Why Does Your Agency Need a Business Plan?

 In Becoming an independent insurance agent, Opening an agency with AAI, Tips for Independent Insurance Agents

A successful insurance agency doesn’t happen by accident. One of the first steps you need to take, is to create a solid business plan.

Starting an Insurance Agency? You’ll Need a Business Plan

Sometimes we put all our effort into doing many different things, executing them. But we don’t spend nearly enough time thinking these things through, planning and documenting them. This is one of those approaches that are sure to have a breakpoint at any given moment. If you’re going to make an investment, you’ll need a well-structured business plan that can support that venture and can help you foresee your degree of success.

The Reason Behind Your Business Plan

Starting an Insurance Agency? You'll Need a Business Plan

A business plan will serve as a solid base to get your business on the right track.

It might sound like a lot of work, but the truth is that this document can be a real lifesaver. It’s a great tool to secure financing and more. Not only will it give you peace of mind, it will help you do the same for your stakeholders. A well-defined business plan will help you define clear objectives, assign resources, improve your process, define a proper communication channel with your team, and get you on the way to grow your independent insurance agency.

Keep in mind that creating a business plan is not one of those things you can just check off your to-do list. It’s a live document that is meant to be reviewed, reevaluated, and consulted in order to stick to your business goals and achieve the desired results. Even businesses that have existed for a while in the market can see the benefit of creating a good business plan, so don’t shy away from this idea. Embrace it.

Basics Elements of a Business Plan

Creating a business plan might feel like a daunting task, but it doesn’t have to be. There are some key elements that definitely need to be included in your plan:

  • Executive Summary
  • Company Description
  • Products
  • Market Analysis
  • Marketing Strategy
  • Financial Plan
  • Organizational Structure & Management

 

If you’ve dreamed of starting your own business in the independent insurance industry, this might be the time. At AAI, we take care of our agencies like family and provide them with tools to help them pave their way to success. Want to join our AAI family? Your own agency is just one click away.

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