A baggage insurance business plan is a special sort of document that describes a fairly new business model. With the increasing headache of TSA and heightened security measures at airports worldwide, there has been a marked uptick in the number of bags lost not just on U.S. airlines but on other travel methods (bus, train, ship, etc.) as well. Once seen as something of a novelty, the risk of losing your luggage – permanently – is a real threat these days, and with that, insurance for luggage and baggage recovery businesses have found their calling. But what topics does your personal business plan need to address in order to stand up to a banker's review? Here are some topics to get you started:
• What figures on lost luggage support the market opportunity?
• Will you have a specific geographic area of operations?
• What are the rates you'll offer and what fees will assess for coverage?
• Which agencies will underwrite your policies?
• What methods do you have to facilitate baggage recovery?
Your business plan needs to investigate the rate of lost luggage across each method of travel with special attention paid to air travel, as it is the highest use method. You should also look into any competing businesses (small insurance agencies, baggage claim “experts,†etc.) and talk about protection insurance from Expedia and Orbitz et. al. as a secondary threat. You'll need a management section and a personnel plan, as well as a complete start-up summary showing how you will spend your seed money. The financial section will show 3 years of revenues and expenses resulting in a break-even point and reasonable net profit percentage. MasterPlans has written business plans for all sorts of business models across a huge expanse of industries. If you need help or don't want the headache of building from scratch, call a MasterPlans consultant today at (877) 453-2011.
