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Mortgage Broker Business Plan Template

Written by Dave Lavinsky

Mortgage Broker Business Plan

You’ve come to the right place to create your Mortgage Broker business plan.

We have helped over 10,000 entrepreneurs and business owners create business plans and many have used them to start or grow their Mortgage Broker companies.

Below is a template to help you create each section of your Mortgage Broker business plan.

Executive Summary

Business overview.

Davidson Mortgage, located in Tucson, Arizona, is a new mortgage brokerage specializing in residential mortgages. The company will operate in a professional setting, conveniently located next to several banks in the center of the shopping district. We offer a wide range of services to help our clients get a mortgage, including finding loan options, applying for the loans on the clients’ behalf, and completing all the paperwork. We strive to serve our clients with the utmost empathy to ensure they get the best mortgage for their situation.

Davidson Mortgage is headed by Harold Davidson. He is an MBA graduate from Arizona State University with 20 years of experience working in the finance industry. His passion is to help his clients qualify for their dream homes and provide them with a smooth process from start to finish.

Davidson Mortgage will focus on providing superior service to all of its clients to ensure they get the best mortgage possible. Our services include finding loan options, applying for loans on behalf of customers, and completing closing paperwork. Since customer service is our top priority, we will keep in touch with our clients after they have closed on the mortgage. Furthermore, Harold will create webinars, online courses, and other content to educate his clients and the local community on the mortgage lending process.

Customer Focus

Davidson Mortgage will primarily serve homebuyers interested in properties located in the Tucson, Arizona area. Tucson is a growing city with thousands of residents eager to purchase a new home. We expect our clientele to be equal parts first-time home buyers and existing homeowners.

Management Team

Davidson Mortgage is run by Harold Davidson. Harold has been a licensed mortgage broker for the past 20 years, working for several large firms. However, throughout his career, he desired to have a closer connection with his clients as well as have more flexibility to help them get their dream homes. He started this company in order to achieve those goals. In addition to his valuable experience, Harold also holds an MBA from Arizona State University.

Harold is joined by Bethany Peterson. She will serve as the company’s full-time assistant, who, among other things, will manage the company website, coordinate scheduling, and answer basic client questions. Bethany has experience working with C-level executives and has spent significant time as an administrator.

Success Factors

Davidson Mortgage is uniquely qualified to succeed due to the following reasons:

  • Davidson Mortgage will fill a specific market niche in the growing community we are entering. In addition, we have surveyed local realtors and homebuyers and received extremely positive feedback saying that they would consider making use of our services when launched.
  • Our location is in an economically vibrant area where new home sales are on the rise, and turnover in homes and rentals occurs often due to the upward mobility of residents.
  • The management team has a track record of success in the mortgage brokerage business.
  • The local area is currently underserved and has few independent mortgage brokers offering high customer service to homebuyers.

Financial Highlights

Davidson Mortgage is seeking a total funding of $250,000 of debt capital to open its office. The capital will be used for funding capital expenditures and location build-out, hiring initial employees, marketing expenses, and working capital.

Specifically, these funds will be used as follows:

  • Office design/build: $50,000
  • Three months of overhead expenses (payroll, rent, utilities): $100,00
  • Marketing expenses: $50,000
  • Working capital: $50,000

broker business plan

Company Overview

Who is davidson mortgage, davidson mortgage history.

After surveying the local customer base and finding a potential office, Harold Davidson incorporated Davidson Mortgage as an S-Corporation on 1/1/2023.

The business is currently being run out of Harold’s home office, but once the lease on Davidson Mortgage’s office location is finalized, all operations will be run from there.

Since incorporation, Davidson Mortgage has achieved the following milestones:

  • Found office space and signed Letter of Intent to lease it
  • Developed the company’s name, logo, and website
  • Hired an interior designer for the decor and furniture layout
  • Determined equipment and fixture requirements

Davidson Mortgage Services

Industry analysis.

Despite the pandemic hurting several industries, the mortgage brokers industry still performed strong and is projected to continue to do so. Last year, U.S. mortgage brokerages brought in revenues of $11.7 billion and employed 47,000 people. There were just over 12,000 businesses in this market.

However, the mortgage broker industry is highly fragmented, with the top two companies accounting for just over 11% of industry revenue. Furthermore, mortgage interest rates are on the rise, as well as housing prices, preventing many people from buying houses and applying for mortgages. These two factors significantly stunt the industry at present.

Despite these challenges, the industry is still projected to increase moderately throughout the rest of the decade. Though larger firms may dominate revenue and clientele, studies and surveys show that clients don’t necessarily favor working with large firms. Providing excellent service and personal touches throughout the process can help small firms succeed in the industry.

Customer Analysis

Demographic profile of target market.

Davidson Mortgage will primarily serve the residents of Tucson, Arizona. The area we serve has a significant population of people who are searching for their first home, as well as families and individuals who need a new home.

The precise demographics for Tucson, Arizona are:

Customer Segmentation

Davidson Mortgage will primarily target the following customer segments:

  • Existing homeowners
  • First-time home buyers

Competitive Analysis

Direct and indirect competitors.

Davidson Mortgage will face competition from other companies with similar business profiles. A description of each competitor company is below.

The Loan Store

Established in 2010, The Loan Store originates, finances, and sells mortgage and non-mortgage lending products throughout the United States. It offers a range of consumer credit products, such as home loan products, home equity loans, and unsecured personal loans, as well as home and personal loan servicing. The company claims to be one of the largest private, independent retail mortgage lenders in the U.S. Its current business channels include direct lending, affinity, branch retail, and servicing.

However, agents working with The Loan Store experience high turnover, resulting in little concern for maintaining ongoing relationships with clients. Also, the agents themselves are mixed in quality, ranging from part-time brokers with little experience or sales records to full-time brokers with long-term experience. There is no systematic company method for passing on knowledge from experienced to inexperienced brokers as all are competing with each other, to a certain extent, for commissions.

Direct Loan Connection

Founded in 2006, Direct Loan Connection (DLC) employs licensed mortgage professionals who have access to multiple lending institutions, including banks, credit unions, and trust companies. This access enables the company to offer a vast array of available mortgage products – ranging from first-time homebuyer programs to financing for the self-employed to financing for those with credit blemishes. In addition, to help homebuyers and homeowners, DLC offers commercial mortgages.

Though they are a local leader in the premium end of the market, they refuse to negotiate their broker’s fees and sometimes lose potential clients because of this. Davidson Mortgage’s fees will be far more reasonable.

Supreme Mortgage

Supreme Mortgage specializes in mortgage brokering and is committed to helping homebuyers, and homeowners get the best mortgage with the lowest interest rate. The brokerage works with more than 40 lenders who compete to provide mortgages and who pay Supreme Mortgage’s fee so that clients receive the service free of charge.

Some reviews of Supreme Mortgage point out the low-quality service offered by brokers, who have little training in customer service. Furthermore, Supreme Mortgage does not attempt to maintain long-term relationships with customers who will eventually purchase another home.

Competitive Advantage

Davidson Mortgage enjoys several advantages over its competitors. These advantages include:

  • Location: Davidson Mortgage’s location is near the center of town, in the shopping district of the city. It is visible from the street, where many residents shop for both day-to-day and luxury items.
  • Client-oriented service: Davidson Mortgage will have a full-time assistant to keep in contact with clients and answer their everyday questions. Harold Davidson realizes the importance of accessibility to his clients and will further keep in touch with his clients through monthly seminars on topics of interest.
  • Management: Harold Davidson has been extremely successful working in the mortgage brokerage sector and will be able to use his previous experience to grant his clients detailed insight into the world of home loans. His unique qualifications will serve customers in a much more sophisticated manner than many of Davidson Mortgage’s competitors.
  • Relationships: Having lived in the community for 25 years, Harold Davidson knows many of the local leaders, newspapers, and other influencers.

Marketing Plan

Davidson Mortgage will use several strategies to promote its name and develop its brand. By using an integrated marketing strategy, Davidson Mortgage will win clients and develop consistent revenue streams.

Brand & Value Proposition

The Davidson Mortgage brand will focus on the company’s unique value proposition:

  • Client-focused residential mortgage brokerage services, where the company’s interests are aligned with the customer
  • Service built on long-term relationships and personal attention
  • Big-firm expertise in a small-firm environment

Promotions Strategy

The promotions strategy for Davidson Mortgage is as follows:

Website/SEO

Davidson Mortgage will invest heavily in developing a professional website that displays all of the features and benefits of working with the mortgage broker. It will also invest heavily in SEO so the brand’s website will appear at the top of search engine results.

Social Media

Davidson Mortgage will invest heavily in a social media advertising campaign. Harold and Bethany will create the company’s social media accounts and invest in ads on all social media platforms. It will use targeted marketing to appeal to the target demographics.

Davidson Mortgage understands that the best promotion comes from satisfied customers. The company will work to partner with local realtors by providing economic or financial incentives for every new client produced. This strategy will increase in effectiveness after the business has already been established.

By offering webinars and courses on topics of interest in the office or other locations, Harold Davidson will encourage residents in the community to become comfortable with the expertise and character of Davidson Mortgage. These webinars will generally be offered free of charge as general promotion and for direct networking.

Davidson Mortgage’s pricing will rely on the standard industry rates in order to be perceived as neither a luxury nor a discount broker. The standard rate for brokering a mortgage is 1-2% of the loan amount. By seeking quality clients and maintaining long-term relationships with them, Davidson Mortgage will fend off pressure to discount their rates, even in down markets.

Operations Plan

The following will be the operations plan for Davidson Mortgage.

Operation Functions:

  • Harold Davidson is the founder and will operate as the President of the company. He will be in charge of all the general operations and executive functions within the company. Furthermore, until he hires additional staff, he will personally help all clients who agree to utilize the company’s services.
  • Harold is assisted by his long-term assistant Bethany Peterson. She will serve as the company’s full-time assistant and will manage the company website, coordinate scheduling, and answer basic client questions. Bethany has experience working with C-level executives and has spent significant time as an administrator.
  • As the business grows and Harold takes on more clients, he will hire other mortgage brokers to assist him.

Milestones:

The following are a series of steps that will lead to the company’s long-term success. Davidson Mortgage expects to achieve the following milestones in the next six months:

3/202X            Finalize lease agreement

4/202X            Design and build out Davidson Mortgage office

5/202X            Hire and train initial staff

6/202X            Kickoff of promotional campaign

7/202X            Reach break-even

8/202X            Reach 25 ongoing clients

Financial Plan

Key revenue & costs.

Davidson Mortgage’s revenues will come primarily from the commissions earned from residential mortgage sales.

The major cost drivers for the company will include employee salaries, lease payments, and marketing expenses.

Funding Requirements and Use of Funds

Key assumptions.

The following outlines the key assumptions required to achieve the revenue and cost numbers in the financials and to pay off the startup business loan.

  • Annual lease: $30,000

Financial Projections

Income statement, balance sheet, cash flow statement, mortgage broker business plan faqs, what is a mortgage broker business plan.

A mortgage broker business plan is a plan to start and/or grow your mortgage broker business. Among other things, it outlines your business concept, identifies your target customers, presents your marketing plan and details your financial projections.

You can easily complete your Mortgage Broker business plan using our Mortgage Broker Business Plan Template here .

What are the Main Types of Mortgage Broker Businesses?

There are a number of different kinds of mortgage broker businesses , some examples include: Retail Mortgage Broker, Business/Corporate Mortgage Broker, or Private Mortgage Brokers.

How Do You Get Funding for Your Mortgage Broker Business Plan?

Mortgage Broker businesses are often funded through small business loans. Personal savings, credit card financing and angel investors are also popular forms of funding.

What are the Steps To Start a Mortgage Broker Business?

Starting a mortgage broker business can be an exciting endeavor. Having a clear roadmap of the steps to start a business will help you stay focused on your goals and get started faster.

1. Develop A Mortgage Broker Business Plan - The first step in starting a business is to create a detailed mortgage broker business plan that outlines all aspects of the venture. This should include potential market size and target customers, the services or products you will offer, pricing strategies and a detailed financial forecast. 

2. Choose Your Legal Structure - It's important to select an appropriate legal entity for your mortgage broker business. This could be a limited liability company (LLC), corporation, partnership, or sole proprietorship. Each type has its own benefits and drawbacks so it’s important to do research and choose wisely so that your mortgage broker business is in compliance with local laws.

3. Register Your Mortgage Broker Business - Once you have chosen a legal structure, the next step is to register your mortgage broker business with the government or state where you’re operating from. This includes obtaining licenses and permits as required by federal, state, and local laws.

4. Identify Financing Options - It’s likely that you’ll need some capital to start your mortgage broker business, so take some time to identify what financing options are available such as bank loans, investor funding, grants, or crowdfunding platforms.

5. Choose a Location - Whether you plan on operating out of a physical location or not, you should always have an idea of where you’ll be based should it become necessary in the future as well as what kind of space would be suitable for your operations.

6. Hire Employees - There are several ways to find qualified employees including job boards like LinkedIn or Indeed as well as hiring agencies if needed – depending on what type of employees you need it might also be more effective to reach out directly through networking events.

7. Acquire Necessary Mortgage Broker Equipment & Supplies - In order to start your mortgage broker business, you'll need to purchase all of the necessary equipment and supplies to run a successful operation.

8. Market & Promote Your Business - Once you have all the necessary pieces in place, it’s time to start promoting and marketing your mortgage broker business. This includes creating a website, utilizing social media platforms like Facebook or Twitter, and having an effective Search Engine Optimization (SEO) strategy. You should also consider traditional marketing techniques such as radio or print advertising. 

