Zachary m weinstein state farm insurance agency fbla pbl (859.32 KB)

File Name: 2019-PBL-Small-Business-Management-Plan-2nd.pdf

File Size: 859.32 KB

File Type: Application/pdf

Last Modified: 3 years

Status: Available

Last checked: 7 days ago!

This Document Has Been Certified by a Professional

100% customizable

Language: English

We recommend downloading this file onto your computer

Summary

Zachary M. Weinstein
State Farm Insurance Agency
Harrisburg, PA
2019
Small Business Management Plan 2018-2019
Phi Beta Lambda
Penn State University York Campus
Prepared by Zach Weinstein and Kyle Fullerton
0
TABLE OF CONTENTS
EXECUTIVE SUMMARY ..................................................................................................... 2
COMPANY DESCRIPTION .................................................................................................. 2
Company Mission and Vision ......................................................................................................................... 3
Company Governance..................................................................................................................................... 3
Immediate Development Goals ....................................................................................................................... 4
INDUSTRY ANALYSIS ......................................................................................................... 7
TARGET MARKET ............................................................................................................... 8
Market Demographics .................................................................................................................................... 8
COMPETITION ...................................................................................................................10
MARKETING PLAN AND SALES STRATEGY ...................................................................10
Message ......................................................................................................................................................... 10
Delivery Methods .......................................................................................................................................... 11
Sales Procedures and Methods ..................................................................................................................... 11
OPERATIONS ......................................................................................................................13
Office Facility................................................................................................................................................ 13
Technological Use ......................................................................................................................................... 13
Organization Chart ....................................................................................................................................... 14
Recruiting Plan ............................................................................................................................................. 14
Personal Production Goals............................................................................................................................ 15
LONG-TERM DEVELOPMENT ..........................................................................................19
Goals ............................................................................................................................................................. 19
Risk and Potential Adverse Results .............................................................................................................. 19
FINANCIALS .......................................................................................................................20
Capital Investment ........................................................................................................................................ 20
Profit and Loss .............................................................................................................................................. 21
Retention Strategies ...................................................................................................................................... 23
Appendix A: Short Term Plan ...............................................................................................24
Appendix B: Workforce Roles ...............................................................................................26
Appendix C: References ........................................................................................................28
1
EXECUTIVE SUMMARY
The Zach Weinstein State Farm Agency will provide much of the community’s insurance needs
while encompassing a professional and comfortable feel. A trained and caring team will provide
personalized customer service while following guidelines and doing what is best for policyholders

Goals will be set in order to remain profitable and competitive within the market. The essential
elements for growth that will constantly be kept in mind are product expertise, knowledge of client
needs, and establishing trust in the agency. The products offered by this agency include but are not
limited to:
Insurance products offered:
• Automobile Insurance • Health Insurance
• Homeowners Insurance • Personal Articles Policy (PAP)
• Renters Insurance • Personal Liability Umbrella Policy
• Life Insurance (Whole, Term, Univs.) (PLUP)
Bank products offered:
• Checking/Savings Account • Certificate Deposit (CD)
• Money Market Account • Individual Retirement Account (IRA)
• Credit Cards
COMPANY DESCRIPTION
LEGAL FORM OF BUSINESS
This State Farm franchise will be running as a sole proprietorship with one agent (owner), one
sales representative, and a receptionist to start. This business acts as a subsidiary of State Farm
Corporation and collects premium on their behalf and all profits are passed back down to the agent

2
EFFECTIVE DATE OF BUSINESS
The official start-up date of this business will be January 1, 2020. The hours of operation (as listed
above) will be: Mon.- Fri. 9-5, Tues., Thurs. 9-7, Sat. 9-12, and Sun. by appointments only. The
following are State Farm’s observed (paid) holidays: Memorial Day, Fourth of July, Labor Day,
Thanksgiving Day, and Christmas Day

