Quaestor Services provides accounting and full-charge bookkeeping services, insurance and retirement products to individuals, families, and small businesses.
As a representative of Whelnoan Insurance Company the following product and services are offered:
In the future we intend to offer the following independent products and services:
Accounting and Full-Charge Bookkeeping Services are available at either the client’s location or in our offices on a regular, permanent basis with a schedule that accommodates the client’s needs. Rates are based on the needs of the business. These services include:
In the future we intend to offer the following accounting service:
The market area for Quaestor Services will be focused on three counties, Pleasant, Niceburg and Contented, in Plainstate. These counties are experiencing a combined average growth in population over the 2000 census of 6.45%.
As of 2004, the Whelnoan Insurance Company is the second largest insurance company in Plainstate with 23% of the market share. The overall market for Quaestor is wide open. This business plan has identified over 1.3 million individuals and business as potential clients in the market area.
Quaestor Services has targeted the following market segments:
– | State | Pleasant | Niceburg | Contented | Total | % |
YR 2004 Estimate-Total Population | 4,814,628 | 545,991 | 560,265 | 284,032 | 1,390,288 | 28.9% |
– | – | – | – | – | – | – |
YR 2004 Estimate-15 to 24 years old | 528,756 | 55,264 | 60,509 | 19,652 | 135,425 | 25.6% |
YR 2004 Estimate-24 to 74 years old | 2,224,217 | 255,517 | 265,626 | 136,052 | 657,195 | 29.5% |
Available Market Share 77% | 2,752,973 | 310,781 | 326,135 | 155,704 | 792,620 | 28.8% |
– | – | – | – | – | – | – |
YR 2004 Estimate-Total Housing Units | 2,244,113 | 237,308 | 279,912 | 97,555 | 614,774 | 27.4% |
Available market Share 77% | 1,727,967 | 182,727 | 215,532 | 75,117 | 473,376 | 27.4% |
Housing Units-Owner Occupied | 1,162,922 | 124,254 | 113,154 | 66,028 | 303,436 | 26.1% |
Housing Units-Renters | 119,230 | 9,502 | 13,363 | 7,887 | 30,752 | 25.8% |
– | – | – | – | – | – | – |
YR 2004 Estimate-Small Bus > 20 Emp | 122,452 | – | – | – | 94,288 | 77.0% |
The available market share of 77% represents the market that Whelnoan Insurance has not captured at this time. Although,the entire state is an available marketing area, the tri-county area will be the focus marketing area at this time. The total population of the tri-county area available for marketing is 29% of the total available population in Plainstate.
The first and most important market segment is population broken down by age groups. This can be used for determining the market for personal lines of insurance such as auto and various recreational vehicles, life and life planning products.
Note that the population of 15 to 24 year olds has been separated from the available population as a market segment in itself for determining the possibility of high risk auto insurance policies.
The second market segment is housing units broken down by owner occupied and renters. This can be used for determining the market for personal lines of insurance such as home, townhouses, condominium, renters and mortgage protection.
The third market segment is small businesses with less than 20 employees. This can be used for determining the market for accounting and bookkeeping services and commercial lines of insurance including property and casualty, retirement and workers compensation.
Market Analysis | |||||||
Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | |||
Potential Customers | Growth | CAGR | |||||
Focus Population (Ages 15 to 24 years old) | 6% | 135,425 | 144,160 | 153,458 | 163,356 | 173,892 | 6.45% |
Focus Population (Ages 25 to 74 years old) | 6% | 657,195 | 699,584 | 744,707 | 792,741 | 843,873 | 6.45% |
Small Business (Less than 20 employees) | 6% | 94,288 | 99,757 | 105,543 | 111,664 | 118,141 | 5.80% |
Focus Housing Units (Owned) | 12% | 303,436 | 339,059 | 378,865 | 423,344 | 473,045 | 11.74% |
Focus Housing Units (Rented) | 12% | 30,752 | 34,362 | 38,396 | 42,904 | 47,941 | 11.74% |
Total | 7.93% | 1,221,096 | 1,316,922 | 1,420,969 | 1,534,009 | 1,656,892 | 7.93% |
Quaestor’s competitive edge is our positioning as strategic ally with our clients, who are clients more than customers. By building a business based on long-standing relationships with satisfied clients, we simultaneously build defenses against competition. The longer the relationship stands, the more we help our clients understand what we offer them and why they need it.
The marketing strategy is the core of Quaestor’s main strategy:
Quaestor’s sales strategy will be based on systematic person-to-person contacts through referrals, direct mail, telemarketing and the Internet. A list of potential prospects has already been compiled and will serve as a launching pad for marketing the products and services.
The important elements of the sales forecasts are summarized on three line items, Accounting Services, Insurance Sales, and Miscellaneous Revenue. The summary of the initial sales forecast indicates a first year revenue of $39,500 increasing to over $108,310 by the end of the second year, then $122,110 by the end of the third year. It should be noted that although sales triple in the second year, all revenue has been forecasted very conservatively for the three year forecast. Forecasted sales increases are overstated by the Whelnoan Insurance subsidies or Miscellaneous sales. Actual sales growth for the second year is 160% due to adding a producer for continued sales growth and exponential growth of insurance renewals. The third year of sales reflects an actual growth of 76% due mostly to the increase in insurance renewals. Each element will be discussed separately and in its entirety below:
Accounting Services – it has been determined in order to be conservative for this forecast, that the average accounting client requires services at approximately $500 a month, or 25 hours (x) $20 hour. Obviously this can vary depending on the needs of the client, but for forecasting purposes this is the standard used in determining the monthly revenue. In addition, it is assumed that once our services are sold to the accounting client, they will continue to generate a monthly revenue until replaced. Income tax preparation which will yield a substantial increase in revenue as a future service, but is not considered in this forecast. The illustration below, shows two clients are forecasted for the second year and three clients are forecasted for the third year. Accounting clients can sometimes require substantial time at first, until the clients’ needs are defined and set up. Limited clients are being forecasted due to the time required growing the client base for insurance.
Month | FY2005 | FY2006 | FY2007 |
Jan | – | 1,000 | 1,500 |
Feb | – | 1,000 | 1,500 |
Mar | 500 | 1,000 | 1,500 |
Apr | 500 | 1,000 | 1,500 |
May | 500 | 1,000 | 1,500 |
Jun | 500 | 1,000 | 1,500 |
Jul | 1,000 | 1,000 | 1,500 |
Aug | 1,000 | 1,000 | 1,500 |
Sep | 1,000 | 1,000 | 1,500 |
Oct | 1,000 | 1,000 | 1,500 |
Nov | 1,000 | 1,000 | 1,500 |
Dec | 1,000 | 1,000 | 1,500 |
Sales Increase | – | 50% | 50% |
TOTAL | $8,000 | $12,000 | $18,000 |
Insurance Sales – are comprised of two categories, 1) insurance-new sales and 2) insurance-renewals. The insurance products used to forecast new sales are, auto and high risk auto (renews every six months), property structures such as homes, townhouses, condominiums, renters and landlord insurance, commercial, life and all other types of recreation vehicle insurance, (renews annually). It should be noted that in order to be conservative, not all insurance products that are offered were forecast, such as health, retirement products and plans. Whelnoan Insurance Company District Office supplied the necessary documentation needed for the formulation of the insurance sales and renewals. Sales are based on actual results (averaged) created for the first three years of a new Whelnoan Insurance agency. All numbers have been reviewed and approved by them before the forecast was entered into this business plan.
What makes insurance sales different from other sales are the renewals. In most cases, without an increase in monthly production, the monthly income will almost double due to renewals. It has been determined by Whelnoan Insurance that customer loyalty in the first year is 87%, second year is 85% and third year is 89%. Other than auto, which renews every six months, all other insurance products renew on an annual basis. Because of renewals, it is possible to double sales revenue without increasing production costs. The following is the monthly forecast:
NEW INSURANCE SALES | INSURANCE RENEWALS | TOTAL |
Month | FY2005 | FY2006 | FY2007 | FY2005 | FY2006 | FY2007 | FY2005 | FY2006 | FY2007 |
Jan | 290 | 2,132 | 3,961 | – | 593 | 2,504 | 290 | 2,725 | 6,465 |
Feb | 1,255 | 2,868 | 3,960 | – | 927 | 3,370 | 1,255 | 3,795 | 7,330 |
Mar | 1,290 | 2,901 | 3,961 | – | 954 | 3,424 | 1,290 | 3,855 | 7,385 |
Apr | 1,325 | 3,107 | 4,129 | – | 1,008 | 3,706 | 1,325 | 4,115 | 7,835 |
May | 1,355 | 3,104 | 4,129 | – | 1,026 | 3,641 | 1,355 | 4,130 | 7,770 |
Jun | 1,415 | 3,239 | 4,130 | – | 1,246 | 3,955 | 1,415 | 4,485 | 8,085 |
Jul | 1,490 | 3,405 | 4,466 | 60 | 1,255 | 4,084 | 1,550 | 4,660 | 8,550 |
Aug | 1,490 | 3,408 | 4,468 | 270 | 1,632 | 4,462 | 1,760 | 5,040 | 8,930 |
Sep | 1,490 | 3,407 | 4,468 | 300 | 1,813 | 4,462 | 1,790 | 5,220 | 9,110 |
Oct | 1,525 | 3,609 | 4,803 | 330 | 1,821 | 4,852 | 1,855 | 5,430 | 9,655 |
Nov | 1,525 | 3,504 | 4,299 | 330 | 1,821 | 4,771 | 1,855 | 5,325 | 9,070 |
Dec | 1,525 | 3,955 | 4,300 | 360 | 1,875 | 4,825 | 1,885 | 5,830 | 9,125 |
Sales Increase | – | 142% | 32% | – | 868% | 202% | – | 210% | 82% |
TOTAL | $15,975 | $38,639 | $51,074 | $1,650 | $15,971 | $48,236 | $17,625 | $54,610 | $99,310 |
Miscellaneous – the amounts forecasted in Miscellaneous are Whelnoan Insurance subsidies offered at pivotal times throughout the first two years to financially support the insurance agency during the development stage. The subsidies are broken down into four categories, and require that milestone production levels be achieved before the subsidy is made available, 1) commissions on new sales 2) marketing leads, 3) office space, and 4) staff. At the end of two full years of operations as a career agent, subsidies are no longer available. The total subsidies forecasted in the first year is $13,875, in the second year $41,700, and $4,800 in third year, for a total of $60,375.
Sales Forecast | |||
Year 1 | Year 2 | Year 3 | |
Sales | |||
Accounting Services | $8,000 | $12,000 | $18,000 |
Insurance Sales | $17,625 | $54,610 | $99,310 |
Miscellaneous | $13,875 | $41,700 | $4,800 |
Total Sales | $39,500 | $108,310 | $122,110 |
Direct Cost of Sales | Year 1 | Year 2 | Year 3 |
Direct Cost of Sales (owner/agent salary) | $27,900 | $58,500 | $65,500 |
Other Cost of Sales | $0 | $4,500 | $5,400 |
Subtotal Direct Cost of Sales | $27,900 | $63,000 | $70,900 |
The table below lists important program milestones, with dates and managers in charge. The milestone schedule indicates Quaestor’s emphasis on planning for implementation and the measurement of these activities. In addition, each milestone is important to achieving the financial forecast used in this business plan. The following is a brief description of each milestone:
Whelnoan Insurance Subsidies are available for 24 months only or 4/1/05-03/31/07
Milestones | |||||
Milestone | Start Date | End Date | Budget | Manager | Department |
Business Financing | 12/1/2004 | 1/31/2005 | $0 | Owner | Finance |
Career Agent | 1/1/2005 | 3/31/2005 | $0 | Owner | Marketing |
Accounting Serv-(1st Client) | 1/1/2005 | 2/28/2005 | $0 | Owner | Marketing |
Accounting Serv-(2nd Client) | 3/1/2005 | 6/30/2005 | $0 | Owner | Marketing |
Career Agent (6 mos) | 4/1/2005 | 9/30/2005 | $0 | Owner | Marketing |
Business Financing | 5/1/2005 | 6/30/2005 | $0 | Owner | Finance |
Hire Agent | 11/1/2005 | 12/31/2005 | $0 | Owner | Administrative |
Career Agent (12 mos) | 4/1/2005 | 3/31/2006 | $0 | Owner | Marketing |
Run to Daylight (24 mos) | 4/1/2005 | 3/31/2007 | $0 | Owner | Marketing |
Run to Daylight (36 mos) | 4/1/2005 | 3/31/2008 | $0 | Owner | Marketing |
Run to Daylight (48 mos) | 4/1/2005 | 3/31/2009 | $0 | Owner | Marketing |
Totals | $0 |
The management philosophy of Quaestor Services is based on respect for every client, and individual responsibility. For the first year the only employee will be the owner, Sheila Claflin. In January of 2006 the financial forecast supports the hiring of an insurance agent to help increase the growth of the business.
Quaestor’s intention is to hire only those who demonstrate the qualities necessary for working in a professional environment, and the willingness to move forward in continuing education. We will be hiring the ultimate “people persons” to provide world class service.
