Business Planning Activities

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XXXXXXXXXXX

State Farm Agency

Business Proposal

Huntington Station, NY

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TABLE OF CONTENTS

State Farm Corporate Mission and Vision
XXXXX Agency Vision
Agency Year One Goal
Agency Market Analysis
Market Demographics
Agency Community Relationships Plan
SWOT Analysis
Building an Agency
Marketing Strategy
Goals and Strategies
Retention Strategies
30-60-90 Day Plan
xxxxxxxxx Agency Projection and Results Summary

STATE FARM CORPORATE MISSION AND VISION

State Farm Mission StatementState Farm’s mission is to help people

manage the risks of everyday life, recover from the unexpected, and realize

their dreams.

We are the people who it our business to be like a good neighbor; who built a

premier company by selling and keeping promises through our marketing

partnership; who bring diverse talents and experiences to our work of serving theState Farm customer.

Our success is built on a foundation of shared values – quality service and relationships, mutual trust, integrity and financial strength.

State Farm VisionOur vision for the future is to be the customer’s first and

best choice in the products and services we provide. We will continue to be the leader in the insurance industry and we will become a leader in the financial services arena. Our customers’ needs will determine our path. Our values will guide us.

XXXXXX STATE FARM AGENCY VISION AND MISSION

Our Agency Mission StatementTo implement State Farm’s Mission Statement in our community and to commit to expand the brand trust that has made State Farm Insurance number one in the nation. We will provide our diverse community with our very best level of service and expertise in the insurance and financial arena.

Our Agency VisionTo become the customer’s number one choice for all the insurance, banking and financial services needs, through our commitment and passion to cater the customer’s individual needs, in a professional, knowledgeable and friendly manner while reflecting the same level of respect we share within the office, in every interaction with our customer. We will strive to build the trust around the community to develop long-lasting and profitable relationships with our customers and members of the community alike.

AGENCY YEAR ONE GOALS

The Agent:

The Team:

  1. To implement all aspects of State Farm’ and my Agency’s Vision
  2. To abide by State Farm’s code of conduct, rules and regulations in order to foster an ethical and fair agency environment.
  3. To build a team that shares the same passion, promote their career development to achieve higher level of expertise, enabling us to excel when serving our community.
  4. To establish and maintain relationships with the Huntington Station community and its surrounding, their residents, local businesses and organizations.
  5. To be ranked within the Top 100 New Agent.
  6. To achieve Ambassador Travel Club.

Our Office Facility

  1. Two 2 Full Time Sales Employees, fully licensed in Property & Casualty, Life &Health and State Farm Bank Certified. At least one must be bilingual (English and Spanish)
  2. Employee Handbook will outline the Agency Vision, Expectations, Compensation, Benefits and Rules of Conduct to abide by.
  3. Structured Monthly Sales Goals for each team member
  4. Goals monitoring via Bi-weekly one on one meetings with Team Member, Monthly Performance Evaluation and Annual Review
  5. Compensation to include uncapped commission program to allow employees financial growth and motivation to surpass goals and speed up Agency growth.
  6. Involvement of Team Member in community related activities and local organizations along with Agent.
    • Recognition program for excellence.
  7. Office Hours:

    1. Clean and welcoming environment.
    2. Use of State Farm Signage to promote presence and attract new business
    3. Display of State Farm brand and marketing materials throughout the office
    4. Office layout conducive to discuss customers needs in a private manner while maintaining an open feel environment.
    5. Child-Friendly area to occupy children while parents are taking care of business.
    6. Break room stocked with beverages for customers and employees, and sitting area for a lunch break.
    7. Monday, Wednesday and Friday 8:45 AM to 5:00 PM

      Tuesday and Thursday 8:45 AM to 7:00 PM

      Saturday 9:30 AM to 1:00 PM

      Our Customer Service

      1. * Additional hours for Agent and Team Members by appointment
      2. AGENCY MARKET ANALYSIS

        1. Friendly and Courteous Customer Service, with a family feel approach.
        2. Greet every walk in with a nice smile, make eye contact and acknowledge their presence. If a wait is required, provide customer with expectations and make customer comfortable while is waiting.
        3. In the age of technology, it will be a priority to convey a smile and let the personality come thru the convenience of using technology.
        4. Coach team members and provide feedback while looking to improve customer service skills.
        5. First impression is key, make the customer like us from first interaction.
        6. Agent to greet in person or over the phone all new customers and thank them for their business.
          • At the conclusion of every customer interaction, confirm the customer is satisfied with the help provided.
          • Take customer satisfaction as an opportunity to politely ask for referrals, ask them to share the experience with their family and friends to see if interested in the same level of service.
          • Implement a plan of action after the sale, to maintain customer interaction that will lead to new sales.
        7. Location:

          Huntington Station, 11746

          Primary Market Demographics:

          Number of Agents:  1

          Population:  67,808

          Households:  21,292

          State Farm Household Penetration: 27.2

                      State Farm Auto Penetration:  13.3

                      State Farm Fire Penetration:   21.1

          Average Home Value: 487,900

          Average Income per Household: $96,449

          Population:

          White Population: 50,783
          African-American Population: 5,942
          Hispanic Population: 14,208
          Asian Population: 5,177
          American Indian Population: 613
          Hawaiian Population: 52
          Other Population: 6,933

          Median Age 39.1

          Languages:

