Insurance Company

Secure Your family with lifeMax

Business
Plan
[YEAR]

Prepared By
10200 Bolsa Ave, Westminster, CA,
John Doe 92683 [email protected]
(650) 359-
3153 https://example.com
Table of Contents

Executive Summary 5

Objectives 6
Mission 6
Keys to Success 7
Financial Forecasts 7
3 Year profit forecast 7

Business Summary 8

Overview 9
Company History 9
Startup cost 9

Funding Required 11
Company Ownership 12
Company Locations and Facilities 12

Products and Services 13

Service Description 14
Competitive Comparison 14
Sales Literature 15
Fulfillment 15
Technology 15
Future Services 16

Market Analysis 17

Market Segmentation 18
Market Analysis 18

Service Business Analysis 20

Competition and Buying Patterns 20

Business Participants 20

Distributing a Service 20

Insurance Company | Business Plan 2/40

[YEAR]
 Competitor Analysis 21
Cal Roberts, Patrick C. Johnson, Rob Champlain 21

Agents (such as Co-operators) 21

Mass Markets 21

Gray Power 21

Group Plans - teachers, public employees 21

Strategy and Implementation Summary 22

Marketing Strategy 23
Promotion Strategy 23

Distribution Strategy 24

Positioning Statement 24

Pricing Strategy 24

Sales Strategy 25
Sales Programs 25

Sales Forecast 25

Sales Yearly 26

Strategic Alliances 27
Service and Support 27
Milestones 27

Management Summary 28

Organizational Structure 29

Financial Plan 30

Startup Funding 31
Important Assumptions 32
Brake-even Analysis 32
Projected Profit and Loss 33
Profit Yearly 34

Gross Margin Yearly 34

Projected Cash Flow 35

Projected Balance Sheet 36
Business Ratios 37

Insurance Company | Business Plan 3/40

[YEAR]
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1.
Executive
Summary
Objectives
Mission
Keys to Success
Financial Forecasts

Insurance Company | Business Plan 5/40

[YEAR]
 Before you think about how to start Insurance services, you must
create a
detailed
phases ofInsurance agent
your startup business
but will alsoplan.
help Ityou
will not only guide you in
To unlock help try
later on. Upmetrics!

Ex ::
Lifemax

Lifemax Insurance is a general insurance company incorporated under the United

States’ law as
a private
public Limited
limited Liability
liability Company
company. Thisbut has
is so asatoplan in the
enable us nearest future
to get listed ontothe
transform
New
To unlock help try
York Stock Upmetrics!

Start writing here..

Objectives

Ex ::
Lifemax

•To re-establish Lifemax Insurance Inc. as the market leader in quality and
value-priced
insurance products in The Woodlands District.
•Establish good working relationships with our present insurance

Start writing here..

Mission

Ex ::
Lifemax

Lifemax Insurance Inc. is dedicated to providing insurance products that provide

quality
protection with value
staff members, pricing.
and our We wish
insurance to establish
companies, that a successful
respect partnership
the interests andwith our
To unlock help try
goals of each Upmetrics!

Start writing here..

Insurance Company | Business Plan 6/40

[YEAR]
Keys to Success

Ex ::
Lifemax

We believe the keys to success in a small town insurance business are:

•Knowledgeable, friendly staff that can empathize with our consumer's needs
and

Start writing here..

Financial Forecasts

3 Year profit forecast

Financial Year Sales Gross Margin Net Profit

Year1 10,000 500 6,000

Year2 12,000 800 8,000

Year3 14,000 1,200 10,000

Insurance Company | Business Plan 7/40

[YEAR]
2.
Business
Summary
Overview
Company
History Funding
Required
Company Ownership
Company Locations and Facilities

Insurance Company | Business Plan 8/40

[YEAR]
Overview

Ex ::
Lifemax

Lifemax Insurance primarily markets and services Personal Lines Insurance. Its
customers are
mostly insurance
priced rural, lower-income
premiums families or long
in keeping with time
their resident senior
lower and fixedcitizens who
To unlock help try
incomes. Upmetrics!

