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Ever wonder why some agents are more successful than other agents? What about how some agents appear to be in control yet others appear to be flying by the seat of their pants? And how some agents don't survive and get out of the insurance business? The answer may be as simple as running your business like a business. We have all heard the quote of the unsuccessful agent who didn't plan to fail but failed to plan. Having a business plan will enable you to measure and monitor those activities that are critical for your success. You wouldn't expect a Fortune 500 company to be run without a well thought-out plan.
Most companies treat their business plan as a working document that they refer to on a regular basis. Insurance agents should be no different. In today's environment, the successful agent needs to be both productive and efficient. A business plan will help you do just that. What is a business plan? What are the key elements to a business plan? When is the business plan complete?

Where You are Going

A business plan is a well thought-out document that addresses all elements of operating a business. A plan tells us where we are going, why we are going there, how to get there and how to know when we have arrived. It is important to note that there are various types of plans that are used by businesses. Plans, such as, marketing, strategic and operational are often used by businesses. For purposes of this article a business plan is a working document that will assist the agent in meeting his goals and objectives.
Most marketing experts recommend writing a business plan at least once a year and updating it monthly. Writing a plan forces you to concentrate on what you're doing right and what needs to be changed. Below are the highlights of what should be in a business plan. There are a number of resources, such as, books, periodicals and the Internet, where you can obtain a more comprehensive study of business plans. A basic business plan should include the following:

Executive Summary
A brief overview of your operation and what you hope to accomplish with your plan. In addition, you can have a mission statement that answers the question, "Why does my company exist?" It explains who, you the agent, exists to serve, for what reason and why. This statement should serve as a theme to your plan.
Market Analysis
Market Conditions
Target Market
Who will buy this product?
What is the potential of the market?
Who are your competitors?
Who is currently serving your target market?
What are the strategies of your competitors?
Who are your competitors? Define by product and sales volume.
Are there any regulatory issues that affect your products?

Product Description
Define your product.
Compare it to the competition's products. The above serve to set the current market conditions. It's important to understand who your competition is and how it compares to your products and services. In today's climate, carriers enter and exit the market on a frequent basis. As a result you may be updating this section on a regular basis.

S.W.O.T. Analysis

Strengths- What are the strengths of your products and services?
Weaknesses- What are the weaknesses of your products and services?
Opportunities- What are the opportunities of your products and services?
Threats- What are the threats to your products and services?
This section evaluates in depth your product and services. It helps you determine the merits of your products and services. It lays the groundwork for the creation of a marketing strategy. When you know the strengths, weaknesses, opportunities and threats of your products and services then you know how and who to market your products and services.

Marketing Strategies
By understanding your product and your competition you should know what marketing strategies will work for you. What markets to penetrate? How will you develop prospects? Will you develop a marketing piece that explains your product and services? Will you develop any strategic alliances? This section serves as to how you are going to market your products and services. Marketing strategies should be based on the strengths of your products.

Sales Strategies
Now that you have an understanding of current market conditions, your products and services, and a marketing strategy, the next step is to forecast sales projections. What are your sales projections by product on a weekly, monthly and annual basis? It is important to be realistic in your projections. Projecting unrealistic numbers can be misleading and frustrating. Be sure to track your actual results compared to your projections on a weekly basis. This is the lifeline of your business. Without sales, there is no income and without income this is no business entity.

Financial Analysis

Income
Project your monthly income. Then compare on a monthly basis. This will be a critical area. If you have created a proper marketing strategy that is achieving sales projection, then you should be in a profitable situation. If you are starting a marketing initiative then initial expenses may be more than income. But over time your income should exceed your expenses.

Expenses
Project all your expenses on a monthly basis: office, marketing, transportations, etc. Then compare your actual expenses on a monthly basis. It is important that your expenses should have a direct relationship with your income projections. Obviously, the key is to spend less than you make.
A presentation given by an agent to a prospect allows the agent "a track to run on." The same holds true for a business plan. If you have a well thought out plan then you have "a track to run on". A business plan is a working document. When any new development occurs, such as a new competitor or increased expenses, then incorporate that into your plan. Once you have created your plan then you can analyze where you have been, where you are now and where you are going. As noted earlier, there are a number of resources that can assist you in writing a quality business plan. The sections mentioned above are highlights of a business plan. If you don't have a business plan I strongly urge you to create one. If you are to become a successful agent for the long-term then always remember to run your business like a business!

Alan Edgin is a national marketing director for the Pinnacle Benefits Group and covers the states of Illinois, Indiana, Iowa, Nebraka, and Wisconsin. He has over 17 years experience in the insurance industry and has held executive positions in sales and marketing.

1. Farmers Life Annuity Plans
2. Minimum Medical Requirements- Preferred Non-Nicotine Plans Only
3. Minimum Medical Requirements- All Policies Except Preferred and Premier

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Blue Vase Report - June 4, 2001

Name	Program Months	Issued Apps	Commisions	Months To Go
A.Tuan	Jan-June	11	$3,596.11	0
E.DeLaGarza	Feb-June	3	$507.84	1
E.Frazier	Jan-June	5	$1,346.76	0