investment bank business plan

How To Write a Successful Investment Bank Business Plan (+ Template)

Creating a business plan is essential for any business, but it can be especially helpful for investment bank s that want to improve their strategy or raise funding.

A well-crafted business plan not only outlines the vision for your company but also documents a step-by-step roadmap of how you will accomplish it. To create an effective business plan, you must first understand the components essential to its success.

This article provides an overview of the key elements that every investment bank business owner should include in their business plan.

Download the Ultimate Business Plan Template

What is an Investment Bank Business Plan?

An investment bank business plan is a formal written document describing your company’s business strategy and feasibility. It documents the reasons you will be successful, your areas of competitive advantage, and it includes information about your team members. Your business plan is a key document that will convince investors and lenders (if needed) that you are positioned to become a successful venture.

Why Write an Investment Bank Business Plan?

An investment bank business plan is required for banks and investors. The document is a clear and concise guide of your business idea and the steps you will take to make it profitable.

Entrepreneurs can also use this as a roadmap when starting their new company or venture, especially if they are inexperienced in starting a business.

Writing an Effective Investment Bank Business Plan

The following are the key components of a successful investment bank business plan:

Executive Summary

The executive summary of an investment bank business plan is a one to two page overview of your entire business plan. It should summarize the main points, which will be presented in full in the rest of your business plan.

• Start with a one-line description of your investment bank company
• Provide a summary of the key points in each section of your business plan, which includes information about your company’s management team, industry analysis, competitive analysis, and financial forecast, among others.

Company Description

This section should include a brief history of your company. Include a short description of how your company started and provide a timeline of milestones your company has achieved.

You may not have a long company history if you are just starting your investment bank business. Instead, you can include information about your professional experience in this industry and how and why you conceived your new venture. If you have worked for a similar company or been involved in an entrepreneurial venture before starting your investment bank firm, mention this.

You will also include information about your chosen investment bank business model and how, if applicable, it differs from other companies in your industry.

Industry Analysis

The industry or market analysis is a crucial component of an investment bank business plan. Conduct thorough market research to determine industry trends and document the size of your market. 

Questions to answer include:

• What part of the investment bank industry are you targeting?
• How big is the market?
• What trends are happening in the industry right now (and if applicable, how do these trends support your company’s success)?

You should also include sources for your information, such as published research reports and expert opinions.

Customer Analysis

This section should include a list of your target audience(s) with demographic and psychographic profiles (e.g., age, gender, income level, profession, job titles, interests). You will need to provide a profile of each customer segment separately, including their needs and wants.

For example, an investment bank’s customers may include small businesses, middle market companies, and large corporations.

You can include information about how your customers decide to buy from you as well as what keeps them buying from you.

Develop a strategy for targeting those customers who are most likely to buy from you, as well as those that might be influenced to buy your products or investment bank services with the right marketing.

Competitive Analysis

The competitive analysis helps you determine how your product or service will differ from competitors, and what your unique selling proposition (USP) might be that will set you apart in this industry.

For each competitor, list their strengths and weaknesses. Next, determine your areas of competitive advantage; that is, in what ways are you different from and ideally better than your competitors.

Below are sample competitive advantages your investment bank business may have:

• In-depth industry knowledge
• Strong relationships with key players
• Focus on long-term investments
• Innovative products and services
• Personalized customer service

Marketing Plan

This part of the business plan is where you determine and document your marketing plan. . Your plan should be laid out, including the following 4 Ps.

• Product/Service : Detail your product/service offerings here. Document their features and benefits.
• Price : Document your pricing strategy here. In addition to stating the prices for your products/services, mention how your pricing compares to your competition.
• Place : Where will your customers find you? What channels of distribution (e.g., partnerships) will you use to reach them if applicable?
• Promotion : How will you reach your target customers? For example, you may use social media, write blog posts, create an email marketing campaign, use pay-per-click advertising, or launch a direct mail campaign. Or you may promote your investment bank business via a PR or influencer marketing campaign.

Operations Plan

This part of your investment bank business plan should include the following information:

• How will you deliver your product/service to customers? For example, will you do it in person or over the phone?
• What infrastructure, equipment, and resources are needed to operate successfully? How can you meet those requirements within budget constraints?

The operations plan is where you also need to include your company’s business policies. You will want to establish policies related to everything from customer service to pricing to the overall brand image you are trying to present.

Finally, and most importantly, in your Operations Plan, you will lay out the milestones your company hopes to achieve within the next five years. Create a chart that shows the key milestone(s) you hope to achieve each quarter for the next four quarters and then each year for the following four years. Examples of milestones for an investment bank business include reaching $X in sales. Other examples include expanding to new markets, launching a new product or service line, and hiring key personnel.

Management Team

List your team members here, including their names and titles, as well as their expertise and experience relevant to your specific investment bank industry. Include brief biography sketches for each team member.

Particularly if you are seeking funding, the goal of this section is to convince investors and lenders that your team has the expertise and experience to execute on your plan. If you are missing key team members, document the roles and responsibilities you plan to hire for in the future.

Financial Plan

Here you will include a summary of your complete and detailed financial plan (your full financial projections go in the Appendix). 

This includes the following three financial statements:

Income Statement

Your income statement should include:

• Revenue : how much revenue you generate.
• Cost of Goods Sold : These are your direct costs associated with generating revenue. This includes labor costs, as well as the cost of any equipment and supplies used to deliver the product/service offering.
• Net Income (or loss) : Once expenses and revenue are totaled and deducted from each other, this is the net income or loss.

Sample Income Statement for a Startup Investment Bank Firm

Balance Sheet

Include a balance sheet that shows your assets, liabilities, and equity. Your balance sheet should include:

• Assets : All of the things you own (including cash).
• Liabilities : This is what you owe against your company’s assets, such as accounts payable or loans.
• Equity : The worth of your business after all liabilities and assets are totaled and deducted from each other.

Sample Balance Sheet for a Startup Investment Bank Firm

Cash Flow Statement

Include a cash flow statement showing how much cash comes in, how much cash goes out and a net cash flow for each year. The cash flow statement should include cash flow from:

• Investments

Below is a sample of a projected cash flow statement for a startup investment bank business.

Sample Cash Flow Statement for a Startup Investment Bank Firm

You will also want to include an appendix section which will include:

• Your complete financial projections
• A complete list of your company’s business policies and procedures related to the rest of the business plan (marketing, operations, etc.)
• Any other documentation which supports what you included in the body of your business plan.

Writing a good business plan gives you the advantage of being fully prepared to launch and grow your investment bank company. It not only outlines your business vision but also provides a step-by-step process of how you are going to accomplish it.

Now that you know how to write a business plan for your investment bank, you can get started on putting together your own.  

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How to Start Your Own Investment Bank: A Comprehensive Guide

To start your own investment bank, you need to follow these steps: (120 words) First, obtain the necessary licenses and certifications from regulatory authorities in your jurisdiction. This is crucial for legal compliance and gaining the trust of potential clients.

Next, develop a comprehensive business plan that outlines your target market, services offered, and growth strategy. Secure adequate capital to meet regulatory requirements and fund your operations. Establish strategic partnerships with key stakeholders such as institutional investors, government entities, and other financial institutions.

Finally, invest in robust technology systems and skilled professionals to deliver efficient and trustworthy services to your clients. By following these steps, you can successfully start your own investment bank and position yourself in the financial market.

Understanding The Opportunities And Challenges

Starting your own investment bank can be a lucrative venture, but it also comes with its fair share of challenges. Understanding the opportunities and challenges is crucial to navigate this complex industry.

Exploring the potential benefits and risks is the first step. Investment banking services offer a wide range of opportunities for revenue generation, such as mergers and acquisitions, underwriting securities, and providing financial advisory services. However, it is important to carefully evaluate the market demand for these services to ensure sustainability.

Assessing regulatory requirements and compliance is another critical aspect. Investment banks operate in a heavily regulated environment. Understanding and meeting the necessary regulatory standards is paramount to avoid legal and financial penalties.

By thoroughly understanding the opportunities and challenges, evaluating market demand, and complying with regulatory requirements, aspiring investment bankers can take the necessary steps to start their own successful investment bank.

Defining Your Investment Banking Business Model

Defining your investment banking business model is crucial when starting your own investment bank. This involves identifying your target market and niche. Conduct market research to determine the most profitable areas to focus on. Consider factors such as industry trends, competition, and potential client needs. Once you have identified your target market, choose the appropriate legal structure for your investment bank. Consult with legal professionals to understand the various options available and select the one that best suits your needs. Establishing strategic partnerships and alliances is also important. Look for opportunities to collaborate with other financial institutions, technology providers, or industry associations. This can help you leverage resources, expand your network, and gain credibility in the market. By carefully defining your investment banking business model, you can set yourself up for success in the highly competitive financial industry.

Building A Strong Team

In order to build a strong team for your investment bank, it is important to hire experienced professionals in the field of investment. Look for candidates who have a proven track record and extensive knowledge in the industry. Additionally, assembling a competent support staff is crucial for the smooth operation of your bank. Your support staff should be reliable and efficient in handling administrative tasks and providing excellent customer service.

Furthermore, developing a robust training and development program is essential for the growth and success of your team. Invest in continuous learning opportunities for your employees, including workshops, seminars, and online courses. This will help them stay updated with the latest trends and developments in the investment banking industry, and enhance their skills and expertise.

A well-structured training and development program not only improves the knowledge and capabilities of your team members, but also boosts their morale and job satisfaction. It demonstrates your commitment to their professional growth and helps in retaining top talent.

Obtaining The Necessary Licenses And Registrations

Starting your own investment bank can be a complex process that requires obtaining the necessary licenses and registrations from regulatory authorities. Researching the regulatory landscape is the first step in this process. It is important to thoroughly understand the rules and regulations that govern the establishment and operation of investment banks in your jurisdiction.

Once you have researched the regulatory landscape, you can begin the process of applying for relevant licenses and registrations. This typically involves submitting detailed applications, providing supporting documentation, and paying the required fees. It is important to carefully follow the application process and ensure that all the necessary information is provided.

After obtaining the licenses and registrations, it is crucial to comply with ongoing reporting requirements. Investment banks are typically required to submit regular reports to regulatory authorities, detailing their financial activities and ensuring compliance with applicable laws and regulations. Keeping track of these reporting requirements and fulfilling them in a timely manner is essential to maintain the necessary licenses and registrations for your investment bank.

Establishing Compliance And Risk Management Systems

To establish a successful investment bank, it is crucial to have effective compliance and risk management systems in place. Designing a comprehensive compliance program is the first step towards ensuring regulatory adherence. This program should include establishing relevant policies and procedures, conducting regular training sessions for employees, and implementing a robust reporting mechanism. Compliance officers need to stay updated with the latest regulatory changes to ensure constant compliance.

Implementing robust risk management controls is equally important. This involves identifying potential risks, assessing their impact, and developing mitigation strategies. Risk management controls should cover various areas like credit, market, operational, and liquidity risks. Additionally, it is essential to conduct regular internal audits and reviews to evaluate the efficiency of these controls and make any necessary adjustments. This helps in identifying any potential weaknesses and taking corrective actions.

Leveraging Technology And It Infrastructure

To start your own investment bank, it is crucial to leverage technology and IT infrastructure effectively. Selecting the right technology platforms and systems is key to ensuring seamless operations. It is essential to choose software and hardware solutions that cater to the specific needs of your investment bank while keeping scalability in mind.

In addition to technology platforms, establishing secure data storage and backup protocols is imperative. Protecting sensitive client information and ensuring data integrity are essential for building trust and maintaining regulatory compliance. Implementing robust backup systems and disaster recovery plans will help safeguard your data.

Efficient network and communication solutions are also vital for operating a successful investment bank. A reliable and high-speed network is necessary for seamless collaboration and quick access to critical information. Implementing secure communication solutions, such as encrypted emails and virtual private networks, will ensure confidentiality when communicating with clients and partners.

Setting Up Operational Processes And Procedures

Setting up operational processes and procedures is crucial when starting your own investment bank. Developing effective workflows and procedures will ensure that your bank operates smoothly and efficiently.

One of the key aspects of setting up operational processes is streamlining back-office functions. This includes tasks such as account opening, settlement, and reconciliation. By creating standardized processes and defining roles and responsibilities, you can minimize errors and reduce operational risks.

Another important step is implementing performance measurement and reporting systems. These systems allow you to track and measure the performance of different departments and individuals within your bank. They provide valuable insights that can help you identify areas for improvement and make data-driven decisions.

Building Trust And Credibility

Building Trust and Credibility is crucial when starting your own investment bank.

To establish a reputable brand identity, focus on consistent branding and a clear value proposition . Build a strong online presence through an appealing website, engaging social media platforms, and targeted digital marketing strategies. Highlight your expertise and industry knowledge to position yourself as a trustworthy authority.

Engaging in thought leadership activities helps build credibility. Write insightful blog posts , contribute to industry publications, and participate in relevant conferences and webinars. This will showcase your expertise and attract potential clients.

Fostering strong relationships with industry stakeholders is essential. Network with key players and maintain open lines of communication. Collaborate with industry associations and join relevant professional organizations.

By following these steps, you can build trust, establish a reputable brand identity, engage in thought leadership activities, and foster relationships with industry stakeholders to start your own investment bank successfully.

Attracting And Retaining Clients

When it comes to attracting and retaining clients for your investment bank, developing tailored investment solutions is key. Clients are looking for investment banks that can provide them with personalized services and solutions based on their unique financial goals and risk appetite. One way to do this is by leveraging marketing and advertising strategies to showcase the advantages of your investment bank and the value you can provide to clients.

Moreover, providing exceptional client service and support is crucial in building long-term relationships with clients. This includes being responsive to their needs, providing timely and accurate information, and offering ongoing support to address any concerns or questions they may have. By focusing on these aspects, your investment bank can stand out in a competitive market and attract and retain a loyal client base.

Creating A Robust Financial Plan

Creating a Robust Financial Plan

One of the key steps in starting your own investment bank is to develop a detailed and comprehensive financial plan . This involves conducting detailed financial projections and analyses to assess the potential viability of your venture. By carefully examining various financial indicators and market trends, you can gain a better understanding of the opportunities and challenges that lie ahead.

Identifying potential revenue streams is another crucial aspect of your financial plan. You need to determine the various ways in which your investment bank can generate income, such as through advisory fees, underwriting fees, and asset management fees. This will help you establish realistic short-term and long-term targets for revenue generation and ensure the sustainability of your business.

Managing Costs And Optimizing Efficiency

In order to start your own investment bank, it is crucial to effectively manage costs and optimize efficiency. This can be achieved through implementing cost control measures, streamlining operational processes, and embracing technological innovations and automation.

Implementing cost control measures is essential to ensure that expenses are kept in check and resources are utilized efficiently. This can include conducting regular audits to identify areas of overspending and implementing strategies to reduce costs.

Streamlining operational processes is another key aspect of managing costs and optimizing efficiency. By analyzing and re-evaluating existing processes, banks can identify bottlenecks and inefficiencies, and implement improvements to streamline workflows and enhance productivity.

Embracing technological innovations and automation is crucial in today’s digital age. Investing in advanced technologies can help automate repetitive tasks, improve accuracy, and reduce human error. This can lead to cost savings and increased efficiency.

In summary, starting your own investment bank requires a strategic approach towards managing costs and optimizing efficiency. By implementing cost control measures, streamlining operational processes, and embracing technological advancements, aspiring entrepreneurs can set a solid foundation for success.

Frequently Asked Questions For How To Start Your Own Investment Bank

Can anyone start their own investment bank.

Yes, anyone with the right qualifications, resources, and regulatory compliance can start their own investment bank. However, starting an investment bank requires extensive knowledge, experience, and capital, and it is recommended to have a team of experts and professionals to navigate the complex regulatory landscape.

What Is The Process Of Starting An Investment Bank?

Starting an investment bank involves several steps, including obtaining the necessary licenses and permits, establishing a business plan and financial structure, hiring qualified personnel, setting up operational infrastructure, and complying with regulatory requirements. It is crucial to have a thorough understanding of the market, industry, and compliance regulations before embarking on this endeavor.

What Are The Key Challenges In Starting An Investment Bank?

Starting an investment bank comes with its own set of challenges, including obtaining regulatory approvals, attracting top talent, building a reputable brand, securing adequate funding, and navigating the complex regulatory landscape. Additionally, staying competitive in a saturated market and adapting to changing market conditions pose ongoing challenges for investment banks.

Starting your own investment bank is a complex task that requires careful planning and extensive knowledge of the financial industry. By following the steps outlined in this blog post, such as obtaining the necessary licenses, building a qualified team, and developing a comprehensive business plan, you can lay a strong foundation for success.

Remember to conduct thorough market research and seek advice from industry experts to ensure that your investment bank is positioned for growth. Good luck on your entrepreneurial journey!

Monica M. Watkins stands as a prominent authority in the realm of investment, recognized for her expertise as a “how-to” invest expert. With a robust background in finance and a keen understanding of market dynamics, Monica M. Watkins has become a trusted source for practical insights on investment strategies. Her career is characterized by a commitment to demystifying the complexities of financial markets and offering actionable guidance to both novice and seasoned investors. Whether unraveling the intricacies of stock market trends, providing tips on portfolio diversification, or offering guidance on risk management, Monica M. Watkins’s expertise spans a wide spectrum of investment-related topics. As a “how-to” invest expert, she empowers individuals with the knowledge and tools needed to navigate the ever-changing landscape of investments, translating complex financial concepts into accessible and actionable advice. Monica M. Watkins continues to be a guiding force for those seeking to make informed and strategic investment decisions, contributing significantly to the broader discourse on wealth-building and financial success.

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Investment Bank Business Plan [Sample Template]

By: Author Tony Martins Ajaero

Home » Business ideas » Financial Service Industry » Bank

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

Okay, so we have considered all the requirements for starting an investment bank . We also took it further by analyzing and drafting a sample investment bank marketing plan template backed up by actionable guerrilla marketing ideas for investment banks. So let’s proceed to the business planning section.

If you have enough cash to invest and also friends and partners who can raise you cash plus people who are interested in investing their cash with the aim of getting returns without bothering themselves with running a business, then you should think towards starting an investment bank.

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Investment banking has to do with starting a financial institution that helps individuals, corporations, and even governments raise capital by acting as the client’s agent in the issuance of securities. This kind of venture needs the effort of more than one person and it is also a very lucrative business.

You will need a large financial base if you truly want to successfully run your investment bank and you will also need investment experts to be part of your team.

The truth is that there are loads of stuffs you need to learn if you intend making a success from this business. So, in order to get started, take out time to read up all you can on investment banks and investment vehicles and also you can under study a successful investment bank to know how they operate and make their money.

Business plan is yet another very important business document that you should not take for granted when launching your investment bank. Below is a sample investment bank business plan template that can help you to successfully write your own with little or no hassles.

A Sample Investment Bank Business Plan Template

1. industry overview.

Businesses that operate in the Investment Banking and Securities Dealing industry comprises of businesses that provide a wide range of securities services, which include investment banking and broker-dealer trading services.

They also offer banking and wealth management services and engage in proprietary trading (trading their own capital for a profit) in varying degrees. Investment banking services include securities underwriting and corporate financial services while trading services include market making and broker-dealer services.

In the face of fee growth from the Investment Banking and Securities Dealing industry’s traditional underwriting and advisory services, both cyclical and structural influences on trading activity have ultimately affected revenue generation for operators in the industry in recent years. The revenue generated by players in this industry is expected to decline.

Most of the troubles experienced in the industry in recent time emanates from fixed income, commodities and currencies (FICC) trading operations. Expensive capital requirements and the trend of transitioning derivative trading to central clearinghouses are anticipated to structurally diminish the industry’s fixed income, commodities and currencies (FICC) revenue.

The Investment Banking and Securities Dealing industry will continue to experience growth in all parts of the world especially in developed countries such as united states of America, Canada, United Kingdom , Germany, Australia, South Korea, Japan and China et al.

Statistics has it that in the United States of America alone, there are about 8,691 licensed and registered Investment Banking and Securities Dealing Companies scattered all across the length and breadth of the country and they are responsible for employing about 100,472 employees.

The industry rakes in a whooping sum of $105 billion annually with an annual growth rate projected at -13.0 percent within 2011 and 2016. The organizations that are leaders in the industry are; Bank of America, Citigroup Inc., JP Morgan Chase & Co, Morgan Stanley and The Goldman Sachs Group Inc.

A report recently published by IBISWorld shows that while the number of industry activities has not deviated dramatically over the five-year period, the share of revenue that each activity accounts for has undergone substantial volatility.

The report also started that products and services in the Investment Banking and Securities Dealing industry vary considerably on a company-by-company basis, largely depending on operator size. The report further stated that small- and medium-size investment banks target niche industries and small companies and rely more heavily on traditional investment banking activities such as underwriting and financial advisory. Alternatively, major industry players earn a substantial share of revenue from trading activities.

One factor that encourages entrepreneurs to start their own investment banking business could be that despite the fact the business in capital intensive and the risks are high, it is indeed a thriving and profitable business venture for high end entrepreneurs.

Starting an investment bank requires professionalism and good grasp of how investment works on a global platform. Besides, you would need to get the required certifications and license and also meet the standard capitalization for such business before you can be allowed to start an investment bank in the United States.

2. Executive Summary

Platform™ Investment Bank, Inc. is a registered, licensed and accredited investment bank that will be based in Westchester County – New York.

We are in business to engage in a wide range of securities services which include investment banking and broker-dealer trading services. Of course we will also offer banking and wealth management services and engage in proprietary trading.

Platform™ Investment Bank, Inc. is a client – focused and result driven investment bank that plays by the rules and also provides broad – based services. We will offer trusted and profitable services to all our clients at local, state, national, and international levels. We will ensure that we work hard to meet and surpass our clients’ expectations whenever we take control of any company.

At Platform™ Investment Bank, Inc., our client’s best interest would always come first, and everything will be guided by our values and professional ethics. We will ensure that we hire professionals who are experienced in the stock exchange and other investment portfolios with good track record of return on investments.

Platform™ Investment Bank, Inc. will at all times demonstrate her commitment to sustainability 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 investment and business management line in the whole of Westchester County, and also to be amongst the top 25 investment banks in the United States of America within the first 15 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 New York is the right place to launch our investment bank.

Platform™ Investment Bank, Inc. is founded by Shannon Stevens and other business partners. Shannon Stevens has a B.Sc. in Business Administration from the University of Nebraska-Lincoln and MBA in Economics from Columbia Business School.

Investing is a family trait Shannon inherited from his father, a stockbroker and U.S. congressman, in his hometown of Omaha, Nebraska. At the age of 11, Shannon made his first investment, and by the age of 13 he was selling homemade cookies and cupcakes and operating a paper delivery service. Shannon is a Certified Investment Banking IT Professional (CIBIT) and Certified Investment Banker –CIB.

3. Our Products and Services

Platform™ Investment Bank, Inc. is established with the aim of maximizing profits in the Investment Banking and Securities Dealing industry. We want to compete favorably with the leading wealth management firms in the United States which is why we have but in place a competent team that will ensure that we meet and even surpass our customers’ expectations.

We are in the Investment Banking and Securities Dealing industry to make profits and we will ensure that we do all that is permitted by the law in the United States of America to achieve our aims and ambitions of setting up the business Our services and products are listed below;

• Underwriting services (debt)
• Trading and related services
• Underwriting services (equity)
• Corporate finance services
• Other financial advisory and consultancy services

4. Our Mission and Vision Statement

• Our vision is to build an investment bank that will become one of the top choices for investors in the whole of Westchester County – New York.
• Our mission is to position the business to become one of the leading brands in the investment banking line of business in the whole of Westchester County, and also to be among the top 25 investment banks in the United States of America within the first 15 years of operation.

Our Business Structure

As part of our plans to build a standard investment bank in Westchester County – New York, we have perfected plans to get it right from the beginning which is why we are going the extra mile to ensure that we want qualified, competent, honest and hardworking employees to occupy all the available positions in our firm. Below is the business structure that we will build Platform™ Investment Bank, Inc.;

• Chief Executive Officer

Investment Banking Officer

Admin and HR Manager

Risk Manager

• Marketing and Sales Executive
• Chief Financial Officer (CFO) / Chief Accounting Officer (CAO).
• Customer Care Executive / Front Desk Officer

5. 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, appraising job results and developing incentives
• Responsible for fixing prices and signing business deals
• Responsible for providing direction for the business
• 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 signing checks and documents on behalf of the company
• Evaluates the success of the organization

Chief Financial Officer (CFO)/Chief Accounting Officer (CAO)

• Accountable for preparing financial reports, budgets, and financial statements for the organization
• 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; analyzes financial feasibility for the most complex proposed projects; conducts market research to forecast trends and business conditions.
• Responsible for financial forecasting and risks analysis.
• Performs cash management, general ledger accounting, and financial reporting for one or more properties.
• Accountable for developing and managing financial systems and policies
• Responsible for administering payrolls
• Ensures compliance with taxation legislation
• Handles all financial transactions for the company
• Serves as internal auditor for the company
• Carries out underwriting services (debt), trading and related services, underwriting services (equity), corporate finance services and other financial advisory and consultancy services
• Creates research and review platforms for new, existing and potential investment products
• Works closely with analysts and traders to ensure trading strategy is carried out correctly
• Constructs and review performance reports to show to investors
• Performs due diligence visits and assessing investment management firms and quantitatively analyzing investment pools
• Has extensive knowledge of industry policies and regulations set in place by the SEC
• Focusing on capital introductions and networking to sign up new investors
• Plans, designs and implements an overall risk management process for the organization;
• Risks assessment, which involves analyzing risks as well as identifying, describing and estimating the risks affecting the business;
• Risks evaluation, which involves comparing estimated risks with criteria established by the organization such as costs, legal requirements and environmental factors, and evaluating the organization’s previous handling of risks;
• Establishes and quantifies the organization’s ‘risk appetite’, i.e. the level of risk they are prepared to accept;
• Risks reporting in an appropriate way for different audiences, for example, to the board of directors so they understand the most significant risks, to business heads to ensure they are aware of risks relevant to their parts of the business and to individuals to understand their accountability for individual risks;
• Corporates governance involving external risk reporting to stakeholders;
• Conducts audits of policy and compliance to standards, including liaison with internal and external auditors;
• Responsible for overseeing the smooth running of HR and administrative tasks for the organization
• Designs job descriptions with KPI to drive performance management for clients
• Regularly hold meetings with key stakeholders to review the effectiveness of HR Policies, Procedures and Processes
• 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/Investors Relations Officer

• Identifies, prioritizes, and reaches out to new partners, and business opportunities
• Identifies development opportunities; follows up on development leads and contacts;
• Writes winning proposal documents, negotiate fees and rates in line with company policy
• Responsible for handling business research, marker surveys and feasibility studies
• Documents all customer contact and information
• Represents the company in strategic meetings
• Helps to increase sales and growth 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 services
• Manages administrative duties assigned by the manager in an effective and timely manner
• 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
• Distribute mails in the organization

6. SWOT Analysis

Platform™ Investment Bank, Inc. engaged the services of professionals in the area of business structuring to assist our organization in building a well – structured investment bank that can favorably compete in the highly competitive Investment Banking and Securities Dealing industry.

