title insurance agency business plan

We earn commissions if you shop through the links below.  Read more

Title Company

Back to All Business Ideas

How to Start a Title Company

Written by: Carolyn Young

Carolyn Young is a business writer who focuses on entrepreneurial concepts and the business formation. She has over 25 years of experience in business roles, and has authored several entrepreneurship textbooks.

Edited by: David Lepeska

David has been writing and learning about business, finance and globalization for a quarter-century, starting with a small New York consulting firm in the 1990s.

Published on December 30, 2021 Updated on June 5, 2024

Investment range

$2,250 - $32,100

Revenue potential

$80,000 - $625,000 p.a.

Time to build

1 – 3 months

Profit potential

$70,000 - $250,000 p.a.

Industry trend

We rarely think about it, but title insurance is big business, with a US market value of $22 billion. Now might be a great time to start a title company, which helps ensure the smooth transfer of ownership of homes, property, and other assets, and get in on a fast growing market. 

Of course, starting a business comes with challenges and will require preparation, hard work, and industry knowledge. Fortunately, you’ve come to the right place, as this step-by-step guide has all the information and insight you need to develop and launch your own title company.

Looking to register your business? A limited liability company (LLC) is the best legal structure for new businesses because it is fast and simple.

Form your business immediately using ZenBusiness LLC formation service or hire one of the Best LLC Services .

Step 1: Decide if the Business Is Right for You

Pros and cons.

Starting a title company, which handles the paperwork for funds transfers and works with title insurance underwriters to make sure everything is in legal and financial order, has pros and cons that you should consider before you decide if the business is right for you.

• Flexibility – Start as a mobile title agent
• Deliver Value – Provide an essential service to customers
• People-Focused – Work with new people every day
• Red Tape – Many documents require attention to detail
• Licensing – Training and exam required

Title insurance industry trends

The pandemic forced a digital transformation of the US title insurance industry. Documents can now be notarized digitally, eliminating the need for an in-person closing. For more on digital notarization and starting your own notary, read this Step By Step article .

Funds are also being transferred electronically, eliminating the need for buyers to bring a cashier’s check to closing. Mobile title companies, meanwhile, are offering their services to mortgage brokers.

Industry size and growth

• Industry size and past growth – The US title insurance industry generated $26 billion in premiums in 2021, a stunning 36% growth from 2020, according to the American Land Title Association.(( https://www.alta.org/news/news.cfm?20220505-ALTA-Reports-Full-year-Q4-2021-Title-Premium-Volume-Market-Share-Data )) Market analyst IBISWorld says the industry grew an average of over 6% per year in the last five years.(( https://www.ibisworld.com/industry-statistics/market-size/title-insurance-united-states/ ))  
• Number of businesses – There are less than a thousand title insurance businesses in the US.(( https://www.ibisworld.com/industry-statistics/number-of-businesses/title-insurance-united-states/ )) 
• Number of people employed – The industry employs more than 66,000 people.(( https://www.ibisworld.com/industry-statistics/employment/title-insurance-united-states/ ))

Trends and challenges

Title insurance trends include:

• Most title companies now offer digital, touchless closing options
• Mobile title companies expanding to mortgage loan refinance transactions

Challenges in the title industry include:

• High level of competition
• Legal issues and missing heirs

Popular underwriters

What kind of people work in title insurance?

An insurance underwriter evaluates insurance applications.

• Gender – 67% of insurance underwriters in the US are female, while 33% are male.(( https://www.zippia.com/insurance-underwriter-jobs/demographics/#gender-statistics ))
• Average level of education – 67% of insurance underwriters hold a bachelor’s degree.(( https://www.zippia.com/insurance-underwriter-jobs/demographics/#degree-level-types ))
• Average age – The average age of an insurance underwriter is 44 years old.(( https://www.zippia.com/insurance-underwriter-jobs/demographics/#age-statistics ))

How much does it cost to start a title company?

Startup costs for title companies range from $2,000 to $32,000. The lower end is the cost if you start as a mobile title agent, while the high end includes the rental and preparation of office space. 

You’ll need a handful of items to successfully launch your title company. Here’s a list to get you started:

• Printers and copy machines
• Conference tables and chairs

How much can you earn from a title company?

Before you can start making money, you need to take the training and pass the exam to become a licensed title agent. Each state has its own requirements for licensing. Typically the process takes no more than 1-2 weeks, and will cost $75 to $200.

The typical fee paid to a title company or title insurance company at closing is about $300. As a mobile agent working from home, your profit margin should be about 90%.

In your first year or two, you could do 5 closings a week, bringing in nearly $80,000 in annual revenue. This would mean over $70,000 in profit, assuming that 90% margin. As your brand gains recognition, you’d likely rent an office and hire staff, reducing your margin to 40%. If you do 40 closings a week, your annual revenue would be almost $625,000, and you’d make a tidy profit of about $250,000. 

What barriers to entry are there?

There are a few barriers to entry for a title company. Your biggest challenges will be:

• Training, studying and passing licensing exam
• Stiff competition from large, established title companies

Related Business Ideas

How to Start a Notary Business

How to Start an Insurance Agency

How to Start a Law Firm

Step 2: hone your idea.

Now that you know what’s involved in starting a title company, it’s a good idea to hone your concept in preparation to enter a competitive market. 

Market research will give you the upper hand, even if you’re already positive that you have a perfect product or service. Conducting market research is important, because it can help you understand your customers better, who your competitors are, and your business landscape.

Why? Identify an opportunity

Research other title companies in your area to examine their services, price points, and customer reviews. You’re looking for a market gap to fill. For instance, maybe the local market is missing a mobile title service, or a reliable title insurance business with an appealing website.  

You might consider targeting a niche market by specializing in a certain aspect of your industry, such as mortgage loan refinancing or a particular type of real estate transaction or joint venture.

This could jumpstart your word-of-mouth marketing and attract clients right away.

What? Determine your services

You’ll need to decide if you want to offer in-person closings, mobile closings, digital closings, or all three. You’ll also need to find a reliable title insurance underwriting company to partner with.

Four main companies, known as the Big Four, are the most used: Fidelity National Financial, First American Financial, Old Republic, and Stewart Information Services.

How much should you charge for closing services?

The average fee a title company receives for a closing is $300. As a mobile service working out of your home, your only costs will be for paperwork and fuel. When you open an office, you’ll have rent, overhead, and labor costs. You’ll still want to provide mobile services at this point, but you’ll be able to do in-person closings as well to increase your volume.

Once you know your costs, you can use this Step By Step profit margin calculator to determine your mark-up and final price points. Remember, the prices you use at launch should be subject to change if warranted by the market.

Who? Identify your target market

As a mobile service, your target market will be mainly mortgage brokers who will engage you for refinance transactions. Once you have an office for in-person closings, your target market will expand to realtors, but you’ll still want to connect with mortgage brokers for the mobile part of your business. Both of those target markets can be found on business-related sites like LinkedIn.

Where? Choose your business premises

In the early stages, you may want to run your business from home to keep costs low. But as your business grows, you’ll likely need to hire workers for various roles and may need to rent out an office. You can find commercial space to rent in your area on Craigslist , Crexi , and Commercial Cafe .

When choosing a commercial space, you may want to follow these rules of thumb:

• Central location accessible via public transport
• Ventilated and spacious, with good natural light
• Flexible lease that can be extended as your business grows
• Ready-to-use space with no major renovations or repairs needed

Step 3: Brainstorm a Title Company Name

Here are some ideas for brainstorming your business name:

• Short, unique, and catchy names tend to stand out
• Names that are easy to say and spell tend to do better 
• The name should be relevant to your product or service offerings
• Ask around — family, friends, colleagues, social media — for suggestions
• Including keywords, such as “title service” or “title company”, boosts SEO
• Choose a name that allows for expansion: “Clear Title Solutions” over “Commercial Title Solutions”
• A location-based name can help establish a strong connection with your local community and help with the SEO but might hinder future expansion

Once you’ve got a list of potential names, visit the website of the US Patent and Trademark Office to make sure they are available for registration and check the availability of related domain names using our Domain Name Search tool. Using “.com” or “.org” sharply increases credibility, so it’s best to focus on these. 

Find a Domain

Powered by GoDaddy.com

Finally, make your choice among the names that pass this screening and go ahead with domain registration and social media account creation. Your business name is one of the key differentiators that set your business apart. Once you pick your company name, and start with the branding, it is hard to change the business name. Therefore, it’s important to carefully consider your choice before you start a business entity.

Step 4: Create a Business Plan

Here are the key components of a business plan:

• Executive Summary: Highlight the main objectives and strategy of your tile installation business, focusing on providing high-quality, professional tiling services for residential and commercial properties.
• Business Overview: Describe your business’s specialization in tile installation, including services for floors, walls, and other surfaces in various materials like ceramic, porcelain, and natural stone.
• Product and Services: Detail the range of installation services offered, including new installations, repairs, and custom tile design work.
• Market Analysis: Evaluate the demand for tile installation in your area, considering factors like construction trends, homeowner renovations, and real estate developments.
• Competitive Analysis: Compare your services to other tile installers and flooring companies, highlighting your strengths in craftsmanship, material quality, or unique design offerings.
• Sales and Marketing: Outline your approach to attract customers, using methods such as local advertising, partnerships with contractors, and showcasing previous work.
• Management Team: Highlight the experience and qualifications of your team, especially in areas like construction, design, and project management.
• Operations Plan: Describe the process of project management, from client consultations to installation and completion of the work.
• Financial Plan: Provide an overview of financials, covering startup costs, pricing strategies, and revenue projections.
• Appendix: Include additional documents like project portfolios, customer testimonials, or supplier agreements to support your business plan.

If you’ve never created a business plan, it can be an intimidating task. You might consider hiring a business plan specialist to create a top-notch business plan for you.

Step 5: Register Your Business

Registering your business is an absolutely crucial step — it’s the prerequisite to paying taxes, raising capital, opening a bank account, and other guideposts on the road to getting a business up and running.

Plus, registration is exciting because it makes the entire process official. Once it’s complete, you’ll have your own business! 

Choose where to register your company

Your business location is important because it can affect taxes, legal requirements, and revenue. Most people will register their business in the state where they live, but if you are planning to expand, you might consider looking elsewhere, as some states could offer real advantages when it comes to title companies. 

If you’re willing to move, you could really maximize your business! Keep in mind, it’s relatively easy to transfer your business to another state. 

Choose your business structure

Business entities come in several varieties, each with its pros and cons. The legal structure you choose for your title company will shape your taxes, personal liability, and business registration requirements, so choose wisely. 

Here are the main options:

• Sole Proprietorship – The most common structure for small businesses makes no legal distinction between company and owner. All income goes to the owner, who’s also liable for any debts, losses, or liabilities incurred by the business. The owner pays taxes on business income on his or her personal tax return.
• Partnership – Similar to a sole proprietorship, but for two or more people. Again, owners keep the profits and are liable for losses. The partners pay taxes on their share of business income on their personal tax returns.
• Limited Liability Company (LLC) – Combines the characteristics of corporations with those of sole proprietorships or partnerships. Again, the owners are not personally liable for debts.
• C Corp – Under this structure, the business is a distinct legal entity and the owner or owners are not personally liable for its debts. Owners take profits through shareholder dividends, rather than directly. The corporation pays taxes, and owners pay taxes on their dividends, which is sometimes referred to as double taxation.
• S Corp – An S-Corporation refers to the tax classification of the business but is not a business entity. An S-Corp can be either a corporation or an LLC , which just needs to elect to be an S-Corp for tax status. In an S-Corp, income is passed through directly to shareholders, who pay taxes on their share of business income on their personal tax returns.

We recommend that new business owners choose LLC as it offers liability protection and pass-through taxation while being simpler to form than a corporation. You can form an LLC in as little as five minutes using an online LLC formation service. They will check that your business name is available before filing, submit your articles of organization , and answer any questions you might have. 

Form Your LLC

Choose Your State

We recommend ZenBusiness as the Best LLC Service for 2024

Step 6: Register for Taxes

The final step before you’re able to pay taxes is getting an Employer Identification Number , or EIN. You can file for your EIN online or by mail or fax: visit the IRS website to learn more. Keep in mind, if you’ve chosen to be a sole proprietorship you can simply use your social security number as your EIN. 

Once you have your EIN, you’ll need to choose your tax year. Financially speaking, your business will operate in a calendar year (January–December) or a fiscal year, a 12-month period that can start in any month. This will determine your tax cycle, while your business structure will determine which taxes you’ll pay.

The IRS website also offers a tax-payers checklist , and taxes can be filed online.

It is important to consult an accountant or other professional to help you with your taxes to ensure you are completing them correctly.

Step 7: Fund your Business

Securing financing is your next step and there are plenty of ways to raise capital:

• Bank loans: This is the most common method but getting approved requires a rock-solid business plan and strong credit history.
• SBA-guaranteed loans: The Small Business Administration can act as guarantor, helping gain that elusive bank approval via an SBA-guaranteed loan .
• Government grants: A handful of financial assistance programs help fund entrepreneurs. Visit Grants.gov to learn which might work for you.
• Friends and Family: Reach out to friends and family to provide a business loan or investment in your concept. It’s a good idea to have legal advice when doing so because SEC regulations apply.
• Crowdfunding: Websites like Kickstarter and Indiegogo offer an increasingly popular low-risk option, in which donors fund your vision. Entrepreneurial crowdfunding sites like Fundable and WeFunder enable multiple investors to fund your business.
• Personal: Self-fund your business via your savings or the sale of property or other assets.

Bank and SBA loans are probably the best options, other than friends and family, for funding a title insurance business.

Step 8: Apply for Licenses/Permits

Starting a title company business requires obtaining a number of licenses and permits from local, state, and federal governments. 

You should check your state website for education and licensing requirements to become a licensed title agent. You’ll also need to check your state’s requirements for surety and fidelity bonds. The amount of the bonds that you need will vary by state.

Federal regulations, licenses, and permits associated with starting your business include doing business as (DBA), health licenses and permits from the Occupational Safety and Health Administration ( OSHA ), trademarks, copyrights, patents, and other intellectual properties, as well as industry-specific licenses and permits. 

You may also need state-level and local county or city-based licenses and permits. The license requirements and how to obtain them vary, so check the websites of your state, city, and county governments or contact the appropriate person to learn more. 

You could also check this SBA guide for your state’s requirements, but we recommend using MyCorporation’s Business License Compliance Package . They will research the exact forms you need for your business and state and provide them to ensure you’re fully compliant.

This is not a step to be taken lightly, as failing to comply with legal requirements can result in hefty penalties.

If you feel overwhelmed by this step or don’t know how to begin, it might be a good idea to hire a professional to help you check all the legal boxes.

Step 9: Open a Business Bank Account

Before you start making money you’ll need a place to keep it, and that requires opening a bank account . Keeping your business finances separate from your personal account makes it easy to file taxes and track your company’s income, so it’s worth doing even if you’re running your title company business as a sole proprietorship. 

Opening a business bank account is quite simple, and similar to opening a personal one. Most major banks offer accounts tailored for businesses — just inquire at your preferred bank to learn about their rates and features.

Banks vary in terms of offerings, so it’s a good idea to examine your options and select the best plan for you. Once you choose your bank, bring in your EIN (or Social Security Number if you decide on a sole proprietorship), articles of incorporation, and other legal documents and open your new account. 

Step 10: Get Business Insurance

Business insurance is an area that often gets overlooked yet it can be vital to your success as an entrepreneur. Insurance protects you from unexpected events that can have a devastating impact on your business.

Here are some types of insurance to consider:

• General liability: The most comprehensive type of insurance, acting as a catch-all for many business elements that require coverage. If you get just one kind of insurance, this is it. It even protects against bodily injury and property damage.
• Business Property: Provides coverage for your equipment and supplies.
• Equipment Breakdown Insurance: Covers the cost of replacing or repairing equipment that has broken due to mechanical issues.
• Worker’s compensation: Provides compensation to employees injured on the job.
• Property: Covers your physical space, whether it is a cart, storefront, or office.
• Commercial auto: Protection for your company-owned vehicle.
• Professional liability: Protects against claims from a client who says they suffered a loss due to an error or omission in your work.
• Business owner’s policy (BOP): This is an insurance plan that acts as an all-in-one insurance policy, a combination of any of the above insurance types.

Step 11: Prepare to Launch

As opening day nears, prepare for launch by reviewing and improving some key elements of your business. 

Essential software and tools

Being an entrepreneur often means wearing many hats, from marketing to sales to accounting, which can be overwhelming. Fortunately, many websites and digital tools are available to help simplify many business tasks.  

You can use industry-specific software, such as snapclose , eFileCabinet , or Certifid , to manage your documents, data collection, closing process, and accounting.

• Popular web-based accounting programs for smaller businesses include Quickbooks , Freshbooks , and Xero . 
• If you’re unfamiliar with basic accounting, you may want to hire a professional, especially as you begin. The consequences for filing incorrect tax documents can be harsh, so accuracy is crucial.

Develop your website

Developing a website for your title company is a crucial step in expanding your market reach and brand visibility. You have two primary options: using a website builder , which is a cost-effective and user-friendly choice, particularly for those with limited technical skills, or hiring a professional web developer, which can be more expensive but offers a bespoke and potentially more sophisticated website.

Your website should highlight your services, expertise, and testimonials. Regularly update your blog with informative content about title services, real estate trends, and local market insights.

Starting a title company requires strategic marketing to establish your presence and attract clients. Here are some effective marketing strategies tailored for your title business:

• Optimize for Local SEO : Focus on local search engine optimization (SEO) to ensure your business appears at the top of search results when potential clients in your area search for title services. This includes using local keywords, optimizing your Google My Business listing, and ensuring your website is mobile-friendly.
• Get Listed in Local Directories : Register your business in local online directories and platforms like Yelp, Yellow Pages, and your local Chamber of Commerce website. This increases visibility and helps build your local online presence.
• Leverage Social Media : Utilize social media platforms to connect with local real estate agents, lenders, and potential clients. Share informative content, industry updates, and engage with your audience to build relationships.
• Network with Real Estate Professionals : Attend local real estate events, join real estate groups, and partner with real estate agencies to get referrals. Building relationships with these professionals can lead to a steady stream of clients.
• Utilize Email Marketing : Build an email list and send out regular newsletters with updates, tips, and promotions. This keeps your business top-of-mind for past and potential clients.
• Host Educational Workshops : Offer free workshops or webinars on topics relevant to home buyers, sellers, and real estate professionals. This positions you as an expert in the field and helps build trust.
• Engage in Community Events : Sponsor local events or participate in community activities. This increases your brand visibility and shows your commitment to the local community.
• Use Targeted Online Advertising : Invest in online advertising, such as Google Ads or Facebook Ads, targeting your local area to reach potential clients actively searching for title services.

Focus on USPs

Unique selling propositions, or USPs, are the characteristics of a product or service that set it apart from the competition. Customers today are inundated with buying options, so you’ll have a real advantage if they are able to quickly grasp how your title company meets their needs or wishes. It’s wise to do all you can to ensure your USPs stand out on your website and in your marketing and promotional materials, stimulating buyer desire. 

Global pizza chain Domino’s is renowned for its USP: “Hot pizza in 30 minutes or less, guaranteed.” Signature USPs for your title company could be: 

• Mobile title services on your time
• Touchless closings, quick and easy
• Closings with an expert to explain every detail

You may not like to network or use personal connections for business gain. But your personal and professional networks likely offer considerable untapped business potential. Maybe that Facebook friend you met in college is now running a title insurance business, or a LinkedIn contact of yours is connected to dozens of potential clients. Maybe your cousin or neighbor has been working in insurance or title underwriting for years and can offer invaluable insight and industry connections. 

The possibilities are endless, so it’s a good idea to review your personal and professional networks and reach out to those with possible links to or interest in titles and insurance. You’ll probably generate new customers or find companies with which you could establish a partnership. Online businesses might also consider affiliate marketing as a way to build relationships with potential partners and boost business. 

Step 12: Build Your Team

If you’re starting out small from a home office, you may not need any employees. But as your business grows, you will likely need workers to fill various roles. Potential positions for a title company business would include:

• Title Agents – to handle closings
• General Manager – scheduling, staff management
• Marketing Lead – SEO strategies, social media, call realtors

At some point, you may need to hire all of these positions or simply a few, depending on the size and needs of your business. You might also hire multiple workers for a single role or a single worker for multiple roles, again depending on need. 

Free-of-charge methods to recruit employees include posting ads on popular platforms such as LinkedIn, Facebook, or Jobs.com. You might also consider a premium recruitment option, such as advertising on Indeed , Glassdoor , or ZipRecruiter . Further, if you have the resources, you could consider hiring a recruitment agency to help you find talent. 

Step 13: Start Making Money!

Title companies perform an essential service that protects homeowners and lenders. It’s a large industry in the US, and its market size has nearly doubled in the last decade alongside a real estate boom.

A bold entrepreneur can grab a share of this lucrative market and make good money. You can start small as a mobile service and eventually grow to have multiple brick-and-mortar locations. Startup costs are relatively low, and the process of becoming licensed does not take long. 

