Research Your Market Before Writing a Business Plan
As an entrepreneur there are a many steps to consider before you set up shop. It’s important to do your research before you invest all your time and savings in your own business.
The first thing you’ll need to do is to do some product and market research. It’s not enough for something to be trending, because trends are fleeting and you need to make sure that your product will stand the test of time, or that you are prepared to adapt and change with the latest trends. Just because the whole world is going gluten free and you make the best gluten free muffins in your office, doesn’t mean that this will translate to a successful business. Everyone loves a free muffin, gluten free or not, but what happens when you start charging for that muffin? Will people still sing it’s praises when it comes with a price tag?
Your gluten free muffin business may just be the next big thing, but you need to do the research to make sure that your business will profit. Do you even know how much money goes into making one muffin? And then you have to put a price on the time it took you to bake it, package it, deliver it or ship it. Going independent is the biggest, riskiest, investment of your life. Don’t go into it unprepared.
It’s the same with any business endeavor. Passion is important, but it will only get you so far. Having a business plan written is crucial. You have to be organized and know what the market is doing within your business. And more importantly, you need to know how to get in touch with your target customers and potential investors!
Writing a business plan will also force you to be specific about your business goals. It forces you to consider the industry you are in and what it is doing today and what the future holds. It will help you put into words why your product or service is important and how you expect to sell, distribute and support your business.
If you don’t know the answer to the points we’ve mentioned, then you are not ready to write your business plan. It’s time to do some more market research and homework on your industry. Meet with some key people, ask for advice. Then come back when you’re ready and start creating your plan. Trust us, you’ll thank us later!
Join Colorado’s Largest Network of Independent Insurance Brokers
Every entrepreneur and independent business owner needs a network of support. We want to be that support system for you. We’ll keep you up to date on the latest industry news, as well as give you the skills to make it on your own. Having a network of independent business owners and entrepreneurs at your fingertips is invaluable. Even reaching out to your network to ask questions about your industry or get tips and tricks to writing a good business plan can make a huge difference to the success of your business. There is strength in numbers and at AAI you are “independent, yet not alone”.
If you are interested in making the jump from captive agent to independent agent, we provide a turnkey business model for a captive insurance agency to transition to the independent world; or for an existing independent agency a platform to increased carrier representation and revenue while removing carrier production requirements.
Send us a request for more information, and let’s talk about setting you up as an independent agent with AAI.
Affordable American Insurance
2090 E. 104th Avenue, Suite 300
Thornton, CO 80233