COMPANY MISSION AND VISION
The mission is to focus on each customer’s individual needs to provide products that will help
minimize their everyday risk and assist them in recognizing their dreams. The agency will provide
the customer with outstanding service through a friendly and knowledgeable team. Trust, integrity
and loyalty will be the foundation of the agency, as well as adapting to the ever-changing economy
to benefit both the policyholder and State Farm alike

As a State Farm Agent, the vision of the team is to be the customer’s first and best choice in the
products and services we provide. State Farm Bank separates this organization from others in the
industry by making deposit products and loans available to customers. The agency will focus on
the customer's needs and develop the trust and integrity that State Farm has established. One way
of establishing this rapport is through community outreach and involvement, upholding that “Good
Neighbor” relationship

COMPANY GOVERNANCE
As stated above, this State Farm franchise will be running as a sole proprietorship with one agent
(owner), one sales representative, and a receptionist to start. This business acts as a subsidiary of
3
State Farm Corporation and collects premium on their behalf, and all profits are passed back down
to the agent. This business will be located in downtown Harrisburg, Pennsylvania

IMMEDIATE DEVELOPMENT GOALS
Auto Goals and Strategies
The yearly objective is to write 35 raw new/reinstated autos per month or 420 annually. Specific
Auto growth targets are Raw New, Motorcycles, Commercial Vehicles, and Youthful Operators

• Use internet leads to gain additional warm leads. Team members will alternate leads or
whoever is available will work the lead immediately. This consists of calling immediately,
mailing and emailing an accurate quote (mail and email a bogus quote if not enough
information is received), and continuing to call and mail postcards once a week for 4 weeks
until a “No” is told. Then the quote will be pended for 6 to 12 months. This pended quote
will be recorded in Outlook calendar as well as ABS

• Facebook advertisement and running referral rewards by mentioning Facebook during the
quoting process

Fire Goals and Strategy
The yearly objective is to write 17 raw new/reinstated fire policies per month or 207 annually

Specific targets are Homeowners, Renters, PAP, PLUP, and commercial business

• All contact with customers, whether on the phone or in person, is a potential sale. The team
will be trained in pivoting and product knowledge for each of the products offered

• Service Specialists will run lists of high valued dwellings without plups. Plup letters will
be sent, making the customer aware of the additional exposures they have, and phone calls
will be made by the team

• Local rental complexes and developments will be frequented with welcome bags which
include calendars, business cards, bogus/example quote and State Farm literature

4
• Lists of single line auto will be run and an IFR letter will be sent monthly with all auto
renewals. This will invite the policyholder to explore the package/multi-line discounts
offered. All lists will be divided and given to the team to schedule appointments

• Networking through local business such as mortgage companies, local realtors, title
companies, etc... Once again, referrals are the most cost-effective way of marketing

Life Goals and Strategy
The yearly goal is to write/issue 8 policies per month with $50,000 premium and average premium
volume of $525 per case. Specific targets are Whole Life, Term Life, and Universal Life, ROP

• All contact will customers, whether on the phone or in person, is a potential sale based on
needs at the time. Certain needs would include marriage, divorce, pregnancy, etc

Health Goals and Strategy
The yearly goal is to write/issue 48 policies with $700.00 premium. Specific targets are Long Term
Care, Medical Supp., Disability, etc

• Lists of the older clientele will be produced. An approved Long-Term care letters will be
sent to the individuals. The list will be divided equally among team members

• Every person who is purchasing a new home and obtaining homeowners insurance will be
explained the advantages of Mortgage Disability which would be included in the triangle
of protection discussion

• During each vehicle refinance, disability income will be explained and added to
loan/refinance. Each team member will be trained to pivot this product

• Hospital income will be targeted towards the parents and the young adults. Within the
monthly presentations of steer clear the importance of hospital income and life insurance
will be presented and stressed to act at a young age

• Quarterly lists of eligible individuals that are turning 65 will be given a phone call and
mailed an informative letter regarding Medical Supplements

5
• Pivoting during the fact-finding process and writing of new auto, business, and health
insurance will be discussed. It is important to identify those without health insurance and
present the options that are available to them

SF Bank Goals and Strategy
The yearly goal is to book 2 loans and 4 deposit products accounts per month or 72 annually