Learn more about how to start a successful mortgage broker business:

  • How to Start a Mortgage Broker Business
  • REALTOR® Store

broker business plan

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  • Marketing Social Media Sales Tips & Techniques MLS & Online Listings View More
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  • Right Tools, Right Now
  • NAR REALTOR Benefits® Bringing you savings and unique offers on products and services just for REALTORS®.
  • Directories Complete listing of state and local associations, MLSs, members, and more.
  • Become a Member As a member, you are the voice for NAR – it is your association and it exists to help you succeed.
  • Logos and Trademark Rules Only members of NAR can call themselves a REALTOR®. Learn how to properly use the logo and terms.
  • Your Membership Account Review your membership preferences and Code of Ethics training status.
  • Highlights & News Get the latest top line research, news, and popular reports.
  • Housing Statistics National, regional, and metro-market level housing statistics where data is available.
  • Research Reports Research on a wide range of topics of interest to real estate practitioners.
  • Presentation Slides Access recent presentations from NAR economists and researchers.
  • State & Metro Area Data Affordability, economic, and buyer & seller profile data for areas in which you live and work.
  • Commercial Research Analysis of commercial market sectors and commercial-focused issues and trends.
  • Federal Advocacy From its building located steps away from the U.S. Capitol, NAR advocates for you.
  • REALTORS® Political Action Committee (RPAC) Promoting the election of pro-REALTOR® candidates across the United States.
  • State & Local Advocacy Resources to foster and harness the grassroots strength of the REALTOR® Party.
  • REALTOR® Party A powerful alliance working to protect and promote homeownership and property investment.
  • Get Involved Now more than ever, it is critical for REALTORS® across America to come together and speak with one voice.
  • All NAR & Affiliate Courses Continuing education and specialty knowledge can help boost your salary and client base.
  • Code of Ethics Training Fulfill your COE training requirement with free courses for new and existing members.
  • Continuing Education (CE) Meet the continuing education (CE) requirement in state(s) where you hold a license.
  • Designations & Certifications Acknowledging experience and expertise in various real estate specialties, awarded by NAR and its affiliates.
  • Library & Archives Offering research services and thousands of print and digital resources.
  • Commitment to Excellence (C2EX) Empowers REALTORS® to evaluate, enhance and showcase their highest levels of professionalism.
  • NAR Academy at Columbia College Academic opportunities for certificates, associates, bachelor’s, and master’s degrees.
  • NAR Newsroom Official news releases from NAR.
  • REALTOR® Magazine Advancing best practices, bringing insight to trends, and providing timely decision-making tools.
  • Blogs Commentary from NAR experts on technology, staging, placemaking, and real estate trends.
  • Newsletters Stay informed on the most important real estate business news and business specialty updates.
  • Leadership & Staff National, state & local leadership, staff directories, leadership opportunities, and more.
  • History Founded as the National Association of Real Estate Exchanges in 1908.
  • Strategic Plan NAR’s operating values, long-term goals, and DEI strategic plan.
  • Governing Documents Code of Ethics, NAR's Constitution & Bylaws, and model bylaws for state & local associations.
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  • Establishing Your Business

Quick Takeaways

  • Create your brand
  • Build your technology platform
  • Establish a lead generation funnel

Source: 8-Steps to Start a Real Estate Brokerage & Actually Make Money ( Kyle Handy , Oct. 27, 2021)

You’ve finally made the decision to open your own brokerage. What do you need to know?  Learn the steps to make a successful transition from agent to owner.

There are a variety of brokerage business models to choose from—traditional, flat fee, a la carte and 100% commission. Find out which model will work best for your brokerage. Writing a business plan allows you to create a detailed roadmap for your firm’s future and how you will achieve those plans. In your business plan, you should include financial planning, marketing strategies and hiring and personnel.

NAR has curated a list of useful websites providing more information to help you establish your new brokerage.

See References for more information.

Latest on this topic

mentoring

Common Brokerage Models

Line drawing of a laptop with a teacher and students on the screen

Education: Management and Leadership

NAR Library & Archives has already done the research for you. References (formerly Field Guides) offer links to articles, eBooks, websites, statistics, and more to provide a comprehensive overview of perspectives. EBSCO articles ( E ) are available only to NAR members and require the member's nar.realtor login.

From the REALTOR® Store

Real Estate Brokerage Essentials® - Real Estate Brokerage Essentials®: Navigating Legal Risks and Managing a Successful Brokerage, Fourth Edition is the most comprehensive business tool for brokers to run their offices efficiently and minimize their risk for legal liability. This is a must have for all Brokers! (Item 126-359)

Broker to Broker: Management Lessons from America's Most Successful Real Estate Companies - Broker to Broker takes a unique approach to brokerage management by bringing you the ideas, strategies and lessons brokers and sales managers are implementing today. Compiled from the "For Brokers" section of REALTOR® Magazine it offers the best tips and advice on how to manage a residential real estate brokerage. (Item 141-60)

Sample Employee Manual for Brokers - Are you looking for assistance in developing an employee manual? NAR has a sample manual for you to tailor for your employees! (Item E126-155) Note: This employee manual is NOT intended to be used as a policy manual for independent contractors.

Striking Out on Your Own

5 Mistakes I Made Opening My Real Estate Brokerage ( Janis Benstock Real Estate Academy , May 25, 2023)

The best thing I ever did for the health of my brokerage was to ask for help by hiring a business strategist. It has saved me so much time on the learning curve and it’s difficult to even put a number on the return on my investment.

How to Start a Real Estate Brokerage ( TRUIC , May 11, 2023)

  • Typical startup costs are:
  • Real Estate Broker’s License - $1,500
  • Office lease deposit - $2,000
  • First month’s rent - $2,000
  • Utilities, Telephone, Internet - $250 per month
  • Office signage - $2,000
  • Marketing expenses - $2,000 per month
  • Employee expenses - (depends on the number of agents)

The 8-Step Guide to Starting a Real Estate Brokerage ( Fit Small Business , Mar. 30, 2023)

If you are a leader (a person who guides and communicates well with others), you have the first building block to being a successful broker. However, if you are the “bossy type” who likes to bark orders, tell others what to do, or believe that only your opinion counts, then being a broker is not for you.

Making the Transition From Top Producer to Broker-owner ( REALTOR® Magazine , May 4, 2021)

For other real estate practitioners thinking about making the transition from top producer to broker-owner, consider joining your local chamber of commerce. Get to know other professionals in your marketplace. Ask the chamber to support your office’s grand opening, which can help spread the word about your new brokerage and build those valuable relationships with members of the community.

How to Start a Real Estate Brokerage ( Placester )

Depending on the type of real estate brokerage you want to start, you’re looking at startup costs of at least $10,000. And that’s if you’re bootstrapping it and jumping in with the bare essentials. Thinking about opening up a brokerage under a franchise? Costs can easily hit $200,000, and that doesn’t include the ongoing fees you’ll be liable for like license renewals.

Creating a Business Plan and Choosing a Brokerage Model

Infographic: Establishing Your Business

7 Steps to Writing a Real Estate Business Plan (+ Worksheet) ( The Close , Apr. 17, 2023)

A killer business plan forces you to think through your goals and objectives, as well as your budget, so that you have a real chance of success right from the beginning. It keeps you realistic and establishes a way for you to clearly monitor and evaluate your success. 

Creating a 2023 Real Estate Business Plan ( realtor.com® , Feb. 1, 2023)

The most important feature of the plan is that you are brutally honest with the inputs. If, for example, real estate is a part-time business for you, either by design or because your market is seasonal, recognize that this will affect all your metrics, top and bottom lines, and your expected outcomes.  If, alternatively, your market is growing rapidly and you will need additional help to manage it and maintain an expected level of service, recognize that and the associated costs involved in recruiting, training. and managing new people.

What Are the Different Brokerage Models an Agent Can Choose From? ( PropStream , Jan. 4, 2023)

Taking a cue from popular subscription-based businesses in other industries (like Netflix and Spotify), subscription-based brokerages usually offer agents monthly or yearly service plans.

Agents can often choose from multiple pricing tiers based on their needs. For example, you might pay a base fee for using the brokerage as a storefront and co-working space (where you can meet clients) and a higher fee for additional access to marketing software, training, and other tools and resources.

National vs. Boutique vs. Virtual Brokerages: Which is Right for You? ( Aceable Agent , Jan. 20, 2023)

Virtual brokerages, also known as cloud brokerages, are online only with no physical location. Since most agents do the bulk of their work from a home office, a virtual brokerage makes a lot of sense. This this especially true for seasoned agents that have a large contact list and don’t need as much training.

The Ultimate Guide to Creating a Real Estate Business Plan + Free Template ( Placester )

The length of business plans vary, but they generally outline between one and five years. For our purposes, we’ve used a length of three years. Few agents are able to fully develop their business in only a year, while planning five years into the future can be very speculative. For most new agents, three years is a reasonable time frame for achieving a degree of financial success and establishing a viable career in the industry.

Most business plans fall into one of two common categories: traditional or lean startup. Traditional business plans are more common, use a standard structure, and encourage you to go into detail in each section. They tend to require more work upfront and can be dozens of pages long. Lean startup business plans are less common but still use a standard structure. They focus on summarizing only the most important points of the key elements of your plan. They can take as little as one hour to make and are typically only one page.

Useful Websites

U.S. Small Business Administration  — This website should be the first stop for anyone wanting to start a business. Topics covered include startup basics, writing a business plan, financing, marketing, employment, and tax topics. This site also has special areas for women business owners, veterans, minorities, Native Americans and young entrepreneurs. You can also find a local SBA office for further assistance.

SCORE Association  — SCORE, the nation’s largest network of volunteer, expert business mentors, is dedicated to helping small businesses get off the ground, grow and achieve their goals. Since 1964, we have provided education and mentorship to more than 11 million entrepreneurs.

Entrepreneur Magazine  — From choosing a business structure to naming your business, this website highlights the nitty-gritty basics of business star-ups. How-to guides, online newsletters and a resource center of articles provide helpful information for your start-up.

Inc.com — Inc.'s website provides information on starting, growing, and leading your business.

America’s Small Business Development Centers ( SBDC) — America’s SBDC represents America’s nationwide network of Small Business Development Centers (SBDCs) – the most comprehensive small business assistance network in the United States and its territories. There are nearly 1,000 local centers available to provide no-cost business consulting and low-cost training to new and existing businesses. Small business owners and aspiring entrepreneurs can go to their local SBDCs for FREE face-to-face business consulting and at-cost training on a variety of topics.

Minority Business Development Agency - MBDA is an agency of the U.S. Department of Commerce that promotes the growth of minority-owned businesses through the mobilization and advancement of public and private sector programs, policy, and research.

National Association of Women Business Owners (NAWBO) — NAWBO is the only dues-based organization representing the interests of all women entrepreneurs across all industries; and with chapters across the country. With far-reaching clout and impact, NAWBO is a one-stop resource to propelling women business owners into greater economic, social and political spheres of power worldwide.

Books, eBooks & Other Resources

Ebooks.realtor.org.

The following eBooks and digital audiobooks are available to NAR members:

18 Steps for Starting Your Business (eBook)

The Accidental Startup (eBook)

Business Made Simple (Audiobook)

Business Plans Kit for Dummies (eBook)

Business Plans That Work: A Guide for Small Business (eBook)

The Complete Idiot's Guide to Starting Your Own Business (eBook)

The Fearless Woman's Guide to Starting a Business (Audiobook)

How to Write a Business Plan (eBook)

How to Write a Business Plan (EBSCO eBook)

Launching While Female (eBook)

The Real Estate Entrepreneur: Everything You Need to Know to Grow Your Own Brokerage (eBook)

Six Steps to Small Business Success (eBook)

Start a New Real Estate Brokerage, Economically! (eBook)

Starting a Business for Dummies (eBook)

Write Your Business Plan (eBook)

Your First Business Plan (eBook)

Books, Videos, Research Reports & More

As a member benefit, the following resources and more are available for loan through the NAR Library. Items will be mailed directly to you or made available for pickup at the REALTOR® Building in Chicago.

Real Estate Brokerage: A Management Guide (Chicago: Dearborn, 2004) HF 1375 C99 Ed. 6

Have an idea for a real estate topic? Send us your suggestions .

The inclusion of links on this page does not imply endorsement by the National Association of REALTORS®. NAR makes no representations about whether the content of any external sites which may be linked in this page complies with state or federal laws or regulations or with applicable NAR policies. These links are provided for your convenience only and you rely on them at your own risk.

Real Estate | How To

How to Write a Real Estate Business Plan (+ Free Template)

Published June 30, 2023

Published Jun 30, 2023

Gina Baker

REVIEWED BY: Gina Baker

Jealie Dacanay

WRITTEN BY: Jealie Dacanay

This article is part of a larger series on How to Become a Real Estate Agent .

  • 1 Write Your Mission Statement
  • 2 Conduct a SWOT Analysis
  • 3 Set Specific & Measurable Goals
  • 4 Plan Your Marketing Strategies & Tactics
  • 5 Create a Lead Generation & Nurturing Strategy
  • 6 Calculate Your Income Goal
  • 7 Set Times to Revisit Your Business Plan
  • 8 Why Agents Need a Real Estate Business Plan
  • 9 Real Estate Business Plan Examples & Templates
  • 10 Bottom Line
  • 11 Frequently Asked Questions (FAQs)

A real estate business plan lays the groundwork and provides direction on income targets, marketing tactics, goal setting, lead generation, and an overview of your industry’s competition. It describes your company’s mission statement in detail and assesses your SWOT (strengths, weaknesses, opportunities, and threats) as an organization. Business plans should include measurable goals and financial projections that you can review periodically throughout the year to ensure you meet your goals.

Continue reading to see real estate business plan examples and discover how to write a real estate business plan. Start by making your own by downloading and using the free real estate business plan template we’ve provided below.

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Real Estate Business Plan Template

Real estate business plan template.

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💡Quick tip:

Market Leader provides a comprehensive paid inbound lead, automated marketing, and CRM solution to help agents acquire, engage, and nurture real estate leads.

Furthermore, Market Leader offers and guarantees you a number of exclusive seller and buyer leads in your target niche at a monthly rate.

1. Write Your Mission Statement

Every real estate agent’s business plan should begin with a mission statement, identifying your values and why your business exists. Your mission statement serves as the guide to achieving your ultimate business objective. When you create a solid clear mission statement, all other items identified in your realtor business plan should be aimed at fulfilling this statement.

A screenshot of Compass' website.

Compass’ mission statement: “Our mission is to help everyone find their place in the world.” (Source: Compass )

Your mission statement should identify your target audience, what product or service you provide, and what makes your business distinct. As seen in the example above, a powerful mission statement should be short and concise but sums up a business objective.

