 | $11,725 | $13,575 | $16,475 | $18,600 | $21,300 | $24,775 | |
Direct Cost of Sales | $844 | $956 | $1,076 | $1,240 | $1,428 | $1,632 | $1,876 | $2,172 | $2,636 | $2,976 | $3,408 | $3,964 | |
Other Costs of Sales | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Total Cost of Sales | $844 | $956 | $1,076 | $1,240 | $1,428 | $1,632 | $1,876 | $2,172 | $2,636 | $2,976 | $3,408 | $3,964 | |
Gross Margin | $4,431 | $5,019 | $5,649 | $6,510 | $7,497 | $8,568 | $9,849 | $11,403 | $13,839 | $15,624 | $17,892 | $20,811 | |
Gross Margin % | 84.00% | 84.00% | 84.00% | 84.00% | 84.00% | 84.00% | 84.00% | 84.00% | 84.00% | 84.00% | 84.00% | 84.00% | |
Expenses | |||||||||||||
Payroll | $3,000 | $3,000 | $3,000 | $4,000 | $4,000 | $4,000 | $4,000 | $4,000 | $5,000 | $5,000 | $5,000 | $5,000 | |
Marketing/Promotion | $2,000 | $2,000 | $2,000 | $2,000 | $2,000 | $2,000 | $2,000 | $2,000 | $2,000 | $2,000 | $2,000 | $2,000 | |
Depreciation | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Rent | $200 | $200 | $200 | $200 | $200 | $200 | $200 | $200 | $200 | $200 | $200 | $200 | |
Utilities | $50 | $50 | $50 | $50 | $50 | $50 | $50 | $50 | $50 | $50 | $50 | $50 | |
Insurance | $200 | $200 | $200 | $200 | $200 | $200 | $200 | $200 | $200 | $200 | $200 | $200 | |
Payroll Taxes | 15% | $450 | $450 | $450 | $600 | $600 | $600 | $600 | $600 | $750 | $750 | $750 | $750 |
Education | $400 | $400 | $400 | $400 | $400 | $400 | $400 | $400 | $400 | $400 | $400 | $400 | |
Total Operating Expenses | $6,300 | $6,300 | $6,300 | $7,450 | $7,450 | $7,450 | $7,450 | $7,450 | $8,600 | $8,600 | $8,600 | $8,600 | |
Profit Before Interest and Taxes | ($1,869) | ($1,281) | ($651) | ($940) | $47 | $1,118 | $2,399 | $3,953 | $5,239 | $7,024 | $9,292 | $12,211 | |
EBITDA | ($1,869) | ($1,281) | ($651) | ($940) | $47 | $1,118 | $2,399 | $3,953 | $5,239 | $7,024 | $9,292 | $12,211 | |
Interest Expense | $48 | $45 | $42 | $39 | $35 | $32 | $27 | $23 | $18 | $12 | $6 | $0 | |
Taxes Incurred | ($575) | ($398) | ($208) | ($294) | $3 | $326 | $712 | $1,179 | $1,566 | $2,103 | $2,786 | $3,663 | |
Net Profit | ($1,342) | ($928) | ($485) | ($685) | $8 | $761 | $1,660 | $2,751 | $3,655 | $4,908 | $6,500 | $8,548 | |
Net Profit/Sales | -25.44% | -15.54% | -7.21% | -8.84% | 0.09% | 7.46% | 14.16% | 20.27% | 22.18% | 26.39% | 30.52% | 34.50% |
Pro Forma Cash Flow | |||||||||||||
Month 1 | Month 2 | Month 3 | Month 4 | Month 5 | Month 6 | Month 7 | Month 8 | Month 9 | Month 10 | Month 11 | Month 12 | ||
Cash Received | |||||||||||||
Cash from Operations | |||||||||||||
Cash Sales | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Cash from Receivables | $0 | $176 | $5,298 | $6,000 | $6,759 | $7,789 | $8,968 | $10,251 | $11,787 | $13,672 | $16,546 | $18,690 | |
Subtotal Cash from Operations | $0 | $176 | $5,298 | $6,000 | $6,759 | $7,789 | $8,968 | $10,251 | $11,787 | $13,672 | $16,546 | $18,690 | |
Additional Cash Received | |||||||||||||
Sales Tax, VAT, HST/GST Received | 0.00% | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
New Current Borrowing | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
New Other Liabilities (interest-free) | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
New Long-term Liabilities | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Sales of Other Current Assets | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Sales of Long-term Assets | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
New Investment Received | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Subtotal Cash Received | $0 | $176 | $5,298 | $6,000 | $6,759 | $7,789 | $8,968 | $10,251 | $11,787 | $13,672 | $16,546 | $18,690 | |
