Are you about starting a bail bond business? If YES, here is a complete sample bail bond business plan template & feasibility report you can use for FREE.

Among the vast business opportunities which an aspiring entrepreneur could start with very minimal capital and still generate reasonable income annually is a bail bond business. You can be sure that your services would always be in demand by people who can’t afford to hire the services of established consultants or get people to help them secure their release by paying the required bail bonds.

One good thing about this business is that you can handle up to 20 clients per time depending on how organized and hardworking you are.

A Sample Bail Bond Services Business Plan Template

Industry Overview

The bail bond services industry comprises of firms that provide security bonds backed by insurance companies that cover the risk involved in releasing a defendant in judicial custody until a trial’s conclusion. Bail bond agents guarantee payment of the full amount of the bond if the defendant fails to appear for their scheduled court appearance.

Please note that insurance companies that underwrite bond contracts are not included in this industry. This is how it works, a person who has been arrested for a crime attends a trial hearing, at which point the judge decides if the defendant will be eligible for bail, also called a pre-trial release.

Bail is the temporary release of an accused person awaiting trial and is usually awarded based on certain conditions and with consideration for the defendant’s potential danger to society. The most common types of pre-trial release are unsecured bond, personal recognizance, deposit bond, surety bond and collateral bond.

Of these, deposit bond, surety bond and collateral bond are all categorized as releases based on a financial condition. Personal recognizance, an unsecured bond and other types of conditional releases award bail based on non-financial conditions.

The Bail Bond Services industry is indeed in a mature stage of its growth. The industry is characterized by growth in line with the overall outlook of the economy, consolidation from the largest players in the industry and wholehearted market acceptance of industry products and services. The services offered by bail bond agents will continue to be in high demand by the general public in the united states.

The Bail Bond Services industry is indeed a large industry and pretty much active in most developed countries of the world. Statistics has it that in the United States of America alone, there are about 18,620 registered and licensed bail bond services businesses responsible for employing about 23,888 people and the industry rakes in a whooping sum of $2 billion annually.

The industry is projected to enjoy 0.0 percent annual growth within 2013 and 2018. Please note that there are no organization that can boast of having a lion share of the market.

More than half of the industry comprises sole proprietors and partnerships due to the industry’s low barriers to entry. Market share concentration is expected to continue increasing over the next five years as companies look to mergers and acquisitions for increased revenue.

The report further stated that acquisition activity is common in a mature marketplace, and IBISWorld projects that this trend will continue over the next five years as businesses focus on cutting costs and improving productivity. Companies will look to grow market share by acquiring smaller operators and their portfolios.

One thing is certain about starting a bail bond business, if you are able to conduct your market research and feasibility studies, you are more likely not going to struggle to secure clients because there are always clients all across the United States who would need your services from to time.

Some of the factors that encourage entrepreneurs to start their own bail bond business is that the business has low level entry requirements and it can be started with very little startup capital especially if you choose to start from the comfort of your home.

To sum up, with bail bond business, you can afford to partner with other smaller firms that are into bail bonds services and you can partner with law firms. The bottom line is that if you have a robust network and you are well positioned, you can indeed maximize this business.

Executive Summary

Mario Berkley® Bail Bonds Services, LLC is a registered and licensed bail bonds services firm. The business will be based in Springfield – Illinois and we are able to secure a well – standard office facility in one of the most patronized office complexes in Springfield.

Mario Berkley® Bail Bonds Services, LLC is a client – focused and result driven bail bonds service that provides security bonds, backed by insurance companies that cover the risk in granting pretrial release to defendants awaiting sentencing.

We will also guarantee payment of the bond if the defendant fails to appear for their scheduled court appearance. We will carry out our services at an affordable fee that won’t in any way put a hole in the pocket of our clients. We will offer standard and professional bail bonds services to all to our clients.

At Mario Berkley® Bail Bonds Services, LLC, our client’s best interest would always come first, and everything we do is guided by our values and professional ethics.

Mario Berkley® Bail Bonds Services, LLC will at all times demonstrate her commitment to sustainability, both individually and as a firm, by actively participating in our communities and integrating sustainable business practices wherever possible. We will ensure that we hold ourselves accountable to the highest standards by meeting our client’s needs precisely and completely.

Our plan is to position the business to become one of the leading brands in the whole of Springfield – Illinois, and also to be amongst the top 15 bail bonds services in the United States of America within the first 10 years of operation.