          Cars and other vehicles available in 11746:

          1. 70.1% of residents speak English at home.
            16.4% of residents speak Spanish at home
          2. 9.6% of residents speak other Indo-European language at home
          3. 3.2% of residents speak Asian or Pacific Island language at home
            0.8% of residents speak other language at home
          4. Housing units in structures:

            1. No vehicle: 356
            2. 1 vehicle: 3,491
            3. 2 vehicles: 7,819
            4. 3 vehicles: 3,569
            5. 4 vehicles: 1,505
            6. 5+ vehicles: 436
            7. The Huntington Station area has a very diverse population with about 40% of its population being minorities. There is a large Hispanic Community, especially in the Hamlet of Huntington Station where it accounts for the majority of their population. The Hispanic Population represents more than 20 % of the total area population for zip code 11746, based on the last US Census figures. It is projected to continue grow at a dramatic pace over the next 10 years, making it a great servicing opportunity for my Agency and with my office’s vision make a large presence in the fast growing community.

              1. One, detached: 19,659
              2. One, attached: 610
              3. Two: 572
              4. 3 or 4: 327
              5. 5 to 9: 272
              6. 10 to 19: 90
                • 20 to 49: 95
                • 50 or more: 230
                • Mobile homes: 75
              7. The market area also contains a large portion of high income households, which translates to bigger incidence of multiple vehicle households, high value homes that will boost the Fire premiums and big potential for banking and financial services opportunities. The market area’s catastrophic exposure to wind and storm surge is very minimum, ensuring our ability to be able to cater to their Fire needs.

                There is a strong presence of a variety of Small Businesses, with concentrations on major roadways like Jericho Turnpike and the New York Ave/110 Corridor, while there is hardly any industrial presence, making it a great area for State Farm focus for Business Lines.

                AGENCY COMMUNITY RELATIONSHIP PLAN

                In order to achieve short-term and long term Agency goals, it is pivotal to establish and develop strong ties with the community. In addition to leveraging the current relationships I have with people in the community – residents and business people-, by being a former resident and by working in the community as an insurance broker for 6+ years, I plan to join local business organizations, be part of volunteering programs and support local minority events and programs.

                Both Agent and Team Members will be required to actively participate in events, meetings and community activities as a way to strengthen our ties and grow our presence in the area. We will continue with our commitment to build the State Farm brand in our community by identifying ourselves as part of the company as well by giving out remembrance materials when participating in such events.

                Following are the organizations I plan on involving myself and my team:

                AGENCY ANALYSIS

                1. Huntington Chamber of Commerce – Becoming a member will expand networking opportunities for the Agency.
                2. Manor Field Family Center (La Casita)- Involvement with La Casita on a volunteer basis as a way to give back to the community through supporting and becoming an advisor on their bilingual community service programs dedicated to assist families in stabilizing their lives.
                3. St Hugh’s Catholic Church- Enrichment Programs – participates as sponsor on their charity and community events.
                4. Huntington Station Revitalization Coalition NOW – seek participation and involvement in the program. This group of professionals and business owners are actively working on a revitalization program designed to take back Huntington Station.
                5. STRENGTHSStrong Brand NameExcellent Product LineCompetitive PricesExperience in the insurance business and excellent track record as a Sales Team MemberExcellent Customer ServiceExcellent LeadershipBilingual in a Fast Growing Hispanic CommunityConvenient hours and location WEAKNESSESEstablished neighboring agentsLimited recognition as a Financial Services provider
                  OPPORTUNITIES Becoming an advocate for the underserved Hispanic Community (financial literacy and risk management in general).Continued growth of Hispanic Population and their income levelsBeing the 1st HispanicState Farm Agent in my market area. 2 Large Independent Insurance Agencies, with large participation in the Hispanic community moved out of the area because of relocation and sale of books of business due to retirement.Large presence of Main street type business in the market area.Huntington Station revitalization plan is underway with the addition of multi-family housing projects. THREATS / COMPETITOR ANALYSISInternet Competition Increased marketing from our mainCompetitors, focusing on priceIncreased market share for sub-standard companies and IndependentsAllstate re-opened market for New Business Fire in my area.

                  BUILDING THE AGENCY

                  Capital InvestmentMake sure to put own info in here

                  The initial Capital Investment needed to cover Startup Expenses for my Agency Is $XXXXXXX. The full cost of those expenses will be covered by personal funds.

                  A separate fund in the amount of $25,000 will be available for use to cover any unforeseen expenses or to make payments in advanced prior to receiving income.

                  In addition to those funds, access to a Line of Credit will be available up to $75,000 at an average interest rate of 6%. Operating Loan Expenses will be adjusted accordingly, based on the portion of the credit line used to cover interest and loan repayment.

                  Our monthly household expenses are covered by my husband’s Retirement Income and his Engineering Company Income, providing me with the ability to reinvest profits into the Agency, stimulate Agency growth and fulfill my commitment for financial success.

                  Agency Office Management Plan

                  Recruiting Plan

                  The Agency will employ 2 Full Time Sales Team Members on the first year- recruitment and licensing (P& C and Life and Health) will be completed prior to Agency opening. State Farm Bank Certification will be completed within the first month of opening.