Start writing here..

Company History

Ex ::
Lifemax

Lifemax Insurance was founded as a sole proprietorship in 1938 and was owned
and operated
by the founder
business Stan
section Carrington.
of The WoodlandsHe when
originally ran the operation
he outgrew from his home but
his home-based
To unlock help try
operation. Upmetrics!

Start writing here..

Startup cost

Cost distribution Gross Margin Sales Net Profit

Year1 1,550 2,548 3,456

Year2 4,500 6,545 9,854

Cost distribution Gross Margin Sales Net Profit

Insurance Company | Business Plan 9/40

[YEAR]
 Year3 2,050 3,100 4,512

PAST PERFORMANCE YEAR 1 YEAR 2 YEAR 3

Sales $644,023 $660,593 $622,309

Gross Margin $144,174 $115,204 $120,525

Gross Margin % 22.39% 17.44% 19.37%

Operating Expenses $597,440 $604,559 $560,266

Collection Period (days) 0 0 0

Balance Sheet

Current Assets

Cash $0 $0 $402,640

Accounts Receivable $0 $0 $255,940

Other Current Assets $0 $0 $309,137

TOTAL CURRENT ASSETS $0 $0 $967,717

Long-term Assets

Long-term Assets $0 $0 $465,575

Accumulated Depreciation $0 $0 $181,651

TOTAL LONG-TERM ASSETS $0 $0 $283,924

Total Assets $0 $0 $1,251,641

Current Liabilities

Accounts Payable $0 $0 $336,000

Current Borrowing $0 $0 $0

Other Current Liabilities (interest free) $0 $0 $100,362

TOTAL CURRENT LIABILITIES $0 $0 $436,362

Long-term Liabilities $0 $0 $452,036

TOTAL LIABILITIES $0 $0 $888,398

Paid-in Capital $0 $0 $100

Retained Earnings $0 $0 $88,096

PAST PERFORMANCE YEAR 1 YEAR 2 YEAR 3

Insurance Company | Business Plan 10/

[YEAR] 40
 Earnings $0 $0 $275,047

TOTAL CAPITAL $0 $0 $363,243

Total Capital and Liabilities $0 $0 $1,251,641

Other Inputs

Payment Days 0 0 60

Sales on Credit $0 $0 $0

Receivables Turnover 0.00 0.00 0.00

Funding Required

STARTUP REQUIREMENTS AMOUNT

Startup Expenses

Legal (license and permits) $2,000

Stationery $2,000

Insurance $1,000

Rent $0

Computer $2,000

Website $1,000

Total Startup Expenses $8,000

Startup Assets

Cash Required $24,000

Other Current Assets $0

Long-term Assets $0

Total Assets $24,000

Total Requirements $32,000

Insurance Company | Business Plan 11/

[YEAR] 40
Company Ownership

Ex ::
Lifemax

Lifemax Insurance is a privately incorporated company in the Woodlands district

and is
licensed to and
Carrington transact
Mrs. both
Ruth Life and General Insurance. The shares are held equally
To unlock help try
Ferguson. Upmetrics!

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Company Locations and Facilities

Ex ::
Lifemax

Our Insurance and Real Estate brokerage operates from two central locations.
Our modern
attractive
owned by office in The Woodlands,
the principals at 178 Small
of our brokerage. Street, 2,000
It comprises is located in a small
To unlock help try
square feet. Upmetrics!

Start writing here..

Insurance Company | Business Plan 12/

[YEAR] 40
3.
Products and Services

Service Description
Competitive
Comparison Sales
Literature Fulfillment
Technology
Future Services

Insurance Company | Business Plan 13/

[YEAR] 40
 Before starting an Insurance Company, you must take many
things into
consideration such asto
will you be providing you must
your consider Deciding
customers. what types of services
your Insurance is
To unlock help try
extremely Upmetrics!