The Personnel Plan reflects the staffing levels required to create, and establish the customer base needed to achieve the revenues projected and reach profitability.
All insurance sales and business service personnel salaries are considered a direct cost of sales, and are listed as such in the financials .
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 an interest rate of 9.09%. Quaestor will achieve profitability in the second year.
The fiscal year is a calendar year, January through December.
Start-up costs come to $30,000 of which $15,000 is being financed by a direct owner investment. Before the first six months of operation, $15,000 financing is being sought for the start-up costs. 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.
Start-up Funding | |
Start-up Expenses to Fund | $15,000 |
Start-up Assets to Fund | $13,000 |
Total Funding Required | $28,000 |
Assets | |
Non-cash Assets from Start-up | $3,000 |
Cash Requirements from Start-up | $10,000 |
Additional Cash Raised | $2,000 |
Cash Balance on Starting Date | $12,000 |
Total Assets | $15,000 |
Liabilities and Capital | |
Liabilities | |
Current Borrowing | $0 |
Long-term Liabilities | $15,000 |
Accounts Payable (Outstanding Bills) | $0 |
Other Current Liabilities (interest-free) | $0 |
Total Liabilities | $15,000 |
Capital | |
Planned Investment | |
Owner | $15,000 |
Other | $0 |
Additional Investment Requirement | $0 |
Total Planned Investment | $15,000 |
Loss at Start-up (Start-up Expenses) | ($15,000) |
Total Capital | $0 |
Total Capital and Liabilities | $15,000 |
Total Funding | $30,000 |
The key underlying assumptions of Quaestor financial plan shown in the following general assumption table are:
General Assumptions | |||
Year 1 | Year 2 | Year 3 | |
Plan Month | 1 | 2 | 3 |
Current Interest Rate | 9.09% | 9.09% | 9.09% |
Long-term Interest Rate | 9.09% | 9.09% | 9.09% |
Tax Rate | 20.00% | 20.00% | 20.00% |
Other | 0 | 0 | 0 |
The following table and chart show our Break-even Analysis. The first year due to start-up costs and expenses will not be included in the break-even analysis.
Break-even Analysis | |
Monthly Revenue Break-even | $4,997 |
Assumptions: | |
Average Percent Variable Cost | 71% |
Estimated Monthly Fixed Cost | $1,468 |
Based on the realistic sales projections and efficient cost control measures in place, Quaestor will achieve profitability in the second year of operation. Monthly profitability is first achieved in November 2005, but due to developing a customer base, the first months of operations reflect a loss.
In the second year of operation, sales increased $68,810 or 174%, resulting in a net profit. Significant changes in the second year are the hiring of an agent in January 2006, resulting in additional costs to the direct cost of sales of $34,500 and the set-up of an office outside of the owner’s home and Whelnoan Insurance District 15 office, resulting in additional operating costs of $7,120.
Pro Forma Profit and Loss | |||
Year 1 | Year 2 | Year 3 | |
Sales | $39,500 | $108,310 | $122,110 |
Direct Cost of Sales | $27,900 | $63,000 | $70,900 |
Other Costs of Sales | $0 | $0 | $0 |
Total Cost of Sales | $27,900 | $63,000 | $70,900 |
Gross Margin | $11,600 | $45,310 | $51,210 |
Gross Margin % | 29.37% | 41.83% | 41.94% |
Expenses | |||
Payroll | $0 | $0 | $0 |
Marketing/Promotion | $4,200 | $6,600 | $7,200 |
Depreciation | $1,020 | $2,520 | $3,180 |
Employee Benefits | $2,250 | $3,000 | $3,000 |
Rent | $3,000 | $6,000 | $6,000 |
Utilities | $600 | $1,500 | $1,500 |
Telephone/DSL/Cell | $3,000 | $4,050 | $4,200 |
Office Supplies | $900 | $1,650 | $2,150 |
Professional Services | $250 | $500 | $500 |
Training/Licensing | $290 | $250 | $0 |
Insurance | $900 | $1,200 | $1,200 |
Payroll Taxes | $0 | $0 | $0 |
Miscellaneous | $1,200 | $1,200 | $1,200 |
Total Operating Expenses | $17,610 | $28,470 | $30,130 |
Profit Before Interest and Taxes | ($6,010) | $16,840 | $21,080 |
EBITDA | ($4,990) | $19,360 | $24,260 |
Interest Expense | $1,719 | $1,899 | $1,572 |
Taxes Incurred | $0 | $2,988 | $3,902 |
Net Profit | ($7,729) | $11,953 | $15,607 |
Net Profit/Sales | -19.57% | 11.04% | 12.78% |
Due the fact that Quaestor is a new start-up company, the cash flow for FY2005 is somewhat exaggerated by the instant influx of new capital. Subsequent years however show a healthy growth in cash flow, mainly due to the 84-month repayment of the start-up loan and increased sales.
Pro Forma Cash Flow | |||
Year 1 | Year 2 | Year 3 | |
Cash Received | |||
Cash from Operations | |||
Cash Sales | $33,575 | $92,064 | $103,794 |
Subtotal Cash from Operations | $38,846 | $107,171 | $121,882 |
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 | $10,000 | $0 | $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 | $48,846 | $107,171 | $121,882 |
Expenditures | Year 1 | Year 2 | Year 3 |
Expenditures from Operations | |||
Cash Spending | $0 | $0 | $0 |
Bill Payments | $42,322 | $90,012 | $102,544 |
Subtotal Spent on Operations | $42,322 | $90,012 | $102,544 |
Additional Cash Spent | |||
Sales Tax, VAT, HST/GST Paid Out | $0 | $0 | $0 |
Principal Repayment of Current Borrowing | $0 | $0 | $0 |
Other Liabilities Principal Repayment | $0 | $0 | $0 |
Long-term Liabilities Principal Repayment | $2,387 | $3,440 | $3,766 |
Purchase Other Current Assets | $0 | $0 | $0 |
Purchase Long-term Assets | $0 | $7,500 | $2,000 |
Dividends | $0 | $0 | $0 |
Subtotal Cash Spent | $44,709 | $100,952 | $108,310 |
Net Cash Flow | $4,137 | $6,219 | $13,572 |
Cash Balance | $16,137 | $22,356 | $35,928 |
The table below presents the balance sheet for Quaestor Services. This table reflects a positive cash position throughout the period of this financial plan. The negative net worth is created in the first year due to the start-up costs showing as a negative retained earnings. As the balance sheet shows, Quaestor will not have any difficulty meeting their debt obligations as long as the conservative revenue projections are met.
Pro Forma Balance Sheet | |||
Year 1 | Year 2 | Year 3 | |
Assets | |||
Current Assets | |||
Cash | $16,137 | $22,356 | $35,928 |
Accounts Receivable | $654 | $1,793 | $2,022 |
Other Current Assets | $0 | $0 | $0 |
Total Current Assets | $16,791 | $24,149 | $37,950 |
Long-term Assets | |||
Long-term Assets | $3,000 | $10,500 | $12,500 |
Accumulated Depreciation | $1,020 | $3,540 | $6,720 |
Total Long-term Assets | $1,980 | $6,960 | $5,780 |
Total Assets | $18,771 | $31,109 | $43,730 |
Liabilities and Capital | Year 1 | Year 2 | Year 3 |
Current Liabilities | |||
Accounts Payable | $3,887 | $7,713 | $8,492 |
Current Borrowing | $0 | $0 | $0 |
Other Current Liabilities | $0 | $0 | $0 |
Subtotal Current Liabilities | $3,887 | $7,713 | $8,492 |
Long-term Liabilities | $22,613 | $19,173 | $15,407 |
Total Liabilities | $26,500 | $26,886 | $23,899 |
Paid-in Capital | $15,000 | $15,000 | $15,000 |
Retained Earnings | ($15,000) | ($22,729) | ($10,776) |
Earnings | ($7,729) | $11,953 | $15,607 |
Total Capital | ($7,729) | $4,224 | $19,830 |
Total Liabilities and Capital | $18,771 | $31,109 | $43,730 |
Net Worth | ($7,729) | $4,224 | $19,830 |
The table below presents common business ratios as a reference. Industry Profile comparisons are for Standard Industrial Classification code 6411.0000, Insurance Agents, Brokers and Service as the majority of our revenue comes from insurance sales. However, since the combined business of accounting/bookkeeping services and insurance sales does not fall underneath any predefined Industry dataset, the Industry ratios are not wholly accurate nor representative for Quaestor Services.
Ratio Analysis | ||||
Year 1 | Year 2 | Year 3 | Industry Profile | |
Sales Growth | 0.00% | 174.20% | 12.74% | 8.23% |
Percent of Total Assets | ||||
Accounts Receivable | 3.48% | 5.76% | 4.62% | 24.10% |
Other Current Assets | 0.00% | 0.00% | 0.00% | 69.87% |
Total Current Assets | 89.45% | 77.63% | 86.78% | 94.00% |
Long-term Assets | 10.55% | 22.37% | 13.22% | 6.00% |
Total Assets | 100.00% | 100.00% | 100.00% | 100.00% |
Current Liabilities | 20.71% | 24.79% | 19.42% | 36.78% |
Long-term Liabilities | 120.47% | 61.63% | 35.23% | 9.58% |
Total Liabilities | 141.17% | 86.42% | 54.65% | 46.36% |
Net Worth | -41.17% | 13.58% | 45.35% | 53.64% |
Percent of Sales | ||||
Sales | 100.00% | 100.00% | 100.00% | 100.00% |
Gross Margin | 29.37% | 41.83% | 41.94% | 100.00% |
Selling, General & Administrative Expenses | 48.93% | 30.80% | 29.16% | 74.71% |
Advertising Expenses | 0.00% | 0.00% | 0.00% | 0.48% |
Profit Before Interest and Taxes | -15.22% | 15.55% | 17.26% | 5.37% |
Main Ratios | ||||
Current | 4.32 | 3.13 | 4.47 | 1.82 |
Quick | 4.32 | 3.13 | 4.47 | 1.62 |
Total Debt to Total Assets | 141.17% | 86.42% | 54.65% | 51.49% |
Pre-tax Return on Net Worth | 100.00% | 353.74% | 98.38% | 7.25% |
Pre-tax Return on Assets | -41.17% | 48.03% | 44.61% | 14.94% |
Additional Ratios | Year 1 | Year 2 | Year 3 | |
Net Profit Margin | -19.57% | 11.04% | 12.78% | n.a |
Return on Equity | 0.00% | 282.99% | 78.70% | n.a |
Activity Ratios | ||||
Accounts Receivable Turnover | 9.06 | 9.06 | 9.06 | n.a |
Collection Days | 29 | 27 | 38 | n.a |
Accounts Payable Turnover | 11.89 | 12.17 | 12.17 | n.a |
Payment Days | 27 | 23 | 29 | n.a |
Total Asset Turnover | 2.10 | 3.48 | 2.79 | n.a |
Debt Ratios | ||||
Debt to Net Worth | 0.00 | 6.37 | 1.21 | n.a |
Current Liab. to Liab. | 0.15 | 0.29 | 0.36 | n.a |
Liquidity Ratios | ||||
Net Working Capital | $12,904 | $16,437 | $29,457 | n.a |
Interest Coverage | -3.50 | 8.87 | 13.41 | n.a |
Additional Ratios | ||||
Assets to Sales | 0.48 | 0.29 | 0.36 | n.a |
Current Debt/Total Assets | 21% | 25% | 19% | n.a |
Acid Test | 4.15 | 2.90 | 4.23 | n.a |
Sales/Net Worth | 0.00 | 25.64 | 6.16 | n.a |
Dividend Payout | 0.00 | 0.00 | 0.00 | n.a |
General Assumptions | |||||||||||||
Month 1 | Month 2 | Month 3 | Month 4 | Month 5 | Month 6 | Month 7 | Month 8 | Month 9 | Month 10 | Month 11 | Month 12 | ||
Plan Month | 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 | 11 | 12 | |
Current Interest Rate | 9.09% | 9.09% | 9.09% | 9.09% | 9.09% | 9.09% | 9.09% | 9.09% | 9.09% | 9.09% | 9.09% | 9.09% | |
Long-term Interest Rate | 9.09% | 9.09% | 9.09% | 9.09% | 9.09% | 9.09% | 9.09% | 9.09% | 9.09% | 9.09% | 9.09% | 9.09% | |
Tax Rate | 20.00% | 20.00% | 20.00% | 20.00% | 20.00% | 20.00% | 20.00% | 20.00% | 20.00% | 20.00% | 20.00% | 20.00% | |
Other | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
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 | ||
Sales | |||||||||||||
Accounting Services | 0% | $0 | $0 | $500 | $500 | $500 | $500 | $1,000 | $1,000 | $1,000 | $1,000 | $1,000 | $1,000 |
Insurance Sales | 0% | $290 | $1,255 | $1,290 | $1,325 | $1,355 | $1,415 | $1,550 | $1,760 | $1,790 | $1,855 | $1,855 | $1,885 |
Miscellaneous | 0% | $0 | $0 | $0 | $1,500 | $1,500 | $1,500 | $1,500 | $1,500 | $1,500 | $1,625 | $1,625 | $1,625 |
Total Sales | $290 | $1,255 | $1,790 | $3,325 | $3,355 | $3,415 | $4,050 | $4,260 | $4,290 | $4,480 | $4,480 | $4,510 | |
Direct Cost of Sales | Month 1 | Month 2 | Month 3 | Month 4 | Month 5 | Month 6 | Month 7 | Month 8 | Month 9 | Month 10 | Month 11 | Month 12 | |
Direct Cost of Sales (owner/agent salary) | $2,200 | $2,200 | $2,200 | $2,200 | $2,200 | $2,500 | $2,400 | $2,400 | $2,400 | $2,400 | $2,400 | $2,400 | |
Other Cost of Sales | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Subtotal Direct Cost of Sales | $2,200 | $2,200 | $2,200 | $2,200 | $2,200 | $2,500 | $2,400 | $2,400 | $2,400 | $2,400 | $2,400 | $2,400 |
