Executive Summary. The Owner Joseph Q. Agent, AAI, CPIA. The Products

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2 Table of Contents Executive Summary... 1 Insurance Services Insurance Products... 2 Overview of the Organization Registered Name Commencement of Operations History Mission Statement Vision Statement Organizational Objectives Organizational Values Founder and Management Team... 4 Strategic and Market Analysis External Environment Analysis Industry Analysis Customer Profile and Market Analysis Competition... 5 Marketing Plan Marketing Objectives Sales Forecasts Sales Assumptions Marketing Strategies Product Marketing Price Distribution Promotion... 7 Personnel Overview Organizational Overview... 8 Key Strategic Issues Sustainable Competitive Advantage Basis for Growth... 9

3 Executive Summary The purpose of this business plan is to grow the business operations of The Main Street Insurance Agency owned and operated by Mr. Joseph Q. Agent. The agency or ( the Company ) is a business devoted to promoting and selling the financial products and insurance polices offered by The Main Street Insurance Agency (fictitious name for sample purposes.) The Owner Joseph Q. Agent, AAI, CPIA Joe Agent holds a Bachelor of Science degree in Risk Management and Insurance from The University of Georgia one of the top ten insurance programs in the country. During his time at UGA, he served as secretary of The University of Georgia Insurance Society and graduated with Magna Cum Laude. Joe holds distinguished certifications as an Accredited Adviser in Insurance (AAI) from The Institutes for CPCU and as a Certified Professional Insurance Agent (CPIA) from the AIMS Society. After graduating from UGA, Joe Agent worked as an insurance broker for Markel Insurance Company in London for ten years. During his tenure with Markel, he won numerous production awards and was recognized by his peers with the prestigious International Rock Star Award. In 2012, Joe returned home to Anytown, Florida and opened The Main Street Insurance Agency, where he serves as the principal producer and president of the agency. Joe is also very involved in the Anytown community. He is a member of the Professional Insurance Agents of Florida, Anytown Kiwanis and the Rotary Club. He also continues to support the Risk Management and Insurance program and spoke at their last Distinguished Alumni Symposium. One of the community activities Joe Agent is most passionate about is kidspack program. The program works with local community volunteers to pack food for children to take into their homes and serve as sustenance when they are not at school. Joe is married to high school sweetheart, Cindy. Together they have two biological daughters, one adopted son and two dogs named Spot and Fido. The Products The Insurance Agency Insurance Agency offers a wide variety of insurance products offered by Acme Insurance Company. These products include: Insurance Automotive Insurance Life Insurance Home Insurance (Owners, Renters, and Condominiums) Health Insurance 1

4 Insurance Services The insurance agency offers a number of insurance products from its retail location. Below is a description of the product lines that the location offers, potentially for Acme Insurance. 2.1 Insurance Products The Insurance Agency offers a number of insurance lines including: Health Insurance (Medical, Dental, and Vision) Automotive Insurance Homeowners, Renters, and Condominium Insurance From these insurance policy sales the agency will generate both commissions based on the number of insurance line sales, and a recurring stream of revenue from ongoing payments made by consumers to the insurance parent company. 2

5 3.1 Registered Name Overview of the Organization The Main Street Insurance Agency. The Company is registered as a regular company in Florida. 3.2 Commencement of Operations The Company commenced full business operations in late History Founded in 2012 and located in Anytown, our company is a full-service insurance and financial services agency. We provide our clients the best insurance services and pricing available for their unique needs. Joseph Q. Agent has been serving the risk management and insurance needs of our clients for almost 20 years. We write Homeowners Insurance, Personal Auto Insurance, Small Business Insurance, Commercial Auto Insurance, Bonds, Life Insurance and more. For more information, please see our website at Call us today (800) Mission Statement It is the goal of the Company to provide our clients with the highest quality financial and insurance products at reasonable prices. 3.5 Vision Statement It is the goal of Mr. Agent to grow the professional insurance agency that will continue to offer outstanding insurance products and service. Management hopes to achieve after tax profits of over $380,000 by the fifth year of operations. 3.6 Organizational Objectives Continue to successfully manage and grow our book of insurance business. Continually improve the quality of service through quality assurance audits. 3

6 3.7 Organizational Values Complete disclosure and transparency regarding all financial transactions with both The Main Street Insurance Agency and our clients. To maintain a committed program for developing new strategies and techniques that will allow the Company to expand both organically and through acquisition. 3.8 Founder and Management Team Mr. Agent has experience with managing business operations, and he now wishes to grow his business, providing commission based and recurring income streams to the business. Mr. Agent has a focus on building the business to its fullest potential by expanding the agency s visibility in the Anytown region. 4