This might look too tall a dream but we are optimistic that this will surely be realized because we have done our research and feasibility studies and we are confident that Springfield – Illinois is the right place to launch our bail bonds business.

Mario Berkley® Bail Bonds Services, LLC is owned and financed by Mario Berkley. He was born in East Lansing, Michigan and has a Degree: B.S. in Business Administration from the University of Nebraska-Lincoln; MBA in Economics from Columbia Business School. He has over 5 years of hands on experience working for one of the leading players in the bail bonds services industry in the United States of America prior to starting his own business.

Our Product and Services Offerings

Mario Berkley® Bail Bonds Services, LLC is going to offer varieties of services within the scope of the industry. Our intention of starting our bail bonds services firm is to work with individuals and organizations who would want to outsource their bail bonds concerns to professionals.

We are prepared to make profits from the industry and we will do all that is permitted by the law in the United States to achieve our business goals, aim and ambition. Our business offerings are listed below;

  • Selling secured bail bonds
  • Selling unsecured bail bonds
  • Providing financing for bail bond premium fees
  • Personal recognizance, deposit bond, surety bond, collateral bond and other type of pretrial release
  • Hiring bounty hunters to locate individuals on bail who miss their court dates

Our Mission and Vision Statement

  • Our vision is to build a bail bonds service that will become the number one choice for individuals and corporate clients in the whole of Springfield – Illinois.
  • Our mission is to provide professional, reliable, trusted and result oriented bail bonds service that can assist individuals and organizations.

Our Business Structure

If we decide to settle for two or three staff members, it won’t be out of place, but as part of our plan to build a standard bail bonds service in Springfield – Illinois, we have perfected plans to get it right from the beginning which is why we are going the extra mile to ensure that we have competent, honest and hardworking employees to occupy all the available positions in our firm.

The picture of the kind of bail bonds services business we intend building and the business goals we want to achieve is what informed the amount we are ready to pay for the best hands available in and around Springfield – Illinois. Below is the business structure that we will build Mario Berkley® Bail Bonds Services, LLC;

  • Chief Executive Officer
  • Bail Bonds Consultants
  • Admin and HR Manager
  • Marketing and Sales Executive
  • Accountant
  • Customer Care Executive/Front Desk Officer

Job Roles and Responsibilities

Chief Executive Office:

  • Increases management’s effectiveness by recruiting, selecting, orienting, training, coaching, counseling, and disciplining managers; communicating values, strategies, and objectives; assigning accountabilities; planning, monitoring, and appraising job results
  • Creates, communicates, and implements the organization’s vision, mission, and overall direction – i.e. leading the development and implementation of the overall organization’s strategy.
  • Responsible for fixing prices and signing business deals
  • Responsible for providing direction for the business
  • Responsible for signing checks and documents on behalf of the company
  • Evaluates the success of the organization

Bail Bonds Consultants

  • Responsible for selling secured bail bonds, selling unsecured bail bonds, providing financing for bail bond premium fees, personal recognizance, deposit bond, surety bond, collateral bond and other type of pretrial release
  • In charge of hiring bounty hunters to locate individuals on bail who miss their court dates
  • Handles any other related services as assigned by the firm

Admin and HR Manager

  • Responsible for overseeing the smooth running of HR and administrative tasks for the organization
  • Maintains office supplies by checking stocks; placing and expediting orders; evaluating new products.
  • Ensures operation of equipment by completing preventive maintenance requirements; calling for repairs.
  • Defines job positions for recruitment and managing interviewing process
  • Carries out induction for new team members
  • Responsible for training, evaluation and assessment of employees
  • Responsible for arranging travel, meetings and appointments
  • Oversees the smooth running of the daily office activities.

Marketing and Sales Executive

  • Identifies, prioritizes, and reaches out to new partners, and business opportunities et al
  • Identifies development opportunities; follows up on development leads and contacts
  • Writes winning proposal documents, negotiate fees and rates in line with company policy
  • Documents all customer contact and information
  • Represent the company in strategic meetings
  • Helps to increase sales and growth for the company

Accountant

  • Responsible for preparing financial reports, budgets, and financial statements for the organization
  • creates reports from the information concerning the financial transactions recorded by the bookkeeper
  • Prepares the income statement and balance sheet using the trial balance and ledgers prepared by the bookkeeper.
  • Provides managements with financial analyses, development budgets, and accounting reports
  • Responsible for financial forecasting and risks analysis.
  • Performs cash management, general ledger accounting, and financial reporting for one or more properties.
  • Responsible for developing and managing financial systems and policies
  • Responsible for administering payrolls
  • Ensuring compliance with taxation legislation
  • Handles all financial transactions for the company
  • Serves as internal auditor for the company