                  I will rely on my personal and business relationships in the community, postings of job opportunities at Insurance Schools and Internet Job Sites. I will take advantage of my experiences and connections to recruit goal driven and motivates candidates. The selection process will account for the following skills: Sales-oriented, interpersonal skills, work ethic, multi-tasking abilities, computer proficiency, leadership and communication. At least one team member will be bilingual and candidates must have some prior work experience in the insurance or financial services industry.

                  On year 2, a Part Time service oriented employee will be added to the team.

                  Agency Team Member Compensation Package

                  Each Licensed Team Member will receive a base salary of $40,000 plus commission. The Commission Structure will be geared towards the Agency

                  Production Goals.

                  Bonus Structure

                  Auto & Fire 3% of written premium

                  Life 10% of total premium

                  Health 15% of total premium

                  Automobile Loan $50 for each loan booked or $10 for each application if declined or approved and not taken.

                  Credit Card $20 for each card approved or $10 for each application if declined.

                  Mortgages $100 for each mortgage closed

                  CD $15 for each one

                  Mutual Fund Referral $15 each referral

                  There will be minimum monthly production requirements in place for each Sales Person in order to qualify for a bonus:

                  20 Auto and Fire policies + 4 Financial Services

                  The average Monthly Commission per Sales Team Member is calculated at $1000. However, the Bonus Structure is designed so each Team Member has an unlimited income potential.

                  From time to time, I will run Promotions on Specific Products as a way to increase sales. The promotion incentives could be monetary, paid time off, in the form of gift certificates (dining, beauty, etc) or a combination there of, depending of what motivates the Team Members the most.

                  Examples of incentives are illustrated below:

                  Team Member Training Plan

                  1. Afternoon of Beauty: Team Member will receive a Mani& Pedi Gift Certificate and gets to leave the office at 2PM
                  2. Lunch with a Friend: Gift certificate for 2 to have lunch at a local Restaurant with a paid 3 hour lunch break.
                  3. State Farm Bank Gift Card.
                  4. I will have a Structured Training Plan for each Team Member based on their Job Description.

                    The Training below is geared to Sales Team Members:

                    A similar training plan will be developed for Service Tam Members, with emphasis in the daily operations of the Agency and Customer Relations.

                    1. Introduction to the Agency thru a Coaching Session explaining Agency Mission, Vision and Nature of the Business, so Team Member can fully understand their role and expectations.
                    2. Completion of State Farm Modules to become licensed to sell insurance products.
                    3. Reinforcement training provided by Agent to get acquainted with State Farm Management System, Quoting and Application Process.
                    4. Take advantage of Modeling Behavior by allowing Team Member participate in Agent’s interaction with customers, to observe, retain and replicate.
                    5. Program a visit for the Team Member to a successful State Farm Agent’s Office, to immerse them for a full day in a fast pace operating Agency, to witness the dynamics of their Sales Team Members and to understand their success.
                    6. Performance Management

                      Each Team Member will have defined Production Goals and will follow up closely on the achievement of those goals. For that I will have in place a Performance Management System, which will track Team Members Production, their development and provide feedback towards improvement.

                      The system will incorporate the following:

                      Team Meetings

                      1. Weekly meeting:
                        1. Review weekly production and go over hot prospects.
                        2. Provide feedback and assistance with ideas or pivots
                        3. Review of everyday marketing activities in place used to generate sales: call out, outside prospecting, internet responses, referrals.
                        4. Uncover training deficiencies and areas where help is needed.
                      2. Monthly Review (beginning of the month):
                        • 3-6-9 Month Review: Quarterly review for new hires to analyze progress, performance vs. expectations and accountability. Since the only way to accomplish Agency Goals is by each Team Member performing at the level of expectation, Agent will rely on these objective reviews to identify under-performers and determine termination of employment.
                        • Yearly Performance Appraisal: This yearly performance review is designed to:
                      3. In addition to the individual meetings already mentioned associated with tracking performance, there will be meetings with the participation of the entire team:

                        Team Communication

                        1. Power Sessions – Short gatherings (15-20 minutes long) will be held at least once a week, to discuss new procedures, daily goals, success stories, customer feedback or address handling on a relevant topic (e.g. CAT claims). Discuss community news that may lead to new marketing approach and Competitors news to uncover opportunities in the marketplace. This gathering will also allow Team Members to make recommendations or voice concerns and will allow Agent to coach on techniques that are working for offering and selling some products/services.
                        2. Annual Meeting – At the end of the year we will hold an Annual Meeting with the participation of all employees. This meeting will address:
                          1. Vision and Direction of the Agency
                          2. Current Year Results
                          3. Upcoming Year Business Plan and Sales Goals
                          4. Marketing Approach
                        3. I will communicate the Agency Mission and Vision to all Team Members, post them in a visible area of the office and will lead my team by example and I will maintain an Open Door Policy.

                          MARKETING STRATEGY

                          I will utilize the DIRT concept as my Agency Marketing Strategy:

                          Direct Mail

                          I will utilize Prospector + Direct Mail Program by allocating $3600 per month to buy 5000 leads thru the 6 touch bundle program at a rate of $0.72. The current response ratio of that program is 1.5%, which will generate 75 leads to the Agency, and a closing ratio of approximately 20% will generate 15 raw new autos. Agent and Team members will multi-line customers generating additional sales in Fire, Life, Health, Bank and Mutual Funds.