Expenditures | Month 1 | Month 2 | Month 3 | Month 4 | Month 5 | Month 6 | Month 7 | Month 8 | Month 9 | Month 10 | Month 11 | Month 12 | |
Expenditures from Operations | |||||||||||||
Cash Spending | $3,000 | $3,000 | $3,000 | $4,000 | $4,000 | $4,000 | $4,000 | $4,000 | $5,000 | $5,000 | $5,000 | $5,000 | |
Bill Payments | $1,121 | $3,626 | $3,913 | $4,218 | $4,451 | $4,934 | $5,460 | $6,090 | $6,857 | $7,849 | $8,729 | $9,848 | |
Subtotal Spent on Operations | $4,121 | $6,626 | $6,913 | $8,218 | $8,451 | $8,934 | $9,460 | $10,090 | $11,857 | $12,849 | $13,729 | $14,848 | |
Additional Cash Spent | |||||||||||||
Sales Tax, VAT, HST/GST Paid Out | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Principal Repayment of Current Borrowing | $175 | $218 | $238 | $259 | $282 | $307 | $335 | $365 | $398 | $434 | $473 | $516 | |
Other Liabilities Principal Repayment | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Long-term Liabilities Principal Repayment | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Purchase Other Current Assets | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Purchase Long-term Assets | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Dividends | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Subtotal Cash Spent | $4,296 | $6,844 | $7,151 | $8,477 | $8,733 | $9,241 | $9,795 | $10,455 | $12,255 | $13,283 | $14,202 | $15,364 | |
Net Cash Flow | ($4,296) | ($6,668) | ($1,853) | ($2,477) | ($1,974) | ($1,452) | ($828) | ($204) | ($468) | $388 | $2,344 | $3,326 | |
Cash Balance | $19,704 | $13,036 | $11,183 | $8,706 | $6,732 | $5,280 | $4,452 | $4,248 | $3,779 | $4,168 | $6,512 | $9,838 |
Pro Forma Balance Sheet | |||||||||||||
Month 1 | Month 2 | Month 3 | Month 4 | Month 5 | Month 6 | Month 7 | Month 8 | Month 9 | Month 10 | Month 11 | Month 12 | ||
Assets | Starting Balances | ||||||||||||
Current Assets | |||||||||||||
Cash | $24,000 | $19,704 | $13,036 | $11,183 | $8,706 | $6,732 | $5,280 | $4,452 | $4,248 | $3,779 | $4,168 | $6,512 | $9,838 |
Accounts Receivable | $0 | $5,275 | $11,074 | $12,501 | $14,251 | $16,417 | $18,827 | $21,585 | $24,909 | $29,598 | $34,526 | $39,280 | $45,365 |
Other Current Assets | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
Total Current Assets | $24,000 | $24,979 | $24,110 | $23,684 | $22,957 | $23,149 | $24,107 | $26,037 | $29,157 | $33,377 | $38,694 | $45,792 | $55,203 |
Long-term Assets | |||||||||||||
Long-term Assets | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
Accumulated Depreciation | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
Total Long-term Assets | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
Total Assets | $24,000 | $24,979 | $24,110 | $23,684 | $22,957 | $23,149 | $24,107 | $26,037 | $29,157 | $33,377 | $38,694 | $45,792 | $55,203 |
Liabilities and Capital | Month 1 | Month 2 | Month 3 | Month 4 | Month 5 | Month 6 | Month 7 | Month 8 | Month 9 | Month 10 | Month 11 | Month 12 | |
Current Liabilities | |||||||||||||
Accounts Payable | $1,000 | $3,496 | $3,773 | $4,070 | $4,287 | $4,753 | $5,258 | $5,863 | $6,596 | $7,559 | $8,402 | $9,473 | $10,853 |
Current Borrowing | $4,000 | $3,825 | $3,607 | $3,369 | $3,110 | $2,828 | $2,521 | $2,186 | $1,821 | $1,423 | $989 | $516 | $0 |
Other Current Liabilities | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
Subtotal Current Liabilities | $5,000 | $7,321 | $7,380 | $7,439 | $7,397 | $7,581 | $7,779 | $8,049 | $8,417 | $8,982 | $9,391 | $9,989 | $10,853 |
Long-term Liabilities | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
Total Liabilities | $5,000 | $7,321 | $7,380 | $7,439 | $7,397 | $7,581 | $7,779 | $8,049 | $8,417 | $8,982 | $9,391 | $9,989 | $10,853 |