Now that you have all the information you need, you’re ready to start your entrepreneurial journey to building a title empire!

• Title Company Business FAQs

Every state has its own licensing requirements. Generally, you have to complete a certain number of education hours and pass an exam. Check your state’s website for requirements.

Title insurance protects the homeowner and lender from potential defects in a title. Defects might be unsatisfied liens, legal issues, or even clerical errors. 

The process for conducting title searches and issuing title insurance policies involves a thorough examination of public records to determine the property’s ownership history and any potential issues. The title company resolves any problems discovered and issues title insurance policies to protect the buyer and lender from future claims or disputes.

A title company plays a vital role in the closing process by examining the property’s title, providing escrow services, issuing title insurance policies, and facilitating the closing meeting where documents are signed, funds are exchanged, and ownership is transferred.

When a title dispute arises, a title company typically handles the situation in the following manner:

• Investigation: The title company thoroughly investigates the nature of the dispute by examining the relevant title records, contracts, and other relevant documents. They may also conduct interviews with involved parties to gather additional information.
• Legal Analysis: The title company consults with their in-house or external legal counsel to analyze the dispute and determine the potential legal implications. They assess the validity of the claims and review applicable laws, regulations, and contractual agreements.
• Mediation and Negotiation: Depending on the circumstances, the title company may engage in mediation or negotiation with the involved parties to find a resolution. They may facilitate discussions and work towards a mutually acceptable outcome, which could involve modifying the terms of the title, reaching a settlement, or clarifying ownership rights.
• Legal Defense: If the dispute escalates and legal action is initiated, the title company may provide legal defense or engage legal representation on behalf of the insured party. This can involve representing the insured party’s interests in court, presenting evidence, and arguing the case to protect the insured party’s title rights.
• Financial Compensation: If the insured party experiences financial loss due to an unsuccessful defense of the title or a defect in the title, the title insurance policy may provide financial compensation to cover the damages, up to the policy’s limits and subject to its terms and conditions.

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Save my name, email, and website in this browser for the next time I comment.

• Decide if the Business Is Right for You
• Hone Your Idea
• Brainstorm a Title Company Name
• Create a Business Plan
• Register Your Business
• Register for Taxes
• Fund your Business
• Apply for Licenses/Permits
• Open a Business Bank Account
• Get Business Insurance
• Prepare to Launch
• Build Your Team
• Start Making Money!

Subscribe to Our Newsletter

Featured resources.

15 Profitable Manufacturing Business Ideas

Carolyn Young

Published on December 1, 2022

If you’re thinking of starting a business, manufacturing may not be at the top of your list. It sounds daunting, and getting started is likely tor ...

17 Business Ideas that Help the Community

Esther Strauss

Published on July 29, 2022

Just about everybody wants to live in a warm, welcoming close-knit community, and you can help build one by starting a business that helps peopleliv ...

24 Construction Business Ideas

David Lepeska

Published on July 13, 2022

As the US economy regains strength in the wake of the pandemic, the construction industry is anticipating strong growth with plenty ofopportunities, ...

No thanks, I don't want to stay up to date on industry trends and news.

Insurance Agency Business Plan Template

Written by Dave Lavinsky

Writing a Successful Business Plan For Your Insurance Agency + Template

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 >

Why Write a Business Plan For an Insurance Agency ?

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.

How To Write a Business Plan For an Insurance Agency  

While every business plan is different, there are 10 essential components that all insurance agency business plans should include:

Executive Summary

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:

Company Overview

[Insert Company Introduction / Short Summary]

Business Goals

[Insert Business Goals & How You Plan To Achieve Them]

Industry Overview

[Insert Industry Statistics on the Size of Your Market]

Competition

[Insert Overview of Competitors & Your Competitive Advantage]

[Insert Information About The Marketing Strategies You Will Use To Attract Clients/Customers]

Financial Overview

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:

• Company History & Accomplishments To Date

Mission Statement and/or Company Values

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:

• Life insurance agency
• Health insurance agency
• Auto insurance agency
• Homeowners insurance agency
• Commercial Insurance Agency

For example, an insurance agency company description might look something like this:

We are an X type of insurance agency .

Company History

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:

• What is the overall size of the insurance industry?
• How is the industry growing or changing?
• What are the major trends affecting the insurance industry?
• Who are the major players in the insurance industry?

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.

How We Fit Into The Industry

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.

• Who are your target customers?
• What are their needs?
• How do they interact with your industry?
• How do they make purchasing decisions?

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:

Target Market & Demographics

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

Psychographics

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.

• Who are your major competitors?
• What are their strengths and weaknesses?
• How do they compare to you?

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:

Major Competitors

XYZ Company is our major competitor. Its offerings include this, this and this. Its strengths include XYZ, and its weaknesses include XYZ.

Competitive Advantage

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:

• Products/Services : Here is where you’ll document your product/service offerings.
• Price : Detail your pricing strategy here.
• Place : Document where customers will find you and whether you will use distribution channels (e.g., partnerships) to reach them.
• Promotion : Here you will document how you will reach your target customers. For instance, insurance agencies often reach new customers via promotional tactics including online advertising, direct mail, and personal selling.

For example, your marketing plan might look something like this:

Products/Services

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.

• What are your company’s daily operations?
• How are your company’s operations structured?
• Who is responsible for each task?

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:

Daily Operations

Our company’s daily operations include XYZ.

Operational Structure

Our company is structured as follows:

• Department 1
• Department 2
• Department 3

Each department is responsible for XYZ tasks.

Long-Term Goals

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.

• Who is on your management team?
• What are their qualifications?
• What is 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: 

Team member 1’s qualifications and experience include XYZ.

Team Member 2: 

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.

• What are your company’s projected revenues?
• What are your company’s projected expenses?
• What is your company’s projected growth rate?
• How much funding do you need and for what purposes? For example, most startup insurance agencies need outside funding for pre-launch activities such as licenses, office space, and marketing initiatives.

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.

Expenses & Net Income

Our company’s projected expenses and net income over the next five years are $XYZ.

Uses of Funding

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:

• Full financial statements
• Resumes of key management team members
• Letters of reference
• Articles or press releases
• Marketing materials
• Product information
• Any other relevant information

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.  

Finish Your Business Plan in 1 Day!

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!

Finish your business plan today!

1777 SW Chandler Ave. Suite 267 Bend, OR 97702

Business Plan Services Business Plan Writing Business Plan Consultants

How to build an insurance agency business plan

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 not get off the ground.

Let’s look at the benefits of creating a business plan and what yours should include.

Why do you need a business plan?

Before diving into the details of building a plan, let’s start with why you should write one in the first place.

After all, a good business plan requires careful research, writing, and review. But it’s worth the effort.

Companies that plan grow 30% faster than those who don’t.

A solid plan can help you make sound decisions when you’re first starting out and as you grow. Even down the road, it can help you secure funding from banks and investors. And insurance carriers often want to see your plan before they’ll partner with your agency.

Beyond these benefits and your own peace of mind, creating a business plan can help you:

• Set realistic objectives.
• Allocate resources.
• Streamline workflows.
• Improve communication.
• Grow your business.

Once your business gets off the ground, periodically reviewing your plan is a great way to clarify your goals and refine how you’ll reach them.

A Journal of Business Venturing study has shown that companies that plan grow 30% faster than those who don’t.

How do you write a business plan?

Business plans can be as different as the businesses they describe, but they generally provide highlights of your business in 5,000 words or less.

Your insurance agency plan must define your business strategy if you plan to seek financing. Essentially, your plan needs to be useful to you and intriguing to investors.

Standard business plan templates typically include these sections.

Executive summary

The executive summary is a snapshot of your insurance business.

For an established agency, this section might include its mission statement and detail its past successes. For a startup, the executive summary might highlight the experience of the business owners and their motivation for starting an insurance agency.

For both new and established businesses, you can also include your agency’s general financial information. This might be an overview of your book of business or a list of current investors.

The executive summary is usually the first impression investors have of your business. Make sure it packs a punch and provides a compelling story.

Company description

A company description gets more specific about what your business does on a day-to-day basis.

The company description explains your keys to success. These can be the value you provide to customers and what sets you apart from the competition. Sometimes they’re one and the same. Pinpoint what you bring to the local insurance market, like:

• A prime office location
• Unparalleled expertise
• Unique products

You may want to include a SWOT analysis that details your business’s strengths, weaknesses, opportunities, and threats.

List of products

This section lists every insurance product that your business offers or plans to offer in the future.

Be sure to include product benefits, sales forecasts, and how you plan to acquire and manage the products.

You may also want to explain how independent agents can secure direct appointments with insurance carriers. Many investors may be unfamiliar with this process.

Market analysis

The market analysis shows your understanding of the insurance market in general. And more importantly, where your agency fits in the mix.

If you plan to fill a niche, explain why and how. Either way, describe your target market and the competition.

Potential investors may also want to see specific market goals, such as your target market share along with an explanation of how and when you’ll achieve it.

Marketing strategy

Every insurance agency needs to reach new customers to grow its business and be successful. In this section, outline how you’ll market your business to attract new customers and increase sales to current ones.

Briefly summarize your strategy, including some details like whether you plan to use traditional and/or digital marketing channels. This might also be a good place to share your sales strategy for converting leads into customers.

Organization and management

The organization and management section introduces your executive and management teams, including a summary of their unique qualifications.

Detailing your team’s experience and talent helps establish your agency’s credibility. It also builds trust in your business and leadership team.

You may also want to include an organizational chart that breaks down your business infrastructure and operations.

Financial plan

If your business is looking for funding, you’ll usually need to identify start-up costs and provide five years of prospective financial data. This typically includes:

• Balance sheets
• Income statements
• Cash-flow statements
• Capital expenditure budgets

You may want to include a break-even analysis that delves into the specific profitability of your products. Consider adding a short financial analysis of the most profitable industry trends.

Funding request

If you're seeking investors for your insurance company, add a funding request at the end of your business plan. Typically, a funding request mentions:

• The amount of funding you’re looking to secure.
• An estimate of your future funding needs.
• How you plan to use the funding.
• Your strategy for dealing with developments like a buyout.

If you’re ready to draft your business plan, the Small Business Administration (SBA) provides this business plan template to help you get started.

How to present your insurance agency business plan

Once you’ve completed your business plan, give it a chance to shine in the spotlight.

Presentation matters, so make it professional. Use an easy-to-read font and clear charts and diagrams to illustrate your points. Be prepared to provide both a digital and print version to potential business partners, banks, or investors.

How you present matters, too. Whenever possible, meet in person to build more trust and rapport.

And even though your business plan is full of details, your audience will likely ask you to expand or explain. Come prepared to respond to any potential objections.

Your thorough, compelling business plan can help build the foundation for your success. If you devote the time and energy needed to create a great one, it could pay large dividends for your business.

Complete Insureon’s easy online application today to compare quotes for business insurance from top-rated U.S. carriers. Once you find the right policy for your small business, you can begin coverage in less than 24 hours.

Hannah Filmore-Patrick, Contributing Writer

Hannah is a contributing writer with a diverse writing and content building background. She's worked on topics from technology to insurance. She's competent with both language and SEO, and continues to work with a variety of business verticals to create engaging, optimized content.

* Mandatory fields

By clicking "Get Started", I consent by electronic signature to being contacted by EverQuote, including by automatic telephone dialing and/or an artificial or prerecorded voice (including SMS and MMS - charges may apply), regarding EverQuote for Agents, even if my phone number is listed on a Do Not Call Registry. I also understand that my agreement to be contacted is not a condition of purchasing any goods or services, and that I may call   (844) 707-8800   to speak with someone about EverQuote for Agents.

By clicking "Get Started", I affirm that I have read and agree to this website’s   Privacy Policy   and   Terms of Use , including the arbitration provision and the   E-SIGN Consent.   Consent.

• Agents Blog
• Running & Growing your Agency
• Upcoming Webinars
• IAA Presentations
• Share this Hub
• EverQuote Pro Blog »

Launch Your New Insurance Agency With This Business Plan Template

Whether you're a brand new agent or one with several decades of experience, the idea of opening a new insurance agency probably seems daunting—where do you start?

One of the first things you’ll need to do is come up with a business plan for your insurance agency. After all, you can walk into a bank or a potential investor’s office looking for funding, but you won’t get very far unless you have a robust insurance agency business plan that proves you’re on the right track toward turning a profit in the near future.

Follow the steps below when building out your insurance business plan to maximize your chances of securing funding and getting your new agency off to a strong start.

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 “hows.”

Ask yourself:

• Why do you want to open an agency?
• What types of insurance do you wish to sell?
• What do you hope to accomplish?
• What return on investment do you expect to receive?
• How are you going to generate demand and ensure supply for your service?

Jot your answers down so you can refer back to them as you move forward.

2. Decide whether you want to be a captive agent or an independent agent.

Many large agencies, such as Allstate and Farmers, work with captive agents who can only sell insurance for that specific provider. Independent agents, on the other hand, can sell insurance for multiple providers, but they get locked out of working with the big-name captive carriers who only work with captive agents. (Read more about captive agents here and get a seasoned agent’s POV on both types of agents here. )

Before you can nail down the details of the rest of your business plan, you’ll have to make a choice between these two options.

3. Do a market analysis.

Though it might seem like a tedious process, conducting a thorough market analysis is crucial to your success. Analyzing your local market—including the backgrounds, shopping behaviors, and preferences of your target customers—gives you the insights you’ll need to attract these folks to your business.

Your market analysis will look a little different depending on whether you prefer to be a captive or an independent agent. The state you live in is another factor that will affect your analysis—in fact, it may even influence your decision to be captive or independent.

Take a close look at the demographics of your region.

• How many homeowners live in your state?
• What’s the average insurance premium per home?
• How many people live in each home, on average?
• How many drivers live in your state?
• How many vehicles does the average household own?
• Do you live in an area with an aging population ?
• How many families live in your region?
• What insurance carriers do locals in your state gravitate toward?
• In your area, what might be some successful strategies for retaining clients (rather than just acquiring them)?

These questions are all important, but pay particular attention to the last one. If you open an agency without a plan for client retention, you’re going to struggle. And, unfortunately, this is one of the most overlooked aspects of an insurance agency business plan.

4. Identify where you’ll find your first clients.

It’s one thing to know there are X number of potential clients living in your state, but it’s quite another to have a plan that will help you reach out to those folks and land your first policy sales.

Some investors will require a list of leads before they’ll even consider funding your agency. Even if it’s not a requirement, it’s always a good idea to have a pipeline ready to go. This is where getting set-up for purchasing warm leads from EverQuote can put you in a great position for success.

Plus, tackling this step before you even open your doors will help you better understand the costs you’ll incur—and therefore how much startup funding you will need.

You might also consider other options, such as placing ads in local newspapers, going to networking events, investing in digital marketing, sponsoring local Little League teams, or asking for referrals.

5. Create a financial plan.

Many new agencies fail because their owners overlooked something critical during startup. Do your best to look at your financial plans from every angle:

• Where will you find leads, and how much will they cost?
• What is your advertising budget?
• Does this budget line up with the going rates of local newspapers, billboards, or online ads?
• Do you plan to have 1099 employees or W2 employees selling insurance for your agency?
• How will you decide on a commission and benefits structure for these employees?
• What retention and loss ratios (for clients and employees) do you expect based on the numbers of other agencies in your area?
• How will you handle the delay between policy renewals and income hitting your bank account?
• If there are X amount of people shopping for insurance in your area, what percentage of those people are in a niche you can serve?
• From that percentage of potential clients, how many do you think you can successfully land?
• If you sell policies to these customers, how much will you earn from their premiums?
• How do your projected profits compare to your expected advertising costs, the cost to buy leads, office rent, and other expenses?

Take detailed notes of your calculations, and try to run the numbers a few different ways to obtain a conservative outcome, a likely outcome, and a “best case scenario.”

6. Draw up a formal business plan using a proven format.

Your notes will be incredibly valuable as you move forward, but you’ll need a way to present them clearly and concisely in a way that looks attractive to investors.

Loan officers and investors don’t want to read long-form essays detailing your business background and your ideas for the future. Keep your format simple and straightforward, with clear sections that answer the questions investors will want to know.

We recommend a format similar to the following:

Executive Summary Overall mission Primary objectives Keys to success Financial plans Profit forecast for at least three years Business Summary Business overview Summary of startup costs Funding you’ll require Company executives/ownership Services Services you provide Market Analysis Overall business analysis Details of your competition Buying patterns of your competition Your planned buying patterns Market segmentation and analysis Target market strategies Include details for each market segment Strategy Your competitive edge Marketing strategy Sales strategy Yearly sales projections Key milestones Management Your plan for finding staff Financial Plan Funding you have accepted Funding you will need Detailed startup costs Calculations for your break-even point Projected profit Yearly profit Gross and net yearly profit Anticipated losses, if any Cash flow patterns Plans for balance sheet Calculations of important business ratios

7. Revise and adjust your plan over time.

You may not secure funding for your agency immediately. Even if you do, you’ll likely find that your real world numbers don’t match up exactly with your calculated projections. Plus, carriers frequently change their underwriting policies, and the economy itself is always in a state of flux.

Keep your business plan current by updating the information anytime circumstances change.

Start your journey with a full lead pipeline from EverQuote.

One of the scariest parts about starting a new agency is not being certain where and when you’ll be able to start making sales.

Skip the fear and the unknown and go right to making sales with warm real-time leads from EverQuote. Whether you’re still trying to find startup funding or your doors are already open, you can always boost your business and maximize your chances of a steady income by working with EverQuote.

Connect with us today.

Topics: Featured , Insurance Agency Growth

About the Author Chris Durling, VP of P&C Sales

Chris Durling is a visionary leader in P&C insurance sales and distribution, with over 10 years of experience in the industry.

Most Recent Articles

If you’re at all familiar with digital marketing—maybe you’ve dabbled in it a bit or even just done...

Scott Grates, insurance agent and co-founder of Insurance Agency Optimization, is renowned for his...

When it comes to nurturing your insurance agency’s online business reputation, there are numerous...

If the year 2023 had a buzzword, that buzzword was definitely AI. Artificial intelligence took off...

Despite current economic complexities, many industries are still hiring at a dependable pace. Among...

If you had to name the most tedious, time-consuming, thankless task in your insurance sales job,...

Creating a new insurance agency is a complex process, just like building any new business from the...

Previous Article

Next Article

Ready to see what partnering with EverQuote can do for you?

Our representatives are standing by to help you succeed.

Call 844-707-8800

Weekdays, 9AM-5PM (ET)

By clicking "Get Started", I affirm that I have read and agree to this website’s   Privacy Policy   and   Terms of Use , including the arbitration provision and the   E-SIGN Consent.

By clicking "Get Started", I affirm that I have read and agree to this website’s   Privacy Policy   and   Terms of Use , including the arbitration provision and the   E-SIGN Consent.  For quality control purposes, activity on this website may be monitored or recorded by EverQuote or its service providers.

Terms of Use

Privacy Policy

For quality control purposes, activity on this website may be monitored or recorded by EverQuote or its service providers

+971 4 457 8200

Refer & earn.

Home > Business Plan Templates > Insurance Agency Business Plan Template With Examples

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

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.

Introduction and Agency Overview

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.

Mission and Vision Statement

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.

Geographic Area and Accessibility

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.

Type of Insurance Services Offered

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.

Key Goals and Objectives

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.

2. Services Overview

This section offers an in-depth understanding of your insurance agency’s offerings, their relevance, and their potential impact on your customers’ lives.

Service Definition and Themes

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.

Range of Insurance Services

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.

Target Customer Analysis

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.

3. Agency History and Organisation

This section provides a historical background of your insurance agency and insight into its organisational structure.

Legal Status and 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.

Owners and Management Team

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.

Key Milestones

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.

4. Business Model

This section will depict how your agency operates, generates revenue, and strives towards financial sustainability.

Primary Revenue Sources

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.

Planned Partnerships and Collaborations

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.

Special Projects

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 .

5. Market Analysis

This section offers a deep dive into the market in which your insurance agency operates, including existing market needs, target demographics, and competitive environment.

Current Market Needs

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.

Target Market Analysis

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.

Competitive Analysis

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.

Positioning and Strategy

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.

6. Marketing and Acquisition Strategy

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.

Marketing Strategy

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.

Acquisition Plan

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.

Community Engagement and Outreach

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.

7. Operations

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.

Team Recruitment and Roles

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.

Office Structure and Management

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.

Technology Requirements

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.

Office Space Requirements

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.

8. Sales Strategy and Customer Retention

This section covers how your insurance agency plans to sell its services to potential customers and retain current clients.

Sales Tactics

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.

Website and Social Media

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.

Customer Engagement and Retention

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.

9. Financial Projections

This section focuses on your agency’s financial aspects, detailing how funds will be generated and utilised.

Current/Projected Budget

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.

Proposed Financing

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.

Key Financial Assumptions and Justifications

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.

10. Appendices

This section includes any additional documents or supporting material related to your agency’s business plan.