                          Internet Leads

                          To take advantage of today’s trend of online shoppers, 150 Internet Leads will be bought per month at a subsidized rate of $7 per lead ($1050 per month). Leads will be purchased from NetQuote.com and Insureme.com and assuming a success ratio of 4%, 6 new auto policies will be generated each month. The multi-line selling strategy will be used to generate sales of additional lines of insurance and financial services.

                          Referrals

                          Conveying our vision to our customers from day one is key to establish and develop relationships with our customers. We will politely ask our customers to share their experience with their friends and family and refer us to them so they can benefit from the same level of service. A Referral System will be established to motivate and reward the person giving the referral with a $10 Gas or Coffee Shop Gift Cards. In addition, we will continue to strengthen the relationship with professionals, organizations and members of the community thru our networking approach to guarantee a continuous influx of new referrals. Statistics show referrals generate about 27% of raw new auto, which translates in about 11 new auto policies.

                          Telemarketing

                          We will designate Outgoing Calls time in our office schedule to each Team Member to make cold calls. Team Members and Agent will be calling 50 prospects each week. This strategy will supplement Prospector + Direct Mail by calling in between mailings those leads with available phone numbers and that are not part of the “Do Not Call” List. In addition to those lists, the Agent with the help of the Team Members will generate additional lists: Commercial Autos (writing down name and phone number as they vehicles are spotted), List of Local Businesses.

                          Cold Calls success ratio is estimated at 10% and a closing ratio of 20%, generating 12 raw new autos for the Agency.

                          Social Media

                          Agency will have its own Facebook Page, and will consider other innovating social platforms as they become available. Agent and Team Members will maintain a LinkedIn profile.

                          Community Sponsorship

                          Agency will allocate $1000 per year of the budget to cover sponsorships associated to our involvement in volunteering activities in the community.

                          The Agency will:

                          These types of events will allow our Agency to give back to the community.

                            1. Sponsor Youth sports to increase the branding in the community among young families.
                            2. Participate in Festivals taking place in the community
                            3. Reach out to St Hugh’s Catholic Church and other religious organizations in the area to host an Educational Session in Insurance and Financial Services, targeting the Hispanic Community in need of this type of literacy.
                          1. Newspaper

                            Bilingual Newspaper Advertisement, by publishing ads twice a month. The total cost will be $3600 per year.

                            In addition to all the marketing strategies mentioned before, Agent and Team Members will make the State Farm brand part of their everyday life, will create awareness about the Agency while interacting with people in the community and most importantly will show our fine interpersonal skills in every interaction as a way to sell ourselves and attract new customers.

                            Marketing Budget

                            Marketing Annual Budget
                            Direct Mail $43,200
                            Internet Leads $12,600
                            Referral Program $2,400
                            Social Sponsorship $1,000
                            Newspaper $3,600
                            Total $62,800

                            GOALS AND STRATEGY

                            Product Monthly Goal Agent Team Member # 1 Team Member # 2 Annual Goal
                            Auto 40 10 15 15 480 / $464,680
                            Fire 40 12 14 14 480 / $720,000
                            Life 9 5 2 2 108 / $54,000
                            Health 5 1 2 2 60 / $36,000
                            Loans / Credit Cards 12 2 5 5 144
                            Deposits 2 0 1 1 24
                            Mutual Funds 3 1 1 referral 1 referral 36

                            Auto Goals and Strategy

                            Total yearly goals of 480 policies

                            Private Passenger – 360

                            Commercial – 24

                            Motorcycle/RV Policies – 12

                            Marketing Strategies

                            Fire Goals and Strategy

                            1. Prospector + Direct Mail 6 touch bundle plus Cold Call in between mailings to those with available phone numbers.
                            2. Set up plan for immediate response to Internet Leads. One licensing permits, each Team Members will be provided with a laptop for after hour responses. In the meantime, Agent will take care of after-hours leads.
                            3. Promote referral program and provide every new client with a Referral Business Card Holder and some business cards. Referral Business card holder is available in the State Farm Catalog.
                            4. Bilingual newspaper paid advertising – circulation of these newspapers is free and very popular in the Hispanic Community.
                            5. Outside Prospecting to introduce ourselves and the office to the local business –bring a remembrance item with our information imprinted in addition to business card.
                            6. Target Commercial Auto Opportunities – gather commercial vehicle contact information of vehicles on the road for future solicitation, visit gathering places for Contractors like Delis, Mower Shops, Building Supplies seeking new opportunities to quote.
                              • Promote Insurance and Financial Reviews as ways to uncover additional needs.
                              • Review Multi-Line opportunity with every interaction
                            7. Total yearly goals of 480 policies

                              Homeowners- 120

                              Renters-120

                              PAP and PLUPS -120

                              BOPs, Contractors, CLUPs, Workers Comp and DBL – 120

                              Marketing Strategies

                              Life goals and Strategy

                              1. Prospector + Direct Mail.
                              2. Cross-selling with auto products at point of underwriting.
                              3. Visiting local condominium associations and rental communities as part of the approach to grow the Condo and Renters production.
                              4. Strengthen existing business relationships with Realtors and Mortgage Brokers and develop new relationships with professionals in the area.
                              5. Referral Program
                              6. Establish a Business Relationship with the members of the Huntington Station Revitalization Program, in charge of the developing of a new multi-family complex in the area.
                              7. Total yearly goals of 108 policies

                                Goal of $54,000 in premium (based on an average premium of $500)

