Executive Summary
By focusing on low-priced and value-filled health insurance policies, Better Life has managed to find its feet in the local market. Since we started our business we’ve built up a reputation of giving people greater access to comprehensive health insurance. This public perception of Better Life will continue to bring in new clients, stakeholders, and talented personnel.
There are various keys to success that we’ve prioritized to achieve our mid-long-term goals and objectives. These include but aren't limited to:
- Clearly defining our target markets.
- Forming strategic partnerships with service providers in the medical field.
- Developing profitable and sustainable policies.
- Introducing a wider range of products and services that will help us become a dominant force in the industry.
- Building a strong management team that can help us accelerate the growth of our business.
Our business's financial growth is on the rise and has been over the last 6 years. Given the vibrancy of the health insurance market, we have ample opportunities to reach greater heights. We've established various SMART goals that we intend to achieve over the next 24 months. For instance, we're looking to achieve a growth in sales of at least 15% in that same period. We'll achieve this by incentivizing our sales agents to meet their targets and increase the quality of our service overall.
We also have plans to expand our service offering to more states - however, we're approaching this goal with caution as we conduct the necessary research.
The main attribute that sets our business apart from the competition is our significant focus on social media marketing. This area is where most of the company’s revenue is invested. Our strong social media identity has allowed us to create relatable content that resonates with the interests of our customers. Social media tools such as Hootsuite, MailChimp, Playbook, and Sprout Social have helped us build an engaged audience that will continue to support our business.
Better Life’s detailed and ongoing analysis of the health insurance market has helped us remain relevant in the eyes of our customers. Our pricing strategies, service offerings, and branding are also largely influenced by market analysis. Staying aware of key market trends has enabled us to stay ahead of the competition and make key decisions that drive the business' growth.
We're confident that if we maintain our financial management standards and find ways to maximize productivity whilst reducing expenses, the business' profits may even exceed our expectations.
We are currently seeking $150,000 in funds to recruit more sales agents for our call center - this will effectively increase our sales output by an impressive 20%. We’ll generate a return on investment of at least 10% year-on-year given we're able to secure this investment.
Better Life Health Insurance is seeking $1,000,000 in start-up or growth capital to fund operations, marketing, and staffing in the first 12 months.
Financial highlights:
| Metric | Year 1 | Year 2 | Year 3 |
|---|---|---|---|
| Revenue | $290,000 | $490,000 | $740,000 |
| Gross margin | 72% | 72% | 72% |
| Net profit / (loss) | $68,800 | $137,700 | $226,400 |
Company Overview
Better Life Health Insurance is a health insurance company founded by Victoria Moore, operating as a LLC. Headquartered in Columbus, Ohio, USA, Better Life Health Insurance was established to serve the growing demand for specialist services in this sector.
Mission: To deliver exceptional value to our customers through expertise, reliability, and a commitment to continuous improvement.
Business objectives:
| Period | Target |
|---|---|
| Year 1 | Establish brand, acquire initial client base, achieve operational break-even |
| Year 2 | Expand service offering, grow revenue by 50%, hire additional staff |
| Year 3 | Establish market position, target new geographic or demographic segments |
Better Life is a health insurance company headquartered in Denver, Colorado. The business was founded by Hugo Young in 2015 and is currently owned by Junior McKenzie and Phillip Pierce.
The business is based close to large retail establishments and transportation networks, making it far more visible for potential customers who are seeking comprehensive and affordable health insurance for themselves and their families.
The business’s ex-owner and current owners have extensive experience in the health insurance game - making the firm deeply rooted in the industry since its inception. Today, each member of our team is expected to portray the utmost professionalism and passion within their specific roles. This company culture has put Better Life among one of the very best health insurance services in all of Colorado.
Our shared value system is the epicenter of our business, making our mission to provide affordable health insurance all the more feasible.
Congrats! You've now officially built a solid foundation for the rest of your business plan lies upon. It’s time to get into the cutting-edge strategies that you've come up with to impress investors and build a thriving company.
Market & Customer Analysis
The health insurance industry is worth just under $2,4 billion. Needless to say, the market opportunity that exists is significant. To get a piece of this sizable pie we consistently study the market and identify possible opportunities and threats.