Here is a summary from the result of the SWOT analysis that was conducted on behalf of Platform™ Investment Bank, Inc.;

Top on the list when it comes to the strength of the team is our workforce. We have a team that can give our clients good returns on their investment, and also increase our annual returns; a team that are trained and equipped to pay attention to details and to deliver excellent jobs. We are well positioned and we know we will attract loads of accredited investors from the first day we open our doors for business.

As a new investment bank, it might take some time for our organization to break into the market and gain acceptance especially from big – time investors, 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 opportunities in the Investment Banking and Securities Dealing industry is massive considering the number of companies and individuals who would need to invest their money. As a standard and accredited investment bank, we are ready to take advantage of any opportunity that comes our way.

Investment banks and their operations involves large amount of cash and it is known to be a very high – risk venture hence, whoever chooses to manage it must not just have solid investment background, but must also know how to handle risks and discover potential thriving businesses and opportunities.

The truth is that if you are not grounded in risk management, you may likely mismanage peoples’ monies and investment. Just as in any other business and investment vehicles, economic downturn, unstable financial market and unfavorable government economic policies can hamper the growth and profitability of investment banks.

7. MARKET ANALYSIS

• Market Trends

A close watch of the Investment Banking and Securities Dealing industry shows that in the dawn of recessionary declines, the industry is expected to continue on a path to growth, but not without a few more ups and downs. As a result of this trend, the Investment Banking and Securities Dealing industry revenue is expected to grow over the five-year period at an annualized rate of 9.1 percent to $42.9 billion in 2016.

The revenue growth for the industry was restrained in the early part of the period as the industry was reluctant to bounce back from the financial crisis and subsequent recession of the prior period that caused stock markets and business activity to dramatically contract in the United States and of course in the global market.

On the average, it is trendy to find investment banks employ strategies that can help them reduce market risk specifically by shorting equities or through the use of derivatives.

8. Our Target Market

Our responsibility is not just to raise capital but also to look for companies where the capital can be invested (buying over a good percentage of their shares) and that can generate good returns over a period of time. The truth is that it takes a core professional to be able to identify a company that has the potential to grow and become profitable if funds are pumped into it.

As a standard, accredited and licensed investment bank, Platform™ Investment Bank, Inc. offers a wide range of investment portfolio management services hence we are well trained and equipped to manage and provide oversight functions for established companies.

Our target market cuts across businesses and investors that have the required capital to invest in companies and other investment portfolios. We are coming into the industry with a business concept that will enable us produce good returns on investment for ourselves and our clients. Below is a list of individuals and organizations that we have specifically designed and services for;

• Accredited Investors
• Investment Clubs
• Top corporate executives
• Corporate Organizations / Blue Chip Companies
• Celebrities
• Business man and women
• Small and medium scales businesses

Our competitive advantage

Despite the fact that investment banks give huge returns on investment, it is indeed a risky venture. For you to survive as an investment bank, you should be able to come up with workable investment and business management strategies; strategies that will help you attract the required capital and above all you should be a good risk manager and one that can spot a good business from afar.

We are quite aware that to be highly competitive in the Investment Banking and Securities Dealing industry means that we should be able to give good returns on investments to our clients, turn around the fortunes of a dying company , spot potential successful business ideas and invest in them, deliver consistent quality service, our clients should be satisfied with our investment strategies and we should be able to meet the expectations of clients.

Platform™ Investment Bank, Inc. might be a new entrant into the industry in the United States of America, but our management and staff are considered gurus. They are licensed and highly trained portfolio management 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.

9. SALES AND MARKETING STRATEGY

• Sources of Income

Platform™ Investment Bank, Inc. is established with the aim of maximizing profits in the Investment Banking and Securities Dealing industry and we are going to ensure that we do all it takes to attract clients on a regular basis. Platform™ Investment Bank, Inc. will generate income by offering the following investment related services;

10. Sales Forecast

One thing is certain, there would always be accredited investors who would need the services of tested and trusted investment banks.

We are well positioned to take on the available market in Westchester County 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 from the first six months of operation and grow the business and our clientele base beyond Westchester County.

We have been able to examine the Investment Banking and Securities Dealing industry, we have analyzed our chances in the industry and we have been able to come up with the following sales forecast.

Below is the sales projection for Platform™ Investment Bank, Inc., it is based on the location of our business and the wide range of investment management services that we will be offering;

• First Fiscal Year: $1 Million
• Second Fiscal Year: $ 2.5 Million
• Third Fiscal Year: $5 Million

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 and there won’t be any major competitor offering same services as we do within same location. Please note that the above projection might be lower and at the same time it might be higher.

• Marketing Strategy and Sales Strategy

We are mindful of the fact that there are stiff competitions amongst investment banks and other related financial investment vehicles 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 equipped to meet the overall goal of the organization. We will also ensure that our return on investment and excellent job deliveries speaks for us in the market place.

Our goal is to grow our investment bank to become one of the top 25 investment banks 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 Westchester County but also in other cities in the United States.

Platform™ Investment Bank, Inc. 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 corporate organizations, startups, accredited investors, entrepreneurs and key stake holders in Westchester County and other cities in the United States
• Advertise our business in relevant financial and business-related magazines, newspapers, TV and radio stations
• List our business on yellow pages’ ads (local directories)
• Attend relevant international and local finance and business expos, seminars, and business fairs
• Create different packages for different category of clients (startups and established corporate organizations) in order to work with their budgets and still deliver good returns on investment
• Leverage on the internet to promote our business
• Engage direct marketing approach
• Encourage word of mouth marketing from loyal and satisfied clients

11. Publicity and Advertising Strategy

The uniqueness of the Investment Banking and Securities Dealing industry is such that it is the results they produce that helps boost their brand awareness. Investment banks are strategic when it comes to inviting investors to invest in a project or when it comes to acquiring a struggling company.

It will be out of place to boost your investment bank brand if you have not proven your worth in the industry. If you have successfully proven that you have what it takes to operate a successful investment bank, then you next port of call is to strategically engage the media to help you promote your brand and create a positive corporate identity.

Below are the platforms we intend to leverage on to promote and advertise Platform™ Investment Bank, Inc.;

• Place adverts on both print (community based newspapers and magazines) and electronic media platforms
• Sponsor relevant community based events/programs
• Leverage on the internet and social media platforms to promote our brand
• Install our billboards in strategic locations all around Westchester County.
• Ensure that all our workers wear our branded shirts and all our vehicles are well branded with our company’s logo.

12. Our Pricing Strategy

Investment banks are known to generate income from returns on their investment in companies and other investment portfolios hence there are no pricing models for this type of business . But on the other hand, they tend to negotiate with their financial partners on percentage whenever they invest their money in an investment vehicle handled by a venture capitalist firm.

At Platform™ Investment Bank, Inc. we will ensure that we give good returns on investment (ROI) and always maximize profits.

• Payment Options

The payment policy adopted by Platform™ Investment Bank, Inc. 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 Platform™ Investment Bank, Inc. 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 investment without any stress on their part.

13. Startup Expenditure (Budget)

The cost of starting an investment bank is in the two – folds; the cost of setting up the office structure and the capital meant for investment. The amount required to invest in this line of business could range from 1 Million to even multiple Millions of Dollars. So, you must employ aggressive strategies to pool such cash together.

As regards the cost of setting up the office structure, your concern should be to secure a good office facility in a busy business district; it can be expensive though, but that is one of the factors that will help you position your firm to attract the kind of investors you would need. This is the financial projection and costing for Platform™ Investment Bank, Inc.;

• The total fee for incorporating the business in the United States of America – $750.
• The budget for basic insurance policy covers, permits and business license – $2,500
• The amount needed to acquire a suitable Office facility in a business district 6 month (Re – Construction of the facility inclusive) – $40,000.
• The cost for equipping the office (computers, software applications, printers, fax machines, furniture, telephones, filing cabins, safety gadgets and electronics et al) – $5,000
• The cost of the required software applications (CRM software, Accounting and Bookkeeping software and Payroll software et al) – $10,500
• The cost of Launching your official Website – $600
• Budget for paying at least three employees for 3 months plus utility bills – $10,000
• Additional expenditure (Business cards, Signage, Adverts and Promotions et al) – $2,500
• Investment fund – 1 Million Dollars
• Miscellaneous: $1,000

Going by the report from the market research and feasibility studies conducted, we will need $150,000 excluding $1M investment capital to successfully set up a medium scale but standard investment bank in the United States of America.

Generating Startup Capital for Platform™ Investment Bank, Inc.

Platform™ Investment Bank, Inc. will be owned and managed by Shannon Stevens and other partners. They are the financier of the firm, but may likely welcome other partners later which is why 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 other investors

N.B: We have been able to generate about $150,000 ( Personal savings $100,000 and soft loan from family members $50,000 ). Please note that we have perfected plans to generate $1 million dollars from accredited investors whose names can’t be mentioned for obvious reasons.

14. 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 Platform™ Investment Bank, Inc. is to build a business that will survive off its own cash flow without 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 give investors under our business good returns on their investment.

We 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
• Securing a standard office facility in Westchester County: Completed
• Conducting Feasibility Studies: 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 key players in the industry: In Progress

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Investment Company Business Plan

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Executive summary executive summary is a brief introduction to your business plan. it describes your business, the problem that it solves, your target market, and financial highlights.">.

This sample plan was created for a hypothetical investment company that buys other companies as investments.  In this sample, the hypothetical Venture Capital firm starts with $20 million as an initial investment fund.  In its early months of existence, it invests $5 million each in four companies.  It receives a management fee of two percent (2%) of the fund value, paid quarterly.  It pays salaries to its partners and other employees, and office expenses, from the management fee.

The investments show up in the Cash Flow table as the purchase of long-term assets, which also puts them into the balance sheet as long-term assets.  You can see them in this sample plan, in the first few months.

In the third year, one of the target companies fails, so $5 million is written off as failure.  You’ll see how that looks as a $5 million sale of long-term assets in the cash flow, and a balancing entry of $5 million in costs of sales in the profit and loss, making for a loss and write-off that year.  The result is a tax loss, and the balance of investments goes to $15 million.

In the fifth year, one of the target companies is transacted at $50 million.  You’ll see in the sample how that shows up as a $45 million equity appreciation in the sales forecast, plus a $5 million sale of long-term assets in the cash flow.  At that point there’s been a $45 million profit, and the balance of long-term assets goes down to $10 million.

This is a simplified example.  The business model holds long-term assets and waits for them to appreciate.  It doesn’t show appreciation of assets until they are finally sold, and it doesn’t show write-down of assets until they fail.  Sales and cost of sales are the appreciation and write-down of assets, plus the management fees.

The explanation above has been broken down and copied into key topics in the outline that are linked to corresponding tables.  These topics are:

• 2.2     Start-up Summary
• 5.5.1  Sales Forecast
• 6.4     Personnel
• 7.4     Projected Profit and Loss
• 7.5     Projected Cash Flow
• 7.6     Projected Balance Sheet

Company Summary company overview ) is an overview of the most important points about your company—your history, management team, location, mission statement and legal structure.">

Content has been omitted from this sample plan topic, and following sub-topics.  This sample plan has an abbreviated plan outline.  With the exception of the Executive Summary, only those topics linked to key tables have been used.

The focus of this sample plan is to show the financials for this type of company.  Brief descriptions can be found in the topics associated with key tables.

2.1 Start-up Summary

This hypothetical Venture Capital firm starts with $20 million as an initial investment fund.  The venture capital partners invest $100,000 as working capital needed to balance the cash flow from quarter to quarter. 

Market Analysis Summary how to do a market analysis for your business plan.">

Strategy and implementation summary, sales forecast forecast sales .">.

Management Summary management summary will include information about who's on your team and why they're the right people for the job, as well as your future hiring plans.">

7.1 personnel plan.

This hypothetical company pays salaries to its partners and other employees, and office expenses, from the management fee of two percent (2%).

Financial Plan investor-ready personnel plan .">

8.1 projected profit and loss.

Please note that in the third year one investment is written off as a failure, producing a $5 million cost which ends up showing a loss for the year of nearly $5 million.  The sale of equity at the end of the period enters the sales forecast and the profit and loss statement as a $45 million gain. 

8.2 Projected Cash Flow

The Cash Flow shows four $5 million investments made in the first few months of the plan. 

In the third year, one of the target companies fails, so $5 million is written off as failure.  You’ll see that shows as a $5 million sale of long-term assets in the cash flow, and a balancing entry of $5 million in costs of sales in the profit and loss, making for a loss and write-off that year.  The result is a tax loss, and the balance of investments goes to $15 Million.

In the fifth year, another investment is transacted at $50 million.  This shows up as a $5 million equity appreciation in the Sales Forecast, plus a $5 million sale of long-term assets in the Cash Flow.  At that point there’s been a $45 million profit and the balance of long-term assets goes down to $10 million. 

The partners invest an additional $100,000 in the fourth year as additional working capital to balance the cash flow of the company. 

8.3 Projected Balance Sheet

You can see in the balance sheet how the ending balances for long-term assets were not re-valued.  They remain at the original purchase price until they are sold, or written off as a complete loss.  There is a $5 million write-off in the third year, and a sale of $5 million worth of assets in the last year.  That sale of $5 million in assets produces the $5 million sale at book value plus the $45 million gain in the sales forecast and profit and loss table.

8.4 Business Ratios

The Standard Industry Code (SIC) for this type of business is 7389, Business Services.  The Industry Data is provided in the final column of the Ratios table. 

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• Sample Business Plans

Investment Company Business Plan

The possibility for substantial financial gains is one of the main advantages of an investment company. As the company expands and gains customers, it has the potential to generate large fees and commissions based on investment portfolios.

Are you looking for the same rewards? Then go on with planning everything first.

Need help writing a business plan for your investment company? You’re at the right place. Our investment company business plan template will help you get started.

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Download our free investment company business plan template now and pave the way to success. Let’s turn your vision into an actionable strategy!

• Fill in the blanks – Outline
• Financial Tables

How to Write An Investment Company Business Plan?

Writing an investment company business plan is a crucial step toward the success of your business. Here are the key steps to consider when writing a business plan:

1. Executive Summary

An executive summary is the first section planned to offer an overview of the entire business plan. However, it is written after the entire business plan is ready and summarizes each section of your plan.

Here are a few key components to include in your executive summary:

• Introduce your Business: Start your executive summary by briefly introducing your business to your readers.This section may include the name of your investment company, its location, when it was founded, the type of investment company (E.g., mutual fund companies, hedge funds, venture capital firms), etc.
• Market Opportunity: Summarize your market research, including market size, growth potential, and marketing trends. Highlight the opportunities in the market and how your business will fit in to fill the gap.
• Products and Services: Highlight the investment company services you offer your clients. The USPs and differentiators you offer are always a plus.For instance, you may include investment management, portfolio diversification, or tax planning as services and mention customized investment solutions as your USP.
• Marketing & Sales Strategies: Outline your sales and marketing strategies—what marketing platforms you use, how you plan on acquiring customers, etc.
• Financial Highlights: Briefly summarize your financial projections for the initial years of business operations. Include any capital or investment requirements, associated startup costs, projected revenues, and profit forecasts.
• Call to Action: Summarize your executive summary section with a clear CTA, for example, inviting angel investors to discuss the potential business investment.

Ensure your executive summary is clear, concise, easy to understand, and jargon-free.

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2. Business Overview

The business overview section of your business plan offers detailed information about your company. The details you add will depend on how important they are to your business. Yet, business name, location, business history, and future goals are some of the foundational elements you must consider adding to this section:

• Mutual fund companies
• Venture capital funds
• Private equity funds
• Asset management companies
• Pension fund managers
• Describe the legal structure of your investment company, whether it is a sole proprietorship, LLC, partnership, or others.
• Explain where your business is located and why you selected the place.
• Owners: List the names of your investment company’s founders or owners. Describe what shares they own and their responsibilities for efficiently managing the business. Mission Statement: Summarize your business’ objective, core principles, and values in your mission statement. This statement needs to be memorable, clear, and brief.
• Business History: If you’re an established investment company, briefly describe your business history, like—when it was founded, how it evolved over time, etc.Additionally, If you have received any awards or recognition for excellent work, describe them.
• Future Goals: It’s crucial to convey your aspirations and vision. Mention your short-term and long-term goals; they can be specific targets for revenue, market share, or expanding your services.

This section should provide a thorough understanding of your business, its history, and its future plans. Keep this section engaging, precise, and to the point.

3. Market Analysis

The market analysis section of your business plan should offer a thorough understanding of the industry with the target market, competitors, and growth opportunities. You should include the following components in this section.

• Target market: Start this section by describing your target market. Define your ideal customer and explain what types of services they prefer. Creating a buyer persona will help you easily define your target market to your readers.For instance, individual individuals, institutions & corporations, etc can be the target market for investment companies.
• Market size and growth potential: Describe your market size and growth potential and whether you will target a niche or a much broader market.The global investment market grew to around $3837 billion this year from around $3532 billion in 2022 at a CAGR of 8.6%.
• Competitive Analysis: Identify and analyze your direct and indirect competitors. Identify their strengths and weaknesses, and describe what differentiates your investment company services from them. Point out how you have a competitive edge in the market.
• Market Trends: Analyze emerging trends in the industry, such as technology disruptions, changes in customer behavior or preferences, etc. Explain how your business will cope with all the trends.For instance, there is growing popularity for passive income; explain how you plan on dealing with this potential growth opportunity.
• Regulatory Environment: List regulations and licensing requirements that may affect your investment company, such as securities laws, anti-money laundering laws, KYC, market regulations, etc.

Here are a few tips for writing the market analysis section of your investment company business plan:

• Conduct market research, industry reports, and surveys to gather data.
• Provide specific and detailed information whenever possible.
• Illustrate your points with charts and graphs.
• Write your business plan keeping your target audience in mind.

4. Products And Services

The product and services section should describe the specific services and products that will be offered to customers. To write this section should include the following:

• Portfolio management
• Financial planning
• Investment research and analysis
• Wealth management
• Mutual funds and exchange-traded funds
• Investment advisory services: Investment advisory services might include professional advice on asset allocation, investment strategies, and portfolio construction. Both discretionary and non-discretionary investment advisory services available or not should be mentioned.
• Additional Services: Mention if your investment company offers any additional services. You may include services like retirement planning, estate planning & wealth transfer, business succession planning, etc.

In short, this section of your investment business plan must be informative, precise, and client-focused. By providing a clear and compelling description of your offerings, you can help potential investors and readers understand the value of your business.

5. Sales And Marketing Strategies

Writing the sales and marketing strategies section means a list of strategies you will use to attract and retain your clients. Here are some key elements to include in your sales & marketing plan:

• Unique Selling Proposition (USP): Define your business’s USPs depending on the market you serve, the equipment you use, and the unique services you provide. Identifying USPs will help you plan your marketing strategies.For example, customized investment solutions, expertise, or innovative investment strategies could be some of the great USPs for an investment company.
• Pricing Strategy: Describe your pricing strategy—how you plan to price your services and stay competitive in the local market. You can mention any discounts you plan on offering to attract new customers.
• Marketing Strategies: Discuss your marketing strategies to market your services. You may include some of these marketing strategies in your business plan—social media marketing, Google ads, SEO, email marketing, content marketing, etc.
• Sales Strategies: Outline the strategies you’ll implement to maximize your sales. Your sales strategies may include direct sales calls, partnering with other businesses, consultative selling, etc.
• Customer Retention: Describe your customer retention strategies and how you plan to execute them. For instance, introducing loyalty programs, discounts on annual membership, personalized service, etc.

Overall, this section of your investment company business plan should focus on customer acquisition and retention.

Have a specific, realistic, and data-driven approach while planning sales and marketing strategies for your investment business, and be prepared to adapt or make strategic changes in your strategies based on feedback and results.

6. Operations Plan

The operations plan section of your business plan should outline the processes and procedures involved in your business operations, such as staffing requirements and operational processes. Here are a few components to add to your operations plan:

• Staffing & Training: Mention your business’s staffing requirements, including the number of employees, consultants, or data analyst needed. Include their qualifications, the training required, and the duties they will perform.
• Operational Process: Outline the processes and procedures you will use to run your investment company. Your operational processes may include portfolio management, client onboarding, investment research & analysis, trade execution & settlement, etc.
• Equipment & Software: Include the list of equipment and software required for investment business, such as servers & data storage, network equipment, trading platforms, customer relationship management software, portfolio management software, etc.Explain how these technologies help you maintain quality standards and improve the efficiency of your business operations.

Adding these components to your operations plan will help you lay out your business operations, which will eventually help you manage your business effectively.

7. Management Team

The management team section provides an overview of your investment business’s management team. This section should provide a detailed description of each manager’s experience and qualifications, as well as their responsibilities and roles.

• Founders/CEO: Mention the founders and CEO of your investment company, and describe their roles and responsibilities in successfully running the business.
• Key managers: Introduce your management and key members of your team, and explain their roles and responsibilities.It should include, key executives(e.g. COO, CMO), senior management, and other department managers (e.g. operations manager, portfolio manager, compliance manager) involved in the investment company business operations, including their education, professional background, and any relevant experience in the industry.
• Organizational structure: Explain the organizational structure of your management team. Include the reporting line and decision-making hierarchy.
• Compensation Plan: Describe your compensation plan for the management and staff. Include their salaries, incentives, and other benefits.
• Advisors/Consultants: Mentioning advisors or consultants in your business plans adds credibility to your business idea.So, if you have any advisors or consultants, include them with their names and brief information consisting of roles and years of experience.

This section should describe the key personnel for your investment company, highlighting how you have the perfect team to succeed.

8. Financial Plan

Your financial plan section should provide a summary of your business’s financial projections for the first few years. Here are some key elements to include in your financial plan:

• Profit & loss statement: Describe details such as projected revenue, operational costs, and service costs in your projected profit and loss statement . Make sure to include your business’s expected net profit or loss.
• Cash flow statement: The cash flow for the first few years of your operation should be estimated and described in this section. This may include billing invoices, payment receipts, loan payments, and any other cash flow statements.
• Balance Sheet: Create a projected balance sheet documenting your investment company’s assets, liabilities, and equity.
• Break-even point: Determine and mention your business’s break-even point—the point at which your business costs and revenue will be equal.This exercise will help you understand how much revenue you need to generate to sustain or be profitable.
• Financing Needs: Calculate costs associated with starting an investment company, and estimate your financing needs and how much capital you need to raise to operate your business. Be specific about your short-term and long-term financing requirements, such as investment capital or loans.

Be realistic with your financial projections, and make sure you offer relevant information and evidence to support your estimates.

9. Appendix

The appendix section of your plan should include any additional information supporting your business plan’s main content, such as market research, legal documentation, financial statements, and other relevant information.

• Add a table of contents for the appendix section to help readers easily find specific information or sections.
• In addition to your financial statements, provide additional financial documents like tax returns, a list of assets within the business, credit history, and more. These statements must be the latest and offer financial projections for at least the first three or five years of business operations
• Provide data derived from market research, including stats about the industry, user demographics, and industry trends.
• Include any legal documents such as permits, licenses, and contracts.
• Include any additional documentation related to your business plan, such as product brochures, marketing materials, operational procedures, etc.

Use clear headings and labels for each section of the appendix so that readers can easily find the necessary information.

Remember, the appendix section of your investment firm business plan should only include relevant and important information supporting your plan’s main content.

The Quickest Way to turn a Business Idea into a Business Plan

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This sample investment company business plan will provide an idea for writing a successful investment company plan, including all the essential components of your business.

After this, if you still need clarification about writing an investment-ready business plan to impress your audience, download our investment company business plan pdf .

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Frequently asked questions, why do you need an investment company business plan.

A business plan is an essential tool for anyone looking to start or run a successful investment business. It helps to get clarity in your business, secures funding, and identifies potential challenges while starting and growing your business.

Overall, a well-written plan can help you make informed decisions, which can contribute to the long-term success of your investment company.

