BUSINESS PLAN

[YEAR]

Insurance Agency
You’re in good hands

 John Doe
 10200 Bolsa Ave, Westminster, CA, 92683
 (650) 359-3153
 info@example.com
 http://www.example.com

Information provided in this business plan is unique to this business and confidential;
therefore, anyone reading this plan agrees not to disclose any of the information in this
business plan without prior written permission of the Company
Table of Contents

Executive Summary 5

Mission 6

Objectives 6

Keys to Success 7

Financial Considerations 7
3 Year profit forecast 8

Business Summary 9

Overview 10

Start-up Summary 10
Startup cost 11

Funding Required 11

Company Ownership 12

Products and Services 13

Services 14

Market Analysis 16

Service Business Analysis 17

Competition and Buying Patterns 17

Market Segmentation 18
Market Analysis 18

Target Market Segment Strategy 19

Strategy and Implementation Summary 20

Competitive Edge 21

Marketing Strategy 21

Sales Strategy 22
Sales Forecast 22

Sales Yearly 22

Milestones 24

Insurance Agency | Business Plan [YEAR] 2/39

Management Summary 25

Personnel Plan 26

Financial Plan 27

Start-up Funding 28

Important Assumptions 29

Brake-even Analysis 30

Projected Profit and Loss 30

Projected Cash Flow 33

Projected Balance Sheet 34

Business Ratios 35

Insurance Agency | Business Plan [YEAR] 3/39

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1.

Executive Summary
Mission
Objectives
Keys to Success
Financial Considerations
Insurance Agency | Business Plan [YEAR] 5/39
 Before you think about how to start Insurance services, you must create a
detailed Insurance agent business plan. It will not only guide you in the initial
phases of your startup but will also help you later on.
To unlock help try Upmetrics! 

 Ex :: Lifemax

Lifemax Insurance will be the newest and brightest independent personal insurance brokerage
located in The Woodlands, (Northern Houston), Texas. The business will be launched by Greg
Bell, a newly licensed insurance agent, as a home-based business and grown in future years to
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a small office where Lifemax can collaborate with associate agents. They serve the adult
population of the town with insurance advice, a variety of policy types, and selection from any
Start writing here..
insurance provider available on the market. Lifemax's track record as a salesperson positions
him well for success in the insurance business.

Mission

 Ex :: Lifemax

The mission of Lifemax Insurance is to create a more protected community by offering

property, casualty, and life insurance to residents of The Woodlands from a wide range of
insurance sources.
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Start writing here..

Objectives

 Ex :: Lifemax

Lifemax Insurance believes that in order to provide the broadest (and best!) selection of
insurance services the company must continue to grow. In order to grow the business, Lifemax
Insurance must meet the following objectives:
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1. Build revenues quickly in the first year of operations.

Start writing
2. Renthere..
an office and add an associate insurance agent in the second year of operations.
3. Reach revenues double in the third year of operations with a reasonable net profit.

Insurance Agency | Business Plan [YEAR] 6/39

Keys to Success

 Ex :: Lifemax

In order to accomplish its objectives, Lifemax Insurance believes the following are the Keys to
Success:

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1. Remain independent of direct affiliate ties to any specific insurance providers
2. Think of each client's needs holistically to consider all the potential risks in their lives
Start writing here.. a reputation of care, fairness, empathy, and expertise
3. Maintain

Financial Considerations

 Ex :: Lifemax

Lifemax Insurance stands to be a profitable business which will provide salary and dividends
for Greg Bell, its sole owner. Salary to Lifemax plus profits will increase moderately but steadily.
The business can be launched without external investment or loans, relying only on Lifemax's
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savings and personal borrowings. To finance expansion to an office, Lifemax Insurance will
require a long-term loan taken out in its second year of operation.
Start writing here..

Insurance Agency | Business Plan [YEAR] 7/39

3 Year profit forecast

Financial Year Sales Gross Margin Net Profit

Year1 10,000 500 6,000

Year2 12,000 800 8,000

Year3 14,000 1,200 10,000

Insurance Agency | Business Plan [YEAR] 8/39

2.