Organisational Chart

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.

Resumes of Key Staff

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.

Detailed Budget

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.

Related Market Research

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.

Wrapping Up Our Insurance Agency Business Plan Template

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!

Recent Posts

• Accounting (35)
• Business and Leadership Skills (63)
• Business Plan Templates (9)
• Business Setup (60)
• Business Software and Tools (61)
• Business Success and Challenges (74)
• Entrepreneurship (186)
• Featured Posts (31)
• Finance (62)
• Free Zones (35)
• Human Resources (55)
• Living in Dubai (23)
• Mainland (15)
• UAE Company Setup (139)
• Uncategorized (1)

Start your business today

Book your free 15 minute consultation.

Avoid expensive mistakes when setting up your business. Talk to one of our experts now.

Want to save on your business setup?

Starting a business? Check out our latest business setup offers now!

How much does it cost to start a company in Dubai?

Find out how much investment you’ll need to launch your own company in the UAE.

Get your FREE copy of our UAE Business Setup Guide

Discover the trade secrets to starting and growing a successful business in the UAE.

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. We will then go through an insurance agency business plan template step-by-step so you can create your plan today.

Download our Ultimate Insurance Business Plan Template here >

What is an Insurance Agency Business Plan?

A business plan provides a snapshot of your insurance agency as it stands today, and lays out your growth plan for the next five years. It explains your business goals and your strategy for reaching them. It also includes market research to support your plans.

Why You Need a Business Plan for an Insurance Agency

If you’re looking to start an insurance agency or grow your existing insurance agency you need a business plan. A business plan will help you raise funding, if needed, and plan out the growth of your insurance agency in order to improve your chances of success. Your insurance agency business plan is a living document that should be updated annually as your agency grows and changes.

Source of Funding for Insurance Agencies

With regards to funding, the main sources of funding for an insurance agency are personal savings, credit cards, bank loans, and angel investors. With regards to bank loans, banks will want to review your business plan and gain confidence that you will be able to repay your loan and interest. To acquire this confidence, the loan officer will not only want to confirm that your financials are reasonable. But they will want to see a professional plan. Such a plan will give them the confidence that you can successfully and professionally operate the business.

The second most common form of funding for an insurance agency is angel investors. Angel investors are wealthy individuals who will write you a check. They will either take equity in return for their funding, or, like a bank, they will give you a loan. Venture capitalists will not fund an insurance agency unless it is based on a unique, scalable technology.

Finish Your Business Plan Today!

Your insurance agency business plan should include 10 sections as follows:

Executive Summary

Your executive summary provides an introduction to your business plan, but it is normally the last section you write because it provides a summary of each key section of your plan.

The goal of your Executive Summary is to quickly engage the reader. Explain to them the type of insurance agency business you are operating and the status; for example, are you a startup, do you have an insurance agency that you would like to grow, or are you operating multiple insurance agency locations already.

Next, provide an overview of each of the subsequent sections of your plan. For example, give a brief overview of the insurance agency industry. Discuss the type of insurance agency you are operating. Detail your direct competitors. Give an overview of your target customers. Provide a snapshot of your marketing plan. Identify the key members of your team. And offer an overview of your financial plan.

Company Analysis

In your company analysis, you will detail the type of insurance agency you are operating.

For example, you might operate one of the following types:

• Direct Writer / Captive : this type of insurance agency only sells one insurance company’s products – like Allstate or State Farm
• Independent Insurance Agent : this type of insurance agency is privately-owned, and sells policies with may different insurance companies

In addition to explaining the type of insurance agency you operate, the Company Analysis section of your business plan needs to provide background on the business.

Include answers to question such as:

• When and why did you start the business?
• What milestones have you achieved to date? Milestones could include sales goals you’ve reached, new location openings, etc.
• Your legal structure. Are you incorporated as an S-Corp? An LLC? A sole proprietorship? Explain your legal structure here.

Industry Analysis

In your industry analysis, you need to provide an overview of the insurance business.

While this may seem unnecessary, it serves multiple purposes.

First, researching the insurance industry educates you. It helps you understand the market in which you are operating.

Secondly, market research can improve your strategy particularly if your research identifies market trends. For example, if there was a trend towards weather-related policy purchases, it would be helpful to ensure your plans call for flood insurance options.

The third reason for market research is to prove to readers that you are an expert in your industry. By conducting the research and presenting it in your plan, you achieve just that.

The following questions should be answered in the industry analysis section of your insurance company business plan:

• How big is the insurance agency business (in dollars)?
• Is the market declining or increasing?
• Who are the key competitors in the market?
• Who are the key insurance carriers in the market?
• What trends are affecting the industry?
• What is the industry’s growth forecast over the next 5 – 10 years?
• What is the relevant market size? That is, how big is the potential market for your insurance agency. You can extrapolate such a figure by assessing the size of the market in the entire country and then applying that figure to your local population.

Customer Analysis

The customer analysis section of your insurance agency business plan must detail the customers you serve and/or expect to serve.

The following are examples of customer segments: individuals, households, businesses, etc.

As you can imagine, the customer segment(s) you choose will have a great impact on the type of insurance agency you operate. Clearly baby boomers would want different pricing and product options, and would respond to different marketing promotions than recent college graduates.

Try to break out your target customers in terms of their demographic and psychographic profiles. With regards to demographics, include a discussion of the ages, genders, locations and income levels of the customers you seek to serve. Because most insurance agencies primarily serve customers living in their same geographic region, such demographic information is easy to find on government websites.

Psychographic profiles explain the wants and needs of your target customers. The more you can understand and define these needs, the better you will do in attracting and retaining your customers.

Finish Your Insurance Business Plan in 1 Day!

Don’t you wish there was a faster, easier way to finish your business plan?

With Growthink’s Ultimate Insurance Business Plan Template you can finish your plan in just 8 hours or less!

Competitive Analysis

Your competitive analysis should identify the indirect and direct competitors your business faces and then focus on the latter.

Direct competitors are other insurance agencies.

Indirect competitors are other options that customers have to purchase from you that aren’t direct competitors. This includes self pay and public (Medicare, Medicaid in the case of health insurance) insurance or directly working with an insurance carrier. You need to mention such competition to show you understand that not everyone who purchases insurance does so through an insurance agency.

With regards to direct competition, you want to detail the other insurance agencies with which you compete. Most likely, your direct competitors will be insurance agencies located in your geographic region.

For each such competitor, provide an overview of their businesses and document their strengths and weaknesses. Unless you once worked at your competitors’ businesses, it will be impossible to know everything about them. But you should be able to find out key things about them such as:

• What types of customers do they serve?
• What products do they offer?
• What is their pricing (premium, low, etc.)?
• What are they good at?
• What are their weaknesses?

With regards to the last two questions, think about your answers from the customers’ perspective.

The final part of your competitive analysis section is to document your areas of competitive advantage. For example:

• Will you provide superior insurance agency products/services?
• Will you provide insurance agency products that your competitors don’t offer?
• Will you make it easier or faster for customers to acquire your products?
• Will you provide better customer service?
• Will you offer better pricing?

Think about ways you will outperform your competition and document them in this section of your plan.

Marketing Plan

Traditionally, a marketing plan includes the four P’s: Product, Price, Place, and Promotion. For an insurance agency business plan, your marketing plan should include the following:

Product : in the product section you should reiterate the type of insurance agency that you documented in your Company Analysis. Then, detail the specific products/services you will be offering. For example, in addition to P&C insurance, will you also offer life insurance?

Price : Document the prices you will offer and how they compare to your competitors. Essentially in the product and price sub-sections of your marketing plan, you are presenting the menu items you offer and their prices.

Place : Place refers to the location of your insurance agency. Document your location and mention how the location will impact your success. For example, is your insurance agency located next to the Department of Motor Vehicles, or a heavily populated office building, etc. Discuss how your location might provide a steady stream of customers.

Promotions : the final part of your insurance agency marketing plan is the promotions section. Here you will document how you will drive customers to your location(s). The following are some promotional methods you might consider:

• Making your insurance agency’s front store extra appealing to attract passing customers
• Advertising in local papers and magazines
• Reaching out to local bloggers and websites
• Partnerships with local organizations (e.g., auto dealerships or car rental stores)
• Local radio advertising
• Banner ads at local venues

Operations Plan

While the earlier sections of your business plan explained your goals, your operations plan describes how you will meet them. Your operations plan should have two distinct sections as follows.

Everyday short-term processes include all of the tasks involved in running your insurance agency such as serving customers, procuring relationships with insurance carriers, negotiating with repair shops, etc.

Long-term goals are the milestones you hope to achieve. These could include the dates when you expect to acquire your 500th customer, or when you hope to reach $X in sales. It could also be when you expect to hire your Xth employee or launch a new location.

Management Team

To demonstrate your insurance agency’s ability to succeed as a business, a strong management team is essential. Highlight your key players’ backgrounds, emphasizing those skills and experiences that prove their ability to grow a company.

Ideally you and/or your team members have direct experience in the insurance agency business. If so, highlight this experience and expertise. But also highlight any experience that you think will help your business succeed.

If your team is lacking, consider assembling an advisory board. An advisory board would include 2 to 8 individuals who would act like mentors to your business. They would help answer questions and provide strategic guidance. If needed, look for advisory board members with experience in insurance agencies and/or successfully running small businesses.

Financial Plan

Your financial plan should include your 5-year financial statement broken out both monthly or quarterly for the first year and then annually. Your financial statements include your income statement, balance sheet and cash flow statements.

Income Statement : an income statement is more commonly called a Profit and Loss statement or P&L. It shows your revenues and then subtracts your costs to show whether you turned a profit or not.

In developing your income statement, you need to devise assumptions. For example, will you acquire 20 new customers per month or 50? And will sales grow by 2% or 10% per year? As you can imagine, your choice of assumptions will greatly impact the financial forecasts for your business. As much as possible, conduct research to try to root your assumptions in reality.

Balance Sheets : While balance sheets include much information, to simplify them to the key items you need to know about, balance sheets show your assets and liabilities. For instance, if you spend $100,000 on building out your insurance agency location and/or website, that will not give you immediate profits. Rather it is an asset that will hopefully help you generate profits for years to come. Likewise, if a bank writes you a check for $100.000, you don’t need to pay it back immediately. Rather, that is a liability you will pay back over time.

Cash Flow Statement : Your cash flow statement will help determine how much money you need to start or grow your business, and make sure you never run out of money.

In developing your Income Statement and Balance Sheets be sure to include several of the key costs needed in starting or growing an insurance agency:

• Location build-out including design fees, construction, etc.
• Marketing expenses
• Website development
• Payroll or salaries paid to staff
• Business insurance
• Taxes and permits
• Legal expenses

Attach your full financial projections in the appendix of your plan along with any supporting documents that make your plan more compelling. For example, you might include your store design blueprint or location lease.

Insurance Business Plan Summary

Putting together a business plan for your insurance agency is a worthwhile endeavor. If you follow the template above, by the time you are done, you will truly be an expert. You will really understand the insurance agency business, your competition and your customers. You will have developed a marketing plan and will really understand what it takes to launch and grow a successful insurance agency.

Download Our Insurance Business Plan PDF

You can download our insurance business plan PDF here . This is a business plan template you can use in PDF format.

Insurance Business Plan FAQs

What is the easiest way to complete my insurance business plan.

Growthink's Ultimate Insurance Business Plan Template allows you to quickly and easily complete your Insurance Business Plan.

Where Can I Download an Insurance Business Plan PDF?

You can download our insurance business plan PDF template here . This is a business plan template you can use in PDF format.

Don’t you wish there was a faster, easier way to finish your Insurance business plan?

OR, Let Us Develop Your Plan For You

Since 1999, Growthink has developed business plans for thousands of companies who have gone on to achieve tremendous success.   Click here to learn about Growthink’s business plan writing services .

Other Helpful Business Plan Articles & Templates

• We're Hiring!

Crafting an Effective Insurance Agency Business Plan

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:

• 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 business plan into an effective tool for growth.

Benefits of having a business plan

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.

Strategic direction

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.

Goal setting

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.

Investor confidence

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.

Adaptability

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.

Key components of an insurance agency business plan

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. 

Executive summary

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.

Company overview

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.

Industry analysis

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.

Customer analysis

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.

Competitive analysis

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.

Marketing plan

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.

Operations plan

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.

Management team

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. 

Financial plan

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.

Tips for creating an effective insurance agency business plan

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.

Define your brand

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.

Research funding options

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.

Apply for licenses

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.

Set goals and establish metrics

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.

A strategic roadmap for 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

Request an Appointment with Openly

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.

Related Blogs

May 18, 2023

December 21, 2023

May 15, 2023

How To Write an Insurance Company Business Plan + Template

Creating a business plan is essential for any business, but it can be especially helpful for insurance companies that want to improve their strategy and/or raise funding.

A well-crafted business plan not only outlines the vision for your company, but also documents a step-by-step roadmap of how you are going to accomplish it. In order to create an effective business plan, you must first understand the components that are essential to its success.

This article provides an overview of the key elements that every insurance company owner should include in their business plan.

Download the Ultimate Insurance Business Plan Template

What is an Insurance Company Business Plan?

An insurance company business plan is a formal written document that describes your company’s business strategy and its feasibility. It documents the reasons you will be successful, your areas of competitive advantage, and it includes information about your team members. Your business plan is a key document that will convince investors and lenders (if needed) that you are positioned to become a successful venture.

Why Write an Insurance Company Business Plan?

An insurance company business plan is required for banks and investors. The document is a clear and concise guide of your business idea and the steps you will take to make it profitable.

Entrepreneurs can also use this as a roadmap when starting their new company or venture, especially if they are inexperienced in starting a business.

Writing an Effective Insurance Company Business Plan

The following are the key components of a successful insurance company business plan:

Executive Summary

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 your business plan, which includes information about your company’s management team, industry analysis, competitive analysis, and financial forecast among others.

Company Description

This section should include a brief history of your company. Include a short description of how your company started, and provide a timeline of milestones your company has achieved.

If you are just starting your insurance company , you may not have a long company history. Instead, you can include information about your professional experience in this industry and how and why you conceived your new venture. If you have worked for a similar company before or have been involved in an entrepreneurial venture before starting your insurance company firm, mention this.

You will also include information about your chosen insurance company business model and how, if applicable, it is different from other companies in your industry.

Industry Analysis

The industry or market analysis is an important component of an insurance company business plan. Conduct thorough market research to determine industry trends and document the size of your market. 

Questions to answer include:

• What part of the insurance industry are you targeting?
• How big is the market?
• What trends are happening in the industry right now (and if applicable, how do these trends support the success of your company)?

You should also include sources for the information you provide, such as published research reports and expert opinions.

Customer Analysis

This section should include a list of your target audience(s) with demographic and psychographic profiles (e.g., age, gender, income level, profession, job titles, interests). You will need to provide a profile of each customer segment separately, including their needs and wants.

For example, the customers of an insurance company may include individuals, families, small businesses, and large corporations.

You can include information about how your customers make the decision to buy from you as well as what keeps them buying from you.

Develop a strategy for targeting those customers who are most likely to buy from you, as well as those that might be influenced to buy your products or insurance company services with the right marketing.

Competitive Analysis

The competitive analysis helps you determine how your product or service will be different from competitors, and what your unique selling proposition (USP) might be that will set you apart in this industry.

For each competitor, list their strengths and weaknesses. Next, determine your areas of competitive differentiation and/or advantage; that is, in what ways are you different from and ideally better than your competitors.

Below are sample competitive advantages your insurance company may have:

• Specialized industry knowledge
• Proven track record
• Strong customer relationships
• Robust product offerings
• Innovative solutions

Marketing Plan

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. In addition to stating the prices for your products/services, mention how your pricing compares to your competition.
• Place : Where will your customers find you? What channels of distribution (e.g., partnerships) will you use to reach them if applicable?
• Promotion : How will you reach your target customers? For example, you may use social media, write blog posts, create an email marketing campaign, use pay-per-click advertising, launch a direct mail campaign. 
• Or, you may promote your insurance company business via word of mouth.

Operations Plan

This part of your insurance company business plan should include the following information:

• How will you deliver your product/service to customers? For example, will you do it in person or over the phone only?
• What infrastructure, equipment, and resources are needed to operate successfully? How can you meet those requirements within budget constraints?

The operations plan is where you also need to include your company’s business policies. You will want to establish policies related to everything from customer service to pricing, to the overall brand image you are trying to present.

Finally, and most importantly, in your Operations Plan, you will lay out the milestones your company hopes to achieve within the next five years. Create a chart that shows the key milestone(s) you hope to achieve each quarter for the next four quarters, and then each year for the following four years. Examples of milestones for an insurance company include reaching $X in sales. Other examples include expanding to a new geographic market, launching a new product or service line, or signing on new major customers.

Management Team

List your team members here including their names and titles, as well as their expertise and experience relevant to your specific insurance industry. Include brief biography sketches for each team member.

Particularly if you are seeking funding, the goal of this section is to convince investors and lenders that your team has the expertise and experience to execute on your plan. If you are missing key team members, document the roles and responsibilities you plan to hire for in the future.

Financial Plan

Here you will include a summary of your complete and detailed financial plan (your full financial projections go in the Appendix). 

This includes the following three financial statements:

Income Statement

Your income statement should include:

• Revenue : how much revenue you generate.
• Cost of Goods Sold : These are your direct costs associated with generating revenue. This includes labor costs, as well as the cost of any equipment and supplies used to deliver the product/service offering.
• Net Income (or loss) : Once expenses and revenue are totaled and deducted from each other, this is the net income or loss.

Sample Income Statement for a Startup Insurance Company

Balance Sheet

Include a balance sheet that shows your assets, liabilities, and equity. Your balance sheet should include:

• Assets : All of the things you own (including cash).
• Liabilities : This is what you owe against your company’s assets, such as accounts payable or loans.
• Equity : The worth of your business after all liabilities and assets are totaled and deducted from each other.

Sample Balance Sheet for a Startup Insurance Company

Cash Flow Statement

Include a cash flow statement showing how much cash comes in, how much cash goes out and a net cash flow for each year. The cash flow statement should include:

• Cash Flow From Operations
• Cash Flow From Investments
• Cash Flow From Financing

Below is a sample of a projected cash flow statement for a startup insurance company business.

Sample Cash Flow Statement for a Startup Insurance Company

You will also want to include an appendix section which will include:

• Your complete financial projections
• A complete list of your company’s business policies and procedures related to the rest of the business plan (marketing, operations, etc.)
• Any other documentation which supports what you included in the body of your business plan.

Writing a good business plan gives you the advantage of being fully prepared to launch and/or grow your insurance company . It not only outlines your business vision but also provides a step-by-step process of how you are going to accomplish it. All in all, a business plan is a key to the success of any business.  

Finish Your Insurance Business Plan in 1 Day!

Other helpful articles.

How To Write an Insurance Agency Business Plan + Template

Financial modeling spreadsheets and templates in Excel & Google Sheets

• Your cart is empty.

Blueprint for Success: Insurance Agency Business Plan

Creating a blueprint for success with an insurance agency business plan starts with clear goals and strategic marketing. It includes a detailed breakdown of operational structure and financial projections.

Crafting a successful insurance agency business plan requires a solid foundation of objectives, meticulous market analysis, and an understanding of what sets your agency apart from the competition. This document serves as a roadmap directing you toward your business’s operational and financial goals, ensuring every decision aligns with your overarching vision.

An effective plan also encompasses risk assessment and management strategies, helping secure your agency’s future in a fluctuating market. It outlines the services you will offer, the target market you aim to serve, and the tactics you will employ to reach potential clients. It’s imperative for agents to articulate the business’s unique selling proposition (USP), which serves as the cornerstone of client attraction and retention efforts. The business plan is essential for not only guiding the growth of a new agency but also for seeking investment or financial backing as part of its sustainability measures.

Introduction To Insurance Agency Business Planning

A well-thought-out business plan forms the backbone of any successful insurance agency. Crafting a roadmap not only guides future growth but also anticipates potential challenges. Whether you’re kicking off a new agency or steering your current one into new waters, a detailed plan keeps your business on the path to success.

Importance Of A Solid Business Plan

A solid business plan serves as a strategic framework for insurance agencies. It outlines objectives, strategies, and financial projections. An effective plan secures funding, sharpens focus, and improves decision-making. The structure of a plan typically includes an executive summary, company description, market analysis, organization and management, service or product line, marketing and sales, and financial projections.

Key Benefits For Insurance Agencies

Gaining a competitive edge in the insurance field hinges on strategic planning. The benefits are multifold:

• Direction: Defines clear goals and sets actionable steps.
• Performance Measurement: Helps track progress and growth.
• Risk Management : Identifies potential obstacles ahead.
• Resource Allocation: Ensures optimal use of assets and personnel.
• Stakeholder Confidence: Builds trust among investors and partners.

Mission Statement And Value Proposition

Imagine a roadmap to success for your insurance agency. Your ‘Mission Statement’ guides your journey. Your ‘Value Proposition’ shows why clients should join you. Let’s craft these vital pieces of your business plan together.