                                Term life policies-64

                                Whole Life policies- 24

                                Universal Life-20

                                Marketing Strategies

                                Health Products Goals and Strategy

                                1. Internet Leads
                                2. Life Marketing and 3 Month Life Pivot Follow Up to every new client
                                3. Community Educational Session in Insurance and Financial Services in the Hispanic Community will generate new Life Insurance Leads. Seminar will be used to educate customers on our products.
                                4. Multi-line approach
                                5. Promote Insurance and Financial Reviews to uncover additional needs
                                6. Referral system will also be used.
                                  • Offer of additional riders at the point of sale like GIO (Guaranteed Insurability Option) and explanation of Conversion Credits to generate future sales.
                                7. Total Yearly goals of 60 policies with a yearly premium of $ 36,000

                                  Disability Income-18

                                  Hospital Income-24

                                  Individual Credit Disability- 18

                                  Marketing Strategy

                                  Bank Product Goals and Strategy

                                  1. Multi-line pivots
                                  2. Uncover disability needs thru Insurance and Financial Reviews
                                  3. Offer Hospital Income at the time of sale of Motorcycle Policies as a way to Supplement Personal Injury Protection
                                  4. Offer Individual credit Disability with every vehicle loan Booking
                                  5. Outgoing Calls to Homeowners with Mortgage – for Mortgage Disability Protection
                                  6. Health Marketing and 3 Month Health Pivot Follow Up to every new client
                                  7. Total Yearly goals of 168 bookings

                                    Vehicle Loans- 60

                                    Credit Cards- 80

                                    Mortgages-4

                                    Certificate of Deposits/ Checking / Savings- 24

                                    Marketing Strategies

                                    Mutual Fund Goals and Strategies

                                    1. Direct Mail
                                    2. Vehicle loan pivot at point of Auto Sale for new clients and for existing clients with every change of vehicle Transaction and Total Loss Claim. Rate and Maturity date to be documented on ABS. This will create refinance opportunities down the road.
                                    3. Outgoing Calls to Policyholders with existing loans.
                                    4. Inform leaseholder about our vehicle loan options in the event they consider a lease buy out.
                                    5. When interacting with Howe-owners inquire about their current rate and mention about State Farm Bank Mortgages. Many Homeowners are still paying higher rates or are in need of consolidating debt into one fixed payment
                                    6. Review Bank Products offerings when completing Insurance and Financial Reviews.
                                      • With every payment opportunity offer SF Bank Visa cards making emphasis in convenience and rewards.
                                      • For certain instances where Paid in Full premiums are required (certain Contractors, New Home Purchases) offer State Farm Bank VISA card as a way to finance those premiums taking advantage of their introductory % interest for the first year.
                                    7. Total yearly goals of 36 new bookings

                                      Average account size of $4000.00

                                      IRA Accounts / Coverdell Accounts- 28

                                      Rollovers- 8

                                      Marketing Strategies

                                      Retention Strategies

                                      1. Direct Mail
                                      2. Insurance and Financial Reviews
                                      3. New leads as a result of the Educational Session in the Hispanic Community
                                      4. Maximize IRA pivots in the first quarter of the year for prior year contributions.
                                      5. Inquire about employment history to uncover possible 401k rollovers
                                      6. Target self-employed customers or the one working without receiving 401k benefits and explain the importance of setting up their own retirement fund
                                        • Outgoing calls to young families with small children to review needs for a Coverdell
                                        • Establish relationship with local small businesses – and offer the opportunity to manage their employee’s retirement accounts.
                                      7. 90 Days Before Opening Tasks:

                                        1. Exceptional Customer Service
                                        2. Following up with a courtesy call to every new customer
                                        3. Send Welcome Letter and create a 3 Month Follow Up for every new customer
                                        4. Develop a Multi-Line Book of Business
                                        5. Set up Customers on Recurring Monthly Accounts to avoid policy cancellations.
                                        6. Be aware of customer’s life event and acknowledge them by sending the appropriate card.
                                          • Promote Insurance and Financial Review as a way to strengthen relationship with the customer.
                                        7. 60 Days Before Opening Tasks:

                                          1. Continue Agent Training Program
                                          2. Find Office Location and Sign Long-Term Lease
                                          3. Find out about any town permits or ordinances that apply
                                          4. Register business location with any applicable state agency
                                          5. Contact Utility Companies to schedule hook up date after lease commencement
                                          6. Order Signage in compliance with town ordinance
                                            • Shop for office furniture and supplies
                                            • Develop Compensation Plan and Employee Handbook
                                            • Start Recruiting Process for Team Members
                                            • Complete the process of becoming a member of local organizations
                                          7. 30 Days Before Opening Tasks:

                                            1. Continue Agent Training Program
                                            2. Finalize Hiring of Team Members and schedule licensing classes for additional licenses required ( I will be hiring employees with experience and at least one license)
                                            3. Schedule Team Member Training, review expectations and assign marketing responsibilities. Each Team Member to gather 200 leads. Those leads will be contacted within the first 30 days of opening.
                                            4. Order promotional material to distribute in the area prior to opening
                                            5. 30 Days after Opening

                                              1. Assign Team Member to another State Farm Agent’s office to get acquainted with the operation
                                              2. Continue to coach and develop each Team Member
                                              3. Take possession of the office space, complete renovations and schedule furniture delivery.
                                              4. Network with the community
                                              5. Prepare for the Grand Opening
                                              6. 60 Days after Opening