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 | $290 | $1,255 | $1,790 | $3,325 | $3,355 | $3,415 | $4,050 | $4,260 | $4,290 | $4,480 | $4,480 | $4,510 | |
Direct Cost of Sales | $2,200 | $2,200 | $2,200 | $2,200 | $2,200 | $2,500 | $2,400 | $2,400 | $2,400 | $2,400 | $2,400 | $2,400 | |
Other Costs of Sales | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Total Cost of Sales | $2,200 | $2,200 | $2,200 | $2,200 | $2,200 | $2,500 | $2,400 | $2,400 | $2,400 | $2,400 | $2,400 | $2,400 | |
Gross Margin | ($1,910) | ($945) | ($410) | $1,125 | $1,155 | $915 | $1,650 | $1,860 | $1,890 | $2,080 | $2,080 | $2,110 | |
Gross Margin % | -658.62% | -75.30% | -22.91% | 33.83% | 34.43% | 26.79% | 40.74% | 43.66% | 44.06% | 46.43% | 46.43% | 46.78% | |
Expenses | |||||||||||||
Payroll | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Marketing/Promotion | $350 | $350 | $350 | $350 | $350 | $350 | $350 | $350 | $350 | $350 | $350 | $350 | |
Depreciation | $85 | $85 | $85 | $85 | $85 | $85 | $85 | $85 | $85 | $85 | $85 | $85 | |
Employee Benefits | $0 | $0 | $0 | $250 | $250 | $250 | $250 | $250 | $250 | $250 | $250 | $250 | |
Rent | $250 | $250 | $250 | $250 | $250 | $250 | $250 | $250 | $250 | $250 | $250 | $250 | |
Utilities | $50 | $50 | $50 | $50 | $50 | $50 | $50 | $50 | $50 | $50 | $50 | $50 | |
Telephone/DSL/Cell | $250 | $250 | $250 | $250 | $250 | $250 | $250 | $250 | $250 | $250 | $250 | $250 | |
Office Supplies | $50 | $50 | $100 | $50 | $50 | $100 | $50 | $50 | $100 | $100 | $100 | $100 | |
Professional Services | $0 | $0 | $0 | $0 | $250 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Training/Licensing | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $90 | $100 | $100 | $0 | $0 | |
Insurance | $0 | $0 | $0 | $100 | $100 | $100 | $100 | $100 | $100 | $100 | $100 | $100 | |
Payroll Taxes | 15% | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
Miscellaneous | $100 | $100 | $100 | $100 | $100 | $100 | $100 | $100 | $100 | $100 | $100 | $100 | |
Total Operating Expenses | $1,135 | $1,135 | $1,185 | $1,485 | $1,735 | $1,535 | $1,485 | $1,575 | $1,635 | $1,635 | $1,535 | $1,535 | |
Profit Before Interest and Taxes | ($3,045) | ($2,080) | ($1,595) | ($360) | ($580) | ($620) | $165 | $285 | $255 | $445 | $545 | $575 | |
EBITDA | ($2,960) | ($1,995) | ($1,510) | ($275) | ($495) | ($535) | $250 | $370 | $340 | $530 | $630 | $660 | |
Interest Expense | $113 | $112 | $111 | $110 | $109 | $108 | $181 | $179 | $177 | $175 | $173 | $171 | |
Taxes Incurred | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Net Profit | ($3,158) | ($2,192) | ($1,706) | ($470) | ($689) | ($728) | ($16) | $106 | $78 | $270 | $372 | $404 | |
Net Profit/Sales | -1088.83% | -174.63% | -95.29% | -14.13% | -20.53% | -21.31% | -0.40% | 2.48% | 1.81% | 6.02% | 8.30% | 8.95% |
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 | $247 | $1,067 | $1,522 | $2,826 | $2,852 | $2,903 | $3,443 | $3,621 | $3,647 | $3,808 | $3,808 | $3,834 | |
Subtotal Cash from Operations | $248 | $1,115 | $1,712 | $3,102 | $3,351 | $3,406 | $3,958 | $4,230 | $4,286 | $4,452 | $4,480 | $4,506 | |
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 | $10,000 | $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 | $248 | $1,115 | $1,712 | $3,102 | $3,351 | $3,406 | $13,958 | $4,230 | $4,286 | $4,452 | $4,480 | $4,506 | |
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 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Bill Payments | $112 | $3,363 | $3,363 | $3,421 | $3,718 | $3,962 | $4,055 | $3,984 | $4,071 | $4,127 | $4,122 | $4,023 | |
Subtotal Spent on Operations | $112 | $3,363 | $3,363 | $3,421 | $3,718 | $3,962 | $4,055 | $3,984 | $4,071 | $4,127 | $4,122 | $4,023 | |
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 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Other Liabilities Principal Repayment | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Long-term Liabilities Principal Repayment | $129 | $129 | $130 | $131 | $132 | $133 | $263 | $263 | $266 | $268 | $270 | $273 | |
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 | $241 | $3,492 | $3,493 | $3,552 | $3,850 | $4,095 | $4,318 | $4,247 | $4,337 | $4,395 | $4,392 | $4,296 | |
Net Cash Flow | $7 | ($2,377) | ($1,781) | ($449) | ($499) | ($689) | $9,640 | ($18) | ($52) | $57 | $88 | $209 | |
Cash Balance | $12,007 | $9,630 | $7,850 | $7,400 | $6,901 | $6,212 | $15,852 | $15,834 | $15,783 | $15,840 | $15,928 | $16,137 |
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 | $12,000 | $12,007 | $9,630 | $7,850 | $7,400 | $6,901 | $6,212 | $15,852 | $15,834 | $15,783 | $15,840 | $15,928 | $16,137 |
Accounts Receivable | $0 | $42 | $182 | $260 | $482 | $486 | $495 | $587 | $618 | $622 | $650 | $650 | $654 |
Other Current Assets | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
Total Current Assets | $12,000 | $12,049 | $9,812 | $8,109 | $7,882 | $7,387 | $6,708 | $16,439 | $16,452 | $16,405 | $16,489 | $16,577 | $16,791 |
Long-term Assets | |||||||||||||
Long-term Assets | $3,000 | $3,000 | $3,000 | $3,000 | $3,000 | $3,000 | $3,000 | $3,000 | $3,000 | $3,000 | $3,000 | $3,000 | $3,000 |
Accumulated Depreciation | $0 | $85 | $170 | $255 | $340 | $425 | $510 | $595 | $680 | $765 | $850 | $935 | $1,020 |
Total Long-term Assets | $3,000 | $2,915 | $2,830 | $2,745 | $2,660 | $2,575 | $2,490 | $2,405 | $2,320 | $2,235 | $2,150 | $2,065 | $1,980 |
Total Assets | $15,000 | $14,964 | $12,642 | $10,854 | $10,542 | $9,962 | $9,198 | $18,844 | $18,772 | $18,640 | $18,639 | $18,642 | $18,771 |
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 | $0 | $3,251 | $3,250 | $3,297 | $3,586 | $3,827 | $3,922 | $3,849 | $3,934 | $3,990 | $3,988 | $3,889 | $3,887 |
Current Borrowing | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
Other Current Liabilities | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
Subtotal Current Liabilities | $0 | $3,251 | $3,250 | $3,297 | $3,586 | $3,827 | $3,922 | $3,849 | $3,934 | $3,990 | $3,988 | $3,889 | $3,887 |
Long-term Liabilities | $15,000 | $14,871 | $14,742 | $14,612 | $14,481 | $14,349 | $14,216 | $23,953 | $23,690 | $23,424 | $23,156 | $22,886 | $22,613 |
Total Liabilities | $15,000 | $18,122 | $17,992 | $17,909 | $18,067 | $18,176 | $18,138 | $27,802 | $27,624 | $27,414 | $27,144 | $26,775 | $26,500 |
Paid-in Capital | $15,000 | $15,000 | $15,000 | $15,000 | $15,000 | $15,000 | $15,000 | $15,000 | $15,000 | $15,000 | $15,000 | $15,000 | $15,000 |
Retained Earnings | ($15,000) | ($15,000) | ($15,000) | ($15,000) | ($15,000) | ($15,000) | ($15,000) | ($15,000) | ($15,000) | ($15,000) | ($15,000) | ($15,000) | ($15,000) |
Earnings | $0 | ($3,158) | ($5,349) | ($7,055) | ($7,525) | ($8,213) | ($8,941) | ($8,957) | ($8,852) | ($8,774) | ($8,504) | ($8,133) | ($7,729) |
Total Capital | $0 | ($3,158) | ($5,349) | ($7,055) | ($7,525) | ($8,213) | ($8,941) | ($8,957) | ($8,852) | ($8,774) | ($8,504) | ($8,133) | ($7,729) |
Total Liabilities and Capital | $15,000 | $14,964 | $12,642 | $10,854 | $10,542 | $9,962 | $9,198 | $18,844 | $18,772 | $18,640 | $18,639 | $18,642 | $18,771 |
Net Worth | $0 | ($3,158) | ($5,349) | ($7,055) | ($7,525) | ($8,213) | ($8,941) | ($8,957) | ($8,852) | ($8,774) | ($8,504) | ($8,133) | ($7,729) |
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July 6, 2023
Adam Hoeksema
The insurance agency industry offers substantial potential for growth and success. While some may perceive managing an insurance agency as a simple task, involving only policy sales and customer interactions, it actually requires careful planning and precise execution to thrive. Therefore, having a well-structured business plan is crucial for achieving success in this industry.
Our primary expertise lies in creating insurance agency financial projections . However, we understand that some of our clients seek comprehensive business plans. That's why we've taken the initiative to delve into this topic and cover the following aspects in our comprehensive insurance agency business plan guide and sample plan:
What to include in an insurance agency business plan, insurance agency business plan outline, what type of insurance agency to start, how to analyze the competition for an insurance agency, how to create financial projections for an insurance agency, example insurance agency business plan, insurance agency business plan faqs.
Creating a well-structured business plan is crucial for insurance agency owners seeking financial support from investors, banks, or financial institutions. This plan should encompass a comprehensive evaluation of the insurance market, a clear and strategic approach, and a thoughtful assessment of potential risks and rewards. By showcasing your in-depth understanding of the insurance industry, your growth strategies, and your capability to navigate challenges, a robust business plan increases the likelihood of attracting the necessary funding for your insurance agency venture.
An insurance agency business plan should present persuasive reasons why clients will choose your agency's services, demonstrate why you or your team are the ideal operators for the insurance agency, and provide a robust financial projection to assure potential investors and lenders of the investment's viability. Below is a comprehensive outline of our complimentary insurance agency business plan template.
We suggest the following sections for your Insurance Agency business plan:
Executive Summary
Company Description
Market Analysis
Product and Service Offerings
Marketing Plan & Customer Acquisition
Operating Plan
Financial Plan
Choosing the right type of insurance agency will depend on your interests, expertise, and the market demand in your area. Here are some common types of insurance agencies you could consider starting:
A general insurance agency deals with a wide range of insurance products, including auto insurance, home insurance, business insurance, liability insurance, and more. This type of agency offers a diverse portfolio of insurance products to cater to a broad customer base.
Instead of offering a wide range of insurance products, you can focus on a specific niche or industry. For example, you could start a health insurance agency, life insurance agency, or a commercial property insurance agency. Specializing can allow you to become an expert in a particular area and build strong relationships with clients in that niche.
Independent agencies work with multiple insurance carriers, giving them the flexibility to offer a variety of insurance products from different companies. This model allows you to compare coverage options and find the best policies for your clients' needs.
A captive agency represents a single insurance company and sells only that company's policies. While you have less flexibility in terms of product offerings, captive agencies often benefit from the support and training provided by the parent insurance company.
With the rise of digital technology, you could consider starting an online insurance agency. This model allows you to reach a broader audience and provide insurance services through a website or app. It can be a cost-effective way to start and operate an agency.
Instead of focusing on selling insurance policies directly to clients, you could start an insurance brokerage firm. As a broker, you would act as an intermediary between clients and insurance companies, helping clients find the best coverage at competitive rates.
