For the first in our Business in Focus series, we talk to Frank Hernandez, founder of Meadow Broking Limited. Find out what he had to say about the challenges and rewards of starting his own insurance broker business.
After spending the early part of his career working for small independent insurance brokers, Frank wasn't keen on getting involved in “big company politics”. So when his employer was acquired by a large national business he saw it as the perfect opportunity to start up on his own.
Meadow Broking was born in 2020 and he hasn’t looked back since. The company deals with a wide range of UK businesses from startups to multi-million-pound corporate groups, but its typical customer is SMEs.
“It’s very much a hands-on service – we like to talk and ask questions,” Frank said.
“Businesses can be unsure of what insurance covers they should have. They may have complex insurance requirements or simply do not understand the insurance requirements in a contract they are entering into.”
This often involves helping businesses that have been told that cover isn’t available. One example is a client who came to him looking to arrange an “impossible” insurance policy so they could take part in a £60m project.
“They needed insurance cover specified in a contract and the client approached me as a last resort as a number of other brokers had tried to quote and told them it was impossible,” Frank explained.
“It related to a £60m development of a new solar farm in Zimbabwe, so it wasn’t the norm. But with my contacts in the industry, I was able to secure a suitable policy that met the contract requirements. It was a great day when I was able to tell the client we had sourced the cover they needed.”
He does this by following some business advice he was given to focus on your customer: who they are, what they need and what benefit your business is to them.
“What you did yesterday is almost irrelevant to clients,” he said. “They are more interested in what you can do for them tomorrow!”
“Initially I put a three-year plan in place. It was a simple Excel spreadsheet listing every single item of expense, marked with how essential the spend was and highlighting those that are not necessary,” said Frank.
“This allowed me to assess the minimum amount of income I would need to live on, including bills, mortgage etc. By the end of the three years, I had enough savings to enable me to start the business, with enough funds to last me at least 18 months.”
The company’s business plan now takes on two forms:
The business plan is an ongoing document, updated at least monthly with actual figures for the previous month and future months or projections updated.
This fluid approach to planning allows Frank to spot and amend issues as they arise. For example, in the early days it soon became apparent that vital things like corporation tax and National Insurance contributions were missing.
When it comes to tax and accounts, the company uses an external accountant. Frank has also found a free 24/7 helpline invaluable when it comes to legal advice. This is provided by his own business insurance policy – proving that a good insurance policy really can go the extra mile.
“The helpline has answered nine out of 10 legal queries I may have. For anything more complex or detailed, I have built a network of contacts within local law firms that I can call upon,” he said.
“As a new business, we needed to get known and build trust. Face-to-face networking opportunities were non-existent due to the pandemic and lockdown,” he explained.
“I went in on UKBF 100%, making sure I contributed wherever I thought I could provide advice and support for other members.”
Over a year on, it has proved a great fit for the business. Frank has assisted a number of UKBF members in understanding and dealing with Covid-related insurance claims.
Logging on to UKBF is an important part of the working day, usually first and last thing in the day, to see what’s been posted and where to add any constructive advice to other members.
“Primarily I see it as a forum where members can share their experiences, both good and bad, with other business owners. For business owners to get the best possible advice from others who have likely been in the same situation as them.”
Find out more about Meadow Broking or follow @Frank the Insurance guy on the UKBF forum.
After spending the early part of his career working for small independent insurance brokers, Frank wasn't keen on getting involved in “big company politics”. So when his employer was acquired by a large national business he saw it as the perfect opportunity to start up on his own.
Meadow Broking was born in 2020 and he hasn’t looked back since. The company deals with a wide range of UK businesses from startups to multi-million-pound corporate groups, but its typical customer is SMEs.
“It’s very much a hands-on service – we like to talk and ask questions,” Frank said.
“Businesses can be unsure of what insurance covers they should have. They may have complex insurance requirements or simply do not understand the insurance requirements in a contract they are entering into.”
Helping clients achieve the "impossible"
Since starting the business, Frank has helped countless businesses with their insurance needs and particularly enjoys the challenge of tackling more unusual propositions.This often involves helping businesses that have been told that cover isn’t available. One example is a client who came to him looking to arrange an “impossible” insurance policy so they could take part in a £60m project.
“They needed insurance cover specified in a contract and the client approached me as a last resort as a number of other brokers had tried to quote and told them it was impossible,” Frank explained.
“It related to a £60m development of a new solar farm in Zimbabwe, so it wasn’t the norm. But with my contacts in the industry, I was able to secure a suitable policy that met the contract requirements. It was a great day when I was able to tell the client we had sourced the cover they needed.”
Overcoming business challenges
The biggest day-to-day challenge the business faces is selling something that people can’t see, Frank said. He finds that many small businesses see insurance as a low priority, so he spends time helping them understand what they are buying and the benefits it will bring.He does this by following some business advice he was given to focus on your customer: who they are, what they need and what benefit your business is to them.
“What you did yesterday is almost irrelevant to clients,” he said. “They are more interested in what you can do for them tomorrow!”
Establishing a working business plan
An ever-evolving business plan is an integral part of Frank’s strategic thinking as he develops the business.“Initially I put a three-year plan in place. It was a simple Excel spreadsheet listing every single item of expense, marked with how essential the spend was and highlighting those that are not necessary,” said Frank.
“This allowed me to assess the minimum amount of income I would need to live on, including bills, mortgage etc. By the end of the three years, I had enough savings to enable me to start the business, with enough funds to last me at least 18 months.”
The company’s business plan now takes on two forms:
1. A document setting out business goals and aims
This includes an outline of how to achieve the aims, a SWOT analysis (which details strengths, weaknesses, opportunities and threats) and a marketing and sales section setting out how they plan to win business.2. A detailed budget
This is an Excel document with all business income and expenditure listed line by line. It covers month by month for 36 months.The business plan is an ongoing document, updated at least monthly with actual figures for the previous month and future months or projections updated.
This fluid approach to planning allows Frank to spot and amend issues as they arise. For example, in the early days it soon became apparent that vital things like corporation tax and National Insurance contributions were missing.
When it comes to tax and accounts, the company uses an external accountant. Frank has also found a free 24/7 helpline invaluable when it comes to legal advice. This is provided by his own business insurance policy – proving that a good insurance policy really can go the extra mile.
“The helpline has answered nine out of 10 legal queries I may have. For anything more complex or detailed, I have built a network of contacts within local law firms that I can call upon,” he said.
The value of being a trusted UKBF member
Frank (or @Frank the Insurance guy as he’s known on the forum) is a well-established member of the UKBF community – something that he says was always part of his business plan.“As a new business, we needed to get known and build trust. Face-to-face networking opportunities were non-existent due to the pandemic and lockdown,” he explained.
“I went in on UKBF 100%, making sure I contributed wherever I thought I could provide advice and support for other members.”
Over a year on, it has proved a great fit for the business. Frank has assisted a number of UKBF members in understanding and dealing with Covid-related insurance claims.
Logging on to UKBF is an important part of the working day, usually first and last thing in the day, to see what’s been posted and where to add any constructive advice to other members.
“Primarily I see it as a forum where members can share their experiences, both good and bad, with other business owners. For business owners to get the best possible advice from others who have likely been in the same situation as them.”
Find out more about Meadow Broking or follow @Frank the Insurance guy on the UKBF forum.
