Becoming an independent insurance agent is like becoming an entrepreneur. You are essentially starting your own business, and, like all great start-ups, you’ll need a business plan to keep you grounded and on track with your goals.
4 Reasons You Must Have a Business Plan for Your Medicare Business
1. To Assess Financial Needs and Requirements
Starting a business isn’t cheap. You’ll need to consider all the start-up costs associated with it. At a minimum, you’ll need a website, business cards, and some basic office supplies. Not to mention the cost of licenses and certifications. How much will these things cost before you even make any money? A business plan will help you to stop and assess your financial requirements to start, and stay in, your business.
2. To Gain Insight into Your Market
Before you run out there and try to market to any- and everyone eligible for Medicare, stop and think about who you want to market to. You see, the best marketing doesn’t cast a huge net. It starts with a niche and grows over time. For example, do you want to be a specialist in DSNP’s? Or how about specifically marketing to those coming off of group coverage? Your business plan will force you to think about who you want to reach.
3. To Determine Your Marketing Methods
Having a business plan that asks the right questions helps you realize that you can’t market the same way to everyone. Hanging flyers in community centers might work for one crowd, but not another. Hosting a booth at a pharmacy might be effective for a completely different crowd. And for some markets, only seminars will do. Now that you know your ideal market, what they’re like, and what their needs are, you can determine the best way to reach them without wasting your efforts and your money.
4. To Set Goals
A business plan can help keep you accountable by requiring you to write down goals that you can measure. This will also help you forecast how much money you’ll make if you meet those goals. Just make sure that you set realistic goals that are S.M.A.R.T.
While it is possible to build a successful business without a business plan, it is certainly easier to be successful with an action plan laid out. This tool helps you gain a clearer vision of where you are going and how to get there. Essentially, your business plan is your opportunity to ask yourself the important questions that need answering before you dive headfirst into the insurance industry. It’s the first step to your long-term business success. Download your business plan template below.