The opportunity I’ve seen for my business is the ability to
help people with an unsought need, but one that is actually needed. For example,
people with families and finances used to support others, can benefit from life
insurance to keep supporting others if anything life threatening were to happen
to them. I classify this as an unsought need because people do not wake up and go
out and look for life insurance. It is a need one must make aware to them. In
my dealings with potential customers, I’ve come to the realization that once
they are made aware of the potential benefits life insurance will offer them, it
practically turns into a necessity.
I’ve also identified my potential customers as a wide age
range. Life insurance does not cover just those in good financial position who
have something to lose in a life-threatening situation. It covers everyone just
because the premise of this idea is that “everyone is in denial of their
mortality’. That expression so clearly identifies the target audience, because
at any point in your life, something can happen that renders you incapable of
taking care of yourself. If you are a young teen who has recently become
independent with a job and an income, the last thing you want to do is have to
become dependent on your parents for the remainder of your life. Without a
proper compensation plan to be careful about the future, how can you be
prepared. However, this opportunity also becomes equally important to those who
have an income and have dependents upon that income. Examples of this include
husbands, children, wives, parents, and just relatively anyone that depends on
you. Those that depend on you cannot afford for anything to happen to you,
which is where life insurance plays a role. Basically means, expect the
unexpected.
This market is opened for life. The window of opportunity
will never close because no matter what people will need to be insured for the
rest of their lives. Unless there is an alternative to insurance in which
people can protect themselves from these unexpected accidents, I believe life
insurance will be here to stay. As for the geographical context, I plan to stay
in America. Expanding to international areas brings too many problems and
changes I believe I’m not ready for, until my business has reached the maturity
stage of its process. America is the biggest economy in the world, so to be
able to market and sell my product in an economy of this scale, I believe my profit
margins are going to be well over enough.
Figuring all this out has given me an amazing opportunity
that most don’t understand. People try to find opportunity in things that consumers
seek out on a daily basis. My idea has formed by thinking just a little bit
outside the box.
After discovering my opportunity, I have been able to be
innovative with the product. The biggest problem in finding customers is the
fact that life insurance policies become to unexpected. Most consumers have the
mindset of not wanting to pay for something they don’t directly reap rewards from.
Car insurance is a necessity if you want to drive a car, but sometimes most don’t
even offer to pay for that. Consider the fact that this is a legal requirement
to even drive a car. To bypass this barrier, I have formed a plan create
customizable insurance plans that become affordable to every age range. The
purpose of this is the idea that it appeals to every age range and that not
everyone wants to have the same life insurance coverage. But why would a
younger person pay the same price as an older person who is well into his/her
career and is already financially stable? This is where my company truly
elevates the game to the next level.
Creating these customizable plans will lower my commissions
deeply. The plan is having cheaper commissions but bigger quantities of
customers. Kind of taking a Walmart style approach by appealing to a larger clientele
is another form of innovation. Walmart was a pioneer in the field of grocery
and wholesale who completely changed the game. This is my idea. It will take a
lot of work but being an innovator is where the true entrepreneurs really
become successful.
I have defined my innovation and my opportunity, so the next
step is my venture capital. Customers would switch to my idea for the fact that
they get a personalized plan based on finance, age, and expected growth. This
way they can pay for a plan that offers similar coverage for the price they are
able to, not just one that is a standard rate for everyone. This is going to
involve heavy collaboration and relationships with life insurance companies to
be able to get these plans but expected profit and payout will be enough to
provide incentive. In every fair market there is always going to be competition,
but that Is the only way capitalism would work. Obviously, my main competitors
will be well trusted agencies that have been around for a long period of time. These
agencies have a giant customer base and have well established relationships
with the life insurance companies and their customers.
The great thing about this service-based industry is that we
don’t need packaging or distribution in terms of materialistic areas. However,
distribution is important in this area. We must have proper distribution with
life insurance plans and keep a standard system for keeping customer database
in check. Also, setting a proper business is the biggest step in making this
big. I love this because my business can start with just me and as profits and
clients grow so can my business. Bringing on a second employee would be an
assistant to keep track of my customers to be able to keep expanding. After
having a good database of customers I can begin to bring in another salesperson
and continue gradual expansion.
Hello Joel, Your post was very insightful and you really explained your business model well. I like how you emphasized that your business isn't just for elderly people or people that have money too lose. I like how you are advertising it to younger people as well. I think it's a great Idea because not many people look into life insurance policy until they are much older. It seems like it's the beginning of a new market.
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