Sample Essay on Business Plan

Business Plan

Executive Summary.

Jubilee Insurance Company is focused on ensuring that it becomes the best insurance company in the United States. The company was founded more than twenty years ago; it enjoys loyalty from its customers as it has created a better working relationship with its clients. According to the management, it is projected that the company should increase its gross sales by 12% and profit by 16%. The employees are friendly to the clients, and there are better-working relationships between the customers and the staff.

The company employees are guided by the regulations set by the management. Additionally, our company has set priorities to enable the company’s goals are achieved. To ensure the company meets the set objectives, it strives to identify its target markets. Our company is determined in assisting upcoming businesses with an affordable business offers. Just like any other business, our company has faced many challenges reducing the total revenue collected. To overcome the shortcomings, goals have been set so that the company can enjoy the market share it enjoyed previously.

Arguably, Jubilee Insurance Company is committed to offering insurance products that provide effective protection with value pricing. To establish the achievements of the company, the success will be determined by the increasing number of clients. We strive to ensure that our esteemed clients obtain valuable products at a relatively competitive costs. Good relationships between the staff and clients have also attracted more customers to the company. The company has visions and missions that guide its normal operations.  The employees deliver their services consistently to ensure that the guidelines of the firm are strictly followed.


Jubilee Insurance Company projects that in the next three financial years, its operations shall have improved significantly.


Jubilee Insurance Company’s main focus is to ensure that its clients are satisfied with the services they offer. The corporation wishes to build a better relationship with its clients by providing services that offer quality protection.


The Jubilee Insurance Company is considered one of the best performing Insurance companies in the United States. To ensure continuity in the profits made by the company, goals have been set. The goals of the company are:

1)    To ensure that Jubilee Insurance Company provide the best indemnity products in the United States.

2)    To create a favorable working relationship with our insurance markets.

3)    To find emerging markets.

4)    To give incentives to employees so that they can achieve the sales target of 8%.

5)    To employ qualified workforce to efficiently take on the company’s duties and responsibilities.

To achieve and implement the set goals, we will concentrate on ensuring that the following are implemented:

  • Employment of friendly and focused staff members who can effectively handle our customers’ needs especially in handling a loss.
  • Provision of easy to understand, reasonably affordable, and available policies.
  • Availing policies in favorable time limit.

The greater populations of Jubilee Insurance Company’s clients reside in the rural areas. The other crucial clients are the low income earners. Additionally, our company give indemnity to both the upcoming and small businesses.

Company Analysis

Jubilee Insurance has ventured into a business line that has been overlooked by other firms following high risks associated with it (Abrams, 2003). Even though there are few companies involved in the same kind of business, the company still has to strive to ensure that it offers the best services to its customers. Below, we have established the strengths, weaknesses, opportunities and threats that the company faces in its daily operations.

SWOT Analysis


Our company has invested heavily in offering job opportunities to qualified employees. The availability of skilled and friendly employees in the company ensures that clients get services according to their expectations. The move places the company at a better position as it realizes increased profit. Additionally, Jubilee Insurance has ensured that advertising budget is increased. It has ensured that the company gets coverage in advertisements and its existence is known by as many people as possible. The company’s products are widely known, especially with those living in the rural areas. Additionally, the firm has been in operation for several years, hence, the company receives increased number of clients. It has built its reputation to the clients over the years, a fact that has made customers have confidence in the company. The existing clients are resourceful to the company as they constantly pay the premiums. Consequently, the increasing number of customers make the company receive more revenue. The company has built a strong working relationship with the clients, making customers satisfied with its services. Lastly, we accept relatively lower premiums from the clients. The move has attracted many people to take insurance cover with our company.


The company operates five days in a week as opposed to other companies that operate 6 days in a week. The less number of operational days limits clients who may be engaged in other activities within the 5 days of the week. Additionally, apart from advertisements, the company does not have any other form of awareness creation. It, therefore, limits the number of customers who utilize various products from the company. The company concentrates mostly on the clients from the rural areas and of relatively lower income. The target population should be wider to ensure an increased number of people get access to various products and services offered by the Company.