The big players in this US health insurance sector have well over ⅓rd of the total market share. To ensure that we can meet our objectives and goals we must keep an eye on the activities of our competitors - some of which have been in business for decades. Leveraging this key information has allowed us to differentiate ourselves from our industry rivals.
Taking relatively complex statistical data and breaking it down into a clear summary helps us address critical findings about the market landscape at large. Understanding that we're selling to human beings complements the ‘hard data’ we come across in a real-life setting.
By continuing to assess all developments in the market we'll be able to continue reaching our sales goals.
Customer analysis:
Better Life has put great emphasis on understanding the pain points of our customers from the onset. They all have one thing in common - the need for reliable health insurance at affordable prices. The basic need for quality healthcare and growing living expenses has resulted in us being able to consistently attract long-term clients.
Our primary customer base is between 24 - 79 years old and has a median household income of around $15,000. Given the remote nature of the health insurance business, we're able to service customers in all of Colorado. A distinct focus on social media marketing puts us in the position to potentially service customers across the US, given we're able to raise money to invest in this infrastructure.
Individuals who may have chronic illnesses, a poor body mass index, or have relatively dangerous jobs are among our most loyal customers. Providing attractive high-risk health insurance policies has helped us attract and retain a fair share of customers who previously supported some of our main competitors. That's how we know we're doing something right in terms of customer acquisition.
Better Life urges its customers to give feedback whenever possible. Our presence on review sites such as Hello Peter has allowed us to access a great deal of valuable information that we'd otherwise not have at our disposal. This has led to strategic adjustments in our operating hours, pricing, and overall services. This, in addition to our biannual focus groups, has been instrumental in the drafting of our customer analysis.
Competitor analysis:
| Competitor | Strengths | Weaknesses |
|---|---|---|
| Blue Cross Blue Shield | Established brand, wide reach | Higher price point, less personalised |
| UnitedHealth Group | Strong marketing, national presence | Generic offering, less specialist focus |
| Cigna | Competitive pricing | Lower service quality, limited expertise |
Health Insurance Company's competitive edge: Specialist expertise, personalised service, and a clear focus on the underserved segment of the market set us apart from the established players listed above.
SWOT analysis:
| Positive | Negative | |
|---|---|---|
| Internal | Strengths: Specialist expertise; experienced founder; strong client relationships; differentiated positioning | Weaknesses: Limited brand recognition as a new entrant; single location; reliance on founder capacity in early years |
| External | Opportunities: Growing market demand; underserved niche segments; digital marketing reach; referral network growth | Threats: Established competitors with greater resources; economic downturn reducing discretionary spend; regulatory changes |
Sales & Marketing Plan
Various facets of Better Life’s sales plan have enabled us to reach and surpass our sales goals over the last few years. We've been able to effectively attract customers through one key sales tactic - a free 11th and 12th month of health insurance for all active policyholders. This value offering in addition to our low-cost pricing structure has been crucial in increasing profits.
We've also formed strategic partnerships with 18 general practitioners across Denver who refer us to their patients. Since our sales team set out to approach general practitioners directly and inform them about our affordable health insurance service, we've experienced a revenue increase of over 8%.
Better Life has lofty ambitions in terms of sales. Increasing our sales performance by at least 9% YoY is the baseline objective for our business. A recent revamp to our website enables prospective customers 5o inquire about health policies in under 5 clicks - making the onboarding process quick and seamless. This simple adjustment to our customer acquisition processes has already proven to be significantly effective.
By incentivizing our sales teams to meet their targets, as well as the introduction of an all-expenses paid trip every year for our top performer, we've created a competitive and fruitful workplace environment amongst our talented and hardworking members of staff. Inviting seasoned sales professionals to conduct workshops has also made our sales team more incisive in their role.
Additional marketing notes:
Building a strong content marketing strategy has been crucial for Better Life in terms of visibility and authority in the health insurance industry. We run a health and wellness blog that is filled with top-tier posts that help our customers, and the public in general, learn how to manage their health and wellness. These mid to long-form posts tend to get upwards of 3,000 views each in the space of a year.