Business Summary
Overview
Start-up Summary
Funding Required
Company Ownership
Insurance Agency | Business Plan [YEAR] 9/39
Overview

 Ex :: Lifemax

Lifemax Insurance is founded by Greg Bell as a local, independent insurance agency providing
personal insurance products to residents of The Woodlands and its neighboring towns. The
business will begin as a home-based business with Greg Bell as the owner and only employee,
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and continue to grow through the establishment of a local office and the addition of associate
agents to better serve the community. Greg Bell is an experienced salesperson and newly
Start writinginsurance
certified here.. agent. The business will broker insurance purchases for property insurance
(home & contents, valuable possessions, renter's insurance), personal liability, and life
insurance.
Start-up Summary

 Ex :: Lifemax

Lifemax Insurance requires very little in the way of start-up funding. Expenses include the
licenses for Greg Bell and the business, business insurance, stationery (business cards and
brochures), and a basic website. Rent will not be required at the outset as Greg Bell will operate
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out of a home office. Most of the start-up funding is required to cover operating expenses until
break-even is achieved halfway through the first year of operation.
Start writing here..

Insurance Agency | Business Plan [YEAR] 10/39

Startup cost

Cost distribution Amount

Expenses 1,550

Assets 1,800

Investment 2,050

Funding Required

Startup Expenses Amount

Legal (license and permits) $2,000

Stationery $2,000

Insurance $1,000

Rent $0

Computer $2,000

Website $1,000

Total Startup Expenses $8,000

Startup Assets

Cash Required $24,000

Other Current Assets $0

Long-term Assets $0

Insurance Agency | Business Plan [YEAR] 11/39

 Startup Expenses Amount

Total Assets $24,000

Total Requirements $32,000

Company Ownership

 Ex :: Lifemax

Lifemax Insurance is founded and owned entirely by Greg Bell. The business is currently
incorporated as a sole proprietorship with a registered DBA but will reincorporate as an LLC
when there is a need to hire additional employees and open an office.
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Start writing here..

Insurance Agency | Business Plan [YEAR] 12/39

3.

Products and Services

Services

Insurance Agency | Business Plan [YEAR] 13/39

 Before starting an Insurance Agent business, you must take many things into
consideration such as you must consider what types of Insurance services
will you be providing to your customers. Deciding your services is extremely
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important since it helps you plan other components of your business so
make sure to consider it before you think about how to start an Insurance
services business.
 Ex :: Lifemax

Lifemax Insurance will offer the following personal insurance products:

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Start writing here..

Services

Home and Contents Valuable Items

 Homeowner's Insurance Condo

Insurance Cooperative Insurance  Jewelry Fine Art Silver Furs Other
Collectible Items
Renter's Insurance Seasonal and
Secondary Locations Flood
Insurance

Life Insurance

 Personal Liability
 Term Life Variable Life Whole Life
Second-to-Die

 Long-term Care
 Long-term Disability

 Ex :: Lifemax

All of these products will be offered to individuals and not businesses. The insurance products
will be provided by any of the major insurance providers in existence, with attention paid to
smaller providers who offer specialized insurance products.
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While offering these products, Lifemax Insurance will provide the following services:

• Consult
Start writing here..with clients on their insurance needs to determine a course of action
• Assist existing clients with insurance claims and understanding their insurance policy

Insurance Agency | Business Plan [YEAR] 14/39

Insurance Agency | Business Plan [YEAR] 15/39
4.

Market Analysis
Service Business Analysis
Market Segmentation
Target Market Segment Strategy

Insurance Agency | Business Plan [YEAR] 16/39

 The most important component of an effective Insurance agent business
plan is its accurate marketing analysis. If you are starting on a smaller scale,
you can do the market analysis yourself by taking help from this Insurance
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agent business plan sample or other sample Insurance agent business plans
available online.

 Ex :: Lifemax

Walter will be concentrating on servicing just two types of clients, the gift shops of
Leavenworth, Washington, and the farmers of the Puget Consumers Co-op. For both market
segments, we have secured exclusive contracts or endorsements that put us in a unique
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position to service these niche firms and their more demanding needs.