                                                1. Review Agency production vs. goals
                                                2. Identify areas where additional training is needed
                                                3. Begin Weekly Meetings with Team Members to work on strategies towards achieving their individual goals
                                                4. Maintain constant communication with Sales Leader, to monitor the development of the agency and get feedback.
                                                5. Visit all neighboring business to introduce myself and the Agency
                                                6. Continue networking to generate new leads.
                                                  • Execute marketing strategies. At this point all Marketing Strategies are in place and Direct Mail should be generating responses after first mailing.
                                                7. 90 Days after Opening

                                                  1. Continue monitoring Agency Production
                                                  2. Continue monitoring Team Member Development
                                                  3. Continue Weekly meetings and Monthly Meetings
                                                  4. Track expenses and compare to budget
                                                  5. Continue networking and Community Involvement
                                                  6. Year at a glance, 1-3

                                                    1. Continue monitoring Agency Production
                                                    2. Continue monitoring Team Member Development
                                                    3. Continue Weekly meetings and Monthly Meetings
                                                    4. Analyze Income and Expense trends vs. planned goals
                                                    5. Complete 1st Quarter Analysis and adjust Business Plan as needed based on actual results
                                                    6. Have 3 Month Review with each team Member.
                                                      • Continue networking and Community Involvement
                                                    7. Candidate:

                                                      Posting Number: N/A

                                                      Scenario: Huntington Station BP

                                                      Location: Huntington Station, NY

                                                      Income

                                                      Premium Market Type: High Prem Market

                                                      Year 1Year 2Year 3

                                                      Auto Fire Life Health

                                                      Bank Loans Bank Deposits Mutual Funds Other

                                                      Expenses

                                                      Year 1Year 2Year 3

                                                      Startup Payroll Fixed

                                                      Discretionary

                                                      This is proprietary information owned by State Farm® and it may be lawfully used only as authorized by appropriate State Farm management. IMPORTANT NOTE: This illustration is

                                                      designed to help you understand the compensation structure of a State Farm independent contractor agent and how production, in conjuction with managing expenses, can impact compensation amounts. An independent contractor agent’s actual results will vary and figures provided herein must not be relied upon as fact or as a guarantee of any future compensation amount. Figures provided are for illustrative purposes only. This is not intended to modify, amend, supersede, or replace terms of the State Farm Agent’s Agreement, schedules of payments, or amendments (collectively “Documents”) thereto. It is also not intended to substitute for a complete review and understanding of those Documents.

                                                      Year at a glance, 1-3 1

                                                      Year at a glance, 4-6

                                                      Candidate:

                                                      Posting Number: N/A

                                                      Scenario: Huntington Station BP

                                                      Location: Huntington Station, NY

                                                      Income

                                                      Premium Market Type: High Prem Market

                                                      Year 4Year 5Year 6

                                                      Auto Fire Life Health

                                                      Bank Loans Bank Deposits Mutual Funds Other

                                                      Expenses

                                                      Year 4Year 5Year 6

                                                      Startup Payroll Fixed

                                                      Discretionary

                                                      This is proprietary information owned by State Farm® and it may be lawfully used only as authorized by appropriate State Farm management. IMPORTANT NOTE: This illustration is

                                                      designed to help you understand the compensation structure of a State Farm independent contractor agent and how production, in conjuction with managing expenses, can impact compensation amounts. An independent contractor agent’s actual results will vary and figures provided herein must not be relied upon as fact or as a guarantee of any future compensation amount. Figures provided are for illustrative purposes only. This is not intended to modify, amend, supersede, or replace terms of the State Farm Agent’s Agreement, schedules of payments, or amendments (collectively “Documents”) thereto. It is also not intended to substitute for a complete review and understanding of those Documents.

                                                      Year at a glance, 4-6 2

                                                      Trends

                                                      Candidate:

                                                      Posting Number: N/A

                                                      Scenario: Huntington Station BP

                                                      Location: Huntington Station, NY

                                                      Annual Income

                                                      Premium Market Type: High Prem Market

                                                      Annual Expenses

                                                      Year

                                                      Year

                                                      This is proprietary information owned by State Farm® and it may be lawfully used only as authorized by appropriate State Farm management. IMPORTANT NOTE: This illustration is

                                                      designed to help you understand the compensation structure of a State Farm independent contractor agent and how production, in conjuction with managing expenses, can impact compensation amounts. An independent contractor agent’s actual results will vary and figures provided herein must not be relied upon as fact or as a guarantee of any future compensation amount. Figures provided are for illustrative purposes only. This is not intended to modify, amend, supersede, or replace terms of the State Farm Agent’s Agreement, schedules of payments, or amendments (collectively “Documents”) thereto. It is also not intended to substitute for a complete review and understanding of those Documents.