7 4.1 External Environment Analysis Strategic and Market Analysis The Management feels that as more Americans are embracing technology, they are increasingly recognizing their lack of understanding of their true risks and need quality advice and assistance to ensure that their family and all that they have worked for is protected. Blending an on-line and off-line marketing/service model, we will provide them what they need in the manner they want it. Currently, the general economic outlook for the country is good. The Gross Domestic Product has experienced growth, and as interest rates have remained stable, Management sees no reason to worry about an economic recession or correction within the near future. However, in the event of another major terrorist attack, the industry and the general economy will most likely go into an economic pullback. 4.2 Industry Analysis As Florida has remained hurricane-free for the past 8 seasons and the continued volatility of the real estate and stock markets, capital is rapidly returning to the insurance markets. Capacity has dramatically increased and provides a new reason to examine and accept risks that had previously been scuttled. Additional opportunities to capture business from the Citizens Property Insurance Clearinghouse program will make it more essential than ever that carriers have a strong agents force that will produce and commit business to them. 4.3 Customer Profile and Market Analysis There are over 2,000,000 people living in the Anytown, FL area. Among these people, 340,000 are home owners with the remaining population renting an apartment or condominium. Additionally, 1,700,000 people are over the age of 18. For our insurance business, we will provide insurance policies for any person that is seeking an automotive, life, health, or home insurance policy. 4.4 Competition In the Anytown, FL area there are several insurance agencies that offer products that are identical or substantially similar to that of the Company. These competitors include: Paul s Agency Michael Feld s Agency Anytown Insurance Agency Among underwriters, local competition includes: American Insurance (fictitious name) Builder s Insurance (fictitious name) 5

8 Marketing Plan 5.1 Marketing Objectives Establish a strong presence in targeted Anytown market. Build a large referral network through local accountants and attorneys. Establish connections with automotive distributors for insurance referrals. 5.2 Sales Forecasts 5.3 Sales Assumptions Year 1 The Company expects to attain $534,000 of sales in the next year. Management anticipates a gross margin of $518,500 in the next twelve months of operation. Year 2 Management s aggressive marketing strategies should increase sales by 12%. Gross yearly sales will reach $598,750. Gross profits from insurance policies will exceed $579,000. 6

9 Years 3-5 The Company s intends to grow its sales operations by 8% for each successive year of operation. The Main Street Insurance Agency, during this time, may seek to develop additional offices that will greatly expand the insurance sales capabilities of the business. 5.4 Marketing Strategies The Company intends to create a referral network from local accountants, attorneys, and regional automotive dealerships. Additionally, Management expects that local wordof-mouth referrals will also be an immense asset to the business. The Company will also advertise via the Internet and through traditional print media for the local Anytown, FL market. This strategy will include listings in the local phone books and newspapers. 5.5 Product Marketing As Mr. Agent will act as agent for The Insurance Agency, product marketing is handled by the parent company Price As each insurance policy and financial service sale will rendered a different dollar amount result, Management has not set a price for its services. However, Management expects that it will earn a 93% contribution margin on its revenues Distribution All insurance policy sales and financial services will be rendered at the Company s location in Anytown Promotion In addition to creating a referral network, Management will seek to promote the business through a local marketing effort which will include advertisements in local circulars, local trade journals, newspapers, and through the sponsorship of community events. 7

10 6.1 Organizational Overview The Company will be organized as follows: Personnel Overview 8

11 Key Strategic Issues 7.1 Sustainable Competitive Advantage The Company will be able to maintain successful business operations because of the following: The ability to create a synergy among the services offered by the Company so that the each client can have their insurance needs met. An owner that is duly licensed in the State of Florida. 9.2 Basis for Growth The Insurance Agency will grow through three main avenues: The successful marketing and growth of the referral network. Hiring of a new 2-20 producer and a 4-40 customer service representative to increase the Company s book of business. Development of satellite offices within Anytown. 9

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13 Production Report for The Main Street Insurance Agency Total Written Premium Trailing 12 Months Written Premium YTD Written Premium Prior YTD $ 1,263, $ 80, $ 97, % Change in Written Earned Premium YTD Earned Premium Prior YTD Premium YTD 18% $ 105, $ 134, % Change in Earned Premium YTD Ultimate Loss Ratio YTD Policies in Force YTD 21% 58% 568 Policies in Force Prior % Change in Policies in YTD Force YTD %

14 Big Time Insurance Carrier 123 1st St. Anywhere, FL Year Auto Special Lines Commercial Auto Total Written Premium Loss Ratio % Written Premium Loss Ratio % Written Premium Loss Ratio % Written Premium Loss Ratio % 2014 YTD $228, % $2, % $12, % $243, % 2013 $2,421, % $45, % $354, % $2,821, % 2012 $2,524, % $65, % $481, % $3,071, % 2011 $2,528, % $65, % $354, % $2,948, % Total $7,473, % $176, % $1,190, % $8,841, % YTD $7,702, % $179, % $1,203, % $9,085, %

15 New Producer & CSR Short Bios Jane A. Doe Jane Doe began working part-time in the fall of 2009 while completing her bachelor s degree from the University of Insurance. Having graduated in 2010, Jane has been working with The Main Street Insurance Agency as a Customer Service Representative; however, she recently obtained her General Lines and Life & Health licenses and is looking to move into an agent s role as a producer. Jane is an active member of the Junior League of Anytown and has a passion for underwater basket-weaving. Will C. Smith Will Smith is a licensed Customer Service Representative. He joined the Anytown Insurance Agency in Prior to joining the insurance industry, Will served in the United States Navy, where he completed SEAL Training. Will is involved in the Anytown Chamber networking groups, and several other community organizations. He has expressed interest in working with The Main Street Insurance Agency for the upward mobility that we can provide