How to get funding for your investment company?

There are several ways to get funding for your investment company, but self-funding is one of the most efficient and speedy funding options. Other options for funding are:

Small Business Administration (SBA) loan

Crowdfunding, angel investors.

Apart from all these options, there are small business grants available, check for the same in your location and you can apply for it.

Where to find business plan writers for your investment company?

There are many business plan writers available, but no one knows your business and ideas better than you, so we recommend you write your investment company business plan and outline your vision as you have in your mind.

What is the easiest way to write your investment company business plan?

A lot of research is necessary for writing a business plan, but you can write your plan most efficiently with the help of any investment company business plan example and edit it as per your need. You can also quickly finish your plan in just a few hours or less with the help of our business plan software .

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Upmetrics is the #1 business planning software that helps entrepreneurs and business owners create investment-ready business plans using AI. We regularly share business planning insights on our blog. Check out the Upmetrics blog for such interesting reads. Read more

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Essential Guide: Writing a Business Plan for Investment Banking Success

By alex ryzhkov, get full bundle.

Are you looking to start your own investment bank? It's an exciting venture that requires careful planning and strategic decision-making. In this blog post, we will guide you through the process of writing a business plan for an investment bank in 9 essential steps . But first, let's take a look at the latest statistics and growth trends in this industry.

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The investment banking industry has been experiencing steady growth over the past few years. According to market research , the global investment banking market size was valued at $78.3 billion in 2020 and is projected to reach $108 billion by 2027. This indicates a compound annual growth rate (CAGR) of 4.6% from 2021 to 2027. The growing demand for financial services and the rise of corporate restructuring activities are major factors contributing to this growth.

Now that we have a glimpse of the industry's potential, let's dive into the step-by-step process of writing a business plan for your investment bank. These steps will help you lay a solid foundation and position your bank for success in a competitive market.

• Conduct market research: Understand the current market landscape and identify potential opportunities for your investment bank.
• Identify target market and potential clients: Determine the specific audience you want to cater to and define your ideal client profile.
• Assess competition and industry trends: Analyze your competitors and stay updated on the latest trends in investment banking to stay ahead of the game.
• Determine and define services and product offerings: Clearly define the range of services and products your investment bank will offer to meet the needs of your clients.
• Develop a strategic business model: Create a roadmap for your investment bank's operations, including revenue streams, cost structure, and value proposition.
• Establish a legal structure and obtain necessary licenses: Ensure compliance with all legal and regulatory requirements by choosing the appropriate legal structure and obtaining the necessary licenses and permits.
• Determine staffing and recruitment strategy: Plan your staffing needs and define your recruitment strategy to build a talented and dedicated team.
• Create a comprehensive financial projection: Develop a detailed financial projection that includes revenue forecasts, expense estimates, and cash flow analysis.
• Define marketing and sales strategy: Outline your marketing and sales approach to attract clients and promote your investment bank's services effectively.

By following these steps, you will be well-prepared to write a comprehensive business plan for your investment bank. Stay tuned for the detailed guide on each of these steps in our upcoming blog posts.

Conduct Market Research

Market research is a crucial step in the process of writing a business plan for an investment bank. It provides valuable insights into the current market conditions, industry trends, and customer preferences. By conducting thorough market research, you can gather essential information that will help you make informed decisions and develop a successful business strategy.

Here are some important aspects to consider when conducting market research:

• Industry Analysis: Analyze the investment banking industry to understand its overall structure, key players, and market trends. Identify any emerging opportunities or challenges that may impact your business.
• Target Market: Identify your target market based on specific criteria such as company size, industry sector, geographical location, and financial needs. Determine the market demand for investment banking services within your target market.
• Customer Preferences: Understand the preferences and requirements of your potential clients. Conduct surveys, interviews, or focus groups to gather valuable insights about their expectations from an investment bank.
• Competitor Analysis: Assess the strengths and weaknesses of your competitors in the investment banking industry. Identify their unique selling points and areas where you can differentiate your services and gain a competitive advantage.
• Market Size and Growth: Determine the overall market size for investment banking services and analyze the potential growth rate. This information will help you estimate your market share and develop realistic financial projections.

Tips for Conducting Market Research:

• Utilize both primary and secondary research methods to gather relevant data.
• Use online resources, industry reports, and financial publications for secondary research.
• Engage with potential clients and industry experts to gain insights into market trends and demands.
• Consider hiring a professional market research firm if your budget allows.
• Analyze the results of your market research and incorporate them into your business plan.

Identify Target Market And Potential Clients

Identifying the target market and potential clients is a crucial step in developing a successful business plan for an investment bank. This step allows you to understand who your services will cater to and how you can effectively reach them.

1. Conduct market research: Start by conducting thorough market research to gain insights into the financial industry and the specific needs of your target market. Look at industry reports, market trends, and customer preferences to identify potential gaps or opportunities.

2. Define your niche: Determine the specific niche or area of expertise within the financial services industry that your investment bank will focus on. This could be a particular industry sector, geographical location, or specialized financial products.

3. Segment your target market: Divide the market into specific segments based on demographic, geographic, psychographic, and behavioral characteristics. This segmentation will help you define customer profiles and tailor your services to their unique needs.

4. Determine ideal clients: Identify the characteristics of your ideal clients within each market segment. Consider factors such as their financial goals, investment preferences, company size, and potential for long-term business relationships.

5. Evaluate competition: Research and analyze your competitors to understand their target markets and the services they offer. This analysis will help you identify gaps in the market that your investment bank can fill and differentiate your services from the competition.

• Consider conducting surveys or focus groups to gather feedback from potential clients and understand their needs and expectations.
• Utilize market segmentation tools and techniques to identify untapped customer groups and tailor your marketing efforts accordingly.
• Stay updated with industry news and trends to identify emerging opportunities and potential shifts in customer preferences.

By identifying your target market and potential clients, you can develop a business plan that aligns with their needs and positions your investment bank as the preferred choice in the market. This step lays the foundation for the next stages of your business plan, such as defining your services, creating a marketing strategy, and projecting financials.

Assess Competition And Industry Trends

Assessing the competition and industry trends is a crucial step in developing a business plan for an investment bank. By conducting a thorough analysis of the competitive landscape, you can gain valuable insights into the market dynamics and identify potential opportunities and challenges.

To assess the competition, start by identifying the key players in the investment banking industry. Look at both local and global banks that offer similar services and target a similar client base. Analyze their strengths, weaknesses, and market positioning. This will help you understand what sets your bank apart and how you can differentiate yourself.

Industry trends play a significant role in shaping the future of investment banking. Stay up-to-date with the latest developments, regulatory changes, and emerging technologies that are impacting the industry. This will help you anticipate shifts in customer preferences and adapt your business strategy accordingly.

• Tip 1: Use online resources, industry publications, and analyst reports to gather information on market trends and competitor analysis.
• Tip 2: Attend conferences and networking events to connect with industry experts and gain firsthand insights into the latest trends and innovations.
• Tip 3: Leverage social media platforms and online communities to engage with industry professionals and stay informed about industry discussions and news.

Determine And Define Services And Product Offerings

When writing a business plan for an investment bank, it is crucial to determine and define the services and product offerings that your bank will provide. This step is essential in order to clearly communicate to potential investors and clients what your bank brings to the table and how it differentiates itself from competitors.

To start, conduct a thorough analysis of the market to identify the specific financial services that are in demand and that align with your bank's expertise and target market. This analysis will help you identify the unique value proposition that your bank can offer.

Once you have identified the services that your bank will provide, define them in detail in your business plan. Outline the specific features and benefits of each service and how they can meet the needs of your target market. Additionally, explain how these services will be delivered and any unique approaches or methodologies that your bank will employ.

It is important to consider that as an investment bank, your services and product offerings should be comprehensive and tailored to the specific needs of your clients. This may include capital raising services, securities trading, financial advisory, corporate finance, and asset management. The ability to offer a full range of financial solutions is often a key differentiator for investment banks.

Tips for determining and defining services and product offerings:

• Conduct market research to identify the specific financial services that are in demand.
• Clearly outline the features and benefits of each service in detail.
• Tailor your services to meet the specific needs of your target market.
• Consider offering a comprehensive range of financial solutions to differentiate your bank.

By determining and defining your services and product offerings, you can effectively position your investment bank in the market and attract clients who are in need of the specialized financial solutions that your bank provides.

Develop A Strategic Business Model

In order to build a successful investment bank, it is essential to develop a strategic business model that outlines how the bank will operate and achieve its goals. This model will serve as the foundation for the bank's operations and will guide decision-making processes.

1. Define your value proposition: Start by identifying the unique value that your investment bank will bring to the market. Determine what sets your bank apart from competitors and how you will differentiate yourself in terms of the services and products you offer. This will help you attract clients and build a strong customer base.

2. Assess the market demand: Analyze the market to understand the demand for the services your bank aims to provide. Identify potential clients and target markets, and determine how your bank can meet their specific financial needs. This will help you narrow down your focus and tailor your services accordingly.

3. Identify revenue streams: Determine how your bank will generate revenue. Explore different revenue streams, such as fees for financial advisory services, commissions from securities trading, or management fees for asset management. Understand the profitability of each revenue stream and prioritize them based on their potential impact on your business.

4. Build partnerships: Consider forming strategic partnerships with other financial institutions or service providers. Collaborating with established players in the industry can give your bank access to valuable resources, expertise, and a wider network of potential clients. Look for opportunities to create mutually beneficial partnerships that can enhance your bank's offerings.

• Regularly review and update your strategic business model to adapt to changing market conditions and evolving client needs.
• Consider conducting surveys or focus groups to gather feedback from potential clients and validate your business model.
• Keep a close eye on industry trends and technological advancements that may impact your business model, and be proactive in embracing innovation.

By developing a strategic business model, you will have a clear roadmap for your investment bank's success. It will help you make informed decisions, allocate resources effectively, and position your bank as a trusted and reliable financial partner in the market.

Establish A Legal Structure And Obtain Necessary Licenses

Once you have conducted market research, identified your target market, and defined your services and product offerings, it is crucial to establish a strong legal structure for your investment bank. This will not only ensure compliance with regulatory requirements, but also safeguard your business and its stakeholders. Here are the key steps to follow:

• Determine the legal structure: Choose the most appropriate legal structure for your investment bank, such as a sole proprietorship, partnership, corporation, or limited liability company (LLC). Research and consult with legal professionals to understand the benefits and limitations of each structure.
• Register your business: Register your investment bank with the relevant governmental authorities, such as the Secretary of State or Companies House, depending on your jurisdiction. This will provide legal recognition to your business.
• Obtain necessary licenses and permits: Research the licensing requirements specific to investment banking in your jurisdiction. This may include licenses from financial regulatory bodies such as the Securities and Exchange Commission (SEC) or Financial Conduct Authority (FCA). Ensure you meet all the criteria and submit the required documentation accurately and in a timely manner.

Tips for Establishing a Legal Structure and Obtaining Licenses

• Seek professional advice: Consult with legal and financial professionals who specialize in investment banking to ensure compliance with regulations and to maximize legal protection for your business.
• Stay updated with regulations: Regularly monitor changes in financial regulations and licensing requirements to ensure your investment bank remains compliant with all legal obligations.
• Maintain accurate records: Keep all legal documents, licenses, permits, and registration certificates organized and accessible. This will help streamline compliance processes and avoid any issues in the future.
• Build strong relationships: Establish connections with regulatory authorities and stay in touch with industry associations. This will help you stay informed about any updates in the regulatory landscape and foster goodwill within the industry.

By establishing a strong legal structure and obtaining the necessary licenses, you are demonstrating your commitment to operating your investment bank ethically and within the boundaries of the law. This will not only instill confidence in potential clients and investors, but also serve as a solid foundation for your bank's long-term success.

Determine Staffing And Recruitment Strategy

When developing a staffing and recruitment strategy for your investment bank, it is crucial to consider the specific needs of your business and the skills required to deliver your services effectively. Below are some key steps to help you determine your staffing and recruitment strategy:

• Identify key positions: Start by identifying the key positions required for running your investment bank, such as investment bankers, financial analysts, traders, compliance officers, and administrative staff. Determine the number of employees needed for each position based on your business plan.
• Define job descriptions and requirements: Clearly define job descriptions and requirements for each position. This should include the necessary qualifications, skills, and experience required for candidates to be successful in their roles. Be thorough and specific to attract the best talent.
• Develop a recruitment plan: Outline your recruitment plan, including the channels and methods you will use to attract potential candidates. Consider leveraging online job boards, professional networks, and industry-specific recruitment agencies to widen your talent pool.
• Establish an interview and selection process: Develop an interview and selection process to evaluate candidates thoroughly. This may involve multiple stages, such as initial screenings, technical assessments, and in-depth interviews. Ensure that the process is fair, consistent, and aligned with your business goals.
• Consider cultural fit: In addition to technical skills, cultural fit is important for creating a cohesive and productive team. Ensure that you assess candidates' alignment with your company values, work ethics, and communication styles during the selection process.
• Competitive compensation and benefits: Determine competitive compensation packages to attract and retain top talent. Research industry standards and consider offering additional benefits, such as performance bonuses, healthcare coverage, and professional development opportunities.

Tips for Staffing and Recruitment

• Consider networking events and industry conferences to connect with potential candidates.
• Create a positive employer brand by showcasing your organization's unique culture and values.
• Offer internship programs to attract young talent and provide them with valuable industry experience.
• Tap into professional associations and online forums to connect with experienced professionals and build relationships.
• Regularly review your staffing needs and recruitment strategy to adapt to changes in the market and industry.

Create A Comprehensive Financial Projection

Creating a comprehensive financial projection is a crucial step in writing a business plan for an investment bank . It allows you to forecast and estimate the financial performance of your bank over a specific period, usually three to five years. A well-prepared financial projection demonstrates to potential investors and lenders that you have a clear understanding of your bank's revenue, expenses, and profitability.

Here are some important elements to consider when creating a comprehensive financial projection:

• Revenue Projections: Estimate the potential revenue streams for your investment bank. This may include fees from capital raising, securities trading, financial advisory, corporate finance, and asset management services. Analyze market trends and past data to make realistic revenue projections.
• Expense Projections: Forecast the various expenses involved in running your investment bank, such as employee salaries, marketing costs, office rent, technology infrastructure, and regulatory compliance expenses. Consider both fixed and variable costs and ensure that your expenses align with industry standards.
• Profitability Analysis: Analyze the projected revenue and expenses to determine the profitability of your investment bank. Calculate key financial metrics such as gross margin, operating margin, and net profit margin. This analysis will help you understand the financial viability of your business model.
• Cash Flow Projections: Create a cash flow projection to track the inflow and outflow of cash in your investment bank. This will help you anticipate potential cash shortages and plan accordingly. Consider factors such as accounts receivable, accounts payable, loan repayments, and investment returns.
• Sensitivity Analysis: Perform a sensitivity analysis to assess the impact of various scenarios on your financial projections. This will help you identify potential risks and make contingency plans. Consider factors such as changes in interest rates, market fluctuations, and regulatory changes.
• Funding Requirements: Determine the funding requirements of your investment bank based on your financial projections. This includes identifying the initial capital investment required, as well as any additional funding needed for future growth and expansion.

Tips for Creating a Comprehensive Financial Projection:

• Ensure that your financial projections are realistic and based on solid market research and industry knowledge.
• Use conservative assumptions when estimating revenue and growth rates to avoid overestimating your bank's performance.
• Seek advice from financial professionals or consultants to validate your financial projections.
• Regularly review and update your financial projections as your investment bank evolves and market conditions change.
• Include a break-even analysis to determine the point at which your investment bank will start generating profits.

By creating a comprehensive financial projection, you can demonstrate the financial viability and potential profitability of your investment bank. This will instill confidence in potential investors and lenders, increasing your chances of securing the necessary funding to turn your business idea into a reality.

Define Marketing And Sales Strategy

Once you have determined your target market, identified potential clients, and assessed your competition, it is crucial to define a marketing and sales strategy that will effectively reach and attract your target audience.

Firstly, you need to clearly outline your unique selling proposition (USP) – what sets your investment bank apart from the competition and why clients should choose your services. This will form the foundation of your marketing and sales messaging, helping you differentiate yourself in a crowded market.

Identify the most effective marketing channels to reach your target market. This could include traditional methods such as print advertising, industry events, and networking, as well as digital channels like social media, content marketing, and search engine optimization. Determine which channels are most relevant to your audience and allocate resources accordingly.

Next, develop a comprehensive marketing plan outlining specific tactics and initiatives to promote your services. This plan should include a mix of online and offline strategies tailored to your target market, ensuring consistency in messaging and brand identity across all channels.

In addition to marketing, it is crucial to establish an effective sales strategy to convert leads into clients. This involves defining your target audience's buying journey and creating a sales process that guides potential clients through each stage. Determine the specific actions, resources, and tools your sales team will need to effectively engage and convert leads into loyal customers.

Regularly track and measure the success of your marketing and sales efforts. Monitor key performance indicators (KPIs) such as lead generation, conversion rates, and customer retention to identify areas for improvement and make data-driven adjustments to your strategy.

• Invest in professional branding and design to establish a strong and memorable brand image.
• Consider partnering with industry influencers or thought leaders to enhance your credibility and reach a wider audience.
• Offer valuable content through blog posts, whitepapers, and webinars to position your investment bank as a trusted authority in the field.
• Ensure your marketing and sales teams are well-trained and equipped with the necessary tools and resources to effectively communicate your value proposition.

By defining a well-thought-out marketing and sales strategy, you will increase your chances of attracting and retaining clients, setting your investment bank on the path to success.

In conclusion, writing a business plan for an investment bank requires careful consideration and thorough research. By following the nine steps outlined in this checklist, entrepreneurs can create a comprehensive and well-defined plan that will attract potential investors and set their business up for success. Conducting market research, identifying target markets, assessing competition, and defining services and product offerings are all essential aspects of developing a strong business plan for an investment bank. Additionally, establishing a legal structure, determining staffing strategy, creating financial projections, and defining marketing and sales strategies are crucial steps in ensuring the bank's long-term viability and profitability. By carefully following these steps, entrepreneurs can position their investment bank to thrive in the competitive financial industry.

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Investment Company Business Plan Template

Written by Dave Lavinsky

Investment Company Business Plan

You’ve come to the right place to create your Investment Company business plan.

We have helped over 1,000 entrepreneurs and business owners create business plans and many have used them to start or grow their Investment Companies.

Below is a template to help you create each section of your Investment Company business plan.

Executive Summary

Business overview.

NovaGrowth Investments is a startup investment company located in Aurora, Colorado. The company is founded by Thom Anderson, an investment broker from Colorado Springs, Colorado, who has amassed millions of dollars for his clients over ten years while working at Clear River Investments. Because Thom has gained an extensive following of clients who have already indicated they will follow him to his new investment company, he has made the initial steps into forming NovaGrowth Investments. Thom plans on recruiting a team of highly-qualified professionals to help manage the day-to-day operations of a premier investment company in every aspect of marketing and advising in the land acquisition investment company.

NovaGrowth Investments will provide a wide array of services for investors, in particular those related to the optimal attention and time needed to secure valuable investments on their behalf. Investors can feel confident and secure, knowing that Thom and his team are looking out for their interests in every aspect of the land acquisition process. What’s more, NovaGrowth offers customized guarantees of investment performance that are singular within the investment company industry.

Product Offering

The following are the services that NovaGrowth Investments will provide:

• Analysis and expansive vetting of land acquisition opportunities up to 5M acres
• Extensive market research that secures in-depth findings
• Consistent and competitive returns while managing risk effectively
• Full spectrum wealth management
• Comprehensive array of software tools/programs to capture critical intelligence
• Unique strategies tailored for each individual client
• “New investor” welcome package with goal-setting seminar included
• “Boots on the Ground” team of investment analysts who visit each location under consideration and offer a full report plus video capture of the land
• Oversight and management of each portfolio and customized suggestions

Customer Focus

NovaGrowth Investments will target individual investors. They will also target corporate investors who are seeking land acquisitions. They will target fast-growing companies known to be seeking additional tracts of land. NovaGrowth Investments will target industry partners (cattle ranchers, horse breeders, etc) that could benefit from land acquisition as an investment.

Management Team

NovaGrowth Investments will be owned and operated by Thom Anderson. He recruited Jackson Byers and Kylie Carlson to manage the day-to-day operations of the investment company and oversee human resources.

Thom Anderson is a graduate of Cambridge University in the U.K., where he graduated with an International Business bachelor’s degree. He spent five years in the U.K. sourcing land for a large investment firm as an entry-level investment advisor.

Upon his return to the U.S.,Thom obtained his investment broker’s license and was employed by Clear River Investments in Colorado Springs, Colorado. Within one year, Thom secured over 5M in investments for his clients and, within five years, he amassed over 25M in land acquisition investments on behalf of his clients.

Jackson Byers is a graduate of the University of Illinois, where he graduated with a master’s degree in Accounting. His former role at Clear River Investments was as the Associate Accountant, where he managed the normal business accounting processes for the firm. He will serve as the Staff Accountant in the startup company and will assist in overseeing the day-to-day operations of the firm.

Kylie Carlson was hired by Thom Anderson as his Assistant and worked for him at Clear River Investments for over ten years. Her new role will be the Human Resources Manager, overseeing personnel and the processes that are regulated and required by Colorado.

Success Factors

NovaGrowth Investments will be able to achieve success by offering the following competitive advantages:

• Friendly, knowledgeable, and highly-qualified team of NovaGrowth Investments
• “Boots on the Ground” team of investment analysts who visit each location under consideration and offer a full report plus video capture of the land.
• NovaGrowth Investments offers outstanding value for each client in both their management fees and land acquisition percentages. Their pricing denotes quality and value and their results continually substantiate it.

Financial Highlights

NovaGrowth Investments is seeking $200,000 in debt financing to launch its NovaGrowth Investments. The funding will be dedicated toward securing the office space and purchasing office equipment and supplies. Funding will also be dedicated toward three months of overhead costs to include payroll of the staff, rent, and marketing costs for the marketing costs. The breakout of the funding is below:

• Office space build-out: $20,000
• Office equipment, supplies, and materials: $10,000
• Three months of overhead expenses (payroll, rent, utilities): $150,000
• Marketing costs: $10,000
• Working capital: $10,000

The following graph outlines the financial projections for NovaGrowth Investments.

Company Overview

Who is novagrowth investments.

NovaGrowth Investments is a newly established, full-service investment company in Aurora, Colorado. NovaGrowth Investments will be the most reliable, effective and value-driven choice for private and commercial investors in Aurora and the surrounding communities. NovaGrowth Investments will provide a comprehensive menu of portfolio and land acquisition services for any potential investor to utilize. Their full-service approach includes a comprehensive seminar and helpful introductory information for first-time investors.

  NovaGrowth Investments will be able to manage the investments and acquire new investments for their clients. The team of professionals are highly qualified and experienced in investment brokerage and land acquisitions. NovaGrowth Investments removes all headaches and issues of trying to locate safe and secure investments and ensures all issues are taken care of expeditiously while delivering the best customer service.

NovaGrowth Investments History

Thom Anderson is a graduate of Cambridge University in the U.K., where he graduated with an International Business bachelor’s degree. He spent five years in the U.K. sourcing land for a large investment firm as an entry-level investment advisor. Upon his return to the U.S.,Thom obtained his investment broker’s license and was employed by Clear River Investments in Colorado Springs, Colorado. Within one year, Thom secured over 5M in investments for his clients and, within five years, he amassed over 25M in land acquisition investments on behalf of his clients.

Since incorporation, NovaGrowth Investments has achieved the following milestones:

• Registered NovaGrowth Investments, LLC to transact business in the state of Colorado.
• Has a contract in place for a 10,000 square foot office at one of the midtown buildings
• Reached out to numerous contacts to sign on with NovaGrowth Investments.
• Began recruiting a staff of seven and four office personnel to work at NovaGrowth Investments

NovaGrowth Investments Services

The following will be the services NovaGrowth Investments will provide:

Industry Analysis

The investment company industry is expected to grow over the next five years to over $1.3 trillion. The growth will be driven by ongoing vast opportunities for individuals and organizations seeking to grow their wealth The growth will be driven by new technology that navigating the complexities of the financial markets The growth will be driven by an increase in the interest of individuals in “making their own way” in the world The growth will be driven by the stability of land ownership as an on-going and important element in investment portfolios.

Costs will likely be reduced as technology continues to advance, allowing better-informed acquisition interest and supplemental risk mitigation Costs will likely be reduced as younger investors, such as Gen Z and millennials, continue to express an interest and desire for land acquisition investments, which indicates an increased number of sellers will enter the market due to favorable conditions.

Customer Analysis

Demographic profile of target market.

NovaGrowth Investments will target those potential individual investors in Aurora, Colorado. They will target businesses with a track record of land investments or a need for land due to company growth. NovaGrowth Investments will target industry partners (cattle ranchers, horse breeders, etc) that could benefit from land acquisition as an investment.

Customer Segmentation

NovaGrowth Investments will primarily target the following customer profiles:

• Individual investors
• Businesses with a record of land investments or those seeking land due to internal growth
• Industry partners seeking additional land for livestock or farming purposes

Competitive Analysis

Direct and indirect competitors.

NovaGrowth Investments will face competition from other companies with similar business profiles. A description of each competitor company is below.