Before deciding on the type of insurance agency to start, conduct thorough market research to assess the demand for different types of insurance in your area. Also, consider your own skills, knowledge, and passion for specific insurance sectors. Having a clear understanding of your target market and your own expertise will guide you in making the right decision for your insurance agency. Additionally, make sure to comply with all legal and licensing requirements for insurance agencies in your region.
When it comes to analyzing the competition in the insurance agency industry, there are a few valuable tools you can use, with one of the most useful being Ahrefs.
Ahrefs is a powerful SEO tool that enables you to research and dissect your competitor insurance agencies' online presence. By inputting a competitor's website into Ahrefs, you can gain valuable insights into their organic traffic and the specific keywords responsible for driving that traffic. For example, in Indianapolis we can see that Carson Insurance Agency is receiving roughly 100 monthly visitors from organic traffic.
The tool provides valuable data on your competitor's organic traffic and highlights the keywords that are leading visitors to their website.
By understanding the keywords and SEO strategies employed by your insurance agency competitors, you can tailor your content and marketing strategies to effectively compete in the same areas or identify niche segments that may be underserved. This knowledge can help enhance your insurance agency's online visibility, attract more customers through search engines, and position your business for success in the competitive insurance industry.
SWOT Analysis: While not a digital tool SWOT analysis can be incredibly helpful in analyzing competition. SWOT stands for Strengths, Weaknesses, Opportunities, and Threats. By comparing these aspects between your agency and your competitors, you can identify areas where you might have a competitive edge or areas where you need to improve. Many business websites and educational institutions offer free SWOT analysis templates and guides that can be easily adapted for an insurance agency.
In the insurance agency industry, financial projections are influenced by distinct factors such as client acquisition rates, policy pricing, seasonal demand, and operational expenses. Using an insurance agency financial projection template can simplify the process and boost your confidence. However, accurate financial projections serve a greater purpose than just showcasing revenue potential; they paint a clear picture of the path to profitability and the achievement of your insurance business goals. By considering these crucial elements, you can create a solid financial plan that guides your agency towards success and ensures the realization of your objectives.
To create precise projections, follow these key steps:
Estimate startup costs for your insurance agency, including office space, technology infrastructure, licensing and certifications, marketing, and initial staff training.
Forecast revenue based on projected client acquisition rates, average policy premiums, and potential growth in your customer base.
Project ongoing operational costs , such as staff salaries, rent, technology maintenance, marketing expenses, and administrative overhead.
Estimate costs related to providing insurance policies and services, such as commission payouts to agents, underwriting expenses, and claims management.
Calculate the capital needed to launch and sustain your insurance agency, covering initial expenses and providing working capital for continued growth.
While financial projections are essential for your insurance agency's business plan, seek guidance from experienced professionals in the insurance industry. Adapt your projections based on real-world insights, leverage industry resources, and stay informed about insurance market trends and evolving customer preferences to ensure your financial plan aligns with your goals and positions your insurance agency for long-term success.
Explore our comprehensive Insurance Agency Business Plan below. For your convenience, a downloadable Google Doc version of this insurance agency business plan template is available, allowing you to personalize and tailor it to your specific needs. Additionally, a helpful video walkthrough is provided, guiding you through the process of customizing the business plan to perfectly align with your unique insurance agency concept.
1. executive summary.
1.1 Organization Overview
1.2. Objectives
1.3. Mission Statement
2. Organization Description
2.1. Organization History
2.2. Legal Structure
2.3. Unique Value Proposition
2.4. Target Beneficiaries
3.1. industry overview.
3.2. Collaborator and Competitor Identification
3.3. Target Beneficiaries
4. Marketing and Fundraising
4.1. Strategic Plan
4.2. Program or Service Offerings:
4.5. Promotions and Fundraising
5. Organizational Structure and Management
5.1. Organization’s Facility & Location
5.2. Staffing Plan and Volunteer Management
5.3. Governance, Financial Management, and Accountability
6. financial plan.
6.1. Startup Costs
6.4. profit and loss statement, 6.5. cash flow projections, 6.6. break-even analysis, 7. appendix.
7.1. Supporting Documents
7.2. Glossary of Term
7.3. References and Resources
1.1. company overview.
Briefly introduce the company's background, products or services, and target market.
- Example: SecureRide Auto Insurance Agency is a leading provider of auto insurance solutions in Atlanta, Georgia. We specialize in offering comprehensive coverage options tailored to meet the unique needs of drivers in the area.
Outlines the company's short-term and long-term goals.
- Example: Establish SecureRide as the go-to auto insurance agency in Atlanta, capturing a significant market share and achieving a 40% increase in policyholders within the first year.
- Example: Long-term: Expand our presence in Georgia and neighboring states while maintaining a high level of customer satisfaction.
Describes the company's purpose and core values.
- Example: At SecureRide, our mission is to provide reliable and affordable auto insurance coverage to drivers in Atlanta. We are committed to ensuring our customers have the peace of mind they deserve on the road by delivering exceptional service and tailored insurance solutions.
Highlights the factors that will contribute to the company's growth and success.
- Example: Delivering competitive pricing and flexible coverage options tailored to our customer's needs. We prioritize superior customer service, ensuring responsiveness, transparency, and personalized support
2.1. company history.
Provides context on the company's background and founding story.
- Example: SecureRide Auto Insurance Agency was established by Mark and Emily Roberts, who have a combined experience of over 20 years in the insurance industry. Mark brings expertise in risk assessment and underwriting, while Emily has a strong background in sales and customer relations.
Describes the company's legal structure (e.g., sole proprietorship, partnership, LLC, corporation).
- Example: SecureRide Auto Insurance Agency operates as a limited liability corporation (LLC)
Emphasizes the company's competitive advantage or unique offerings.
- Example: SecureRide sets itself apart by offering customizable auto insurance coverage tailored to each client's specific needs. Our advanced technology allows for quick and accurate quotes, efficient claims processing, and a seamless customer experience.
Defines the company's ideal customer base.
- Example: Focuses on serving the residents of Atlanta, Georgia, and its surrounding areas. Our primary target market includes drivers of all ages and backgrounds who seek reliable, affordable, and comprehensive auto insurance coverage.
Presents a general overview of the industry, its trends, and growth potential.
- Example: The auto insurance industry in Atlanta, Georgia, is a thriving and competitive market, driven by the high number of vehicles on the road and the state's insurance requirements. With a growing population and an increasing emphasis on vehicle safety, the demand for reliable auto insurance coverage is expected to continue rising.
Evaluates the company's direct and indirect competitors, as well as their strengths and weaknesses.
- Example: Direct competitors: Atlanta Auto Insurance Company: A national insurance company with a branch in Atlanta, providing a wide range of auto insurance policies.
- Example: Indirect competitors: EasyInsure Online: An online insurance platform that allows customers to compare and purchase auto insurance policies from various providers.
Explores the company's target customers, their demographics, preferences, and pain points.
- Example: SecureRide’s target market in Atlanta, Georgia consists of young professionals, families and homeowners, commuters and business professionals, high-value vehicle owners, and retirees and seniors.
Identifies potential opportunities for the company to grow within the market.
- Example: SecureRide can seize market opportunities by leveraging digital marketing strategies to reach a broader audience, offering innovative coverage options such as usage-based insurance, and establishing partnerships with local car dealerships and auto repair shops.
4.1. product or service offerings: .
Describes the company's products or services in detail.
- Example: SecureRide offers a comprehensive range of auto insurance coverage options, including liability insurance, collision coverage, comprehensive coverage, uninsured/underinsured motorist coverage, and additional specialized coverage for high-value vehicles or specific driver profiles.
Outlines the company's approach to pricing its products or services.
- Example: SecureRide adopts a competitive pricing strategy based on market analysis, offering affordable premiums and flexible payment options to ensure accessibility and value for customers.
Explains how the company plans to generate sales and build
customer relationships.
- Example: SecureRide will leverage a multi-channel sales approach, utilizing a combination of online platforms, direct sales efforts, and strategic partnerships with car dealerships and automotive service providers.
Describes the methods through which the company will deliver its products or services to customers.
- Example: SecureRide primarily operates through its physical office location in Atlanta, Georgia. Additionally, the company will have an online presence through a user-friendly website and mobile app allowing customers to conveniently access information, request quotes, and manage their policies.
Details the company's promotional efforts and advertising strategies.
- Example: SecureRide will implement targeted digital advertising campaigns, including search engine marketing, social media advertising, and online display ads, to increase brand visibility and attract potential customers.
5.1. facility location and layout.
Specify the agency’s physical business location and refers to the internal arrangement and organization of the space.
- Example: SecureRide is strategically located in a prime area of Atlanta, Georgia, ensuring easy accessibility for clients and proximity to major transportation routes. The facility is designed with a customer-centric approach, providing a welcoming reception area, private consultation rooms, and a well-organized layout that promotes efficient workflow and privacy for sensitive discussions
Ensures the agency can effectively serve its clients and provide comprehensive insurance solutions.
- Example: SecureRide has a team of experienced insurance professionals who possess in-depth knowledge of the auto insurance industry, including underwriting, claims processing, risk assessment, and customer service.
Involves the process of providing support to policyholders and potential customers throughout their insurance journey.
- Example: Customer satisfaction and retention are key objectives for SecureRide. The agency strives to deliver personalized assistance to clients, addressing their insurance needs, offering guidance in policy selection, and providing prompt and efficient claims assistance.
Refers to the utilization of advanced technological tools, software systems, and digital platforms .
- Example: SecureRide leverages advanced insurance management systems and technology solutions to streamline operations, enhance efficiency, and improve customer experience. These systems enable seamless policy management, online quoting and applications, secure data storage, claims processing, and effective communication with clients.
All of the unique Insurance Agency projections you see here were generated using ProjectionHub’s Insurance Agency Facility Financial Projection Template . Use PH20BP to enjoy a 20% discount on the template.
Provide a detailed breakdown of the total startup costs requirements, and where you plan for those funds to come from. You will also want to breakdown how the startup costs will be used including working capital to cover losses before the business breaks even.
- Example: Creating a solid financial plan is crucial, and we are taking the necessary steps to ensure the success of SecureRide. We estimate needing around $190,000 to cover our startup costs as well as cover losses until we become cash flow positive. $90,000 will come from personal investment & a small equity investment from another partner, and then we are seeking a $100,000 business loan.
Provides an estimate of the company's future revenue based on market research and assumptions.
- Example: SecureRide projects $359,000 in revenue in the first year. The company anticipates steady growth in revenue over the initial five-year period.
Estimates the company's future expenses, including fixed and variable costs.
- Example: SecureRide's expenses include property lease, accounting, advertising, commissions, utilities, and software costs.
Summarizes the company's revenue, expenses, and net income over a specific period.
- Example: SecureRide’s expects to achieve profitability within the first few years of operation.
Outlines the company's projected cash inflows and outflows.
- Example: SecureRide cash flow projections account for fluctuations & onboarding additional agents.
Determines the point at which the company's revenue equals its expenses.
- Example: SecureRide anticipates reaching its break-even point in year 3 but the industry is very low margin.
Includes any relevant documentation that supports the information presented in the business plan, such as resumes, financial projections, market research data, and permits or licenses.
Provides definitions for industry-specific terms used throughout the business plan to ensure reader comprehension.
Lists any sources or resources referenced during the preparation of the business plan, including industry reports, market research data, and relevant publications.
To start an insurance agency, you'll need to obtain the necessary licenses and certifications, develop relationships with insurance carriers, determine your target market and insurance specialties, establish an office or online presence, create a marketing strategy, and hire and train staff.
To attract clients, develop a strong online presence and professional website, network with other professionals and businesses in related industries, offer valuable content through blog posts or educational resources, utilize social media platforms, and provide exceptional customer service.
The types of insurance your agency should offer may vary based on your target market and expertise. Consider offering common insurance lines such as auto, home, life, health, business, and specialty coverages based on the specific needs of your clients.
Stay updated with the latest insurance trends and regulations by joining industry associations, attending relevant conferences or seminars, participating in continuing education programs, subscribing to industry publications, and actively engaging with insurance carriers and professional networks.
Build trust and credibility by providing transparent and reliable insurance information, maintaining strong relationships with reputable insurance carriers, offering personalized coverage recommendations, being responsive to client needs and inquiries, and being actively involved in the community you serve.
Adam is the Co-founder of ProjectionHub which helps entrepreneurs create financial projections for potential investors, lenders and internal business planning. Since 2012, over 50,000 entrepreneurs from around the world have used ProjectionHub to help create financial projections.
Common troubleshooting questions about projectionhub templates.
Check out the quick and easy ways to address some of the most common troubleshooting questions we hear about the excel templates at ProjectionHub!
Learn 5 key tips to make your startup business plan stand out and secure an SBA loan, from demonstrating market potential to creating realistic financial projections.
It is important for financial projections for a small business or startup to be realistic or else an investor or lender may not take them seriously. More importantly, the founder may make a financial mistake without a reliable plan.
Written by Dave Lavinsky
If you’re looking to start or grow an insurance agency , you need a business plan. Your plan will outline your business goals and strategies, and how you plan on achieving them. It will also detail the amount of funding you need, and if needed, present a case to investors and lenders regarding why they should invest in your business.