Paid-in Capital | $27,000 | $27,000 | $27,000 | $27,000 | $27,000 | $27,000 | $27,000 | $27,000 | $27,000 | $27,000 | $27,000 | $27,000 | $27,000 |
Retained Earnings | ($8,000) | ($8,000) | ($8,000) | ($8,000) | ($8,000) | ($8,000) | ($8,000) | ($8,000) | ($8,000) | ($8,000) | ($8,000) | ($8,000) | ($8,000) |
Earnings | $0 | ($1,342) | ($2,270) | ($2,755) | ($3,440) | ($3,432) | ($2,672) | ($1,012) | $1,740 | $5,394 | $10,303 | $16,802 | $25,350 |
Total Capital | $19,000 | $17,658 | $16,730 | $16,245 | $15,560 | $15,568 | $16,328 | $17,988 | $20,740 | $24,394 | $29,303 | $35,802 | $44,350 |
Total Liabilities and Capital | $24,000 | $24,979 | $24,110 | $23,684 | $22,957 | $23,149 | $24,107 | $26,037 | $29,157 | $33,377 | $38,694 | $45,792 | $55,203 |
Net Worth | $19,000 | $17,658 | $16,730 | $16,245 | $15,560 | $15,568 | $16,328 | $17,988 | $20,740 | $24,394 | $29,303 | $35,802 | $44,350 |
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Updated May 28, 2024 - First published on May 27, 2024
By: Ben Gran
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Small business owners don't usually love thinking about insurance. You're in business to make money, create products, meet people, drive growth, and generate forward momentum in life -- not worry about lawsuits, catastrophic losses, ruinous risks, and worst-case scenarios. But that's exactly why small business insurance is so important: it protects you from the unthinkable worst-case scenarios.
Let's look at what small business liability insurance is all about, and why your business needs it.
Business insurance selection guide.
Choosing the right small business insurance is essential for protecting your assets and ensuring your operations run smoothly in the face of unexpected events. It’s about finding coverage that fits your specific needs and provides peace of mind as you grow. The tool below is designed to guide you through the selection process in a friendly, straightforward manner, helping you secure the perfect insurance plan that safeguards your business’s future.
Here are a few types of risks and threats that you can protect yourself from with small business liability insurance.
A classic example of why businesses need liability insurance is "what if someone slips and falls down the stairs at your restaurant, and sues your business?" Business liability insurance can help defend you against lawsuits, resolve personal injury claims, and pay medical costs for this type of unfortunate situation (and others).
There are various types of property damage and financial costs that your business could be held liable for:
Having property damage insurance coverage can help your business run more smoothly. It gives everyone peace of mind that you, your employees, and your customers are protected in case of accidents, mistakes, or other costly losses.
If your business provides professional services, like accounting, consulting, or advisory services, you can get a customized business liability policy that covers you in case of a lawsuit for professional errors, mistakes, negligence, or misjudgments. This type of coverage is also called "Errors & Omissions" (E&O). The best insurance companies can help you get a liability insurance plan that covers the particular risks facing your industry or profession.
Once your business hires its first employee, and especially after you have many employees, your liability insurance needs become more complicated. Employment practices liability coverage can help protect you in case of a lawsuit by an employee -- such as discrimination, harassment, wrongful termination, or other issues with employment law.