Client Service Executive/Front Desk Officer

  • Welcomes guests and clients by greeting them in person or on the telephone; answering or directing inquiries.
  • Ensures that all contacts with clients (e-mail, walk-In center, SMS or phone) provides the client with a personalized customer service experience of the highest level
  • Through interaction with clients on the phone, uses every opportunity to build client’s interest in the company’s products and services
  • Consistently stays abreast of any new information on the company’s products, promotional campaigns etc. to ensure accurate and helpful information is supplied to clients
  • Receives parcels / documents for the company
  • Distributes mails in the organization
  • Handles any other duties as assigned by the manager

SWOT Analysis

Because of our propensity for excellence, Mario Berkley® Bail Bonds Services, LLC engaged the services of a professional in the area of business consulting and structuring to assist the firm in building a well – structured bail bonds service that can favorably compete in the industry.

Here is a summary from the result of the SWOT analysis that was conducted on behalf of Mario Berkley® Bail Bonds Services, LLC;

  • Strength:

The track record of our senior partner and of course the skills that our carefully selected team will be bringing to the table will definitely count as strength for us. We are also confident of the fact that the location of our office is a plus for our business; we are located in one of the busiest office complex in Springfield with easy access to courts.

  • Weakness:

As a new bail bonds service, it might take some time for our organization to break into the market and gain acceptance especially from corporate clients in the already saturated industry; that is perhaps our major weakness. So also we may not have the required cash to give our business the kind of publicity we would have loved to.

  • Opportunities:

The fact that loads of individuals finds it difficult to secure bail bonds makes the bail bond industry a lucrative industry. As a standard and well – positioned bail bonds firm, we are ready to take advantage of any opportunity that comes our way.

  • Threat:

Some of the threats that we are likely going to face as a bail bonds service firm operating in the United States are unfavorable government policies. There is hardly anything we can do as regards these threats other than to be optimistic that things will continue to work for our good.

MARKET ANALYSIS

  • Market Trends

It is becoming an established trend that slight growth in the poverty rate will not be strong enough to offset declines in crime and disposable income, the number of people arrested drives industry revenue and a decrease in the young adult population drives decline in the crime rate.

It is a fact that factors such as crime and poverty rate will impact performance in the Bail Bond Services industry. Over the past five years to 2018, revenue growth has been hampered by a declining crime rate, a decreasing poverty rate and an increase in per capita disposable income.

Therefore, the primary driver in offsetting these effects during the five-year period has been an increase in the number of temporary employees. Lastly, operators in this industry ensure that they get all the testimonials they can and publish them on their website and promotional materials. This usually goes a long way to give them credibility and also to attract more clients.

Our Target Market

The demographic and psychographic composition of those who need the services of bail bonds providers cuts across individuals and even corporate clients. Mario Berkley® Bail Bonds Services, LLC will initially serve small to medium sized businesses, but that does not in any way stop us from growing to be able to compete with the leading bail bonds service firms in the United States.

Below is a list of the businesses and organizations that we have specifically designed our services for;

  • Households and individual clients
  • NGOs
  • Corporate Organizations
  • Religious Organizations (Pilgrimage journeys et al)
  • Political Parties/Politicians
  • Hotels and Restaurants
  • Schools (High Schools, Colleges and Universities)
  • Sport Organizations
  • Entrepreneurs and Startups

Our competitive advantage

The level of competition in the bail bonds industry depends largely on the location of the business and of course the niche of your bail bonds service. If you can successfully create a unique brand identity for your bail bonds firm or carve out a unique market, you are likely going to experience less competition.

Mario Berkley® Bail Bonds Services, LLC might be a new entrant into the industry in the United States of America, but our management staff are considered gurus. They are licensed and highly qualified bail bonds experts in the United States. These are part of what will count as a competitive advantage for us.

Lastly, our employees will be well taken care of, and their welfare package will be among the best within our category in the industry meaning that they will be more than willing to build the business with us and help deliver our set goals and achieve all our aims and objectives.

SALES AND MARKETING STRATEGY

We are mindful of the fact that there are stiff competitions amongst bail bonds service providers in the United States of America; hence we have been able to hire some of the best business developers to handle our sales and marketing.