CapitalMax Advisors

CapitalMax Advisors is a startup investment company in Colorado Springs, Colorado. The owner, Barry Jackson, is a graduate of Purdue University and has been an investment advisor for over ten years. He recently launched Capital Max Advisors to meet what he coined, “The Great Asset Allocation” investment opportunities within the city of Colorado Springs. Barry has hired ten associates from his former employer’s company to seek investors who are primarily interested in asset allocation investments and the company is promising reduced portfolio management rates for the first six months of business.

CapitalMax Advisors is a full-service investment company with a strong following of investors who were delighted by Barry’s performance on their behalf at his former employer. The expectation is that CapitalMax Advisors will live up to their primary purpose, which is to oversee and direct asset allocation to maximize returns in substantial numbers.

WealthWise Investments

Owned by Tamara and Loren Downs, WealthWise Investments is known for it’s assertive actions on behalf of clients. The company was founded in 2010 and currently offers a diverse range of investment products and services. They specialize in ETFs, mutual funds, and alternative investments. WealthWise Investments is known for its expertise in risk management, technology-driven investment strategies, and statewide reach beyond it’s home city of Colorado Springs.

WealthWise Investments offers excellent services to clients; however, clients have noted publicly that the fees and service charges are high in tandem with the asset allocation gains. There have been two complaints noted with the state regulatory agencies. Meanwhile, Tamara and Loren Downs continue to employ efforts to bring technology-driven tools into the investment company that will trim staff and distribute higher rates on behalf of investors.

FinTech Capital Management

FinTech Capital Management is a five-year-old company located in Denver, Colorado. The focus of the company is on financial technology investments on behalf of their client investors. Currently, the company has recorded stable and growing levels of profitability and has been tagged as an investment management firm known for its expertise in mutual funds and retirement planning They offer a sizable range of investment strategies, including equity, fixed income, and asset allocation funds. They are tech-driven and focus on research-driven investment decisions to fulfill the goals of their clients in long-term wealth creation.

In addition to tech acquisitions, FinTech Capital Management is also directed toward senior investors, with brokerage, retirement planning, wealth management, and mutual funds in their services offered. They provide a range of investment options, from individual stocks and bonds to managed portfolios and retirement accounts, many of which are perfect for those investors who have amassed a sizable portfolio, but are becoming risk-averse as they age. FinTech Capital Management is owned by The Thurgood Family Trust with the Thurgood brothers, Jonathan and Regis, responsible for day-to-day management. It has been recently suggested that the firm may be sold if the right buyers were to approach.

Competitive Advantage

NovaGrowth Investments will be able to offer the following advantages over their competition:

Marketing Plan

Brand & value proposition.

NovaGrowth Investments will offer the unique value proposition to its clientele:

• Unique investment strategies tailored for each individual client

Promotions Strategy

The promotions strategy for NovaGrowth Investments is as follows:

Word of Mouth/Referrals

Thom Anderson has built up an extensive list of contacts over the years by providing exceptional service and expertise to former clients and potential investors. The contacts and clients will follow him to his new company and help spread the word of NovaGrowth Investments.

Professional Associations and Networking

The executives within NovaGrowth Investments will begin networking in professional associations and at events within the city-wide industry groups. This will bring the new startup into focus for other companies, providing a path to increased clients and strategic partnerships within the city.

Social Media Marketing

NovaGrowth Investments will target their primary and secondary audiences with a series of text announcements via social media. The announcements will be invitations to the opening of the company, with a champagne reception and information regarding the services available at NovaGrowth Investments. The social media announcements will continue for the three weeks prior to the launch of the company.

Website/SEO Marketing

NovaGrowth Investments will fully utilize their website. The website will be well organized, informative, and list the services that NovaGrowth Investments provides. The website will also list their contact information and biographies of the executive group. The website will engage in SEO marketing tactics so that anytime someone types in the Google or Bing search engine “Investment company” or “Investment opportunities near me,” NovaGrowth Investments will be listed at the top of the search results.

The pricing of NovaGrowth Investments will be moderate and on par with competitors so customers feel they receive excellent value when purchasing their services.

Operations Plan

The following will be the operations plan for NovaGrowth Investments. Operation Functions:

• Thom Anderson will be the owner and President of the company. He will oversee all staff and manage client relations. Thom has spent the past year recruiting the following staff:
• Jackson Byers will provide all client accounting, tax payments and monthly financial reporting. His title will be Staff Accountant.
• Kylie Carlson will provide all employee onboarding and oversight as she assumes the role of Human Resources Manager.

Milestones:

NovaGrowth Investments will have the following milestones completed in the next six months.

• 5/1/202X – Finalize contract to lease office space
• 5/15/202X – Finalize personnel and staff employment contracts for NovaGrowth Investments
• 6/1/202X – Finalize contracts for NovaGrowth Investments clients
• 6/15/202X – Begin networking at industry events
• 6/22/202X – Begin moving into NovaGrowth Investments office
• 7/1/202X – NovaGrowth Investments opens its doors for business

Financial Plan

Key revenue & costs.

The revenue drivers for NovaGrowth Investments are the fees they will charge to clients for their investment acquisition and portfolio management services.

The cost drivers will be the overhead costs required in order to staff NovaGrowth Investments. The expenses will be the payroll cost, rent, utilities, office supplies, and marketing materials.

Funding Requirements and Use of Funds

NovaGrowth Investments is seeking $200,000 in debt financing to launch its investment company. The funding will be dedicated toward securing the office space and purchasing office equipment and supplies. Funding will also be dedicated toward three months of overhead costs to include payroll of the staff, rent, and marketing costs for the print ads and association memberships. The breakout of the funding is below:

Key Assumptions

The following outlines the key assumptions required in order to achieve the revenue and cost numbers in the financials and in order to pay off the startup business loan.

• Number of Clients Per Month: 175
• Average Revenue per Month: $437,500
• Office Lease per Year: $100,000

Financial Projections

Income statement.

Balance Sheet

Cash Flow Statement

Investment Company Business Plan FAQs

What is an investment company business plan.

An investment company business plan is a plan to start and/or grow your investment company business. Among other things, it outlines your business concept, identifies your target customers, presents your marketing plan and details your financial projections.

You can easily complete your Investment Company business plan using our Investment Company Business Plan Template here .

What are the Main Types of Investment Company Businesses? 

There are a number of different kinds of investment company businesses , some examples include: Closed-End Funds Investment Company, Mutual Funds (Open-End Funds) Investment Company, and Unit Investment Trusts (UITs) Investment Company.

How Do You Get Funding for Your Investment Company Business Plan?

Investment Company businesses are often funded through small business loans. Personal savings, credit card financing and angel investors are also popular forms of funding.

What are the Steps To Start an Investment Company Business?

Starting an investment company business can be an exciting endeavor. Having a clear roadmap of the steps to start a business will help you stay focused on your goals and get started faster.

1. Develop An Investment Company Business Plan - The first step in starting a business is to create a detailed investment company business plan that outlines all aspects of the venture. This should include potential market size and target customers, the services or products you will offer, pricing strategies and a detailed financial forecast. 

2. Choose Your Legal Structure - It's important to select an appropriate legal entity for your investment company business. This could be a limited liability company (LLC), corporation, partnership, or sole proprietorship. Each type has its own benefits and drawbacks so it’s important to do research and choose wisely so that your investment company business is in compliance with local laws.

3. Register Your Investment Company Business - Once you have chosen a legal structure, the next step is to register your investment company business with the government or state where you’re operating from. This includes obtaining licenses and permits as required by federal, state, and local laws.

4. Identify Financing Options - It’s likely that you’ll need some capital to start your investment company business, so take some time to identify what financing options are available such as bank loans, investor funding, grants, or crowdfunding platforms.

5. Choose a Location - Whether you plan on operating out of a physical location or not, you should always have an idea of where you’ll be based should it become necessary in the future as well as what kind of space would be suitable for your operations.

6. Hire Employees - There are several ways to find qualified employees including job boards like LinkedIn or Indeed as well as hiring agencies if needed – depending on what type of employees you need it might also be more effective to reach out directly through networking events.

7. Acquire Necessary Investment Company Equipment & Supplies - In order to start your investment company business, you'll need to purchase all of the necessary equipment and supplies to run a successful operation.

8. Market & Promote Your Business - Once you have all the necessary pieces in place, it’s time to start promoting and marketing your investment company business. This includes creating a website, utilizing social media platforms like Facebook or Twitter, and having an effective Search Engine Optimization (SEO) strategy. You should also consider traditional marketing techniques such as radio or print advertising. 

Learn more about how to start a successful investment company business:

• How to Start an Investment Company

Investment Banker Business Plan Template

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Crafting a comprehensive business plan as an investment banker or entrepreneur is no walk in the park. It requires a detailed roadmap of your business model, financial forecasts, and market strategies to entice investors. Enter ClickUp's Investment Banker Business Plan Template—the ultimate tool to elevate your pitch game!

With this template, you can:

• Dive deep into financial projections and market analysis for a robust business strategy
• Showcase your vision to potential investors with a professional and organized layout
• Seamlessly collaborate with your team to fine-tune your business plan for success

Ready to make your business dreams a reality? Try ClickUp's Investment Banker Business Plan Template today!

Investment Banker Business Plan Template Benefits

Crafting a solid business plan is crucial for securing funding and setting your business up for success in the competitive world of investment banking. The Investment Banker Business Plan Template offers numerous benefits, including:

• Providing a comprehensive roadmap for your business model and strategies
• Helping to showcase financial projections and potential returns to investors
• Streamlining the market analysis process and identifying key opportunities
• Ensuring a professional presentation that increases credibility and trust with potential investors

Main Elements of Investment Banker Business Plan Template

To create a comprehensive business plan for your investment banking needs, utilize ClickUp’s Investment Banker Business Plan Template, which includes:

• Custom Statuses: Track progress with statuses like Complete, In Progress, Needs Revision, and To Do to manage each section of the business plan effectively
• Custom Fields: Utilize custom fields such as Reference, Approved, and Section for detailed documentation and organization of key information
• Custom Views: Access 5 different views including Topics, Status, Timeline, Business Plan, and Getting Started Guide for a holistic overview and management of the business plan

Ensure a structured and organized approach to your investment banking business plan with ClickUp's versatile template, streamlining the process for potential investors and financial success.

How To Use Investment Banker Business Plan Template

Crafting a comprehensive and effective business plan as an investment banker is crucial for success. follow these steps to make the most out of the investment banker business plan template in clickup:, 1. define your business objectives.

Before diving into the template, clearly outline your business objectives. Are you aiming to expand your client base, increase revenue, or launch a new service? Understanding your goals will help shape the rest of your business plan.

Utilize the Goals feature in ClickUp to set and track your business objectives effectively.

2. Analyze the Market

Conduct a thorough market analysis to identify trends, competitors, and potential opportunities. Understanding the market landscape will help you position your business effectively and make informed decisions.

Use the Board view in ClickUp to visually map out your market analysis and competitor research.

3. Develop a Financial Strategy

Outline a detailed financial strategy that includes revenue projections, expense forecasts, and profit margins. This will give you a clear picture of your financial health and help you make strategic financial decisions.

Utilize the Gantt chart feature in ClickUp to create a timeline for your financial strategy implementation.

4. Create an Execution Plan

Detail the steps you need to take to achieve your business objectives. Break down tasks, set deadlines, and assign responsibilities to ensure smooth execution of your business plan.

Use Automations in ClickUp to streamline task assignments and notifications for seamless execution.

5. Monitor Progress and Adjust

Regularly monitor key performance indicators (KPIs) outlined in your business plan to track progress. Analyze your performance against set goals and be ready to make adjustments as needed to stay on track.

Utilize the Dashboard feature in ClickUp to create a customized dashboard with real-time data to monitor your business plan's progress effectively.

Get Started with ClickUp’s Investment Banker Business Plan Template

Investment bankers and entrepreneurs can utilize the Investment Banker Business Plan Template in ClickUp to craft a comprehensive business plan for potential investors.

To get started, click on “Add Template” to incorporate the Investment Banker Business Plan Template into your Workspace. Ensure you select the appropriate Space or location within your Workspace.

Next, invite key team members or stakeholders to your Workspace to begin collaborating on the business plan.

Here's how you can leverage the template to create a compelling business plan:

• Utilize the Topics View to outline different sections of your business plan
• Track progress by using the Status View to monitor tasks in different stages: Complete, In Progress, Needs Revision, To Do
• Create a detailed timeline using the Timeline View to set deadlines for each section of the business plan
• Organize and view the entire business plan in one place with the Business Plan View
• Refer to the Getting Started Guide View for a step-by-step walkthrough of the template and tips on creating a successful business plan
• Customize the template by adding custom fields like Reference, Approved, Section to provide additional context and information
• Update statuses and custom fields as needed to keep all team members informed and aligned
• Monitor and analyze progress to ensure the business plan is comprehensive and investor-ready.

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Investment Bank Business Plan and SWOT Analysis

Investment Bank Business Plan, Marketing Plan, How To Guide, and Funding Directory

The Investment Bank Business Plan and Business Development toolkit features 18 different documents that you can use for capital raising or general business planning purposes. Our product line also features comprehensive information regarding to how to start an Investment Bank business. All business planning packages come with easy-to-use instructions so that you can reduce the time needed to create a professional business plan and presentation.

Your Business Planning Package will be immediately emailed to you after you make your purchase.

Product Specifications (please see images below):

• Bank/Investor Ready!
• Complete Industry Research
• 3 Year Excel Financial Model
• Business Plan (26 to 30 pages)
• Loan Amortization and ROI Tools
• Three SWOT Analysis Templates
• Easy to Use Instructions
• All Documents Delivered in Word, Excel, and PDF Format
• Meets SBA Requirements

Investment banks are a highly important part of the capital market. These companies are able to source investments, underwrite their securities, and bring shares to the general public. Additionally, and over the last 30 years – many investment banks have gone on to provide a number of other services outside of securities underwriting. These companies have become one-stop shops for many businesses that are looking to raise capital, seller business, acquire business, and engage in specialized financing activities. Many investment banks are now completely integrated with their commercial banking counterparts. As such, these businesses are always able to remain profitable and cash flow positive at all times. While there is no standard textbook definition for an investment bank as many companies call themselves, most commonly the companies are that are considered true investment banks engage thoroughly in securities underwriting. These businesses are able to charge anywhere from 3% to 10% of the overall offering.

Any major financial institution or investment bank needs a business plan. This document should include a three-year to five-year profit and loss statement, cash flow analysis, balance sheet, breakeven analysis, business ratios page, and lending rush ratios page. Many investment banks focus heavily on the income that is derived not only from securities underwriting but also asset management as well. Asset management has become one of the most major aspects for most investment banks as it generates highly recurring streams of revenue from the monthly fees that are debited from a customer’s account. Within the business plan as well, a full discussion regarding the target market should be included. This includes a number of businesses in the target market, their annual revenues, distribution of industries covered, and other relevant information relating to the businesses that the investment bank we working with from the onset of operations as well as through a five-year time..

An investment bank marketing plan is also essential to having this business become successful. Most importantly, many investment banks work with marketing firms that have a specialized expertise in financial firms given that certain disclosures must be made as part of their overall marketing campaign. Most investment banks have their attorneys thoroughly review any materials that are distributed to the general public given that certain disclosures must be made in accordance with regulations and laws. A presence on the Internet is now mandated for pretty much every financial firm that wants to be successful given that most companies will first search online to see the operating history of an investment bank for they choose to do business with them.

An investment bank SWOT analysis is frequently developed as well. This analysis focuses on the strengths, weaknesses, opportunities, and threats that are common within this industry. As it relates the strengths, most investment banks are always able to remain profitable as companies are to continue to need capital in order to expand their operations. As these banks work with a number of different industries – many of whom are immune from negative economic changes – their ability to remain profitable in all economic climates is very stable. For weaknesses, this is a highly regulated industry and any investment bank is going to need to have a substantial number of compliance officers in place to make sure that are operating within the letter of the law at all times. Pertaining to opportunities, many financial firms will look to hire associate bankers, acquire third-party investment banking firms, and develop new service lines in order to boost their revenues on a year-to-year basis. For threats, many investment banks face ongoing changes in regulatory matters. This trend is not expected to change anytime soon and it can be expected that having to deal with complex regulatory issues will be something that an investment bank needs to deal with in perpetuity.

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Understanding Investment Banking

Regulation and investment banking.

• IPO Underwriting

The Bottom Line

• Investing Basics

Investment Banking: What It Is, What Investment Bankers Do

Julia Kagan is a financial/consumer journalist and former senior editor, personal finance, of Investopedia.

Charlene Rhinehart is a CPA , CFE, chair of an Illinois CPA Society committee, and has a degree in accounting and finance from DePaul University.

Pete Rathburn is a copy editor and fact-checker with expertise in economics and personal finance and over twenty years of experience in the classroom.

Ellen Lindner / Investopedia

What Is Investment Banking?

Investment banking is a type of banking that organizes large, complex financial transactions such as mergers or initial public offering (IPO) underwriting. These banks may raise money for companies in a variety of ways, including underwriting the issuance of new securities for a corporation, municipality, or other institution. They may manage a corporation's IPO. Investment banks also provide advice in mergers, acquisitions, and reorganizations.

In essence, investment bankers are experts who have their fingers on the pulse of the current investment climate. They help their clients navigate the complex world of high finance.

Key Takeaways

• Investment banking deals primarily with raising money for companies, governments, and other entities.
• Investment banking activities include underwriting new debt and equity securities for all types of corporations.
• Investment banks will also facilitate mergers and acquisitions, reorganizations, and broker trades for institutions and private investors.
• Investment bankers work with corporations, governments, and other groups. They plan and manage the financial aspects of large projects.
• Investment banks were legally separated from other types of commercial banks in the United States from 1933 to 1999, when the Glass-Steagall Act that segregated them was repealed.

Investment banks underwrite new debt and equity securities for all types of corporations, aid in the sale of securities, and help facilitate  mergers and acquisitions , reorganizations, and broker trades for institutions and private investors. Investment banks also provide guidance to issuers regarding the offering and placement of stock.

Many large investment banking systems are affiliated with or subsidiaries of larger banking institutions, and many have become household names, the largest being Goldman Sachs, Morgan Stanley, JPMorgan Chase, Bank of America Merrill Lynch, and Deutsche Bank.

Broadly speaking, investment banks assist in large, complicated financial transactions. They may provide advice on how much a company is worth and how best to structure a deal if the investment banker's client is considering an acquisition, merger, or sale.

Investment banks' activities also may include issuing securities as a means of raising money for client groups and creating the documentation for the U.S. Securities and Exchange Commission (SEC) necessary for a company to go public.

Investment banks employ investment bankers who help corporations, governments, and other groups plan and manage large projects , saving their clients time and money by identifying risks associated with the project before the client moves forward.

In theory, investment bankers are experts who have their finger on the pulse of the current investing climate, so businesses and institutions turn to investment banks for advice on how best to plan their development, as investment bankers can tailor their recommendations to the present state of economic affairs.

The Glass-Steagall Act was passed in 1933 after the 1929 stock market crash led to massive bank failures. The purpose of the law was to separate commercial and investment banking activities. The mixing of commercial and investment banking activities was considered very risky and may have worsened the 1929 crash.

This is because, when the stock market crashed, investors rushed to draw their money from banks to meet margin calls and for other purposes, but some banks were unable to honor these requests because they too had invested their clients' money in the stock market.

Before Glass-Steagall was passed, banks could divert retail depositors' funds into speculative operations such as investing in the equity markets. As such operations became more lucrative, banks took larger and larger speculative positions, eventually putting depositors' funds at risk.

However, the stipulations of the act were considered harsh by some in the financial sector, and Congress eventually repealed the Glass-Steagall Act in 1999. The Gramm-Leach-Bliley Act of 1999 thus eliminated the separation between investment and commercial banks. Since the repeal, most major banks have resumed combined investment and commercial banking operations.

Initial Public Offering (IPO) Underwriting

Essentially, investment banks serve as middlemen between a company and investors when the company wants to issue stock or bonds. The investment bank assists with pricing financial instruments to maximize revenue and with navigating regulatory requirements.

Often, when a company holds its IPO, an investment bank will buy all or much of that company's shares directly from the company.

Subsequently, as a proxy for the company launching the IPO, the investment bank will sell the shares on the market. This makes things much easier for the company itself, as it effectively contracts out the IPO to the investment bank.

Moreover, the investment bank stands to make a profit, as it will generally price its shares at a markup from what it initially paid for them. In doing so, it also takes on a substantial amount of risk.

Although experienced analysts use their expertise to accurately price the stock as best they can, the investment bank can lose money on the deal if it turns out that it has overvalued the stock, as in this case, it will often have to sell the stock for less than it initially paid for it.

Example of Investment Banking

Suppose that Pete's Paints Co., a chain supplying paints and other hardware, wants to go public. Pete, the owner, gets in touch with José, an investment banker working for a larger investment banking firm.

Pete and José strike a deal wherein José (on behalf of his firm) agrees to buy 100,000 shares of Pete's Paints for the company's IPO at the price of $24 per share, a price at which the investment bank's analysts arrived after careful consideration.

The investment bank pays $2.4 million for the 100,000 shares and, after filing the appropriate paperwork, begins selling the stock for $26 per share. However, the investment bank is unable to sell more than 20% of the shares at this price and is forced to reduce the price to $23 per share to sell the remaining shares.

For the IPO deal with Pete's Paints, then, the investment bank has made $2.36 million [(20,000 × $26) + (80,000 × $23) = $520,000 + $1,840,000 = $2,360,000]. In other words, José's firm has lost $40,000 on the deal because it overvalued Pete's Paints.

Investment banks often compete with one another to secure IPO projects, which can force them to increase the price they are willing to pay to secure the deal with the company that is going public. If competition is particularly fierce, this can lead to a substantial blow to the investment bank's bottom line.

Most often, however, there will be more than one investment bank underwriting securities in this way, rather than just one. While this means that each investment bank has less to gain, it also means that each one will have reduced risk.

What Do Investment Banks Do?

Broadly speaking, investment banks assist in large, complicated financial transactions . They may provide advice on how much a company is worth and how best to structure a deal if the investment banker's client is considering an acquisition, merger, or sale.

Essentially, their services include underwriting new debt and equity securities for all types of corporations, providing aid in the sale of securities, and helping to facilitate mergers and acquisitions, reorganizations, and broker trades for both institutions and private investors. They also may issue securities as a means of raising money for the client groups and create the necessary U.S. Securities and Exchange Commission (SEC) documentation for a company to go public.

What Is the Role of Investment Bankers?

Investment banks employ people who help corporations, governments, and other groups plan and manage large projects, saving their clients time and money by identifying risks associated with the project before the client moves forward. In theory, investment bankers should be experts who have their finger on the pulse of the current investing climate. Businesses and institutions turn to investment banks for advice on how best to plan their development. Investment bankers, using their expertise, tailor their recommendations to the present state of economic affairs.

What Is an Initial Public Offering (IPO)?

An initial public offering (IPO) refers to the process of offering shares of a private corporation to the public in a new stock issuance. Public share issuance allows a company to raise capital from public investors. Companies must meet requirements set by exchanges and the SEC to hold an IPO. Companies hire investment banks to underwrite their IPOs. The underwriters are involved in every aspect of the IPO due diligence, document preparation, filing, marketing, and issuance.

The names of investment banks like Goldman Sachs and Morgan Stanley come up frequently in discussions about the financial market, highlighting the importance of these institutions in the financial world.

In general, investment banks assist clients with large and complex financial transactions. This includes underwriting new debt and equity securities, aiding in the sale of securities, and helping to facilitate mergers and acquisitions, reorganizations, and broker trades. Investment banks may help other organizations raise capital by underwriting initial public offerings (IPOs) and creating the documentation required for a company to go public.

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10 Investment Proposal Template to Use [+ Quick Guide]

Written by: Olujinmi Oluwatoni

Having a exceptional product or idea is great. But it’s not enough to scale growth.

Research by Skynova revealed that about 47% of startups fail due to a lack of investors and financing, while 44% decline when they run out of cash. When these founders were asked what they would do differently, 43% said they would seek more investors to stay afloat.

Whether you run a startup or lead a large corporation, knowing how to craft a convincing investment proposal can boost your chances of getting funding or scaling up.

A well-crafted investment proposal demonstrates the viability of the investment and builds confidence, thereby increasing the likelihood of securing funding.

Not sure how to write a good investment proposal?

In this article, we will show you how to write a proposal that will help you secure funding. We’ve included 10 professionally designed investment proposal templates for you to customize and send right away.

Are you ready to scale up?

Let’s begin!

Table of Contents

What is an investment proposal, business plan vs investment proposal, what should an investment proposal include.

• How to Write an Investment Proposal?

10 Investment Proposal Templates to Make Your Own

• An investment proposal is a written document that presents your company to interested investors as a viable investment option.
• Your investment proposal should include the following key components: the cover page, table of contents, executive summary or about us page, market analysis, value proposition and plan of action, budget and revenue model, team’s portfolio, ROI or exit strategy, the next steps and call to action.
• To write a captivating investment proposal, do thorough research, create an outline, and use an investment proposal template.
• Customize your template to fit your brand, tailor your investment proposal for each investor, provide a clear CTA and publish and share your proposal.
• Visme provides a wide range of customizable templates and exciting features to create professional investment proposals seamlessly.

An investment proposal is a document that showcases your business as a suitable opportunity for potential investors who have shown interest in your company. This document details crucial information such as your company’s objectives, market analysis , plan of action, budget and a clear return on investment (ROI) strategy.

Whether you’re trying to raise capital or fund an expansion, a detailed investment proposal is also a great tool for pitching to an investor and winning over. It convinces an investor that your business is viable and worth investing in.