Ex ::
Lifemax

Lifemax Insurance is committed to providing professional sales and service for its
insurance
customers. We multi-line
are the largest have established what
insurance we consider
broker in our to be an excellent reputation in
To unlock help try
trading area. Upmetrics!

Start writing here..

Service Description

Ex ::
Lifemax

Lifemax Insurance provides home, automobile, and business insurance in The

Woodlands
District.
best We take
coverage at pride in knowing
the right that
price that for their
suits over needs
50 years
andwe have helpedIn
expectations. our
the
To unlock help try
event of a claim, Upmetrics!

Start writing here..

Competitive Comparison

Ex ::
Lifemax

Our company's strength lies in the quality and depth of our products and staff.
Our offices,
unlike
serviceour
ourcompetition,
clients even are
whenopen six days
a client's a week.
broker Because
is busy or outofofour
thelarger
officestaff,
on we
To unlock help try
inspections. Upmetrics!

Start writing here..

Insurance Company | Business Plan 14/

[YEAR] 40
Sales Literature

Ex ::
Lifemax

We have recently produced a pamphlet titled "Insurance Partners" which

stresses that a
successful
upon a newinsurance partnership between the client, the broker, and the
To unlock help try
concept. Upmetrics!

Start writing here..

Fulfillment

Ex ::
Lifemax

The key to fulfilling our client's needs is provided by our principals who have over
60 years of
experience
been insurancebetween them
brokers wellasover
general insurance
10 years. brokers,
We have one and
staffour staff, many
member with herof
To unlock help try
A.I.I.C., three Upmetrics!

Start writing here..

Technology

Ex ::
Lifemax

We have been fully computerized since 1982 and both offices and some of our
producer's
homes are connected to our main computer server located in The Woodlands.

To unlock help try Upmetrics!

Start writing here..

Insurance Company | Business Plan 15/

[YEAR] 40
Future Services

Ex ::
Lifemax

Although Stan Smith started out as a life insurance agent, the "life" part of our
business
represents
future. Dueonly 1%complexity
to the of our sales.
andWe are looking
number of lifeto strengthen
and disability this part ofwe
products, ourare
To unlock help try
presently using Upmetrics!

Start writing here..

Insurance Company | Business Plan 16/

[YEAR] 40
4.
Market Analysis

Market Segmentation
Service Business
Analysis Competitor
Analysis

Insurance Company | Business Plan 17/

[YEAR] 40
 The most important component of an effective Insurance company
business
plan is its
you can doaccurate marketing
the market analysisanalysis.
yourselfIfby
you are starting
taking help fromon this
a
To unlock help try
Insurance Upmetrics!

Ex ::
Lifemax

Recent demographic studies in our area reveal a total year-round population of

approximately
13,000, which
seniors and risesyounger,
many in the summer to approximately
newly-formed 25,000. We
families dependent on have a relatively
government
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assistance living Upmetrics!

Start writing here..

Market Segmentation

Ex ::
Lifemax

Our market consists of senior citizens, lower-income young families (many of who
are on social
assistance),
tourist and
trade). the are
There small, family-run
a few business
industrial (many
risks and ofthat
those which
areare seasonal
located hereandare
To unlock help try
branches of Upmetrics!