Let’s take Compass’ mission statement above as an example: “Our mission is to help everyone find their place in the world.” The statement identifies what the company offers, for what reasons, and who it benefits.

2. Conduct a SWOT Analysis

SWOT is an acronym that stands for a business’ strengths, weaknesses, opportunities, and threats. The primary objective of these four elements is to assess a business by evaluating internal and external factors that can drive decision-making and help you make more money . Conducting a SWOT analysis as you develop your business plan for real estate uncovers opportunities to differentiate yourself from the massive competition currently on the market.

Strengths & Weaknesses

Strengths and weaknesses are internal parts of your organization. Strengths identify what product or services you provide better than others, your access to resources, and items that benefit your customers. Weaknesses are items that need improvement, lack of resources, or what your competition does better. These are items within your control to change because you can convert a weakness into a strength.

See the example below if “Agent X” was doing their SWOT analysis:

Opportunities & Threats

External factors drive opportunities and threats and are areas you can take advantage of to benefit your business. Examples of opportunities can be shifts in the current marketplace, emerging trends you can capitalize on, features that competitors lack, or even changes with your competitors. Threats, on the other hand, are anything that can negatively impact your business. You don’t have control over changing the opportunities or threats, but you can develop a practice to anticipate and protect your business against the threats.

The opportunities and threats for “Agent X” would be:

When you complete your SWOT analysis, use it as a guide when creating strategies to meet your business objectives. To gain the most benefit from creating a SWOT analysis, make sure you are being realistic about your business and evaluating it in its present state. You don’t want to be unrealistic by listing strengths or opportunities that don’t exist yet, and you want to allocate time and money to the most impactful solution to your business issues.

If “Agent X” completed the above SWOT analysis, a few strategies they could derive would be:

  • Incentivize agents to keep them at the brokerage for longer
  • Implement a technology-based key machine to reduce lost keys and keep the team accountable
  • Find a competitive advantage against competing brokerages and use that in marketing messages

Example of Zillow Premier Agent Agent Finder advertising for three featured agents.

Zillow agent finder (Source: Zillow )

To help agents locate other brokerages operating in your preferred market, agents can use Zillow’s agent finder page as a research tool to see which agents or brokerages are operating in a specific area. You can find an agent by location, name, specialty, and language. Once you click on a Zillow profile , you can read their reviews, see their team members, contact and website information, and property listings. Take a deep dive into your competitor profiles and can use the information to implement strategies within your own business.

Visit Zillow

Read how our experts feel about this real estate lead generation company in our Zillow Premier Agent review .

3. Set Specific & Measurable Goals

You’re ready to set some business goals after clearly defining your mission statement and SWOT analysis. Goals can help set the tone to increase your performance and drive your business in the right direction. Your goals should have a definitive way to show progress, which can be a prime motivator to keep you on track to achieving them.

Each goal should follow a pattern to identify set criteria. This will ensure that your daily efforts are performed to meet business objectives within a set period. A way to do this is by using SMART goals:

Examples of SMART goals for agents or brokerages:

  • Increase closed transactions by 20% to a total of 150 deals within the next year
  • I will ask all closed clients for a referral and review within 30 days of closing the deal

Goals can be split into short-term and long-term goals. Short-term goal lengths vary between days and weeks but do not exceed six months. Short-term goals can also be worked on simultaneously with long-term goals. Long-term goals can take up to six months or more to complete and require careful planning and perseverance. A mix of short-term and long-term goals will help you maintain motivation.

All goals are equally important; however, success will stem from how you prioritize each one. Slowly add on additional goals as you have the capacity and feel comfortable with the current progress of your current set of goals. Without identifying your business goals, you’ll leave your results up to luck to attain your business objectives.

4. Plan Your Marketing Strategies & Tactics

Developing marketing strategies and tactics and implementing them help you identify and locate your current value proposition in the real estate industry, along with specific timelines for execution. In addition to determining your overall business objectives and goals, your marketing strategy and plan should include the following:

  • Pinpoint general marketing goals
  • Estimate projected marketing budget
  • Know your geographic farm area data and identify your target niche audience
  • Analyze market competition
  • Identify your unique selling proposition
  • Establish a timeline and set your plan in motion
  • Track your progress and readjust as needed

While a marketing strategy identifies the overall marketing goals of your business, developing marketing tactics will help you achieve those individual goals. They can include referral business tactics, retention efforts, and ways to acquire new customers. For example, you can offer incentives to anyone who refers your business, or you can implement new email drip campaigns to help increase lead conversion rates.

These tactics should have set key performance indicators (KPIs) to help you evaluate your performance. For instance, a KPI you can set for your business could be that referral business should exceed 20% of your lead generation sources.

If you’re unsure how to put together your marketing plan, check out our article Real Estate Marketing Plan Template & Strategy Guide and download the free template to get started.

Postcard campaign examples from ProspectsPLUS!.

Postcard campaign example (Source: ProspectsPLUS! )

If direct mail is part of your promotion strategy, services like ProspectsPLUS! can help easily create and distribute mailers to a targeted area. It also has options for postcards , brochures, newsletters , flyers, and folders. You can also send mailers to prospective clients by geographic or demographic farm areas through its campaigns. Check out its templates and mailing options today.

Visit ProspectsPLUS!

Read how our experts feel about this real estate direct mail service in our ProspectsPLUS! review .

5. Create a Lead Generation & Nurturing Strategy

Having a successful lead generation strategy will help you maintain business growth. Lead generation can be performed organically and through paid advertisements to attract and convert prospective clients. In addition to generating leads, agents should have systems to manage, nurture, and re-engage with contacts to maximize opportunities.

Generating leads through a multipronged approach is the best way to maintain lead flow. Use organic strategies like hosting an open house, reaching out to your sphere of influence, and attending networking events. Employ paid generation strategies, such as purchasing leads from a lead generation company or setting up a website to funnel potential clients. Your marketing strategies will directly correlate with your lead generation strategies.

Every lead is an opportunity, even if they don’t immediately convert into a deal. Effectively nurturing leads can make sure no opportunity falls through the cracks. Agents can nurture leads by continuously engaging and developing relationships with prospective leads . It’s important to provide prospective clients with a constant flow of essential and relevant information, depending on where they are in the real estate buying or selling process.

Here are the top lead generation companies for real estate agents and brokers:

Engage more efficiently with buyer and seller leads using Market Leader’s new feature Network Boost. Network Boost has shown a 40% increase in agents successfully connecting with leads. Market Leader social media experts design highly targeted and optimized ads for your Instagram and Facebook. As visitors engage with your ads, they will be prompted to complete a form and funnel directly into your Market Leader client relationship manager (CRM). This will also trigger an automatic marketing campaign that nurtures your clients and lets you know they are ready to engage with you personally. Try Market Leader’s Network Boost today.

6. Calculate Your Income Goal

Your income goal is one of the most critical items to be included in your business plan. While this may be more difficult for new agents who are still learning the business, it’s still necessary to estimate the amount of money you will earn for the year. Work with an experienced agent or mentor to help you estimate your monetary goals. For professional agents, review your previous years to judge your income goals for the upcoming year.

To calculate your income goal and the amount of work you’ll need to complete to get to that goal, you’ll need to have some basic number estimates:

  • Net income: The amount of money you will put in your pocket after commission splits with your real estate brokerage.
  • Fee split with brokerage: This is the agreed-upon commission split you have with your brokerage for each completed transaction. For example, if you have a 70/30 split with your brokerage, you will collect 70% of the commission, and your brokerage will receive a 30% commission for each deal.
  • Estimate of completed deals per year: You also want to estimate the number of deals you intend to complete yearly. Remember that some months will be busier than others, so make sure to account for holidays, weather, and your schedule.

Real Estate Yearly Goal Calculator

By figuring out these numbers, you can give yourself a realistic number for your income goal. Compute the gross income commission (GCI) or amount of money you must make before the commission splits and the average profit per deal and month you’ll need to reach your goal.

For a more detailed breakdown of your yearly goal, download and use our yearly goal calculator. Input your information into the highlighted yellow boxes, and the spreadsheet will automatically calculate the GCI, total deal count, and gross income you’ll have to earn each month to reach your goal. Adjust the average gross commission per deal and brokerage split as necessary.

FitSmallBusiness Year Goal Calculator

FitSmallBusiness Year Goal Calculato template.

For additional information on real estate agent salaries, review our article Real Estate Agent Salary: How Much Do Real Estate Agents Make?

7. Set Times to Revisit Your Business Plan

Business plans are only effective if you use them. A business plan is a roadmap for your business, and you’ll need to revisit it often to ensure you’re staying on track. It should be a constant resource to guide you through meeting your goals and business objectives, but it’s not necessarily set in stone if you need to make any changes.

Agents should revisit their business plans monthly to measure progress and make any changes to stay the course. If you find that you’re missing the times set for your goals, then you should continue to revisit your business plan regularly. Changing the business plan itself should occur annually once you can have a complete picture of your yearly performance. Evaluating the business plan can help you discover new strategies and ensure you have the appropriate resources for the upcoming year.

Pipedrive user dashboard

Overall status of sales activities in the dashboard (Source: Pipedrive )

Sales software like Pipedrive can help you track your overall business performance when revisiting your business plan. It presents company sales data in easy-to-visualize dashboards that track your business performance and contains forecasting tools to project future revenue. It can maintain company and team goals with progress tracking to keep goals top of mind.

Visit Pipedrive

Read how our experts feel about this real estate customer relationship manager (CRM) system in our Pipedrive review .

Why Agents Need a Real Estate Business Plan

A real estate business plan keeps you up to date on market developments and one step ahead of your competitors. It also enables you to test lead-generating tactics and create new marketing campaigns while keeping track of results over time. A solid business plan for a real estate agent presents the following:

  • Where you are at the moment
  • Where you would like to be
  • How you’re going to get there
  • How to evaluate and measure your performance
  • When and when to correct the course

Real Estate Business Plan Examples & Templates

Real estate agents and brokerages don’t have to build their business plans from scratch, as many resources provide different examples. Business plan templates can also have different objectives. Some are used to secure financing or help you focus on lead generation, while others are single-page plans meant to get you started.

Here are five real estate business plan examples you can use to create yours:

Lead Generation & Income Plan

Screenshot of Market Leader real estate business plan.

Market Leader business plan example (Source: Market Leader )

This business plan is from Market Leader, a third-party lead generation platform. It specializes in lead generation, marketing, and converting leads into customers with an attractive IDX (Internet Data Exchange) website and robust automation tools. Agents can also participate in purchasing leads through their lead products to receive a guaranteed number of leads per month.

A Single-page Business Plan

Single Page Business Plan example from pngfind.

Business plan for real estate (Source: PngFind )

Agents who are new to writing a business plan can start small. Business plans do not have to be multipage to be effective. This single-page business plan helps identify a single goal followed by three areas to focus on and five objectives for each focus area. As real estate agents begin to feel comfortable with goal setting and completion, they can continue to add to this single-page business plan with duplicate pages, identifying additional goals.

Business Plan for Real Estate Brokers

Screenshot of Real estate broker business plan example from AgentEDU.

Real estate broker business plan (Source: AgentEDU )

This robust real estate broker business plan is designed to address organization and management goals. It contains pages identifying personnel information like title, job description, and salary. The business plan also encourages the broker to identify operational goals for future personnel changes. It’s best suited for a broker with a larger team to help drive operational change.

Business Plan With Detailed Financials

Business plan with detailed company financial information.

Example of real estate agent business plan template (Source: FinModelsLab )

This multipage business plan contains eye-catching graphics and detailed company financial information for real estate agents and brokers seeking funding from outside investors. One of the last sections of the business plan is a financial planning section geared toward showing how viable your business is through your provided income statements, cash flow, and balance sheet reports.

Real Estate Developers’ Business Plan

Easy to edit real estate business plan template from Upmetrics.

Realtor business plan template sample (Source: Upmetrics )

Upmetrics’ real estate business plan templates are easy to edit and share and contain professional cover pages to help agents convert their business ideas into actionable goals. The business plans from Upmetrics are geared toward agents looking to transition into real estate development. This plan includes vital sections important for a developer to analyze, such as building location, demand for housing, and pricing.

Market Leader's CRM dashboard as viewed on tablet and phone devices.

Real estate CRM (Source: Market Leader )

Market Leader’s business plan is centered around driving more business through lead generation. It helps agents understand their lead sources, average sales price, and how much commission was earned in a given year. It also allows agents to set income and transactional goals for the following year.

Visit Market Leader

Bottom Line

Whether you are a new real estate agent or looking to grow your brokerage, writing a real estate business plan template will help you define the steps needed to build a successful business . It serves as a guided roadmap to help you achieve your business goals, identify areas of improvement, and provide guidance in all aspects of your business, from marketing, operations, and finance to your products and services. Business plans can help determine if your business is viable and worth the financial investment.

Frequently Asked Questions (FAQs)

What is a real estate business plan.

A real estate business plan is a document that presents an outline of your organizational goals. A business plan lays out future company goals and structured procedures to achieve them. Business plans commonly contain plans for one to five years at a time, though they can differ from investor to investor.

A real estate business plan will put you in a position to succeed while also assisting you in avoiding potential pitfalls. It serves as a guide to follow when things go as expected and when they diverge from the initial plan of action. Also, a real estate business plan will ensure that investors know the steps they need to take to succeed.

How do I jump-start my real estate business?

It is important to note that starting a real estate business is not a simple task. Before launching a firm in any field, entrepreneurs should spend numerous hours researching and developing a solid business plan. As you start your real estate business, use the following tips as guidance:

  • Think about your professional goals
  • Conduct extensive research
  • Organize your finances
  • Create a business plan
  • Establish an LLC
  • Make a marketing plan
  • Create a website
  • Start campaigns
  • Keep track of leads
  • Develop a network of connections

How can I grow my real estate business?