Crafting Your Agency’s Mission Statement

Defining your agency’s purpose starts with a mission statement. It’s the backbone of your brand. A clear mission statement sends a powerful message. It tells your clients and team why you exist and what you stand for .

Here’s how to create one:

• Reflect on your agency’s core beliefs.
• Focus on your commitment to your clients.
• Keep it short and memorable.
• Make it inspiring to all stakeholders.

A mission statement might look like this: “Empowering clients with secure, tailored insurance solutions.”

Defining Your Unique Value Proposition

Your value proposition sets you apart. It’s a promise that highlights what’s special about your agency . An excellent value proposition attracts and retains clients .

To establish it:

• Identify what makes your services unique.
• Understand your client’s needs and pain points.
• State clearly how you solve these problems.
• Show the tangible benefits clients receive.

For example, a value proposition could be, “Experience personalized coverage with our 24/7 client support team.”

Market Analysis And Target Customer

Every insurance agency starts with a solid business plan. An essential part of this blueprint is the Market Analysis and Target Customer section. Here, we dig deep into who will benefit most from your services and what the landscape of the insurance industry looks like.

Identifying Your Target Market

To build a successful agency, it’s crucial to know who you’re serving. Identifying your target market means understanding the specific demographics and needs of potential clients.

• Age range: Are your services suited for young adults, families, or retirees?
• Income level: What is the financial status of your ideal client?
• Occupation: Do certain professions require specialized insurance products?
• Geographic location: Which areas have the most potential clients?

Analyzing Industry Trends And Competition

Staying ahead means understanding current industry trends and competition . Regular industry analysis highlights opportunities and threats.

Trends shape the way insurance products evolve. For instance:

• Technology advancements in insurance applications
• Changes in government regulations
• Shifts in consumer preferences

Competition analysis reveals other players in your area:

By analyzing competition, you tailor your offerings to fill market gaps. This gives your agency a clear edge.

Insurance Products And Services

Embarking on the journey of creating a robust insurance agency demands a clear blueprint. A vital component is the selection of insurance products and services offered. This choice directly impacts client satisfaction and bottom-line results. Let’s delve into crafting the right product mix and integrating additional services that set your agency apart.

Selecting The Right Product Mix

Identifying the right cocktail of insurance offerings is critical. It should satisfy diverse client needs while staying financially beneficial. Balance is key. Mixing tailored products for individual clients with broader policies catering to the general public assures a varied clientele. Displaying transparent product details aids in client decision-making. Consider offering:

• Life Insurance : from term to whole life coverages
• Health Insurance : including personal, family, and group plans
• Property and Casualty : for personal and commercial assets
• Specialty Lines : niche markets require unique solutions

Additional Services To Differentiate Your Agency

Beyond standard insurance products, providing added value through extra services can make your agency stand out. Offering risk assessments, advisory services, or personalized claims support brings added convenience to clients. Educational workshops on insurance literacy also showcase your expertise. Thriving agencies often boast services that go the extra mile:

Marketing And Sales Strategies

Marketing and Sales Strategies are vital for the success of an insurance agency. Without a solid plan to reach and engage potential clients, even the most robust portfolio of insurance products may fail to generate business. Crafting a tailored marketing plan and implementing effective sales tactics are essential steps to ensure business growth and sustainability.

Developing A Marketing Plan

To create a robust footprint in the competitive insurance market, a comprehensive marketing plan is a must. Key components include:

• Market Research: Understand your audience’s needs and preferences.
• Branding: Create a unique image and message that sets your agency apart.
• Online Presence: Leverage your website and social media to reach a wider audience.
• Advertising: Invest in both digital and traditional advertising platforms.
• Community Engagement: Participate in local events to increase brand visibility.

Sales Tactics And Growth Strategies

Turning potential leads into loyal customers requires smart sales tactics. Here are strategies for dynamic business growth:

Also, consistent sales training for your team will ensure expertise in the products offered and the ability to close deals effectively.

Operational Plan And Workflow

An insurance agency’s business plan isn’t complete without a robust operational plan and workflow strategy. A well-structured operational plan ensures the smooth day-to-day running of the business. It maps out the essential tasks and procedures for efficient service delivery. Let’s delve deep into how insurance agencies can streamline their operations and implement effective workflows.

Streamlining Agency Operations

To enhance productivity, streamlining operations is vital. This simplifies tasks, reduces waste, and increases client satisfaction. The aim is for every procedure to be direct, efficient, and value-adding.

• Digital tools : Utilize technology for faster, error-free operations.
• Clear communication : Ensure everyone understands their role.
• Regular training : Keep staff updated on the latest industry trends.
• Delegate tasks : Assign responsibilities based on staff strengths.

Implementing Effective Workflows

An effective workflow is like a roadmap for productivity. It involves setting up a sequence of tasks that need to be completed in a particular order.

• Define tasks : Clearly outline each step in your agency’s processes.
• Set milestones : These act as checkpoints to gauge progress and performance.
• Automate when possible : Use software to handle repetitive tasks without manual input.
• Monitor and adapt : Regularly check workflows and adjust them for improvements.

Mapping out these workflows can help eliminate bottlenecks and reduce waiting times for clients. It is crucial for continued success and customer satisfaction.

Financial Projections And Funding

Crafting a robust business plan for an insurance agency involves precise financial planning. Financial projections and funding are the backbone of any successful business blueprint. This section helps you outline your agency’s financial future and determine the capital requirements for a smooth operation. Let’s unfold the two critical components: projecting your financial standings and exploring funding options.

Projecting Revenue And Expenses

Anticipating your cash flow is vital for agency survival and growth. You need to project your revenue and expenses accurately for informed decisions. Start with estimations on policy sales, renewals, and other services to forecast income. Itemize your costs such as salaries, office rent, and technology investments. Create a monthly or quarterly forecast for the best financial overview.

A detailed forecast table aids in visualizing this data:

Add more rows as necessary

Options For Agency Funding And Capital Requirements

An insurance agency requires capital for start-up costs and ongoing operations. Identify your capital requirements to approach funding strategically. Evaluate your personal savings, loans, or investor options. Remember, each funding path has distinct advantages and obligations.

• Personal savings: Low risk but limited by personal resources.
• Bank loans: Popular option, requires solid business plan and credit score.
• Investors: Potential for larger sums, but involves sharing control and profits.

Align your funding choice with business goals and financial projections. Proper funding ensures your agency meets its operational needs and secures a prosperous future.

Legal And Ethical Considerations

In the world of insurance, two pillars stand firm for a successful agency: legal compliance and ethical conduct. Navigating through complex regulations and upholding integrity are non-negotiable for credibility and trust. Let’s dive into the specifics that shape the backbone of every insurance business plan’s legal and ethical framework.

Understanding Insurance Laws And Regulations

Every insurance agency needs a solid grasp of the law. Knowledge is power, and it’s the key to navigate through the intricate maze of insurance regulations. These rules ensure fair play, protect consumer rights, and maintain market stability. Breaking them can lead to heavy penalties or license revocation.

• Compliance with State Laws: Insurance is regulated on a state-by-state basis. Agencies must follow specific guidelines for operations in each state.
• Licensing Requirements: Agents and brokers need appropriate licenses. Taking regular continuing education courses is also mandatory to keep these licenses.
• Data Protection: Strict laws govern client data privacy. Plans must include measures to keep personal information secure.

The right business plan outlines steps for ongoing legal education, monitoring changes in legislation, and ensuring all staff are up-to-date with compliance requirements.

Maintaining Ethical Standards In Practice

Being ethical is as crucial as being lawful. An ethical insurance agency earns trust and respects from clients. Ethical standards guide decisions and interactions with clients, creating a culture of honesty and integrity.

• Honesty: Misrepresentations and false promises have no place in a reputable agency.
• Confidentiality: Client information is to be kept confidential and shared only with consent.
• Professionalism: Each client interaction should reflect the highest degree of professionalism.

Ethical codes of conduct and regular training programs should be central to an agency’s business plan, ensuring that all team members understand and commit to ethical standards.

Risk Management And Contingency Planning

Embarking on the creation of an insurance agency business plan demands a sound strategy. Risk Management and Contingency Planning are crucial pillars. They ensure the agency thrives amidst unexpected events. In the insurance industry, preparing for the unknown isn’t just recommended; it’s essential.

Identifying Potential Risks

Successful agencies understand risks before they become problems. Identifying potential risks involves:

• Market analysis: Studying trends helps foresee challenges.
• Compliance checks: Keeping up with laws avoids penalties.
• Operational reviews: Evaluating internal processes identifies weaknesses.
• Financial assessments: Regular audits highlight financial threats.

Agencies should list all identified risks. This helps prioritize them. They must consider likelihood and impact. A table can simplify this process:

Add more rows as needed

Developing A Contingency Plan

Once risks are known, agencies must plan. A solid contingency plan includes:

• Setting up emergency funds to cushion financial shocks.
• Creating response strategies for likely risks.
• Establishing communication protocols to keep everyone informed.
• Conducting regular drills to ensure readiness.

Agencies should document their plans clearly. This ensures quick action when needed. The plan must be reviewed regularly. Teams need training to execute these plans effectively.

Measuring Success And Performance Metrics

Thriving in the competitive world of insurance requires a clear measure of success. For insurance agencies, gauging performance goes beyond just profit margins. It encompasses a variety of metrics that indicate health, growth, and operational efficiency. By identifying and tracking these metrics, agencies can pinpoint areas of strength and address challenges proactively. Let’s dive into the key performance indicators and how ongoing review and adaptation of a business plan are essential for sustained success.

Key performance indicators for insurance agencies

Key Performance Indicators For Insurance Agencies

Key performance indicators (KPIs) are vital signposts on the road to achieving business objectives. They help agencies monitor progress and make informed decisions. Effective KPIs should align with the agency’s specific goals, be easy to measure, and provide insights on performance. Below are critical KPIs for insurance agencies:

• Customer Acquisition Cost (CAC) : Money spent to gain a new client.
• Customer Retention Rate: Percentage of clients who stay with your agency.
• Policy Renewal Rate: Clients who renew policies are a mark of satisfaction.
• Claim Ratio: Claims made against policies sold impact profitability.
• Average Revenue per Customer: Higher revenue per client signals potential growth.
• Operational Efficiency Ratios: These ratios show how well the agency uses resources.

Ongoing review and adaptation of business plan

Ongoing Review And Adaptation Of Business Plan

A static business plan is a surefire route to stagnation. The insurance market evolves, and so must your strategies. Herein lies the significance of the iterative process where the business plan is not a one-off, but a living document. Regular reviews allow for timely adaptation, keeping your agency agile and responsive to change.

• Analyze results against KPIs systematically.
• Assemble feedback from clients and staff for insights.
• Adjust marketing strategies to align with performance data.
• Develop new products or services based on identified opportunities.
• Revisit financial projections and refine budget allocations.

Consistent evaluation and updates to the business plan reinforce its relevance and effectiveness. Crucial to this is an environment that encourages regular feedback and open communication, fostering a culture of continuous improvement.

Wrapping Up And Next Steps

As we fasten the last buckle on our journey of creating an insurance agency business plan, it’s vital to ensure no stone is left unturned. Think of this phase as your launch pad – every item checked off brings you closer to liftoff. Let’s walk through the final necessities and then transition smoothly into ongoing growth and success.

Final Checklist For Launching Your Plan

• Legal structure and permits: Confirm your agency’s legal framework is in place and all permits are secured.
• Marketing strategy: Finalize your brand message and marketing assets.
• Operational systems: Ensure your CRM and policy management are fully operational.
• Financial projections: Review your balance sheet, profit/loss statement, and cash flow forecast.
• Training procedures: Have a complete training guide ready for your team.
• Secure partnerships: Confirm agreements with insurance providers are set.
• Launch event: Plan a kickoff event to network and announce your agency.

Long-term Vision And Setting Future Goals

To keep the momentum, envisioning the future of your agency is crucial. A far-sighted approach ensures you don’t just meet targets, but exceed them. Here’s how to keep your gaze fixed on the horizon:

• Continuous learning: Stay updated with industry trends and upskill accordingly.
• Client feedback: Regularly gather input to refine services and enhance satisfaction.
• Team growth: Invest in your team’s professional development to build a powerhouse.
• Expansion planning: Keep an eye out for new markets or product lines to explore.
• Financial health: Regularly review financials to ensure profitability and sustainability.

Set measurable goals with clear timeframes. Review and adjust these goals annually. This allows for flexibility and innovation, keeping your agency ahead of the curve.

Frequently Asked Questions

What is an insurance agency business plan.

An insurance agency business plan is a strategic roadmap. It outlines the agency’s goals and the tactics to achieve them. It includes market analysis, marketing strategies, and financial projections.

Why Do Insurance Agencies Need A Business Plan?

Business plans guide insurance agencies to success. They foster strategic thinking, identify goals, and track performance. They’re crucial for securing financing and partnerships.

Key Components Of An Insurance Business Plan?

Essential components include executive summary, company description, market analysis, organization structure, services offered, marketing and sales strategy, and financial projections.

How Often To Revise An Insurance Agency Plan?

Insurance agency business plans should be reviewed annually. Market changes and business growth necessitate plan updates to stay current and focused.

Crafting a solid business plan is the cornerstone of any thriving insurance agency. It steers your enterprise towards success and fosters sustainable growth. By implementing the strategies discussed, your agency can navigate the competitive landscape with confidence. Remember, a clear plan is your roadmap to success—start charting your course today.

Insurance Agency Financial Model Excel Template

Shop Insurance Agency Financial Plan. Fortunately, you can solve Cash Flow shortfalls with a bit of effort. Generates 5-year insurance agency ex... read more

•   Excel - Multi-User  –  $129.00
•   Excel - Single-User  –  $99.00
•   Free Demo  –  $0.00

Insurance Pricing Model

Ever wondered how much you need to charge in order to offer insurance on a given product or service? You will know how much after using this tool.

•   Full Model  –  $45.00 Version 1

Insurance Broker Financial Projection 3 Statement Model

3 statement 5 year rolling financial projection Excel model for a insurance broker business

•   Full Excel  –  $65.00
•   Free PDF  –  $0.00

Insurance Managing General Agent (MGA) Financial Projection 3 Statement Model

Insurance Managing General Agent (MGA) 3 statement 5 year rolling financial projection Excel model

•   Excel Models  –  $89.00 Version 3
•   PDF Example  –  $0.00 Version 1

Legal Services Financial Model Excel Template

Buy Legal Services Financial Plan. Based on years of experience at an affordable price. Generates 5-year legal services cashflow projection, sta... read more

General Insurance Company Financial Projection 3 Statement Model

User-friendly Excel model for the preparation a of 5-year rolling 3 statement financial projection with a monthly timeline for a startup or existing g... read more

•   Full Excel Model - Populated  –  $229.00 Version 4
•   Full Excel Model - Unpopulated  –  $229.00 Version 4
•   PDF Demo Version  –  $0.00 Version 4

Commercial Bank Valuation Model

This Commercial Banking Valuation Model values any bank of your choice using a wide range of industry valuation methods, including Discount Dividend M... read more

•   Full Excel Model  –  $39.95
•   Free Demo PDF  –  $0.00

Insurance Company Financial Model – Dynamic 10 Year Forecast

Financial Model providing a dynamic up to 10-year financial forecast for an Insurance Company.

•   Financial Model - Standard Version  –  $89.00
•   Financial Model - Premium Version  –  $109.00
•   PDF Free Demo  –  $0.00

IFRS 17 GMM Insurance Financial Projection Model

IFRS 17 General Measurement Model (GMM) Insurance 5 year quarterly excel financial projection model for 10 insurance portfolios / groupings each with ... read more

•   PDF Example  –  $0.00 Version 2
•   Excel Models  –  $179.00 Version 3

Insurance Company Financial Model – 5YR DCF & Valuation

The insurance financial model is a comprehensive tool designed to analyze the financial aspects of an insurance company. It incorporates key component... read more

•   Free PDF  –  $0.00 Version 1
•   Excel Model  –  $220.00 Version 1

Insurance Technical Analysis Model

Financial model to compute the underwriting result / operating result across counterparties (intermediaries, insurers and reinsurers) for an insurance... read more

•   Excel Model - Populated  –  $89.00 Version 1
•   Excel Model - Not Populated  –  $89.00 Version 1

Leave a Reply Cancel reply

You must be logged in to post a comment.

• Sample Business Plans
• Finance & Investing

Insurance Agent Business Plan

If you have an aptitude for convincing people and can identify what insurance works for different customers, then an insurance agency business might work for you.

An insurance agency is not only profitable, but also requires lesser skills to get started. But at the same time, it attracts a lot of competition. Moreover, it is also a work that involves a lot of responsibility for managing insurance portfolios properly.

You can do all of the above and more smoothly, with the help of an insurance agent business plan .

If you are planning to be an insurance agent, the first thing you will need is a business plan. Use our sample insurance agent business plan created using Upmetrics business plan software to start writing your business plan in no time.

Before you start writing your business plan , spend as much time as you can reading through some samples of insurance & finance-related business .

Industry Overview

The insurance industry stood at a massive value of 1.28 trillion dollars in 2020 and isn’t about to slow down any time soon.

Life and home insurance make up the majority of the market share. The growth of the industry can be attributed to the increase in buying houses and getting the same insured.

Say goodbye to boring templates

Build your business plan faster and easier with AI

Plans starting from $7/month

Things to Consider Before Writing an Insurance Agent business plan

Choose your legal structure.

Different legal structures come with different pros and cons. Also, each legal structure solves different purposes for a business. From the taxes, you’ll pay to the liability on your assets, the legal structure of your business decides everything.

Hence, you should go through all of your options and pick the one that fits your business needs the best.

Build brand identity and image

Having a brand identity that makes you memorable to your customers is important. Constant marketing and branding efforts can help you achieve that.

Moreover, your brand image should give your customers a sense of reliability. It is of utmost importance to your business.

Get your licenses and permits

Figuring out what licenses and permits you need as per the laws of your country and state is very important before getting started in the insurance industry.

But at the same time, keeping track of all the legal requirements can be difficult. Hence, it is a good practice to have a checklist at hand before you get started.

Look into your funding requirements

The cost of setting up an insurance company depends upon the location and size of your business. Hence, look into what would be your financial requirements to set up your firm and if you’ll need any funds or not.

There are several funding options like angel investors, bank loans, etc. You can pick the option that works best for you.

Chalking out Your Business Plan

Reading sample business plans will give you a good idea of your aim. It will also show you the different sections that different entrepreneurs include and the language they use to write about themselves and their business plans.

We have created this sample insurance agent business plan for you to get a good idea about how a perfect insurance agent business plan should look like and what details you will need to include in your stunning business plan.

Insurance Agent Business Plan Outline

This is the standard insurance agent business plan outline which will cover all important sections that you should include in your business plan.

• Keys to Success
• 3 Year profit forecast
• Startup Cost
• Funding Required
• Company Ownership
• Competition and Buying Patterns
• Market Analysis
• Target Market Segment Strategy
• Competitive Edge
• Marketing Strategy
• Sales Forecast
• Sales Yearly
• Personnel Plan
• Startup Funding
• Important Assumptions
• Brake-even Analysis
• Profit Yearly
• Gross Margin Yearly
• Projected Cash Flow
• Projected Balance Sheet
• Business Ratios

After getting started with Upmetrics , you can copy this sample insurance agent business plan into your business plan and modify the required information and download your insurance agent business plan pdf or doc file.

It’s the fastest and easiest way to start writing your business plan.

The Quickest Way to turn a Business Idea into a Business Plan

Fill-in-the-blanks and automatic financials make it easy.

Download a sample insurance agent business plan

Need help writing your business plan from scratch? Here you go;  download our free insurance agent business plan pdf  to start.

It’s a modern business plan template specifically designed for your insurance agent business. Use the example business plan as a guide for writing your own.

Related Posts

Holding Company Business Plan

Investment Company Business Plan

How to Write Competitive Analysis for Business Plan

Important Elements of Business Plan

About the Author

Upmetrics Team

Upmetrics is the #1 business planning software that helps entrepreneurs and business owners create investment-ready business plans using AI. We regularly share business planning insights on our blog. Check out the Upmetrics blog for such interesting reads. Read more

Plan your business in the shortest time possible

No Risk – Cancel at Any Time – 15 Day Money Back Guarantee

Create a great Business Plan with great price.

• 400+ Business plan templates & examples
• AI Assistance & step by step guidance
• 4.8 Star rating on Trustpilot

Streamline your business planning process with Upmetrics .

Free Download

Insurance Agency Business Plan Template

Download this free insurance agency business plan template, with pre-filled examples, to create your own plan..

Or plan with professional support in LivePlan. Save 50% today

Available formats:

What you get with this template

A complete business plan.

Text and financials are already filled out and ready for you to update.

• SBA-lender approved format

Your plan is formatted the way lenders and investors expect.

Edit to your needs

Download as a Word document and edit your business plan right away.

• Detailed instructions

Features clear and simple instructions from expert business plan writers.