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Market Analysis

Segments Market share

Ages 0 to 14 20

Insurance Company | Business Plan 18/

[YEAR] 40
 Segments Market share

Ages 15 to 44 30

Ages 45 to 64 35

Ages 64 to 75 15

Potential Growt Year Year 2 Year Year 4 Year 5 CAGR

Customers h 1 3
Ages 0 to 14 2% 2,550 2,601 2,653 2,706 2,760 2.00%

Ages 15 to 44 2% 4,760 4,855 4,952 5,051 5,152 2.00%

Ages 45 to 64 5% 2,885 3,029 3,180 3,339 3,506 4.99%

Ages 65 to 74 5% 1,280 1,344 1,411 1,482 1,556 5.00%

Other 2% 1,000 1,020 1,040 1,061 1,082 1.99%

Total 3.03% 12,475 12,849 13,236 13,639 14,056 3.03%

Insurance Company | Business Plan 19/

[YEAR] 40
Service Business Analysis

Ex ::
Lifemax

The past few years have seen tremendous upheaval in the insurance industry. The
number of
players
has, hasmind
in the decreased
of the in both become
public, the broker and company
unaffordable, communities.
unavailable, and The
impossible to
To unlock help try
understand. Upmetrics!

Start writing here..

Ex ::
Lifemax

The main volume of income for our brokerage is generated by automobile

premiums because
they are relatively
mandatory in the higher priced to insure than property and because automobile
To unlock help try
region. Upmetrics!

Competition and Buying Patterns

Start writing here..

Ex :: Industry

•Cal Roberts Insurance

•Markets - Royal, Dominion of Canada
To unlock help try Upmetrics!

Business Participants
Start writing here..

Ex ::
Industry

Our trading area is rural. Premiums are relatively low and therefore not subject to
large
brokerages or specialty
business. There are few direct
group writers mountinginsurance
plans providing aggressive advertising
coverage with campaigns
the
To unlock help try
exception of our Upmetrics!

Distributing a Service
Start writing here..

Insurance Company | Business Plan 20/

[YEAR] 40
Competitor Analysis

Cal Roberts, Patrick C. Johnson, Rob Champlain

Strengths Weaknesses
Alternate markets, especially small farm Most are smaller, one-man operations that do
mutual, that still continue to give low not have the backup or finances to
prices, still continue to write wood stoves, aggressively impact the marketplace.
and allow discounts and underwriting terms
such as table 1 rates on homeowners
within 8 km of fire hall protection.

Agents (such as Co-operators)

Strengths Weaknesses
Large advertising budget and competitively One small operation that does not have the
priced products. Their commercial is same hours as our offices. Staff, because of
difficult to compete against in some cases salary, do not appear to be very
because they seem to not have the same knowledgeable or aggressive.
restrictions on underwriting as our markets.
Also they have large capacity to write
certain risks.

Mass Markets

Strengths Weaknesses
Already known to our clients; An unknown quantity to our insureds. Also, if
will be competitively priced. their people skills are similar to what they
now exhibit, they will have great difficulty
empathizing with the client and selling the
client what he needs, not what they think he
needs.

Gray Power

Strength Weaknesses
s
A still untried, unknown quantity.
Price

Group Plans - teachers, public employees

Strengths Weaknesses
Low Very little obviously, since we insure very few of the
Pricings professions.

Insurance Company | Business Plan 21/

[YEAR] 40
5.
Strategy
and Implementation
Summary
Marketing Strategy
Sales Strategy
Strategic Alliances
Service and Support
Milestones

Insurance Company | Business Plan 22/

[YEAR] 40
 After identifying the market demand, market trends, and the
potential
customers of thecustomers.
attracting those startup, theLike
next step is toanalysis,
marketing define ansales
effective
strategy
To unlock help try
is also an Upmetrics!

Ex ::
Lifemax

Emphasize service and ongoing support. We must avoid selling only one policy at
the lowest
price for each customer and concentration on account selling which greatly
retentio
To unlock help try
n. Upmetrics!

Start writing here..

Marketing Strategy

Ex ::
Lifemax

Emphasize service and support.

Build a partnership business based on account

selling. To unlock help try
Upmetrics!

Start writing here..

Ex ::
Lifemax

We have depended in the past on a small advertisement in our local newspaper,

listings in the
Yellow
in frontPages,
of the and word of mouth. We must begin to investigate alternate ways to
To unlock help try
public. Upmetrics!