Our sales and marketing team will be recruited based on their vast experience in the industry and they will be trained on a regular basis so as to be well equipped to meet their targets and the overall goal of the organization. We will also ensure that our excellent job deliveries speak for us in the market place; we want to build a standard bail bonds service business that will leverage on word of mouth advertisement from satisfied clients.

Our goal is to grow our bail bonds firm to become one of the top 15 bail bond services in the United States of America which is why we have mapped out strategies that will help us take advantage of the available market and grow to become a major force to reckon with not only in the Springfield – Illinois, but also in other cities in the United States of America.

Mario Berkley® Bail Bonds Services, LLC is set to make use of the following marketing and sales strategies to attract clients;

  • Introduce our business by sending introductory letters alongside our brochure to courthouses and key stake holders in Springfield
  • Advertise our business in relevant legal and business related magazines and newspapers
  • List our business on yellow pages’ ads (local directories)
  • Attend relevant international and local legal and business expos, seminars, and business fairs et al
  • Create different packages for different category of clients in order to work with their budgets and still deliver quality services to them
  • Leverage on the internet to promote our business
  • Engage direct marketing approach
  • Encourage word of mouth marketing from loyal and satisfied clients
  • Join local chambers of commerce and industries with the aim of marketing our services.

Sources of Income

Mario Berkley® Bail Bonds Services, LLC is established with the aim of maximizing profits in the industry and we are going to ensure that we do all it takes to attract clients on a regular basis and to get referrals from our clients. Mario Berkley® Bail Bonds Services, LLC will generate income by offering the following services;

  • Selling secured bail bonds
  • Selling unsecured bail bonds
  • Providing financing for bail bond premium fees
  • Personal recognizance, deposit bond, surety bond, collateral bond and other type of pretrial release
  • Hiring bounty hunters to locate individuals on bail who miss their court dates

Sales Forecast

We are well positioned to take on the available market in Springfield – Illinois and other key cities in the United States of America and we are quite optimistic that we will meet our set target of generating enough income/profits from the first six months of operation and grow the business and our clientele base beyond Springfield to other cities in Illinois.

We have been able to examine the bail bonds services market, we have analyzed our chances in the industry and we have been able to come up with the following sales forecast. Below are the sales projections for Mario Berkley® Bail Bonds Services, LLC, it is based on the location of our business and the wide range of bail bonds services that we will be offering;

  • First Fiscal Year: $180,000
  • Second Fiscal Year: $360,000
  • Third Fiscal Year: $650,000

N.B: This projection was done based on what is obtainable in the industry and with the assumption that there won’t be any major economic meltdown within the period stated above. Please note that the above projection might be lower and at the same time it might be higher.

At Mario Berkley® Bail Bonds Services, LLC we will keep our fees below the average market rate by keeping our overhead low and by collecting payment in advance. In addition, we will also offer special discounted rates to startups, nonprofits, cooperatives, and small social enterprises. 

  • Payment Options

The payment policy adopted by Mario Berkley® Bail Bonds Services, LLC is all inclusive because we are quite aware that different customers prefer different payment options as it suits them but at the same time, we will ensure that we abide by the financial rules and regulation of the United States of America.

Here are the payment options that Mario Berkley® Bail Bonds Services, LLC will make available to her clients;

  • Payment via bank transfer
  • Payment via online bank transfer
  • Payment via check
  • Payment via bank draft

In view of the above, we have chosen banking platforms that will enable our client make payment for services offered without any stress on their part.

Publicity and Advertising Strategy

We have been able to work with our brand and publicity consultants to help us map out publicity and advertising strategies that will help us walk our way into the heart of our target market. We are set to take the bail bonds services industry by storm which is why we have made provisions for effective publicity and advertisement of our firm.

Below are the platforms we intend to leverage on to promote and advertise Mario Berkley® Bail Bonds Services, LLC;

  • Place adverts on both print (community based newspapers and magazines) and electronic media platforms
  • Leverage on the internet and social media platforms like; Instagram, Facebook, twitter, YouTube, Google + et al to promote our brand
  • Distribute our fliers and handbills in target areas
  • Ensure that all our workers wear our branded shirts and all our vehicles are branded with our company’s logo et al.

Financial Projections and Costing

On the average, starting a bail bonds services firm can be cost effective because on the average, you are not expected to acquire expensive machines and equipment. Basically what you should be concerned about is the amount needed to secure a standard office facility in a good and busy business district, the amount needed to equip the office, pay bills, promote the business and obtain the appropriate business license and certifications.

