B U S I N E S S P L A N
[YEAR]
Insurance Agency
You’re in good hands
John Doe
10200 Bolsa Ave, Westminster, CA, 92683
(650) 359-3153
http://www.example.com
Information provided in this business plan is unique to this business and condential;
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 prot 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
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Mission
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Objectives
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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.
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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
a small oce 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
insurance provider available on the market. Lifemax's track record as a salesperson positions
him well for success in the insurance business.
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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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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:
Build revenues quickly in the rst year of operations.
Rent an oce and add an associate insurance agent in the second year of operations.
Reach revenues double in the third year of operations with a reasonable net prot.
1.
2.
3.
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Insurance Agency | Business Plan [YEAR] 6/39
Keys to Success
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Financial Considerations
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In order to accomplish its objectives, Lifemax Insurance believes the following are the Keys to
Success:
Remain independent of direct aliate ties to any specic insurance providers
Think of each client's needs holistically to consider all the potential risks in their lives
Maintain a reputation of care, fairness, empathy, and expertise
1.
2.
3.
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Lifemax Insurance stands to be a protable business which will provide salary and dividends
for Greg Bell, its sole owner. Salary to Lifemax plus prots will increase moderately but steadily.
The business can be launched without external investment or loans, relying only on Lifemax's
savings and personal borrowings. To nance expansion to an oce, Lifemax Insurance will
require a long-term loan taken out in its second year of operation.
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Insurance Agency | Business Plan [YEAR] 7/39
3 Year prot forecast
Year1 10,000 500 6,000
Year2 12,000 800 8,000
Year3 14,000 1,200 10,000
Financial Year
Sales
Gross Margin
Net Prot
Insurance Agency | Business Plan [YEAR] 8/39
Overview
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Start-up Summary
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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,
and continue to grow through the establishment of a local oce and the addition of associate
agents to better serve the community. Greg Bell is an experienced salesperson and newly
certied insurance agent. The business will broker insurance purchases for property insurance
(home & contents, valuable possessions, renter's insurance), personal liability, and life
insurance.
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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
out of a home oce. Most of the start-up funding is required to cover operating expenses until
break-even is achieved halfway through the rst year of operation.
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Insurance Agency | Business Plan [YEAR] 10/39
Startup cost
Expenses 1,550
Assets 1,800
Investment 2,050
Cost distribution
Amount
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
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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 oce.
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Insurance Agency | Business Plan [YEAR] 12/39
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Services
Home and Contents
Homeowner's Insurance Condo
Insurance Cooperative Insurance
Renter's Insurance Seasonal and
Secondary Locations Flood
Insurance
Valuable Items
Jewelry Fine Art Silver Furs Other
Collectible Items
Personal Liability
Life Insurance
Term Life Variable Life Whole Life
Second-to-Die
Long-term Care
Long-term Disability
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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
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.
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Lifemax Insurance will offer the following personal insurance products:
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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.
While offering these products, Lifemax Insurance will provide the following services:
Consult with clients on their insurance needs to determine a course of action
Assist existing clients with insurance claims and understanding their insurance policy
•
•
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Insurance Agency | Business Plan [YEAR] 14/39
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Service Business Analysis
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Competition and Buying Patterns
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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
agent business plan sample or other sample Insurance agent business plans
available online.
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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
position to service these niche rms and their more demanding needs.
Protability in these two markets is expected to be excellent, especially in the import segment
as Leavenworth draws in over a million tourists each year. We expect protability in the co-op
end to be much slower in the rst ve years of operation but will increase steadily.
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The United States Department of Labor offers the following summary of the insurance industry:
Most people have their rst contact with an insurance company through an insurance sales
agent. These workers help individuals, families, and businesses select insurance policies that
provide the best protection for their lives, health, and property.
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. Property and casualty insurance agents sell policies that protect individuals and
businesses from nancial loss resulting from automobile accidents, re, theft, storms, and
other events that can damage property. For businesses, property and casualty insurance can
also cover injured workers' compensation, product liability claims, or medical malpractice
claims.
Life insurance agents specialize in selling policies that pay beneciaries when a policyholder
dies. Depending on the policyholder's circumstances, a cash-value policy can be designed to
provide retirement income, funds for the education of children, or other benets as well. Life
insurance agents also sell annuities that promise a retirement income. Health insurance agents
sell health insurance policies that cover the costs of medical care and loss of income due to
illness or injury. They also may sell dental insurance and short-term and long-term disability
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 nancial 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
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Customers seek insurance through one or more of the following:
Referrals from trusted friends, family, and colleagues
Brand names of national companies (Allstate, State Farm, Geico, Progressive, etc.)
Local oce location
The greater the insurance need of an individual, the more likely they are to seek a local oce
where they can meet with an agent and discuss their needs in person. For the target markets of
renters and new parents/parents-to-be in The Woodlands, the primary competition will come
from national insurance carriers rather than other independent agents.
•
•
•
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Insurance Agency | Business Plan [YEAR] 17/39
Market Segmentation
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Market Analysis
Renters 20
Homeowners 30
Adults over Age 40 35
New Parents/Parents-To-Be 15
Segments
Market share
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
products, however, and those who fall into more than one segment have a need for more than
one product.
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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
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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
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.
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.
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Insurance Agency | Business Plan [YEAR] 19/39
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Competitive Edge
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Marketing Strategy
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After identifying the market demand, market trends, and the potential
customers of the startup, the next step is to dene an effective strategy for
attracting those customers. Like marketing analysis, sales strategy is also an
important component of an Insurance business startup and must be properly
planned before you think about starting your own Insurance Business.