This type of liability insurance is usually not included with a general liability insurance policy; instead, you have to buy this coverage as an add-on endorsement. Also, this insurance is different from workers' compensation insurance, which your state will also likely require you to have for your employees.
Small business owners have a lot to consider: customer needs, product development, staying ahead of competitors, maximizing marketing, beating sales goals, getting paid on time, managing cash flow, paying the bills, and making payroll . The last thing you need in your life is another costly, unexpected check to write. Or worse, a financially and emotionally draining lawsuit that makes you pay legal fees out of your own bank account.
Small business liability insurance makes sure you don't have to pay for all these costs yourself. No matter what size of small business you own, or what industry you're in, you should buy small business liability insurance.
Ready to sign up for small business liability insurance? An independent insurance agent can help you find a good policy. Or if you like the insurance company that covers your home and auto, check to see if they offer business insurance too. The best home insurance companies often offer business insurance coverage, as well as personal policies.
Small business liability insurance is not usually expensive (typical premium costs might start at $40-$55 per month). But it can save you many thousands of dollars and provide priceless peace of mind.
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Ben Gran is a freelance writer based in Des Moines, Iowa. He has written for regional banks, fintechs, and major financial services companies. Ben is a graduate of Rice University.
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Fact Checked
Updated: Jun 19, 2024, 5:47am
We analyzed the official complaint records of 28 insurers and found that Allianz and Clear Blue are the best small business insurance companies.
A good policy will cover your small business for a variety of problems, like workplace injuries, stolen business property, fire, severe weather and lawsuits. But with all of the options available, finding a policy might seem like a daunting task. We can help you identify the best small business insurance companies.
What are the different types of small business insurance, how do i get the best small business insurance, how much small business insurance coverage do i need.
Other small business insurance companies we rated, best small business insurance frequently asked questions, next insurance.
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Insurance Agency Business Plan Template. Written by Dave Lavinsky. Over the past 20+ years, we have helped over 3,000 entrepreneurs and business owners create business plans to start and grow their insurance agencies. On this page, we will first give you some background information with regards to the importance of business planning.
A great business plan can guide you through every critical early step of building your company. As you start your insurance company, your plan can help you refine your vision, set objectives, and define the details of your business. Done right, it can help you secure investors, financing, and more. Done poorly or not at all, your new agency may ...
7 Steps To Build Your Insurance Agency Business Plan. 1. Develop your executive and business summaries. In business plan terms, the executive summary is the driving force behind your other decisions. It should explain why you're starting your agency. The business summary is similar, but it should narrow down your "why" into a list of ...
Starting an insurance business can be an exciting endeavor. Having a clear roadmap of the steps to start a business will help you stay focused on your goals and get started faster.. 1. Develop An Insurance Business Plan - The first step in starting a business is to create a detailed insurance business plan that outlines all aspects of the venture. This should include potential market size and ...
Download Template. Create a Business Plan. If you have an aptitude for convincing people and can identify what insurance works for different customers, then an insurance agency business might work for you. An insurance agency is not only profitable, but also requires lesser skills to get started. But at the same time, it attracts a lot of ...
At a glance: Crafting a well-defined insurance agency business plan provides strategic direction and goal-setting for success. A comprehensive business plan allows for adaptability in an ever-evolving industry. Defining your brand, researching funding options, and staying compliant with regulations, are the ingredients that can transform your ...
The executive summary of an insurance company business plan is a one to two page overview of your entire business plan. It should summarize the main points, which will be presented in full in the rest of your business plan. Start with a one-line description of your insurance company. Provide a short summary of the key points in each section of ...
The executive summary of an insurance agency business plan is a one to two page overview of your entire business plan. It should summarize the main points, which will be presented in full in the rest of your business plan. Start with a one-line description of your insurance agency. Provide a short summary of the key points in each section of ...
Writing an insurance agency business plan can help you outline—and commit to—your goals and objectives, giving you a clearly-defined path to success. . Your business plan for your insurance agency should detail what sets you apart from your competition, your projected profit, and what products you plan to offer.