Promotion Strategy
Start writing here..

Insurance Company | Business Plan 23/

[YEAR] 40
 Ex ::
Lifemax

Select Seniors, We will give special attention to this market in our advertising. We
will make a
concerted effort
associations and to support
offer andand
support sponsor
adviceseniors programs
to attract in ourclients
new senior area. We
whowill
areseek
To unlock help try
recently retired Upmetrics!

Distribution Strategy
Start writing here..

Ex ::
Lifemax

Our target market is The Woodlands District. The ideal client is claims-free aged
between 45 -
75 who owns
is known and his own home
respected and car and is debt-free. Has exhibited stable family
in the
To unlock help try
community. Upmetrics!

Positioning Statement
Start writing here..

Ex ::
Lifemax

Our customers are especially sensitive to value. We must ensure that our price and
service are
perceived to be of good value to our client.

To unlock help try Upmetrics!

Pricing Strategy
Start writing here..

Insurance Company | Business Plan 24/

[YEAR] 40
Sales Strategy

Ex ::
Lifemax

We want to emphasize the benefit of dealing with professionals who live and work in
our
client'san
unlike area. We knowmarket.
out-of-town their needs
If theand their problems
out-of-town brokerand
failswe
to have a local
provide proper
To unlock help try
cover or advice, Upmetrics!

Start writing here..

Ex ::
Lifemax

We are investigating sales incentives for our producers. They must encourage
profitable new
business
policy and have
written in oura office,
retention
withcomponent. Presently,
the exception our producers receive $10
of recreational
To unlock help try
vehicles. Upmetrics!

Sales Programs
Start writing here..

Ex ::
Lifemax

The following table and related charts show our present sales forecast. We are
projecting sales
to grow at a moderate but steady pace for the coming year and to continue into
1997.

Sales Forecast
Start writing here..

Insurance Company | Business Plan 25/

[YEAR] 40
Sales Yearly

Financial Year Total Sales

Year1 66,840

Year2 97,760

Year3 113,402

SALES FORECAST YEAR 1 YEAR 2 YEAR 3

Sales $677,600 $700,000 $750,000

Other $0 $0 $0

TOTAL SALES $677,600 $700,000 $750,000

Direct Cost of Sales 1996 1997 1998

Sales $0 $0 $0

Other $0 $0 $0

Subtotal Direct Cost of Sales $0 $0 $0

Insurance Company | Business Plan 26/

[YEAR] 40
Strategic Alliances

Ex ::
Lifemax

Some of our present companies have surveyed us to investigate co-operative

advertising but
we have not committed to any programs at present.

To unlock help try Upmetrics!

Start writing here..

Service and Support

Start writing here..

Milestones
We have listed our plan milestones in the table below.

Milestone Start End Date Budge Manage Departme

Date t r nt
Select Seniors 1/1/1996 12/31/1996 $0 P. Smith Sales

Broker Acquisition Course 4/17/1996 9/9/1996 $250 P. Smith Finance

Company Contacts 1/3/1996 12/31/1996 $1,000 P. Smith Marketing

Install Release 74 4/8/1996 7/8/1996 $0 J. Smith Staff

Release 74 Training 4/2/1996 8/2/1996 $300 Staff Staff

Jason - CAIB Course 2 5/4/1996 6/24/1996 $395 J. Smith Staff

Upload/download Training 1/7/1996 3/1/1996 $1,000 J. Smith Staff

Stephen - Remove 1/9/1996 1/10/1996 $400 Staff Staff

Restriction
Mandatory Staff - 3hr 1/10/1996 1/10/1996 $1,000 P. Smith Management

Totals $4,345

Insurance Company | Business Plan 27/

[YEAR] 40
6.
Management
Summary
Organizational Structure

Insurance Company | Business Plan 28/

[YEAR] 40
 Ex ::
Lifemax

Lifemax Insurance is slow to hire new people and loyal to those whom we have
hired. We hire
only when there is
our organization foraover
vacancy or growth
15 years, whichdictates
allows more staff. and
our clients Mostour
of companies
our people to
To unlock help try
form long- Upmetrics!

