1. THE KEVIN MCHUTCHISON AGENCY BUSINESS PLAN Prepared by Kevin McHutchison August 2012

2. Executive Summary  Venture Description  The Kevin McHutchison Agency  Farmers Insurance Group  Management and Organization Plan  Sole-Proprietorship  Farmers Agency Point

3. Executive Summary  Marketing Plan  Saturated market  Personalized agent interaction  Local branding and community involvement  Financial Plan  Farmers Subsidy program  Low start up cost  Low overhead for the initial year

4. Management and Organization Plan  Legal Form of Business  Sole-Proprietorship  Management Team  Advisory Board  Recruitment and Selection of employees

5. Management and Organization Plan  Compensation and Ownership  Family Based Business  Employee Reward and Incentive Plan  Communication  Infrastructure

6. Product/Service Plan  Product purpose  Stage of Development  Product Limitations  Product liability  Related products and Spin-Offs  Government Approvals

7. Product/Service Plan Liability protection for bodily injury Liability protection for Personal Property Personal Injury protection (Covers Libel and Slander) Personal property including dwelling replacement Collision and Comprehensive coverage for autos Death benefits Protection of assets such as homes, pensions, 401k's, investments, and future earnings which can be up to 25% of someone’s annual earnings. Peace of mind for income continuation in the event of a family member's death. Funeral expense proceeds Protection for others in the event of a customer's negligence Insurance can put the customer back to where they were before the loss. FeaturesBenefits

8. Marketing Plan  Industry Profile  Current size  Growth potential  Trends  Competitive Analysis  Competition – Direct and Indirect  Market Analysis  Target market profile  Customer profile  Future markets

9. Marketing Plan  Pricing  Pricing Strategy  Market Penetration  Excellent Customer Service  Location  Sales force  Advertising  Publicity  Effectiveness

10. Financial Plan Start-Up Costs  Opening inventory - $150  Computer equipment – 300  Equipment and Machinery – 250  Furniture and Fixtures - 200  Accounting fees – 100  Corporate fees and taxes – 100  Insurance – 150  Legal and consulting fees 150  Marketing costs – 250  Meals and entertainment – 200  Office supplies – 150  Benefits – 250  Advertising – 45  Other startup costs - 500  Sales Projections  Year 1 - $47,500  Year 2 – 72,600  Year 3 – 84,600  Income Projections  $26763 in the first year,  $53,460 in the second year  $64,940

11. Financial Plan  Cash Requirements  Sources of Financing  Farmers subsidy program  Farmers Insurance Group Federal Credit Union Agency Secured Loans  Exit Strategy

12. References  FIGFCU, 2012, Compare Agency Loans, Farmers Insurance Group Federal Credit Union, https://www.figfcu.com/page.agent.php?id=160. https://www.figfcu.com/page.agent.php?id=160  Insurance and Technology, 2012, Accenture's Insurance Technology Trends for 2012, found at http://www.insurancetech.com/architecture- infrastructure/2323001http://www.insurancetech.com/architecture-infrastructure/23230015454  NJ Department of Banking and Insurance, 2012, Property and Casualty providers, found at http://www.sthttp://www.state.nj.us/dobi/division_consumers/insurance/autoinscontacts.htmate.nj.us/do bi/division_consumers/insurance/autoinscontacts.htm http://www.sthttp://www.state.nj.us/dobi/division_consumers/insurance/autoinscontacts.htmate.nj.us/do bi/division_consumers/insurance/autoinscontacts.htm  Perez, W., 2012, Types of Business Organizations, About.com Tax Planning: U.S., http://taxes.about.com/od/taxplanning/a/incorporating_2.htm. http://taxes.about.com/od/taxplanning/a/incorporating_2.htm http://taxes.about.com/od/taxplanning/a/incorporating_2.htm  Plunkett Research Ltd., 2011, Insurance Industry Overview, found at http://www.plunkettresearch.com/insurance-risk-management-market-research/industry- statihttp://www.plunkettresearch.com/insurance-risk-management-market-research/industry- statisticsstics http://www.plunkettresearch.com/insurance-risk-management-market-research/industry- statihttp://www.plunkettresearch.com/insurance-risk-management-market-research/industry- statisticsstics  Select USA, 2011, The Financial Services Industry in the United States, found at http://selectusa.commerce.gov/industry-snapshots/financial-services-industry-united- stathttp://selectusa.commerce.gov/industry-snapshots/financial-services-industry-united-stateses http://selectusa.commerce.gov/industry-snapshots/financial-services-industry-united- stathttp://selectusa.commerce.gov/industry-snapshots/financial-services-industry-united-stateses