Profitability
Start in these two markets is expected to be excellent, especially in the import segment
writing here..
as Leavenworth draws in over a million tourists each year. We expect profitability in the co-op
end to be much slower in the first five years of operation but will increase steadily.
Service Business Analysis

 Ex :: Lifemax

The United States Department of Labor offers the following summary of the insurance industry:

Most people have their first contact with an insurance company through an insurance sales
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agent. These workers help individuals, families, and businesses select insurance policies that
provide the best protection for their lives, health, and property.
Start writing here..
Insurance sales agents, commonly referred to as "producers" in the insurance industry, sell one
or more types of insurance, such as property and casualty, life, health, disability, and long-term
care.
Ex ::Property
Lifemax and casualty insurance agents sell policies that protect individuals and
businesses from financial loss resulting from automobile accidents, fire, theft, storms, and
other eventsseek
Customers thatinsurance
can damage property.
through one orFormore
businesses, property and casualty insurance can
of the following:
also cover injured workers' compensation, product liability claims, or medical malpractice
claims.
• Referrals from trusted friends, family, and colleagues
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• Brand names of national companies (Allstate, State Farm, Geico, Progressive, etc.)
Life insurance agents specialize in selling policies that pay beneficiaries when a policyholder
dies.•Depending
Competition
Local officeonlocation
the policyholder's
and Buying Patternscircumstances, a cash-value policy can be designed to
provide retirement income, funds for the education of children, or other benefits as well. Life
The greater the insurance need of an individual, the more likely they are to seek a local office
insurance
Start writing agents also sell annuities that promise a retirement income. Health insurance agents
here..
where they can meet with an agent and discuss their needs in person. For the target markets of
sell health insurance policies that cover the costs of medical care and loss of income due to
renters and new parents/parents-to-be in The Woodlands, the primary competition will come
illness or injury. They also may sell dental insurance and short-term and long-term disability
from national insurance carriers rather than other independent agents.
insurance policies. Agents may specialize in any one of these product areas, or function as
generalists, providing multiple products to a single customer.

An increasing number of insurance sales agents are offering comprehensive financial planning
services to their clients. These services include retirement planning, estate planning, and
assistance in setting up pension plans for businesses. As a result, many insurance agents are
involved in "cross-selling" or "total account development". Besides offering insurance, these

Insurance Agency | Business Plan [YEAR] 17/39

Market Segmentation

 Ex :: Lifemax

The market segments described include a great deal of overlap. For example, many adults over
the age of 40 are also homeowners and the remainder are renters. The new parent segment is
also either homeowners or renters, generally. Each segment has different needs for insurance
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products, however, and those who fall into more than one segment have a need for more than
one product.
Start writing here..

Market Analysis

Segments Market share

Renters 20

Homeowners 30

Adults over Age 40 35

New Parents/Parents-To-Be 15

Insurance Agency | Business Plan [YEAR] 18/39

 Potential Customers Growth Year 1 Year 2 Year 3 Year 4 Year 5 CAGR

Renters 2% 11,000 11,220 11,444 11,673 11,906 2.00%

Homeowners 1% 34,000 34,340 34,683 35,030 35,380 1.00%

Adults over Age 40 3% 35,000 36,050 37,132 38,246 39,393 3.00%

New Parents/Parents To Be 2% 3,000 3,060 3,121 3,183 3,247 2.00%

Total 2.02% 83,000 84,670 86,380 88,132 89,926 2.02%

Target Market Segment Strategy

 Ex :: Lifemax

Lifemax Insurance will focus its initial marketing on those at the younger end of the spectrum,
including renters and new parents/parents-to-be. The strategy will be to begin by selling renter's
insurance and life insurance to clients and then earn their ongoing trust in order to sell
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additional insurance policies to them as new needs arise. Younger clients will also serve as a
longer annuity as insurance policies are renewed year after year.
Start writing here..
As these clients increase in age they will have growing needs for homeowner's insurance,
valuable items insurance, life insurance, and, eventually, long-term care and long-term disability.

Insurance Agency | Business Plan [YEAR] 19/39

5.
Strategy and
Implementation Summary
Competitive Edge
Marketing Strategy
Sales Strategy
Milestones
Insurance Agency | Business Plan [YEAR] 20/39
 After identifying the market demand, market trends, and the potential
customers of the startup, the next step is to define an effective strategy for
attracting those customers. Like marketing analysis, sales strategy is also an
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important component of an Insurance business startup and must be properly
planned before you think about starting your own Insurance Business.