Our investment in learning about SEO and the ‘keywords that count’ has also improved the ranking of our website, of course leading to more clicks through to our website.
The power of social media marketing can't be undermined.
Did you know?
Over 90% of US companies with north of 100 staff members include social media as an integral part of their marketing strategy. This statistic has driven us to collaborate with health influencers who have a maximum of 10,000 followers across all platforms. This is mainly because these influencers are low-hanging fruits that usually don't charge upwards of $600 for months of promotion.
These core strategies have allowed us to meet all of our key performance indicators, thus showing us where our strategies have been successful as well as areas for improvement.
Operating Plan
Personnel Role Key Responsibilities Lesley Lorch Actuary Effectively scrutinizing data to calculate the cost and risk of Better Life’s policies Graham Smith Compliance Officer Making sure the business is adhering to industry regulations and standards Rex Thompson Data Analyst
- Using data to take advantage of market trends.
- Identifying patterns to make informed business decisions Frank Gabbiadini Sales Representatives Meeting sales targets through the sale of insurance policies Stacy Clarke Policy Administrators
- Overseeing the management of health insurance policies.
- Develop systems to increase the record capturing and updating procedures Portia Gibbon Underwriter
- Determining the risk of each insurance policy application.
- Drafting of our company's terms and conditions Steve Watkins Claims Processor Establishing the validity of insurance claims and processing them thereafter
Management Team
Junior McKenzie is the CEO of Better Life. He has extensive experience in the insurance business. Having started out as a field agent, he has a real knack for motivating our sales team as well as instilling a strong company culture. His passion for the health insurance industry is exemplified by his mission to increase the number of policyholders amongst low-income earners in particular.
Phillip Pierce is the VP of the company. He works closely with the CEO to meet the vision and mission of the business. As a qualified business manager, he wears many hats within our organization. This makes him a key individual for the present and future of Best Life.
Our CFO is Megan Brandt. She's currently an honors student at UCLA - yet still manages to meet her deliverables month after month. Her sheer dedication to ensuring that our business is in its best financial condition has made her an invaluable part of our time. From drafting cash flow statements to financial forecasts.
Our marketing manager, Gina Ramos, is one of our longest-serving team members. Her extensive experience within the company has enabled us to maintain a consistent brand message and identity. Beyond her formal education at the University of California, she has a myriad of digital marketing-related certifications. This has made Gina a marketing manager with a diverse set of skills and boosts the credibility of our business.
Ian Young runs our HR department. He’s responsible for recruiting top talent that will make a good addition to our diverse team. Beyond that, Ian also takes it upon himself to facilitate the onboarding and training of recruits. The drafting of contracts and carrying out disciplinary action is also one of his main responsibilities.
Financial Plan
Projected Profit or Loss Statement
Year 1 Year 2 Year 3 Sales $90,000 $170,000 $300,000 Direct Cost of Sales $20,500 $30,000 $82,000 Production Payroll $0 $0 $0 Other $0 $0 $0 Total Cost of Sales $20,500 $30,000 $82,000 Gross Margin $69,500 $140,000 $218,000 Gross Margin % 77% 82% 73% Operating Expenses
Sales and Marketing Expenses