Specific targets are deposit products, loan products, credit cards

• Ask all customers that have replaced and/or recently added a vehicle about lien information
and the percentage rate that they currently have. Explain the advantages of banking with
State Farm, looking at better interest rates, and the inclusion of debt cancellation coverage
with all vehicle loans

• Update the bank board in the office weekly. Make it noticeable as clients enter the office

• Outline the ease and convenience of having insurance, bank, loan, and health all at one spot
and knowing who they are talking to every time

• Lists of current autos that show a lien holder will be posted. A letter asking to verify
information will be sent. Follow-up calls will be made if the client has not contacted the
team member. During the verification of the correct information pivoting will be done to
compare interest rate and educate the customer about our bank products

• CD postcards will be mailed to the older clientele on the book

• Upon opening an SFPP account, the customer will be informed of the advantages of getting
1% back and by using this to pay their premium receiving 2% back with the State Farm
Rewards Visa

• All young adults will be offered a credit card and informed that the agency is here to assist
them in establishing good credit at a young age

• State Farm approved copies of current bank rates will be given to each client daily and will
initiate conversation about all bank products

6
Mutual Fund Goals and Strategy
The yearly goal is to book 24 accounts annually with an average account size of $2500.00. Specific
targets are number and size of accounts

• Ask all state-to-state transfers about rolling over their accounts from their previous job

• During IFR’s and the fact-finding process identify those customers who have a need for
retirement planning and rollovers

• Run monthly lists of address changes on the book. Typically, this will signify a change in
job, and a rollover or a discussion about retirement will be present

• Direct mail targeting mid-20- to mid-40-year olds explaining Roth IRA’s, educational
IRA’s, and mutual funds

• All products pitched will be recorded as a follow-up in ABS by each team member. The
follow up systems in “My Activities” will be used daily to maximize call back efficiency
and success

INDUSTRY ANALYSIS
DESCRIPTION OF INDUSTRY
According to the Insurance Information Institute, the U.S. Bureau of Economic Analysis gives
insurance carriers and related fields credit for contributing $507.7 billion of total U.S gross
domestic product in 2016. Furthermore, below displays a breakdown of the insurance premiums
and their respective costs within the U.S. This information supports the importance of the
insurance industry on both a global and local level

7
Current trends within the industry include multi-lining, up to and including financial services, and
providing 24-hour customer service including mobile application accessibility. Since the industry
is moving towards internet-based systems, ensuring that the business has access to these portals in
order to proper tap into further lead generation is crucial

SWOT ANALYSIS
Strengths Weaknesses
• Highly motivated with a positive • Finding team members that share the same
attitude high expectations for the future of the
• Strong community connections agency
• Strong support system consisting of the
team-work mindset within the agency
• Having a diverse team will help relate
to all demographics
Opportunities Threats/Competitor Analysis
• Help simplify the lives of all clients by • Geico, Progressive, Nationwide, Erie,
providing the coverage they need Allstate, Merrill Lynch, and other insurance
• Gaining new leads though current brokers/financial institutions
customers and expanding beyond the • Economy will be an area that could be a
community threat to the agency but with a team that is
• Molding and shaping the book of fully engaged in the business and analyzing,
business through multi-lining and updating and increasing marketing dollars
generating quality long-lasting business where most effective, will maintain and
through relationship building and grow business through an overall economy
leadership that does not show growth
• Increasing internet competition, as the
internet is one of the most cost effective and
reliable means of advertisement
TARGET MARKET
MARKET DEMOGRAPHICS
Dauphin, Lebanon, and Lancaster counties have grown substantially in recent years. In terms of
the economy of Dauphin county, its backbone is in Public Administration, Transportation and
Warehousing, and Utilities, which drive the median household income over that of the entire
8
United States at $60,331. In the county, the population was dispersed by the following
demographics: 22.3% were under the age of 18, 8.3% from 18 to 24, 25.9% from 25 to 44, 20.8%
from 45 to 59, and 15.7% are 65 years or older. This makes the median age approximately 40 years
old. The most recent survey also indicated that the largest group of households in this county make
an income between $75k to $100k range, equating to about 16,261 households (64.9%)