 Ex :: Lifemax

To implement its launch in The Woodlands, Lifemax Insurance intends to target clients on the
younger side of the total potential market in order to build up a client base for long-term
service. This is also a target market that is ignored by other local independent insurance
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agents, making it easier to establish a foothold in the market this way. This implementation will
include:
Start writing here..
• Advertising to new parents/parents-to-be (in need of life insurance) and renters (in need
of renters insurance)
Competitive Edge
• Sell additional insurance policies to these clients as the years go on
• Maintain a high policy renewal rate and high client retention rate through excellent
service
 Ex :: Lifemax

Lifemax Insurance will establish its competitive edge through a single-minded focus on
personal insurance. By being and staying an expert on personal insurance products and
providers, Lifemax Insurance will be a one-stop-shop for individuals looking to minimize the
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risks in their lives for themselves and for their families. To maintain this expertise, Lifemax
Insurance will devote time and energy to training and course work and will subscribe to trade
Start writing here..
periodicals and newsletters. Lifemax Insurance will also spend time learning about the specific
risks and problems associated with The Woodlands in order to better serve its residents.

Marketing Strategy

 Ex :: Lifemax

The marketing strategy for Lifemax Insurance involves an initial focus on the target markets
chosen, new parents/parents-to-be, and renters. Renters require renter's insurance and valuable
items insurance. It is often the first time they will have purchased insurance in their lives. New
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parents require life insurance to protect their family and their children. Both groups may only
purchase policies with small premiums at the moment, but their loyalty will turn into an annuity
Start
ofwriting here..
renewals and opportunities to sell additional policies as they age.
To reach these target markets, Lifemax Insurance will engage in the following tactics:

• Advertising in The Woodlands parent newsletters

• Posting flyers at apartment buildings
• Direct mail to apartment tenants and inclusion in books of coupons/flyers provided to
new tenants
• Creating a basic website

Insurance Agency | Business Plan [YEAR] 21/39

Sales Strategy

 Ex :: Lifemax

Property insurance and life insurance will be the main drivers of the business. Customers who
use other products will typically be customers who have first purchased property or life
insurance. The cost of sales is low as the revenues earned come directly from the insurance
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providers generally as a commission on the policies sold and renewed. The commissions will
range between 4% and 7% depending on the insurance provider, but Lifemax estimates an
Sales Forecast
average of a 5% commission on policies sold, leading to the per-unit commissions listed in the
forecast. Cost of sales consists of the fees involved with submitting and processing a client's
Start writing here..
paperwork and the costs of travel (gasoline/tolls) that can be directly attributed to sales calls at
client homes and is estimated to start at 16% of sales in the first year and to drop to 15% in
future years as travel costs can be saved due to the volume of sales calls being made as well
 Ex :: Lifemax
as some clients who do not need sales visits due to renewals.

The sales strategy

By building of through
business LifemaxGreg
Insurance will be
Bell's own an aggressive
sales work and then one through
based on anprofiling and
additional
targeting individuals
associate, in the
the business initial target
is expected market. Greggrow
to significantly Bell its
willrevenue
have initial phoneespecially
streams, conversations
in the
with clients and then meet them at their home or office to discuss further. He will bring his
target market of younger clients, in these first three years of operation. To unlock help try Upmetrics! 
laptop with him to all sales calls to search for insurance options for clients on the spot
whenever possible.
Start writing here..
Potential, actual, and past clients will all be managed through a CRM database in
salesforce.com
Sales Yearly which will contain contact information and data on the relationship and will
generate reminders for follow-ups and the next steps automatically.

Greg Bell will encourage referrals through his interactions with clients by asking them directly
and by offering gifts to those who refer to clients.