All 100% free. We're here to help you succeed in business, no strings attached.

Get the most out of your business plan example

Follow these tips to quickly develop a working business plan from this sample.

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.

2. Remember it's just an example

Our sample business plans are examples of what one business owner did. That doesn't make them perfect or require you to cram your business idea to fit the plan structure.

Use the information, financials, and formatting for inspiration. It will speed up and guide the plan writing process.

3. Know why you're writing a business plan

To create a plan that fits your needs , you need to know what you intend to do with it.

Are you planning to use your plan to apply for a loan or pitch to investors? Then it's worth following the format from your chosen sample plan to ensure you cover all necessary information.

But, if you don't plan to share your plan with anyone outside of your business—you likely don't need everything.

More business planning resources

Simple Business Plan Outline

Industry Business Planning Guides

Business Plan Template

How to Start a Business With No Money

How to Write a Business Plan for Investors

How to Create a Business Plan Presentation

10 Qualities of a Good Business Plan

How to Write a Business Plan

Download your template now

Need to validate your idea, secure funding, or grow your business this template is for you..

• Fill-in-the-blank simplicity
• Expert tips & tricks

We care about your privacy. See our privacy policy .

Not ready to download right now? We'll email you the link so you can download it whenever you're ready.

Download as Docx

Download as PDF

Finish your business plan with confidence

Step-by-step guidance and world-class support from the #1 business planning software

From template to plan in 30 minutes

• Step-by-step guidance
• Crystal clear financials
• Expert advice at your fingertips
• Funding & lender ready formats
• PLUS all the tools to manage & grow

The quickest way to turn a business idea into a business plan

Fill-in-the-blanks and automatic financials make it easy.

No thanks, I prefer writing 40-page documents.

Discover the world’s #1 plan building software

• Real Estate

Home » Business » The Insurance Agency Business Plan Template: Unlocking Your Potential

The Insurance Agency Business Plan Template: Unlocking Your Potential

To achieve success in the insurance agency industry, use an insurance agency business plan template. This tool outlines the vision for your company and helps you improve your strategy and raise funding.

Table of Contents

What is an insurance agency business plan?

An insurance agency business plan is a formal document that outlines your business growth strategies and includes a comprehensive evaluation of the insurance market. This business plan enhances the necessary funding for your insurance agency venture by indicating your in-depth understanding of the insurance industry.

Furthermore, investors, banks, or financial institutions require this business plan when you seek financial support from them. It also convinces them that you will become a successful venture.

How to create an effective insurance agency business plan?

Let us discuss step-by-step how to create an effective business plan;

Determine your business’s vision and mission

Determining your business’s vision and mission statements is the first step that you need to take while creating this type of document. The reason behind this is that you will use them as a basis for the strategies you create for your business. In addition, it serves as a reminder for you and your employer how important it is to fulfill your responsibilities.

First, think about your business’s mission statement i.e. what your business wants to do. The main objective is to provide protection to your customers which is equivalent to the price they paid. Your business type of protection depends on the type of insurance your business offers.

After that, write your vision statement by considering what kind of success you want to achieve in a few years. This statement will give you something to work towards and to look forward to.

The kind of insurance your business will provide

Think about what kind of insurance your business will provide before starting to open up your own business. Your business can specialize in different types of insurance such as;

• Home-based businesses
• Product liability insurance
• Vehicle insurance
• Business interruption insurance
• Professional liability insurance
• Property insurance
• Worker’s compensation insurance

After figuring out what kind of insurance you will provide, write it into your business plan.

How much it will take to start your insurance business

In this section of the insurance agency business plan, you need to specify how much it will take to start up and run your own insurance business. Your potential investors also want to know this information to determine whether your business is a good investment or just an unnecessary expense.

For the first few months of operations, think about the costs. Next, you need to figure out how much it will take to register your business. Then, consider the tools, equipment, and resources that your business needs to ensure it can function. After creating a list of all the items, pointing out the amount of each expense is the next thing that you have to do. It is important to determine exactly how much each item on the list will cost.

Details about how your customers will avail of the insurance

Your customers want to know the details about availing of the insurance and payment. This section tells them how to avail the insurance and how they are going to pay for it. Here, you should describe the complete procedure that your customers have to follow. You should state the agreements that they have to sign to ensure that they have managed to get the insurance.

Another important thing to include here is the method of payment. The common method that every insurance company follows is deducting the funds from their customer’s bank account every month when the payment is due. Additionally, you should also specify clearly how much they will be required to pay.

Share your marketing strategies

Use this section to share with your investors and stakeholders how you’re supposed to market your insurance business. They want to learn about it because this will tell them whether you are marketing your business in a way that will lead your business to success.

In this section of the business plan, you need to point out the strategies that you are going to use and the promotional content that you need. Also, you need to know where you should focus on your strategies towards as you are coming up with them.

Next, consider what kind of promotional material you need. While explaining this, you need to point out the type of insurance, how much will be paid, and the payment method. Along with these details, you should also specify where customers can avail of the insurance.

Write the executive summary

Writing the executive summary is the last step that you need to do. This section is typically created for readers who just want to get an idea of the plan. Your executive summary should contain all important details and everything about your plan.

Free Insurance Agency Business Plan Template

Introduction to business planning for microinsurance, sample business plan for insurance agency template, independent insurance agency business plan template, captive insurance company business plan template.

There are 7 main sections of a business plan; 1- Executive summary 2- Company description 3- Products and services 4- Market analysis 5- Strategy and implementation 6- Organization and Management Team 7- Financial plan and projections

An insurance business plan highlights the business strategies, goals, and plans for achieving them. It also specifies the company’s financial projections, market research, and mission statement.

You May also Like

Sharing is caring!

I am Ryan Duffy and legal writer. I received a bachelor of business administration (BBA) degree from London Business School. I have 8+ years of writing experience in the different template fields and working with ExcelTMP.com for 7 years. I work with a team of writers and business and legal professionals to provide you with the best templates.

• Start   An Agency
• Grow   An Agency
• Exit   An Agency

• Profit Sharing
• 5 Layers of Income
• Carrier Partners
• Success Stories

Membership Benefits

• Changing Your Mindset
• Creating a Business Plan & Getting a Loan
• Carriers, Partnerships & Profit Sharing
• Hiring Employees
• Become an Uncaptive Agent
• How to Increase Agency Profits
• Strategies in a Hard Market
• Sales & Marketing for Agencies
• Producers & Service Centers
• Buying Another Agency
• Insurance Agency Succession
• Determining Your Agency's Value
• The Value of Your brand
• Leaving a Legacy

Start an Insurance Agency

• Becoming and Uncaptive Agent

Grow an Insurance Agency

Exit an insurance agency.

• Recommendations
• Income Calculator
• In the News

April 20, 2020

How to create a business plan for your insurance agency, 12 min read.

Topic: Insurance Marketing Insurance Agency Management sales Start an Agency Grow an Agency

“What’s the plan?”

That’s the question my wife and I ask each other every day about 3:00 in the afternoon. We have pretty busy lives with multiple businesses, children, hobbies, and activities to manage. So, probably just like you, we need a plan to get it all done!

If a plan is important for getting a family through the day, how much more important is a plan for an insurance agency with customers to serve, sales to make, companies to satisfy, and employees to manage?

It’s critical.

But who has time to plan with all that going on?

That’s a great and valid question. The other one for the typical Type A insurance business owner is, “Can I get someone else to do it for me?” and, “What’s the minimum planning that will yield the most impact?” 

Assuming you have goals to meet and would like every day to be something other than crisis management, let’s take a look at this from a high level. 

Getting Started With Your Business Plan

Creating a business plan sounds like work, doesn’t it? It doesn’t have to be. Really, this process is as simple as putting on paper your three-to-five-year goals and general means to achieve them. 

For example, this is a super-simple plan template:

What are sales going to be each year for 3 years?

Net profits? What do you want your balance sheet to look like? 

What is your ideal business mix? What products and services do you want to sell the most of?

What kind of customers do you want to serve? What do they look like demographically (i.e. target market)?

How many employees does it take to get this done? 

A plan can be a whole lot more complicated, and potentially more valuable, but if you have lots to do, this takes a couple of minutes and it’s a great start.

Consider This Question To Help You Focus:

During lunch with a successful entrepreneur in a business completely unrelated to mine, he asked me this wonderful and powerful question during our meal.

“What are the best opportunities in front of you right now?”

That question really focuses the mind.

I was able to give him an immediate answer and listed for him four priorities for myself and my team. We have more than four opportunities in front of us, so I was interested in my own immediate reaction. You see, like most entrepreneurs and small business owners, I am constantly seeing opportunities and weighing my capabilities and interests.

I answered my friend with four things and a quick note as to why they were important and valuable for our business. It didn’t take a lengthy market analysis or sales forecasting - the question really helped me to focus, prioritize, and verbalize what I want to capitalize on out of many choices. It happened in an instant and will now guide us as we plan for the next year or two - this is the simplest version of an executive summary and it will guide our sales strategy.

Most successful business owners are highly focused people, who don’t pursue every single business idea that runs through their heads. They understand that resources like time, capital, and people are limited. Regardless of their relative level of optimism (an absolute requirement and one of the main keys to success opportunities, but the more successful they become, the more realistic actual opportunities are for them.

So, as they go about building a bigger and bigger future, choosing which opportunities to pursue every year of operation becomes an ever more important task.

As we face the future and the demands of many others who want us to focus on their priorities (opportunities!), choosing which things we will concentrate our efforts on becomes a critical decision for every insurance agent and businessperson.

What about you? What are the best opportunities in front of you right now? Those are the ones to focus your planning.

Let’s Do Some Thinking

Everyone, and every business, is different. I start planning for the next year in the fourth quarter of the year before. Your timing may be different than mine. But you do set aside time to think about the business and plan for the coming year, don’t you? Or do you just let it happen?

This is a great time to be honest with ourselves about this! Let me suggest that if you don’t do annual thinking that you consider it. It’s not hard. It doesn’t have to take a long time but is really important in sustaining growth .

Here are some of the things I think about.

What can we accomplish?

What is a revenue goal that is achievable within our current capabilities? As I think about this I ponder the knowns about what the market is doing and which insurance products are more likely to sell.

Are rates up or down? Has the weather this year been good or bad?

What can we expect from Profit Sharing and PMSF (you do get PMSF, don’t you?)

What kind of activity and results are our current marketing efforts producing? How is our market share?

What is going to happen to overhead next year? 

Do we have rent increases, automation increases, or other overhead cost increases coming?

What about employee benefits and payroll?

Do we need additional employees to manage the expected normal growth?

Do we have a place for them to work? Equipment to use?

When do we need them?

Now comes the fun part! 

What could we do if we really stretched ourselves? 

If we are to do that, what else must we do?

Do we need to increase marketing investment?

Are there any potential investors we should talk to?

Hire additional people? Modify compensation strategies?

Open another office or expand this one?

Add a CRM program?

These and endless other things can and should be considered.

We can’t develop a plan for our business until we spend time thinking about it. Perhaps you do this ad hoc from time to time, but now is the time to organize your thinking and your thoughts and start putting things in written form, even if it’s just a few paragraphs. It’s time to think!

Now, Let’s Do Some Planning

I’ve described the thinking process that I use during the early fall to begin to get ready for a productive, growing period in the coming year. The results of the current year are beginning to take shape and the business environment is more clearly understood. After the thinking process comes planning.

Relax! This doesn’t have to be, nor should it be, complicated or time-consuming for a growing agency. Let me encourage you to make a plan that can be put on one sheet of paper. Two at the most. 

If you can’t describe your plans for a year in that space you probably can’t do it all either.

How I Do It

What I do is take the things I’ve uncovered in my thinking process and first use them to create a simple budget:

I increase current year results by what I think is the “steady as she goes” growth and expected rate, profit sharing, PMSF and other revenue changes should produce and put that in a month by month spreadsheet.

Then I take the overhead thinking I’ve done and put that into the expense ledger. Now I’ve got a simple budget. Is the result of that budget what I want it to be based on my goal setting? Or not? If not, I begin to tweak.

Once the budget is all tweaked up I turn to the thinking about the growth goals I want. What does that do to income? What expense increases are required? Those go down on paper and I work on this until I’m satisfied.

This is still not planning! This is budgeting. Now comes the plan:

• What will be required to get the results we are forecasting? (See the next section!)
• When and how will we market ?
• What changes to our website, social media , phone program, referral program, etc. do we need to make?
• Do we need more employees , insurance companies, cell phones, or other tools? When and where do we plan to acquire them?
• What else do we need to schedule to do to make the budget work out?

This is planning! See, it’s not hard. It’s really easy when you think about it first!

Now that you’ve done the thinking and planning, next year will be easy. And if you execute on the simple plan you’ve built, tweaking as you go, you’ll get wherever it is you want to go!

More Things to Consider for Your Business Plan

How much activity do you need to get the results you want.

The “Silver Bullet” to agency growth is activity. One of the natural questions is how much? How much activity will it take to get x results? Really, the question is what do I need to do? What do I need to plan for? 

Great questions!

To answer your questions I need a little more information. So, here are my questions to you:

What is your growth goal?

What is your average sale?

What is your closing ratio?

How do you get prospects?

Let’s assume I want to add $25,000 in commission revenue to my agency (growth goal). And let’s assume my average sale nets me $450 (note: this is commission, not premium). 

Let’s also assume I’m an average salesperson and my closing ratio is 35%. Lastly, let’s assume I get my prospects from a direct mail campaign and my response rate is 1.5% of pieces mailed. 

From these assumptions “how much” becomes very clear. 

• I need 56 sales! ($25,000 goal divided by $450 average sale).
• I need 160 prospects! (56 sales divided by 35%).
• I need to mail 10,650 mail pieces (160 prospects divided by 1.5%)

Don’t get hung up on whether you think direct mail is the best way to advertise, or whether you think my closing ratio is good or bad. That’s not the point. The point is, if you know some very basic numbers, you can figure out very easily how much activity you need to reach your goal!

Everyone has a different idea about the best way to sell insurance. We all have different goals, talents, resources, and abilities. But we can all achieve our goals with the appropriate amount of activity. 

Success is simple. Figure out “how much”. Then go do it!

Pay the Business First

One of our Agency Development team recently met with one of our agencies to work with them on business planning. This is a great thing, because without a plan it is virtually impossible to grow rapidly. This particular agent is my favorite kind of person: a dreamer with big dreams! They are ambitious, hard-working, and highly motivated

In their discussions, the agent and our Development Specialist talked about the agent's desire to hire producers and to build their own office building. Both are potentially great ideas. However, there is a small problem: money.

Our agent owner didn't have any…

When we start our businesses, we entrepreneurs usually need every nickel we can find, right? Every dollar that isn't nailed down often finds its way into gasoline, rent, or shoes for the kids. This is normal. But as the business begins to prosper there is a choice to be made: buy nicer stuff, or feed the business.

We often see agencies with little or no working capital, and without working capital, you simply can't expand, because you can't fund a producer. What bank is going to lend you money on a building when you haven't got any? None. Those days are gone forever.

My partner and I started our agency in 1996, and we didn't take a profit out of the business - not even to pay taxes - until 2003! We were reinvesting all our money in the business.

This is what you must do if you want to keep growing. That doesn't mean you can't take money to improve your family's situation - you can. Do that by increasing your salary over time.

But if you want to keep growing, give the business a raise before you give yourself one. 

Our method was to decide each year what the business was going to make in net profits. Until that number was satisfied we didn't get paid and we didn't get a raise either. This method allowed the business to have the money - its lifeblood! - that it needed to keep expanding.

Look around at the successful people you know. The businesses you admire. Very few of them got where they are except by following this little principle:

Pay The Business First!

Make sure your hours match your business plan .

The world is changing. Technology is taking customers away from us. The new world demands a higher level of service and availability from anyone who wants to sell anything.

If, as an independent agent, personal service is the competitive advantage that will help you reach your goals, why aren’t you open more?

I was at the office on a Saturday morning, and I received a nice note from one of our new members about one of our great team members (thanks Natalie!). I fired off a quick “thank you” to the member and said, “Glad to see another entrepreneur working on a Saturday!”

What was interesting was his response, which I quote verbatim:

“Yep. Many can only come in on Saturday. Plus set up apt to sign two Travelers app issued via Access Plus. And doing an auto and home app for Safeco.”

Why was he working on a Saturday?

Because that was the only time prospects and customers can come to see him.

It seems obvious that anyone trying to sell anything would go where the customers are when they are there.

So, why are almost all insurance agencies only open Monday through Friday from 8:00 am to 5:00 pm? By now, even banks have figured out for a couple of decades now that they need to be open past 5 o’clock and be open on Saturday. 

Mom and Pop businesses all across America have wrung their hands while they went bankrupt when Walmart came to town. They complained they couldn’t compete on price.

I think it’s much more than that. They refused to compete on service. They weren’t there when the customer needed them.

When will insurance agencies get the message? Before for or after bankruptcy?

Build Your Business Plan for the Long Term

“you must prepare for the future if you want one.”.

Plant acorns.

Tyler Asher, President of Safeco Insurance Company, made this headline statement in a speech to an SIAA semi-annual meeting in Boston. His comment was made in the context of a list of things his company is working on to sustain their growth and prepare for a future insurance market, much different from today’s.

If you just take the statement at face value it makes a lot of sense, doesn’t it? Of course, we must all prepare for a bigger future if we want one, and oak is a great symbol of strength and stability. I was immediately captivated by the idea.

But, where the analogy breaks down for me is that it takes a long time to grow oak trees, and the future is coming upon us with breathtaking speed. Do we really have time to grow oak trees?

Then I thought again about a Jeff Bezos quote I wrote about where he says he is more concerned about what stays the same in the next 10 years than about what changes. 

I’ve decided that it’s the intersection of Asher and Bezos where we, as independent agency owners, need to focus.

For example, it’s estimated that 60% of the employees in our industry will retire in the next seven years, and if you believe “Outliers” author, Malcolm Gladwell, it takes at least five years (10,000 hours) to train an expert in anything. 

I believe, channeling Bezos, that customer service and person-to-person selling will be as important to agency success in the future as it is now. So, how are we going to replace the oak trees (people) in our industry fast enough to secure our future?

I don’t have an answer. But, it’s an incredibly important question for anyone who plans to continue to make this industry their career in the decade ahead.

In our organization, we are creating a streamlined training curriculum, coupled with third party courses and old fashioned apprenticeship, to meet our needs for new blood. Frankly, it’s expensive to do this. But the only other options are to hire other’s problems (which is getting harder and more expensive to do) or go out of business.

The need to invest in new people comes while commission compression and new competition (in the form of online sellers) are beginning to stress some agency income statements. As Tyler Asher points out, you must prepare for the future if you want one. 

Viewed in this way, spending on new employees is an investment, not a cost, and the promise of the future is a profitable business built for the long term.

Tony Caldwell

Tony Caldwell is a modern “renaissance man,” who is not only immensely successful in the field of insurance, but is also a writer, children’s advocate, mentor and even a licensed pilot. Always keen on helping others make their dreams come true, Tony and his team have helped independent agents grow into more than 250 independent agencies. This has made OAA the number one ranked Strategic Master Agency of SIAA for the last 5 years, and one of Oklahoma's 25 Best Companies to Work for. Tony loves to share his knowledge, insight and wisdom through his bestselling books as well as in free mediums including podcasts and blogs. Tony and his family are members of Crossings Community Church, and he is very active in community initiatives: he’s chairman of It’s My Community Initiative, Inc., a nonprofit working with disadvantaged people in Oklahoma City; and chairman of the Oklahoma Board of Juvenile Affairs., and he has served through many other organizations including the Salvation Army, Last Frontier Council of the Boy Scouts of America, and the Rotary Club. In his spare time, Tony enjoys time with his family. He’s also an active outdoorsman and instrument-rated commercial pilot.

Recent Posts

Insurance Marketing

Recently, I posted that the Silver Bullet to agency growth is activity. One of the natural...

Benefits of Benchmarking - From an Agency ...

By Tony Caldwell, Chairman and CEO

How to Create an Insurance Agency Business Plan

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.

As a leading Insurance Marketing Organization (IMO), Good Life Insurance Associates (GLIA) provides a full range of insurance products, services and tools to support your individual clients’ wants and needs. Learn More

1. Write an Executive Summary

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.

2. Describe Your Company

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.

3. Outline Your Products

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.

4. Communicate Your Strategy for Sales and Marketing

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.

5. Detail Your Financials

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.

Start Your Own Insurance Agency Today

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!

Contact us today to learn more about our products and services.

844-500-GLIA

[email protected]

Insurance Products

• Life Insurance
• Long-Term Care
• Property & Casualty

How We Help

• Agent Portal & Technology
• Back Office Support
• Business Development Support
• Case Design
• Case Management
• Marketing Services
• Sales Support
• Tech Support

Our Culture

• Mission & Vision
• The History
• The Leadership
• Join Our Team

Copyright © 2024 GLIA

Forgot your password?