After an investor pitch deck presentation, you can share an investment proposal with your client. It acts as a reminder and brings some of the information they might have missed during the session to their attention.

While a business plan and an investment proposal may share certain components, their core differences lie in their purpose and audience.

A business plan is a detailed documentation of your business idea, target market, financial projections and growth strategy. Its purpose is to clarify your ideas and flesh out your concept. You can use your business plan to gain partners or seek a license.

Your investment proposal, however, aims to secure funding from potential investors. Every section here is written to convince them why investing in your company will be a good decision.

This infographic below summarizes the differences between a business plan and an investment proposal.

Made with Visme Infographic Maker

Your investment proposal should include the following key components:

Your cover page should carry a clear title describing what your proposal entails. For example, “Digital Bank Investment Proposal.” You can also include your name and the receiver’s name as well.

The table of contents helps your investor scan your document before reading it. Ensure you label and include the important sections of your investment proposal in the table of contents.

Executive Summary or About Us Page

Your executive summary should briefly highlight your business. It should give an overview of the solution your business offers to the market and your achievements thus far. You can also include your mission and vision statement to give your reader more insight into your company.

Market Analysis

The market analysis section should include a bird’s eye view of your target market, market value or market share and market trends.

This section should demonstrate an in-depth understanding of your market or audience. It should show your reader that you have done extensive research and have real data to back up your funding request. You should also showcase that you’ve conducted your competitive analysis and understand their strengths and weaknesses.

Business Model

Your business model should include details about the products or services offered, target customers, pricing strategy, distribution channels and cost structure. It should showcase how your company will operate, make money, and stay competitive and sustainable in the market.

Value Proposition and Plan of Action

Here, you should highlight the problem that your market is facing and how you plan to solve it. Discuss the solution you are introducing and your strategy to execute it. This section doesn't have to be so thorough, but it should give your reader an understanding of your plan or process for execution.

Budget and Revenue Model

In this section, you should break down how your business generates revenue or your plan for customer acquisition. Highlight your revenue model, whether it is a sales, subscription, freemium, transaction fee revenue model, or any other model.

You want to show your potential investor that you have a proven framework for profitability. Also, be transparent about how you will utilize the investment, as this will boost trust in your company.

Team’s Portfolio

In addition to your business's profitability, your potential investor will care about other things that can influence your company’s success. One of which is your team’s expertise and ability to carry out your plans and goals.

Depending on the theme of your proposal, you can showcase your management’s experience and the team behind the venture.

ROI or Exit Strategy

Great investors always look out for the safety of their principal or reasonable returns.

Knowing this, you can spotlight a return on investment or exit strategy, which could be an initial public offering (IPO), acquisition, merger, liquidation or shutdown. Also, highlight the various ways investors can receive a return on their investments.

Next Steps/Clear Call To Action (CTA)

Once you have all the important details in your investment proposal, close with a clear call to action (CTA). Your potential investor should know what to do or how to reach you to finalize the deal or set up a meeting for more details.

How to Write an Investment Proposal

Here’s a step-by-step guide to writing your investment proposal:

Perform Thorough Research

Before you begin writing your investment proposal, you need to have proper and relevant information at hand. Some key areas of research you will carry out include:

1. The investor you're writing to. For example, when researching an investor, you want to find out;

• What type of investors are they
• Their main field, niche or focus
• If they plan to venture into new territories
• What projects they’ve already funded
• What projects they've rejected, and why
• Any additional public information that might be useful (such as interviews, area of interest, etc.).

2. Market research and opportunity: You should conduct a thorough research on the following;

• Market Segmentation
• Competitor Analysis
• Customer needs
• SWOT analysis
• Market size and growth
• Your Value proposition
• Marketing channels

3. Budget and financial projections: You should consider the following key areas;

• Revenue projections
• Expense projections
• Capital expenditures
• Cash flow analysis
• Profit margins
• Debt and Financing

4. Marketing plan and strategies and lots more.

You must spend time on this step to get accurate data or estimations. Presenting accurate information can make a good impression and also accelerate your writing process.

Create an Outline

After your research, bring together all the information you've gathered and organize them into an outline. An outline will guide you as you write and ensure you don't forget any important aspect or detail.

Look through the section above on what your investment proposal should include and note the parts you want to add to yours.

Choose a Template

Writing a comprehensive investment proposal from scratch can be overwhelming. A premade template can help you save time and energy. And Visme has a vast library of professional templates you can tap into.

Just select one that matches your outline and vision. Then add and remove pages or swap any information you wish. All of Visme's templates are professionally designed and customizable, giving you a creative head start and making the entire process stress-free.

Hear what one of our users has to say about our templates:

Web Designer & Digital Marketing Specialist

Write your Executive Summary and Other Details

Now that you've chosen your template, it's time to fill in the sections with the information you've gathered from your research.

The executive summary of your investment proposal should be concise and informative. It should include a brief overview of the project, the problem it addresses, the proposed solution, market analysis, financial projections, and potential returns for investors.

Keep it focused. Highlighting the key points that would interest potential investors and provide a compelling case for why the investment offer is worthwhile.

Customize the Template to Fit Your Brand

You don't have to settle with the template's fonts or colors if you don't like them. You can personalize your investor proposal template to suit your brand.

Using Visme's brand design tool , all you need to do is upload your company's brand assets and apply them to all the documents you create.

If you don't have a branding kit for your business yet, click on "My Brand" left panel and set it up in just a few minutes. You can then apply your branding to the whole document with just one click.

Tailor Your Investment Proposal for Each Investor

If you have more than one potential investor, you may want to consider customizing your investment proposal for each of them.

Ensure you personalize their contact address or company name before you share it with them.

To make this easier, use Visme's dynamic field tool to update key details across your documents in one click. With this tool, you don't have to worry about going page by page to make important changes to your document.

Provide a Clear CTA

Before sending your investment proposal to your potential investor, review each section to ensure they include relevant details about your company and funding requests.

Provide a clear CTA so investors know the next step to take. Do you want them to schedule another call to talk? Or do you want them to go ahead and request an investment term sheet if they're interested?

Whatever the case, ensure it's feasible and easy to respond to.

Publish and Share Your Investment Proposal

You've done all the tough work. Now it's time to send out your investment proposal and expect great feedback.

Visme allows you to publish and share your investment proposal in different ways. You can download it as a presentation, a PDF document, or an embed link.

You can also share a private link with your potential investor to view it or publish it and share it with a group of people at once.

If you're pressed for time to create an investment proposal or any other document, Visme's AI document generator has you covered. Simply give it a text prompt, and it will craft a suitable draft with text, images and icons in a style that suits you.

Then, you can tailor every aspect of the document to your needs to create eye-catching professional documents in no time.

Here are 10 amazing templates you can customize right now!

Real Estate Investment Proposal Template

Use this template to attract interested and enthusiastic investors to your real estate properties.

Research forecast shows that by 2030, the global real estate market will grow to over $6.13 trillion at a compound annual growth rate (CAGR) of 5.2%. As the demand for real estate increases, you need to position your company as a trusted business to invest in.

This investment proposal template highlights your company’s achievements through the About Us section, portfolio and testimonials from happy customers. Investors are always on the lookout for credible businesses, so these sections prove your authority in the industry and showcase your results thus far.

One thing that sets this template apart is how it utilizes Visme’s vast library of high-quality stock photos to add to the essence of your company’s brand and goals.

You can also tap into the infinite possibilities of Visme’s AI image generator . Simply type in your prompts and generate professional-quality photos and graphics for your proposal in minutes. The Visme AI image editor also comes in handy for polishing your images and giving them a professional look.

Business Investment Proposal

This business investment proposal template empowers entrepreneurs, startups and businesses to present their vision with precision and impact. From the dynamic executive summary to the detailed financial projections, every section of this business investment plan is strategically designed to showcase your potential.

The ultimate goal of a successful investor proposal is to present information in a digestible way without boring your audience. Utilize Visme's charts, graphs and maps to effectively present data such as market analyses, financial projections and more. If you need to streamline your design process even more, you can easily import your data from Google Sheets.

Partnership Investment Proposal

This carefully created template will walk you through each step of creating a powerful partnership proposition.

Prove that you've done your homework by outlining your competitive advantages and explaining how your business model will help stakeholders get their returns on investment.

To get feedback about your proposal from coworkers quickly, you can invite them to your Visme project using Visme’s collaborative features . This way, you can control their access and let them view, modify and comment on it.

Prime Real Estate Investment Proposal

This template is tailor-made for real estate enthusiasts, investors and developers seeking to unlock the potential of prime locations. Whether you're aiming to attract capital for a luxury residential project or a commercial venture, you can make your case with this template.

This investment proposal format will help you showcase your market analysis, projected returns, strategic vision and how the project will deliver impressive returns on investment.

Startup Investment Proposal

Whether you're seeking seed funding, angel investment, or venture capital, the sections provided help you convey the potential and uniqueness of your solution.

From the captivating introduction that captures your startup's mission and vision to the detailed market analysis, this startup investment proposal template equips you to make a persuasive case.

You can also highlight your competitive advantage, business model, financial projections and team expertise. This will provide investors with a clear understanding of the growth trajectory your startup envisions.

Take advantage of the animation and interactivity tools available in Visme, such as clickable menus to reveal larger data sets or hover effects to reveal additional information. This will allow you to create an immersive experience for your audience and also improve the value of your proposal.

Project Investment Proposal

Whether you're seeking funding for an infrastructure project, a community initiative, or a technological innovation, this template guides you through each step of the process. Showcase how your project addresses challenges and meets demands, positioning it as a worthy investment opportunity.

Don’t know what to write in the different sections of your investment proposal? You can take advantage of Visme’s AI writer to generate your first draft and help you craft a compelling story.

Restaurant Investment Proposal

If you're ready to entice investors with a taste of what your restaurant can achieve and secure the funding to make it a reality, leverage our investment proposal example.

Navigate through market analysis, your restaurant's competitive edge and the revenue potential that your culinary masterpiece promises. Showcase how your menu, ambiance and innovation set your establishment apart. This will help you position your restaurant as an appetizing investment opportunity.

Investment Proposal Template

If you want to provide a clear and convincing investment proposal to your potential investor, then this template is a goldmine!

It begins with your company’s story, vision and mission statement. This helps your reader understand the purpose of your company and what it hopes to achieve. Presenting this early on in your proposal template can help your reader relate to your story.

This investment plan template goes further to give a breakdown of your company’s target market, market share and profit and loss statement. This shows your potential investor that you have a lot of knowledge about your market. It also gives them the confidence that your company is profitable and a good investment.

The SWOT analysis is a unique angle in this investment proposal. Including this paints a more realistic picture of the internal and external factors that influence your company’s success.

App Development Investment Proposal Template

This template is dedicated to app-related ventures and assists you in presenting your app's potential to investors. It takes you from a compelling introduction about your app's purpose and user benefits to a thorough market analysis. Also, it allows you to highlight investor benefits and exit strategies.

You can convincingly express your app's promising future by showcasing your competitive advantage, revenue projections and risk assessment.

Visme offers advanced collaboration features , such as live editing, commenting, annotating and version control, to make the collaboration process as smooth as possible.

Invite other team members to join you in creating an investment proposal by emailing or sharing a link to collaborate with them on the project.

In addition, Visme also provides workflow management features that allow you to manage roles, tasks, progress, and corrections all in one place.

Basic Investment Proposal Template

The basic investment proposal template takes you on a cohesive journey through your proposal. Starting with an impactful executive summary, it smoothly transitions into a detailed market analysis, all wrapped in bold black, white and neon colors for a memorable impression.

Powerful data visualizations such as vertical bar graphs, line charts, and pie charts aid in simplifying complex market data.

With sections for financial projections and thorough SWOT analysis, it tells the full story of your proposal in an engaging and visually impressive manner.

Once your investment proposal gets accepted, you might be asked to present an in-depth presentation to potential investors. Check out the stock pitch templates from Visme's library to create a presentation to wow the investors and secure the deal.

Investment Proposal FAQs

Q. what to avoid when writing an investment proposal.

Here are some things to avoid when writing your investment proposal:

• Avoid writing hearsay or data that is not backed up. For example, don’t say there are 90% of individuals going through a problem if you don't have data to back it up.
• Avoid using too much industry terminology that may confuse your potential investor if they aren't too familiar with your industry. Aim for simpler words that still communicate your point.
• Avoid painting an unrealistic picture for your potential investors. Don’t tell them the grass is going to be green all year long. They know there are always ups and downs in business. A better approach will be to include a plan to mitigate risks.
• Avoid beating around the bush. Be confident in your funding request and break down how you plan to use the funds to grow or expand your business.

Q. What Makes a Good Investment Proposal?

A good investment proposal incorporates storytelling and establishes clear expectations, leaving no room for ambiguity. Data-driven projections and realistic timelines result in great investment proposals.

Your document should address the questions and concerns of any potential investor and position your company as an asset. Before you send your investment proposal to a potential investor, we suggest giving it to a colleague or partner to read and review.

You know you have a good investment proposal when their feedback includes words like credible, realistic, detailed, engaging, persuasive, or solid.

Q. How Do I Propose My Business to an Investor?

When you want to propose your business idea or concept to an investor, keep in mind a few things:

Nothing beats prior preparation. Understanding the interests of an investor can help you find a good way to approach them and pitch your idea.

Prioritize a warm approach with a well-crafted pitch that communicates your business’ value and potential. Having a pitch deck on hand that details your company’s products or services might be a good idea.

Be passionate about your business, yet concise. Investors feed off your energy and are intrigued by well-informed founders.

Lastly, aim to build relationships and rapport with a potential investor. Encourage a relaxed conversation and always be ready to answer their questions in more detail.

Q. How Do You Start a Proposal Example?

Your investment proposal should begin with an executive summary or introduction that highlights what your company does, its mission and values and solution offerings.

You can incorporate your company’s story or a quick glance at your journey. Make sure you begin on a strong note. Resonate with your potential investors and engage them from the beginning.

Q. What Do Investors Look for in an Investment Proposal?

When you submit your investment proposal to a potential investor, they will go through the complete document to get an overview of your business offering and funding expectations.

However, there may be sections that deserve closer attention than others. While Investors vary in their approach, most take a deep dive into your market opportunity, your revenue model, final projections and allocation of funds and an exit strategy.

Also, potential investors want to see if you’ve done proper research and can present it well.

They also look to see if you have what it takes to carry out the plans you’ve highlighted in your proposal.

Q. How Long Does It Take To Write a Business Proposal for Investors?

Your process from research to completion may vary depending on the availability of relevant data or investor-specific demands. It may take days or weeks to present a foolproof business proposal for investors.

However, this time can be reduced when you utilize proposal templates. These templates provide a clear structure, improve your efficiency and give you more time to personalize and perfect your investment proposal for each investor.

Q. What Is the Difference Between a Business Plan and an Investment Proposal?

A business plan is a comprehensive document that outlines a company's objectives and the strategies that will be used to accomplish them. It's a helpful guide for both people working within the company and those looking from the outside.

In comparison, an investment proposal is specifically created for potential investors. It's a document that shares important details about a business's request for funding, making it easier for investors to decide whether they want to invest.

To sum up, a business plan covers the broader scope of a company's objectives and goals, while an investment proposal is tailored to attract investors to fund the business.

Q. How Many Pages Should an Investment Proposal Be?

There's no strict page limit for an investment proposal. However, since investors are busy people, you should aim for brevity. A good rule of thumb is to aim for 10 to 15 pages. This allows you to provide enough detail of the investment opportunity without overwhelming the reader with unnecessary information.

When you write an investment proposal, make sure you focus on quality content and relevant data, not just the number of pages.

Q. What Is the Difference Between a Business Proposal and an Investment Proposal?

A business proposal is a document that pitches a product or service to a potential client, while an investment proposal outlines an investment opportunity for investors.

The goal of a business proposal is to win over the client by emphasizing how valuable and beneficial our product or service is. In comparison, an investment proposal aims to attract funding by showing investors the financial potential and expected returns of a business or project.

Easily Impress Investors & Clients with Visme

Knowing the capital or funding your company needs to expand is one thing. Being able to communicate this effectively to a potential investor is another.

With this guide, we’re confident in your ability to produce a well-rounded investment proposal that guarantees funding from potential investors.

Visme's capabilities and user-friendly interface make it ideal for developing excellent investment proposals whether you’re a professional designer or not. Your presentation will come to life with the help of millions of available graphics, icons, design elements and professional templates.

Beyond creating investment proposals, Visme allows you to create other assets, such as investor pitch decks, videos, sales enablement content and marketing assets.

If you’re ready to impress your investors, attract funding and scale growth,   sign up with Visme today !

Create captivating investment proposals with Visme

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About the Author

Olujinmi is a Content writer for Visme who creates human-first SEO content. She loves helping businesses smash their ROI goals with strategic content development and optimization. When she’s not writing, you’ll find her composing songs.

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How to Write a Business Plan in 9 Steps (+ Template and Examples)

Every successful business has one thing in common, a good and well-executed business plan. A business plan is more than a document, it is a complete guide that outlines the goals your business wants to achieve, including its financial goals . It helps you analyze results, make strategic decisions, show your business operations and growth.

If you want to start a business or already have one and need to pitch it to investors for funding, writing a good business plan improves your chances of attracting financiers. As a startup, if you want to secure loans from financial institutions, part of the requirements involve submitting your business plan.

Writing a business plan does not have to be a complicated or time-consuming process. In this article, you will learn the step-by-step process for writing a successful business plan.

You will also learn what you need a business plan for, tips and strategies for writing a convincing business plan, business plan examples and templates that will save you tons of time, and the alternatives to the traditional business plan.

Let’s get started.

What Do You Need A Business Plan For?

Businesses create business plans for different purposes such as to secure funds, monitor business growth, measure your marketing strategies, and measure your business success.

1. Secure Funds

One of the primary reasons for writing a business plan is to secure funds, either from financial institutions/agencies or investors.

For you to effectively acquire funds, your business plan must contain the key elements of your business plan . For example, your business plan should include your growth plans, goals you want to achieve, and milestones you have recorded.

A business plan can also attract new business partners that are willing to contribute financially and intellectually. If you are writing a business plan to a bank, your project must show your traction , that is, the proof that you can pay back any loan borrowed.

Also, if you are writing to an investor, your plan must contain evidence that you can effectively utilize the funds you want them to invest in your business. Here, you are using your business plan to persuade a group or an individual that your business is a source of a good investment.

2. Monitor Business Growth

A business plan can help you track cash flows in your business. It steers your business to greater heights. A business plan capable of tracking business growth should contain:

• The business goals
• Methods to achieve the goals
• Time-frame for attaining those goals

A good business plan should guide you through every step in achieving your goals. It can also track the allocation of assets to every aspect of the business. You can tell when you are spending more than you should on a project.

You can compare a business plan to a written GPS. It helps you manage your business and hints at the right time to expand your business.

3. Measure Business Success

A business plan can help you measure your business success rate. Some small-scale businesses are thriving better than more prominent companies because of their track record of success.

Right from the onset of your business operation, set goals and work towards them. Write a plan to guide you through your procedures. Use your plan to measure how much you have achieved and how much is left to attain.

You can also weigh your success by monitoring the position of your brand relative to competitors. On the other hand, a business plan can also show you why you have not achieved a goal. It can tell if you have elapsed the time frame you set to attain a goal.

4. Document Your Marketing Strategies

You can use a business plan to document your marketing plans. Every business should have an effective marketing plan.

Competition mandates every business owner to go the extraordinary mile to remain relevant in the market. Your business plan should contain your marketing strategies that work. You can measure the success rate of your marketing plans.

In your business plan, your marketing strategy must answer the questions:

• How do you want to reach your target audience?
• How do you plan to retain your customers?
• What is/are your pricing plans?
• What is your budget for marketing?

How to Write a Business Plan Step-by-Step

1. create your executive summary.

The executive summary is a snapshot of your business or a high-level overview of your business purposes and plans . Although the executive summary is the first section in your business plan, most people write it last. The length of the executive summary is not more than two pages.

Generally, there are nine sections in a business plan, the executive summary should condense essential ideas from the other eight sections.

A good executive summary should do the following:

• A Snapshot of Growth Potential. Briefly inform the reader about your company and why it will be successful)
• Contain your Mission Statement which explains what the main objective or focus of your business is.
• Product Description and Differentiation. Brief description of your products or services and why it is different from other solutions in the market.
• The Team. Basic information about your company’s leadership team and employees
• Business Concept. A solid description of what your business does.
• Target Market. The customers you plan to sell to.
• Marketing Strategy. Your plans on reaching and selling to your customers
• Current Financial State. Brief information about what revenue your business currently generates.
• Projected Financial State. Brief information about what you foresee your business revenue to be in the future.

The executive summary is the make-or-break section of your business plan. If your summary cannot in less than two pages cannot clearly describe how your business will solve a particular problem of your target audience and make a profit, your business plan is set on a faulty foundation.

Avoid using the executive summary to hype your business, instead, focus on helping the reader understand the what and how of your plan.

View the executive summary as an opportunity to introduce your vision for your company. You know your executive summary is powerful when it can answer these key questions:

• Who is your target audience?
• What sector or industry are you in?
• What are your products and services?
• What is the future of your industry?
• Is your company scaleable?
• Who are the owners and leaders of your company? What are their backgrounds and experience levels?
• What is the motivation for starting your company?
• What are the next steps?

Writing the executive summary last although it is the most important section of your business plan is an excellent idea. The reason why is because it is a high-level overview of your business plan. It is the section that determines whether potential investors and lenders will read further or not.

The executive summary can be a stand-alone document that covers everything in your business plan. It is not uncommon for investors to request only the executive summary when evaluating your business. If the information in the executive summary impresses them, they will ask for the complete business plan.

If you are writing your business plan for your planning purposes, you do not need to write the executive summary.

2. Add Your Company Overview

The company overview or description is the next section in your business plan after the executive summary. It describes what your business does.

Adding your company overview can be tricky especially when your business is still in the planning stages. Existing businesses can easily summarize their current operations but may encounter difficulties trying to explain what they plan to become.

Your company overview should contain the following:

• What products and services you will provide
• Geographical markets and locations your company have a presence
• What you need to run your business
• Who your target audience or customers are
• Who will service your customers
• Your company’s purpose, mission, and vision
• Information about your company’s founders
• Who the founders are
• Notable achievements of your company so far

When creating a company overview, you have to focus on three basics: identifying your industry, identifying your customer, and explaining the problem you solve.

If you are stuck when creating your company overview, try to answer some of these questions that pertain to you.

• Who are you targeting? (The answer is not everyone)
• What pain point does your product or service solve for your customers that they will be willing to spend money on resolving?
• How does your product or service overcome that pain point?
• Where is the location of your business?
• What products, equipment, and services do you need to run your business?
• How is your company’s product or service different from your competition in the eyes of your customers?
• How many employees do you need and what skills do you require them to have?

After answering some or all of these questions, you will get more than enough information you need to write your company overview or description section. When writing this section, describe what your company does for your customers.

The company description or overview section contains three elements: mission statement, history, and objectives.

• Mission Statement

The mission statement refers to the reason why your business or company is existing. It goes beyond what you do or sell, it is about the ‘why’. A good mission statement should be emotional and inspirational.

Your mission statement should follow the KISS rule (Keep It Simple, Stupid). For example, Shopify’s mission statement is “Make commerce better for everyone.”

When describing your company’s history, make it simple and avoid the temptation of tying it to a defensive narrative. Write it in the manner you would a profile. Your company’s history should include the following information:

• Founding Date
• Major Milestones
• Location(s)
• Flagship Products or Services
• Number of Employees
• Executive Leadership Roles

When you fill in this information, you use it to write one or two paragraphs about your company’s history.

Business Objectives

Your business objective must be SMART (specific, measurable, achievable, realistic, and time-bound.) Failure to clearly identify your business objectives does not inspire confidence and makes it hard for your team members to work towards a common purpose.

3. Perform Market and Competitive Analyses to Proof a Big Enough Business Opportunity

The third step in writing a business plan is the market and competitive analysis section. Every business, no matter the size, needs to perform comprehensive market and competitive analyses before it enters into a market.

Performing market and competitive analyses are critical for the success of your business. It helps you avoid entering the right market with the wrong product, or vice versa. Anyone reading your business plans, especially financiers and financial institutions will want to see proof that there is a big enough business opportunity you are targeting.

This section is where you describe the market and industry you want to operate in and show the big opportunities in the market that your business can leverage to make a profit. If you noticed any unique trends when doing your research, show them in this section.

Market analysis alone is not enough, you have to add competitive analysis to strengthen this section. There are already businesses in the industry or market, how do you plan to take a share of the market from them?

You have to clearly illustrate the competitive landscape in your business plan. Are there areas your competitors are doing well? Are there areas where they are not doing so well? Show it.

Make it clear in this section why you are moving into the industry and what weaknesses are present there that you plan to explain. How are your competitors going to react to your market entry? How do you plan to get customers? Do you plan on taking your competitors' competitors, tap into other sources for customers, or both?

Illustrate the competitive landscape as well. What are your competitors doing well and not so well?

Answering these questions and thoughts will aid your market and competitive analysis of the opportunities in your space. Depending on how sophisticated your industry is, or the expectations of your financiers, you may need to carry out a more comprehensive market and competitive analysis to prove that big business opportunity.

Instead of looking at the market and competitive analyses as one entity, separating them will make the research even more comprehensive.

Market Analysis

Market analysis, boarding speaking, refers to research a business carried out on its industry, market, and competitors. It helps businesses gain a good understanding of their target market and the outlook of their industry. Before starting a company, it is vital to carry out market research to find out if the market is viable.