Financial Year Total Sales

Year1 66,840

Year2 97,760

Year3 113,402

Insurance Agency | Business Plan [YEAR] 22/39

 SALES FORECAST YEAR 1 YEAR 2 YEAR 3

Unit Sales

Property Insurance 682 955 1,336

Life Insurance 318 445 624

Long Term Care/Disability 26 46 80

Valuable Items 363 509 712

Personal Liability 57 100 175

TOTAL UNIT SALES 1,446 2,055 2,927

Unit Prices Year 1 Year 2 Year 3

Property Insurance $100.00 $100.00 $100.00

Life Insurance $150.00 $150.00 $150.00

Long Term Care/Disability $150.00 $150.00 $150.00

Valuable Items $75.00 $75.00 $75.00

Personal Liability $75.00 $75.00 $75.00

Sales

Propery Insurance $68,200 $95,500 $133,600

Life Insurance $47,700 $66,750 $93,600

Long Term Care/Disability $3,900 $6,900 $12,000

Valuable Items $27,225 $38,175 $53,400

Personal Liability $4,275 $7,500 $13,125

TOTAL SALES $151,300 $214,825 $305,725

Direct Unit Costs

Propery Insurance $16.00 $15.00 $15.00

Life Insurance $24.00 $22.50 $22.50

Long Term Care/Disability $24.00 $22.50 $22.50

Valuable Items $12.00 $11.25 $11.25

Personal Liability $12.00 $11.25 $11.25

Direct Cost of Sales

Propery Insurance $10,912 $14,325 $20,040

Insurance Agency | Business Plan [YEAR] 23/39

 SALES FORECAST YEAR 1 YEAR 2 YEAR 3

Life Insurance $7,632 $10,013 $14,040

Long Term Care/Disability $624 $1,035 $1,800

Valuable Items $4,356 $5,726 $8,010

Personal Liability $684 $1,125 $1,969

Subtotal Direct Cost of Sales $24,208 $32,224 $45,859

Milestones

 Ex :: Lifemax

The marketing activities listed in the Milestones Table are all intended to be low cost methods
to establish an initial client base. They are intended as one-time activities with the exception of
search engine marketing which will continue with a dedicated budget of $500 per month and
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advertising in parent periodicals which may continue with $500 per month devoted to it after
the launch.

Milestone Start Date End Date Budget Manager Department

Create a Website 1/1/2010 1/30/2010 $1,000 KP Owner

Launch SEM Campaign 2/1/2010 2/15/2010 $500 KP Owner

Create and Post Flyers 2/15/2010 2/28/2010 $500 KP Owner

Direct Mail Campaign 2/15/2010 2/28/2010 $1,000 KP Owner

Advertising in Periodicals 2/15/2010 4/15/2010 $500 KP Owner

Yellow Pages Listing 2/15/2010 2/28/2010 $100 KP Owner

Totals $3,600

Insurance Agency | Business Plan [YEAR] 24/39

6.

Management Summary
Personnel Plan

Insurance Agency | Business Plan [YEAR] 25/39

  Ex :: Lifemax

Greg Bell will be the only employee of Lifemax Insurance in its first year. He will continue to
direct the company going forward and will bring on an associate agent in the second year of
operation. This agent will prospect, sell, and fulfill policy requests for clients and will answer
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questions of clients just as Greg Bell will. However, Lifemax will manage the marketing and
finances of the firm and will set guidelines for training and education which the associate agent
Start writing
must here..
follow.

Personnel Plan

 Ex :: Lifemax

Greg Bell will escalate his salary as the year goes forward. Although the business is currently a
sole proprietorship, his salary is recorded to better illustrate the tax burden he will face. The
associate agent will be compensated with a base salary, a 5% commission on sales, and a
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percentage of net profits which will increase based on performance. The associate agent will
have an initial salary of $50,000 per year but will be hired partway into the second year of
Start writing here..
operation.

Training for the associate agent (and future associate agents) will begin with direct, on the job
PERSONNEL PLAN YEAR 1 YEAR 2 YEAR 3
training by Greg Bell on sales calls. Ongoing training will include required course work to
maintain
Greg Bell certification as well as additional events in the community,
$49,000 $50,000 conferences, and reading
$75,000
material.
Associate Agent $0 $35,000 $75,000

TOTAL PEOPLE 1 2 2

Total Payroll $49,000 $85,000 $150,000

Insurance Agency | Business Plan [YEAR] 26/39

7.

Financial Plan
Start-up Funding
Important Assumptions
Brake-even Analysis
Projected Profit and Loss
Projected Cash Flow
Projected Balance Sheet
Business Ratios
Insurance Agency | Business Plan [YEAR] 27/39
 The last component of an Insurance agent business plan is an in-depth
financial plan. The financial plan crafts a detailed map of all the expenses
needed for the startup and how these expenses will be met by the earned
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profits. It is recommended that you use our financial planning tool for guiding
you through all financial aspects needed to be considered for starting an
Insurance business.
 Ex :: Lifemax

The business will finance its growth from a combination of the free cash flows generated by the
business and a loan taken out in the second year to finance the move to a small office space in
The Woodlands. Beyond the first three years, growth will be possible by adding more agents
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and moving to larger office space when the initial space is no longer adequate (when a third
associate must be added).
Start writing here..
The business is not well-positioned for a sale as it will be built on the expertise of Greg Bell.
However, profits may become extensive when the appropriate scale is achieved and the
Start-up Funding
business can expand to additional personal insurance products or financial advisory services.