New to GLIA? Join Here

Insurance Agency Business Plan Template

Unlock the potential of your insurance agency with our comprehensive Insurance Agency Business Plan template. Whether you're starting a new agency or looking to enhance your existing one, this free template provides the tools and guidance you need to develop a compelling and strategic plan. From market analysis to financial projections, our template equips you with the essential components for success in the insurance industry. Download now and embark on a journey to insurance agency excellence!

Download the template today!

In today's world, insurance plays a crucial role in providing individuals and businesses with financial security and peace of mind. As an insurance agency, it's essential to have a clear plan in place to navigate the competitive landscape and effectively serve your clients. That's why we're thrilled to offer our free Insurance Agency Business Plan template, designed to streamline and enhance your business planning process.

Features of the Insurance Agency Business Plan Template

Our Insurance Agency Business Plan template includes key features to help you build a solid plan:

• Market Analysis - Understand the insurance market, identify target segments, and analyze industry trends to position your agency strategically. Our template provides a structured approach to conducting market analysis specific to the insurance industry.
• Service Offerings - Define your insurance products and specialties to differentiate your agency and attract the right clients. Our template offers guidance on identifying your service offerings, showcasing your expertise, and tailoring solutions to meet client needs.
• Financial Projections - Estimate your revenue streams, expenses, and profitability with our comprehensive financial projections section. This helps you make informed decisions, set realistic goals, and ensure the financial sustainability of your insurance agency.
• Marketing Strategy - Develop an effective marketing plan that reaches your target audience, builds brand awareness, and generates leads. Our template assists you in creating a comprehensive marketing strategy, including online marketing, networking, partnerships, and referral programs.

Benefits of Using Our Template

Utilizing our Insurance Agency Business Plan template provides several advantages:

• Provides a Professional Structure : Our template provides a professional structure for your business plan, ensuring that all essential components are covered. It helps you organize your ideas, goals, and strategies in a clear and concise manner, making your plan more impactful and professional.
• Guides Decision Making : A well-crafted business plan acts as a guide for decision-making in your insurance agency. It helps you make informed choices about target markets, service offerings, pricing, and marketing strategies. With our template, you can effectively analyze different scenarios and make strategic decisions that align with your agency's goals.
• Demonstrates Financial Viability: The financial projections section of our template helps you estimate your agency's revenue streams, expenses, and profitability. This information is crucial for understanding the financial viability of your business and setting realistic goals. It also serves as a valuable tool for attracting investors or securing financing.
• Attracts Stakeholders: A comprehensive and well-presented business plan instills confidence in potential stakeholders, such as clients, partners, and investors. It showcases your agency's professionalism, expertise, and commitment to providing excellent service. With our template, you can create a compelling narrative that attracts and engages stakeholders.

Insurance Agency Business Plan  Frequently Asked Questions

Q: why do i need an insurance agency business plan.

A: An insurance agency business plan is crucial for outlining your agency's goals, strategies, and financial projections. It serves as a roadmap for your agency's success, helping you stay focused and make informed decisions. Additionally, a well-crafted business plan is often required by lenders, investors, and partners to assess the viability of your agency and its potential for growth.

Q: How can an insurance agency business plan help attract clients?

A: A well-crafted business plan demonstrates your agency's expertise, unique value proposition, and commitment to providing exceptional service. It outlines your target market, identifies their insurance needs, and showcases how your agency can meet those needs effectively. Sharing your business plan with potential clients helps build trust and confidence in your agency's capabilities, increasing the likelihood of attracting and retaining clients.

Q: How can an Insurance Agency Business Plan help secure funding?

A: By developing a comprehensive Insurance Agency Business Plan, you can significantly enhance your chances of securing funding for your venture. The business plan serves as a roadmap, showcasing your understanding of the insurance industry, your proposed business model, and your strategies for profitability. It provides potential investors or lenders with the necessary information to evaluate the viability and potential return on investment of your insurance agency. Additionally, to simplify the process, consider utilizing a Financial Projection Template that can help you create accurate and professional financial forecasts.

We Know a Good Business Plan When we See One

Collectively, our team has reviewed thousands of business plans and has nearly 20 years of experience making SBA loans. We've also helped more than 50,000 businesses create financial projections across many industries and geographies.

Adam served as Executive Director for a SBA microlender in Indiana for over 10 years helping businesses and reviewing thousands of business plans.

Grace has built hundreds of custom financial models for businesses as well as our projection templates which are used by thousands of businesses every year.

Kyle served as an SBA loan officer for 7 years working directly with startups and business owners to review their business plans, projections, and prepare their loan package.

Lorem ipsum dolor sit amet, consectetur adipiscing elit.

Business Plan Template for Insurance Agents

• Great for beginners
• Ready-to-use, fully customizable Subcategory
• Get started in seconds

Running a successful insurance agency requires careful planning and strategic decision-making. Whether you're a seasoned insurance agent or just starting out, having a solid business plan is essential for achieving your goals and staying ahead of the competition. That's where ClickUp's Business Plan Template for Insurance Agents comes in.

With this template, you can:

• Define your agency's mission, vision, and objectives to guide your day-to-day operations.
• Develop effective marketing strategies to attract and retain clients in a competitive market.
• Create a detailed financial plan, including revenue projections and expense management, to drive profitability.

Don't let the complexities of the insurance industry hold you back. Take advantage of ClickUp's Business Plan Template for Insurance Agents and set your agency up for lasting success. Get started today!

Business Plan Template for Insurance Agents Benefits

When insurance agents use the Business Plan Template, they can enjoy a range of benefits to help them succeed in the competitive insurance industry:

• Clearly define their business goals and strategies to stay focused and aligned with their vision
• Develop a comprehensive financial plan to attract investors and secure loans for business expansion
• Identify target markets and develop effective marketing strategies to reach potential clients
• Analyze industry trends and competition to stay ahead of the game and make informed business decisions
• Track and measure progress towards business goals to ensure continuous growth and success in the insurance industry.

Main Elements of Insurance Agents Business Plan Template

ClickUp's Business Plan Template for Insurance Agents is the perfect tool to help insurance agents or agencies outline their goals, strategies, and financial projections to grow their business in the competitive insurance industry. Here are the main elements of this template:

• Custom Statuses: Track the progress of your business plan with statuses such as Complete, In Progress, Needs Revision, and To Do, ensuring that every task is accounted for and easily managed.
• Custom Fields: Use custom fields like Reference, Approved, and Section to add important details and information to each task or section of your business plan, keeping everything organized and easily accessible.
• Custom Views: Access five different views, including Topics, Status, Timeline, Business Plan, and Getting Started Guide, to visualize your business plan in various ways, ensuring that you have a comprehensive and holistic view of your goals and strategies.

How To Use Business Plan Template for Insurance Agents

If you're an insurance agent looking to create a comprehensive business plan, you're in the right place. Follow these steps to effectively use the Business Plan Template for Insurance Agents in ClickUp:

1. Define your target market and goals

Start by identifying your target market. Who are your ideal clients? What types of insurance products do you specialize in? Understanding your target market will help you tailor your business plan to meet their specific needs.

Use the Goals feature in ClickUp to set measurable objectives for your business, such as acquiring a certain number of new clients or increasing revenue by a specific percentage.

2. Assess your competition

Research and analyze your competition to determine their strengths, weaknesses, and strategies. This information will help you identify opportunities and develop a competitive advantage in the insurance market.

Use the Table view in ClickUp to create a table with columns for each competitor, including information such as their target market, product offerings, and marketing tactics.

3. Develop your marketing and sales strategy

Outline your marketing and sales strategies to attract and retain clients. Determine the most effective channels to reach your target market and create a budget for your marketing efforts. Consider utilizing digital marketing techniques, networking events, and partnerships with other businesses.

Use the Board view in ClickUp to create different columns for each stage of your marketing and sales funnel, such as lead generation, prospecting, and closing deals.

4. Monitor and adjust your business plan

Regularly review your business plan and make adjustments as needed. Track your progress against your goals and make updates to your strategies based on market changes or new opportunities. Stay flexible and open to new ideas to ensure your business plan remains relevant and effective.

Use the Automations feature in ClickUp to set up reminders and notifications to review and update your business plan on a regular basis.

Get Started with ClickUp’s Business Plan Template for Insurance Agents

Insurance agents can use the Business Plan Template for Insurance Agents to create a comprehensive plan for their insurance agency's growth and success.

First, hit "Add Template" to sign up for ClickUp and add the template to your Workspace. Make sure you designate which Space or location in your Workspace you'd like this template applied.

Next, invite relevant members or guests to your Workspace to start collaborating.

Now you can take advantage of the full potential of this template to create a solid business plan:

• Use the Topics View to outline the different sections of your business plan, such as executive summary, market analysis, marketing strategies, financial projections, etc.
• The Status View will help you keep track of the progress of each section, with statuses like Complete, In Progress, Needs Revision, and To Do.
• Utilize the Timeline View to set deadlines and milestones for each section of your business plan, ensuring that you stay on track.
• The Business Plan View provides a comprehensive overview of your entire plan, allowing you to easily navigate and review each section.
• Use the Getting Started Guide View to access helpful resources and tips on how to effectively complete each section of your business plan.
• Customize the template by adding custom fields like Reference, Approved, and Section to provide additional context and organization to your business plan.
• Update statuses and custom fields as you work on each section, keeping your team and stakeholders informed of progress.
• Monitor and analyze your business plan to ensure that it aligns with your goals and objectives, and make any necessary revisions for maximum effectiveness.
• Business Plan Template for Business Owners
• Business Plan Template for Recruitment
• Business Plan Template for Vegetable Farming
• Business Plan Template for Photography Business
• Business Plan Template for Artists

Template details

Free forever with 100mb storage.

Free training & 24-hours support

Serious about security & privacy

Highest levels of uptime the last 12 months

• Product Roadmap
• Affiliate & Referrals
• On-Demand Demo
• Integrations
• Consultants
• Gantt Chart
• Native Time Tracking
• Automations
• Kanban Board
• vs Airtable
• vs Basecamp
• vs MS Project
• vs Smartsheet
• Software Team Hub
• PM Software Guide

How To Start A Business In 11 Steps (2024 Guide)

Updated: Apr 7, 2024, 1:44pm

Table of Contents

Before you begin: get in the right mindset, 1. determine your business concept, 2. research your competitors and market, 3. create your business plan, 4. choose your business structure, 5. register your business and get licenses, 6. get your finances in order, 7. fund your business, 8. apply for business insurance, 9. get the right business tools, 10. market your business, 11. scale your business, what are the best states to start a business, bottom line, frequently asked questions (faqs).

Starting a business is one of the most exciting and rewarding experiences you can have. But where do you begin? There are several ways to approach creating a business, along with many important considerations. To help take the guesswork out of the process and improve your chances of success, follow our comprehensive guide on how to start a business. We’ll walk you through each step of the process, from defining your business idea to registering, launching and growing your business.

Featured Partners

ZenBusiness

$0 + State Fees

Varies By State & Package

On ZenBusiness' Website

On LegalZoom's Website

Northwest Registered Agent

$39 + State Fees

On Northwest Registered Agent's Website

The public often hears about overnight successes because they make for a great headline. However, it’s rarely that simple—they don’t see the years of dreaming, building and positioning before a big public launch. For this reason, remember to focus on your business journey and don’t measure your success against someone else’s.

Consistency Is Key

New business owners tend to feed off their motivation initially but get frustrated when that motivation wanes. This is why it’s essential to create habits and follow routines that power you through when motivation goes away.

Take the Next Step

Some business owners dive in headfirst without looking and make things up as they go along. Then, there are business owners who stay stuck in analysis paralysis and never start. Perhaps you’re a mixture of the two—and that’s right where you need to be. The best way to accomplish any business or personal goal is to write out every possible step it takes to achieve the goal. Then, order those steps by what needs to happen first. Some steps may take minutes while others take a long time. The point is to always take the next step.

Most business advice tells you to monetize what you love, but it misses two other very important elements: it needs to be profitable and something you’re good at. For example, you may love music, but how viable is your business idea if you’re not a great singer or songwriter? Maybe you love making soap and want to open a soap shop in your small town that already has three close by—it won’t be easy to corner the market when you’re creating the same product as other nearby stores.

If you don’t have a firm idea of what your business will entail, ask yourself the following questions:

• What do you love to do?
• What do you hate to do?
• Can you think of something that would make those things easier?
• What are you good at?
• What do others come to you for advice about?
• If you were given ten minutes to give a five-minute speech on any topic, what would it be?
• What’s something you’ve always wanted to do, but lacked resources for?

These questions can lead you to an idea for your business. If you already have an idea, they might help you expand it. Once you have your idea, measure it against whether you’re good at it and if it’s profitable.

Your business idea also doesn’t have to be the next Scrub Daddy or Squatty Potty. Instead, you can take an existing product and improve upon it. You can also sell a digital product so there’s little overhead.

What Kind of Business Should You Start?

Before you choose the type of business to start, there are some key things to consider:

• What type of funding do you have?
• How much time do you have to invest in your business?
• Do you prefer to work from home or at an office or workshop?
• What interests and passions do you have?
• Can you sell information (such as a course), rather than a product?
• What skills or expertise do you have?
• How fast do you need to scale your business?
• What kind of support do you have to start your business?
• Are you partnering with someone else?
• Does the franchise model make more sense to you?

Consider Popular Business Ideas

Not sure what business to start? Consider one of these popular business ideas:

• Start a Franchise
• Start a Blog
• Start an Online Store
• Start a Dropshipping Business
• Start a Cleaning Business
• Start a Bookkeeping Business
• Start a Clothing Business
• Start a Landscaping Business
• Start a Consulting Business
• Start a Photography Business
• Start a Vending Machine Business

Most entrepreneurs spend more time on their products than they do getting to know the competition. If you ever apply for outside funding, the potential lender or partner wants to know: what sets you (or your business idea) apart? If market analysis indicates your product or service is saturated in your area, see if you can think of a different approach. Take housekeeping, for example—rather than general cleaning services, you might specialize in homes with pets or focus on garage cleanups.

Primary Research

The first stage of any competition study is primary research, which entails obtaining data directly from potential customers rather than basing your conclusions on past data. You can use questionnaires, surveys and interviews to learn what consumers want. Surveying friends and family isn’t recommended unless they’re your target market. People who say they’d buy something and people who do are very different. The last thing you want is to take so much stock in what they say, create the product and flop when you try to sell it because all of the people who said they’d buy it don’t because the product isn’t something they’d buy.

Secondary Research

Utilize existing sources of information, such as census data, to gather information when you do secondary research. The current data may be studied, compiled and analyzed in various ways that are appropriate for your needs but it may not be as detailed as primary research.

Conduct a SWOT Analysis

SWOT stands for strengths, weaknesses, opportunities and threats. Conducting a SWOT analysis allows you to look at the facts about how your product or idea might perform if taken to market, and it can also help you make decisions about the direction of your idea. Your business idea might have some weaknesses that you hadn’t considered or there may be some opportunities to improve on a competitor’s product.

Asking pertinent questions during a SWOT analysis can help you identify and address weaknesses before they tank your new business.

A business plan is a dynamic document that serves as a roadmap for establishing a new business. This document makes it simple for potential investors, financial institutions and company management to understand and absorb. Even if you intend to self-finance, a business plan can help you flesh out your idea and spot potential problems. When writing a well-rounded business plan, include the following sections:

• Executive summary: The executive summary should be the first item in the business plan, but it should be written last. It describes the proposed new business and highlights the goals of the company and the methods to achieve them.
• Company description: The company description covers what problems your product or service solves and why your business or idea is best. For example, maybe your background is in molecular engineering, and you’ve used that background to create a new type of athletic wear—you have the proper credentials to make the best material.
• Market analysis: This section of the business plan analyzes how well a company is positioned against its competitors. The market analysis should include target market, segmentation analysis, market size, growth rate, trends and a competitive environment assessment.
• Organization and structure: Write about the type of business organization you expect, what risk management strategies you propose and who will staff the management team. What are their qualifications? Will your business be a single-member limited liability company (LLC) or a corporation ?
• Mission and goals: This section should contain a brief mission statement and detail what the business wishes to accomplish and the steps to get there. These goals should be SMART (specific, measurable, action-orientated, realistic and time-bound).
• Products or services: This section describes how your business will operate. It includes what products you’ll offer to consumers at the beginning of the business, how they compare to existing competitors, how much your products cost, who will be responsible for creating the products, how you’ll source materials and how much they cost to make.
• Background summary: This portion of the business plan is the most time-consuming to write. Compile and summarize any data, articles and research studies on trends that could positively and negatively affect your business or industry.
• Marketing plan: The marketing plan identifies the characteristics of your product or service, summarizes the SWOT analysis and analyzes competitors. It also discusses how you’ll promote your business, how much money will be spent on marketing and how long the campaign is expected to last.
• Financial plan: The financial plan is perhaps the core of the business plan because, without money, the business will not move forward. Include a proposed budget in your financial plan along with projected financial statements, such as an income statement, a balance sheet and a statement of cash flows. Usually, five years of projected financial statements are acceptable. This section is also where you should include your funding request if you’re looking for outside funding.

Learn more: Download our free simple business plan template .

Come Up With an Exit Strategy

An exit strategy is important for any business that is seeking funding because it outlines how you’ll sell the company or transfer ownership if you decide to retire or move on to other projects. An exit strategy also allows you to get the most value out of your business when it’s time to sell. There are a few different options for exiting a business, and the best option for you depends on your goals and circumstances.

The most common exit strategies are:

• Selling the business to another party
• Passing the business down to family members
• Liquidating the business assets
• Closing the doors and walking away

Develop a Scalable Business Model

As your small business grows, it’s important to have a scalable business model so that you can accommodate additional customers without incurring additional costs. A scalable business model is one that can be replicated easily to serve more customers without a significant increase in expenses.

Some common scalable business models are:

• Subscription-based businesses
• Businesses that sell digital products
• Franchise businesses
• Network marketing businesses

Start Planning for Taxes

One of the most important things to do when starting a small business is to start planning for taxes. Taxes can be complex, and there are several different types of taxes you may be liable for, including income tax, self-employment tax, sales tax and property tax. Depending on the type of business you’re operating, you may also be required to pay other taxes, such as payroll tax or unemployment tax.

Start A Limited Liability Company Online Today with ZenBusiness

Click to get started.

When structuring your business, it’s essential to consider how each structure impacts the amount of taxes you owe, daily operations and whether your personal assets are at risk.

An LLC limits your personal liability for business debts. LLCs can be owned by one or more people or companies and must include a registered agent . These owners are referred to as members.

• LLCs offer liability protection for the owners
• They’re one of the easiest business entities to set up
• You can have a single-member LLC
• You may be required to file additional paperwork with your state on a regular basis
• LLCs can’t issue stock
• You’ll need to pay annual filing fees to your state

Limited Liability Partnership (LLP)

An LLP is similar to an LLC but is typically used for licensed business professionals such as an attorney or accountant. These arrangements require a partnership agreement.

• Partners have limited liability for the debts and actions of the LLP
• LLPs are easy to form and don’t require much paperwork
• There’s no limit to the number of partners in an LLP
• Partners are required to actively take part in the business
• LLPs can’t issue stock
• All partners are personally liable for any malpractice claims against the business

Sole Proprietorship

If you start a solo business, you might consider a sole proprietorship . The company and the owner, for legal and tax purposes, are considered the same. The business owner assumes liability for the business. So, if the business fails, the owner is personally and financially responsible for all business debts.

• Sole proprietorships are easy to form
• There’s no need to file additional paperwork with your state
• You’re in complete control of the business
• You’re personally liable for all business debts
• It can be difficult to raise money for a sole proprietorship
• The business may have a limited lifespan

Corporation

A corporation limits your personal liability for business debts just as an LLC does. A corporation can be taxed as a C corporation (C-corp) or an S corporation (S-corp). S-corp status offers pass-through taxation to small corporations that meet certain IRS requirements. Larger companies and startups hoping to attract venture capital are usually taxed as C-corps.

• Corporations offer liability protection for the owners
• The life span of a corporation is not limited
• A corporation can have an unlimited number of shareholders
• Corporations are subject to double taxation
• They’re more expensive and complicated to set up than other business structures
• The shareholders may have limited liability

Before you decide on a business structure, discuss your situation with a small business accountant and possibly an attorney, as each business type has different tax treatments that could affect your bottom line.

Helpful Resources

• How To Set Up an LLC in 7 Steps
• How To Start a Sole Proprietorship
• How To Start a Corporation
• How To Start a Nonprofit
• How To Start a 501(c)(3)

There are several legal issues to address when starting a business after choosing the business structure. The following is a good checklist of items to consider when establishing your business:

Choose Your Business Name

Make it memorable but not too difficult. Choose the same domain name, if available, to establish your internet presence. A business name cannot be the same as another registered company in your state, nor can it infringe on another trademark or service mark that is already registered with the United States Patent and Trademark Office (USPTO).