The market analysis section is a key part of the business plan. It is the section where you identify who your best clients or customers are. You cannot omit this section, without it your business plan is incomplete.

A good market analysis will tell your readers how you fit into the existing market and what makes you stand out. This section requires in-depth research, it will probably be the most time-consuming part of the business plan to write.

• Market Research

To create a compelling market analysis that will win over investors and financial institutions, you have to carry out thorough market research . Your market research should be targeted at your primary target market for your products or services. Here is what you want to find out about your target market.

• Your target market’s needs or pain points
• The existing solutions for their pain points
• Geographic Location
• Demographics

The purpose of carrying out a marketing analysis is to get all the information you need to show that you have a solid and thorough understanding of your target audience.

Only after you have fully understood the people you plan to sell your products or services to, can you evaluate correctly if your target market will be interested in your products or services.

You can easily convince interested parties to invest in your business if you can show them you thoroughly understand the market and show them that there is a market for your products or services.

How to Quantify Your Target Market

One of the goals of your marketing research is to understand who your ideal customers are and their purchasing power. To quantify your target market, you have to determine the following:

• Your Potential Customers: They are the people you plan to target. For example, if you sell accounting software for small businesses , then anyone who runs an enterprise or large business is unlikely to be your customers. Also, individuals who do not have a business will most likely not be interested in your product.
• Total Households: If you are selling household products such as heating and air conditioning systems, determining the number of total households is more important than finding out the total population in the area you want to sell to. The logic is simple, people buy the product but it is the household that uses it.
• Median Income: You need to know the median income of your target market. If you target a market that cannot afford to buy your products and services, your business will not last long.
• Income by Demographics: If your potential customers belong to a certain age group or gender, determining income levels by demographics is necessary. For example, if you sell men's clothes, your target audience is men.

What Does a Good Market Analysis Entail?

Your business does not exist on its own, it can only flourish within an industry and alongside competitors. Market analysis takes into consideration your industry, target market, and competitors. Understanding these three entities will drastically improve your company’s chances of success.

You can view your market analysis as an examination of the market you want to break into and an education on the emerging trends and themes in that market. Good market analyses include the following:

• Industry Description. You find out about the history of your industry, the current and future market size, and who the largest players/companies are in your industry.
• Overview of Target Market. You research your target market and its characteristics. Who are you targeting? Note, it cannot be everyone, it has to be a specific group. You also have to find out all information possible about your customers that can help you understand how and why they make buying decisions.
• Size of Target Market: You need to know the size of your target market, how frequently they buy, and the expected quantity they buy so you do not risk overproducing and having lots of bad inventory. Researching the size of your target market will help you determine if it is big enough for sustained business or not.
• Growth Potential: Before picking a target market, you want to be sure there are lots of potential for future growth. You want to avoid going for an industry that is declining slowly or rapidly with almost zero growth potential.
• Market Share Potential: Does your business stand a good chance of taking a good share of the market?
• Market Pricing and Promotional Strategies: Your market analysis should give you an idea of the price point you can expect to charge for your products and services. Researching your target market will also give you ideas of pricing strategies you can implement to break into the market or to enjoy maximum profits.
• Potential Barriers to Entry: One of the biggest benefits of conducting market analysis is that it shows you every potential barrier to entry your business will likely encounter. It is a good idea to discuss potential barriers to entry such as changing technology. It informs readers of your business plan that you understand the market.
• Research on Competitors: You need to know the strengths and weaknesses of your competitors and how you can exploit them for the benefit of your business. Find patterns and trends among your competitors that make them successful, discover what works and what doesn’t, and see what you can do better.

The market analysis section is not just for talking about your target market, industry, and competitors. You also have to explain how your company can fill the hole you have identified in the market.

Here are some questions you can answer that can help you position your product or service in a positive light to your readers.

• Is your product or service of superior quality?
• What additional features do you offer that your competitors do not offer?
• Are you targeting a ‘new’ market?

Basically, your market analysis should include an analysis of what already exists in the market and an explanation of how your company fits into the market.

Competitive Analysis

In the competitive analysis section, y ou have to understand who your direct and indirect competitions are, and how successful they are in the marketplace. It is the section where you assess the strengths and weaknesses of your competitors, the advantage(s) they possess in the market and show the unique features or qualities that make you different from your competitors.

Many businesses do market analysis and competitive analysis together. However, to fully understand what the competitive analysis entails, it is essential to separate it from the market analysis.

Competitive analysis for your business can also include analysis on how to overcome barriers to entry in your target market.

The primary goal of conducting a competitive analysis is to distinguish your business from your competitors. A strong competitive analysis is essential if you want to convince potential funding sources to invest in your business. You have to show potential investors and lenders that your business has what it takes to compete in the marketplace successfully.

Competitive analysis will s how you what the strengths of your competition are and what they are doing to maintain that advantage.

When doing your competitive research, you first have to identify your competitor and then get all the information you can about them. The idea of spending time to identify your competitor and learn everything about them may seem daunting but it is well worth it.

Find answers to the following questions after you have identified who your competitors are.

• What are your successful competitors doing?
• Why is what they are doing working?
• Can your business do it better?
• What are the weaknesses of your successful competitors?
• What are they not doing well?
• Can your business turn its weaknesses into strengths?
• How good is your competitors’ customer service?
• Where do your competitors invest in advertising?
• What sales and pricing strategies are they using?
• What marketing strategies are they using?
• What kind of press coverage do they get?
• What are their customers saying about your competitors (both the positive and negative)?

If your competitors have a website, it is a good idea to visit their websites for more competitors’ research. Check their “About Us” page for more information.

If you are presenting your business plan to investors, you need to clearly distinguish yourself from your competitors. Investors can easily tell when you have not properly researched your competitors.

Take time to think about what unique qualities or features set you apart from your competitors. If you do not have any direct competition offering your product to the market, it does not mean you leave out the competitor analysis section blank. Instead research on other companies that are providing a similar product, or whose product is solving the problem your product solves.

The next step is to create a table listing the top competitors you want to include in your business plan. Ensure you list your business as the last and on the right. What you just created is known as the competitor analysis table.

Direct vs Indirect Competition

You cannot know if your product or service will be a fit for your target market if you have not understood your business and the competitive landscape.

There is no market you want to target where you will not encounter competition, even if your product is innovative. Including competitive analysis in your business plan is essential.

If you are entering an established market, you need to explain how you plan to differentiate your products from the available options in the market. Also, include a list of few companies that you view as your direct competitors The competition you face in an established market is your direct competition.

In situations where you are entering a market with no direct competition, it does not mean there is no competition there. Consider your indirect competition that offers substitutes for the products or services you offer.

For example, if you sell an innovative SaaS product, let us say a project management software , a company offering time management software is your indirect competition.

There is an easy way to find out who your indirect competitors are in the absence of no direct competitors. You simply have to research how your potential customers are solving the problems that your product or service seeks to solve. That is your direct competition.

Factors that Differentiate Your Business from the Competition

There are three main factors that any business can use to differentiate itself from its competition. They are cost leadership, product differentiation, and market segmentation.

1. Cost Leadership

A strategy you can impose to maximize your profits and gain an edge over your competitors. It involves offering lower prices than what the majority of your competitors are offering.

A common practice among businesses looking to enter into a market where there are dominant players is to use free trials or pricing to attract as many customers as possible to their offer.

2. Product Differentiation

Your product or service should have a unique selling proposition (USP) that your competitors do not have or do not stress in their marketing.

Part of the marketing strategy should involve making your products unique and different from your competitors. It does not have to be different from your competitors, it can be the addition to a feature or benefit that your competitors do not currently have.

3. Market Segmentation

As a new business seeking to break into an industry, you will gain more success from focusing on a specific niche or target market, and not the whole industry.

If your competitors are focused on a general need or target market, you can differentiate yourself from them by having a small and hyper-targeted audience. For example, if your competitors are selling men’s clothes in their online stores , you can sell hoodies for men.

4. Define Your Business and Management Structure

The next step in your business plan is your business and management structure. It is the section where you describe the legal structure of your business and the team running it.

Your business is only as good as the management team that runs it, while the management team can only strive when there is a proper business and management structure in place.

If your company is a sole proprietor or a limited liability company (LLC), a general or limited partnership, or a C or an S corporation, state it clearly in this section.

Use an organizational chart to show the management structure in your business. Clearly show who is in charge of what area in your company. It is where you show how each key manager or team leader’s unique experience can contribute immensely to the success of your company. You can also opt to add the resumes and CVs of the key players in your company.

The business and management structure section should show who the owner is, and other owners of the businesses (if the business has other owners). For businesses or companies with multiple owners, include the percent ownership of the various owners and clearly show the extent of each others’ involvement in the company.

Investors want to know who is behind the company and the team running it to determine if it has the right management to achieve its set goals.

Management Team

The management team section is where you show that you have the right team in place to successfully execute the business operations and ideas. Take time to create the management structure for your business. Think about all the important roles and responsibilities that you need managers for to grow your business.

Include brief bios of each key team member and ensure you highlight only the relevant information that is needed. If your team members have background industry experience or have held top positions for other companies and achieved success while filling that role, highlight it in this section.

A common mistake that many startups make is assigning C-level titles such as (CMO and CEO) to everyone on their team. It is unrealistic for a small business to have those titles. While it may look good on paper for the ego of your team members, it can prevent investors from investing in your business.

Instead of building an unrealistic management structure that does not fit your business reality, it is best to allow business titles to grow as the business grows. Starting everyone at the top leaves no room for future change or growth, which is bad for productivity.

Your management team does not have to be complete before you start writing your business plan. You can have a complete business plan even when there are managerial positions that are empty and need filling.

If you have management gaps in your team, simply show the gaps and indicate you are searching for the right candidates for the role(s). Investors do not expect you to have a full management team when you are just starting your business.

Key Questions to Answer When Structuring Your Management Team

• Who are the key leaders?
• What experiences, skills, and educational backgrounds do you expect your key leaders to have?
• Do your key leaders have industry experience?
• What positions will they fill and what duties will they perform in those positions?
• What level of authority do the key leaders have and what are their responsibilities?
• What is the salary for the various management positions that will attract the ideal candidates?

Additional Tips for Writing the Management Structure Section

1. Avoid Adding ‘Ghost’ Names to Your Management Team

There is always that temptation to include a ‘ghost’ name to your management team to attract and influence investors to invest in your business. Although the presence of these celebrity management team members may attract the attention of investors, it can cause your business to lose any credibility if you get found out.

Seasoned investors will investigate further the members of your management team before committing fully to your business If they find out that the celebrity name used does not play any actual role in your business, they will not invest and may write you off as dishonest.

2. Focus on Credentials But Pay Extra Attention to the Roles

Investors want to know the experience that your key team members have to determine if they can successfully reach the company’s growth and financial goals.

While it is an excellent boost for your key management team to have the right credentials, you also want to pay extra attention to the roles they will play in your company.

Organizational Chart

Adding an organizational chart in this section of your business plan is not necessary, you can do it in your business plan’s appendix.

If you are exploring funding options, it is not uncommon to get asked for your organizational chart. The function of an organizational chart goes beyond raising money, you can also use it as a useful planning tool for your business.

An organizational chart can help you identify how best to structure your management team for maximum productivity and point you towards key roles you need to fill in the future.

You can use the organizational chart to show your company’s internal management structure such as the roles and responsibilities of your management team, and relationships that exist between them.

5. Describe Your Product and Service Offering

In your business plan, you have to describe what you sell or the service you plan to offer. It is the next step after defining your business and management structure. The products and services section is where you sell the benefits of your business.

Here you have to explain how your product or service will benefit your customers and describe your product lifecycle. It is also the section where you write down your plans for intellectual property like patent filings and copyrighting.

The research and development that you are undertaking for your product or service need to be explained in detail in this section. However, do not get too technical, sell the general idea and its benefits.

If you have any diagrams or intricate designs of your product or service, do not include them in the products and services section. Instead, leave them for the addendum page. Also, if you are leaving out diagrams or designs for the addendum, ensure you add this phrase “For more detail, visit the addendum Page #.”

Your product and service section in your business plan should include the following:

• A detailed explanation that clearly shows how your product or service works.
• The pricing model for your product or service.
• Your business’ sales and distribution strategy.
• The ideal customers that want your product or service.
• The benefits of your products and services.
• Reason(s) why your product or service is a better alternative to what your competitors are currently offering in the market.
• Plans for filling the orders you receive
• If you have current or pending patents, copyrights, and trademarks for your product or service, you can also discuss them in this section.

What to Focus On When Describing the Benefits, Lifecycle, and Production Process of Your Products or Services

In the products and services section, you have to distill the benefits, lifecycle, and production process of your products and services.

When describing the benefits of your products or services, here are some key factors to focus on.

• Unique features
• Translating the unique features into benefits
• The emotional, psychological, and practical payoffs to attract customers
• Intellectual property rights or any patents

When describing the product life cycle of your products or services, here are some key factors to focus on.

• Upsells, cross-sells, and down-sells
• Time between purchases
• Plans for research and development.

When describing the production process for your products or services, you need to think about the following:

• The creation of new or existing products and services.
• The sources for the raw materials or components you need for production.
• Assembling the products
• Maintaining quality control
• Supply-chain logistics (receiving the raw materials and delivering the finished products)
• The day-to-day management of the production processes, bookkeeping, and inventory.

Tips for Writing the Products or Services Section of Your Business Plan

1. Avoid Technical Descriptions and Industry Buzzwords

The products and services section of your business plan should clearly describe the products and services that your company provides. However, it is not a section to include technical jargons that anyone outside your industry will not understand.

A good practice is to remove highly detailed or technical descriptions in favor of simple terms. Industry buzzwords are not necessary, if there are simpler terms you can use, then use them. If you plan to use your business plan to source funds, making the product or service section so technical will do you no favors.

2. Describe How Your Products or Services Differ from Your Competitors

When potential investors look at your business plan, they want to know how the products and services you are offering differ from that of your competition. Differentiating your products or services from your competition in a way that makes your solution more attractive is critical.

If you are going the innovative path and there is no market currently for your product or service, you need to describe in this section why the market needs your product or service.

For example, overnight delivery was a niche business that only a few companies were participating in. Federal Express (FedEx) had to show in its business plan that there was a large opportunity for that service and they justified why the market needed that service.

3. Long or Short Products or Services Section

Should your products or services section be short? Does the long products or services section attract more investors?

There are no straightforward answers to these questions. Whether your products or services section should be long or relatively short depends on the nature of your business.

If your business is product-focused, then automatically you need to use more space to describe the details of your products. However, if the product your business sells is a commodity item that relies on competitive pricing or other pricing strategies, you do not have to use up so much space to provide significant details about the product.

Likewise, if you are selling a commodity that is available in numerous outlets, then you do not have to spend time on writing a long products or services section.

The key to the success of your business is most likely the effectiveness of your marketing strategies compared to your competitors. Use more space to address that section.

If you are creating a new product or service that the market does not know about, your products or services section can be lengthy. The reason why is because you need to explain everything about the product or service such as the nature of the product, its use case, and values.

A short products or services section for an innovative product or service will not give the readers enough information to properly evaluate your business.

4. Describe Your Relationships with Vendors or Suppliers

Your business will rely on vendors or suppliers to supply raw materials or the components needed to make your products. In your products and services section, describe your relationships with your vendors and suppliers fully.

Avoid the mistake of relying on only one supplier or vendor. If that supplier or vendor fails to supply or goes out of business, you can easily face supply problems and struggle to meet your demands. Plan to set up multiple vendor or supplier relationships for better business stability.

5. Your Primary Goal Is to Convince Your Readers

The primary goal of your business plan is to convince your readers that your business is viable and to create a guide for your business to follow. It applies to the products and services section.

When drafting this section, think like the reader. See your reader as someone who has no idea about your products and services. You are using the products and services section to provide the needed information to help your reader understand your products and services. As a result, you have to be clear and to the point.

While you want to educate your readers about your products or services, you also do not want to bore them with lots of technical details. Show your products and services and not your fancy choice of words.

Your products and services section should provide the answer to the “what” question for your business. You and your management team may run the business, but it is your products and services that are the lifeblood of the business.

Key Questions to Answer When Writing your Products and Services Section

Answering these questions can help you write your products and services section quickly and in a way that will appeal to your readers.

• Are your products existing on the market or are they still in the development stage?
• What is your timeline for adding new products and services to the market?
• What are the positives that make your products and services different from your competitors?
• Do your products and services have any competitive advantage that your competitors’ products and services do not currently have?
• Do your products or services have any competitive disadvantages that you need to overcome to compete with your competitors? If your answer is yes, state how you plan to overcome them,
• How much does it cost to produce your products or services? How much do you plan to sell it for?
• What is the price for your products and services compared to your competitors? Is pricing an issue?
• What are your operating costs and will it be low enough for you to compete with your competitors and still take home a reasonable profit margin?
• What is your plan for acquiring your products? Are you involved in the production of your products or services?
• Are you the manufacturer and produce all the components you need to create your products? Do you assemble your products by using components supplied by other manufacturers? Do you purchase your products directly from suppliers or wholesalers?
• Do you have a steady supply of products that you need to start your business? (If your business is yet to kick-off)
• How do you plan to distribute your products or services to the market?

You can also hint at the marketing or promotion plans you have for your products or services such as how you plan to build awareness or retain customers. The next section is where you can go fully into details about your business’s marketing and sales plan.

6. Show and Explain Your Marketing and Sales Plan

Providing great products and services is wonderful, but it means nothing if you do not have a marketing and sales plan to inform your customers about them. Your marketing and sales plan is critical to the success of your business.

The sales and marketing section is where you show and offer a detailed explanation of your marketing and sales plan and how you plan to execute it. It covers your pricing plan, proposed advertising and promotion activities, activities and partnerships you need to make your business a success, and the benefits of your products and services.

There are several ways you can approach your marketing and sales strategy. Ideally, your marketing and sales strategy has to fit the unique needs of your business.

In this section, you describe how the plans your business has for attracting and retaining customers, and the exact process for making a sale happen. It is essential to thoroughly describe your complete marketing and sales plans because you are still going to reference this section when you are making financial projections for your business.

Outline Your Business’ Unique Selling Proposition (USP)

The sales and marketing section is where you outline your business’s unique selling proposition (USP). When you are developing your unique selling proposition, think about the strongest reasons why people should buy from you over your competition. That reason(s) is most likely a good fit to serve as your unique selling proposition (USP).

Target Market and Target Audience

Plans on how to get your products or services to your target market and how to get your target audience to buy them go into this section. You also highlight the strengths of your business here, particularly what sets them apart from your competition.

Before you start writing your marketing and sales plan, you need to have properly defined your target audience and fleshed out your buyer persona. If you do not first understand the individual you are marketing to, your marketing and sales plan will lack any substance and easily fall.

Creating a Smart Marketing and Sales Plan

Marketing your products and services is an investment that requires you to spend money. Like any other investment, you have to generate a good return on investment (ROI) to justify using that marketing and sales plan. Good marketing and sales plans bring in high sales and profits to your company.

Avoid spending money on unproductive marketing channels. Do your research and find out the best marketing and sales plan that works best for your company.

Your marketing and sales plan can be broken into different parts: your positioning statement, pricing, promotion, packaging, advertising, public relations, content marketing, social media, and strategic alliances.

Your Positioning Statement

Your positioning statement is the first part of your marketing and sales plan. It refers to the way you present your company to your customers.

Are you the premium solution, the low-price solution, or are you the intermediary between the two extremes in the market? What do you offer that your competitors do not that can give you leverage in the market?

Before you start writing your positioning statement, you need to spend some time evaluating the current market conditions. Here are some questions that can help you to evaluate the market

• What are the unique features or benefits that you offer that your competitors lack?
• What are your customers’ primary needs and wants?
• Why should a customer choose you over your competition? How do you plan to differentiate yourself from the competition?
• How does your company’s solution compare with other solutions in the market?

After answering these questions, then you can start writing your positioning statement. Your positioning statement does not have to be in-depth or too long.

All you need to explain with your positioning statement are two focus areas. The first is the position of your company within the competitive landscape. The other focus area is the core value proposition that sets your company apart from other alternatives that your ideal customer might consider.

Here is a simple template you can use to develop a positioning statement.

For [description of target market] who [need of target market], [product or service] [how it meets the need]. Unlike [top competition], it [most essential distinguishing feature].

For example, let’s create the positioning statement for fictional accounting software and QuickBooks alternative , TBooks.

“For small business owners who need accounting services, TBooks is an accounting software that helps small businesses handle their small business bookkeeping basics quickly and easily. Unlike Wave, TBooks gives small businesses access to live sessions with top accountants.”

You can edit this positioning statement sample and fill it with your business details.

After writing your positioning statement, the next step is the pricing of your offerings. The overall positioning strategy you set in your positioning statement will often determine how you price your products or services.

Pricing is a powerful tool that sends a strong message to your customers. Failure to get your pricing strategy right can make or mar your business. If you are targeting a low-income audience, setting a premium price can result in low sales.

You can use pricing to communicate your positioning to your customers. For example, if you are offering a product at a premium price, you are sending a message to your customers that the product belongs to the premium category.

Basic Rules to Follow When Pricing Your Offering

Setting a price for your offering involves more than just putting a price tag on it. Deciding on the right pricing for your offering requires following some basic rules. They include covering your costs, primary and secondary profit center pricing, and matching the market rate.

• Covering Your Costs: The price you set for your products or service should be more than it costs you to produce and deliver them. Every business has the same goal, to make a profit. Depending on the strategy you want to use, there are exceptions to this rule. However, the vast majority of businesses follow this rule.
• Primary and Secondary Profit Center Pricing: When a company sets its price above the cost of production, it is making that product its primary profit center. A company can also decide not to make its initial price its primary profit center by selling below or at even with its production cost. It rather depends on the support product or even maintenance that is associated with the initial purchase to make its profit. The initial price thus became its secondary profit center.
• Matching the Market Rate: A good rule to follow when pricing your products or services is to match your pricing with consumer demand and expectations. If you price your products or services beyond the price your customer perceives as the ideal price range, you may end up with no customers. Pricing your products too low below what your customer perceives as the ideal price range may lead to them undervaluing your offering.

Pricing Strategy

Your pricing strategy influences the price of your offering. There are several pricing strategies available for you to choose from when examining the right pricing strategy for your business. They include cost-plus pricing, market-based pricing, value pricing, and more.

• Cost-plus Pricing: This strategy is one of the simplest and oldest pricing strategies. Here you consider the cost of producing a unit of your product and then add a profit to it to arrive at your market price. It is an effective pricing strategy for manufacturers because it helps them cover their initial costs. Another name for the cost-plus pricing strategy is the markup pricing strategy.
• Market-based Pricing: This pricing strategy analyses the market including competitors’ pricing and then sets a price based on what the market is expecting. With this pricing strategy, you can either set your price at the low-end or high-end of the market.
• Value Pricing: This pricing strategy involves setting a price based on the value you are providing to your customer. When adopting a value-based pricing strategy, you have to set a price that your customers are willing to pay. Service-based businesses such as small business insurance providers , luxury goods sellers, and the fashion industry use this pricing strategy.

After carefully sorting out your positioning statement and pricing, the next item to look at is your promotional strategy. Your promotional strategy explains how you plan on communicating with your customers and prospects.

As a business, you must measure all your costs, including the cost of your promotions. You also want to measure how much sales your promotions bring for your business to determine its usefulness. Promotional strategies or programs that do not lead to profit need to be removed.

There are different types of promotional strategies you can adopt for your business, they include advertising, public relations, and content marketing.

Advertising

Your business plan should include your advertising plan which can be found in the marketing and sales plan section. You need to include an overview of your advertising plans such as the areas you plan to spend money on to advertise your business and offers.

Ensure that you make it clear in this section if your business will be advertising online or using the more traditional offline media, or the combination of both online and offline media. You can also include the advertising medium you want to use to raise awareness about your business and offers.

Some common online advertising mediums you can use include social media ads, landing pages, sales pages, SEO, Pay-Per-Click, emails, Google Ads, and others. Some common traditional and offline advertising mediums include word of mouth, radios, direct mail, televisions, flyers, billboards, posters, and others.

A key component of your advertising strategy is how you plan to measure the effectiveness and success of your advertising campaign. There is no point in sticking with an advertising plan or medium that does not produce results for your business in the long run.

Public Relations

A great way to reach your customers is to get the media to cover your business or product. Publicity, especially good ones, should be a part of your marketing and sales plan. In this section, show your plans for getting prominent reviews of your product from reputable publications and sources.

Your business needs that exposure to grow. If public relations is a crucial part of your promotional strategy, provide details about your public relations plan here.

Content Marketing

Content marketing is a popular promotional strategy used by businesses to inform and attract their customers. It is about teaching and educating your prospects on various topics of interest in your niche, it does not just involve informing them about the benefits and features of the products and services you have,

Businesses publish content usually for free where they provide useful information, tips, and advice so that their target market can be made aware of the importance of their products and services. Content marketing strategies seek to nurture prospects into buyers over time by simply providing value.

Your company can create a blog where it will be publishing content for its target market. You will need to use the best website builder such as Wix and Squarespace and the best web hosting services such as Bluehost, Hostinger, and other Bluehost alternatives to create a functional blog or website.

If content marketing is a crucial part of your promotional strategy (as it should be), detail your plans under promotions.

Including high-quality images of the packaging of your product in your business plan is a lovely idea. You can add the images of the packaging of that product in the marketing and sales plan section. If you are not selling a product, then you do not need to include any worry about the physical packaging of your product.