                                                      Trends 3

                                                      Summary of Income Projections

                                                      Candidate:

                                                      Posting Number: N/A

                                                      Scenario: Huntington Station BP

                                                      Location: Huntington Station, NY

                                                      Premium Market Type: High Prem Market

                                                      Annual Forecasted Income

                                                        Year 1 Year 2 Year 3 Year 4 Year 5 Year 6
                                                      Production & Service Compensation $159,468 $294,659 $386,047 $530,766 $671,568 $820,786
                                                      Premium Builder Payments $126,500 $121,000 $92,500 $62,500 $32,500 $2,500
                                                      Scorecard/Signing Bonus $18,000 $37,000 $28,000 $32,000 $35,000 $38,000
                                                      Total Expenses $274,188 $293,240 $391,450 $404,290 $454,387 $471,427
                                                      Total Net Income $29,780 $159,419 $115,097 $220,976 $284,681 $389,859

                                                      Monthly Projections*Bonus income not included

                                                        Year 1 Monthly Year 2 Monthly Year 3 Monthly Year 4 Monthly Year 5 Monthly Year 6 Monthly
                                                      Total Compensation $23,831 $34,638 $39,879 $49,439 $58,672 $68,607
                                                      Total Expenses $22,849 $24,437 $32,621 $33,691 $37,866 $39,286
                                                      Total Net Income $982 $10,201 $7,258 $15,748 $20,806 $29,321

                                                      This is proprietary information owned by State Farm® and it may be lawfully used only as authorized by appropriate State Farm management. IMPORTANT NOTE: This illustration is

                                                      designed to help you understand the compensation structure of a State Farm independent contractor agent and how production, in conjuction with managing expenses, can impact compensation amounts. An independent contractor agent’s actual results will vary and figures provided herein must not be relied upon as fact or as a guarantee of any future compensation amount. Figures provided are for

                                                      illustrative purposes only. This is not intended to modify, amend, supersede, or replace terms of the State Farm Agent’s Agreement, schedules of payments, or amendments (collectively “DocumentSsu”)mmary of Income Projections 4

                                                      thereto. It is also not intended to substitute for a complete review and understanding of those Documents.

                                                      Summary of Production Projections

                                                      Candidate:

                                                      Posting Number: N/A

                                                      Scenario: Huntington Station BP

                                                      Location: Huntington Station, NY

                                                      Premium Market Type: High Prem Market

                                                      Average Monthly New Policy Production

                                                        Year 1 Monthly Year 2 Monthly Year 3 Monthly Year 4 Monthly Year 5 Monthly Year 6 Monthly
                                                      Auto 40 50 65 70 78 80
                                                      Fire 40 45 60 65 65 75
                                                      Life 9 10 10 11 11 12
                                                      Health 5 5 6 6 6 7
                                                      Bank Loans 12 12 13 14 15 16
                                                      Bank Deposits 2 2 2 2 3 3
                                                      Mutual Funds 3 3 3 3 4 4
                                                      Monthly Production Total 111 127 159 171 182 197

                                                      This is proprietary information owned by State Farm® and it may be lawfully used only as authorized by appropriate State Farm management. IMPORTANT NOTE: This illustration is

                                                      designed to help you understand the compensation structure of a State Farm independent contractor agent and how production, in conjuction with managing expenses, can impact compensation amounts. An independent contractor agent’s actual results will vary and figures provided herein must not be relied upon as fact or as a guarantee of any future compensation amount. Figures provided are for

                                                      illustrative purposes only. This is not intended to modify, amend, supersede, or replace terms of the State Farm Agent’s Agreement, schedules of payments, or amendments (collectively “DocumeSnumtsm”)ary of Production Projections 5

                                                      thereto. It is also not intended to substitute for a complete review and understanding of those Documents.

                                                      Book of Business

                                                      Candidate:

                                                      Posting Number: N/A

                                                      Scenario: Huntington Station BP

                                                      Location: Huntington Station, NY

                                                      Auto

                                                      Premium Market Type: High Prem Market

                                                        Year 1 Year 2 Year 3 Year 4 Year 5 Year 6
                                                      Auto Premium $454,680 $1,078,197 $1,804,946 $2,520,775 $3,229,657 $3,874,052
                                                      Assigned Auto Policies 0 0 0 0 0 0
                                                      Personally Produced Auto Policies 480 1,004 1,624 2,206 2,791 3,307
                                                      Auto Policies in Force 480 1,004 1,624 2,206 2,791 3,307

                                                      Fire

                                                        Year 1 Year 2 Year 3 Year 4 Year 5 Year 6
                                                      Fire Premium $720,000 $1,501,200 $2,521,152 $3,590,305 $4,616,693 $5,782,026
                                                      Assigned Fire Policies 0 0 0 0 0 0
                                                      Personally Produced Fire Policies 480 1,001 1,681 2,394 3,078 3,855
                                                      Fire Policies in Force 480 1,001 1,681 2,394 3,078 3,855

                                                      This is proprietary information owned by State Farm® and it may be lawfully used only as authorized by appropriate State Farm management. IMPORTANT NOTE: This illustration is

                                                      designed to help you understand the compensation structure of a State Farm independent contractor agent and how production, in conjuction with managing expenses, can impact compensation amounts. An independent contractor agent’s actual results will vary and figures provided herein must not be relied upon as fact or as a guarantee of any future compensation amount. Figures provided are for illustrative purposes only. This is not intended to modify, amend, supersede, or replace terms of the State Farm Agent’s Agreement, schedules of payments, or amendments (collectively “Documents”) thereto. It is also not intended to substitute for a complete review and understanding of those Documents.