Business Name vs. DBA

There are business names, and then there are fictitious business names known as “Doing Business As” or DBA. You may need to file a DBA if you’re operating under a name that’s different from the legal name of your business. For example, “Mike’s Bike Shop” is doing business as “Mike’s Bikes.” The legal name of the business is “Mike’s Bike Shop,” and “Mike’s Bikes” is the DBA.

You may need to file a DBA with your state, county or city government offices. The benefits of a DBA include:

• It can help you open a business bank account under your business name
• A DBA can be used as a “trade name” to brand your products or services
• A DBA can be used to get a business license

Register Your Business and Obtain an EIN

You’ll officially create a corporation, LLC or other business entity by filing forms with your state’s business agency―usually the Secretary of State. As part of this process, you’ll need to choose a registered agent to accept legal documents on behalf of your business. You’ll also pay a filing fee. The state will send you a certificate that you can use to apply for licenses, a tax identification number (TIN) and business bank accounts.

Next, apply for an employer identification number (EIN) . All businesses, other than sole proprietorships with no employees, must have a federal employer identification number. Submit your application to the IRS and you’ll typically receive your number in minutes.

Get Appropriate Licenses and Permits

Legal requirements are determined by your industry and jurisdiction. Most businesses need a mixture of local, state and federal licenses to operate. Check with your local government office (and even an attorney) for licensing information tailored to your area.

• Best LLC Services
• How To Register a Business Name
• How To Register a DBA
• How To Get an EIN for an LLC
• How To Get a Business License

Start an LLC Online Today With ZenBusiness

Click on the state below to get started.

Open a Business Bank Account

Keep your business and personal finances separate. Here’s how to choose a business checking account —and why separate business accounts are essential. When you open a business bank account, you’ll need to provide your business name and your business tax identification number (EIN). This business bank account can be used for your business transactions, such as paying suppliers or invoicing customers. Most times, a bank will require a separate business bank account to issue a business loan or line of credit.

Hire a Bookkeeper or Get Accounting Software

If you sell a product, you need an inventory function in your accounting software to manage and track inventory. The software should have ledger and journal entries and the ability to generate financial statements.

Some software programs double as bookkeeping tools. These often include features such as check writing and managing receivables and payables. You can also use this software to track your income and expenses, generate invoices, run reports and calculate taxes.

There are many bookkeeping services available that can do all of this for you, and more. These services can be accessed online from any computer or mobile device and often include features such as bank reconciliation and invoicing. Check out the best accounting software for small business, or see if you want to handle the bookkeeping yourself.

Determine Your Break-Even Point

Before you fund your business, you must get an idea of your startup costs. To determine these, make a list of all the physical supplies you need, estimate the cost of any professional services you will require, determine the price of any licenses or permits required to operate and calculate the cost of office space or other real estate. Add in the costs of payroll and benefits, if applicable.

Businesses can take years to turn a profit, so it’s better to overestimate the startup costs and have too much money than too little. Many experts recommend having enough cash on hand to cover six months of operating expenses.

When you know how much you need to get started with your business, you need to know the point at which your business makes money. This figure is your break-even point.

In contrast, the contribution margin = total sales revenue – cost to make product

For example, let’s say you’re starting a small business that sells miniature birdhouses for fairy gardens. You have determined that it will cost you $500 in startup costs. Your variable costs are $0.40 per birdhouse produced, and you sell them for $1.50 each.

Let’s write these out so it’s easy to follow:

This means that you need to sell at least 456 units just to cover your costs. If you can sell more than 456 units in your first month, you will make a profit.

• The Best Business Checking Accounts
• The Best Accounting Software for Small Business
• How To Open a Bank Account

There are many different ways to fund your business—some require considerable effort, while others are easier to obtain. Two categories of funding exist: internal and external.

Internal funding includes:

• Personal savings
• Credit cards
• Funds from friends and family

If you finance the business with your own funds or with credit cards, you have to pay the debt on the credit cards and you’ve lost a chunk of your wealth if the business fails. By allowing your family members or friends to invest in your business, you are risking hard feelings and strained relationships if the company goes under. Business owners who want to minimize these risks may consider external funding.

External funding includes:

• Small business loans
• Small business grants
• Angel investors
• Venture capital
• Crowdfunding

Small businesses may have to use a combination of several sources of capital. Consider how much money is needed, how long it will take before the company can repay it and how risk-tolerant you are. No matter which source you use, plan for profit. It’s far better to take home six figures than make seven figures and only keep $80,000 of it.

Funding ideas include:

• Invoice factoring: With invoice factoring , you can sell your unpaid invoices to a third party at a discount.
• Business lines of credit: Apply for a business line of credit , which is similar to a personal line of credit. The credit limit and interest rate will be based on your business’s revenue, credit score and financial history.
• Equipment financing: If you need to purchase expensive equipment for your business, you can finance it with a loan or lease.
• Small Business Administration (SBA) microloans: Microloans are up to $50,000 loans that can be used for working capital, inventory or supplies and machinery or equipment.
• Grants: The federal government offers grants for businesses that promote innovation, export growth or are located in historically disadvantaged areas. You can also find grants through local and regional organizations.
• Crowdfunding: With crowdfunding , you can raise money from a large group of people by soliciting donations or selling equity in your company.

Choose the right funding source for your business by considering the amount of money you need, the time frame for repayment and your tolerance for risk.

• Best Small Business Loans
• Best Startup Business Loans
• Best Business Loans for Bad Credit
• Business Loan Calculator
• Average Business Loan Rates
• How To Get a Business Loan

You need to have insurance for your business , even if it’s a home-based business or you don’t have any employees. The type of insurance you need depends on your business model and what risks you face. You might need more than one type of policy, and you might need additional coverage as your business grows. In most states, workers’ compensation insurance is required by law if you have employees.

Work With an Agent To Get Insured

An insurance agent can help determine what coverages are appropriate for your business and find policies from insurers that offer the best rates. An independent insurance agent represents several different insurers, so they can shop around for the best rates and coverage options.

Basic Types of Business Insurance Coverage

• Liability insurance protects your business against third-party claims of bodily injury, property damage and personal injury such as defamation or false advertising.
• Property insurance covers the physical assets of your business, including your office space, equipment and inventory.
• Business interruption insurance pays for the loss of income if your business is forced to close temporarily due to a covered event such as a natural disaster.
• Product liability insurance protects against claims that your products caused bodily injury or property damage.
• Employee practices liability insurance covers claims from employees alleging discrimination, sexual harassment or other wrongful termination.
• Workers’ compensation insurance covers medical expenses and income replacement for employees who are injured on the job.
• Best Small Business Insurance
• Best Commercial Auto Insurance
• How To Get Product Liability Insurance
• Your Guide to General Liability Insurance
• 13 Types of Small Business Insurance

Business tools can help make your life easier and make your business run more smoothly. The right tools can help you save time, automate tasks and make better decisions.

Consider the following tools in your arsenal:

• Accounting software : Track your business income and expenses, prepare financial statements and file taxes. Examples include QuickBooks and FreshBooks.
• Customer relationship management (CRM) software : This will help you manage your customer relationships, track sales and marketing data and automate tasks like customer service and follow-ups. Examples include Zoho CRM and monday.com.
• Project management software : Plan, execute and track projects. It can also be used to manage employee tasks and allocate resources. Examples include Airtable and ClickUp.
• Credit card processor : This will allow you to accept credit card payments from customers. Examples include Stripe and PayPal.
• Point of sale (POS) : A system that allows you to process customer payments. Some accounting software and CRM software have POS features built-in. Examples include Clover and Lightspeed.
• Virtual private network (VPN) : Provides a secure, private connection between your computer and the internet. This is important for businesses that handle sensitive data. Examples include NordVPN and ExpressVPN.
• Merchant services : When customers make a purchase, the money is deposited into your business account. You can also use merchant services to set up recurring billing or subscription payments. Examples include Square and Stripe.
• Email hosting : This allows you to create a professional email address with your own domain name. Examples include G Suite and Microsoft Office 365.

Many business owners spend so much money creating their products that there isn’t a marketing budget by the time they’ve launched. Alternatively, they’ve spent so much time developing the product that marketing is an afterthought.

Create a Website

Even if you’re a brick-and-mortar business, a web presence is essential. Creating a website doesn’t take long, either—you can have one done in as little as a weekend. You can make a standard informational website or an e-commerce site where you sell products online. If you sell products or services offline, include a page on your site where customers can find your locations and hours. Other pages to add include an “About Us” page, product or service pages, frequently asked questions (FAQs), a blog and contact information.

Optimize Your Site for SEO

After getting a website or e-commerce store, focus on optimizing it for search engines (SEO). This way, when a potential customer searches for specific keywords for your products, the search engine can point them to your site. SEO is a long-term strategy, so don’t expect a ton of traffic from search engines initially—even if you’re using all the right keywords.

Create Relevant Content

Provide quality digital content on your site that makes it easy for customers to find the correct answers to their questions. Content marketing ideas include videos, customer testimonials, blog posts and demos. Consider content marketing one of the most critical tasks on your daily to-do list. This is used in conjunction with posting on social media.

Get Listed in Online Directories

Customers use online directories like Yelp, Google My Business and Facebook to find local businesses. Some city halls and chambers of commerce have business directories too. Include your business in as many relevant directories as possible. You can also create listings for your business on specific directories that focus on your industry.

Develop a Social Media Strategy

Your potential customers are using social media every day—you need to be there too. Post content that’s interesting and relevant to your audience. Use social media to drive traffic back to your website where customers can learn more about what you do and buy your products or services.

You don’t necessarily need to be on every social media platform available. However, you should have a presence on Facebook and Instagram because they offer e-commerce features that allow you to sell directly from your social media accounts. Both of these platforms have free ad training to help you market your business.

• Best Website Builders
• How To Make a Website for Your Business
• The Best E-Commerce Platforms
• Best Blogging Platforms
• Best Web Hosting Services

To scale your business, you need to grow your customer base and revenue. This can be done by expanding your marketing efforts, improving your product or service, collaborating with other creators or adding new products or services that complement what you already offer.

Think about ways you can automate or outsource certain tasks so you can focus on scaling the business. For example, if social media marketing is taking up too much of your time, consider using a platform such as Hootsuite to help you manage your accounts more efficiently. You can also consider outsourcing the time-consumer completely.

You can also use technology to automate certain business processes, including accounting, email marketing and lead generation. Doing this will give you more time to focus on other aspects of your business.

When scaling your business, it’s important to keep an eye on your finances and make sure you’re still profitable. If you’re not making enough money to cover your costs, you need to either reduce your expenses or find ways to increase your revenue.

Build a Team

As your business grows, you’ll need to delegate tasks and put together a team of people who can help you run the day-to-day operations. This might include hiring additional staff, contractors or freelancers.

Resources for building a team include:

• Hiring platforms: To find the right candidates, hiring platforms, such as Indeed and Glassdoor, can help you post job descriptions, screen résumés and conduct video interviews.
• Job boards: Job boards such as Craigslist and Indeed allow you to post open positions for free.
• Social media: You can also use social media platforms such as LinkedIn and Facebook to find potential employees.
• Freelance platforms: Using Upwork, Freelancer and Fiverr can help you find talented freelancers for one-time or short-term projects. You can also outsource certain tasks, such as customer service, social media marketing or bookkeeping.

You might also consider partnering with other businesses in your industry. For example, if you’re a wedding planner, you could partner with a florist, photographer, catering company or venue. This way, you can offer your customers a one-stop shop for all their wedding needs. Another example is an e-commerce store that partners with a fulfillment center. This type of partnership can help you save money on shipping and storage costs, and it can also help you get your products to your customers faster.

To find potential partnerships, search for businesses in your industry that complement what you do. For example, if you’re a web designer, you could partner with a digital marketing agency.

You can also search for businesses that serve the same target market as you but offer different products or services. For example, if you sell women’s clothing, you could partner with a jewelry store or a hair salon.

• Best Recruiting Software
• How To Hire Employees
• Where To Post Jobs
• Best Applicant Tracking Systems

To rank the best states to start a business in 2024, Forbes Advisor analyzed 18 key metrics across five categories to determine which states are the best and worst to start a business in. Our ranking takes into consideration factors that impact businesses and their ability to succeed, such as business costs, business climate, economy, workforce and financial accessibility in each state. Check out the full report .

Starting a small business takes time, effort and perseverance. But if you’re willing to put in the work, it can be a great way to achieve your dreams and goals. Be sure to do your research, create a solid business plan and pivot along the way. Once you’re operational, don’t forget to stay focused and organized so you can continue to grow your business.

How do I start a small business with no money?

There are several funding sources for brand-new businesses and most require a business plan to secure it. These include the SBA , private grants, angel investors, crowdfunding and venture capital.

What is the best business structure?

The best business structure for your business will depend entirely on what kind of company you form, your industry and what you want to accomplish. But any successful business structure will be one that will help your company set realistic goals and follow through on set tasks.

Do I need a business credit card?

You don’t need one, but a business credit card can be helpful for new small businesses. It allows you to start building business credit, which can help you down the road when you need to take out a loan or line of credit. Additionally, business credit cards often come with rewards and perks that can save you money on business expenses.

Do I need a special license or permit to start a small business?

The answer to this question will depend on the type of business you want to start and where you’re located. Some businesses, such as restaurants, will require a special permit or license to operate. Others, such as home daycare providers, may need to register with the state.

How much does it cost to create a business?

The cost of starting a business will vary depending on the size and type of company you want to create. For example, a home-based business will be less expensive to start than a brick-and-mortar store. Additionally, the cost of starting a business will increase if you need to rent or buy commercial space, hire employees or purchase inventory. You could potentially get started for free by dropshipping or selling digital goods.

How do I get a loan for a new business?

The best way to get a loan for a new business is to approach banks or other financial institutions and provide them with a business plan and your financial history. You can also look into government-backed loans, such as those offered by the SBA. Startups may also be able to get loans from alternative lenders, including online platforms such as Kiva.

Do I need a business degree to start a business?

No, you don’t need a business degree to start a business. However, acquiring a degree in business or a related field can provide you with the understanding and ability to run an effective company. Additionally, you may want to consider taking some business courses if you don’t have a degree to learn more about starting and running a business. You can find these online and at your local Small Business Administration office.

What are some easy businesses to start?

One of the easiest businesses to start also has the lowest overhead: selling digital goods. This can include items such as e-books, online courses, audio files or software. If you have expertise in a particular area or niche, this is a great option for you. Dropshipping is also a great option because you don’t have to keep inventory. You could also buy wholesale products or create your own. Once you create your product, you can sell it through your own website or third-party platforms such as Amazon or Etsy.

What is the most profitable type of business?

There is no one answer to this question because the most profitable type of business will vary depending on a number of factors, such as your industry, location, target market and business model. However, some businesses tend to be more profitable than others, such as luxury goods, high-end services, business-to-business companies and subscription-based businesses. If you’re not sure what type of business to start, consider your strengths and interests, as well as the needs of your target market, to help you choose a profitable business idea.

• Best Registered Agent Services
• Best Trademark Registration Services
• Top LegalZoom Competitors
• Best Business Loans
• Best Business Plan Software
• ZenBusiness Review
• LegalZoom LLC Review
• Northwest Registered Agent Review
• Rocket Lawyer Review
• Inc. Authority Review
• Rocket Lawyer vs. LegalZoom
• Bizee Review (Formerly Incfile)
• Swyft Filings Review
• Harbor Compliance Review
• Sole Proprietorship vs. LLC
• LLC vs. Corporation
• LLC vs. S Corp
• LLP vs. LLC
• DBA vs. LLC
• LegalZoom vs. Incfile
• LegalZoom vs. ZenBusiness
• LegalZoom vs. Rocket Lawyer
• ZenBusiness vs. Incfile
• How to Set Up an LLC
• How to Get a Business License
• LLC Operating Agreement Template
• 501(c)(3) Application Guide
• What is a Business License?
• What is an LLC?
• What is an S Corp?
• What is a C Corp?
• What is a DBA?
• What is a Sole Proprietorship?
• What is a Registered Agent?
• How to Dissolve an LLC
• How to File a DBA
• What Are Articles Of Incorporation?
• Types Of Business Ownership

Next Up In Business

• Best Online Legal Services
• How To Write A Business Plan
• How To Start A Candle Business
• Starting An S-Corp
• LLC Vs. C-Corp
• How Much Does It Cost To Start An LLC?
• How To Start An Online Boutique
• Most Recession-Proof Businesses In 2024

How To Start A Print On Demand Business In 2024

HR For Small Businesses: The Ultimate Guide

How One Company Is Using AI To Transform Manufacturing

Not-For-Profit Vs. Nonprofit: What’s The Difference?

How To Develop an SEO Strategy in 2024

How To Make Money On Social Media in 2024

Katherine Haan is a small business owner with nearly two decades of experience helping other business owners increase their incomes.

This device is too small

If you're on a Galaxy Fold, consider unfolding your phone or viewing it in full screen to best optimize your experience.

• Small Business

5 Critical Tips for Choosing the Right Small Business Insurance

Published on May 28, 2024

By: Ashley Maready

Writer and Editor

• Different businesses have different requirements -- a professional can answer your questions and steer you in the right direction.
• If you have staff, you will likely be required to carry worker's compensation and other insurance.
• The cheapest policies aren't necessarily the best -- shop around for rates and coverages.

Check out our pick for the best cash back credit card of 2024

Insurance isn't the most riveting topic in the world of small business finances, but it's surely one of the most important. Having the right insurance coverage in place can be the difference between being able to carry on operations in the event of a problem (like a lawsuit or a workplace injury) -- and having to shut your doors.

1. Identify the risks to your business

Before you can set up insurance coverage, you need to know what risks your business might actually be facing. For example, it doesn't make sense to have commercial auto insurance coverage if you don't drive for work (and you don't have employees who do, either).

Business insurance selection guide

Choosing the right small business insurance is essential for protecting your assets and ensuring your operations run smoothly in the face of unexpected events. It’s about finding coverage that fits your specific needs and provides peace of mind as you grow. The tool below is designed to guide you through the selection process in a friendly, straightforward manner, helping you secure the perfect insurance plan that safeguards your business’s future.

2. Consider your staffing situation

If you are a sole proprietor or have a single employee, your coverage needs will be less than that of a business owner with employees. You'll need to consult with your state's Department of Insurance, but if you have staff, you will likely need worker's compensation insurance, unemployment insurance, and possibly disability insurance. Always consider your current and future staffing when you're choosing insurance -- you can get in legal trouble if you have staff and lack the required coverage.

3. Talk to a professional -- and get lots of options

Feeling a little lost when you consider all the possible problems you could encounter as a business owner? Good news -- there's help available. A licensed insurance agent or broker will be well versed in the laws in your state (which will influence the type of coverage you need) and can research policy and insurance company options for you.

The National Association of Insurance Commissioners has a tool for looking up insurance agents and brokers in your local area. When you find the right help, don't be shy about asking questions about coverage options. And consider getting quotes from multiple insurers, because comparing policy premiums is really the best way to save money on insurance. Don't forget to adjust those deductibles, either -- if you feel comfortable increasing a policy deductible from $1,000 to $2,000, you'll likely end up spending less on your premiums.

4. Rethink picking the cheapest policies

Of course it's important to save money wherever possible, especially if you're just starting out with your new business. But automatically going with the cheapest policy option presented to you might not be such a wise move, even if it means a smaller recurring debit from your business checking account .

Instead, dig into the details of that policy to make sure you're covered in the ways you expect and need. Ask lots of questions if you're working with an insurance agent or broker to put coverage in place. (Insurance can be confusing!) It's worth spending a little more for policies if doing so means getting real protection for your business that you feel good about.

5. Don't forget to check in annually

Finally, don't assume that insurance coverage is a "set it and forget it" task -- it's not! Instead, you should revisit your coverage details at least once per year. If you change where or how your business operates or add staff, you might need to make changes more often than annually.

Say, for example, you were running your business from your home, but you decide to rent a storefront to sell from instead of mailing out orders. You also hire a few staff members. Now you might need commercial property insurance, perhaps more general liability insurance, and you also need the legally required insurance for employers that we discussed above.

Stay on top of your coverage needs -- it would be a shame to find out after a disaster that you didn't have the coverage necessary to pay your expenses and ensure your business can continue operating. And in the case of something like worker's compensation insurance, you could even find yourself in legal hot water if you go without.

There are a lot of plates to keep spinning if you're running a small business . You deserve the peace of mind that comes from knowing you've got the right insurance coverage -- so follow these tips to put it in place.

Alert: our top-rated cash back card now has 0% intro APR until 2025

This credit card is not just good – it’s so exceptional that our experts use it personally. It features a lengthy 0% intro APR period, a cash back rate of up to 5%, and all somehow for no annual fee! Click here to read our full review for free and apply in just 2 minutes.

Our Research Expert

Ashley Maready changed careers from museum operations and management to writing and editing in 2021. She has a passion for teaching others about better living through improving your finances.

Share this page

We're firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers. The Ascent, a Motley Fool service, does not cover all offers on the market. The Ascent has a dedicated team of editors and analysts focused on personal finance, and they follow the same set of publishing standards and editorial integrity while maintaining professional separation from the analysts and editors on other Motley Fool brands.