It is also worth mentioning the largest percentage of non-English speaking members there are
within Dauphin County. With almost 12% (5,756 people) speaking another language, it will be
crucial to hire multicultural team members to help bridge the gaps in communication

As for future growth, the youthful generations are essential to having a healthy base of business

By utilizing social media sources such as Facebook, Twitter, Instagram, and LinkedIn, the agency
will be able to effectively communicate with the youth. Unlike traditional marketing, cold-calling
from the phone book and being lucky to land 10% of people, social media allows for easy
broadcasting of product or service globally while attracting the largest group of youth and young
adults. The following chart depicts the demographics described above

Demographic Analysis Community Competitor Market Area
Population 49,192 37,149 469,998
Population Trends +8% +5.2% +1.12%
Number of Households 25,057 15,302 184,782
Home Ownership Rate 36.2% 57.9% 59.13%
Median Housing Cost $82,100 $160,200 $147,233
Median Income $35,300 $42,792 $50,918
Language Other Than English 11.7% 8.9% 13.62%
Market Factors
Market Penetration 18.3 19% 14.7%
Table 1
Data collected from 2016 census on Datausa.io and the United States Census Bureau (keywords: Dauphin County, Harrisburg, Lebanon
9
COMPETITION
Competition is not just a threat to overall revenue of a company; competition can be in the form
of marketing, branding, and customer service/satisfaction. As an owner of a State Farm Agency I
must be aware of my competitors and their strengths and weaknesses in order effectively manage
and implement various marketing, administrative, and service techniques to overcome the
opposition. A list of these competitors are as follows:
• Erie Insurance • Geico Insurance (Berkshire Hathaway)
• All State Insurance • Progressive Insurance
• Donegal Insurance
Another potential competitor of the business/industry could be a new company(s) entering the
industry with fresh marketing ideas or well-established strategies and procedures to correct a
common error of existing insurance companies. However, one major tool the newly established
companies would not possess is branding power that has been earned by the industry leaders

MARKETING PLAN AND SALES STRATEGY
MESSAGE
The branding reputation of a company or organization has a drastic effect on its influence within
the industry. As stated in the above heading, opening a new agency under the umbrella of State
Farm provides and affiliates the branding reputation that comes with the agency with the new
business and in turn attracts an abundance of clientele over its competitors. Everything from the
10
alliteration used in radio advertisements (Sheryl’s She Shed) to the comical television commercials
(Trash Talking a Pothole) make State Farm a catchy yet memorable insurance agency. Entering
into the market with the brand that State Farm has created will set one aside from others attempting
to compete for business

DELIVERY METHODS
Finding out where the agency’s sales and leads are coming from is essential to tailoring and
maximizing the marketing budget. This is a good indicator on how involved the agency is with the
community. Some strategies for building community relations are:
• Sponsor local sporting events and fundraisers

• Meet local businesses in the area and offer services to them

• With the growing popularity of internet-based communication and marketing, daily posts
will be made on the company Facebook and LinkedIn pages to share insurance facts,
questions to think about, and any new general policy changes or availabilities

Along with community outreach, the business will take advantage of other marketing sources such
as telemarketing through book of business lists, billboards in the surrounding area, direct mailers
sent to potential customers, and social media to not only network but reach more of the younger
generations eligible for insurance

SALES PROCEDURES AND METHODS
Marketing will be vital to the agency’s success. Analyzing where business is produced and
recognizing the marketing that is the most effective will be a major part of the business. How the
potential customer heard about the agency will be tracked with every opportunity. Here are some
Specific Market Strategies:
11

The yearly objective is to write 17 raw new/reinstated fire policies per month or 207 annually. Specific targets are Homeowners, Renters, PAP, PLUP, and commercial business. • All …

Download Now

Zachary M Weinstein State Farm Insurance Agency Fbla Pbl

Summary

Documemt Updated

Popular Download