In this article, we’ll explain why you should invest the time and energy into creating an insurance agency business plan, and provide you with an insurance agency business plan template that includes an overview of what should be included in each section. Download the Ultimate Insurance Agency Business Plan Template here >
There are many reasons to write a business plan for an insurance agency , even if you’re not looking for funding. A business plan can help you see potential pitfalls in your business strategy, as well as identify opportunities you may not have considered. It can also help you track your progress and adjust your plans as needed.
That said, if you are looking for funding, a business plan is essential. Investors and lenders want to see that you have a solid understanding of your industry, your customers, and your competition. They also want to know that you have a realistic view of your financial situation and how much money you’ll need to get started.
While every business plan is different, there are 10 essential components that all insurance agency business plans should include:
Company description, industry analysis, customer analysis, competitor analysis, marketing plan, operations plan, management team, financial plan.
Keep in mind that you’ll need to tailor this information to your specific type of insurance agency , but these 10 components should be included in every plan.
The executive summary is the first section of your business plan, but it’s often written last. This is because it provides an overview of the entire document.
In the executive summary, briefly explain what your business does, your business goals, and how you plan on achieving them. You should also include a brief overview of your financial situation, including how much money you’ll need to get started.
For organizational purposes, you could create headings for each main section of your business plan to highlight the key takeaways.
For example, your insurance agency executive summary might look something like this:
[Insert Company Introduction / Short Summary]
[Insert Business Goals & How You Plan To Achieve Them]
[Insert Industry Statistics on the Size of Your Market]
[Insert Overview of Competitors & Your Competitive Advantage]
[Insert Information About The Marketing Strategies You Will Use To Attract Clients/Customers]
You can add and/or remove sections as needed, but these are the basics that should be included in every executive summary.
The next section of your insurance agency business plan is the company description, where you’ll provide an overview of your business.
Include information about your:
With regards to the company overview, here you will document the type of insurance agency you operate. For example, there are several types of insurance agencies such as:
For example, an insurance agency company description might look something like this:
We are an X type of insurance agency .
If an existing company: Since launching, our team has served X customers and generated $Y in revenue.
If startup: I conceived [company name] on this date. Since that time, we have developed the company logo, found potential space, etc.
This is just an example, but your company description should give potential investors a clear idea of who you are, what you do, and why you’re the best at what you do.
The next section of your business plan is the industry analysis. In this section, you’ll need to provide an overview of the industry you’re in, as well as any trends or changes that might impact your business.
Questions you will want to answer include:
For example, your industry analysis might look something like this:
The size of the insurance industry is $XX billion.
It is currently growing at an annual rate of XX% and is expected to reach $XX billion by the year 20XX. The insurance industry has been booming in recent years.
Major trends affecting the industry are larger companies consolidating and the rise of digital marketing and e-commerce.
This is just an example, but your industry analysis should give potential investors a clear idea of the overall industry, and how your company fits into that industry.
The next section of your insurance agency business plan is the customer analysis. In this section, you’ll need to provide an overview of who your target customers are and what their needs are.
You want a thorough understanding of your target customers to provide them with the best possible products and/or services. Oftentimes, you will want to include the specific demographics of your target market, such as age, gender, income, etc., but you’ll also want to highlight the psychographics, such as their interests, lifestyles, and values.
This information will help you better understand your target market and how to reach them.
For example, your customer analysis might look something like this:
The demographic (age, gender, location, income, etc.) profile of our target insurance agency customer is as follows:
– Age: 25-60
– Gender: Male/Female
– Location: Anywhere in the United States
– Income: $50,000-$250,000
– Education: College degree or higher
Our core customer interests are as follows:
– Saving money: They are always looking for ways to save money, whether it’s on their insurance premiums or other household expenses.
– Convenience: They value convenience and want to be able to do business with companies that make their lives easier.
In summary, your customer analysis should give potential investors a clear idea of who your target market is and how you reach them.
The next section of your business plan is the competitor analysis. In this section, you’ll need to provide an overview of who your major competitors are and their strengths and weaknesses.
You want to make sure that you have a clear understanding of your competition so that you can position yourself in the market. Creating a SWOT Analysis (strengths, weaknesses, opportunities, threats) for each of your major competitors helps you do this.
For example, your competitor analysis might look something like this:
XYZ Company is our major competitor. Its offerings include this, this and this. Its strengths include XYZ, and its weaknesses include XYZ.
Your competitor analysis should give potential lenders and investors a clear idea of who your major competitors are and how you compare to them.
The next section of your business plan is the marketing plan. In this section, you’ll need to provide an overview of your marketing strategy and how you plan on executing it.
Specifically, you will document your “4 Ps” as follows:
For example, your marketing plan might look something like this:
We offer the following products/services:
We will use a premium pricing strategy to establish ourselves as the highest quality brand.
We will serve customers directly and through a partnership with XYZ company.
As you can see, your marketing plan should give potential investors a clear idea of your marketing objectives, strategies, and tactics.
The next section of your business plan is the operations plan. In this section, you’ll need to provide an overview of your company’s day-to-day operations and how they will be structured.
Your operations plan should be detailed and concise. You want to make sure that potential investors have a clear understanding of your company’s day-to-day operations and how they are structured.
You will also include information regarding your long-term goals for your operations and how you plan on achieving them.
For example, your operations plan might look something like this:
Our company’s daily operations include XYZ.
Our company is structured as follows:
Each department is responsible for XYZ tasks.
Our long-term goals for our operations are to achieve the following over the next five years.
Date 1: Goal 1
Date 2: Goal 2
Date 3: Goal 3
Date 4: Goal 4
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.
The next section of your business plan is the management team. In this section, you’ll need to provide an overview of your management team and their experience.
Your management team ideally includes individuals who are experts in their respective fields. You want to make sure that lenders and investors have a clear understanding of your management team’s qualifications and experience, and feel they can execute on your plan.
For example, your management team might look something like this:
Our management team is comprised of the following X individuals with the following experience.
Team member 1’s qualifications and experience include XYZ.
Your management team should give potential lenders and investors a clear idea of who is on your team and how their qualifications and experience will help your company succeed.
The final core section of your business plan is the financial plan. In this section, you’ll need to provide an overview of your company’s financials.
Your financial plan should give potential investors a clear understanding of your company’s financials. While you may include a summary of this information in this section, you will include full financial statements in the appendix of your business plan.
For example, your financial plan might look something like this:
Our company’s projected revenues over the next five years are $XYZ.
Our company’s projected expenses and net income over the next five years are $XYZ.
This is just an example, but your financial plan should give potential investors a clear idea of your company’s financial projections.
The final section of your business plan is the appendix. In this section, you’ll need to provide any additional information that was not included in the previous sections.
This may include items such as:
By including this information in the appendix, you are allowing potential investors and lenders to learn more about your company.
In summary, writing an insurance agency business plan is a vital step in the process of starting and/or growing your own business.
A business plan will give you a roadmap to follow. It can also help you attract investors and partners.
By following the tips outlined in this article, you can be sure that your business plan will be effective and help you achieve your goals.
Wish there was a faster, easier way to finish your business plan?
With our Ultimate Insurance Agency Business Plan Template you can finish your plan in just 8 hours or less!
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If you're an independent insurance agent, you know that success doesn't happen by chance. It requires strategic planning and a clear roadmap for the future. That's where an insurance agency business plan comes into play.
In this guide, we'll explore what a business plan is, why it's essential, and how to create one tailored to your home insurance agency.
At a glance:
Having a solid roadmap is like holding a compass in a dense forest. It not only guides you on how to become a successful insurance agency, but also ensures you stay on course.
So let’s continue that analogy: you’re on a road trip without a map, compass, or GPS. You might eventually reach your destination, but it would be a long and uncertain journey. Similarly, running an insurance agency without a business plan is like traveling without a guide. A well-crafted plan provides a clear path and helps you stay focused on your goals.
Setting realistic and achievable goals is vital for any business. Your insurance agency business plan acts as a compass, allowing you to establish clear objectives. Whether you want to increase your client base, revenue, or expand your services, a business plan helps you chart the course.
If you find yourself in a place to seek external funding, whether from investors or lenders, a comprehensive business plan is a must. It demonstrates that you've thought through your business strategy, increasing your chances of securing financial support.
The insurance industry is never stagnant, and as such adaptability is key. A business plan isn't set in stone; it's a living document that can be adjusted as circumstances change. If done correctly, it allows you to stay flexible and make informed decisions as market trends shift.
Your business plan is the document that transforms your vision into a tangible reality, ensuring your journey as an independent insurance agent is not only successful but prosperous too.
Let’s explore the key components of an effective business plan, including the executive summary, company overview and more.
The executive summary serves as the elevator pitch for your entire business plan. It's designed to capture the reader's attention and give them a quick, compelling overview of your insurance agency. You'll want to concisely highlight your agency's mission, vision, and goals. Think of it as distilling your agency's essence into a few powerful sentences. It's an invitation for the reader to learn more about your agency's journey.
The company overview is your opportunity to introduce your insurance agency in detail. It's where you set the stage for the rest of your business plan. In this section, you’ll want to dive into the history of your agency, including its founding story, location(s), and size. You should also describe every type of insurance product you offer and provide a snapshot of what makes your agency unique.
The industry analysis puts your industry knowledge to good use. It's all about understanding the broader insurance market, including its trends, challenges, and opportunities. In this section, you'll research and present data and insights into the insurance industry. Discuss market trends, regulatory changes, and any challenges that could impact your independent agency. Identifying opportunities within the industry allows you to position your agency effectively to take advantage of them.
Understanding your target market is essential for tailoring your services and marketing efforts effectively. Create detailed buyer personas that encompass their needs, preferences, and pain points. This information is the foundation for developing products and services that resonate with your audience.
Knowing your competition is about gaining insights into their strengths and weaknesses. When performing your market analysis, or market research, be sure to look at factors like their market share, marketing strategy, pricing models, and customer service practices. Understanding how you stack up against the competition will help you develop a winning strategy that sets your agency apart.
Your marketing plan is the strategic playbook for how you'll attract and retain clients. Specify your marketing channels, both online and offline; outline your budget and set measurable goals. Whether it's through digital advertising, content marketing, or print advertising, your marketing plan should maximize your independent insurance agency's reach and impact.
The operations plan is the behind-the-scenes blueprint for how your independent agency runs day-to-day. Detail your team structure, office setup, and technology requirements. It's about ensuring smooth workflow and efficient service delivery. This section gives a clear picture of how your agency operates on a daily basis.
Your management team is the engine that drives your agency. Introduce the key members of your management team and highlight their expertise. Explain how their skills and experiences contribute to the agency's success.
The financial plan is the heart of your business plan. It's where you demonstrate that your agency is not just a vision but a financially viable venture. For any enterprise, including insurance agencies, it’s important to provide detailed financial projections in your business plan, including income statements, balance sheets, and cash flow statements. Set clear financial goals and explain how you intend to achieve them.
Creating an insurance agency business plan is akin to crafting that roadmap we talked about earlier. But here's the twist—this isn't just any road; it's twisting and on an ever-changing landscape. To navigate it successfully, you need more than just directions; you need insider tips and tricks.
Your brand is more than just a logo; it's who you are. Define your brand identity, including your mission statement, core values, and unique selling proposition. A strong brand will set you apart in a crowded market.
If you need capital to start or expand your agency, explore different funding options, which could include personal savings, loans, or investors. Your business plan should outline your funding needs and how you intend to secure the necessary capital.
Ensure that you comply with all regulatory requirements in your area. This includes obtaining the necessary licenses and insurance policies to operate legally. Failing to do so could jeopardize your agency's success.
Your business plan should include specific, measurable, and time-bound goals. Track key performance indicators to measure your progress and adjust your strategy accordingly. Regularly reviewing and updating your plan keeps you on the path to success.
For an independent insurance agency, a well-crafted business plan is not simply a document; it's a dynamic tool that provides strategic direction, fosters adaptability, and instills investor confidence. By defining your brand, understanding your market, and detailing your operational and financial strategies, your insurance agency business plan becomes the compass guiding you through the complexities of the industry.
With clear goals, a solid management team, and a proactive approach to change, your agency can navigate the insurance industry effectively, ensuring not only agency survival but also sustainable growth
A partnership with Openly empowers you to deliver outstanding service with speed and ease while offering comprehensive coverage tailored to your clients' needs.
About the Author
Alyssa Little | Senior Content Strategist
Alyssa is the Senior Content Strategist at Openly, collaborating with industry thought leaders to provide insightful and informative content in the home insurance space. With over 15 years experience in content marketing strategy, copywriting, and editing, Alyssa has refined her expertise through her work at such companies as Gartner, Nike, and Trupanion. Alyssa holds a BA in History from the University of Puget Sound and an MA in Museum Studies from Newcastle University.
May 18, 2023
December 21, 2023
May 15, 2023
If you want to start a successful insurance agency or expand your current insurance business, you need a business plan.
The following sample insurance business plan provides the key elements to include in a successful insurance agency business plan.
You can download our Insurance Agency Business Plan Template (including a full, customizable financial model) to your computer here.