You can use multiple strategies and ways to grow your real estate business. They include:

  • Assess your current situation
  • Invest in your professional growth
  • Establish strategic alliances
  • Take advantage of omnichannel marketing
  • Start blogging
  • Create consistent social media profiles and campaigns
  • Improve your website
  • Consider working with a marketing company
  • Optimize your signs and direct mail

About the Author

Jealie Dacanay

Find Jealie On LinkedIn

Jealie Dacanay

Jealie is a staff writer expert focusing on real estate education, lead generation, marketing, and investing. She has always seen writing as an opportunity to apply her knowledge and express her ideas. Over the years and through her internship at a real estate developer in the Philippines, Camella, she developed and discovered essential skills for producing high-quality online content.

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Mortgage Broker Business Plan

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A mortgage broker firm can be profitable. Mortgage brokers frequently receive compensation from the loans they assist their clients in obtaining. A mortgage broker can establish a successful firm and earn a sizable income with the correct tactics and abilities.

So, planning to start or grow your mortgage broker firm? You will need precise planning too with good knowledge.

Need help writing a business plan for your mortgage broker business? You’re at the right place. Our mortgage broker business plan template will help you get started.

sample business plan

Free Business Plan Template

Download our free business plan template now and pave the way to success. Let’s turn your vision into an actionable strategy!

  • Fill in the blanks – Outline
  • Financial Tables

How to Write a mortgage broker Business Plan?

Writing a mortgage broker business plan is a crucial step toward the success of your business. Here are the key steps to consider when writing a business plan:

1. Executive Summary

An executive summary is the first section planned to offer an overview of the entire business plan. However, it is written after the entire business plan is ready and summarizes each section of your plan.

Here are a few key components to include in your executive summary:

Introduce your business:

  • This section may include the name of your mortgage broker business, its location, when it was founded, the type of mortgage broker business (E.g., traditional mortgage firm, online mortgage firm.), etc.

Market opportunity:

Mortgage services:.

  • For instance, you may include loan orientation, loan processing, and real-estate consultancy as some of your services.

Marketing & sales strategies:

Financial highlights:, call to action:.

Ensure your executive summary is clear, concise, easy to understand, and jargon-free.

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broker business plan

2. Business Overview

The business overview section of your business plan offers detailed information about your company. The details you add will depend on how important they are to your business. Yet, business name, location, business history, and future goals are some of the foundational elements you must consider adding to this section:

Business description:

  • Traditional mortgage broker: They work with a variety of lenders and offer the best to their clients.
  • Niche mortgage broker: These firms specialize in a certain type of mortgage or market segment
  • Wholesale mortgage broker: They frequently have access to a variety of loan lenders and can assist brokers in locating the most affordable rates and conditions.
  • Mortgage lender-brokerage firm: These companies are mortgage loan originators and brokers. They have loan officers that work with clients to acquire loans, but if they don’t have an appropriate product or rate for the client, they may also broker loans to other lenders.
  • Describe the legal structure of your mortgage broker company, whether it is a sole proprietorship, LLC, partnership, or others.
  • Explain where your business is located and why you selected the place.

Mission statement:

Business history:.

  • Additionally, If you have received any awards or recognition for excellent work, describe them.

Future goal:

This section should provide a thorough understanding of your business, its history, and its future plans. Keep this section engaging, precise, and to the point.

3. Market Analysis

The market analysis section of your business plan should offer a thorough understanding of the industry with the target market, competitors, and growth opportunities. You should include the following components in this section.

Target market:

  • For instance, first-time homebuyers, real estate investors, and self-employed borrowers can be your target market.

Market size and growth potential:

Competitive analysis:, market trends:.

  • For instance, the use of online portals to collect client information, using digital signatures to sign documents and usage of online tools is increasing, so how do you plan on coping with the trends?

Regulatory environment:

Here are a few tips for writing the market analysis section of your mortgage business plan:

  • Conduct market research, industry reports, and surveys to gather data.
  • Provide specific and detailed information whenever possible.
  • Illustrate your points with charts and graphs.
  • Write your business plan keeping your target audience in mind.

4. Products And Services

The product and services section should describe the specific services and products that will be offered to customers. To write this section should include the following:

  • Fixed-rate mortgages
  • Adjustable rates mortgages
  • Government-backed loans

Describe each service:

In short, this section of your mortgage broker plan must be informative, precise, and client-focused. By providing a clear and compelling description of your offerings, you can help potential investors and readers understand the value of your business.

5. Sales And Marketing Strategies

Writing the sales and marketing strategies section means a list of strategies you will use to attract and retain your clients. Here are some key elements to include in your sales & marketing plan:

Unique selling proposition (USP):

  • For example, it can include any particular services you provide, such as personalized support during the mortgage application process or access to niche lending programs.

Pricing strategy:

Marketing strategies:, sales strategies:, customer retention:.

Overall, this section of your mortgage broker business plan should focus on customer acquisition and retention.

Have a specific, realistic, and data-driven approach while planning sales and marketing strategies for your mortgage broker business, and be prepared to adapt or make strategic changes in your strategies based on feedback and results.

6. Operations Plan

The operations plan section of your business plan should outline the processes and procedures involved in your business operations, such as staffing requirements and operational processes. Here are a few components to add to your operations plan:

Staffing & training:

Operational process:, equipment & software:.

Adding these components to your operations plan will help you lay out your business operations, which will eventually help you manage your business effectively.

7. Management Team

The management team section provides an overview of your mortgage broker business’s management team. This section should provide a detailed description of each manager’s experience and qualifications, as well as their responsibilities and roles.

Founder/CEO:

Key managers:.

  • It should include, key executives(e.g. COO, CMO.), senior management, and other department managers (e.g. operations manager, sales manager.) involved in the mortgage broker business operations, including their education, professional background, and any relevant experience in the industry.

Organizational structure:

Compensation plan:, advisors/consultants:.

  • So, if you have any advisors or consultants, include them with their names and brief information consisting of roles and years of experience.

This section should describe the key personnel for your mortgage broker services, highlighting how you have the perfect team to succeed.

8. Financial Plan

Your financial plan section should provide a summary of your business’s financial projections for the first few years. Here are some key elements to include in your financial plan:

Profit & loss statement:

Cash flow statement:, balance sheet:, break-even point:.

  • This exercise will help you understand how much revenue you need to generate to sustain or be profitable.

Financing needs:

Be realistic with your financial projections, and make sure you offer relevant information and evidence to support your estimates.

9. Appendix

The appendix section of your plan should include any additional information supporting your business plan’s main content, such as market research, legal documentation, financial statements, and other relevant information.

  • Add a table of contents for the appendix section to help readers easily find specific information or sections.
  • In addition to your financial statements, provide additional financial documents like tax returns, a list of assets within the business, credit history, and more. These statements must be the latest and offer financial projections for at least the first three or five years of business operations.
  • Provide data derived from market research, including stats about the industry, user demographics, and industry trends.
  • Include any legal documents such as permits, licenses, and contracts.
  • Include any additional documentation related to your business plan, such as product brochures, marketing materials, operational procedures, etc.

Use clear headings and labels for each section of the appendix so that readers can easily find the necessary information.

Remember, the appendix section of your mortgage company business plan should only include relevant and important information supporting your plan’s main content.

The Quickest Way to turn a Business Idea into a Business Plan

Fill-in-the-blanks and automatic financials make it easy.

crossline

This sample mortgage broker business plan will provide an idea for writing a successful mortgage broker plan, including all the essential components of your business.

After this, if you still need clarification about writing an investment-ready business plan to impress your audience, download our mortgage broker business plan pdf .

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Frequently asked questions, why do you need a mortgage broker business plan.

A business plan is an essential tool for anyone looking to start or run a successful mortgage broker business. It helps to get clarity in your business, secures funding, and identifies potential challenges while starting and growing your business.

Overall, a well-written plan can help you make informed decisions, which can contribute to the long-term success of your mortgage broker company.

How to get funding for your mortgage broker business?

There are several ways to get funding for your mortgage broker business, but self-funding is one of the most efficient and speedy funding options. Other options for funding are:

Small Business Administration (SBA) loan

Crowdfunding, angel investors.

Apart from all these options, there are small business grants available, check for the same in your location and you can apply for it.

Where to find business plan writers for your mortgage broker business?

There are many business plan writers available, but no one knows your business and ideas better than you, so we recommend you write your mortgage broker business plan and outline your vision as you have in your mind.

What is the easiest way to write your mortgage broker business plan?

A lot of research is necessary for writing a business plan, but you can write your plan most efficiently with the help of any mortgage broker business plan example and edit it as per your need. You can also quickly finish your plan in just a few hours or less with the help of our business plan software.

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Upmetrics Team

Upmetrics is the #1 business planning software that helps entrepreneurs and business owners create investment-ready business plans using AI. We regularly share business planning insights on our blog. Check out the Upmetrics blog for such interesting reads. Read more

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How to write a business plan for an insurance broker?

insurance broker business plan

Creating a business plan for an insurance broker is an essential process for any entrepreneur. It serves as a roadmap that outlines the necessary steps to be taken to start or grow the business, the resources required, and the anticipated financial outcomes. It should be crafted with method and confidence.

This guide is designed to provide you with the tools and knowledge necessary for creating an insurance broker business plan, covering why it is so important both when starting up and running an established business, what should be included in your plan, how it should be structured, what tools should be used to save time and avoid errors, and other helpful tips.

We have a lot to cover, so let's get to it!

In this guide:

Why write a business plan for an insurance broker?

  • What information is needed to create a business plan for an insurance broker?
  • What goes in the financial forecast for an insurance broker?
  • What goes in the written part of an insurance broker business plan?
  • What tool can I use to write my insurance broker business plan?

Being clear on the scope and goals of the document will make it easier to understand its structure and content. So before diving into the actual content of the plan, let's have a quick look at the main reasons why you would want to write an insurance broker business plan in the first place.

To have a clear roadmap to grow the business

Running a small business is tough! Economic cycles bring growth and recessions, while the business landscape is ever-changing with new technologies, regulations, competitors, and consumer behaviours emerging constantly.

In such a dynamic context, operating a business without a clear roadmap is akin to driving blindfolded: it's risky, to say the least. That's why crafting a business plan for your insurance broker is vital to establish a successful and sustainable venture.

To create an effective business plan, you'll need to assess your current position (if you're already in business) and define where you want the business to be in the next three to five years.

Once you have a clear destination for your insurance broker, you'll have to:

  • Identify the necessary resources (human, equipment, and capital) needed to reach your goals,
  • Determine the pace at which the business needs to progress to meet its objectives as scheduled,
  • Recognize and address the potential risks you may encounter along the way.

Engaging in this process regularly proves advantageous for both startups and established companies. It empowers you to make informed decisions about resource allocation, ensuring the long-term success of your business.

To get visibility on future cash flows

If your small insurance broker runs out of cash: it's game over. That's why we often say "cash is king", and it's crucial to have a clear view of your insurance broker's future cash flows.

So, how can you achieve this? It's simple - you need to have an up-to-date financial forecast.

The good news is that your insurance broker business plan already includes a financial forecast (which we'll discuss further in this guide). Your task is to ensure it stays current.

To accomplish this, it's essential to regularly compare your actual financial performance with what was planned in your financial forecast. Based on your business's current trajectory, you can make adjustments to the forecast.

By diligently monitoring your insurance broker's financial health, you'll be able to spot potential financial issues, like unexpected cash shortfalls, early on and take corrective actions. Moreover, this practice will enable you to recognize and capitalize on growth opportunities, such as excess cash flow enabling you to expand to new locations.

To secure financing

Whether you are a startup or an existing business, writing a detailed insurance broker business plan is essential when seeking financing from banks or investors.

This makes sense given what we've just seen: financiers want to ensure you have a clear roadmap and visibility on your future cash flows.

Banks will use the information included in the plan to assess your borrowing capacity (how much debt your business can support) and your ability to repay the loan before deciding whether they will extend credit to your business and on what terms.

Similarly, investors will review your plan carefully to assess if their investment can generate an attractive return on investment.

To do so, they will be looking for evidence that your insurance broker has the potential for healthy growth, profitability, and cash flow generation over time.

Now that you understand why it is important to create a business plan for an insurance broker, let's take a look at what information is needed to create one.

Information needed to create a business plan for an insurance broker

Drafting an insurance broker business plan requires research so that you can project sales, investments and cost accurately in your financial forecast, and convince the reader that there is a viable commercial opportunity to be seized.

Below, we'll focus on three critical pieces of information you should gather before starting to write your plan.

Carrying out market research for an insurance broker

Before you begin writing your business plan for an insurance broker, conducting market research is a critical step in ensuring precise and realistic financial projections.

Market research grants you valuable insights into your target customer base, competitors, pricing strategies, and other crucial factors that can impact the success of your business.

In the course of this research, you may stumble upon trends that could impact your insurance broker.

Your market research might reveal that customers may be more likely to select insurance plans with additional coverage options, such as pet insurance or identity theft coverage. It could also indicate that there may be a growing demand for digital insurance services, like online payment systems or automated customer support.

Such market trends play a pivotal role in revenue forecasting, as they provide essential data regarding potential customers' spending habits and preferences.

By integrating these findings into your financial projections, you can provide investors with more accurate information, enabling them to make well-informed decisions about investing in your insurance broker.

Developing the sales and marketing plan for an insurance broker

As you embark on creating your insurance broker business plan, it is crucial to budget sales and marketing expenses beforehand.

A well-defined sales and marketing plan should include precise projections of the actions required to acquire and retain customers. It will also outline the necessary workforce to execute these initiatives and the budget required for promotions, advertising, and other marketing efforts.

This approach ensures that the appropriate amount of resources is allocated to these activities, aligning with the sales and growth objectives outlined in your business plan.

The staffing and equipment needs of an insurance broker

As you embark on starting or expanding your insurance broker, having a clear plan for recruitment and capital expenditures (investment in equipment and real estate) is essential for ensuring your business's success.

Both the recruitment and investment plans must align with the timing and level of growth projected in your forecast, and they require appropriate funding.

The staffing costs for an insurance broker might include salaries for a team of insurance agents, administrative staff, and customer service personnel.

Additionally, your insurance broker might also need to pay for additional staffing costs such as training, benefits, and payroll taxes. The equipment costs for an insurance broker might include computers, software, printers, scanners, and other office supplies.