Start writing here..

Organizational Structure

Ex ::
Lifemax

Our brokerage is divided by the client instead of the service. Each broker is
responsible not only
to renew
claims. Weand service
feel a client's
a client wants toinsurance,
deal with but
his they also
or her are responsible
broker, fora collection
especially in
To unlock help try
claim situation, Upmetrics!

Start writing here..

PERSONNEL PLAN YEAR 1 YEAR 2 YEAR 3

Greg Bell $49,000 $50,000 $75,000

Associate Agent $0 $35,000 $75,000

TOTAL PEOPLE 1 2 2

Total Payroll $49,000 $85,000 $150,000

Insurance Company | Business Plan 29/

[YEAR] 40
7.
Financial Plan

Startup Funding
Important
Assumptions Brake-
even Analysis
Projected Profit and
Loss Projected Cash
Flow Projected
Balance Sheet
Business Ratios
Insurance Company | Business Plan 30/
[YEAR] 40
 The last component of an Insurance company business plan is an
in-depth
financial
needed forplan.
theThe financial
startup plan these
and how crafts expenses
a detailedwill
map beofmet
all the
by
To unlock help try
the earned Upmetrics!

Ex ::
Lifemax

The business will finance its growth from a combination of the free cash flows
generated by the
business and a loan
The Woodlands. taken
Beyond theout in the
first second
three years,year to finance
growth will be the moveby
possible to adding
a small
To unlock help try
more agents Upmetrics!

Start writing here..

Startup Funding
Lifemax Insurance will be launched with Greg Bell's own resources, including credit card
debt, personal savings, and some credit extended by vendors providing start-up services.

STARTUP FUNDING AMOUNT

Start-up Expenses to Fund $8,000

Start-up Assets to Fund $24,000

TOTAL FUNDING REQUIRED $32,000

Assets

Non-cash Assets from Start-up $0

Cash Requirements from Start-up $24,000

Additional Cash Raised $0

Cash Balance on Starting Date $24,000

TOTAL ASSETS $24,000

Liabilities and Capital

Liabilities

Current Borrowing $4,000

Long-term Liabilities $0

Accounts Payable (Outstanding Bills) $1,000

Other Current Liabilities (interest-free) $0

STARTUP FUNDING AMOUNT

Insurance Company | Business Plan 31/

[YEAR] 40
 TOTAL LIABILITIES $5,000

Capital

Planned Investment

Owner $27,000

Investor $0

Additional Investment Requirement $0

TOTAL PLANNED INVESTMENT $27,000

Loss at Start-up (Start-up Expenses) ($8,000)

TOTAL CAPITAL $19,000

TOTAL CAPITAL AND LIABILITIES $24,000

Total Funding $32,000

Important Assumptions
We are assuming approximately 50% sales on credit and average interest rates of 10%.
These are considered to be conservative in case our predictions are erroneous.
Since Walter is an import/export broker, the firm has no variable costs associated with it.

Year 1 Year 2 Year 3

Plan Month 1 2 3

Current Interest Rate 10,00% 11,00% 12,00%

Long-term Interest Rate 10,00% 10,00% 10,00%

Tax Rate 26,42% 27,76% 28,12%

Other 0 0 0

Brake-even Analysis

Monthly Units Break-even 5530

Monthly Revenue Break-even $159 740

Assumptions:

