How to Write a Business Plan to Sell Insurance

A business plan will point your company in the right direction.

Preparing a business plan is an integral part of any business venture. In order to get the most from your insurance business, a carefully detailed plan will cover your business description, market and competitor analysis, operating plan, financial plan and executive summary. A business plan can be used as a financial proposal, a feasibility study or an operating guide for a new business.

Instructions

1. Write a mission statement. Include why you decided to sell insurance and what you hope to achieve with the business.

2. Write an overview of the business. Include whether you will be operating a franchise or be independent and what types of insurance you will sell.

3. Write out the market characteristics. Include details about the insurance industry, who your target clients are and how you plan to overcome the competition and get ahead.

4. Write a competitor assessment. Determine who else is selling insurance within a 25-mile radius. Profile each competitor and prepare a SWOT analysis, which looks into their strengths and weaknesses, your opportunities based on those strengths and weaknesses and threats posed by competitors to your business.

5. Create a marketing plan. Include the different types of insurance you will sell, the price structure, distribution system and promotional ideas.

6. Create an operating plan. Include details about the inner workings of the business--if you will work alone or hire agents, what equipment you will need to operate, resources you will need and any legal issues.

7. Create your financial plan. Include the current financial scenario, as well as estimated profit potential and forecasts. Be thorough and project two to four years into the future.

8. Create an executive summary. Highlight all the main points of the plan in a condensed form.

Tips & Warnings

• Determine what purpose your business plan will serve and modify it accordingly.

References

• Elements of a Business Plan

Resources

• SWOT Analysis