Lifemax Insurance will be launched with Greg Bell's own resources, including credit card debt, personal
savings, and some credit extended by vendors providing start-up services.

START-UP FUNDING AMOUNT

Start-up Expenses to Fund $8,000

Start-up Assets to Fund $24,000

TOTAL FUNDING REQUIRED $32,000

Assets

Non-cash Assets from Start-up $0

Cash Requirements from Start-up $24,000

Additional Cash Raised $0

Cash Balance on Starting Date $24,000

TOTAL ASSETS $24,000

Liabilities and Capital

Liabilities

Current Borrowing $4,000

Long-term Liabilities $0

Accounts Payable (Outstanding Bills) $1,000

Insurance Agency | Business Plan [YEAR] 28/39

 START-UP FUNDING AMOUNT

Other Current Liabilities (interest-free) $0

TOTAL LIABILITIES $5,000

Capital

Planned Investment

Owner $27,000

Investor $0

Additional Investment Requirement $0

TOTAL PLANNED INVESTMENT $27,000

Loss at Start-up (Start-up Expenses) ($8,000)

TOTAL CAPITAL $19,000

TOTAL CAPITAL AND LIABILITIES $24,000

Total Funding $32,000

Important Assumptions
We are assuming approximately 50% sales on credit and average interest rates of 10%. These are
considered to be conservative in case our predictions are erroneous.
Since Walter is an import/export broker, the firm has no variable costs associated with it.

Year 1 Year 2 Year 3

Plan Month 1 2 3

Current Interest Rate 10,00% 11,00% 12,00%

Long-term Interest Rate 10,00% 10,00% 10,00%

Tax Rate 26,42% 27,76% 28,12%

Other 0 0 0

Insurance Agency | Business Plan [YEAR] 29/39

Brake-even Analysis

Monthly Units Break-even 5530

Monthly Revenue Break-even $159 740

Assumptions:

Average Per-Unit Revenue $260,87

Average Per-Unit Variable Cost $0,89

Estimated Monthly Fixed Cost $196 410

Projected Profit and Loss

2024 2025 2026

Revenue $950,629 $2,513,530.50 $4,593,941

Auto Insurance Policies $702,362 $2,214,764.50 $4,233,255

Users 539 1,247 2,202

Recurring Charges $200 $200 $200

Home Insurance Policies $114,147 $128,601 $144,906

Unit Sales 380 429 483

Unit Price $300 $300 $300

Life Insurance Policies $134,120 $170,165 $215,780

Unit Sales 268 340 432

Unit Price $500 $500 $500

Cost Of Sales $96,011.10 $180,036.65 $290,667.07

General Costs $96,011.10 $180,036.65 $290,667.07

Policy Acquisition Costs $66,555.20 $147,112.88 $253,852.13

Advertising and Promotion $19,023.72 $21,436.34 $24,155.06

Underwriting Expenses $47,531.48 $125,676.54 $229,697.07

Insurance Agency | Business Plan [YEAR] 30/39

 2024 2025 2026

Operational Costs $29,455.90 $32,923.77 $36,814.94

Office Rent $25,364.99 $28,581.81 $32,206.53

Employee Training $4,090.91 $4,341.96 $4,608.41

Revenue Specific Costs $0 $0 $0

Personnel Costs (Direct

$0 $0 $0
Labor)

Gross Margin $854,617.90 $2,333,493.85 $4,303,273.93

Gross Margin (%) 89.90% 92.84% 93.67%

Operating Expense $893,741.17 $1,072,454.26 $1,303,842.78

Payroll Expense (Indirect

$770,460 $789,487.20 $809,023.08
Labor)