Your broker may also need to purchase specialized equipment such as laptops, tablets, and mobile phones in order to provide the best customer service. Finally, your broker may need to pay for additional costs such as internet access, phone lines, and other office expenses.

To create a realistic financial forecast, you also need to consider other operating expenses associated with the day-to-day running of your business, such as insurance and bookkeeping.

With all the necessary information at hand, you are ready to begin crafting your business plan and developing your financial forecast.

What goes into your insurance broker's financial forecast?

The financial forecast of your insurance broker will enable you to assess the profitability potential of your business in the coming years and how much capital is required to fund the actions planned in the business plan.

The four key outputs of a financial forecast for a insurance broker are:

  • The profit and loss (P&L) statement ,
  • The projected balance sheet ,
  • The cash flow forecast ,
  • And the sources and uses table .

Let's take a closer look at each of these.

The projected P&L statement

Your insurance broker forecasted P&L statement enables the reader of your business plan to get an idea of how much revenue and profits your business is expected to make in the near future.

forecasted profit and loss statement in a insurance broker business plan

Ideally, your reader will want to see:

  • Growth above the inflation level
  • Expanding profit margins
  • Positive net profit throughout the plan

Expectations for an established insurance broker will of course be different than for a startup. Existing businesses which have reached their cruising altitude might have slower growth and higher margins than ventures just being started.

The forecasted balance sheet of your insurance broker

The projected balance sheet of your insurance broker will enable the reader of your business plan to assess the overall financial health of your business.

It shows three elements: assets, liabilities and equity:

  • Assets: are productive resources owned by the business, such as equipment, cash, and accounts receivable (money owed by clients).
  • Liabilities: are debts owed to creditors, lenders, and other entities, such as accounts payable (money owed to suppliers).
  • Equity: includes the sums invested by the shareholders or business owners and the profits and losses accumulated by the business to date (which are called retained earnings). It is a proxy for the value of the owner's stake in the business.

projected balance sheet in a insurance broker business plan example

Analysing your insurance broker projected balance sheet provides an understanding of your insurance broker's working capital structure, investment and financing policies.

In particular, the readers of your plan can compare the level of financial debt on the balance sheet to the equity value to measure the level of financial risk (equity doesn't need to be reimbursed, while financial debt must be repaid, making it riskier).

They can also use your balance sheet to assess your insurance broker's liquidity and solvency:

  • A liquidity analysis: focuses on whether or not your business has sufficient cash and short-term assets to cover its liabilities due in the next 12 months.
  • A solvency analysis: takes and longer view to assess whether or not your business has the capacity to repay its debts over the medium-term.

The cash flow forecast

As we've seen earlier in this guide, monitoring future cash flows is the key to success and the only way of ensuring that your insurance broker has enough cash to operate.

As you can expect showing future cash flows is the main role of the cash flow forecast in your insurance broker business plan.

example of projected cash flow forecast in a insurance broker business plan

It is best practice to organise the cash flow statement by nature in order to show the cash impact of the following areas:

  • Cash flow generated from operations: the operating cash flow shows how much cash is generated or consumed by the business's commercial activities
  • Cash flow from investing activities: the investing cash flow shows how much cash is being invested in capital expenditure (equipment, real estate, etc.) either to maintain the business's equipment or to expand its capabilities
  • Cash flow from financing activities: the financing cash flow shows how much cash is raised or distributed to financiers

Looking at the cash flow forecast helps you to make sure that your business has enough cash to keep running, and can help you anticipate potential cash shortfalls.

Your insurance broker business plan will normally include both yearly and monthly cash flow forecasts so that the readers can view the impact of seasonality on your business cash position and generation.

The initial financing plan

The initial financing plan - also called a sources and uses table - is an important tool when starting an insurance broker.

It shows where the money needed to set up the business will come from (sources) and how it will be allocated (uses).

initial financing plan in a insurance broker business plan

Having this table helps understand what costs are involved in setting up the insurance broker, how the risks are distributed between the shareholders and the lenders, and what will be the starting cash position (which needs to be sufficient to sustain operations until the business breaks even).

Now that the financial forecast of an insurance broker business plan is understood, let's focus on what goes into the written part of the plan.

The written part of an insurance broker business plan

The written part of an insurance broker business plan plays a key role: it lays out the plan of action you intend to execute to seize the commercial opportunity you've identified on the market and provides the context needed for the reader to decide if they believe your plan to be achievable and your financial forecast to be realistic.

The written part of an insurance broker business plan is composed of 7 main sections:

  • The executive summary
  • The presentation of the company
  • The products and services
  • The market analysis
  • The strategy
  • The operations
  • The financial plan

Let's go through the content of each section in more detail!

1. The executive summary

The executive summary, the first section of your insurance broker's business plan, serves as an inviting snapshot of your entire plan, leaving readers eager to know more about your business.

To compose an effective executive summary, start with a concise introduction of your business, covering its name, concept, location, history, and unique aspects. Share insights about the services or products you intend to offer and your target customer base.

Subsequently, provide an overview of your insurance broker's addressable market, highlighting current trends and potential growth opportunities.

Then, present a summary of critical financial figures, such as projected revenues, profits, and cash flows.

You should then include a summary of your key financial figures such as projected revenues, profits, and cash flows.

Lastly, address any funding needs in the "ask" section of your executive summary.

2. The presentation of the company

In your insurance broker business plan, the second section should focus on the structure and ownership, location, and management team of your company.

In the structure and ownership part, you'll provide an overview of the business's legal structure, details about the owners, and their respective investments and ownership shares. This clarity is crucial, especially if you're seeking financing, as it helps the reader understand which legal entity will receive the funds and who controls the business.

Moving on to the location part, you'll offer an overview of the company's premises and their surroundings. Explain why this particular location is of interest, highlighting factors like catchment area, accessibility, and nearby amenities.

When describing the location of your insurance broker, you could emphasize the potential for growth in the area. You may discuss the fact that there are plenty of resources and opportunities in the surrounding area that could help to increase the profitability of the business. Additionally, you could point out that the area could potentially provide access to a wider customer base, allowing for greater success in the future.

Finally, you should introduce your management team. Describe each member's role, background, and experience.

Don't forget to emphasize any past successes achieved by the management team and how long they've been working together. Demonstrating their track record and teamwork will help potential lenders or investors gain confidence in their leadership and ability to execute the business plan.

3. The products and services section

The products and services section of your business plan should include a detailed description of what your company offers, who are the target customers, and what distribution channels are part of your go-to-market. 

For example, your insurance broker might offer auto insurance for customers needing coverage for personal vehicles, home insurance for customers needing coverage for their homes, and business insurance for customers needing coverage for their businesses.

These products and services can provide customers with financial protection against unexpected events such as theft, property damage, and liability claims.

4. The market analysis

When outlining your market analysis in the insurance broker business plan, it's essential to include comprehensive details about customers' demographics and segmentation, target market, competition, barriers to entry, and relevant regulations.

The primary aim of this section is to give the reader an understanding of the market size and appeal while demonstrating your expertise in the industry.

To begin, delve into the demographics and segmentation subsection, providing an overview of the addressable market for your insurance broker, key marketplace trends, and introducing various customer segments and their preferences in terms of purchasing habits and budgets.

Next, shift your focus to the target market subsection, where you can zoom in on the specific customer segments your insurance broker targets. Explain how your products and services are tailored to meet the unique needs of these customers.

For example, your target market might include young married couples. This segment is likely to be looking for a comprehensive insurance plan that offers good value for money. They are likely to be tech savvy and looking to do research online and compare prices.

In the competition subsection, introduce your main competitors and explain what sets your insurance broker apart from them.

Finally, round off your market analysis by providing an overview of the main regulations that apply to your insurance broker.

5. The strategy section

When crafting the strategy section of your business plan for your insurance broker, it's important to cover several key aspects, including your competitive edge, pricing strategy, sales & marketing plan, milestones, and risks and mitigants.

In the competitive edge subsection, clearly explain what sets your company apart from competitors. This is particularly critical if you're a startup, as you'll be trying to establish your presence in the marketplace among entrenched players.

The pricing strategy subsection should demonstrate how you aim to maintain profitability while offering competitive prices to your customers.

For the sales & marketing plan, outline how you plan to reach and acquire new customers, as well as retain existing ones through loyalty programs or special offers.

In the milestones subsection, detail what your company has achieved thus far and outline your primary objectives for the coming years by including specific dates for expected progress. This ensures everyone involved has clear expectations.

Lastly, in the risks and mitigants subsection, list the main risks that could potentially impact the execution of your plan. Explain the measures you've taken to minimize these risks. This is vital for investors or lenders to feel confident in supporting your venture - try to proactively address any objection they might have.

Your insurance broker may face the risk of a client making a fraudulent claim. This could lead to a costly investigation and the broker may face legal and financial repercussions.

Additionally, the broker may face the risk of a cyber attack that could lead to the exposure of sensitive information. This could result in a loss of trust from customers and a damaged reputation.

6. The operations section

The operations of your insurance broker must be presented in detail in your business plan.

The first thing you should cover in this section is your staffing team, the main roles, and the overall recruitment plan to support the growth expected in your business plan. You should also outline the qualifications and experience necessary to fulfil each role, and how you intend to recruit (using job boards, referrals, or headhunters).

You should then state the operating hours of your insurance broker - so that the reader can check the adequacy of your staffing levels - and any plans for varying opening times during peak season. Additionally, the plan should include details on how you will handle customer queries outside of normal operating hours.

The next part of this section should focus on the key assets and IP required to operate your business. If you depend on any licenses or trademarks, physical structures (equipment or property) or lease agreements, these should all go in there.

You may have key assets such as customer databases and client records that could contain sensitive information. Additionally, your insurance broker might have intellectual property such as proprietary knowledge or business processes that could be valuable to the company.

Finally, you should include a list of suppliers that you plan to work with and a breakdown of their services and main commercial terms (price, payment terms, contract duration, etc.). Investors are always keen to know if there is a particular reason why you have chosen to work with a specific supplier (higher-quality products or past relationships for example).

7. The presentation of the financial plan

The financial plan section is where we will present the financial forecast we talked about earlier in this guide.

Now that you have a clear idea of what goes in your insurance broker business plan, let's look at the solutions you can use to draft yours.

What tool should I use to write my insurance broker's business plan?

In this section, we will be reviewing the two main solutions for creating an insurance broker business plan:

  • Using specialized online business plan software,
  • Outsourcing the plan to the business plan writer.

Using an online business plan software for your insurance broker's business plan

The modern and most efficient way to write an insurance broker business plan is to use business plan software .

There are several advantages to using specialized software:

  • You can easily create your financial forecast by letting the software take care of the financial calculations for you without errors
  • You are guided through the writing process by detailed instructions and examples for each part of the plan
  • You can access a library of dozens of complete business plan samples and templates for inspiration
  • You get a professional business plan, formatted and ready to be sent to your bank or investors
  • You can easily track your actual financial performance against your financial forecast
  • You can create scenarios to stress test your forecast's main assumptions
  • You can easily update your forecast as time goes by to maintain visibility on future cash flows
  • You have a friendly support team on standby to assist you when you are stuck

If you're interested in using this type of solution, you can try The Business Plan Shop for free by signing up here .

Hiring a business plan writer to write your insurance broker's business plan

Outsourcing your insurance broker business plan to a business plan writer can also be a viable option.

Business plan writers are skilled in creating error-free business plans and accurate financial forecasts. Moreover, hiring a consultant can save you valuable time, allowing you to focus on day-to-day business operations.

However, it's essential to be aware that hiring business plan writers will be expensive, as you're not only paying for their time but also the software they use and their profit margin.

Based on experience, you should budget at least £1.5k ($2.0k) excluding tax for a comprehensive business plan, and more if you require changes after initial discussions with lenders or investors.

Also, exercise caution when seeking investment. Investors prefer their funds to be directed towards business growth rather than spent on consulting fees. Therefore, the amount you spend on business plan writing services and other consulting services should be insignificant compared to the amount raised.

Keep in mind that one drawback is that you usually don't own the business plan itself; you only receive the output, while the actual document is saved in the consultant's business planning software. This can make it challenging to update the document without retaining the consultant's services.

For these reasons, carefully consider outsourcing your insurance broker business plan to a business plan writer, weighing the advantages and disadvantages of seeking outside assistance.

Why not create your insurance broker's business plan using Word or Excel?

I must advise against using Microsoft Excel and Word (or their Google, Apple, or open-source equivalents) to write your insurance broker business plan. Let me explain why.

Firstly, creating an accurate and error-free financial forecast on Excel (or any spreadsheet) is highly technical and requires a strong grasp of accounting principles and financial modelling skills. It is, therefore, unlikely that anyone will fully trust your numbers unless you have both a degree in finance and accounting and significant financial modelling experience, like us at The Business Plan Shop.

Secondly, relying on spreadsheets is inefficient. While it may have been the only option in the past, technology has advanced significantly, and software can now perform these tasks much faster and with greater accuracy. With the rise of AI, software can even help us detect mistakes in forecasts and analyze the numbers for better decision-making.

And with the rise of AI, software is also becoming smarter at helping us detect mistakes in our forecasts and helping us analyse the numbers to make better decisions.

Moreover, software makes it easier to compare actuals versus forecasts and maintain up-to-date forecasts to keep visibility on future cash flows, as we discussed earlier in this guide. This task is cumbersome when using spreadsheets.

Now, let's talk about the written part of your insurance broker business plan. While it may be less error-prone, using software can bring tremendous gains in productivity. Word processors, for example, lack instructions and examples for each part of your business plan. They also won't automatically update your numbers when changes occur in your forecast, and they don't handle formatting for you.

Overall, while Word or Excel may seem viable for some entrepreneurs to create a business plan, it's by far becoming an antiquated way of doing things.

  • A business plan has 2 complementary parts: a financial forecast showcasing the expected growth, profits and cash flows of the business; and a written part which provides the context needed to judge if the forecast is realistic and relevant.
  • Having an up-to-date business plan is the only way to keep visibility on your insurance broker's future cash flows.
  • Using business plan software is the modern way of writing and maintaining business plans.

