Free Broker Dealer Business Plan
For Raising Capital from Investors, Banks, or Grant Companies!
Please note that the financials
in this complete free business plan are completely fictitious and may not
match the text of the business plan below. This free business plan demonstration
purposes only. If you are interested in purchasing the completed editable MS Word
and Excel documents for this business plan, please click the button below! Also,
the text of the business plan is formatted with a fully automated
table of contents.
It should be noted that there is no special software required to use these
templates. All business plans come in Microsoft Word and Microsoft Excel format.
Each business plan features:
- Excecutive Summary
- Company and Financing Summary
- Products and Services Overview
- Strategic Analysis with current research!
- Marketing Plan
- Personnel Plan
- 3 Year Advanced Financial Plan
- Expanded Financial Plan with Monthly Financials
- FREE 30 Page Sample Private Placement Memorandum
- FREE PowerPoint Presentation for Banks, Investors,
or Grant Companies!
1.0 Executive Summary
The purpose of this business plan is to raise $100,000 for the development of a broker dealer while showcasing the expected financials and operations over the next three years. Broker Dealer, Inc. (“the Company”) is a New York based corporation that will provide brokering of stocks and other financial instruments as well as financial advice within the Company’s targeted market of New York. The Company was founded by John Doe.
1.1 Products and Services
The Broker Dealer’s primary revenue center will come from the ongoing trades and orders placed for stocks, options, and other investment instruments on behalf of its client base. The business will earn approximately $7 to $9 per trade placed by a client. The business will also earn ongoing revenues from advisory fees based on the size of accounts maintained by clients. On a per annum basis, the business will charge an amount equal to 1% of assets under management. The third section of the business plan will further describe the services offered by the Private Placement Broker, Inc.
1.2 The Financing
Mr. Doe is seeking to raise $100,000 from as a private investment. The business is seeking to sell a 45% interest in the business in exchange for the requisite capital sought in this business plan. The investor will also receive a seat on the board of directors and a regular stream of dividends.
1.3 Mission Statement
Broker Dealer, Inc.’s mission is to develop a business that provides outstanding execution for trades while concurrently providing insightful financial advice to its clients throughout the New York metropolitan area.
1.4 Mangement Team
The Company was founded by John Doe. Mr. Doe has more than 10 years of experience in the stock brokering and investment advisory industry. Through his expertise, he will be able to bring the operations of the business to profitability within its first year of operations.
1.5 Sales Forecasts
Mr. Doe expects a strong rate of growth at the start of operations. Below are the expected financials over the next three years.
1.6 Expansion Plan
The Founder expects that the business will aggressively expand during the first three years of operation. Mr. Doe intends to implement marketing campaigns that will effectively target individuals that are in need of specialized trading accounts, IRAs, and general investment advice in addition to providing broker dealer services.
2.0 Company and Financing Summary
2.1 Registered Name and Corporate Structure
Broker Dealer, Inc. The Company is registered as a corporation in the State of New York.
2.2 Required Funds
At this time, the Broker Dealer requires $100,000 of equity funds. Below is a breakdown of how these funds will be used:
2.3 Investor Equity
Mr. Doe is seeking to sell a 45% equity interest in the business in exchange for the capital required in order to launch the operations of the Broker Dealer.
2.4 Management Equity
John Doe owns 100% of the Broker Dealer, Inc. This capital structure will change once the requisite capital has been raised.
2.5 Exit Strategy
If the business is very successful, Mr. Doe may seek to sell the business to a third party for a significant earnings multiple. Most likely, the Company will hire a qualified investment bank to sell the business on behalf of the Broker Dealer. Based on historical numbers, the business could fetch a sales premium of up to 4 times earnings.
3.0 Products and Services
Below is a description of the investment and stock brokering services offered by the Broker Dealer.
3.1 Stock Brokering Services
As discussed in the executive summary, the primary revenue center for the business will come from the ongoing placing of orders for stocks and options purchases on behalf of clients that hold accounts with the Broker Dealer. On each trade, the business will generate approximately $7 to $9 of revenue. However, these fees may be higher if the trade is specific for options or a large order of securities. Mr. Doe is currently acquiring all of the appropriate licensure so that the business can act in a multifaceted capacity when it comes to placing stock trades, mutual fund purchases, and options trades on behalf of its clients.