Over the last few decades, there has been a slight increase in the number of emerging insurance companies in the United States. Entrepreneurs venture into the business with high expectations of making huge profits within short time possible irrespective of the high risks involved in the business. In most cases, other upcoming insurance companies have closed down due to persistent losses incurred. The emerging insurance companies have little experience in the line of business making them to incur losses and consequently close their businesses. The lack of experience by the emerging insurance companies creates an opportunity to Jubilee Insurance Company to continue enjoying the wider market share. Additionally, with the advancements in technology, increasing number of people have accessibility to the Internet. The business should, therefore, be conducted through sending emails to the clients. On the other hand, networking and creating good relationships with other firms, for instance, auditing firms and banks, presents an opportunity to seek accounting and lending privileges whenever need arise.


In the United states, there are low barriers to entry in the insurance firm business. It, therefore, gives an opportunity to several people to get into the same line of business. Even though some new entries do not succeed in the business due to lack of experience, some entrepreneurs become successful and create stiff competition. Most entrepreneurs have ideas but they lack the experience to properly manage the insurance companies. Entrepreneurs who succeed in developing their insurance companies create competition to Jubilee insurance, which is likely to reduce profits made by the company. In dealing with that threat, the Jubilee company strives to offer quality services and products to maintain and attract more clients. In building reputation and good relationships, resources are required to facilitate every action. Provision of such resources by our firm reduces the total income of our company. Additionally, there are alternative insurance companies that offer the same services and products at relatively cheaper prices. Such companies present major threat to Jubilee Insurance. Consequently, there are various changes in the laws about healthcare. The changes may require adjustments in the way policies are offered. It becomes a major threat as the company is unable to keep up with the changing market and laws.

SWOT Analysis of Three Competitors

Just like any other form of business, Jubilee Insurance Company faces stiff competition from other alternative companies. Besides other insurance companies, the company equally faces competition from alternative organizations providing the same services and products. The main competitors include Local independent brokers, Agents, and mass markets (Mason & Stark, 2004).

1)    Local Independent Brokers

Insurance brokers pose stiff competition to the Jubilee Insurance Companies. Competition posed by brokers makes the Company to strive to ensure that it doesn’t lose its customers to the brokers.


Local independent dealers offer a broad range of insurance products and services to the people. Various insurance products provided by the independent agents include liability, health, life and auto that is so appealing to most of the target clients. Additionally, most of the independent dealers increases their insurance rates and clients are capable of paying the costs. The ability of customers willing to pay the costs enables the business to be more lucrative, attracting most of the brokers into the firm. The increasing number of local insurance brokers into the market increases the competition level in the insurance business. Also, most of the insurance brokers have been into existence for relatively longer period attracting most of the customers.


Following the high need for capital in the insurance products business, most independent brokers are compelled to borrow money from financial institutions. Insurance agents highly depend on borrowing to sustain their daily operations. In case they fail to acquire loans to run their businesses, their day-to-day activities are affected giving other insurance companies for instance Jubilee Insurance Company an advantage to control the market. Additionally, most local insurance brokers lack strong sales/marketing expertise. It makes the agents not to sell their policies effectively to the target market. Most of the targeted customers are not aware of the existence of such brokers. Brokers do little on advertisements hence most people do not have knowledge of their availability. On the other hand, current advancements in technology may shift the market in new directions (Karlsson & Honig, 2009). Consequently, most of the local insurance brokers have few staff members. Hey therefore largely depend on the few staff members making the general operations relatively difficult. Most of the local dealers also lack properly designed offices. For those who operate in offices, there premises are comparatively smaller to other primary insurance companies.


There is international presence of market as insurance policies and products are required globally. The international market offers a significant potential that should be exploited by the brokers. Also, the general market is poised for rapid growth.


Local brokers operate as relatively smaller units. The major key players in the market may enter into the market segment that may make it difficult for the brokers to find a market.  If such key players into the market in large numbers, it would be difficult for the brokers to find clients, a move that may reduce their profits and lead to a possible collapse of the local brokers. Consequently, the continuous advancements in technology pose a major threat to the brokers. The advancing technology may render insurance products obsolescent. The brokers may, therefore, be of no importance to clients. Additionally, demand for insurance products and services may reduce as a result of the economic slowdown. In the case of any economic slowdown, there are higher chances that customers’ demand for insurance policies and products may significantly reduce. The Economic slowdown may make most of the businesses to experience huge losses that may result to the closure of different firms. Subsequently, Yen/Euro may move against the dollar. In an event that Yen/Euro move against the dollar, brokers are likely to face a financial crisis that may lead to their closure and losses incurred. Additionally, following the current demands for insurance products, more investors may be attracted into the insurance business. Such entries of the investors into the business is likely to create high levels of competition in the market.

