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Form preview State farm business proposal f... The Business Proposal helps State Farm evaluate your understanding of the agency opportunity and what it takes to succeed. You will hear much more around this component of the process at the Career Understanding seminar but can use the following information to begin planning and preparing your Business Proposal. Research is vital in building a strong Business Proposal. Market Research We recommend you begin by researching the local market area where you are pursuing an agency opportunity. Operating Budget Create an operating budget for your first five years as an agent. Include your start-up. Sales Production and Compensation Production and compensation estimates for the first five years of your agency Available resources to consider Career Understanding materials you will receive Your Agency Career Track Specialist ACT Specialist Market Agency Field Executives MAFEs State Farm agents in/around your area of interest Public resources see online list at the end of this document Online Business Resources We have listed below some resources that may assist you as you develop your business proposal. www. Vision How do you want to be perceived by your customers What should your office facility look like to your customers What will distinguish the level of service you provide to your customers How should your office systems and procedures function How will you continually build the State Farm Brand Agency Analysis Evaluate Internal/External Market Opportunities. What customer segments or needs present opportunities Competitive Review Who are the toughest competitors Why Do you provide better value than competitors Which ones Why How How accessible are you to customers Are you staffed adequately Are you considering adding staff Is your office environment customer friendly What skills and competencies do you and your staff possess Who do you consider role models to help you improve your agency What knowledge does your staff need to do a better job Goal Setting What marketplace trends will you address in your plan How will you maximize the return on your marketing investment Do you have plans to improve the marketing atmosphere of your office What is your staffing goal Will the identified opportunities require a change in your staffing Do you have systems to ensure proper customer service claim handing and marketing What skills/abilities of yours and your staff need to be developed to meet your goals What are your personal financial goals What drives your happiness How to accomplish a work / life balance. Action Plans What specific steps will be necessary to achieve each goal What marketing tools will you use When will you execute these activities How will you ensure that you or your team members have mastered new skills How do you plan to continue to sharpen your skills Determine where your business is coming from. Document how you will review and evaluate your business plan. Budget How much income would a multi-line policyholder produce in a single year In their lifetime with your agency What percent of that lifetime value will you spend to acquire / retain that policyholder today Estimate the fixed and variable costs in running your agency to determine the amount to be invested. Your Business Proposal should address the following in 8-10 pages Your strategy for meeting customer needs in the local market you are pursuing Your plan for investing in your agency Your assumptions about what factors shape the sales production and profitability of an agent Organize your written proposal into three main sections Local Market Context Discuss the demographics and growth opportunities in the prospective Agency location. How will this market research affect the Agency Building an Agency Capital Investment How much capital do you anticipate having accessible in the first 6 to 24 months How will investing in your Agency impact your other financial commitments Team Development What skill sets and experiences will you look for in team members How will you compensate them Sales Marketing Strategy Provide some specific examples of sales and marketing tactics that you would employ.
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