Related Articles

By: Brittney Myers | Published on May 10, 2024

By: Dana George | Published on May 13, 2024

By: Chris Neiger | Published on May 24, 2024

By: Christy Bieber | Published on May 13, 2024

By: Lyle Daly | Published on May 14, 2024

The Ascent is a Motley Fool service that rates and reviews essential products for your everyday money matters.

Copyright © 2018 - 2024 The Ascent. All rights reserved.

An official website of the United States government.

Here’s how you know

The .gov means it’s official. Federal government websites often end in .gov or .mil. Before sharing sensitive information, make sure you’re on a federal government site.

The site is secure. The https:// ensures that you are connecting to the official website and that any information you provide is encrypted and transmitted securely.

• American Job Centers
• Apprenticeship
• Demonstration Grants
• Farmworkers
• Federal Bonding Program
• Foreign Labor Certification
• Indians and Native Americans
• Job Seekers
• Layoffs and Rapid Response
• National Dislocated Worker Grants
• Older Workers
• Skills Training Grants
• Trade Adjustment Assistance
• Unemployment Insurance
• Workforce Innovation and Opportunity Act (WIOA)
• WIOA Adult Program
• Advisories and Directives
• Regulations
• Labor Surplus Area
• Performance
• Recovery-Ready Workplace Resource Hub
• Research and Evaluation
• ETA News Releases
• Updates for Workforce Professionals
• Regional Offices
• Freedom of Information Act
• Office of Apprenticeship
• Office of Foreign Labor Certification
• Office of Grants Management
• Office of Job Corps
• Office of Unemployment Insurance (1-877-S-2JOBS)

The Tools of Apprenticeship.gov

Learn How to File for Unemployment Insurance

Employment Services

ETA Workforce Data Hub

Workforce tools, strategies and technical assistance.

June 6, 2024

Unemployment Insurance Weekly Claims Report

May 30, 2024

May 23, 2024

Department of Labor awards nearly $3.8M in funding to Florida to continue support for temporary jobs, workforce training after Hurricane Ian

Federal Acquisition Regulation

Full far download in various formats.

Browse FAR Part/Subpart and Download in Various Formats

• Data Initiatives
• Regulations
• Smart Matrix
• Regulations Search
• Acquisition Regulation Comparator (ARC)
• Large Agencies
• Small Agencies
• CAOC History
• CAOC Charter
• Civilian Agency Acquisition Council (CAAC)
• Federal Acquisition Regulatory Council
• Interagency Suspension and Debarment Committee (ISDC)

ACQUISITION.GOV

An official website of the General Services Administration

How much does business insurance cost?

In a nutshell

The average annual cost of a business owners policy (BOP) is $684. However, this can vary based on multiple factors, including the business’ size, location, number of employees and value of any property it owns.

• Business insurance provides coverage for theft, fire damage, liability and other financial risks.
• A local, independent agent can help you get coverage that works for your budget.

How does business insurance work?

Business insurance provides financial protection against risks that are common to small businesses. These risks include:

• Theft of business property.
• Damage to business property damage from fires, storms or vandalism.
• Liabilities related to business operations. For example, it covers liability if a customer slips on a business’ floor and is injured.
• Income lost if the business is unable to operate due to a covered event like fire damage.
• Employees’ job-borne injuries and illnesses.
• Liabilities related to the company’s vehicles and drivers.

Specific coverage needs vary depending on the type and size of the business and how it operates. For example, a plumbing company that works in three counties with 12 employees driving company vehicles and using company tools will have very different needs than a baker with no employees and a single retail location.

Types of business insurance

There are several types of business insurance, each suitable for businesses of different types and sizes.

• General liability (GL) insurance: Provides coverage if a business causes bodily injury or death, property damage, reputational harm or advertising injuries such as copyright infringement.
• Business property insurance: Protects a business financially in the event of theft, damage or other loss to business-owned property.
• Business interruption coverage: Reimburses lost business income if storm damage, theft, vandalism or some other catastrophe forces the business to shut down operations.
• Business owners policy (BOP): A “package” of GL, business property and business interruption coverage. It’s usually marketed to small- to medium-sized businesses.
• Commercial auto insurance: Coverage for company vehicles, whether they’re owned, leased or rented. While similar to a personal auto policy, commercial auto insurance is tailored to the needs of a business.
• Commercial umbrella insurance: Additional liability coverage that kicks in if a claim exceeds a business policy’s GL limits.
• Cybersecurity insurance: Coverage for costs related to cyberattacks, including recovery and replacement of lost/stolen data, customer notification and legal counsel.
• Employment practices liability insurance (EPLI): Covers a business if it’s sued by current or former employees for issues such as discrimination, wrongful termination or harassment.
• Inland marine insurance: Covers business property that’s transported overland by truck, train or other method.
• Product liability insurance: Covers a business in case its products injure a customer or other third party.
• Workers' compensation insurance: Provides coverage of medical expenses, lost wages and rehabilitation if an employee is injured or becomes ill on the job.

Average cost of insurance for small businesses

The online insurance agency Insureon publishes the average cost of various business insurance coverages. These costs are based on pricing data from the company’s own customers.

Again, these figures are averages based on Insureon’s customers. Your pricing could vary significantly from what is shown here.

Factors that affect the cost of small business insurance

No two businesses are exactly alike, and no two businesses have identical insurance needs. Your cost for small business insurance will thus be affected by several factors, including the following:

• Coverage choices: Your coverage choices are a major determinant of your insurance cost. A business with more extensive coverage needs will likely pay more than one with fewer needs.
• Claim history: A business with a long history of insurance claims will almost definitely pay more for coverage.
• Type of business and industry: The type of business affects the cost of insurance.

A business that interacts with the general public in retail locations may have higher liability costs than one with little public exposure. Or a business with a fleet of delivery vehicles and drivers will likely pay more than one that does not use vehicles.

Other operational details

The number of employees, annual revenue, amount of inventory kept onsite, amount of property owned (not only real estate, but equipment, electronics, furniture, etc.) can all affect the cost of insurance.

Businesses in areas with a high crime rate or in areas with heavy public traffic may pay more for coverages such as business property.

Requirements

Most states require businesses with more than one employee to provide workers compensation coverage. Similarly, most states require businesses that operate vehicles on public roads to have commercial auto insurance. Local laws may require certain businesses to have GL coverage.

How to manage and lower your small business insurance costs

There are numerous ways to save money on business insurance.

Bundle coverage

A BOP policy combines three essential coverages — GL, business property and business interruption — into a more affordable package. There may also be other opportunities to bundle policies with a single insurer, which may help you save.

Review your coverage and risks

Make sure your business insurance accurately reflects your risk. If you don’t ship goods overland, for example, it may not make sense to have inland marine insurance. If your business doesn’t use vehicles, you may not need commercial auto coverage. An insurance agent can help you assess your needs.

Adjust deductibles

With all other things being equal, choosing a higher deductible will lower your insurance premium. This can be an effective way to save on insurance. Just remember that you’ll owe the amount of that deductible if you ever have a claim.

Ask about discounts

As with homeowners or car insurance, many insurers offer discounts for small business insurance. These may include discounts for paying the policy premium in full (rather than monthly installments), having no claims or being part of a group or profession.

Manage your risks

Many business insurance providers offer tools and guidance to help businesses manage their risks. Ask, and if yours does, use them. Using these tools can help lower your chances of filing a claim, and the insurer may agree to lower your premium.

How to get affordable business insurance

As a business owner and a consumer, you certainly owe it to yourself to look for ways to save money on insurance. The fact is that insurance is a key driver of our recent period of inflation, which is particularly true for car insurance, though many forms of property and casualty insurance cost more now than before.

Seeking out “no-brainer” discounts for things like paying in full make perfect sense as a way to save money. But use caution when adjusting policies, coverages, limits and deductibles. Remember that your business is at stake, and altering your insurance could put you at significant financial risk.

This is why it’s a good idea to work with an independent insurance agent. These are licensed professionals — and often fellow small business owners — who are dedicated to ensuring your business has the coverage it needs. Being local, they understand the municipal ordinances and other requirements in the places where you do business. And because they typically represent multiple insurers, they can shop around on your behalf to get you the best price.

The AP Buyline roundup

Insurance protects small businesses from a wide variety of financial risks. A business’ insurance needs will vary based on the size and type of business, its location, number of employees and other factors. An independent insurance agent can help a business get the coverage it needs at the best possible cost.

Frequently asked questions (FAQs)

Can you negotiate business insurance rates.

Unfortunately, you can’t negotiate an insurance rate. An insurer’s method of calculating rates must be approved by each state where it does business, and it cannot alter those approved rates for one customer and not another. The insurer can, however, offer discounts for factors that are actuarially justified with data. For example, if the insurer has data showing that people who pay their policy in full are less likely to file claims, then it can offer those customers a discount. So while you can’t negotiate your way to a lower price, you should ask if you qualify for any discounts.

What are policy limits and how do they affect business insurance costs?

In insurance, a limit is the maximum amount of money the insurance company will pay to settle a claim. You can choose policy limits when you buy insurance. Choosing higher limits means the policy will cost more, but it will provide greater coverage

A simple example: Say a business has general liability (GL) coverage with a $500,000 limit. The business is responsible for an accident resulting in $100,000 of property damage. Because the dollar amount of the damage falls under the policy’s limit, the insurer would fully cover the claim. If, however, the property damage was worth $600,000, the insurer would pay no more than $500,000. The business would be responsible for the remaining $100,000.

How much does business insurance typically cost?

A business owners policy (BOP) that combines general liability (GL), business property and business interruption coverages costs an average of $684 per year, according to Insureon.

Is business insurance a startup cost?

Insurance should be considered a startup cost for any business. Any business, whether new or mature, has financial risks it needs to protect against.

635th Anti-Aircraft Missile Regiment

635-й зенитно-ракетный полк

Military Unit: 86646

Activated 1953 in Stepanshchino, Moscow Oblast - initially as the 1945th Anti-Aircraft Artillery Regiment for Special Use and from 1955 as the 635th Anti-Aircraft Missile Regiment for Special Use.

1953 to 1984 equipped with 60 S-25 (SA-1) launchers:

• Launch area: 55 15 43N, 38 32 13E (US designation: Moscow SAM site E14-1)
• Support area: 55 16 50N, 38 32 28E
• Guidance area: 55 16 31N, 38 30 38E

1984 converted to the S-300PT (SA-10) with three independent battalions:

• 1st independent Anti-Aircraft Missile Battalion (Bessonovo, Moscow Oblast) - 55 09 34N, 38 22 26E
• 2nd independent Anti-Aircraft Missile Battalion and HQ (Stepanshchino, Moscow Oblast) - 55 15 31N, 38 32 23E
• 3rd independent Anti-Aircraft Missile Battalion (Shcherbovo, Moscow Oblast) - 55 22 32N, 38 43 33E

Disbanded 1.5.98.

Subordination:

• 1st Special Air Defence Corps , 1953 - 1.6.88
• 86th Air Defence Division , 1.6.88 - 1.10.94
• 86th Air Defence Brigade , 1.10.94 - 1.10.95
• 86th Air Defence Division , 1.10.95 - 1.5.98

• SMP WEDDINGS
• SMP’S VENUE BLOG
• LITTLE BLACK BOOK BLOG
• LBB INDUSTRY BLOG
• DESTINATION
• NEW ENGLAND
• THE NORTHWEST
• THE MIDWEST
• THE SOUTHWEST
• THE SOUTHEAST
• THE MID-ATLANTIC
• THE TRI-STATE AREA

Russia Weddings

• Real Weddings
• Bridal Week
• Engagements & Proposals
• Seasonal Wedding Trends
• Bridal Beauty
• Wedding Fashion Trends
• Vendor Guide
• DIY Projects
• Registry Guide
• Engagements & Proposals
• by Melissa Hammam
• comments ( )

Hands up if you’re ready to be dazzled! From a ceremony structure designed to float on water to a jaw-dropping reception room with flowers blooming from every service, we’re swooning over every bit of this wedding. If you can believe it, that’s just the beginning. Julia Kaptelova artfully shot every detail, like the ballet performance guests were treated to and snow falling from the ceiling for the first dance! Prepare to be amazed and take a visit to the full gallery .

From About You Decor … Our design is a symbol of dawn and a distant endless horizon. Ahead is a long, happy life without any borders. An international couple, Pavel and Cherry, met in London and have been walking together for many years.

From the Bride, Cherry… My husband and I we decided to have our summer wedding in Moscow because the city is where his roots are. As we knew we were going to have the other wedding ceremony in China, we wanted our Moscow one to be very personal and intimate. We’ve known each other since we were fourteen, together with many of our friends whom we’ve also known for a decade.

I didn’t want to walk down the aisle twice so the plausibility of my request quickly came into discussion. The open pontoon stage was constructed in order to facilitate the bridal entrance on water, although there were concerns about safety as the last thing we wanted was probably a drowned bride before she could get on stage, picture that! I have to say on that day it wasn’t easy to get on the pontoon stage from the boat, in my long gown and high heels. Luckily my bridesmaids still noticed even though they stood the furthest from me on the stage, and helped me out without prior rehearsal. My girls could just tell whenever I needed a hand or maybe they were just so used to my clumsiness. Who knows 😂

We all love our photographer Julia! She’s so talented and her style is so unique. Our beloved host Alex is exceptional who made everyone laugh and cry. It was truly a blessing to have so many kind and beautiful souls on our big day. Thank you all!

[iframe https://player.vimeo.com/video/384992271 600 338]

Photography: Julia Kaptelova Photography | Wedding Planner: Caramel | Cake: Any Cake | Invitations: Inviteria | Rings: Harry Winston | Band: Menhouzen | Grooms attire: Ermenegildo Zegna | Wedding Venue: Elizaveta Panichkina | Bridesmaids’ dresses: Marchesa | Bridesmaids’ dresses: Alice McCall | Bride’s gown : Jaton Couture | Bride’s shoes: Manolo Blahnik | Decor : About you decor | Earrings: Damiani | Muah: Khvanaco Studio | Video: Artem Korchagin

More Princess-Worthy Ballgowns

I’m still not convinced this Moscow wedding, captured to perfection by  Sonya Khegay , isn’t actually an inspiration session—it’s just  that breathtaking. From the beautiful Bride’s gorgeous lace wedding dress and flawless hair and makeup to the pretty pastel color palette and stunning ceremony and reception spaces, this wedding is almost too good to be true. Do yourself a favor and see it all in The Vault now!

From Sonya Khegay … It was the last day of April and still very cold in the morning. The weather forecast wasn’t pleasing and no one expected that the sun would come out, but miracles happen and light rain gave way to the warm rays.

I love how all the details went together, you could feel the harmony in everything throughout the entire wedding day from the morning until the fireworks.

A gentle look of the bride, elegant but so airy and unique decor, the fresh and light atmosphere of early spring and, of course, true happiness in the eyes. My heart becomes so warm from these memories, it is always a pleasure to see the birth of a new family of two loving hearts.

Photography: Sonya Khegay | Event Design: Latte Decor | Event Planning: Ajur Wedding | Floral Design: Blush Petals | Wedding Dress: La Sposa | Stationery: Special Invite | Bride's Shoes: Gianvito Rossi | Hair + Makeup: Natalie Yastrebova | Venue: Rodniki Hotel

• by Elizabeth Greene

You really can’t go wrong with simple: a beautiful Bride , perfectly pretty petals , loved ones all around. But add in an amazing firework show  to cap off the night and simple just became downright extraordinary. Captured by Lena Elisseva , with assistance by  Katya Butenko , this rustic Russian celebration is simply fantastic. See it all in the Vault right here !

From Lena Eliseeva Photo …  This cozy and warm summer wedding of gorgeous Natalia and Anton was in the middle of June. The young couple decided to organize their wedding themselves, and the day was very personal and touching. I am absolutely in love with rustic outdoor weddings, and this one is my favourite because of the free and easy atmosphere.

All the decor excluding the bride’s bouquet was made by a team of ten friends of the bride and groom. And it was charming – a light and beautiful arch, eco-style polygraphy and succulents, candy-bar with caramel apples and berries – sweet joys of summer.

At the end of ceremony the guests tossed up white handkerchiefs embroidered by Natalia’s own hands.

The most touching moment was the happy eyes of the groom’s grandmother, the most estimable person on the wedding. And the fireworks were a bright end to that beautiful day.

Photography: LENA ELISEEVA PHOTO | Floral Design: Katerina Kazakova | Hair And Makeup: Svetlana Fischeva | Photography - Assistance: Katya Butenko

These photos from Lena Kozhina are so stunningly beautiful – as in you can’t help but stop and stare – it’s hard to believe it’s real life. But these pics are proof of this gorgeous Bride and her handsome Groom’s celebration at Moscow’s Fox Lodge , surrounded by vibrant colors and breathtaking blooms . Oh, and the idea of prepping for your Big Day outside in the sun ? Brilliant. See more bright ideas right here !

From Lena Kozhina … When we met with the couple for the first time, we immediately paid attention to Dima’s behavior towards Julia. There was a feeling of tenderness and awe, and we immediately wanted to recreate this atmosphere of love, care and warmth on their Big Day.

Later, when we had chosen a green meadow and an uncovered pavilion overlooking a lake as the project site, it only highlighted a light summer mood with colorful florals and a great number of natural woods. The name of the site is Fox Lodge and peach-orange color, as one of the Bride’s favorites, set the tone for the whole design – from the invitations, in which we used images of fox cubs to elements of serving guest tables and other decorative elements with the corresponding bright accents.

Photography: Lena Kozhina | Event Planning: Ajur Wedding | Wedding Dress: Rosa Clara | Shoes: Marc Jacobs | Catering: Fox Lodge | Makeup Artist: Elena Otrembskaya | Wedding Venue: Fox Lodge | Cake and Desserts: Yumbaker | Decor: Latte Decor

From Our Partners

John Deere Officially Opens New Manufacturing Facility in Russia

News provided by

Apr 27, 2010, 09:00 ET

Share this article

MOSCOW , April 27 /PRNewswire-FirstCall/ -- Deere & Company (NYSE: DE ) officially opened its new manufacturing and parts distribution facility south of Moscow today in Domodedovo. The John Deere Domodedovo facility is the company's largest single investment to date in Russia . The facility will manufacture agricultural, construction and forestry machinery as well as distribute service parts in the region.

(Logo: http://www.newscom.com/cgi-bin/prnh/20030326/JOHNDEERELOGO )

" Russia has a tradition of embracing advanced equipment and modern agricultural and forestry management practices," said Deere & Company chairman and CEO Samuel R. Allen at the facility's grand opening ceremony. "These are critical to the health and development of large-scale farming and forestry. They also tend to be a good match for the capabilities of John Deere products."

The new facility at Domodedovo is open just nine months after John Deere first announced its plans at the Russia - U.S. Business Forum last summer. Deere received strong cooperation from the Russian Federal government, the Moscow Oblast, and the community of Domodedovo to open the factory within this short time frame.

Allen noted that most of the world's available arable land is already being farmed, that clean water is becoming increasingly scarce, and that infrastructure is needed in many parts of the world to bring crops and forestry materials to market.

" Russia has great advantages in all these areas and the potential to become one of the world's major food-producing regions," Allen said.

At the opening ceremony for the John Deere facility, Allen said Russia 's future holds "truly immense potential as a major provider of the renewable resources so vital to the world's economic and social well-being."

He added that Deere's future plans in Russia are supportive of the Russian government's objectives to boost the output of grains and other renewable resources and to make the farm and forestry sectors more commercially vibrant.

Deere has said that the new Domodedovo facility will include a new EurAsia Parts Distribution Center and manufacture products for the company's two major divisions, including large tractors and combines for use in agriculture and a series of products for use in construction and forestry. Both the parts distribution and manufacturing capabilities will help John Deere serve customers in Russia and throughout the Commonwealth of Independent States and in other nearby markets.

In his remarks at the grand opening, Allen said, Deere first sold products in Russia 100 years ago. Now, he said, in addition to the new Domodedovo location, John Deere has a manufacturing site in Orenburg, offices in St. Petersburg and Moscow and over 70 sales and service locations located in Russia .

John Deere is a world leader in providing advanced products and services for agriculture, forestry, construction, lawn and turf care, landscaping and irrigation. John Deere also provides financial services worldwide and manufactures and markets engines used in heavy equipment. Since it was founded in 1837, the company has extended its heritage of integrity, quality, commitment and innovation around the globe.

SOURCE Deere & Company

Modal title

Also from this source, deere & company raises quarterly dividend.

The Deere & Company (NYSE: DE) Board of Directors today declared a quarterly dividend of $1.35 per share payable November 8, 2023 to stockholders of...

Deere Reports Third Quarter Net Income of $2.978 Billion

Deere & Company (NYSE: DE) reported net income of $2.978 billion for the third quarter ended July 30, 2023, or $10.20 per share, compared with net...

Paper, Forest Products & Containers

Machine Tools, Metalworking and Metallurgy

Agriculture

Corporate Expansion