Agency Staff $412,500 $422,250 $432,255

Insurance Agents $337,500 $344,250 $351,135

Office Manager $75,000 $78,000 $81,120

Sales Team $236,520 $242,568 $248,783.04

Sales Representatives $148,680 $151,653.60 $154,686.60

Sales Manager $87,840 $90,914.40 $94,096.44

Administrative Staff $121,440 $124,669.20 $127,985.04

Administrative Assistants $82,800 $84,870 $86,991.84

Receptionist $38,640 $39,799.20 $40,993.20

General Expense $123,281.18 $282,967.06 $494,819.70

Office Expenses $19,023.65 $21,436.39 $24,155.26

Office Supplies $10,145.95 $11,432.68 $12,882.69

Utilities $8,877.70 $10,003.71 $11,272.57

Insurance Agency | Business Plan [YEAR] 31/39

 2024 2025 2026

Technology Expenses $52,604.44 $131,392.78 $236,138.30

Software Subscriptions $5,072.96 $5,716.24 $6,441.23

IT Maintenance $47,531.48 $125,676.54 $229,697.07

Marketing Expenses $51,653.09 $130,137.89 $234,526.14

Advertising $47,531.48 $125,676.54 $229,697.07

Promotional Events $4,121.61 $4,461.35 $4,829.07

Bad Debt $0 $0 $0

Amortization of Current
$0 $0 $0
Assets

EBITDA ($39,123.26) $1,261,039.59 $2,999,431.15

Additional Expense $18,112.80 $15,869.24 $13,463.49

Long Term Depreciation $12,096 $12,096 $12,096

Gain or loss from Sale of

$0 $0 $0
Assets

EBIT ($51,219.26) $1,248,943.59 $2,987,335.15

Interest Expense $6,016.82 $3,773.25 $1,367.48

EBT ($57,236.06) $1,245,170.35 $2,985,967.66

Income Tax Expense /

$0 $0 $0
Benefit

Total Expense $1,007,865.06 $1,268,360.15 $1,607,973.34

Net Income ($57,236.06) $1,245,170.35 $2,985,967.66

Net Income (%) (6.02%) 49.54% 65%

Insurance Agency | Business Plan [YEAR] 32/39

 2024 2025 2026

Retained Earning Opening $0 ($77,236.06) $1,147,934.29

Owner's Distribution $20,000 $20,000 $20,000

Retained Earning Closing ($77,236.06) $1,147,934.29 $4,113,901.95

Projected Cash Flow

2024 2025 2026

Cash Received $950,629 $2,513,530.50 $4,593,941

Cash Paid $995,769.05 $1,256,264.15 $1,595,877.35

COS & General Expenses $219,292.25 $463,003.71 $785,486.78

Salary & Wages $770,460 $789,487.20 $809,023.08

Interest $6,016.82 $3,773.25 $1,367.48

Sales Tax $0 $0 $0

Income Tax $0 $0 $0

Net Cash From

($45,140.05) $1,257,266.35 $2,998,063.65
Operations

Assets Sell $0 $0 $0

Assets Purchase $50,000 $0 $0

Net Cash From

($50,000) $0 $0
Investments

Amount Received $150,000 $0 $0

Loan Received $100,000 $0 $0

Common Stock $0 $0 $0

Preferred Stock $0 $0 $0

Owner's Contribution $50,000 $0 $0

Insurance Agency | Business Plan [YEAR] 33/39

 2024 2025 2026

Amount Paid $51,035.72 $53,279.28 $55,685.02

Loan Capital $31,035.70 $33,279.27 $35,685.03

Dividends & Distributions $20,000 $20,000 $20,000

Net Cash From

$98,964.28 ($53,279.28) ($55,685.02)
Financing

Summary

Starting Cash $0 $3,824.23 $1,207,811.30

Cash In $1,100,629 $2,513,530.50 $4,593,941

Cash Out $1,096,804.77 $1,309,543.43 $1,651,562.37

Change in Cash $3,824.23 $1,203,987.07 $2,942,378.63

Ending Cash $3,824.23 $1,207,811.30 $4,150,189.93

Projected Balance Sheet

2024 2025 2026

Assets $41,728.23 $1,233,619.30 $4,163,901.93

Current Assets $3,824.23 $1,207,811.30 $4,150,189.93

Cash $3,824.23 $1,207,811.30 $4,150,189.93

Accounts Receivable $0 $0 $0

Inventory $0 $0 $0

Other Current Assets $0 $0 $0

Long Term Assets $37,904 $25,808 $13,712

Gross Long Term Assets $50,000 $50,000 $50,000

Accumulated Depreciation ($12,096) ($24,192) ($36,288)