We hope that this practical guide gave you insights on how to write the business plan for your insurance broker. Do not hesitate to get in touch with our team if you still have questions.

Also on The Business Plan Shop

  • In-depth business plan structure
  • Key steps to write a business plan?
  • Free business plan template

Know someone who owns or wants to start an insurance broker? Share this article with them!

Guillaume Le Brouster

Founder & CEO at The Business Plan Shop Ltd

Guillaume Le Brouster is a seasoned entrepreneur and financier.

Guillaume has been an entrepreneur for more than a decade and has first-hand experience of starting, running, and growing a successful business.

Prior to being a business owner, Guillaume worked in investment banking and private equity, where he spent most of his time creating complex financial forecasts, writing business plans, and analysing financial statements to make financing and investment decisions.

Guillaume holds a Master's Degree in Finance from ESCP Business School and a Bachelor of Science in Business & Management from Paris Dauphine University.

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Freight Broker Business Plan Template

Written by Dave Lavinsky

Freight Broker Business Plan

Freight Broker Business Plan

Over the past 20+ years, we have helped over 9,000 entrepreneurs and business owners create business plans to start and grow their freight broker businesses. On this page, we will first give you some background information with regards to the importance of business planning. We will then go through a freight broker business plan template step-by-step so you can create your plan today.

Download our Ultimate Business Plan Template here >

What Is a Business Plan?

A business plan provides a snapshot of your freight broker business as it stands today, and lays out your growth plan for the next five years. It explains your business goals and your strategy for reaching them. It also includes market research to support your plans.

Why You Need a Business Plan

If you’re looking to start a freight broker business or grow your existing freight broker business, you need a business plan. A business plan will help you raise funding, if needed, and plan out the growth of your freight broker business in order to improve your chances of success. Your freight broker business plan is a living document that should be updated annually as your company grows and changes.

Sources of Funding for Freight Broker Businesses

With regards to funding, the main sources of funding for a freight broker business are personal savings, credit cards, bank loans and angel investors. With regards to bank loans, banks will want to review your business plan and gain confidence that you will be able to repay your loan and interest. To acquire this confidence, the loan officer will not only want to confirm that your financials are reasonable, but they will also want to see a professional plan. Such a plan will give them the confidence that you can successfully and professionally operate a business.

Personal savings is the other most common form of funding for a freight broker business. Venture capitalists will usually not fund a freight broker business. They might consider funding a freight broker business with a national presence, but never an individual location. This is because most venture capitalists are looking for millions of dollars in return when they make an investment, and an individual location could never achieve such results.  With that said, personal savings and bank loans are the most common funding paths for freight broker businesses.

Finish Your Business Plan Today!

How to write a business plan for a freight brokerage.

If you want to start a freight broker business or expand your current one, you need a business plan. Below are links to each section of your freight broker business plan template:

Executive Summary

Your executive summary provides an introduction to your business plan, but it is normally the last section you write because it provides a summary of each key section of your plan.

The goal of your Executive Summary is to quickly engage the reader. Explain to them the type of freight broker business you are operating and the status. For example, are you a startup, do you have a freight broker business that you would like to grow, or are you operating a chain of freight broker businesses?

Next, provide an overview of each of the subsequent sections of your plan. For example, give a brief overview of the freight broker industry. Discuss the type of freight broker business you are operating. Detail your direct competitors. Give an overview of your target customers. Provide a snapshot of your marketing plan. Identify the key members of your team. And offer an overview of your financial plan.  

Company Analysis

In your company analysis, you will detail the type of freight broker business you are operating.

For example, you might operate one of the following types of freight broker businesses:

  • Agent Model : this type of freight broker business focuses on a freight agent overseeing every aspect of the freight movement and working as a self-employed individual, but still being considered as working under the umbrella of a corporate brand.
  • Asset-Based: this type of business is when a trucking company that has a fleet of trucks and truck drivers has the authority and access to brokerage freight for themselves.
  • 3PL: this type of freight broker is where the company takes over and manages every step of the transportation process by offering freight transportation, warehousing and storage, distribution, and supply chain fulfillment.

In addition to explaining the type of freight broker business you will operate, the Company Analysis section of your business plan needs to provide background on the business.

Include answers to question such as:

  • When and why did you start the business?
  • What milestones have you achieved to date? Milestones could include the number of customers served, number of positive reviews, number of long-term contracts, etc.
  • Your legal structure. Are you incorporated as an S-Corp? An LLC? A sole proprietorship? Explain your legal structure here.

Industry Analysis

In your industry analysis, you need to provide an overview of the freight broker industry.

While this may seem unnecessary, it serves multiple purposes.

First, researching the freight broker industry educates you. It helps you understand the market in which you are operating.

Secondly, market research can improve your strategy, particularly if your research identifies market trends.

The third reason for market research is to prove to readers that you are an expert in your industry. By conducting the research and presenting it in your plan, you achieve just that.

freight brokerage industry growth outlook

The following questions should be answered in the industry analysis section of your freight broker business plan:

  • How big is the freight broker industry (in dollars)?
  • Is the market declining or increasing?
  • Who are the key competitors in the market?
  • Who are the key suppliers in the market?
  • What trends are affecting the industry?
  • What is the industry’s growth forecast over the next 5 – 10 years?
  • What is the relevant market size? That is, how big is the potential market for your freight broker business? You can extrapolate such a figure by assessing the size of the market in the entire country and then applying that figure to your local population.

Customer Analysis

The customer analysis section of your freight broker business plan must detail the customers you serve and/or expect to serve.

The following are examples of customer segments: shippers, manufacturers, producers, distributors, and suppliers.

As you can imagine, the customer segment(s) you choose will have a great impact on the type of freight broker business you operate. Clearly, shippers would respond to different marketing promotions than wholesale distributors, for example.

Try to break out your target customers in terms of their demographic and psychographic profiles. With regards to demographics, including a discussion of the ages, genders, locations, and income levels of the customers you seek to serve. Because most freight broker businesses primarily serve customers living in the same city or town, such demographic information is easy to find on government websites.

Psychographic profiles explain the wants and needs of your target customers. The more you can understand and define these needs, the better you will do in attracting and retaining your customers.

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Competitive Analysis

Your competitive analysis should identify the indirect and direct competitors your business faces and then focus on the latter.

Direct competitors are other freight broker businesses.

Indirect competitors are other options that customers have to purchase from that aren’t direct competitors. This includes independent truckers and logistics companies. You need to mention such competition as well.

With regards to direct competition, you want to describe the other freight broker businesses with which you compete. Most likely, your direct competitors will be house flippers located very close to your location.

freight broker competitive analysis matrix

For each such competitor, provide an overview of their businesses and document their strengths and weaknesses. Unless you once worked at your competitors’ businesses, it will be impossible to know everything about them. But you should be able to find out key things about them such as:

  • What types of cargo do they ship?
  • What types of shipping options do they offer (FTL, LTL, reefer, oversize, etc.)?
  • What is their pricing (premium, low, etc.)?
  • What are they good at?
  • What are their weaknesses?

With regards to the last two questions, think about your answers from the customers’ perspective. And don’t be afraid to ask your competitors’ customers what they like most and least about them.

The final part of your competitive analysis section is to document your areas of competitive advantage. For example:

  • Will you provide real-time tracking services of each shipment?
  • Will you provide services that your competitors don’t offer?
  • Will you provide better customer service?
  • Will you offer better pricing?

Think about ways you will outperform your competition and document them in this section of your plan.  

Marketing Plan

Traditionally, a marketing plan includes the four P’s: Product, Price, Place, and Promotion. For a freight broker business plan, your marketing plan should include the following:

Product : In the product section, you should reiterate the type of freight broker company that you documented in your Company Analysis. Then, detail the specific products you will be offering. For example, in addition to a freight broker, will you provide real-time and fully electronic tracking services, electronic or manual booking services for drivers, or a 24 hour support phone number?

Price : Document the prices you will offer and how they compare to your competitors. Essentially in the product and price sub-sections of your marketing plan, you are presenting the services you offer and their prices.

Place : Place refers to the location of your freight broker company. Document your location and mention how the location will impact your success. For example, is your freight broker business located in or near a warehouse, an office setting, completely remote, etc.  Discuss how your location might be the ideal location for your customers.

Promotions : The final part of your freight broker marketing plan is the promotions section. Here you will document how you will drive customers to your location(s). The following are some promotional methods you might consider:

  • Advertising in local papers and magazines
  • Reaching out to local websites
  • Social media marketing
  • Local radio advertising

Operations Plan

While the earlier sections of your business plan explained your goals, your operations plan describes how you will meet them. Your operations plan should have two distinct sections as follows.

Everyday short-term processes include all of the tasks involved in running your freight broker business, including negotiating contracts with carriers, finding efficient shipping routes, booking shipments with shippers and carriers, and tracking shipments.

Long-term goals are the milestones you hope to achieve. These could include the dates when you expect to book your 100 th shipment, a date when you secure your 10 th shipping client, or when you hope to reach $X in revenue. It could also be when you expect to expand your freight broker business to a new city.  

Management Team

To demonstrate your freight broker business’ ability to succeed, a strong management team is essential. Highlight your key players’ backgrounds, emphasizing those skills and experiences that prove their ability to grow a company.

Ideally, you and/or your team members have direct experience in managing freight broker businesses. If so, highlight this experience and expertise. But also highlight any experience that you think will help your business succeed.

If your team is lacking, consider assembling an advisory board. An advisory board would include 2 to 8 individuals who would act like mentors to your business. They would help answer questions and provide strategic guidance. If needed, look for advisory board members with experience in managing logistic operations or successfully running small businesses.  

Financial Plan

Your financial plan should include your 5-year financial statement broken out both monthly or quarterly for the first year and then annually. Your financial statements include your income statement, balance sheet, and cash flow statements.

Income Statement : an income statement is more commonly called a Profit and Loss statement or P&L. It shows your revenues and then subtracts your costs to show whether you turned a profit or not.

In developing your income statement, you need to devise assumptions. For example, will you book 5 shipments a day or 5 per week? And will sales grow by 2% or 10% per year? As you can imagine, your choice of assumptions will greatly impact the financial forecasts for your business. As much as possible, conduct research to try to root your assumptions in reality.

Balance Sheets : Balance sheets show your assets and liabilities. While balance sheets can include much information, try to simplify them to the key items you need to know about. For instance, if you spend $50,000 on building out your freight broker business, this will not give you immediate profits. Rather it is an asset that will hopefully help you generate profits for years to come. Likewise, if a bank writes you a check for $50,000, you don’t need to pay it back immediately. Rather, that is a liability you will pay back over time.

Cash Flow Statement : Your cash flow statement will help determine how much money you need to start or grow your business, and make sure you never run out of money. What most entrepreneurs and business owners don’t realize is that you can turn a profit but run out of money and go bankrupt.

In developing your Income Statement and Balance Sheets be sure to include several of the key costs needed in starting or growing a freight broker business:

  • Location build-out including design fees, construction, etc.
  • Cost of equipment and supplies
  • Payroll or salaries paid to staff
  • Business insurance
  • Taxes and permits
  • Legal expenses

freight brokerage business costs

Attach your full financial projections in the appendix of your plan along with any supporting documents that make your plan more compelling. For example, you might include contracts you have completed with shippers and/or truck drivers and carriers.  

Putting together a business plan for your freight broker is a worthwhile endeavor. If you follow the template above, by the time you are done, you will truly be an expert. You will really understand the freight broker industry, your competition, and your customers. You will have developed a marketing plan and will really understand what it takes to launch and grow a successful freight broker business.  

Freight Broker FAQs

What is the easiest way to complete my freight broker business plan.

Growthink's Ultimate Business Plan Template allows you to quickly and easily complete your Freight Broker Business Plan.

What is the Goal of a Business Plan's Executive Summary?

The goal of your Executive Summary is to quickly engage the reader. Explain to them the type of freight broker business you are operating and the status; for example, are you a startup, do you have a freight broker business that you would like to grow, or are you operating a chain of freight broker businesses?

Don’t you wish there was a faster, easier way to finish your Freight Broker business plan?

OR, Let Us Develop Your Plan For You

Since 1999, Growthink has developed business plans for thousands of companies who have gone on to achieve tremendous success.   Click here to see how Growthink’s professional business plan consulting services can create your business plan for you.

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Business Plan Template & Guide For Small Businesses

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Insurance Broker Business Plan Template & Guidebook

Starting an insurance broker business doesn’t have to be a daunting task. By leveraging the #1 Insurance Broker Business Plan Template & Guidebook, you can get your new business off the ground quickly and easily. This comprehensive resource provides step-by-step guidance for developing a comprehensive business plan that will ensure success for your new venture. Read on to learn more about how to craft a winning business plan that will help you take your insurance broker business from concept to reality.

Nick

Get worry-free services and support to launch your business starting at $0 plus state fees.

How to Write a Insurance Broker Business Plan in 7 Steps:

1. describe the purpose of your insurance broker business..

The first step to writing your business plan is to describe the purpose of your insurance broker business. This includes describing why you are starting this type of business, and what problems it will solve for customers. This is a quick way to get your mind thinking about the customers’ problems. It also helps you identify what makes your business different from others in its industry.

It also helps to include a vision statement so that readers can understand what type of company you want to build.

Here is an example of a purpose mission statement for a insurance broker business:

Our mission is to provide our clients with personalized insurance solutions that meet their individual needs in a knowledgeable, reliable, and friendly manner. We strive to be a trusted partner, delivering the best customer experience each and every time. We are committed to building strong relationships with our customers while helping them protect their assets, families, and future.

Image of Zenbusiness business formation

2. Products & Services Offered by Your Insurance Broker Business.

The next step is to outline your products and services for your insurance broker business. 

When you think about the products and services that you offer, it's helpful to ask yourself the following questions:

  • What is my business?
  • What are the products and/or services that I offer?
  • Why am I offering these particular products and/or services?
  • How do I differentiate myself from competitors with similar offerings?
  • How will I market my products and services?

You may want to do a comparison of your business plan against those of other competitors in the area, or even with online reviews. This way, you can find out what people like about them and what they don’t like, so that you can either improve upon their offerings or avoid doing so altogether.