When organizing the packaging section of your business plan, you can answer the following questions to make maximum use of this section.

• Is your choice of packaging consistent with your positioning strategy?
• What key value proposition does your packaging communicate? (It should reflect the key value proposition of your business)
• How does your packaging compare to that of your competitors?

Social Media

Your 21st-century business needs to have a good social media presence. Not having one is leaving out opportunities for growth and reaching out to your prospect.

You do not have to join the thousands of social media platforms out there. What you need to do is join the ones that your customers are active on and be active there.

Businesses use social media to provide information about their products such as promotions, discounts, the benefits of their products, and content on their blogs.

Social media is also a platform for engaging with your customers and getting feedback about your products or services. Make no mistake, more and more of your prospects are using social media channels to find more information about companies.

You need to consider the social media channels you want to prioritize your business (prioritize the ones your customers are active in) and your branding plans in this section.

Strategic Alliances

If your company plans to work closely with other companies as part of your sales and marketing plan, include it in this section. Prove details about those partnerships in your business plan if you have already established them.

Strategic alliances can be beneficial for all parties involved including your company. Working closely with another company in the form of a partnership can provide access to a different target market segment for your company.

The company you are partnering with may also gain access to your target market or simply offer a new product or service (that of your company) to its customers.

Mutually beneficial partnerships can cover the weaknesses of one company with the strength of another. You should consider strategic alliances with companies that sell complimentary products to yours. For example, if you provide printers, you can partner with a company that produces ink since the customers that buy printers from you will also need inks for printing.

Steps Involved in Creating a Marketing and Sales Plan

1. Focus on Your Target Market

Identify who your customers are, the market you want to target. Then determine the best ways to get your products or services to your potential customers.

2. Evaluate Your Competition

One of the goals of having a marketing plan is to distinguish yourself from your competition. You cannot stand out from them without first knowing them in and out.

You can know your competitors by gathering information about their products, pricing, service, and advertising campaigns.

These questions can help you know your competition.

• What makes your competition successful?
• What are their weaknesses?
• What are customers saying about your competition?

3. Consider Your Brand

Customers' perception of your brand has a strong impact on your sales. Your marketing and sales plan should seek to bolster the image of your brand. Before you start marketing your business, think about the message you want to pass across about your business and your products and services.

4. Focus on Benefits

The majority of your customers do not view your product in terms of features, what they want to know is the benefits and solutions your product offers. Think about the problems your product solves and the benefits it delivers, and use it to create the right sales and marketing message.

Your marketing plan should focus on what you want your customer to get instead of what you provide. Identify those benefits in your marketing and sales plan.

5. Focus on Differentiation

Your marketing and sales plan should look for a unique angle they can take that differentiates your business from the competition, even if the products offered are similar. Some good areas of differentiation you can use are your benefits, pricing, and features.

Key Questions to Answer When Writing Your Marketing and Sales Plan

• What is your company’s budget for sales and marketing campaigns?
• What key metrics will you use to determine if your marketing plans are successful?
• What are your alternatives if your initial marketing efforts do not succeed?
• Who are the sales representatives you need to promote your products or services?
• What are the marketing and sales channels you plan to use? How do you plan to get your products in front of your ideal customers?
• Where will you sell your products?

You may want to include samples of marketing materials you plan to use such as print ads, website descriptions, and social media ads. While it is not compulsory to include these samples, it can help you better communicate your marketing and sales plan and objectives.

The purpose of the marketing and sales section is to answer this question “How will you reach your customers?” If you cannot convincingly provide an answer to this question, you need to rework your marketing and sales section.

7. Clearly Show Your Funding Request

If you are writing your business plan to ask for funding from investors or financial institutions, the funding request section is where you will outline your funding requirements. The funding request section should answer the question ‘How much money will your business need in the near future (3 to 5 years)?’

A good funding request section will clearly outline and explain the amount of funding your business needs over the next five years. You need to know the amount of money your business needs to make an accurate funding request.

Also, when writing your funding request, provide details of how the funds will be used over the period. Specify if you want to use the funds to buy raw materials or machinery, pay salaries, pay for advertisements, and cover specific bills such as rent and electricity.

In addition to explaining what you want to use the funds requested for, you need to clearly state the projected return on investment (ROI) . Investors and creditors want to know if your business can generate profit for them if they put funds into it.

Ensure you do not inflate the figures and stay as realistic as possible. Investors and financial institutions you are seeking funds from will do their research before investing money in your business.

If you are not sure of an exact number to request from, you can use some range of numbers as rough estimates. Add a best-case scenario and a work-case scenario to your funding request. Also, include a description of your strategic future financial plans such as selling your business or paying off debts.

Funding Request: Debt or Equity?

When making your funding request, specify the type of funding you want. Do you want debt or equity? Draw out the terms that will be applicable for the funding, and the length of time the funding request will cover.

Case for Equity

If your new business has not yet started generating profits, you are most likely preparing to sell equity in your business to raise capital at the early stage. Equity here refers to ownership. In this case, you are selling a portion of your company to raise capital.

Although this method of raising capital for your business does not put your business in debt, keep in mind that an equity owner may expect to play a key role in company decisions even if he does not hold a major stake in the company.

Most equity sales for startups are usually private transactions . If you are making a funding request by offering equity in exchange for funding, let the investor know that they will be paid a dividend (a share of the company’s profit). Also, let the investor know the process for selling their equity in your business.

Case for Debt

You may decide not to offer equity in exchange for funds, instead, you make a funding request with the promise to pay back the money borrowed at the agreed time frame.

When making a funding request with an agreement to pay back, note that you will have to repay your creditors both the principal amount borrowed and the interest on it. Financial institutions offer this type of funding for businesses.

Large companies combine both equity and debt in their capital structure. When drafting your business plan, decide if you want to offer both or one over the other.

Before you sell equity in exchange for funding in your business, consider if you are willing to accept not being in total control of your business. Also, before you seek loans in your funding request section, ensure that the terms of repayment are favorable.

You should set a clear timeline in your funding request so that potential investors and creditors can know what you are expecting. Some investors and creditors may agree to your funding request and then delay payment for longer than 30 days, meanwhile, your business needs an immediate cash injection to operate efficiently.

Additional Tips for Writing the Funding Request Section of your Business Plan

The funding request section is not necessary for every business, it is only needed by businesses who plan to use their business plan to secure funding.

If you are adding the funding request section to your business plan, provide an itemized summary of how you plan to use the funds requested. Hiring a lawyer, accountant, or other professionals may be necessary for the proper development of this section.

You should also gather and use financial statements that add credibility and support to your funding requests. Ensure that the financial statements you use should include your projected financial data such as projected cash flows, forecast statements, and expenditure budgets.

If you are an existing business, include all historical financial statements such as cash flow statements, balance sheets and income statements .

Provide monthly and quarterly financial statements for a year. If your business has records that date back beyond the one-year mark, add the yearly statements of those years. These documents are for the appendix section of your business plan.

8. Detail Your Financial Plan, Metrics, and Projections

If you used the funding request section in your business plan, supplement it with a financial plan, metrics, and projections. This section paints a picture of the past performance of your business and then goes ahead to make an informed projection about its future.

The goal of this section is to convince readers that your business is going to be a financial success. It outlines your business plan to generate enough profit to repay the loan (with interest if applicable) and to generate a decent return on investment for investors.

If you have an existing business already in operation, use this section to demonstrate stability through finance. This section should include your cash flow statements, balance sheets, and income statements covering the last three to five years. If your business has some acceptable collateral that you can use to acquire loans, list it in the financial plan, metrics, and projection section.

Apart from current financial statements, this section should also contain a prospective financial outlook that spans the next five years. Include forecasted income statements, cash flow statements, balance sheets, and capital expenditure budget.

If your business is new and is not yet generating profit, use clear and realistic projections to show the potentials of your business.

When drafting this section, research industry norms and the performance of comparable businesses. Your financial projections should cover at least five years. State the logic behind your financial projections. Remember you can always make adjustments to this section as the variables change.

The financial plan, metrics, and projection section create a baseline which your business can either exceed or fail to reach. If your business fails to reach your projections in this section, you need to understand why it failed.

Investors and loan managers spend a lot of time going through the financial plan, metrics, and projection section compared to other parts of the business plan. Ensure you spend time creating credible financial analyses for your business in this section.

Many entrepreneurs find this section daunting to write. You do not need a business degree to create a solid financial forecast for your business. Business finances, especially for startups, are not as complicated as they seem. There are several online tools and templates that make writing this section so much easier.

Use Graphs and Charts

The financial plan, metrics, and projection section is a great place to use graphs and charts to tell the financial story of your business. Charts and images make it easier to communicate your finances.

Accuracy in this section is key, ensure you carefully analyze your past financial statements properly before making financial projects.

Address the Risk Factors and Show Realistic Financial Projections

Keep your financial plan, metrics, and projection realistic. It is okay to be optimistic in your financial projection, however, you have to justify it.

You should also address the various risk factors associated with your business in this section. Investors want to know the potential risks involved, show them. You should also show your plans for mitigating those risks.

What You Should In The Financial Plan, Metrics, and Projection Section of Your Business Plan

The financial plan, metrics, and projection section of your business plan should have monthly sales and revenue forecasts for the first year. It should also include annual projections that cover 3 to 5 years.

A three-year projection is a basic requirement to have in your business plan. However, some investors may request a five-year forecast.

Your business plan should include the following financial statements: sales forecast, personnel plan, income statement, income statement, cash flow statement, balance sheet, and an exit strategy.

1. Sales Forecast

Sales forecast refers to your projections about the number of sales your business is going to record over the next few years. It is typically broken into several rows, with each row assigned to a core product or service that your business is offering.

One common mistake people make in their business plan is to break down the sales forecast section into long details. A sales forecast should forecast the high-level details.

For example, if you are forecasting sales for a payroll software provider, you could break down your forecast into target market segments or subscription categories.

Your sales forecast section should also have a corresponding row for each sales row to cover the direct cost or Cost of Goods Sold (COGS). The objective of these rows is to show the expenses that your business incurs in making and delivering your product or service.

Note that your Cost of Goods Sold (COGS) should only cover those direct costs incurred when making your products. Other indirect expenses such as insurance, salaries, payroll tax, and rent should not be included.

For example, the Cost of Goods Sold (COGS) for a restaurant is the cost of ingredients while for a consulting company it will be the cost of paper and other presentation materials.

2. Personnel Plan

The personnel plan section is where you provide details about the payment plan for your employees. For a small business, you can easily list every position in your company and how much you plan to pay in the personnel plan.

However, for larger businesses, you have to break the personnel plan into functional groups such as sales and marketing.

The personnel plan will also include the cost of an employee beyond salary, commonly referred to as the employee burden. These costs include insurance, payroll taxes , and other essential costs incurred monthly as a result of having employees on your payroll.

3. Income Statement

The income statement section shows if your business is making a profit or taking a loss. Another name for the income statement is the profit and loss (P&L). It takes data from your sales forecast and personnel plan and adds other ongoing expenses you incur while running your business.

Every business plan should have an income statement. It subtracts your business expenses from its earnings to show if your business is generating profit or incurring losses.

The income statement has the following items: sales, Cost of Goods Sold (COGS), gross margin, operating expenses, total operating expenses, operating income , total expenses, and net profit.

• Sales refer to the revenue your business generates from selling its products or services. Other names for sales are income or revenue.
• Cost of Goods Sold (COGS) refers to the total cost of selling your products. Other names for COGS are direct costs or cost of sales. Manufacturing businesses use the Costs of Goods Manufactured (COGM) .
• Gross Margin is the figure you get when you subtract your COGS from your sales. In your income statement, you can express it as a percentage of total sales (Gross margin / Sales = Gross Margin Percent).
• Operating Expenses refer to all the expenses you incur from running your business. It exempts the COGS because it stands alone as a core part of your income statement. You also have to exclude taxes, depreciation, and amortization. Your operating expenses include salaries, marketing expenses, research and development (R&D) expenses, and other expenses.
• Total Operating Expenses refers to the sum of all your operating expenses including those exemptions named above under operating expenses.
• Operating Income refers to earnings before interest, taxes, depreciation, and amortization. It is simply known as the acronym EBITDA (earnings before interest, taxes, depreciation, and amortization). Calculating your operating income is simple, all you need to do is to subtract your COGS and total operating expenses from your sales.
• Total Expenses refer to the sum of your operating expenses and your business’ interest, taxes, depreciation, and amortization.
• Net profit shows whether your business has made a profit or taken a loss during a given timeframe.

4. Cash Flow Statement

The cash flow statement tracks the money you have in the bank at any given point. It is often confused with the income statement or the profit and loss statement. They are both different types of financial statements. The income statement calculates your profits and losses while the cash flow statement shows you how much you have in the bank.

5. Balance Sheet

The balance sheet is a financial statement that provides an overview of the financial health of your business. It contains information about the assets and liabilities of your company, and owner’s or shareholders’ equity.

You can get the net worth of your company by subtracting your company’s liabilities from its assets.

6. Exit Strategy

The exit strategy refers to a probable plan for selling your business either to the public in an IPO or to another company. It is the last thing you include in the financial plan, metrics, and projection section.

You can choose to omit the exit strategy from your business plan if you plan to maintain full ownership of your business and do not plan on seeking angel investment or virtual capitalist (VC) funding.

Investors may want to know what your exit plan is. They invest in your business to get a good return on investment.

Your exit strategy does not have to include long and boring details. Ensure you identify some interested parties who may be interested in buying the company if it becomes a success.

Key Questions to Answer with Your Financial Plan, Metrics, and Projection

Your financial plan, metrics, and projection section helps investors, creditors, or your internal managers to understand what your expenses are, the amount of cash you need, and what it takes to make your company profitable. It also shows what you will be doing with any funding.

You do not need to show actual financial data if you do not have one. Adding forecasts and projections to your financial statements is added proof that your strategy is feasible and shows investors you have planned properly.

Here are some key questions to answer to help you develop this section.

• What is your sales forecast for the next year?
• When will your company achieve a positive cash flow?
• What are the core expenses you need to operate?
• How much money do you need upfront to operate or grow your company?
• How will you use the loans or investments?

9. Add an Appendix to Your Business Plan

Adding an appendix to your business plan is optional. It is a useful place to put any charts, tables, legal notes, definitions, permits, résumés, and other critical information that do not fit into other sections of your business plan.

The appendix section is where you would want to include details of a patent or patent-pending if you have one. You can always add illustrations or images of your products here. It is the last section of your business plan.

When writing your business plan, there are details you cut short or remove to prevent the entire section from becoming too lengthy. There are also details you want to include in the business plan but are not a good fit for any of the previous sections. You can add that additional information to the appendix section.

Businesses also use the appendix section to include supporting documents or other materials specially requested by investors or lenders.

You can include just about any information that supports the assumptions and statements you made in the business plan under the appendix. It is the one place in the business plan where unrelated data and information can coexist amicably.

If your appendix section is lengthy, try organizing it by adding a table of contents at the beginning of the appendix section. It is also advisable to group similar information to make it easier for the reader to access them.

A well-organized appendix section makes it easier to share your information clearly and concisely. Add footnotes throughout the rest of the business plan or make references in the plan to the documents in the appendix.

The appendix section is usually only necessary if you are seeking funding from investors or lenders, or hoping to attract partners.

People reading business plans do not want to spend time going through a heap of backup information, numbers, and charts. Keep these documents or information in the Appendix section in case the reader wants to dig deeper.

Common Items to Include in the Appendix Section of Your Business Plan

The appendix section includes documents that supplement or support the information or claims given in other sections of the business plans. Common items you can include in the appendix section include:

• Additional data about the process of manufacturing or creation
• Additional description of products or services such as product schematics
• Additional financial documents or projections
• Articles of incorporation and status
• Backup for market research or competitive analysis
• Bank statements
• Business registries
• Client testimonials (if your business is already running)
• Copies of insurances
• Credit histories (personal or/and business)
• Deeds and permits
• Equipment leases
• Examples of marketing and advertising collateral
• Industry associations and memberships
• Images of product
• Intellectual property
• Key customer contracts
• Legal documents and other contracts
• Letters of reference
• Links to references
• Market research data
• Organizational charts
• Photographs of potential facilities
• Professional licenses pertaining to your legal structure or type of business
• Purchase orders
• Resumes of the founder(s) and key managers
• State and federal identification numbers or codes
• Trademarks or patents’ registrations

Avoid using the appendix section as a place to dump any document or information you feel like adding. Only add documents or information that you support or increase the credibility of your business plan.

Tips and Strategies for Writing a Convincing Business Plan

To achieve a perfect business plan, you need to consider some key tips and strategies. These tips will raise the efficiency of your business plan above average.

1. Know Your Audience

When writing a business plan, you need to know your audience . Business owners write business plans for different reasons. Your business plan has to be specific. For example, you can write business plans to potential investors, banks, and even fellow board members of the company.

The audience you are writing to determines the structure of the business plan. As a business owner, you have to know your audience. Not everyone will be your audience. Knowing your audience will help you to narrow the scope of your business plan.

Consider what your audience wants to see in your projects, the likely questions they might ask, and what interests them.

• A business plan used to address a company's board members will center on its employment schemes, internal affairs, projects, stakeholders, etc.
• A business plan for financial institutions will talk about the size of your market and the chances for you to pay back any loans you demand.
• A business plan for investors will show proof that you can return the investment capital within a specific time. In addition, it discusses your financial projections, tractions, and market size.

2. Get Inspiration from People

Writing a business plan from scratch as an entrepreneur can be daunting. That is why you need the right inspiration to push you to write one. You can gain inspiration from the successful business plans of other businesses. Look at their business plans, the style they use, the structure of the project, etc.

To make your business plan easier to create, search companies related to your business to get an exact copy of what you need to create an effective business plan. You can also make references while citing examples in your business plans.

When drafting your business plan, get as much help from others as you possibly can. By getting inspiration from people, you can create something better than what they have.

3. Avoid Being Over Optimistic

Many business owners make use of strong adjectives to qualify their content. One of the big mistakes entrepreneurs make when preparing a business plan is promising too much.

The use of superlatives and over-optimistic claims can prepare the audience for more than you can offer. In the end, you disappoint the confidence they have in you.

In most cases, the best option is to be realistic with your claims and statistics. Most of the investors can sense a bit of incompetency from the overuse of superlatives. As a new entrepreneur, do not be tempted to over-promise to get the interests of investors.

The concept of entrepreneurship centers on risks, nothing is certain when you make future analyses. What separates the best is the ability to do careful research and work towards achieving that, not promising more than you can achieve.

To make an excellent first impression as an entrepreneur, replace superlatives with compelling data-driven content. In this way, you are more specific than someone promising a huge ROI from an investment.

4. Keep it Simple and Short

When writing business plans, ensure you keep them simple throughout. Irrespective of the purpose of the business plan, your goal is to convince the audience.

One way to achieve this goal is to make them understand your proposal. Therefore, it would be best if you avoid the use of complex grammar to express yourself. It would be a huge turn-off if the people you want to convince are not familiar with your use of words.

Another thing to note is the length of your business plan. It would be best if you made it as brief as possible.

You hardly see investors or agencies that read through an extremely long document. In that case, if your first few pages can’t convince them, then you have lost it. The more pages you write, the higher the chances of you derailing from the essential contents.

To ensure your business plan has a high conversion rate, you need to dispose of every unnecessary information. For example, if you have a strategy that you are not sure of, it would be best to leave it out of the plan.

5. Make an Outline and Follow Through

A perfect business plan must have touched every part needed to convince the audience. Business owners get easily tempted to concentrate more on their products than on other sections. Doing this can be detrimental to the efficiency of the business plan.

For example, imagine you talking about a product but omitting or providing very little information about the target audience. You will leave your clients confused.

To ensure that your business plan communicates your full business model to readers, you have to input all the necessary information in it. One of the best ways to achieve this is to design a structure and stick to it.

This structure is what guides you throughout the writing. To make your work easier, you can assign an estimated word count or page limit to every section to avoid making it too bulky for easy reading. As a guide, the necessary things your business plan must contain are:

• Table of contents
• Introduction
• Product or service description
• Target audience
• Market size
• Competition analysis
• Financial projections

Some specific businesses can include some other essential sections, but these are the key sections that must be in every business plan.

6. Ask a Professional to Proofread

When writing a business plan, you must tie all loose ends to get a perfect result. When you are done with writing, call a professional to go through the document for you. You are bound to make mistakes, and the way to correct them is to get external help.

You should get a professional in your field who can relate to every section of your business plan. It would be easier for the professional to notice the inner flaws in the document than an editor with no knowledge of your business.

In addition to getting a professional to proofread, get an editor to proofread and edit your document. The editor will help you identify grammatical errors, spelling mistakes, and inappropriate writing styles.

Writing a business plan can be daunting, but you can surmount that obstacle and get the best out of it with these tips.

Business Plan Examples and Templates That’ll Save You Tons of Time

1. hubspot's one-page business plan.

The one-page business plan template by HubSpot is the perfect guide for businesses of any size, irrespective of their business strategy. Although the template is condensed into a page, your final business plan should not be a page long! The template is designed to ask helpful questions that can help you develop your business plan.

Hubspot’s one-page business plan template is divided into nine fields:

• Business opportunity
• Company description
• Industry analysis
• Target market
• Implementation timeline
• Marketing plan
• Financial summary
• Funding required

2. Bplan’s Free Business Plan Template

Bplans' free business plan template is investor-approved. It is a rich template used by prestigious educational institutions such as Babson College and Princeton University to teach entrepreneurs how to create a business plan.

The template has six sections: the executive summary, opportunity, execution, company, financial plan, and appendix. There is a step-by-step guide for writing every little detail in the business plan. Follow the instructions each step of the way and you will create a business plan that impresses investors or lenders easily.

3. HubSpot's Downloadable Business Plan Template

HubSpot’s downloadable business plan template is a more comprehensive option compared to the one-page business template by HubSpot. This free and downloadable business plan template is designed for entrepreneurs.

The template is a comprehensive guide and checklist for business owners just starting their businesses. It tells you everything you need to fill in each section of the business plan and how to do it.

There are nine sections in this business plan template: an executive summary, company and business description, product and services line, market analysis, marketing plan, sales plan, legal notes, financial considerations, and appendix.

4. Business Plan by My Own Business Institute

My Own Business Institute (MOBI) which is a part of Santa Clara University's Center for Innovation and Entrepreneurship offers a free business plan template. You can either copy the free business template from the link provided above or download it as a Word document.

The comprehensive template consists of a whopping 15 sections.

• The Business Profile
• The Vision and the People
• Home-Based Business and Freelance Business Opportunities
• Organization
• Licenses and Permits
• Business Insurance
• Communication Tools
• Acquisitions
• Location and Leasing
• Accounting and Cash Flow
• Opening and Marketing
• Managing Employees
• Expanding and Handling Problems

There are lots of helpful tips on how to fill each section in the free business plan template by MOBI.

5. Score's Business Plan Template for Startups

Score is an American nonprofit organization that helps entrepreneurs build successful companies. This business plan template for startups by Score is available for free download. The business plan template asks a whooping 150 generic questions that help entrepreneurs from different fields to set up the perfect business plan.

The business plan template for startups contains clear instructions and worksheets, all you have to do is answer the questions and fill the worksheets.

There are nine sections in the business plan template: executive summary, company description, products and services, marketing plan, operational plan, management and organization, startup expenses and capitalization, financial plan, and appendices.

The ‘refining the plan’ resource contains instructions that help you modify your business plan to suit your specific needs, industry, and target audience. After you have completed Score’s business plan template, you can work with a SCORE mentor for expert advice in business planning.

6. Minimalist Architecture Business Plan Template by Venngage

The minimalist architecture business plan template is a simple template by Venngage that you can customize to suit your business needs .

There are five sections in the template: an executive summary, statement of problem, approach and methodology, qualifications, and schedule and benchmark. The business plan template has instructions that guide users on what to fill in each section.

7. Small Business Administration Free Business Plan Template

The Small Business Administration (SBA) offers two free business plan templates, filled with practical real-life examples that you can model to create your business plan. Both free business plan templates are written by fictional business owners: Rebecca who owns a consulting firm, and Andrew who owns a toy company.

There are five sections in the two SBA’s free business plan templates.

• Executive Summary
• Company Description
• Service Line
• Marketing and Sales

8. The $100 Startup's One-Page Business Plan

The one-page business plan by the $100 startup is a simple business plan template for entrepreneurs who do not want to create a long and complicated plan . You can include more details in the appendices for funders who want more information beyond what you can put in the one-page business plan.

There are five sections in the one-page business plan such as overview, ka-ching, hustling, success, and obstacles or challenges or open questions. You can answer all the questions using one or two sentences.

9. PandaDoc’s Free Business Plan Template

The free business plan template by PandaDoc is a comprehensive 15-page document that describes the information you should include in every section.

There are 11 sections in PandaDoc’s free business plan template.

• Executive summary
• Business description
• Products and services
• Operations plan
• Management organization
• Financial plan
• Conclusion / Call to action
• Confidentiality statement

You have to sign up for its 14-day free trial to access the template. You will find different business plan templates on PandaDoc once you sign up (including templates for general businesses and specific businesses such as bakeries, startups, restaurants, salons, hotels, and coffee shops)

PandaDoc allows you to customize its business plan templates to fit the needs of your business. After editing the template, you can send it to interested parties and track opens and views through PandaDoc.

10. Invoiceberry Templates for Word, Open Office, Excel, or PPT

InvoiceBerry is a U.K based online invoicing and tracking platform that offers free business plan templates in .docx, .odt, .xlsx, and .pptx formats for freelancers and small businesses.