Below are links to a sample of each of the key sections of a successful insurance agency business plan.
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Home > Business Plan Templates > Insurance Agency Business Plan Template With Examples
Apr 7, 2024 | Business Plan Templates
As you navigate through this insurance agency business plan template, remember that the primary goal is to thoroughly represent your business concept, operational plans, and financial projections for your insurance agency.
This template is merely a guide; it’s essential to tailor it to fit your agency’s unique attributes and market positioning, ensuring your ideas and strategic direction are communicated effectively. Because every insurance agency is different in its own way, it is okay to modify this business plan to suit your specific situation better.
Always back up your findings with solid data wherever possible and provide clear, concise explanations. Insurance can be a complex field for many individuals.
Your ability to simplify these complexities into understandable terms will serve you well in your plan and in the agency’s overall operations.
Table of Contents
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.
Start by succinctly introducing your insurance agency—its name, the types of insurance it covers (auto, health, home, life, etc.), and why it stands out in the market.
Example: SecureNow Insurance Agency is a customer-centric firm that provides holistic, efficient, and tailored insurance solutions. Its primary focus is on auto, home, health, and comprehensive business insurance packages.
Your mission and vision should communicate the agency’s core principles, strategic goals, and commitment to its clientele.
Example: Our mission is to ensure our clients have peace of mind by offering personalised insurance coverage that adequately caters to their particular needs. Our vision is to be the leading insurance agency known for its exceptional customer service and innovative insurance solutions.
Detail the area where your insurance agency primarily operates. Discuss where you have a significant market presence and the main demographic in these regions.
Example: SecureNow operates within the tri-state area, serving thousands of individuals, families, and businesses within these regions, offering them convenience and quicker claim processing.
Briefly describe the kind of insurance services you provide.
Example: SecureNow offers a multitude of comprehensive insurance products – auto insurance for various vehicle classes, home insurance covering homeowners and rentals, health insurance with personalised plans, and business insurance covering liability, worker’s compensation, and commercial property.
Outline your key short-term and long-term goals. These should be SMART (Specific, Measurable, Achievable, Realistic, Time-bound) goals.
Example: Our primary goal for the next year is to grow our customer base by 25% and increase our policy renewal rate to 85%. Over the next five years, we aim to expand into two additional states and to be rated among the top 5 most trusted insurance agencies in our operating regions.
This section offers an in-depth understanding of your insurance agency’s offerings, their relevance, and their potential impact on your customers’ lives.
Describe in detail the insurance products and services your agency provides. Explain the guiding principles for each type of insurance policy.
Example: SecureNow Insurance Agency provides a range of insurance services, each framed to offer our customers maximum protection and peace of mind. They encompass Auto Insurance, accommodating a range of vehicles and drivers; Home Insurance, offering comprehensive coverage for homeowners and renters; Health Insurance, aligning with varying needs and budgets; and Business Insurance, offering tailored solutions from liability to commercial asset protection.
List and highlight the main features of the services under each insurance type.
Example: Our Auto Insurance includes liability coverage, collision, comprehensive, and personalised bundles. Our Home Insurance provides coverage for the structure, personal belongings, liability, and additional living expenses. Health Insurance varies from basic coverage options to more comprehensive plans, including specific disease policies. Business Insurance delivers solutions for property damage, worker’s compensation, liability protections, and more.
Detail who benefits most from your policies, indicating how they are targeted and why they are the principal focus of your services.
Example: Our target customers range from young drivers seeking auto insurance, homeowners and renters needing property protection, individuals and families requiring health coverage, and large and small businesses seeking to mitigate their operational risks. Our focus remains on these groups as they represent a broad segment of the population most in need of reliable, affordable, and customizable insurance solutions.
This section provides a historical background of your insurance agency and insight into its organisational structure.
Specify your agency’s legal status—is it a limited liability company (LLC) , a partnership , a corporation, or a sole proprietorship ? Discuss why the particular business structure was chosen.
Example: SecureNow operates as a Limited Liability Company (LLC), chosen for its protective attributes and flexibility. This structure offers protection against personal liability and provides operational and management flexibilities akin to a partnership.
Briefly introduce your agency’s owners and management, outlining their experience and contributions.
Example: SecureNow is owned and managed by John Doe and Jane Smith. John, a seasoned insurance professional with over 20 years in the industry, manages strategic decisions and partnerships. With an extensive background in customer service and operations, Jane oversees day-to-day operations, ensuring top-notch customer service and smooth agency functioning.
Highlight key milestones in your agency’s history to demonstrate growth and impact over time.
Example: SecureNow was established in 2010 as a two-person firm, initially only offering auto insurance. In 2012, we expanded our services to include home insurance, followed by health insurance in 2015. We introduced our comprehensive business insurance solutions in 2018. Today, we serve over 10,000 clients across the tri-state area, thanks to our continuously expanding product portfolio and customer-centric approach.
This section will depict how your agency operates, generates revenue, and strives towards financial sustainability.
Describe your insurance agency’s main sources of income; this could include commissions, contingency bonuses, and fee-based services.
Example: SecureNow’s primary revenue stream comes from commissions on each policy sold and renewed. We also earn contingency bonuses based on reaching certain targets set by the insurance carriers and fee-based income from consulting services for complex business insurance needs.
Consider any partnerships or collaborations you intend to establish, including partnerships with other businesses, insurance carriers, and influential organisations.
Example: SecureNow is looking to form partnerships with major auto retailers and real estate agencies to provide insurance services to their customers, broadening our customer reach. We are also planning to collaborate with niche insurance carriers, expanding our range of specialised insurance products.
If any special initiatives are planned that can boost agency income or offer significant benefits to your agency, explain them here.
Example: One of our major upcoming initiatives is the launch of a comprehensive mobile app aimed at streamlining claim processes, making it easier for customers to buy, manage, and claim insurance. This app will not only help in customer retention but, with features like refer-a-friend, it will also help attract new customers .
This section offers a deep dive into the market in which your insurance agency operates, including existing market needs, target demographics, and competitive environment.
Describe the insurance-related needs currently observed in your market. Use data and real examples to illustrate these needs.
Example: The tri-state area where we operate has a high concentration of small businesses (over 200,000), representing a significant demand for reliable business insurance solutions. Additionally, with an average of 5 million registered vehicles and a high homeownership rate, there is a substantial need for auto and home insurance packages.
Detail the demographic, socioeconomic, and other relevant characteristics of the customers your agency aims to serve.
Example: Our target market encompasses small business owners in need of robust business insurance, drivers requiring comprehensive, affordable auto insurance, homeowners and renters seeking varying degrees of home insurance, and individuals/families at different life stages seeking health coverage. Our customer base is diverse and spans demographics, posing unique insurance needs, which we aim to cover comprehensively.
Assess other insurance agencies operating in the same space, explore their approach, and underscore how your services differentiate.
Example: While other agencies in the region primarily deal with one or two types of insurance, SecureNow sets itself apart by providing a comprehensive roster of insurance services – auto, home, health, and business. Coupled with our personalised approach and excellent customer service, we offer a one-stop solution for varied insurance needs.
Explain how your agency is positioned to cater to market needs, target demographics, and competitive landscape. Detail your strategy to meet these needs.
Example: SecureNow positions itself as a full-service insurance agency, offering a wide range of products that cater to diverse customer segments under one roof. Our strategy involves educating our customers about their insurance needs and providing them with personalised solutions. We leverage our strong relationships with various insurance carriers to offer competitive rates and comprehensive coverage.
This section outlines how you plan to attract new clients to your insurance agency, generate awareness about your range of services, and retain existing customers.
Outline your approach to increase visibility and generate leads.
Example: SecureNow’s marketing strategy leverages both online and offline channels. We use Search Engine Optimization (SEO) and paid search advertising to increase our online visibility on popular search engines. Simultaneously, we utilise direct mail campaigns, local radio advertisements, and community events to broaden our reach within the local community.
Describe your plan to acquire new customers. This plan may incorporate strategies like referral incentives, partnerships with other businesses, and lead-generation methods.
Example: We focus on customer referrals, offering incentives for every successful referral. SecureNow also plans to collaborate with local automobile dealerships and real estate agencies, providing insurance services to their customers to garner new clients.
Discuss your initiatives to engage with the community beyond the provision of insurance services.
Example: SecureNow regularly holds free insurance education seminars and financial planning workshops for the local community. We sponsor local events and sports teams, contributing to our brand visibility and showcasing our commitment to the community.
This section will cover how your insurance agency functions on a day-to-day basis, detailing staff recruitment, technology needs, and the agency’s operational structure.
Define how you plan to staff your insurance agency—the roles required, standards for each position, hiring plans, and recruitment strategies.
Example: SecureNow intends to recruit a mix of experienced professionals and new talent for roles including Insurance Agents, Customer Service Representatives, and Claims Handlers. We will also employ digital marketing experts to oversee our online presence and a strong management team to lead the agency. We aim to recruit from local colleges and also via online job portals to find individuals passionate about the insurance sector.
Discuss the composition and function of your office. What roles do your employees play, and how are tasks divided among them?
Example: Our office operates with a hierarchy of Management, Sales, Customer Service, and Claims. While the management team oversees agency operations and strategic partnerships, the sales team focuses on acquiring new business and maintaining relationships with existing customers. The customer service team handles customer queries and escalations, and the claims team oversees the smooth processing of insurance claims.
Discuss the technology you need for smooth operation. This might include CRM for client management, digital tools for online marketing, or efficient hardware/software for everyday tasks.
Example: SecureNow utilises a CRM system to manage our client database, policy renewals, and marketing campaign data. We also employ digital tools like Google Analytics for online marketing efforts and use secure data servers to store sensitive data.
Outline your requirements in terms of physical location. Do you need office spaces, meeting rooms, or parking lots?
Example: SecureNow currently operates from a commercial office building with spaces allocated for customer interactions, staff operations, and a meeting room. As a part of our five-year plan, we aim to open two more branch offices within the tri-state area.
This section covers how your insurance agency plans to sell its services to potential customers and retain current clients.
Outline your strategy to sell insurance policies.
Example: SecureNow’s sales approach is primarily consultative, focusing on understanding customer needs and providing tailored insurance solutions. Our sales team is well-trained to communicate the benefits of our policies effectively and clarify any potential questions or doubts.
Discuss your agency’s online presence and how it would be used for customer communication and selling policies.
Example: SecureNow maintains an intuitive website where customers can learn about various insurance products, get quotes, and contact us for further assistance. We also run social media profiles on major platforms, sharing information on insurance basics, updates about our services, and customer success stories.
Explain how you plan to retain customers and enhance their satisfaction.
Example: SecureNow emphasises customer retention through personalised service, timely claim settlements, and regular communication. Our devoted customer service team efficiently handles policy inquiries and claim requests. We also run a loyalty rewards program that offers discounts on policy renewals and additional services for long-term customers.
This section focuses on your agency’s financial aspects, detailing how funds will be generated and utilised.
Detail out whether you’re presenting your current budget or projecting a budget for the next financial year, including income and expenses.
Example: SecureNow’s projected income for the upcoming financial year is $1 million, taking into account commissions, fee-based incomes, and other sources. Operating expenses (office rent, staff salaries, marketing spending) are expected to amount to around $650,000, with profit expected to stand at $350,000 post-tax.
Discuss your proposed financing options, such as loans, investors, etc.
Example : At the moment, SecureNow operates on revenue earned through commissions and fee-based services. However, we are considering inviting investors for future expansion plans and exploring low-interest business loan options for immediate cash flow support.
Detail underlying assumptions in your financial plan, justifying why these assumptions have been made.
Example: Our projected revenue assumes a 15% increase in new policies and a 90% customer renewal rate based on the previous year’s growth. We believe this is achievable given our aggressive marketing plan and the introduction of new insurance products. We have also accounted for a 5% contingency fund in our budget to cover unexpected expenses.
This section includes any additional documents or supporting material related to your agency’s business plan.
Include a visual representation of your insurance agency’s structure.
Example: An organisational chart highlighting the hierarchy from management to sales, customer service, and the claims department will make the agency structure clearer to stakeholders.
Attach resumes or brief bios of key members of your management and staff to assure potential investors, partners, or even customers of their qualifications and expertise.
Example: We have included the resume of our Agency Manager, who has extensive insurance sector experience and has led SecureNow to become one of the most preferred insurance agencies in the area.
Provide a detailed budget if your financial plan references an annual budget with a breakdown of income and expenditures.
Example: An exhaustive breakdown of our annual budget shows our judicious allocation of resources, justifying operational expenses and projected revenues.
Include any market research or customer data analysis that supports your business plan and gives weight to the strategies presented.
Example: Data from a Recent Customer Survey indicates high satisfaction levels with our services, validating our customer-centric approach. Similarly, results from a Market Analysis show a steady demand for comprehensive and personalised insurance solutions in our operating area, supporting our expansion plans.
Remember, an effective business plan doubles as a roadmap for your agency and an instrument of engagement for potential investors, partners, and high-ranking personnel you may seek to attract to your organisation.
Taking the time to complete this process will help you better understand your market, operational, and financial goals, which will help you navigate your insurance agency to success. Good luck!
