Business Plan Executive Summary (Sample)
Introduction: Transko is establishing a decentralized AI-based Internet service for buying Insurance and related services. Our website (Transko.com) enables prospective buyers to gather valuable information and buy very specific insurance coverage from the convenience of their home or office, while receiving best-in-market quotes from our participating agents, hence maximizing their savings.
Market Analysis & Demand: Transko’s AI-based alternative to today’s generic Insurance packages dramatically reduces the selling costs of participating agents and increases sales volumes by channeling a large number of ready-to-buy, well-informed buyers to our participating agents. Based on last 9 months of operation, we have seen a clear market demand for our cost-saving service, giving us a prime opportunity to grow our scale and address the unmet demand.
Transko Solution: Customers wanting to purchase new Insurance package sign-up on the website and submit a purchase request specifying the type of Insurance desired along with their contact information. The buyer request is privately shared with participating agents to compete for the business, and our customers receive firm and competitive online offers within 24 hours. It’s a No-Win, No-Fee service because our fee is 15% of the “additional savings” that customer is able to make compared to a the quote of a local agent. We win only when our customer win.
Customers: Currently 3 out of 5 prospects who express interest are becoming customers: 60% Conversion Ratio, which is big by any business standards. Please see Appendix A for Customer Testimonials. Our online system minimizes human intervention, and hence the business is highly scalable. We are confident that from 2021 to 2025, Transko will grow into a profitable company with over 100,000 customers that we will use to cross-sell a range of insurance related products and financial services.
Financial Projections: This business is already earning revenues and getting great reviews by customers. 2008 is the first year of operation, and we expect to complete the year with $1 million in revenues and a small net profit this year itself. By 2025, we expect to reach $20 million in revenues with $5 million in net profit. These are conservative numbers given the rate of new customer accounts we are seeing today. To protect some of the unique business logic developed by the founders, we are applying for Patents in the US and UK.
Funding Requirement: Transko’s founders have grown the business to its current state and will continue to support it in every possible way. However, we want to fully exploit the the market demand that we have tapped – and maximize the reach of Transko’s successful business model. Therefore Tranko is seeking $1 million as growth capital. Over 2021-2025, Transko would generate significant earnings for its investors that we could either plough back into the business, or use it to provide an exit option to investors through share buy-back. Transko’s Net Worth should increase by 300% from 2021 to 2025, making this an attractive investment opportunity for investors with a time frame of 4-5 years, and an interest to be involved with a truly innovative online insurance platform.