Image of Zenbusiness business formation

3. Build a Creative Marketing Stratgey.

If you don't have a marketing plan for your insurance broker business, it's time to write one. Your marketing plan should be part of your business plan and be a roadmap to your goals. 

A good marketing plan for your insurance broker business includes the following elements:

Target market

  • Who is your target market?
  • What do these customers have in common?
  • How many of them are there?
  • How can you best reach them with your message or product?

Customer base 

  • Who are your current customers? 
  • Where did they come from (i.e., referrals)?
  • How can their experience with your insurance broker business help make them repeat customers, consumers, visitors, subscribers, or advocates for other people in their network or industry who might also benefit from using this service, product, or brand?

Product or service description

  • How does it work, what features does it have, and what are its benefits?
  • Can anyone use this product or service regardless of age or gender?
  • Can anyone visually see themselves using this product or service?
  • How will they feel when they do so? If so, how long will the feeling last after purchasing (or trying) the product/service for the first time?

Competitive analysis

  • Which companies are competing with yours today (and why)? 
  • Which ones may enter into competition with yours tomorrow if they find out about it now through word-of-mouth advertising; social media networks; friends' recommendations; etc.)
  • What specific advantages does each competitor offer over yours currently?

Marketing channels

  • Which marketing channel do you intend to leverage to attract new customers?
  • What is your estimated marketing budget needed?
  • What is the projected cost to acquire a new customer?
  • How many of your customers do you instead will return?

Form an LLC in your state!

broker business plan

4. Write Your Operational Plan.

Next, you'll need to build your operational plan. This section describes the type of business you'll be running, and includes the steps involved in your operations. 

In it, you should list:

  • The equipment and facilities needed
  • Who will be involved in the business (employees, contractors)
  • Financial requirements for each step
  • Milestones & KPIs
  • Location of your business
  • Zoning & permits required for the business

What equipment, supplies, or permits are needed to run a insurance broker business?

  • Business license
  • General liability insurance
  • Insurance broker license
  • Computer with internet access
  • Phone and fax machine
  • Prepaid legal plan subscription
  • Marketing materials (brochures, business cards, etc.)
  • Accounting software for tracking client information and bookkeeping

5. Management & Organization of Your Insurance Broker Business.

The second part of your insurance broker business plan is to develop a management and organization section.

This section will cover all of the following:

  • How many employees you need in order to run your insurance broker business. This should include the roles they will play (for example, one person may be responsible for managing administrative duties while another might be in charge of customer service).
  • The structure of your management team. The higher-ups like yourself should be able to delegate tasks through lower-level managers who are directly responsible for their given department (inventory and sales, etc.).
  • How you’re going to make sure that everyone on board is doing their job well. You’ll want check-ins with employees regularly so they have time to ask questions or voice concerns if needed; this also gives you time to offer support where necessary while staying informed on how things are going within individual departments too!

6. Insurance Broker Business Startup Expenses & Captial Needed.

This section should be broken down by month and year. If you are still in the planning stage of your business, it may be helpful to estimate how much money will be needed each month until you reach profitability.

Typically, expenses for your business can be broken into a few basic categories:

Startup Costs

Startup costs are typically the first expenses you will incur when beginning an enterprise. These include legal fees, accounting expenses, and other costs associated with getting your business off the ground. The amount of money needed to start a insurance broker business varies based on many different variables, but below are a few different types of startup costs for a insurance broker business.

Running & Operating Costs

Running costs refer to ongoing expenses related directly with operating your business over time like electricity bills or salaries paid out each month. These types of expenses will vary greatly depending on multiple variables such as location, team size, utility costs, etc.

Marketing & Sales Expenses

You should include any costs associated with marketing and sales, such as advertising and promotions, website design or maintenance. Also, consider any additional expenses that may be incurred if you decide to launch a new product or service line. For example, if your insurance broker business has an existing website that needs an upgrade in order to sell more products or services, then this should be listed here.

7. Financial Plan & Projections

A financial plan is an important part of any business plan, as it outlines how the business will generate revenue and profit, and how it will use that profit to grow and sustain itself. To devise a financial plan for your insurance broker business, you will need to consider a number of factors, including your start-up costs, operating costs, projected revenue, and expenses. 

Here are some steps you can follow to devise a financial plan for your insurance broker business plan:

  • Determine your start-up costs: This will include the cost of purchasing or leasing the space where you will operate your business, as well as the cost of buying or leasing any equipment or supplies that you need to start the business.
  • Estimate your operating costs: Operating costs will include utilities, such as electricity, gas, and water, as well as labor costs for employees, if any, and the cost of purchasing any materials or supplies that you will need to run your business.
  • Project your revenue: To project your revenue, you will need to consider the number of customers you expect to have and the average amount they will spend on each visit. You can use this information to estimate how much money you will make from selling your products or services.
  • Estimate your expenses: In addition to your operating costs, you will need to consider other expenses, such as insurance, marketing, and maintenance. You will also need to set aside money for taxes and other fees.
  • Create a budget: Once you have estimated your start-up costs, operating costs, revenue, and expenses, you can use this information to create a budget for your business. This will help you to see how much money you will need to start the business, and how much profit you can expect to make.
  • Develop a plan for using your profit: Finally, you will need to decide how you will use your profit to grow and sustain your business. This might include investing in new equipment, expanding the business, or saving for a rainy day.

broker business plan

Frequently Asked Questions About Insurance Broker Business Plans:

Why do you need a business plan for a insurance broker business.

A business plan for an insurance broker business is essential because it offers guidance and serves as a road map for you to follow as you establish and grow your company. A well-constructed plan can provide key information such as the analysis of your target market, an overview of the services you offer, a comprehensive financial plan, a marketing and sales strategy, detailed operations plans, and an overall mission statement. This information will help you visualize your company's goals and objectives, develop strategies to reach those goals, and identify potential risks. Additionally, having a business plan will also be important if you are looking for investments from outside sources. Investors or lenders need to see that you have researched your industry thoroughly and have a viable long-term plan in place.

Who should you ask for help with your insurance broker business plan?

An insurance broker who specializes in business plan development and/or a professional business consultant can provide the most helpful advice when crafting your insurance broker business plan. Additionally, local small business support resources such as the Small Business Administration (SBA) as well as your local chamber of commerce may also be able to provide advice and support.

Can you write a insurance broker business plan yourself?

Writing a business plan can be a complex process, and it is highly recommended that you seek professional assistance when writing a business plan for your insurance broker business. A professional business plan consultant can help you create an effective plan to achieve your business goals and objectives. They can help you identify financial objectives, analyze market trends, assess competition, develop marketing strategies, and more. Additionally, depending on the complexity of your business model, a professional may be able to offer additional services or advice regarding the legal aspects of running an insurance brokerage business.

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I'm Nick, co-founder of newfoundr.com, dedicated to helping aspiring entrepreneurs succeed. As a small business owner with over five years of experience, I have garnered valuable knowledge and insights across a diverse range of industries. My passion for entrepreneurship drives me to share my expertise with aspiring entrepreneurs, empowering them to turn their business dreams into reality.

Through meticulous research and firsthand experience, I uncover the essential steps, software, tools, and costs associated with launching and maintaining a successful business. By demystifying the complexities of entrepreneurship, I provide the guidance and support needed for others to embark on their journey with confidence.

From assessing market viability and formulating business plans to selecting the right technology and navigating the financial landscape, I am dedicated to helping fellow entrepreneurs overcome challenges and unlock their full potential. As a steadfast advocate for small business success, my mission is to pave the way for a new generation of innovative and driven entrepreneurs who are ready to make their mark on the world.

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So how do we make money? Our partners compensate us. This may influence which products we review and write about (and where those products appear on the site), but it in no way affects our recommendations or advice, which are grounded in thousands of hours of research. Our partners cannot pay us to guarantee favorable reviews of their products or services. Here is a list of our partners .

Are You in the Wrong Medicare Advantage Plan? What to Review Now

Kate Ashford, CSA®

Many or all of the products featured here are from our partners who compensate us. This influences which products we write about and where and how the product appears on a page. However, this does not influence our evaluations. Our opinions are our own. Here is a list of our partners and here's how we make money .

Many people choose Medicare Advantage plans without exploring their options or noticing what changes their plan may have made, according to research from KFF, a health policy nonprofit. But now that a new year has started, you may realize the plan you picked during Medicare’s fall open enrollment doesn’t work for you. Or maybe you stuck with your old plan and it changed this year. (That can happen, too.)

Medicare Advantage open enrollment , which runs from Jan. 1 to March 31, gives members the option to switch Medicare Advantage plans or move back to Original Medicare.

“It’s set up especially for people who begin the year enrolled in a Medicare Advantage plan and allows them to make certain changes,” says David Lipschutz, associate director of the Center for Medicare Advocacy.

Here’s where to start.

Does your current coverage work for you?

Even if you haven’t had a chance to stress test your plan yet, do some research while you still have time to change your mind. Are there providers or specialists you want to see or hospitals you prefer? Make sure they’re in your network.

Check your medications, particularly if you’re on a newer drug that may be covered differently by different plans. How much do your prescriptions cost under your plan?

Then, think about your situation this year. “Are there any procedures, like a surgery that’s coming up?” says Christopher Fong, director and co-founder of Smile Insurance Group in Mesa, Arizona. “Is it outpatient? Inpatient? How many emergency room visits do you have? Do you need an electric scooter?” The more you can predict your health care usage, the more accurately you can determine whether you’re in the right plan.

Next, consider your lifestyle. Do you travel or plan to spend part of the year in another state? Make sure your insurance offers an extended network or travel benefit. Or consider Original Medicare , which allows you to see any doctor in the country who accepts Medicare.

What can you do during Medicare Advantage open enrollment?

During this time, people who are already enrolled in a Medicare Advantage plan can switch — once — to another Medicare Advantage plan, or they can return to Original Medicare and purchase a Medicare Part D prescription drug plan . But if you don’t already have Medicare Advantage, you can’t join a plan now.

That said, although you can return to Original Medicare, you may not be able to sign up for Medicare Supplement Insurance, or Medigap . Medigap’s open enrollment period — when insurance companies must offer you a plan at the same price as everyone else, regardless of health issues — lasts for six months after you're 65 and have Medicare Part B . After that, aside from a few states and situations, you’ll be subject to medical underwriting to qualify.

“While you can get in and out of a Medicare Advantage plan on an annual basis, your rights to purchase a Medigap policy are usually far more restrictive,” Lipschutz says.

Should you switch plans?

Some circumstances are red flags — meaning you should probably change your coverage. If your primary care physician or primary hospital system is now out of network, for instance, you’ll want to look for a plan that includes them.

If an expensive medication isn’t covered, see if there’s a plan that includes it. (You can input your medications into the plan finder on Medicare.gov to see options.) Make sure, when you’re estimating drug costs, that you’re as accurate as possible about what you’re taking, including name and dosage. “Some people will get confused between the generic version and the brand name version, and there’s a huge difference,” says Emily Gang, CEO of the Medicare Coach, a site that provides Medicare guidance.

If you had a health event and found that you weren’t covered in the way that you expected, give switching plans some thought, but consider that any money you’ve paid is a sunk cost. You’ve already spent it, Gang says. And it may not make sense to start over in a new plan with a new deductible.

In general, resist switching plans for the perks alone. “We’re not proponents of benefit chasing unless everything else lines up correctly for the member,’” Fong says.

Then, next year, do your homework during Medicare’s fall open enrollment from Oct. 15 to Dec. 7. “Ideally, you look at the plan details in advance to avoid any surprises,” Gang says.

This article was written by NerdWallet and was originally published by The Associated Press. 

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Print Broker Business Plan

Start your own print broker business plan

R and R Printing

Executive summary executive summary is a brief introduction to your business plan. it describes your business, the problem that it solves, your target market, and financial highlights.">.

R & R Printing is a new print brokerage firm, formed as a sole proprietorship. The owner has extensive experience in the printing industry as a sales manager.

We will offer printing services for a wide range of print media, including business cards, letterhead, envelopes, brochures, booklets, business forms, posters, catalogues and labels. Our goal is to serve all the printing needs for each company we work with, to be a one-stop-shop. While our services, product quality, and prices will be excellent, our marketing strategy focuses on building long-term relationships with our customers.

By focusing on its commitment to helping businesses obtain the printing products and services they need, R & R Printing will increase its sales to more than $1.5 million in three years, while improving the gross margin. R & R Printing will distinguish themselves by reinforcing reliability and expertise with competitive pricing.

To finance the start-up of the business, the owner will invest $15,000, and is seeking a five-year loan of $50,000.

Print broker business plan, executive summary chart image

1.1 Objectives

  • Sell $750,000 in the first year.
  • Increase sales to more than $1.5 million by the third year.
  • Bring gross margin up above 30%, and maintain that level.
  • Retain client base from previous relationships, and obtain 20 new clients by the end of the first year.

1.2 Mission

R & R Printing is dedicated to helping businesses obtain the printing products and services they need. R & R Printing offers a high level of practical experience, know-how, and a network of industry contacts, so clients save money and time by allowing a printing professional to handle their printing needs. Very few print shops posess all the equipment and products that most businesses require for all of their printing They rely on the knowledge of a professional that can provide one-stop shopping for all services, paper, bindery, and graphics at a reasonable cost, while overseeing the printing process to ensure the highest quality possible.

R & R Printing is such a vendor. We make it our number one goal that our clients receive the quality of printing they need, with maximum efficiency and reliability. By providing fast response, expertise, and high-quality solutions, R & R Printing generates satisfied repeat customers. This provides a stable retainer base that creates consistent profits.

1.3 Keys to Success

The keys to the success in this business are:

  • Consistent, timely, and accurate expertise and information to fulfill the client’s printing needs.
  • Offer one-stop-shopping with competitive pricing for the quality of products and services offered.
  • Build long-term relations with clients to develop a loyal repeat customer base.

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See why 1.2 million entrepreneurs have written their business plans with LivePlan

Company summary company overview ) is an overview of the most important points about your company—your history, management team, location, mission statement and legal structure.">.

R & R Printing is a new print brokerage firm.