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All companies need a solid business plan. A business plan gets you off on the right foot, creates a blueprint for your success, and can help you secure outside funding from investors and financial institutions if you need it.
For insurance agencies, many insurance carriers will require you to submit a business plan before they partner with you. Unfamiliar with the process? Here are the basic steps to create an insurance agency business plan.
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All business plans start with a strong Executive Summary. This is a relatively small section that serves as the introduction to your insurance agency.
The Executive Summary should serve as the guiding force of your insurance agency. It can include things such as your mission statement and why you’re opening your agency—if you’re a startup. If your company has had past successes, you can detail these in your Executive Summary as well.
This section should also include your areas of specialty, the opportunity in the market, your plan for capitalizing on the opportunity, and how you plan to separate yourself from the competition.
In this section, you’ll dive deeper into the key aspects of the business. You’ll highlight what makes your insurance agency special. You’ll also want to outline the general structure of your business, such as whether you’re a limited partnership, a general partnership or a sole proprietorship.
Next, outline your company’s history—or your personal history if your company is new. Then, describe how your insurance agency will fill a demand in the market.
End the section with a short analysis of how your company will earn a profit. This part can include a full analysis of your market so you can show how you’ll delineate yourself from other insurance agencies.
Within this company description section, you can also discuss the structure of your organization. This should include the owners of the company and their background as well as the critical decision makers and their pertinent skills.
This section will describe the products and/or services that your insurance agency will offer. You should break down in detail not just the areas you’ll cover but the costs and revenue that you anticipate for each.
For example, you’ll want to include a detailed breakdown of renters insurance, auto insurance, homeowners insurance, life insurance and any other products you plan to offer. Show a projection for each insurance category and the value that you’ll deliver for that category.
It’s important that you fully describe all the basics of each insurance category in this section. Assume that the person who will be reading your business plan will not be fully familiar with what you do.
You shouldn’t get too technical with these categories, so you don’t confuse the reader of the document. Avoid buzzwords that the industry uses, and go with the most basic descriptions you can provide. It’s important that your insurance agency business plan is easy to read and understand.
Any good business plan will describe in detail what the plan is to market and sell the products being offered. This section of your business plan should describe your strategy for reaching customers and then selling them insurance. You should detail your plan for generating and nurturing leads from first contact through final sale.
This plan should include the channels you use to reach this audience. For instance, do you plan on using traditional print media, social media, email, content marketing or some combination of all of the above?
Once you’ve detailed your marketing plan, it’s important to outline how you’ll close deals. This should include not only your internal strategy in terms of personnel and how you’ll sell, but offers, pricing and value propositions that should be attractive to customers.
The final section of an insurance agency business plan will describe one of the most important aspects of any business: your financials. Starting and running any business requires money. This part of the business plan will describe how you’ll obtain that money to get your business off the ground.
Many investors and/or financial institutions will focus heavily on this section of your business plan when they’re making a decision about whether to loan you money or invest in your business.
This section should include a cashflow statement, profit-and-loss statement, sales forecast and balance sheet. If your insurance agency is a startup, you should include projections for all of these, with data and facts to back up your projections.
You could boost your case by providing an analysis of your agency’s break-even mark, which will include how much you need to earn in revenue to make a profit. This section should also include what money you’re bringing to the table to fund your insurance agency, including any personal money or other outside funding you’re using.
The financials section can be highly technical, so you may want to seek the assistance of a certified public accountant when preparing some of these documents.
Are you tired of earning only 50% of your commissions for 100% of your work? Are you ready to live the Good Life? When you join GLIA, you’ll gain access to top-notch technology and premium carriers who will help you eliminate the middle man. Our goal is to give advisors in our network the opportunity to increase their independence and earn more than ever before. With a full suite of insurance products and support services, we’re making it easier than ever for individuals to start their own independent insurance agency!
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Student Health Services (SHS) oversees the Vandal Health Clinic, University of Idaho's health insurance requirement and the Student Health Insurance Program (SHIP). Through these programs, SHS supports the campus community's overall health and wellness.
SHS is here to help you learn more about the Vandal Health Clinic, get help with health insurance and explore other health and wellness resources available on campus.
Our clinicians provide services to Vandal students and their dependents, making everything from wellness checks to illness diagnosis and treatment easy to access.
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Vandal Health and Education is here to provide information on common college health issues, nutrition counseling and answers to tough questions regarding your mental and physical well-being.
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A general liability insurance policy — also known as business liability insurance — protects businesses from claims that result from normal business operations. Get a business liability insurance policy for protection from bodily injuries, medical payments, advertising injuries, and more.
GEICO can help small business owners and contractors get the coverage they need with a general liability insurance quote.
This liability insurance protects your small business from claims that occur during your normal business operations, such as:
The cost of general liability insurance is based on your specific business needs. Your business is unique, and so are the risks. Factors that influence the cost include:
GEICO can help you get an insurance policy with the right coverage at a great price. Start your general liability insurance quote now .
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Protects you from claims costs if you damage someone else's property.
Medical Payments
Payments for accidents that occur on your premises or because of your operations, such as a customer slipping on a wet floor. This is regardless of who is at fault.
Personal & Advertising Injury
If you're sued for libel and slander, this could provide coverage for those claims.
Each business is different, so make sure you're covered with liability insurance for your needs. Examples of businesses that use general liability insurance are:
Check out our insurance for small business page to learn about small business coverages . If you still need guidance on whether general liability insurance is right for you, we're here to help. Contact our licensed agents with any of your concerns or questions.
Many contractors have business owners policies (BOP), but your business may not need all of the coverages that come with a BOP. If you don't require property insurance and aren't responsible for covering payroll or operating expenses, for instance, general liability insurance could be a better solution. These policies save you money by providing the risk protection you need without overwhelming you with the coverages you don't.
Being properly insured with business liability insurance is the best way to protect your company. We're here to help. Here are a few examples of companies that may be better suited to our other business insurance products
This 2-in-1 policy includes general liability plus protection for your property. It can cover:
Example: A fire damages your office. A BOP could cover repairs to your office and help pay your employees' wages while business is interrupted.
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We often recommend professional liability coverage to go with general liability or a BOP.
Example: A client sues a hair stylist for allegedly giving them the wrong cut and color. Professional liability insurance could cover legal defense costs.
A personal auto policy is not enough to cover vehicles used for business. Commercial auto insurance can:
Example: On a job site, a carpenter accidentally backs into the homeowner's car. Commercial auto insurance could cover the damage.
Protects businesses from losses from computer-related attacks, such as malware, phishing, ransomware, or stolen personal data.
This helps provide financial protection for job-related:
Protection against claims of negligence of mistakes which cause bodily harm to another and is usually carried by:
Protects healthcare professionals against claims of injury and medical negligence.
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The above is meant as general information and as general policy descriptions to help you understand the different types of coverages. These descriptions do not refer to any specific contract of insurance and they do not modify any definitions, exclusions or any other provision expressly stated in any contracts of insurance. We encourage you to speak to your insurance representative and to read your policy contract to fully understand your coverages.
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GEICO has no control over the privacy practices of these insurance companies and assumes no responsibility in connection with your use of their websites. Any information that you directly provide to one of these insurance companies is subject to the privacy policy posted on that insurer’s website. All business products offered are written on an admitted basis.
General Liability coverages are written through non-GEICO insurance companies and are secured through the GEICO Insurance Agency, LLC . The information you provide will be shared with our business partners so that they can return a quote. We can help you secure business insurance in all states except Hawaii.
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IR-2024-169, June 20, 2024
WASHINGTON — Following a detailed review to protect taxpayers and small businesses, the Internal Revenue Service today announced plans to deny tens of thousands of improper high-risk Employee Retention Credit claims while starting a new round of processing lower-risk claims to help eligible taxpayers.
“The completion of this review provided the IRS with new insight into risky Employee Retention Credit activity and confirmed widespread concerns about a large number of improper claims,” said IRS Commissioner Danny Werfel. “We will now use this information to deny billions of dollars in clearly improper claims and begin additional work to issue payments to help taxpayers without any red flags on their claims.”
“This is one of the most complex credits the IRS has administered, and we continue to ask taxpayers for patience as we unravel this complex process,” Werfel added. “Ultimately, this period will help us protect taxpayers against improper payouts that flooded the system and get checks to those truly eligible.”
The review involved months of digitizing information and analyzing data since last September to assess a group of more than 1 million Employee Retention Credit (ERC) claims representing more than $86 billion filed amid aggressive marketing last year.
During this process, the IRS identified between 10% and 20% of claims fall into what the agency has determined to be the highest-risk group, which show clear signs of being erroneous claims for the pandemic-era credit. Tens of thousands of these will be denied in the weeks ahead. This high-risk group includes filings with warning signals that clearly fall outside the guidelines established by Congress.
In addition to this highest risk group, the IRS analysis also estimates between 60% and 70% of the claims show an unacceptable level of risk. For this category of claims with risk indicators, the IRS will be conducting additional analysis to gather more information with a goal of improving the agency’s compliance review, speeding resolution of valid claims while protecting against improper payments.
At the same time, the IRS continues to be concerned about small businesses waiting on legitimate claims, and the agency is taking more action to help. Between 10% and 20% of the ERC claims show a low risk. For those with no eligibility warning signs that were received prior to the last fall’s moratorium, the IRS will begin judiciously processing more of these claims.
The IRS anticipates some of the first payments in this group will go out later this summer. But the IRS emphasized these will go out at a dramatically slower pace than payments that went out during the pandemic period given the need for increased scrutiny.
As the additional IRS processing work begins at a measured pace, other claims will begin being paid later this summer following a final review. This additional review is needed because the submissions may have calculation errors made during the complex filings. For those claims with calculation errors, the amount claimed will be adjusted before payment.
The IRS also noted that generally the oldest claims will be worked first, and no claims submitted during the moratorium period will be processed at this time.
The IRS cautioned taxpayers who filed ERC claims that the process will take time, and the agency warned that processing speeds will not return to levels that occurred last summer. Taxpayers with claims do not need to take any action at this point, and they should await further notification from the IRS. The agency emphasized those with ERC claims should not call IRS toll-free lines because additional information is generally not available on these claims as processing work continues.
“These complex claims take time, and the IRS remains deeply concerned about how many taxpayers have been misled and deluded by promoters into thinking they’re eligible for a big payday. The reality is many aren’t,” Werfel said. “People may think they are on safe ground, but many are simply not eligible under the law. The IRS continues to urge those with pending claims to use this period to review the guideline checklist on IRS.gov, talk to a legitimate tax professional rather than a promoter and use the special IRS withdrawal program when there’s an issue.”
Werfel also cautioned taxpayers to be wary of promoters using today’s announcement as a springboard to attract more clients to file ERC claims.
“The whole world has changed involving Employee Retention Credits since the deepest days of the pandemic,” Werfel said. “Anyone applying for this credit needs to talk to a trusted tax professional and closely review the eligibility requirements, not someone playing fast and loose and trying to make a fast buck off well-meaning taxpayers. People need to be cautious of promoters trying to take advantage of today’s announcement to drive more business. People should remember the IRS continues to be very active in our compliance lanes on Employee Retention Credits.”
During the ERC review period, the IRS continued to process claims received prior to September 2023. The agency processed 28,000 claims worth $2.2 billion and disallowed more than 14,000 claims worth more than $1 billion.
The ERC program began as a critical effort to help businesses during the pandemic, but the program later became the target of aggressive marketing well after the pandemic ended. Some promoter groups may have called the credit by another name, such as a grant, business stimulus payment, government relief or other names besides ERC or the Employee Retention Tax Credit (ERTC).
To counter the flood of claims being driven by promoters, the IRS announced last fall a moratorium on processing claims submitted after Sept. 14, 2023, to give the agency time to digitize information on the large study group of nearly 1 million ERC claims, which are made on amended paper tax returns. The subsequent analysis of the results during this period helped the IRS evaluate next steps, providing the IRS valuable information to change the way the agency will process ERC claims going forward.
The findings of the IRS review confirmed concerns raised by tax professionals and others that there was an extremely high rate of improper ERC claims.
The claims followed a flurry of aggressive marketing and promotions last year that led to people being misled into filing for the ERC. After the moratorium was put in place on Sept. 14, the IRS has continued to see ERC claims continuing to come in at the rate of more than 17,000 a week, with the ERC inventory currently at 1.4 million.
In light of the large inventory and the results of the ERC review, the IRS will keep the processing moratorium in place on ERC claims submitted after Sept. 14, 2023. The IRS will use this period to gather additional feedback from partners, including Congress and others, on the future course of ERC.
“We decided to keep the post-September moratorium in place because we continue to be concerned about the substantial number of claims coming in so long after the pandemic,” Werfel said. “These claims are clogging the system for legitimate taxpayers. We worry that ending the moratorium might trigger a gold rush by aggressive marketers that could lead to a new round of improper claims, which would be a bad result for taxpayers or tax administration. We will use this time to consult with Congress and seek additional help from them on the ERC program, including potentially closing down new claims entirely and seeking an extension of the statute of limitations to allow the agency more time to pursue improper claims.”