Average Per-Unit Revenue $260,87

Average Per-Unit Variable Cost $0,89

Estimated Monthly Fixed Cost $196 410

Insurance Company | Business Plan 32/

[YEAR] 40
Projected Profit and Loss

Year 1 Year 2 Year 3

Sales $309 069 $385 934 $462 799

Direct Cost of Sales $15 100 $19 153 $23 206

Other $0 $0 $0

TOTAL COST OF SALES $15 100 $19 153 $23 206

Gross Margin $293 969 $366 781 $439 593

Gross Margin % 94,98% 94,72% 94,46%

Expenses

Payroll $138 036 $162 898 $187 760

Sales and Marketing and Other Expenses $1 850 $2 000 $2 150

Depreciation $2 070 $2 070 $2 070

Leased Equipment $0 $0 $0

Utilities $4 000 $4 250 $4 500

Insurance $1 800 $1 800 $1 800

Rent $6 500 $7 000 $7 500

Payroll Taxes $34 510 $40 726 $46 942

Other $0 $0 $0

Total Operating Expenses $188 766 $220 744 $252 722

Profit Before Interest and Taxes $105 205 $146 040 $186 875

EBITDA $107 275 $148 110 $188 945

Interest Expense $0 $0 $0

Taxes Incurred $26 838 $37 315 $47 792

Net Profit $78 367 $108 725 $139 083

Insurance Company | Business Plan 33/

[YEAR] 40
 Year 1 Year 2 Year 3

Net Profit/Sales 30,00% 39,32% 48,64%

Profit Yearly

Financial Year Profit

Year1 10,000

Year2 12,000

Year3 14,000

Gross Margin Yearly

Financial Year Gross Margin

Year1 10,000

Insurance Company | Business Plan 34/

[YEAR] 40
 Financial Year Gross Margin

Year2 12,000

Year3 14,000

Projected Cash Flow

Cash Received Year 1 Year 2 Year 3

Cash from Operations

Cash Sales $40 124 $45 046 $50 068

Cash from Receivables $7 023 $8 610 $9 297

SUBTOTAL CASH FROM OPERATIONS $47 143 $53 651 $59 359

Additional Cash Received

Sales Tax, VAT, HST/GST Received $0 $0 $0

New Current Borrowing $0 $0 $0

New Other Liabilities (interest-free) $0 $0 $0

New Long-term Liabilities $0 $0 $0

Sales of Other Current Assets $0 $0 $0

Sales of Long-term Assets $0 $0 $0

New Investment Received $0 $0 $0

SUBTOTAL CASH RECEIVED $47 143 $53 651 $55 359

Expenditures from Operations

Cash Spending $21 647 $24 204 $26 951

Bill Payments $13 539 $15 385 $170 631

SUBTOTAL SPENT ON OPERATIONS $35 296 $39 549 $43 582

Additional Cash Spent

Sales Tax, VAT, HST/GST Paid Out $0 $0 $0

Principal Repayment of Current Borrowing $0 $0 $0

Other Liabilities Principal Repayment $0 $0 $0

Long-term Liabilities Principal Repayment $0 $0 $0

Cash Received Year 1 Year 2 Year 3

Insurance Company | Business Plan 35/

[YEAR] 40
 Purchase Other Current Assets $0 $0 $0

Purchase Long-term Assets $0 $0 $0

Dividends $0 $0 $0

SUBTOTAL CASH SPENT $35 296 $35 489 $43 882

Net Cash Flow $11 551 $13 167 $15 683

Cash Balance $21 823 $22 381 $28 239

Projected Balance Sheet

Assets Year 1 Year 2 Year 3

Current Assets

Cash $184 666 $218 525 $252 384

Accounts Receivable $12 613 $14 493 $16 373

Inventory $2 980 $3 450 $3 920

Other Current Assets $1 000 $1 000 $1 000

TOTAL CURRENT ASSETS $201 259 $237 468 $273 677