2.1 Company Ownership

R & R Printing is a sole-proprietorship owned by Robert M. Scott, operated by Robert M. Scott and his wife Ronda E. Scott. The owner has extensive prior experience as a sales manager in the printing industry. Incorporation will be explored as a later option.

2.2 Start-up Summary

Our initial start-up costs will amount to approximately $65,000, of which $15,000 will be used to purchase office equipment and up-front manufacturing costs until credit is established with vendors. Additionally, we project the need for a financial commitment of another $50,000 to finance receivables and payroll expenses for the first 12 months of operation.

Print broker business plan, company summary chart image

2.3 Company Locations and Facilities

This is a home office venture, located in a studio in the owner’s home.

Products and Services

R & R Printing provides print media and related services. We are especially focused on providing the broadest possible types of print media, in addition to our knowledge and expertise of the print industry.

3.1 Product and Service Description

R & R Printing is a full service agency that sells printing and related services. Products such as business cards, letterhead, envelopes, brochures, booklets, business forms, posters, catalogues and labels are manufactured and delivered on a timely and cost effective basis. The added value of R & R Printing is its knowledge and expertise. Printing needs are evaluated and assessed; ideas and solutions are offered for each client to meet their individual needs. Most companies require a number of varied print media in order operate, market, and communicate efficiently on a daily basis.

3.2 Competitive Comparison

The print industry is competitive. The way we differ is to define the vision of the company to be a reliable and informative ally to our clients. Most printing companies can only afford a small variety of printing equipment, therefore can only offer a limited type of print media. We maintain close contact with several print manufacturers, paper distributors, and graphic specialists in order to offer most any type of printing on any type of paper at a competitive price. We know where to turn for all types of printing, this saves our clients money and time that would be wasted searching this broad field for each precise need.

3.3 Sales Literature

The business will begin with an introductory letter to all former and prospective clients sharing our exciting news of the creation of our business. We will include our business cards with each letter to ensure easy access to our business number, mobile numbers, fax number, email address and physical address. This letter will be developed as part of the start-up expenses.

3.4 Fulfillment

R & R Printing has established relationships with several trade-only print companies and paper distribution companies. Two of the trade-only print companies and three of the paper distribution companies have been selected as our primary vendors. We have been able to identify opportunities to capture margins of up to 45% for certain parties. Sourcing opportunities will be continually evaluated.

3.5 Technology

We use QuickBooks Pro™ software for accounting, purchasing, taxes, estimating, and invoicing. Act 2000™ is a sales based software that enables us to keep track and effectively manage client accounts. Talkworks Pro™ is a communication software that acts as voice mail, fax machine, and message notification, so that we can keep in close contact with our clients and vendors. These three previously mentioned software programs integrate with each other so to minimize redundancy.

Our business plan will be generated on an annual basis using Business Plan Pro™ software, and will be evaluated quarterly.

Most printing customers provide artwork on electronic digital files. We will maintain contacts with vendors who use the most current versions of graphics, printing, and publishing software from such companies as Adobe®, Corel®, Broderbund®, among others. This allows for the artwork to be recreated exactly to the clients specifications.

3.6 Future Products and Services

Within the next year we will implement a website for R & R Printing to process quote request and repeat orders.

Market Analysis Summary how to do a market analysis for your business plan.">

R & R Printing focuses on local large businesses that utilize a variety of printed materials.

4.1 Market Segmentation

Our market segmentation scheme allows room for estimates and non-specific definitions. We focus on large companies, and it is hard to find information to make exact classifications. Our target companies are large enough to utilize a great deal of print products, but small enough that they do not have in-house printing equipment. We say that our target market company has at least 50 people.

4.2 Target Market Segment Strategy

Our target markets are larger companies that utilize diverse printed materials. We chose this group because the marketing and purchasing departments are generally too busy to research and follow a printed product from beginning to end. They usually rely on the expertise and knowledge of a print vendor they can trust. The focal point of our marketing strategy will be direct face-to-face contact with those individuals that make the print vendor choice.

4.2.1 Market Growth

According to the December 1999 issue of Fortune Magazine , Dallas was ranked number one in their “Best Cities for Business” article. They noted that the Dallas economy is growing at 4.8% annually, significantly above the national average. According to the publication Greater Dallas Chamber , for the year 2000 there are more than 140,000 businesses in the Dallas area, and more that 5,000 corporate headquarters. Eleven of the nation’s largest private firms are located in Dallas and 19 Fortune 500 public headquarters. There are 43 colleges and universities. All of these businesses use printed products. As these businesses grow so does their need for printed material.

Printing is one of the largest manufacturing industries in the United States. According to Ron Davis, Ph.D in his report in the PIA 2000 Print Market Atlas , “print markets should remain healthy, providing printers with many opportunities for success.” He states that print sales should rise five to six percent, adjusted for inflation and the increase is at three to four percent. The five to 10 year outlook looks quite similar.

4.2.2 Market Needs

The most important market needs are knowledge, reliability, pricing, timely completion and high quality. One of the key points of our strategy is to focus on those decision making individuals that know and understand these needs.

4.3 Service Business Analysis

The following is a description of market segmentation, strategies, and industry analysis.

4.3.1 Distributing a Service

The primary distribution pattern in the printing business is from supplier to agent to consumer. The agent can be an in-house sales person or independent broker.

4.3.2 Competition and Buying Patterns

Printing is generally considered a commodity bought at the lowest price on a bid basis for every job. Service, quality, reputation, and timely production are also factors that effect the final decision to whom the project is awarded.

4.3.3 Main Competitors

Other Print Brokers:

There are numerous print brokers already established. Some of which have been highly successful due to their number of years in the business and established client base. These brokers already have more work than they can handle.

Commercial Printing Companies:

This field is dominated by individually owned print shops that can turn around the work quickly when sold in-house. However, high turnover in employees, especially sales people, makes it hard for them to retain long-term clients.

4.3.4 Business Participants

The printing industry is similar to many others. There are;

  • Large national franchises, such as Minute Man, Sir Speedy and Kinkos.
  • Medium sized commercial printing companies that produce large quantity of full color work, such as 50,000 full color brochures or flyers.
  • Small quick print shops, that are individually owned, that do work such as copy, stationery, business cards, newsletters, etc.
  • Print brokers provide all the above as one-stop-shopping.

The Printing Industries of America, Inc. (PIA) gives some indication of the number of local participants in its PIA 2000 Print Market Atlas . Dallas ranked eighth in the United States with 804 print facilities, 18,009 employees, and producing 2.4 billion pieces of print media per year. According to Printing Manager Online Experts , the printing field is dominated by relatively small, privately owned businesses.

Strategy and Implementation Summary

In order to reach its goal of becoming a successful printing company, R & R Printing will adopt the following strategy:

  • Emphasize expertise, professionalism, and reliability.
  • Build a long-term relationship-oriented business.
  • Provide solutions, service, and quality printing to our clients.

5.1 Strategy Pyramid

R & R Printing’s marketing efforts depend on recognition for expertise, professionalism, and reliability. It starts with our known contacts, recommendations from satisfied clients, and continues with long-term fulfillment of our promises.

We have already developed a database of contacts from previous sales positions. We utilize our database to make regular contact and updates; most of our contact is face-to-face. This keeps our name and reputation in view of the customer as much as possible, so when a print need approaches these consumers choose R & R Printing for their printing needs.

5.2 Sales Strategy

Sales strategy for R & R Printing is simple and straightforward: customer satisfaction. Happy customers will be repeat customers, and they will provide referrals to new customers.

Sales forecast figures are based on Rob Scott’s last five years of performance in this field while employed by another printing company.

Sales projections are detailed in the Sales by Year chart.

5.2.1 Sales Forecast

The important elements of the sales forecast are shown in the Sales Monthly chart and table. We expect a steady fast paced growth during the first year. Sales growth is estimated to grow at an estimated 50% annually through the first three years of operation.

Print broker business plan, strategy and implementation summary chart image

5.3 Value Proposition

Our value proposition has to be different from the standard printing vendor. We offer our clients a vendor who is an ally, who is going to work for them and with them to obtain the product and service they want. Our confidence and ability translates into confidence for the consumer and a starting point towards developing long-term relationships and trust.

5.4 Competitive Edge

Our most important competitive edge is our relationship with our clients as a strategic ally. By building a business based on long-standing relationships with satisfied clients we simultaneously build defenses against competition. The longer the relationship stands, the more we help our clients understand what we offer and why they need it.

5.5 Marketing Strategy

R & R Printing adheres to the theory that the goal of business is to create and keep customers. The marketing strategy will reflect this goal as R & R builds its reputation. Our focus will be:

  • Reliability, expertise, and quality.
  • Building long-term personal relationships with those that make the printing decisions for a company.
  • Establishing face-to-face contact with the client as much as possible.

5.5.1 Distribution Strategy

R & R Printing’s distributing strategy will focus on the the target market in the Dallas area to whom it will sell directly.

5.5.2 Marketing Programs

The most important marketing program for R & R Printing is to get the word out, through a combination of the following:

  • Sending a letter of announcement with enclosed business cards to all existing contacts. Ronda Scott will be responsible with a budget of $1,500 and a milestone date of September 5, 2000. This program is intended to inform them of our services, excite the potential clients about our new endeavor, and create interest in R & R Printing. Achievement should be measured by the number of requests for printing quotes by these individuals.
  • Making personal contact by calling and paying a personal visit to existing contacts. Rob Scott will be responsible with a budget of $600 and a milestone of October 10, 2000. This program is intended to establish personal relationships, and inform the contacts of our services. Achievement should be measured by the number of requests for printing quotes by these individuals.

5.5.3 Positioning Statement

For business professionals who want their printing accurate, on time, with the utmost reliability, R & R Printing is a vendor and ally who ensures high quality printing, fair pricing, and personal service. Unlike other printing vendors, R & R Printing establishes personal long-term relationships, goes to the customer to offer proactive ideas, solutions, services and quality printing.

5.5.4 Pricing Strategy

Much of our pricing is determined by market standards. R & R Printing will attempt to maintain margins of 30% to 35%. We will make every effort to maintain a competitive pricing policy.

5.5.5 Promotion Strategy

During our first few weeks of operation, we plan to mail a personal letter to all of our previous contacts, expressing our excitement of our new company, and offer quality printing and service. We will enclose our business cards in each letter so all contact information is easily accessible. We will also call and go directly to previous contacts in order to emphasize our personal service. We will depend on word of mouth by our satisfied clients, which will always be our most important means of promotion.

5.6 Milestones

The accompanying table lists important program milestones, with dates, responsible parties, and budgets for each. The milestone schedule indicates our emphasis on planning for implementation.

What the table does not show is the commitment behind it. We will hold follow-up meetings every month to discuss accomplishments, variances and course corrections.

Print broker business plan, strategy and implementation summary chart image

Management Summary management summary will include information about who's on your team and why they're the right people for the job, as well as your future hiring plans.">

The initial management team depends on the founders themselves. Our management philosophy is based on responsibility and mutual respect. Our team includes Rob Scott and Ronda Scott. Rob will handle sales responsibilities, and Ronda will handle all administrative tasks.

6.1 Management Team

Rob Scott, owner: 36 years old, B.A. Geology with Business minor, Southwest Texas State. Rob has 10 years experience in direct selling, including five years as sales manager at Montgomery Press. As a printing sales person at Montgomery Press he increased his sales on an average of 45% per year for five consecutive years, this yielded a 640% increase in his overall sales.

Ronda Scott, president: 36 years old, B.S. Biology, Texas Woman’s University. Ronda has seven years experience in sales and service industries.

Donna Elston, accounting consultant. Retired comptroller for Rodger Meier Cadillac. Over 25 years experience in business accounting. Donna will act as consultant and advisor for R & R Printing accounting and administrative needs.

6.2 Personnel Plan

The founder is the sole paid employee.

Financial Plan investor-ready personnel plan .">

R & R Printing’s financial plan is detailed in following sections. Preliminary estimates suggest that we will experience a steady growth in the first year of operation. Income estimates are based, in part, on anticipated revenues from accounts that were secured by Rob Scott in his prior sales position. R & R Printing also anticipates an increase in gross margin and sales volume. Thus, the overall financial plan presents a conservative but realistic depiction of R & R Printing’s financial position.

7.1 Important Assumptions

R & R Printing assumes the following:

  • Market growth projections for the printing industry are accurate.
  • National economic conditions, which are favorable to the printing industry, will not experience significant decline in the next three years.
  • Conditions will remain favorable for service providers and R & R Printing will be able to maintain those relationships.

7.2 Key Financial Indicators

The following chart indicates R & R Printing’s key financial indicators for the first three years of business. R & R Printing anticipates growth in sales with relatively stable operating expenses. Favorable economic conditions and forecasts of continued growth in the printing market support R & R Printing planned financial success.

Print broker business plan, financial plan chart image

7.3 Break-even Analysis

The following table details R & R Printing’s break-even analysis.

Break-even calculations assume a 25% to 30% gross margin. This is a conservative estimate, and it will be improved as strategic relationships develop and the benefits of R & R Printing offerings are realized by customers.

Print broker business plan, financial plan chart image

7.4 Projected Profit and Loss

R & R Printing’s profit picture improves as operations progress into the second quarter of operation. R & R Printing anticipates improving its gross margin from 25% in year one to 30% in year two. Annual estimates of profit and loss are detailed in the following table.

Print broker business plan, financial plan chart image

7.5 Projected Cash Flow

Monthly cash flow is shown in the following illustration. Annual cash flow figures are estimated based on collection days included in the table. Annual cash flow for the first year of operation becomes positive in the second quarter of operation.

Print broker business plan, financial plan chart image

7.6 Projected Balance Sheet

The Projected Balance Sheet is quite solid. We do not project any trouble meeting our debt obligations — as long as we can achieve our specific objectives.

7.7 Business Ratios

The following table details our primary business ratios. Initial analysis indicates that R & R Printing ratios for profitability, risk, and return are financially favorable and will improve greatly in year two of operation. Business ratios for the years of this plan are shown below. Industry profile ratios based on the Standard Industrial Classification (SIC) code 2752, Commercial Printing, Lithographic, are shown for comparison.

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