Given the large number of questionable claims indicated by the new review, the IRS continues to urge those with unprocessed claims to consider the special IRS ERC Withdrawal Program to avoid future compliance issues.
Businesses should quickly pursue the claim withdrawal process if they need to ask the IRS to not process an ERC claim for any tax period that hasn’t been paid yet. Taxpayers who received an ERC check — but haven’t cashed or deposited it — can also use this process to withdraw the claim and return the check. The IRS will treat the claim as though the taxpayer never filed it. No interest or penalties will apply.
With more than 1.4 million unprocessed ERC claims, the claim withdrawal process remains an important option for businesses who may have submitted an improper claim.
The IRS also announced today that compliance efforts around erroneous ERC claims have now topped more than $2 billion since last fall. This is nearly double the amount announced in March following completion of the special ERC Voluntary Disclosure Program (VDP), which the IRS announced led to the disclosure of $1.09 billion from over 2,600 applications. The IRS is currently considering reopening the VDP at a reduced rate for those with previously processed claims to avoid future compliance action by the IRS.
Compliance work on previously processed ERC claims continue, and work continues on a number of efforts to counter questionable claims:
The IRS is currently assessing whether to reopen the special ERC Voluntary Disclosure Program to help taxpayers get into compliance on paid claims and avoid future IRS compliance action, including audits. If the program reopens, the IRS anticipates the terms will not be as favorable as the initial offering that closed in the spring. A decision will be made in coming weeks.
The IRS also reminded those with pending claims or considering submitting an ERC claim about other compliance actions underway:
Criminal investigations: As of May 31, 2024, IRS Criminal Investigation has initiated 450 criminal cases, with potentially fraudulent claims worth nearly $7 billion. In all, 36 investigations have resulted in federal charges so far, with 16 investigations resulting in convictions and seven sentencings with an average sentence of 25 months.
Audits: The IRS has thousands of ERC claims currently under audit.
Promoter investigations: The IRS is gathering information about suspected abusive tax promoters and preparers improperly promoting the ability to claim the ERC. The IRS’s Office of Promoter Investigations has received hundreds of referrals from internal and external sources. The IRS will continue civil and criminal enforcement efforts of these unscrupulous promoters and preparers.
Some promoters told taxpayers every employer qualifies for ERC. The IRS and the tax professional community emphasize that this is not true. Eligibility depends on specific facts and circumstances. The IRS has dozens of resources to help people learn about and check ERC eligibility and businesses can also consult their trusted tax professional . Key IRS materials to help show taxpayers if they have a risky ERC claim include:
From american insurance nw inc..
One of the most common types of business insurance is commercial property insurance, which provides a wide range of coverage for buildings, inventory, equipment, tools and more. Losses from fire, break-in, vandalism, wind and other natural or manmade disasters are examples of what is typically covered.
A basic commercial property insurance policy may be all you need, although the types of coverage can vary between different insurance companies. As an independent insurance agent , American Insurance NW Inc. can help you determine the type of insurance policy and range of coverage that is best for your business.
Do you own a commercial building? If so, do you have enough commercial property insurance to cover replacement costs? Although cost estimators are available, we recommend that you secure an appraisal from a third party to accurately determine the current replacement cost of your building. Give us a call today , and we’ll help you determine if you have enough commercial property insurance for your business.
Most commercial property policies exclude flood as a covered cause of loss. A separate policy must be purchased to protect you from resulting damage. Check your current property insurance policy to be sure you are covered. If you’re unsure, just ask us to review your insurance policy , and we’ll help you find the best solution.
Business personal property insurance covers property at a specified location such as furniture, fixtures, equipment and inventory. Be aware that most commercial property policies have very limited coverage for property taken off the specified location. If you have equipment that is frequently taken off-site to various locations, it is important that you have an inland marine policy (equipment or installation floater).
This coverage reimburses a business owner for lost profits and fixed expenses during the time that a business is closed. It applies while the premises are being restored because of damage from an event such as a fire. Business income insurance may also cover financial losses that occur if civil authorities limit customer access to your neighborhood or business after a disaster. We strongly recommend that all businesses acquire this coverage.
This coverage is separate property coverage specifically designed to protect your computer related equipment. Most commercial property policies have limited coverage for computer networks. EDP broadens the causes of loss to include things like power surges and in some cases virus attacks.
American Insurance NW Inc. understands the business insurance needs of our customers. The right coverage for you is unique – call us today to find out how to protect your business and your future with the right insurance.
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How much life insurance do i need.
Reviewing and updating life insurance coverage, calculating life insurance faqs, how much life insurance do you need.
Affiliate links for the products on this page are from partners that compensate us (see our advertiser disclosure with our list of partners for more details). However, our opinions are our own. See how we rate insurance products to write unbiased product reviews.
Many Americans don't have life insurance, and half of those who do, don't have enough. According to a study from Global Atlantic Financial Group , 43% of Americans don't have life insurance. According to Insure , half of Americans who do have life insurance are underinsured, meaning their death benefit would not cover expenses like mortgage, college, food, debts, and clothing for dependents in the event of their death.
If you have employer-provided group life insurance through your job, note that those policies will end if you retire, are laid off, or are terminated. That is why it is best to have a personal life insurance policy as well.
The best option for determining how much life insurance you need is to speak with a financial professional. However, if you aren't ready to make a call yet, online life insurance calculators can help give you estimates as a starting point.
The goal of life insurance is to ease the burden on your loved ones after your loss—to cover the mortgage, education, and other expenses. It's important to carry an adequate amount of protection so your dependents are fully covered if you pass away.
You'll probably want to get as much life insurance as you can comfortably afford each month. If it would be a struggle to make your premium payments, it's probably too much for you.
Business Insider created three sample scenarios to estimate life insurance needs for people living in Brooklyn, Dallas, and Denver using SmartAsset's life insurance calculator .
Each calculation was based on the following assumptions: a 35-year-old with two kids and a working spouse, with an annual salary of $60,000, owns a median-priced home in their city, plans to pay for children's college tuition at an out-of-state public institution, and has savings and investments.
The charts below show the estimated life insurance policy needed for five different income levels with the above assumptions:
Income replacement needs.
Life insurance replaces your income so the people who rely on you can maintain their standard of living. It covers day-to-day expenses like rent payments, groceries, transportation, and other essential costs.
Although life insurance is widely used to replace income, life insurance for non-income earners may also be as essential. For example, life insurance can cover childcare and household services that a stay-at-home parent would've ordinarily taken care of before they passed away.
An unexpected (or expected in the case of terminal illness) death makes handling debt difficult for those who share financial liabilities with you. Life insurance provides a death benefit to cover outstanding obligations if you were to die.
Life insurance can also cover end-of-life expenses like your funeral service and burial or cremation costs so your loved ones can focus on grieving your passing.
In your life insurance calculations, you'll also want to factor in future financial obligations. For example, if you have children, you may want to ensure they have funds for post-secondary education.
When selecting your death benefit amount, the rule of thumb is to select 10 times your annual income. For example, if you make $75,000 per year, you would purchase a life insurance policy for $750,000 to $1,125,000. It is not uncommon for people to get $1 million in life insurance.
If you have children, you may also want to factor in about $100,000 to $150,000 of post-secondary education coverage for each child.
Multiplying your income gives you a rough estimate of how much life insurance you should purchase. You can use it as a starting point, but there are more accurate ways to determine the amount you need.
The DIME is a more comprehensive method of calculating your coverage needs. DIME entails adding up the following components of your finances:
After adding those up, subtract any current savings or life insurance policies you already carry.
You can use online calculators to get an estimate of how much life insurance you will need. Nonprofit organization Life Happens, for instance, offers an online life insurance calculator that asks a few questions so you can get an estimate of the amount of life insurance coverage you may need.
An online calculator doesn't replace the comprehensive advice you would receive from a financial advisor who would look at your financial situation, goals, and estate planning, says Maria Roloff, a wealth advisor at Northwestern Mutual Insurance . However, it will give you an idea of what to expect when you speak with life insurance specialists.
When considering life insurance, it is wise to consult a financial advisor, accountant, and estate planning attorney to make sure you have the best life insurance coverage for your goals and budget. Your life insurance needs will change as you age and must consider children, marriage, divorce, retirement, and caring for aging parents.
A comprehensive assessment will include whether you need long-term care life insurance, disability insurance, or a combination of permanent and term life insurance . Find someone you trust with knowledge of the different types of life insurance products and a background in estate planning. Business Insider recommends following these steps to find a financial planner.
You can find our guide on the best term life insurance companies here.
Your life insurance needs will fluctuate as your financial and individual situation does. Regular reviews ensure that your coverage amounts remain accurate over time and you're not overpaying for excessive coverage. For example, you may want to purchase additional insurance if a child enters the family or decrease your insurance when your children become adults and leave home.
Be aware that increasing your policy may mean you have to undergo additional underwriting requirements, such as another medical exam or health questionnaire. Also, if you want to decrease your coverage, some insurers may have limitations.
Review your life insurance coverage at least every few years or after significant life events such as marriage, childbirth, purchasing a home, or retirement.
Certain types of life insurance policies, like whole life or universal life, include a cash value component that grows your policy's value over time. You can withdraw or borrow from your cash value to pay for financial goals, such as retirement, your child's education, or long-term care expenses.
If you're single, life insurance can help you cover debts if you have a co-signer, final expenses, or costs to keep your business running. You can also use life insurance to build a financial legacy for loved ones or donate to charities.
Generally speaking, your financial obligations decrease over time (i.e., as your children leave the house, your mortgage gets paid off, etc.) So, younger individuals may need more coverage to cover those long-term financial obligations. Older individuals may carry less coverage, instead focusing on covering final expenses and leaving an inheritance.
Many life insurance companies and financial planning websites offer online calculators to estimate your life insurance needs based on your financial situation and goals.
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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 ...
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. 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 ...
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 ...
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 ...
Explore a real-world insurance company business plan example and download a free template with this information to start writing your own business plan. ... In 1972, the company constructed a new office building in the main business section and over the course of the last 15 years has purchased four other brokerages, one of which led to the ...
This part of the business plan is where you determine and document your marketing plan. . Your plan should be clearly laid out, including the following 4 Ps. Product/Service: Detail your product/service offerings here. Document their features and benefits. Price: Document your pricing strategy here.
4. Register and license your business. Before running your business, you'll need to register with your state, typically with the secretary of state's office. Most insurance businesses will ...
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 any example or template you come across. So, use this example as a starting point and customize it to your needs.
Explore a real-world insurance agency business plan example and download a free template with this information to start writing your own business plan. ... costs to the direct cost of sales of $34,500 and the set-up of an office outside of the owner's home and Whelnoan Insurance District 15 office, resulting in additional operating costs of ...
Briefly introduce the company's background, products or services, and target market. - Example: SecureRide Auto Insurance Agency is a leading provider of auto insurance solutions in Atlanta, Georgia. We specialize in offering comprehensive coverage options tailored to meet the unique needs of drivers in the area. 1.2.
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.
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 ...
Executive Summary - The Executive Summary of your insurance agency business plan should include a brief overview of your entire business plan touching on key points such as the insurance products you offer, your target market, and why customers should choose your insurance agency.
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.
All companies need a solid business plan. A business plan gets you off on the right foot, creates a blueprint for your success, and can help you secure outside funding from investors and financial institutions if you need it. For insurance agencies, many insurance carriers will require you to submit a business plan before they partner with you.
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A general liability insurance policy — also known as business liability insurance — protects businesses from claims that result from normal business operations. Get a business liability insurance policy for protection from bodily injuries, medical payments, advertising injuries, and more. GEICO can help small business owners and contractors ...
You may have seen recent news coverage of customers of financial services companies falling victim to social engineering scams. Scammers impersonate a trusted company to convince their targets into revealing or handing over sensitive information such as insurance, banking or login credentials.
In the Congressional Budget Office's projections of health insurance coverage, 92.3 percent of the US population, or 316 million people, have coverage in 2024, and 7.7 percent, or 26 million ...
IR-2024-169, June 20, 2024 — Following a detailed review to protect taxpayers and small businesses, the Internal Revenue Service today announced plans to deny tens of thousands of improper high-risk Employee Retention Credit claims while starting a new round of processing lower-risk claims to help eligible taxpayers.
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Tanza is a CFP® professional and former correspondent for Personal Finance Insider. She broke down personal finance news and wrote about taxes, investing, retirement, wealth building, and debt ...
A part of the SAVE plan that would have cut monthly bills for millions of borrowers starting on July 1 was put on hold. By Tara Siegel Bernard and Zach Montague Two federal judges in Kansas and ...
California's sclerotic insurance bureaucracy isn't helping anyone. By Rex Frazier. As the leader of an association of homeowners' insurers, I frequently hear from anxious Californians who ...
The Connecticut Citizens Action Group demonstrated against proposed insurance rate hikes in front of the Legislative Office Building on August 21, 2023. ... depending on the plan, and cover 63,277 ...
Sagar Asapur, Head, Sustainable Finance, Climate Risk Horizons, India says that to strengthen the Deposit Insurance and Credit Guarantee Corporation (DICGC) response to climate change, framing a ...