Or will they compete with you on all products and all customer groups? What is their market share? What are their strengths and weaknesses? How do you compare? What is your competitive advantage? What makes you unique? Explain the barriers of entry you face. It also can include brand recognition, training and skills, and technology. How will you overcome these barriers? Management and operations What is the legal structure of your agency? C or S corporation? General or limited partnership?
More on the different structure types. Who are the owners and what is their percentage ownership? Also, include profiles of your management team. What is their background, qualifications, expertise? Will you have an advisory board you meet with once a quarter? Who is on the board? What is their background, etc? If you plan to have employees, you should detail the roles and responsibilities.
How many employees? How will you recruit and train your employees? Include an organizational chart to show who does what. What location do you have in mind? What are your physical requirements? Is location important for attracting customers? Is it near competition? What does it cost, including rent, utilities, maintenance, and insurance?
This information will also go in your budget in the finance section. Products and services Describe the products and services you will offer your customers. What lines of business are you going to sell? Here is a summary from the result of the SWOT analysis that was conducted on behalf of May flora brokers. Before that it is important to state that we have taken this really seriously.
Strength: It is compulsory for a business to haven a record of its core strength. Its core strength lies in the power of our team; our workforce. We have a team that can go all the way to give our clients value for their money. We are well positioned and we know we will attract loads of clients from the first day we open our doors for business.
We also have an efficient and effective customized software application that will help carry out seamless insurance activities. Weakness: As a new insurance agency in the United States, it might take some time for our organization to break into the market; that is perhaps our major weakness. Threat: One thing is certain, a weak economy is one major factor that is limiting growth opportunities for the insurance industry. Many companies that primarily offer insurance products to businesses function mainly as brokers.
Captive agencies operate as a sales agent for a single insurer, working on its behalf; independent brokers sell products from several providers.
Demand is related to consumer income and commercial business activity. When the economy grows, so does the demand for personal and business insurance. When the economy contracts, as it did in the late s, demand for insurance falls. The profitability of individual agencies depends on effective marketing, client referrals, and customer service.
Large agencies have advantages in name recognition and connections. The personal lines sector continues to benefit from improved pricing in , helping it to overcome earlier years of declining premiums. While A. Best has maintained its stable rating outlook for the personal lines segment; the rating outlook remains negative for commercial lines insurers given ongoing underwriting pressures and weak economic influences.
Life insurers are facing the continued challenge of the low interest rate environment, putting pressure on assets and interest-linked products. Health insurers continue to adapt to economic and regulatory conditions and as such, the rating outlook was recently revised to stable. However, A. Best is maintaining a negative view on smaller, more specialized companies operating in individual and small-group health insurance. The length of your average business plan is less than it used to be, notes business planner and angel investor Tim Berry.
In most cases, you should be able to cover everything in 20 to 30 pages of text, with another 10 pages for extra details. However, it could certainly be shorter depending upon your needs. His advice is to summarize the information as much as possible and keep it fairly brief. Use short sentences, avoid industry jargon and use bullet points for lists. PlanBuildr also has a great tool that walks you step-by-step through the process. Laying the Groundwork for Success A career as an independent agent can be exciting and rewarding.
But getting your business off the ground requires a considerable amount of planning. This essentially acts as a blueprint with instruction to turn your ideas into a profitable business, the Wolters Kluwer tax and accounting team writes.
Large agencies have advantages in name recognition and connections. When the economy contracts, as it did in the late s, demand for insurance falls. We hope to someday merge or acquire other smaller insurance companies and expand the sales our insurance products and business beyond the shores of the United States of America.
Our target market cuts across people of different class and people from all walks of life, local and international organizations as well. How are you planning to grow your agency? Marketing and Sales Strategy Small business finance writer Georgia McIntyre says your marketing and sales strategy boils down to asking yourself two key questions: How do you plan on reaching your customers?
Purchasing new cars takes precedence. These can be in terms of profitability, market share, etc. Tactics Create awareness that Convenient Insurance is the newest and brightest entrant in the marketplace. What makes you unique?
Performs cash management, general ledger accounting, and financial reporting for one or more properties. Convenient Insurance plans to market to this audience by providing a more diversified selection of offerings. Finally, discuss how you plan on making a profit. Products and services Describe the products and services you will offer your customers. Sponsor a local school sport - such as a soccer team. It will make it easier to write the executive summary.
Take the time to research and create the document. Convenient Insurance will target these customers by relying on its affiliation with Trusted Choice, whose product and service offerings are substantially greater than that of PIA.