2)    Agents (such as Co-operators)


Agents allocates more funds in the daily operations of the business. They allocate more funds for advertisements. In their annual budgets, large funds are channeled to cater for advertisement expenses. Such huge expenses on advertisements ensures that there is continuous awareness creation that in turn encourages attraction of more customers. Increased number of clients result to increase in the profits realized by the insurance agents. Additionally, the insurance agents’ prices are comparatively lower which in turn attract more clients. It is also difficult to compete against agents’ commercial because they lack similar restrictions on underwriting as our markets.





The staff members of insurance agents are less motivated. They receive comparatively less salary as compared to our staff. The agents’ staff therefore are not aggressive in their duties and they appear less knowledgeable.

3)    Mass Markets


Just like insurance Agents, Mass markets allocate more funds for advertisements purposes. Their prices are also competitive. Such factors attract more customers.


Presently, mass markets are unknown to our clients as it is not local.

Current Company Products and Services

Jubilee Insurance Company is very critical in the current market. Currently, the main revenue collected by the company is the income generated by automobile premiums. Premiums paid for automobile insurance are relatively higher as compared to premiums paid for other covers. The main reason for high premiums from automobile is because automobile insurance is mandatory in the region (Honig & Karlsson, 2004). Every individual who owns an automobile is expected to insure the automobile because of the high risks associated with the automobiles. Additionally, the company deals with property insurance. Even though property insurance is not mandatory in the region, it is also beneficial to the company as a number of people insure their property with our company.

The success of our company significantly depends on our staff. The staff continuously explain to our esteemed clients that price is not the only criteria for the purchase of insurance. To effectively assure our clients on our operation plans, our advertisements inform people that our two offices are open five days a week and we also offer after- hours services so that we do not inconvenience our customers in any way. Additionally, we stress to our clients that we have been operational and active for more than twenty years.

In our company, we believe that favorable prices to our products is very essential. We also make sure that we are easily accessible, our products being readily available and affordable in the entire market. The brokers’ main duty is to enable clients understand what they are buying from our company.

Proposed Company Products and Services

For close to twenty years since the opening of the company, it has majorly dealt in insurance of automobiles. Premiums from automobiles that has been the main source of revenue for the Jubilee Insurance company. To diversify the products and services offered by the company, there have been proposals that the company to cover other products. The main proposal is the idea to offer insurance on health. Healthcare has been a major concern in the current world. Many people are in need of quality and affordable healthcare. Irrespective of the high need of quality healthcare, most people cannot afford the expenses associated with the provision of quality healthcare. The Jubilee is looking forward to offer insurance policy that covers health. In so doing, the company will increase its revenue collected as most people are in need of such an insurance cover.

Operational plan

To increase the total revenue collected by our company, operational plan must be effectively established (Chen, Yao & Kotha, 2009).

The following are the operational plan for our Company:

  • Focus on target markets:

The company put more emphasis on personal and business clients who are identified and selected to be insured. We should avoid allowing prospective clients to choose to insure with our company. We should not let customers choose our company to prevent our brokerage from attracting clients rejected from other brokers or customers who may cause problems to our company.

  • Build an insurance Partnership:

In most cases, do not wish to look for different brokers annually. They prefer dealing with the same broker consistently. Our company, therefore, strives to build stronger relationships with the customers. Arguably, our employees are very friendly to the customers helping in creating a strong bond between our company and our clients.

  • Emphasize service and ongoing support:

It is always advisable to embrace diversity in any form of business. Our company, therefore, has to avoid concentration on selling one kind of policy to our clients.

Marketing Strategy

To market our policies to clients effectively, strategies must be laid so that marketing process become a successful. The following are the marketing strategies that our company will employ to bring its products into the market:

1)    Through promotions

Our company has depended mostly on promoting the company’s name through newspapers and word of mouth. For the information about our company reach as many clients as possible, we must employ other alternative ways of ensuring the name of our company reach many potential customers. Promotions will ensure that our products reach potential clients effectively. For effective promotion:

  • All of our advertisements has to dwell more on our difference from other companies rather than emphasizing more on our prices. In so doing, our company will attract more clients.
  • We must strive to sell the good name of our company rather than our products.
  • We have to improve on the frequency of contacting our customers. Before any renewal, our customers must be contacted to ensure that the covers are up to date and sufficient.
  • Apart from our contact address that we have placed in newspapers along with our company’s advertisement, we should also concentrate on customers who may not get access to the newspapers.

