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Francisco Ortiz-Zepeda Insurance Agency: a feasibility study
In planning ahead for the future, steps should be taken to mitigate risk. We cannot prepare for everything, but we do have the power today, to protect against financial loss due to unmitigated risk. Insurance is a way for people to transfer risk; it is a way to accumulate cash, and it is also the best way to instantly create an estate. It is peace of mind with certain assurance that things will be okay. Because of our great commitment to family and work, and all things that matter to us, risk mitigation suddenly becomes an important factor. This study explores the feasibility of opening an insurance agency to help with risk mitigation and financial planning. This feasibility study begins with an introduction and is followed by the motivation behind the insurance business plan. The author gives a general description of the business and its products, and speaks about the competitive environment, of the local insurance industry. A SWOT analysis details the strengths and weaknesses of internal and external environmental forces, and a market analysis explores population size, growth rate, target market, median income, and the job market within the chosen location. The feasibility study also explores the details of the marketing strategy. In order to show profitability, the monthly requirement of policies sold will be described. Additionally, forecasted annual revenue for 3 years is summarized, as well as the contribution margin, breakeven point and the net present value (NPV) of cash flows. The feasibility study concludes with a brief summary and a recap.