Insurance Agency | Business Plan [YEAR] 34/39

 2024 2025 2026

Liabilities & Equity $41,728.23 $1,233,619.31 $4,163,901.95

Liabilities $68,964.29 $35,685.02 $0

Current Liabilities $33,279.27 $35,685.02 $0

Accounts Payable $0 $0 $0

Income Tax Payable $0 $0 $0

Sales Tax Payable $0 $0 $0

Short Term Debt $33,279.27 $35,685.02 $0

Long Term Liabilities $35,685.02 $0 $0

Long Term Debt $35,685.02 $0 $0

Equity ($27,236.06) $1,197,934.29 $4,163,901.95

Paid-in Capital $0 $0 $0

Common Stock $0 $0 $0

Preferred Stock $0 $0 $0

Owner's Contribution $50,000 $50,000 $50,000

Retained Earnings ($77,236.06) $1,147,934.29 $4,113,901.95

Check $0 $0 $0

Business Ratios

Year 1 Year 2 Year 3 Industry Profile

Sales Growth 4,35% 30,82% 63,29% 4,00%

Percent of Total Assets

Accounts Receivable 5,61% 4,71% 3,81% 9,70%

Inventory 1,85% 1,82% 1,79% 9,80%

Other Current Assets 1,75% 2,02% 2,29% 27,40%

Total Current Assets 138,53% 150,99% 163,45% 54,60%

Insurance Agency | Business Plan [YEAR] 35/39

 Year 1 Year 2 Year 3 Industry Profile

Long-term Assets -9,47% -21,01% -32,55% 58,40%

TOTAL ASSETS 100,00% 100,00% 100,00% 100,00%

Current Liabilities 4,68% 3,04% 2,76% 27,30%

Long-term Liabilities 0,00% 0,00% 0,00% 25,80%

Total Liabilities 4,68% 3,04% 2,76% 54,10%

NET WORTH 99,32% 101,04% 102,76% 44,90%

Percent of Sales

Sales 100,00% 100,00% 100,00% 100,00%

Gross Margin 94,18% 93,85% 93,52% 0,00%

Selling, General & Administrative Expenses 74,29% 71,83% 69,37% 65,20%

Advertising Expenses 2,06% 1,11% 0,28% 1,40%

Profit Before Interest and Taxes 26,47% 29,30% 32,13% 2,86%

Main Ratios

Current 25,86 29,39 32,92 1,63

Quick 25,4 28,88 32,36 0,84

Total Debt to Total Assets 2,68% 1,04% 0,76% 67,10%

Pre-tax Return on Net Worth 66,83% 71,26% 75,69% 4,40%

Pre-tax Return on Assets 64,88% 69,75% 74,62% 9,00%

Additional Ratios

Net Profit Margin 19,20% 21,16% 23,12% N.A.

Return on Equity 47,79% 50,53% 53,27% N.A.

Activity Ratios

Accounts Receivable Turnover 4,56 4,56 4,56 N.A.

Collection Days 92 99 106 N.A.

Inventory Turnover 19,7 22,55 25,4 N.A.

Accounts Payable Turnover 14,17 14,67 15,17 N.A.

Payment Days 27 27 27 N.A.

Total Asset Turnover 1,84 1,55 1,26 N.A.

Insurance Agency | Business Plan [YEAR] 36/39

 Year 1 Year 2 Year 3 Industry Profile

Debt Ratios

Debt to Net Worth 0 -0,02 -0,04 N.A.

Current Liab. to Liab. 1 1 1 N.A.

Liquidity Ratios

Net Working Capital $120 943 $140 664 $160 385 N.A.

Interest Coverage 0 0 0 N.A.

Additional Ratios

Assets to Sales 0,45 0,48 0,51 N.A.

Current Debt/Total Assets 4% 3% 2% N.A.

Acid Test 23,66 27,01 30,36 N.A.

Sales/Net Worth 1,68 1,29 0,9 N.A.

Dividend Payout 0 0 0 N.A.

Insurance Agency | Business Plan [YEAR] 37/39

Insurance Agency | Business Plan [YEAR] 38/39
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