3 Reasons to Write an Annual Business Plan for Your Agency
Posted by: Agent Hub
Many millennials and younger entrepreneurs view traditional business methods as outdated and no longer necessary. However, one method is still just as important as ever: writing annual business plans. If you believe you don’t need an annual business plan for your insurance agency, here are a few key reasons why you should reconsider its importance and value.
1. Annual business plans help your agency stay organized and focused.
Even if your office is full of highly organized insurance agents, having an organized structure and goal threading everything together can keep your agency on track. A business plan can help your agency stay focused on specific tasks throughout the year and boost employee motivation for achieving (or surpassing!) goals.
2. Writing a plan each year challenges your agency to review last year’s budget and revenue before setting a new goal for this year.
Are you looking to expand your agency or hire new agents? Are you hoping to double your revenue or invest in new marketing tools? These are all great ideas, but without taking the time to analyze the numbers from last year, you could overestimate how much wiggle room your agency has financially. A business plan can help you set realistic goals with a specific budget in mind.
3. Annual business plans also call for an examination of your current market and/or potential new markets.
Whether you already have a clear understanding of your market or not, including a section in your business plan each year can provide you several key benefits. Especially in an industry like insurance, markets can and do change fairly often. It’s important to know how your current market is adjusting to economic or social trends so that you may also make adjustments to how you reach out and sell to these individuals.
You may also find that your agency could take advantage of new markets you have yet to consider. By diving in and analyzing the markets in your industry beyond your previous customer reach, you can begin to consider what other types of coverage you can offer or how you can improve and expand current strategies to reach these new markets.