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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
agents, making it easier to establish a foothold in the market this way. This implementation will
include:
Advertising to new parents/parents-to-be (in need of life insurance) and renters (in need
of renters insurance)
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
•
•
•
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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
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
periodicals and newsletters. Lifemax Insurance will also spend time learning about the specic
risks and problems associated with The Woodlands in order to better serve its residents.
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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 rst time they will have purchased insurance in their lives. New
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
of 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 yers at apartment buildings
Direct mail to apartment tenants and inclusion in books of coupons/yers provided to
new tenants
Creating a basic website
•
•
•
•
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Insurance Agency | Business Plan [YEAR] 21/39
Sales Strategy
Sales Forecast
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Sales Yearly
Year1 66,840
Year2 97,760
Year3 113,402
Financial Year
Total Sales
Property insurance and life insurance will be the main drivers of the business. Customers who
use other products will typically be customers who have rst purchased property or life
insurance. The cost of sales is low as the revenues earned come directly from the insurance
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
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
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 rst 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
as some clients who do not need sales visits due to renewals.
By building business through Greg Bell's own sales work and then through an additional
associate, the business is expected to signicantly grow its revenue streams, especially in the
target market of younger clients, in these rst three years of operation.
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The sales strategy of Lifemax Insurance will be an aggressive one based on proling and
targeting individuals in the initial target market. Greg Bell will have initial phone conversations
with clients and then meet them at their home or oce to discuss further. He will bring his
laptop with him to all sales calls to search for insurance options for clients on the spot
whenever possible.
Potential, actual, and past clients will all be managed through a CRM database in
salesforce.com 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.
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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
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
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
advertising in parent periodicals which may continue with $500 per month devoted to it after
the launch.
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Insurance Agency | Business Plan [YEAR] 24/39
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Personnel Plan
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PERSONNEL PLAN YEAR 1 YEAR 2 YEAR 3
Greg Bell $49,000 $50,000 $75,000
Associate Agent $0 $35,000 $75,000
TOTAL PEOPLE 1 2 2
Total Payroll $49,000 $85,000 $150,000
Greg Bell will be the only employee of Lifemax Insurance in its rst 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 fulll policy requests for clients and will answer
questions of clients just as Greg Bell will. However, Lifemax will manage the marketing and
nances of the rm and will set guidelines for training and education which the associate agent
must follow.
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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
percentage of net prots 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
operation.
Training for the associate agent (and future associate agents) will begin with direct, on the job
training by Greg Bell on sales calls. Ongoing training will include required course work to
maintain certication as well as additional events in the community, conferences, and reading
material.
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Insurance Agency | Business Plan [YEAR] 26/39
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Start-up Funding
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
The last component of an Insurance agent business plan is an in-depth
nancial plan. The nancial plan crafts a detailed map of all the expenses
needed for the startup and how these expenses will be met by the earned
prots. It is recommended that you use our nancial planning tool for guiding
you through all nancial aspects needed to be considered for starting an
Insurance business.
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The business will nance its growth from a combination of the free cash ows generated by the
business and a loan taken out in the second year to nance the move to a small oce space in
The Woodlands. Beyond the rst three years, growth will be possible by adding more agents
and moving to larger oce space when the initial space is no longer adequate (when a third
associate must be added).
The business is not well-positioned for a sale as it will be built on the expertise of Greg Bell.
However, prots may become extensive when the appropriate scale is achieved and the
business can expand to additional personal insurance products or nancial advisory services.
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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 rm 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 Prot and Loss
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
2024
2025
2026
Insurance Agency | Business Plan [YEAR] 30/39
Operational Costs
$29,455.90 $32,923.77 $36,814.94
Oce Rent
$25,364.99 $28,581.81 $32,206.53
Employee Training
$4,090.91 $4,341.96 $4,608.41
Revenue Specic Costs
$0 $0 $0
Personnel Costs (Direct
Labor)
$0 $0 $0
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
Labor)
$770,460 $789,487.20 $809,023.08
Agency Staff
$412,500 $422,250 $432,255
Insurance Agents
$337,500 $344,250 $351,135
Oce 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
Oce Expenses
$19,023.65 $21,436.39 $24,155.26
Oce Supplies
$10,145.95 $11,432.68 $12,882.69
Utilities
$8,877.70 $10,003.71 $11,272.57
2024
2025
2026
Insurance Agency | Business Plan [YEAR] 31/39
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
Assets
$0 $0 $0
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
Assets
$0 $0 $0
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 /
Benet
$0 $0 $0
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%
2024
2025
2026
Insurance Agency | Business Plan [YEAR] 32/39
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
2024
2025
2026
Projected Cash Flow
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
Operations
($45,140.05) $1,257,266.35 $2,998,063.65
Assets Sell
$0 $0 $0
Assets Purchase
$50,000 $0 $0
Net Cash From
Investments
($50,000) $0 $0
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
2024
2025
2026
Insurance Agency | Business Plan [YEAR] 33/39
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
Financing
$98,964.28 ($53,279.28) ($55,685.02)
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
2024
2025
2026
Projected Balance Sheet
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)
2024
2025
2026
Insurance Agency | Business Plan [YEAR] 34/39
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
2024
2025
2026
Business Ratios
Year 1 Year 2 Year 3 Industry Prole
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 Prole
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%
Prot 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 Prot 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 Prole
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
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