2)    Effective distribution strategies

For our products to reach our target customers in time, well set distribution strategies must be laid. The following are the distribution strategies that our company will employ to ensure marketing of our products become effective:

  • Selection of the seniors: In our advertisements, more emphasis and considerations will be put the senior group of our market. Our company will consider sponsoring senior programs within the areas of our operations. In so doing, it will identify and support associations to attract more senior clients. The senior clients are represented by those who are retired together with those who are about to retire.
  • Insurance partners: Our staffs are expected to stress to the clients the importance of them controlling the stringency and the total number of claims.
  • Business partners

3) Emphasize on support and services

4) Building of partnership business based on the sale of accounts

5) The target should be directed to small businesses that lack access to group insurance plans.

6) Invest on acquiring other brokerages in our region of operation.

7) Focus is to be directed to the personal lines kind of businesses. Additionally, well managed, profit making and small family businesses should be targeted.

Financial forecast

Profit Statement

  1st year 2nd year 3rd year
Sales $ 54000 $ 28500 $ 44500
Direct Cost of Sales $ 0 $ 0 $ 0
Other Cost of Sales $ 0 $ 0 $ 0
Total Cost of Sales $ 0 $ 0 $ 0
Gross Margin $ 54000 $ 28500 $44500
Gross Margin % 100.00 100.00 100.00
Payroll $ 0 $ 0 $ 0
Marketing/Promotion $ 0 $ 0 $ 0
Profit before interest

And tax

$ 54000 $ 28500 $44500
Interest Expense $ 3767 $ 3767 $ 3767
Taxes incurred $ 15070 $ 7420 $ 12220
Net profit $ 35 163 $ 17313 $ 28513
Net profit/Sales 65.12% 60.75% 64.07%




Cash flow


  1st year 2nd year 3rd year
Cash Sales $ 13500 $ 7125 $ 11125
Cash from receivables $127,970 $ 129320 $39863
Subtotal cash from


$ 141470 $ 136445 $ 50988
Subtotal cash received $ 141 470 $ 136445 $ 50988
Bill payments $ 336628 $ 18582 $ 11347
Subtotal spent on operations $ 336628 $ 18582 $ 11347
Subtotal cash spent $ 336628 $ 18582 $11347
Net cash flow $ 195 158 $ 117863 $39641
Cash balance $ 207 482 $325345 $364986



Return on Investment (ROI)

Return on Investment refers to the benefit that an investor obtains from any form of investment. It measures the efficiency of an investment. Consequently, it is used in comparison of efficiency of different investments.


ROI = (Gain from investment – Cost of investment)

Cost of investment


Sources of funding

The main source of funding for our company is partners’ contributions, ploughed profits, borrowing from financial institutions.

Summary of Jubilee Insurance Company

Management Summary

Our company values its staff due to their above average performance. The company strives to maintain its staff by providing them with a better salary, provision of incentives and appraisal. Consequently, the company is very slow in hiring new employees. In particular scenarios, we employ new staff only the growth qualifies the need to hire any additional employee. Retaining of the employees is very beneficial to the company as the team can quickly improve their relationships with our clients. In our company, most of the employees have offered their services to the company for more than ten years. The strategy has ensured that our company has a long lasting relationship with our customers. The plan above is essential for the development of our business. The firm should invest in the plan as it provides a clear roadmap on how to boost the revenue collected by the company.


Abrams, R. (2003). The successful business plan: secrets & strategies. The Planning Shop.

Chen, X. P., Yao, X., & Kotha, S. (2009). Entrepreneur passion and preparedness in business plan presentations: a persuasion analysis of venture capitalists’ funding decisions. Academy of Management Journal, 52(1), 199-214.

Honig, B., & Karlsson, T. (2004). Institutional forces and the written business plan. Journal of Management, 30(1), 29-48.

Karlsson, T., & Honig, B. (2009). Judging a business by its cover: An institutional perspective on new ventures and the business plan. Journal of Business Venturing, 24(1), 27-45.

Mason, C., & Stark, M. (2004). What do investors look for in a business plan? A comparison of the investment criteria of bankers, venture capitalists and business angels. International Small Business Journal, 22(3), 227-248.