These are the area we are looking towards spending our startup capital on;

  • The total fee for incorporating the Business in the United States of America – $750.
  • Legal expenses for obtaining licenses and permits as well as the accounting services (software, P.O.S machines and other software) – $3,300.
  • The total cost for payment of insurance policy covers (general liability, workers’ compensation and property casualty) coverage at a total premium – $9,400.
  • The amount needed to acquire a suitable Office facility in a business district 6 months (Re – Construction of the facility inclusive) – $40,000.
  • Marketing promotion expenses for the grand opening of Mario Berkley® Bail Bonds Services, LLC in the amount of $3,500 and as well as flyer printing (2,000 flyers at $0.04 per copy) for the total amount of $3,580.
  • The total cost for hiring Business Consultant – $2,500
  • The cost for equipping the office (computers, printers, fax machines, furniture, telephones, filing cabins, safety gadgets and electronics et al) – $2,000
  • The cost of launching our official Website – $600
  • Budget for paying at least two employees for 3 months and utility bills – $30,000
  • Additional expenditure (Business cards, Signage, Adverts and Promotions et al) – $2,500
  • Miscellaneous – $1,000

Going by the report from the research and feasibility studies, we will need about One Hundred and Fifty Thousand US Dollars ($150,000) to set up a small scale but standard bail bonds services firm in the United States of America.

Generating Startup Capital for Mario Berkley® Bail Bonds Services, LLC

Mario Berkley® Bail Bonds Services, LLC will be owned and managed by Mario Berkley and his immediate family members. They decided to restrict the sourcing of the startup capital for the business to just three major sources.

  • Generate part of the startup capital from personal savings
  • Source for soft loans from family members and friends
  • Apply for loan from the bank

N.B: We have been able to generate about $50,000 (Personal savings $40,000 and soft loan from family members $10,000) and we are at the final stages of obtaining a loan facility of $100,000 from our bank. All the papers and documents have been duly signed and submitted, the loan has been approved and any moment from now our account will be credited.

Sustainability and Expansion Strategy

The future of a business lies in the number of loyal customers that they have, the capacity and competence of their employees, their investment strategy and the business structure. If all of these factors are missing from a business, then it won’t be too long before the business closes shop.

One of our major goals of starting Mario Berkley® Bail Bonds Services, LLC is to build a business that will survive off its own cash flow without the need for injecting finance from external sources once the business is officially running.

We know that one of the ways of gaining approval and winning customers over is to offer our services a little bit cheaper than what is obtainable in the market and we are prepared to survive on lower profit margin for a while. Mario Berkley® Bail Bonds Services, LLC will make sure that the right foundation, structures and processes are put in place to ensure that our staff welfare are well taken of.

Our company’s corporate culture is designed to drive our business to greater heights and training and retraining of our workforce is at the top burner of our business strategy. As a matter of fact, profit-sharing arrangement will be made available to all our management staff and it will be based on their performance for a period of three years or more as determined by the board of the organization.

We know that if that is put in place, we will be able to successfully hire and retain the best hands we can get in the industry; they will be more committed to help us build the business of our dreams.

Check List/Milestone

  • Business Name Availability Check: Completed
  • Business Incorporation: Completed
  • Opening of Corporate Bank Accounts: Completed
  • Opening Online Payment Platforms: Completed
  • Application and Obtaining Tax Payer’s ID: In Progress
  • Application for business license and permit: Completed
  • Purchase of Insurance for the Business: Completed
  • Conducting Feasibility Studies: Completed
  • Leasing a standard and well positioned office facility in the heart of Springfield – Illinois: Completed
  • Generating part of the startup capital from the founder: Completed
  • Applications for Loan from our Bankers: In Progress
  • Writing of Business Plan: Completed
  • Drafting of Employee’s Handbook: Completed
  • Drafting of Contract Documents: In Progress
  • Design of The Company’s Logo: Completed
  • Printing of Promotional Materials: Completed
  • Recruitment of employees: In Progress
  • Purchase of the needed software applications, furniture, office equipment, electronic appliances and facility facelift: In progress
  • Creating Official Website for the Company: In Progress
  • Creating Awareness for the business (Business PR): In Progress
  • Health and Safety and Fire Safety Arrangement: In Progress
  • Establishing business relationship with vendors and key players in the industry: In Progress