Sales and Marketing Payroll $20,000 $40,000 $40,000 Advertising/Promotion $800 $1,000 $1,000 Travel $0 $0 $0 Miscellaneous $500 $500 $500 Total Sales and Marketing Expenses $21,300 $41,500 $41,500 General and Administrative Expenses
General and Administrative Payroll $20,000 $40,250 $100,250 Sales and Marketing and Other Expenses $0 $0 $0 Depreciation $1,000 $1,000 $1,000 Dues and Subscriptions $200 $200 $200 Professional Fees $300 $300 $300 Rent $2,000 $2,000 $2,000 Software Purchases $0 $15,000 $0 Insurance $2,000 $2,000 $2,000 Telephone and Internet Access $2,000 $2,000 $2,000 Utilities $400 $400 $400 Miscellaneous $0 $0 $0 Payroll Taxes $500 $1,200 $3,000 Other General and Administrative Expenses $0 $0 $0 Total General and Administrative Expenses $28,400 $64,350 $111,150 Other Expenses:
Other Payroll $0 $0 $0 Consultants $0 $0 $0 Contract/Consultants $0 $0 $0 Total Other Expenses $0 $0 $0 Total Operating Expenses $28,400 $64,350 $111,150 Profit Before Interest and Taxes $19,800 $102,840 $225,410 EBITDA $19,800 $103,860 $226,430 Interest Expense $800 $3,632 $2,957 Taxes Incurred $0 $24,802 $56,540 Net Profit $19,000 $34,150 $65,350 Net Profit/Sales 21% 20% 22%
Projected Cash Flow Statement Cash Received Year 1 Year 2 Year 3 Cash from Operations
Cash Sales $90,000 $170,000 $300,000 Cash from Receivables $0 $0 $0 Subtotal Cash from Operations $90,000 $170,000 $300,00 Additional Cash Received
Sales Tax, VAT, HST/GST Received $0 $0 $0 New Current Borrowing $20,000 $0 $0 New Other Liabilities (interest-free) $0 $0 $0 New Long-term Liabilities $0 $0 $0 Sales of Other Current Assets $0 $0 $0 Sales of Long-term Assets $0 $0 $0 New Investment Received $0 $0 $0 Subtotal Cash Received $110,000 $170,000 $300,000 Expenditures
Expenditures from Operations
Subtotal Spent on Operations $48,900 $94,350 $111,150 Additional Cash Spent
Sales Tax, VAT, HST/GST Paid Out $800 $0 $0 Principal Repayment of Current Borrowing $10,000 $10,000 $0 Other Liabilities Principal Repayment $0 $0 $0 Long-term Liabilities Principal Repayment $0 $0 $0 Purchase Other Current Assets $0 $0 $0 Purchase Long-term Assets $0 $0 $0 Dividends $0 $0 $0 Subtotal Cash Spent $59,700 $104,350 $193,150 Net Cash Flow $50,300 $65,650 $106,850 Cash Balance $19,000 $34,150 $65,350 Projected Balance Sheet Assets Year 1 Year 2 Year 3 Current Assets
Cash $90,000 $170,000 $300,000 Accounts Receivable $0 $0 $0 Other Current Assets $0 $0 $0 Total Current Assets $90,000 $170,000 $300,000 Long-term Assets $10,000 $9,000 $8,000 Accumulated Depreciation $1,000 $1,000 $1,000 Total Long-term Assets ($1,000) ($1,000) ($1,000) Total Assets $100,000 $179,000 $308,00 Liabilities and Capital
Current Liabilities
Accounts Payable $0 $0 $0 Current Borrowing $20,000 $10,000 $0 Other Current Liabilities $0 $0 $0 Subtotal Current Liabilities $20,000 $10,000 $0 Long-term Liabilities $0 $0 $0 Total Liabilities $20,000 $10,000 $0 Paid-in Capital $30,000 $30,000 $30,000 Retained Earnings ($20,000) ($30,000) $41,000 Earnings ($12,000) $44,000 $160,000 Total Capital ($2,000) $44,000 $231,000 Total Liabilities and Capital $18,000 $54,000 $231,000 Net Worth $80,000 $169,00 $308,000
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3-year profit & loss projection:
| Year 1 | Year 2 | Year 3 | |
|---|---|---|---|
| Revenue | $290,000 | $490,000 | $740,000 |
| Carrier commissions and direct client costs | $81,200 | $137,200 | $207,200 |
| Gross profit | $208,800 | $352,800 | $532,800 |
| Gross margin | 72% | 72% | 72% |
| Salaries and wages | $63,800 | $107,800 | $162,800 |
| Marketing and advertising | $34,800 | $58,800 | $88,800 |
| Rent and utilities | $24,000 | $24,000 | $25,200 |
| Other operating costs | $17,400 | $24,500 | $29,600 |
| Total operating expenses | $140,000 | $215,100 | $306,400 |
| Net profit / (loss) | $68,800 | $137,700 | $226,400 |
Break-even analysis:
- Estimated monthly fixed costs: $11,700
- Monthly revenue required to break even: $16,200
- Break-even is projected to be reached within the first 12–18 months of trading.