                                                      Book of Business 6

                                                      Summary of Production Inputs

                                                      Candidate:

                                                      Posting Number: N/A

                                                      Scenario: Huntington Station BP

                                                      Location: Huntington Station, NY

                                                      Premium

                                                      Premium Market Type: High Prem Market

                                                      Assignment

                                                      Assigned+Renewal Policies # Policies
                                                      Auto 0
                                                      Fire 0

                                                      Bonus

                                                      Signed Bonus Amount
                                                      Year 1 $18,000
                                                      Year 2 $12,000

                                                      Average Monthly New Policy Production

                                                      Personally Produced Year 1 Monthly Year 2 Monthly Year 3 Monthly Year 4 Monthly Year 5 Monthly Year 6 Monthly
                                                      Auto 40 50 65 70 78 80
                                                      Fire 40 45 60 65 65 75
                                                      Life 9 10 10 11 11 12
                                                      Health 5 5 6 6 6 7
                                                      Bank Loans 12 12 13 14 15 16
                                                      Bank Deposits 2 2 2 2 3 3
                                                      Mutual Funds 3 3 3 3 4 4
                                                      Lapse/Cancellation Rate Year 1 Monthly Year 2 Monthly Year 3 Monthly Year 4 Monthly Year 5 Monthly Year 6 Monthly
                                                      Auto 15.9% 15.9% 15.9% 15.9% 15.9% 15.9%
                                                      Fire 4% 4% 4% 4% 4% 4%
                                                      Semi Monthly Variable Compensation Year 1 Monthly Year 2 Monthly Year 3 Monthly Year 4 Monthly Year 5 Monthly Year 6 Monthly
                                                      Auto 2% 2% 0% 0% 0% 0%
                                                      Fire 2% 2% 0% 0% 0% 0%

                                                      This is proprietary information owned by State Farm® and it may be lawfully used only as authorized by appropriate State Farm management. IMPORTANT NOTE: This illustration is

                                                      designed to help you understand the compensation structure of a State Farm independent contractor agent and how production, in conjuction with managing expenses, can impact compensation amounts. An independent contractor agent’s actual results will vary and figures provided herein must not be relied upon as fact or as a guarantee of any future compensation amount. Figures provided are for

                                                      illustrative purposes only. This is not intended to modify, amend, supersede, or replace terms of the State Farm Agent’s Agreement, schedules of payments, or amendments (collectively “DocumentsS”)ummary of Production Inputs 7

                                                      thereto. It is also not intended to substitute for a complete review and understanding of those Documents.

                                                      Summary of Expense Inputs

                                                      Candidate:

                                                      Posting Number: N/A

                                                      Scenario: Huntington Station BP

                                                      Location: Huntington Station, NY

                                                      Premium Market Type: High Prem Market

                                                      Estimated Recurring Annual Expenses

                                                      Payroll Expenses Startup Year 1 Year 2 Year 3 Year 4 Year 5 Year 6
                                                      Payroll   $104,000 $135,000 $200,000 $200,000 $230,000 $230,000
                                                      Team Member Recruiting   $0 $0 $0 $0 $0 $0
                                                      Team Member Benefits   $12,000 $12,000 $16,000 $16,000 $24,000 $24,000
                                                      Payroll Taxes & Fees   $8,320 $10,800 $16,000 $16,000 $18,400 $18,400
                                                      Agent Group Benefits   $1,200 $1,200 $1,200 $1,200 $1,200 $1,200
                                                      Self-Employment Taxes   $2,000 $0 $0 $0 $0 $0
                                                      Professional Development & Dues $350 $2,000 $500 $750 $750 $1,000 $1,000
                                                      Miscellaneous $0 $0 $0 $0 $0 $0 $0
                                                      Fixed Expenses Startup Year 1 Year 2 Year 3 Year 4 Year 5 Year 6
                                                      Rent/Mortgage $7,500 $30,000 $30,000 $30,900 $30,900 $31,827 $31,827
                                                      Utilities $500 $3,900 $4,000 $4,000 $4,000 $4,000 $4,000
                                                      Business Insurance $0 $2,018 $2,000 $2,000 $2,000 $2,000 $2,000
                                                      Business Operating Loan Payment(s)   $0 $0 $0 $0 $0 $0
                                                      Business Credit Card(s) Payments   $0 $0 $0 $0 $0 $0
                                                      Miscellaneous $2,500 $0 $0 $1,500 $1,500 $1,500 $1,500
                                                      Discretionary Expenses Startup Year 1 Year 2 Year 3 Year 4 Year 5 Year 6
                                                      Furniture/Equipment $5,500 $0 $2,500 $2,500 $2,500 $2,500 $2,500
                                                      Equipment Fees $2,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000
                                                      Meals & Entertainment $0 $3,600 $3,600 $3,600 $3,600 $3,600 $3,600
                                                      Office Supplies $500 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000
                                                      Advertising & Marketing $500 $62,800 $75,640 $97,000 $109,840 $118,360 $135,400
                                                      Maintenance/Repair   $0 $0 $0 $0 $0 $0
                                                      Vehicle   $10,000 $10,000 $10,000 $10,000 $10,000 $10,000
                                                      Donations   $0 $0 $0 $0 $0 $0
                                                      Miscellaneous $7,000 $0 $0 $0 $0 $0 $0
                                                      Monthly Average $2,195 $20,653 $24,436 $32,620 $33,690 $37,865 $39,285
                                                      Annual Total $26,350 $247,838 $293,240 $391,450 $404,290 $454,387 $471,427



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