Get the most out of your business plan example. Follow these tips to quickly develop a working business plan from this sample. 1. Don't worry about finding an exact match. We have over 550 sample business plan templates. So, make sure the plan is a close match, but don't get hung up on the details. Your business is unique and will differ from ...
Running a successful insurance agency requires careful planning and strategic decision-making. Whether you're a seasoned insurance agent or just starting out, having a solid business plan is essential for achieving your goals and staying ahead of the competition. That's where ClickUp's Business Plan Template for Insurance Agents comes in.
Wrapping Up Our Insurance Agency Business Plan Template. 1. Executive Summary. The executive summary provides a brief, comprehensive synopsis of your insurance agency. While it appears at the beginning of your plan, it is often written last to ensure that it encapsulates all critical points from the rest of the sections.
Starting an insurance business can be daunting, especially without a clear roadmap. Luckily, ClickUp's Insurance Agent Business Plan Template is here to guide you every step of the way. This template is designed to help insurance agents and brokers outline their goals, strategies, and financial projections, ensuring a solid foundation for success.
Date 3: Goal 3. Date 4: Goal 4. Date 5: Goal 5. Your operations plan should give readers a clear idea of your company's day-to-day operations, how they are structured, and your long-term goals for the company. Create a winning business plan quickly & easily with our Ultimate Insurance Agency Business Plan Template.
Quaestor Services' financial plan is based on obtaining a loan by January of 2005 of $15,000 to cover the start-up expenses. In July of 2005 an additional $10,000 in financing will be required to ensure business operations, marketing and stability during the first year of operation. For financial forecasting the loan is a seven year loan at ...
Your insurance agency business plan should run about 5,000 words, outlining the following in detail: An executive summary detailing your "vision" for your agency. Description of your company. List of the insurance products your agency plans to offer. Business analysis of your market. Your agency's marketing strategy.
Download Template. Create a Business Plan. An insurance agency can become a profitable business if done right. After all, insurance companies as a business help people deal with uncertainties, and that is something all of us want. And if you have good negotiation skills, are brilliant at planning, and have a thorough knowledge of how insurance ...
Let's also assume I'm an average salesperson and my closing ratio is 35%. Lastly, let's assume I get my prospects from a direct mail campaign and my response rate is 1.5% of pieces mailed. From these assumptions "how much" becomes very clear. I need 56 sales! ($25,000 goal divided by $450 average sale).
A: An insurance agency business plan is crucial for outlining your agency's goals, strategies, and financial projections. It serves as a roadmap for your agency's success, helping you stay focused and make informed decisions. Additionally, a well-crafted business plan is often required by lenders, investors, and partners to assess the viability ...
Adjust it to where it works best for each team member. Block times according to availability. Have someone take an hour in the morning while the other answers service calls and the other in the afternoon, and switch it the next day, so a different person is calling in the morning. Make it a requirement, not an option.
To ensure easy customization, we provide an 'Insurance Agency Business Plan PDF' for download. This document is essential for entrepreneurs committed to developing a robust and successful strategy for initiating or expanding their insurance agency. The 'AI Business Plan Generator' serves as a comprehensive resource, offering critical insights ...
The Total Fee for incorporating the Business - $750. The budget for insurance policies, permits, and licenses - $10,000. The Amount needed to acquire a suitable Office facility in a business district in New York City with 6 months' rent up-front (Re-Construction of the facility inclusive) - $50,000.
Company Summary. Plynthe Insurance is founded by Kolem Plynthe as a local, independent insurance agent providing personal insurance products to residents of Peristyle Gardens and its neighboring towns. The business will begin as a home-based business with Kolem Plynthe as the owner and only employee, and continue to grow through the ...
Small business insurance isn't a fun topic, but it's important. See why every business needs general liability insurance coverage.
Amy Danise is the managing editor for the insurance section at Forbes Advisor, which encompasses auto, home, renters, life, pet, travel, health and small business insurance.
State Farm Life Insurance gets the best life insurance ranking in J.D Power's Individual Life Insurance Study, with a score of 843/1,000. The company is also ranked A++ with AM Best for its ...
Best for Families: AIG Travel Guard offers several types of travel insurance plans: the Annual Travel Plan for all trips in a one-year span, the Pack N' Go Plan for last-minute trips and the ...