Long-term Assets

Long-term Assets $10 000 $10 000 $10 000

Accumulated Depreciation $12 420 $14 490 $16 560

TOTAL LONG-TERM ASSETS $980 $610 $240

TOTAL ASSETS $198 839 $232 978 $267 117

Current Liabilities

Accounts Payable $9 482 $10 792 $12 102

Current Borrowing $0 $0 $0

Other Current Liabilities $0 $0 $0

SUBTOTAL CURRENT LIABILITIES $9 482 $10 792 $12 102

Long-term Liabilities $0 $0 $0

TOTAL LIABILITIES $9 482 $10 792 $12 102

Assets Year 1 Year 2 Year 3

Paid-in Capital $30 000 $30 000 $30 000

Insurance Company | Business Plan 36/

[YEAR] 40
 Retained Earnings $48 651 $72 636 $96 621

Earnings $100 709 $119 555 $138 401

TOTAL CAPITAL $189 360 $222 190 $255 020

TOTAL LIABILITIES AND CAPITAL $198 839 $232 978 $267 117

Net Worth $182 060 $226 240 $270 420

Business Ratios

Year 1 Year 2 Year 3 Industry

Profile
Sales Growth 4,35% 30,82% 63,29% 4,00%

Percent of Total Assets

Accounts Receivable 5,61% 4,71% 3,81% 9,70%

Inventory 1,85% 1,82% 1,79% 9,80%

Other Current Assets 1,75% 2,02% 2,29% 27,40%

Total Current Assets 138,53% 150,99% 163,45% 54,60%

Long-term Assets -9,47% -21,01% -32,55% 58,40%

TOTAL ASSETS 100,00% 100,00% 100,00% 100,00%

Current Liabilities 4,68% 3,04% 2,76% 27,30%

Long-term Liabilities 0,00% 0,00% 0,00% 25,80%

Total Liabilities 4,68% 3,04% 2,76% 54,10%

NET WORTH 99,32% 101,04% 102,76% 44,90%

Percent of Sales

Sales 100,00% 100,00% 100,00% 100,00%

Gross Margin 94,18% 93,85% 93,52% 0,00%

Selling, General & Administrative 74,29% 71,83% 69,37% 65,20%

Expenses
Advertising Expenses 2,06% 1,11% 0,28% 1,40%

Profit Before Interest and Taxes 26,47% 29,30% 32,13% 2,86%

Year 1 Year 2 Year 3 Industry

Profile
Main Ratios

Insurance Company | Business Plan 37/

[YEAR] 40
 Current 25,86 29,39 32,92 1,63

Quick 25,4 28,88 32,36 0,84

Total Debt to Total Assets 2,68% 1,04% 0,76% 67,10%

Pre-tax Return on Net Worth 66,83% 71,26% 75,69% 4,40%

Pre-tax Return on Assets 64,88% 69,75% 74,62% 9,00%

Additional Ratios

Net Profit Margin 19,20% 21,16% 23,12% N.A.

Return on Equity 47,79% 50,53% 53,27% N.A.

Activity Ratios

Accounts Receivable Turnover 4,56 4,56 4,56 N.A.

Collection Days 92 99 106 N.A.

Inventory Turnover 19,7 22,55 25,4 N.A.

Accounts Payable Turnover 14,17 14,67 15,17 N.A.

Payment Days 27 27 27 N.A.

Total Asset Turnover 1,84 1,55 1,26 N.A.

Debt Ratios

Debt to Net Worth 0 -0,02 -0,04 N.A.

Current Liab. to Liab. 1 1 1 N.A.

Liquidity Ratios

Net Working Capital $120 943 $140 664 $160 385 N.A.

Interest Coverage 0 0 0 N.A.

Additional Ratios

Assets to Sales 0,45 0,48 0,51 N.A.

Current Debt/Total Assets 4% 3% 2% N.A.

Acid Test 23,66 27,01 30,36 N.A.

Sales/Net Worth 1,68 1,29 0,9 N.A.

Dividend Payout 0 0 0 N.A.

Insurance Company | Business Plan 38/

[YEAR] 40
Insurance Company | Business Plan 39/
[YEAR] 40
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