Before you can download the free business plan template, it will ask you to give it your email address. After you complete the little task, it will send the download link to your inbox for you to download. It also provides a business plan checklist in .xlsx file format that ensures you add the right information to the business plan.

Alternatives to the Traditional Business Plan

A business plan is very important in mapping out how one expects their business to grow over a set number of years, particularly when they need external investment in their business. However, many investors do not have the time to watch you present your business plan. It is a long and boring read.

Luckily, there are three alternatives to the traditional business plan (the Business Model Canvas, Lean Canvas, and Startup Pitch Deck). These alternatives are less laborious and easier and quicker to present to investors.

Business Model Canvas (BMC)

The business model canvas is a business tool used to present all the important components of setting up a business, such as customers, route to market, value proposition, and finance in a single sheet. It provides a very focused blueprint that defines your business initially which you can later expand on if needed.

The sheet is divided mainly into company, industry, and consumer models that are interconnected in how they find problems and proffer solutions.

Segments of the Business Model Canvas

The business model canvas was developed by founder Alexander Osterwalder to answer important business questions. It contains nine segments.

• Key Partners: Who will be occupying important executive positions in your business? What do they bring to the table? Will there be a third party involved with the company?
• Key Activities: What important activities will production entail? What activities will be carried out to ensure the smooth running of the company?
• The Product’s Value Propositions: What does your product do? How will it be different from other products?
• Customer Segments: What demography of consumers are you targeting? What are the habits of these consumers? Who are the MVPs of your target consumers?
• Customer Relationships: How will the team support and work with its customer base? How do you intend to build and maintain trust with the customer?
• Key Resources: What type of personnel and tools will be needed? What size of the budget will they need access to?
• Channels: How do you plan to create awareness of your products? How do you intend to transport your product to the customer?
• Cost Structure: What is the estimated cost of production? How much will distribution cost?
• Revenue Streams: For what value are customers willing to pay? How do they prefer to pay for the product? Are there any external revenues attached apart from the main source? How do the revenue streams contribute to the overall revenue?

Lean Canvas

The lean canvas is a problem-oriented alternative to the standard business model canvas. It was proposed by Ash Maurya, creator of Lean Stack as a development of the business model generation. It uses a more problem-focused approach and it majorly targets entrepreneurs and startup businesses.

Lean Canvas uses the same 9 blocks concept as the business model canvas, however, they have been modified slightly to suit the needs and purpose of a small startup. The key partners, key activities, customer relationships, and key resources are replaced by new segments which are:

• Problem: Simple and straightforward number of problems you have identified, ideally three.
• Solution: The solutions to each problem.
• Unfair Advantage: Something you possess that can't be easily bought or replicated.
• Key Metrics: Important numbers that will tell how your business is doing.

Startup Pitch Deck

While the business model canvas compresses into a factual sheet, startup pitch decks expand flamboyantly.

Pitch decks, through slides, convey your business plan, often through graphs and images used to emphasize estimations and observations in your presentation. Entrepreneurs often use pitch decks to fully convince their target audience of their plans before discussing funding arrangements.

Considering the likelihood of it being used in a small time frame, a good startup pitch deck should ideally contain 20 slides or less to have enough time to answer questions from the audience.

Unlike the standard and lean business model canvases, a pitch deck doesn't have a set template on how to present your business plan but there are still important components to it. These components often mirror those of the business model canvas except that they are in slide form and contain more details.

Using Airbnb (one of the most successful start-ups in recent history) for reference, the important components of a good slide are listed below.

• Cover/Introduction Slide: Here, you should include your company's name and mission statement. Your mission statement should be a very catchy tagline. Also, include personal information and contact details to provide an easy link for potential investors.
• Problem Slide: This slide requires you to create a connection with the audience or the investor that you are pitching. For example in their pitch, Airbnb summarized the most important problems it would solve in three brief points – pricing of hotels, disconnection from city culture, and connection problems for local bookings.
• Solution Slide: This slide includes your core value proposition. List simple and direct solutions to the problems you have mentioned
• Customer Analysis: Here you will provide information on the customers you will be offering your service to. The identity of your customers plays an important part in fundraising as well as the long-run viability of the business.
• Market Validation: Use competitive analysis to show numbers that prove the presence of a market for your product, industry behavior in the present and the long run, as well as the percentage of the market you aim to attract. It shows that you understand your competitors and customers and convinces investors of the opportunities presented in the market.
• Business Model: Your business model is the hook of your presentation. It may vary in complexity but it should generally include a pricing system informed by your market analysis. The goal of the slide is to confirm your business model is easy to implement.
• Marketing Strategy: This slide should summarize a few customer acquisition methods that you plan to use to grow the business.
• Competitive Advantage: What this slide will do is provide information on what will set you apart and make you a more attractive option to customers. It could be the possession of technology that is not widely known in the market.
• Team Slide: Here you will give a brief description of your team. Include your key management personnel here and their specific roles in the company. Include their educational background, job history, and skillsets. Also, talk about their accomplishments in their careers so far to build investors' confidence in members of your team.
• Traction Slide: This validates the company’s business model by showing growth through early sales and support. The slide aims to reduce any lingering fears in potential investors by showing realistic periodic milestones and profit margins. It can include current sales, growth, valuable customers, pre-orders, or data from surveys outlining current consumer interest.
• Funding Slide: This slide is popularly referred to as ‘the ask'. Here you will include important details like how much is needed to get your business off the ground and how the funding will be spent to help the company reach its goals.
• Appendix Slides: Your pitch deck appendix should always be included alongside a standard pitch presentation. It consists of additional slides you could not show in the pitch deck but you need to complement your presentation.

It is important to support your calculations with pictorial renditions. Infographics, such as pie charts or bar graphs, will be more effective in presenting the information than just listing numbers. For example, a six-month graph that shows rising profit margins will easily look more impressive than merely writing it.

Lastly, since a pitch deck is primarily used to secure meetings and you may be sharing your pitch with several investors, it is advisable to keep a separate public version that doesn't include financials. Only disclose the one with projections once you have secured a link with an investor.

Advantages of the Business Model Canvas, Lean Canvas, and Startup Pitch Deck over the Traditional Business Plan

• Time-Saving: Writing a detailed traditional business plan could take weeks or months. On the other hand, all three alternatives can be done in a few days or even one night of brainstorming if you have a comprehensive understanding of your business.
• Easier to Understand: Since the information presented is almost entirely factual, it puts focus on what is most important in running the business. They cut away the excess pages of fillers in a traditional business plan and allow investors to see what is driving the business and what is getting in the way.
• Easy to Update: Businesses typically present their business plans to many potential investors before they secure funding. What this means is that you may regularly have to amend your presentation to update statistics or adjust to audience-specific needs. For a traditional business plan, this could mean rewriting a whole section of your plan. For the three alternatives, updating is much easier because they are not voluminous.
• Guide for a More In-depth Business Plan: All three alternatives have the added benefit of being able to double as a sketch of your business plan if the need to create one arises in the future.

Business Plan FAQ

Business plans are important for any entrepreneur who is looking for a framework to run their company over some time or seeking external support. Although they are essential for new businesses, every company should ideally have a business plan to track their growth from time to time.  They can be used by startups seeking investments or loans to convey their business ideas or an employee to convince his boss of the feasibility of starting a new project. They can also be used by companies seeking to recruit high-profile employee targets into key positions or trying to secure partnerships with other firms.

Business plans often vary depending on your target audience, the scope, and the goals for the plan. Startup plans are the most common among the different types of business plans.  A start-up plan is used by a new business to present all the necessary information to help get the business up and running. They are usually used by entrepreneurs who are seeking funding from investors or bank loans. The established company alternative to a start-up plan is a feasibility plan. A feasibility plan is often used by an established company looking for new business opportunities. They are used to show the upsides of creating a new product for a consumer base. Because the audience is usually company people, it requires less company analysis. The third type of business plan is the lean business plan. A lean business plan is a brief, straight-to-the-point breakdown of your ideas and analysis for your business. It does not contain details of your proposal and can be written on one page. Finally, you have the what-if plan. As it implies, a what-if plan is a preparation for the worst-case scenario. You must always be prepared for the possibility of your original plan being rejected. A good what-if plan will serve as a good plan B to the original.

A good business plan has 10 key components. They include an executive plan, product analysis, desired customer base, company analysis, industry analysis, marketing strategy, sales strategy, financial projection, funding, and appendix. Executive Plan Your business should begin with your executive plan. An executive plan will provide early insight into what you are planning to achieve with your business. It should include your mission statement and highlight some of the important points which you will explain later. Product Analysis The next component of your business plan is your product analysis. A key part of this section is explaining the type of item or service you are going to offer as well as the market problems your product will solve. Desired Consumer Base Your product analysis should be supplemented with a detailed breakdown of your desired consumer base. Investors are always interested in knowing the economic power of your market as well as potential MVP customers. Company Analysis The next component of your business plan is your company analysis. Here, you explain how you want to run your business. It will include your operational strategy, an insight into the workforce needed to keep the company running, and important executive positions. It will also provide a calculation of expected operational costs.  Industry Analysis A good business plan should also contain well laid out industry analysis. It is important to convince potential investors you know the companies you will be competing with, as well as your plans to gain an edge on the competition. Marketing Strategy Your business plan should also include your marketing strategy. This is how you intend to spread awareness of your product. It should include a detailed explanation of the company brand as well as your advertising methods. Sales Strategy Your sales strategy comes after the market strategy. Here you give an overview of your company's pricing strategy and how you aim to maximize profits. You can also explain how your prices will adapt to market behaviors. Financial Projection The financial projection is the next component of your business plan. It explains your company's expected running cost and revenue earned during the tenure of the business plan. Financial projection gives a clear idea of how your company will develop in the future. Funding The next component of your business plan is funding. You have to detail how much external investment you need to get your business idea off the ground here. Appendix The last component of your plan is the appendix. This is where you put licenses, graphs, or key information that does not fit in any of the other components.

The business model canvas is a business management tool used to quickly define your business idea and model. It is often used when investors need you to pitch your business idea during a brief window.

A pitch deck is similar to a business model canvas except that it makes use of slides in its presentation. A pitch is not primarily used to secure funding, rather its main purpose is to entice potential investors by selling a very optimistic outlook on the business.

Business plan competitions help you evaluate the strength of your business plan. By participating in business plan competitions, you are improving your experience. The experience provides you with a degree of validation while practicing important skills. The main motivation for entering into the competitions is often to secure funding by finishing in podium positions. There is also the chance that you may catch the eye of a casual observer outside of the competition. These competitions also provide good networking opportunities. You could meet mentors who will take a keen interest in guiding you in your business journey. You also have the opportunity to meet other entrepreneurs whose ideas can complement yours.

Exlore Further

• 12 Key Elements of a Business Plan (Top Components Explained)
• 13 Sources of Business Finance For Companies & Sole Traders
• 5 Common Types of Business Structures (+ Pros & Cons)
• How to Buy a Business in 8 Steps (+ Due Diligence Checklist)

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Martin luenendonk.

Martin loves entrepreneurship and has helped dozens of entrepreneurs by validating the business idea, finding scalable customer acquisition channels, and building a data-driven organization. During his time working in investment banking, tech startups, and industry-leading companies he gained extensive knowledge in using different software tools to optimize business processes.

This insights and his love for researching SaaS products enables him to provide in-depth, fact-based software reviews to enable software buyers make better decisions.

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Why A Thoughtful Business Plan Is Essential For Success

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Starting a business is an exciting journey, full of opportunities and challenges. For women entrepreneurs, particularly those transitioning from corporate life to entrepreneurship, the path can feel daunting. But with the right roadmap (a well-thought-out business plan), you can navigate the uncertainties and set your business up for success.

A business plan is more than just a document; it's your blueprint for building and growing your business. It outlines your goals, strategies, and the steps you need to take to achieve them. A strong business plan not only guides your decisions but also communicates your vision to potential investors, partners, and employees.

Here’s why a business plan is crucial and how you can create one that will steer your business toward success.

The Importance of a Well-Thought-Out Business Plan

1. clarifies your vision and objectives.

As you build out your business plan it forces you to think deeply about your business idea and if it’s a viable idea. What exactly are you trying to achieve? What are your short-term and long-term goals? By putting these thoughts on paper, you create a clear vision that will guide every decision you make.

2. Helps You Understand Your Market

Researching and writing a business plan requires you to analyze your market. Who are your competitors? Who is your target audience? What are the market trends? This understanding helps you position your business strategically and identify opportunities for growth.

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Viral ‘chase bank glitch’ isn’t the hack people thought it was, directv blacks out espn, abc, and other disney channels, 3. defines your strategy.

A business plan includes your marketing strategy, sales approach, and operational plan and outlines how you will achieve objectives. This strategic framework ensures that your efforts are aligned and focused on achieving your goals.

4. Secures Funding

If you need financial support to start or grow your business, a well-prepared business plan is essential. Investors and lenders want to see a clear plan for how you will generate revenue and repay any loans. A business plan that demonstrates a thorough understanding of your industry and a solid strategy is more likely to attract funding.

5. Guides Your Decision-Making

A business plan serves as a reference point, helping you make informed decisions that align with your long-term goals. By consistently referring to your business plan, you ensure that every decision contributes to the overarching vision and objectives of your business, ultimately driving growth and success.

6. Tracks Your Progress

A business plan includes milestones and key performance indicators (KPIs) that allow you to track your progress. Regularly reviewing your business plan helps you stay on course, adjust your strategies as needed, and celebrate your successes.

The bottom line is that creating a business plan is a crucial step in turning your entrepreneurial dreams into reality. It’s your roadmap, guiding you through the complexities of starting and growing a business. For women entrepreneurs, especially those transitioning from a corporate career, a well-thought-out business plan can provide the clarity, confidence, and direction needed to succeed. Take the time to craft a business plan that reflects your vision and sets the foundation for a thriving, profitable business.

Melissa Houston, CPA is the author of Cash Confident: An Entrepreneur’s Guide to Creating a Profitable Business and the founder of She Means Profit . As a Business Strategist for small business owners, Melissa helps women making mid-career shifts, to launch their dream businesses, and also guides established business owners to grow their businesses to more profitably.

The opinions expressed in this article are not intended to replace any professional or expert accounting and/or tax advice whatsoever.

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Bank Business Plan Template

Written by Dave Lavinsky

Bank Business Plan

Over the past 20+ years, we have helped over 500 entrepreneurs and business owners create business plans to start and grow their banks.

If you’re unfamiliar with creating a bank business plan, you may think creating one will be a time-consuming and frustrating process. For most entrepreneurs it is, but for you, it won’t be since we’re here to help. We have the experience, resources, and knowledge to help you create a great business plan.

In this article, you will learn some background information on why business planning is important. Then, you will learn how to write a bank business plan step-by-step so you can create your plan today.

Download our Ultimate Business Plan Template here >

What Is a Bank Business Plan?

A business plan provides a snapshot of your bank as it stands today, and lays out your growth plan for the next five years. It explains your business goals and your strategies for reaching them. It also includes market research to support your plans.

Why You Need a Business Plan for Your Bank Business

If you’re looking to start a bank or grow your existing bank, you need a business plan. A business plan will help you raise funding, if needed, and plan out the growth of your bank to improve your chances of success. Your bank business plan is a living document that should be updated annually as your company grows and changes.

Sources of Funding for Banks

With regards to funding, the main sources of funding for a bank are personal savings, credit cards, bank loans, and angel investors. When it comes to bank loans, banks will want to review your business plan and gain confidence that you will be able to repay your loan and interest. To acquire this confidence, the loan officer will not only want to ensure that your financials are reasonable, but they will also want to see a professional plan. Such a plan will give them the confidence that you can successfully and professionally operate a business. Personal savings and bank loans are the most common funding paths for banks.  

Finish Your Business Plan Today!

How to write a business plan for a bank.

If you want to start a bank or expand your current one, you need a business plan. The guide below details the necessary information for how to write each essential component of your bank business plan.

Executive Summary

Your executive summary provides an introduction to your business plan, but it is normally the last section you write because it provides a summary of each key section of your plan.

The goal of your executive summary is to quickly engage the reader. Explain to them the kind of bank you are running and the status. For example, are you a startup, do you have a bank that you would like to grow, or are you operating a chain of banks?

Next, provide an overview of each of the subsequent sections of your plan.

• Give a brief overview of the bank industry.
• Discuss the type of bank you are operating.
• Detail your direct competitors. Give an overview of your target customers.
• Provide a snapshot of your marketing strategy. Identify the key members of your team.
• Offer an overview of your financial plan.

Company Overview

In your company overview, you will detail the type of bank you are operating.

For example, you might specialize in one of the following types of banks:

• Commercial bank : this type of bank tends to concentrate on supporting businesses. Both large corporations and small businesses can turn to commercial banks if they need to open a checking or savings account, borrow money, obtain access to credit or transfer funds to companies in foreign markets.
• Credit union: this type of bank operates much like a traditional bank (issues loans, provides checking and savings accounts, etc.) but banks are for-profit whereas credit unions are not. Credit unions fall under the direction of their own members. They tend to serve people affiliated with a particular group, such as people living in the same area, low-income members of a community or armed service members. They also tend to charge lower fees and offer lower loan rates.
• Retail bank: retail banks can be traditional, brick-and-mortar brands that customers can access in-person, online, or through their mobile phones. They also offer general public financial products and services such as bank accounts, loans, credit cards, and insurance.
• Investment bank: this type of bank manages the trading of stocks, bonds, and other securities between companies and investors. They also advise individuals and corporations who need financial guidance, reorganize companies through mergers and acquisitions, manage investment portfolios or raise money for certain businesses and the federal government.

In addition to explaining the type of bank you will operate, the company overview needs to provide background on the business.

Include answers to questions such as:

• When and why did you start the business?
• What milestones have you achieved to date? Milestones could include the number of clients served, the number of clients with positive reviews, reaching X number of clients served, etc.
• Your legal business Are you incorporated as an S-Corp? An LLC? A sole proprietorship? Explain your legal structure here.

Industry Analysis

In your industry or market analysis, you need to provide an overview of the bank industry.

While this may seem unnecessary, it serves multiple purposes.

First, researching the bank industry educates you. It helps you understand the market in which you are operating.

Secondly, market research can improve your marketing strategy, particularly if your analysis identifies market trends.

The third reason is to prove to readers that you are an expert in your industry. By conducting the research and presenting it in your plan, you achieve just that.

The following questions should be answered in the industry analysis section of your bank business plan:

• How big is the bank industry (in dollars)?
• Is the market declining or increasing?
• Who are the key competitors in the market?
• Who are the key suppliers in the market?
• What trends are affecting the industry?
• What is the industry’s growth forecast over the next 5 – 10 years?
• What is the relevant market size? That is, how big is the potential target market for your bank? You can extrapolate such a figure by assessing the size of the market in the entire country and then applying that figure to your local population.

Customer Analysis

The customer analysis section of your bank business plan must detail the customers you serve and/or expect to serve.

The following are examples of customer segments: individuals, small businesses, families, and corporations.

As you can imagine, the customer segment(s) you choose will have a great impact on the type of bank you operate. Clearly, corporations would respond to different marketing promotions than individuals, for example.

Try to break out your target customers in terms of their demographic and psychographic profiles. With regards to demographics, including a discussion of the ages, genders, locations, and income levels of the potential customers you seek to serve.

Psychographic profiles explain the wants and needs of your target customers. The more you can recognize and define these needs, the better you will do in attracting and retaining your customers.

Finish Your Bank Business Plan in 1 Day!

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With Growthink’s Ultimate Business Plan Template you can finish your plan in just 8 hours or less!

Competitive Analysis

Your competitive analysis should identify the indirect and direct competitors your business faces and then focus on the latter.

Direct competitors are other banks.

Indirect competitors are other options that customers have to purchase from that aren’t directly competing with your product or service. This includes trust accounts, investment companies, or the stock market. You need to mention such competition as well.

For each such competitor, provide an overview of their business and document their strengths and weaknesses. Unless you once worked at your competitors’ businesses, it will be impossible to know everything about them. But you should be able to find out key things about them such as

• What types of customers do they serve?
• What type of bank are they?
• What is their pricing (premium, low, etc.)?
• What are they good at?
• What are their weaknesses?

With regards to the last two questions, think about your answers from the customers’ perspective. And don’t be afraid to ask your competitors’ customers what they like most and least about them.

The final part of your competitive analysis section is to document your areas of competitive advantage. For example:

• Will you provide loans and retirement savings accounts?
• Will you offer products or services that your competition doesn’t?
• Will you provide better customer service?
• Will you offer better pricing?

Think about ways you will outperform your competition and document them in this section of your plan.  

Marketing Plan

Traditionally, a marketing plan includes the four P’s: Product, Price, Place, and Promotion. For a bank business plan, your marketing strategy should include the following:

Product : In the product section, you should reiterate the type of bank company that you documented in your company overview. Then, detail the specific products or services you will be offering. For example, will you provide savings accounts, auto loans, mortgage loans, or financial advice?

Price : Document the prices you will offer and how they compare to your competitors. Essentially in the product and price sub-sections of your plan, you are presenting the products and/or services you offer and their prices.

Place : Place refers to the site of your bank. Document where your company is situated and mention how the site will impact your success. For example, is your bank located in a busy retail district, a business district, a standalone office, or purely online? Discuss how your site might be the ideal location for your customers.

Promotions : The final part of your bank marketing plan is where you will document how you will drive potential customers to your location(s). The following are some promotional methods you might consider:

• Advertise in local papers, radio stations and/or magazines
• Reach out to websites
• Distribute flyers
• Engage in email marketing
• Advertise on social media platforms
• Improve the SEO (search engine optimization) on your website for targeted keywords

Operations Plan

While the earlier sections of your business plan explained your goals, your operations plan describes how you will meet them. Your operations plan should have two distinct sections as follows.

Everyday short-term processes include all of the tasks involved in running your bank, including reconciling accounts, customer service, accounting, etc.

Long-term goals are the milestones you hope to achieve. These could include the dates when you expect to sign up your Xth customer, or when you hope to reach $X in revenue. It could also be when you expect to expand your bank to a new city.  

Management Team

To demonstrate your bank’s potential to succeed, a strong management team is essential. Highlight your key players’ backgrounds, emphasizing those skills and experiences that prove their ability to grow a company.

Ideally, you and/or your team members have direct experience in managing banks. If so, highlight this experience and expertise. But also highlight any experience that you think will help your business succeed.

If your team is lacking, consider assembling an advisory board. An advisory board would include 2 to 8 individuals who would act as mentors to your business. They would help answer questions and provide strategic guidance. If needed, look for advisory board members with experience in managing a bank or successfully running a small financial advisory firm.  

Financial Plan

Your financial plan should include your 5-year financial statement broken out both monthly or quarterly for the first year and then annually. Your financial statements include your income statement, balance sheet, and cash flow statements.

Income Statement

An income statement is more commonly called a Profit and Loss statement or P&L. It shows your revenue and then subtracts your costs to show whether you turned a profit or not.

In developing your income statement, you need to devise assumptions. For example, will you see 5 clients per day, and/or offer sign up bonuses? And will sales grow by 2% or 10% per year? As you can imagine, your choice of assumptions will greatly impact the financial forecasts for your business. As much as possible, conduct research to try to root your assumptions in reality.

Balance Sheets

Balance sheets show your assets and liabilities. While balance sheets can include much information, try to simplify them to the key items you need to know about. For instance, if you spend $50,000 on building out your bank, this will not give you immediate profits. Rather it is an asset that will hopefully help you generate profits for years to come. Likewise, if a lender writes you a check for $50,000, you don’t need to pay it back immediately. Rather, that is a liability you will pay back over time.

Cash Flow Statement

Your cash flow statement will help determine how much money you need to start or grow your business, and ensure you never run out of money. What most entrepreneurs and business owners don’t realize is that you can turn a profit but run out of money and go bankrupt.

When creating your Income Statement and Balance Sheets be sure to include several of the key costs needed in starting or growing a bank:

• Cost of furniture and office supplies
• Payroll or salaries paid to staff
• Business insurance
• Other start-up expenses (if you’re a new business) like legal expenses, permits, computer software, and equipment

Attach your full financial projections in the appendix of your plan along with any supporting documents that make your plan more compelling. For example, you might include your bank location lease or a list of accounts and loans you plan to offer.  

Writing a business plan for your bank is a worthwhile endeavor. If you follow the template above, by the time you are done, you will truly be an expert. You will understand the bank industry, your competition, and your customers. You will develop a marketing strategy and will understand what it takes to launch and grow a successful bank.

Don’t you wish there was a faster, easier way to finish your Bank business plan?

OR, Let Us Develop Your Plan For You

Since 1999, Growthink has developed business plans for thousands of companies who have gone on to achieve tremendous success.   Click here to see how a Growthink business plan consultant can create your business plan for you.

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Bursa Malaysia suspends IDSS for Kenanga Investment Bank

Thursday, 29 Aug 2024

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In a filing today, the exchange said the suspension was triggered after the investment bank's share price fell by more than 15 per cent, or 15 sen, from the reference price.

It said the short-selling for Kenanga Investment Bank under IDSS will resume on Friday, Aug 30, at 8.30 am.

As of 2.30 pm, Kenanga Investment Bank’s shares had fallen 15.25 per cent to RM1.00 from the previous day’s close of RM1.18, with 1.25 million shares changing hands. - Bernama

Tags / Keywords: Bursa Malaysia , IDSS , Kenanga Investment , suspension , short selling

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