3.2 Investment Advisory Services
The Broker Dealer’s secondary revenue center will come from the ongoing advisory services provided to clients that are seeking to effectively have a well balanced portfolio that mitigates risk and provides above market average returns for its investors. The business will charge a yearly fee equal to 1% of the total assets under management for each client enrolled in the Company’s investment advisory and broker dealer programs.
4.0 Strategic and Market Analysis
4.1 Economic Outlook
This section of the analysis will detail the economic climate, the Broker Dealer industry, the customer profile, and the competition that the business will face as it progresses through its business operations. At this time, the economy is coming out of its recession. The job market has improved, and businesses are beginning to make investments into expansion. As such, the demand among companies that are seeking capital to expand its immense. The Broker Dealer will be able to remain profitable and cash flow positive at all times given the highly recurring streams of revenue generated from the Company’s investment advisory services.
4.2 Industry Analysis
Within the United States, there are approximately 30,000 businesses that are registered as broker dealer with the Securities and Exchange Commission. The industry employs approximately 350,000 people. In each of the last five years, annual revenues among broker dealers has exceeded $107 billion while annual payrolls have reached an all time high of $50 billion. This is a mature industry, and the expected future growth rate is expected to remain in line with the United States economy in general.
4.3 Customer Profile
The Broker Dealer’s average client will be a company that is seeking to raise startup or expansion capital. Below is an overview of the demographics anticipated by the Company: • Is based in the New York metropolitan area. • Has $100,000 to $1,000,000 if investment capital. • Will spend $1,000 to $10,000 on Broker Dealer Services on a yearly basis including fees related to asset management.
4.4 Competitive Analysis
This is one of the sections of the business plan that you must write completely on your own. The key to writing a strong competitive analysis is that you do your research on the local competition. Find out who your competitors are by searching online directories and searching in your local Yellow Pages. If there are a number of competitors in the same industry (meaning that it is not feasible to describe each one) then showcase the number of businesses that compete with you, and why your business will provide customers with service/products that are of better quality or less expensive than your competition.
5.0 Marketing Plan
The Broker Dealer intends to maintain an extensive marketing campaign that will ensure maximum visibility for the business in its targeted market. Below is an overview of the marketing strategies and objectives of the Broker Dealer.
5.1 Marketing Objectives
• Maintain a strong database of registered representatives that can assist the business with exponential growth over the next three years of operation.
• Develop a broad range website that showcases the licensure and stock brokering, options brokering, and mutual fund sales available through the Broker Dealer.
• Establish relationships with area investment banks, other stock brokerages, and private investors.
5.2 Marketing Strategies
Mr. Doe intends on using a number of strategies that will aggressively showcase the Broker Dealer services and Investment Advisory services available through Broker Dealer, Inc. These advertisements will focus on the local New York metropolitan market. The marketing messages to be used by the business will focus on the experience of the Company’s principals and Founders while concurrently showcasing the low cost associated with using Broker Dealer, Inc. for investment purposes. The business will also develop a highly informative website that shows the operations of the business, its past track record, and how an individual or business can become a client of Broker Dealer, Inc. This website will also feature specialized login features so that individuals can see their account balances on a real time basis. This website will also allow individuals to place trades with the Broker Dealer in an online basis.
In this section, describe the pricing of your services and products. You should provide as much information as possible about your pricing as possible in this section. However, if you have hundreds of items, condense your product list categorically. This section of the business plan should not span more than 1 page.
6.0 Organizational Plan and Personnel Summary
6.1 Corporate Organization
6.2 Organizational Budget
6.3 Management Biographies
In this section of the business plan, you should write a two to four paragraph biography
about your work experience, your education, and your skill set. For each owner or
key employee, you should provide a brief biography in this section.
7.0 Financial Plan
7.1 Underlying Assumptions
• Broker Dealer will have an annual revenue growth rate of 16% per year.
• Management will acquire $100,000 of investor funds to launch the operations of the Broker Dealer.
• Management will settle most short term payables on a monthly basis.
7.2 Sensitivity Analysis
In the event of an economic downturn, the business may have a decline in its revenues. However, the business will generate highly recurring streams of revenue from the ongoing sales of securities coupled with investment advisory services on an ongoing basis. This will ensure that the Broker Dealer remains profitable and cash flow positive at all times.
7.3 Source of Funds
7.4 General Assumptions
7.5 Profit and Loss Statements
7.6 Cash Flow Analysis
7.7 Balance Sheet
7.8 General Assumptions
7.9 Business Ratios
Expanded Profit and Loss Statements
Expanded Cash Flow Analysis