Free Investing Club 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 $550,000 for the development of an
investment club while showcasing the expected financials and operations over the
next three years. Investment Club, Inc. (“the Company”) is a
New York based
corporation that will provide investments into marketable securities along with
other members of the investment club. The Company was founded by John Doe.
1.1 Products and Services
The Investing Club will specialize in working with its members to provide strong
investments into marketable securities that are freely traded among the major
exchanges. The Investing Club will maintain an aggregate account portfolio of
The Investing Club, from time to time, will make divestitures of these investments as
they become profitable and will produce tax friendly returns for people that are
vested in the club. Management is currently working with an attorney to
determine the most appropriate structure of the club.
The third section of the business plan will further describe the services offered by the
1.2 The Financing
Mr. Doe is seeking to raise $550,000 from a number of investors via a specialized
offering that will be used to make investments into third party companies that
are traded on the major exchanges.. Primarily the financing will be used for the
Again, an attorney has been retained in order to make sure that the structure of the
Investing Club is in line with SEC regulations.
1.3 Mission Statement
The Investing Club’s mission is to provide its members with group based
financial advice so that appropriate long term investments can be made. The
Investing Club, at all times, will make sure that the marketing and investment
strategies used by the organization are in line with SEC regulations
1.4 Mangement Team
The Company was founded by John Doe. Mr. Doe has more than 10 years of experience in the
investing club industry. Through his expertise, he will be able to bring
the operations of the business to profitability within its first year of
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 investors that want to be part of an investing club.
2.0 Company and Financing Summary
2.1 Registered Name and Corporate Structure
Investing Club, Inc. The
business is registered as a for profit company in the State of
2.2 Required Funds
At this time, the Investing
Club requires $550,000 of investment funds. Below is a breakdown of how these
funds will be used:
2.3 Investor Equity
This will be discussed during
negotiations among members.
2.4 Management Equity
This will be further discussed
in the Company’s investment offering.
2.5 Exit Strategy
This will be discussed during
negotiations among members.
3.0 Products and Services
As stated in the executive
summary, the Investing Club will focus heavily on working with its members to
engage in marketing securities trading and investing so that an ongoing amount
of income is produced from dividends and capital appreciation. At this time, the
structure of the Investment Club is being formulated so that all rules and
regulations regarding aggregated fund investments are made in accordance with
all applicable state and federal securities laws. The Investment Club will stay
away from making illiquid investments into small businesses of which there is no
secondary market from which to trade shares.
4.0 Strategic and Market Analysis
4.1 Economic Outlook
This section of the analysis will detail the economic climate, the investing club industry, the
customer profile, and the competition that the business will face as it
progresses through its business operations.
Currently, the economic market condition in the United States
is moderate. Unemployment rates have declined while asset prices have increased
substantially. However, the Investing Club will be able to remain profitable
despite the current economic climate as the club intends only to make
investments into organizations that have an extensive operating history and
companies that provide substantial dividends.
4.2 Industry Analysis
According to the US Economic
Census, there are approximately 7,000 investment clubs within the
United States. The industry, from profits and
capital appreciation, generates $12 billion per year and provides jobs to more
than 35,000 people. Annual payrolls are approximately $4 billion per year.
Investment Clubs fall under the industry category of miscellaneous
Due to the continually changing
nature of SEC regulations, Investment Clubs may need to alter their structures
as many scandals lately have tightened regulations regarding aggregated funding
pools that invest in marketable securities.
4.3 Customer Profile
The Investing Club will not
directly have customers. After an attorney determines the appropriate structure
of the club, Management will solicit people to become members of the Investment
Club. Below is a profile of individuals that are expected to become members of
Lives within 15 miles of the
Has $5,000 to $50,000 to invest
with the club.
Annual household income of
Has a strong interest in
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
Investment Club intends to
develop a marketing campaign that will attract both investors and potential
investment companies to the brand name of the firm. Below is an overview of
5.1 Marketing Objectives
Develop relationships with financial planners throughout the
Develop a strong presence among other investment clubs that will work with the
firm on an ongoing basis.
Remain within the letter of law regarding the advertisements and marketing
campaigns carried out by the Investing Club.
5.2 Marketing Strategies
Marketing for the Investing
Club will be limited as there are limits as to what can be printed when it comes
to private investment clubs. However, with the assistance of the Company’s law
firm, the business will become prominent in industry circulations that focus on
aggregated pools of investments by non-accredited investors.
The Investment Club will also
maintain an interactive website that showcases the operations of the firm, its
principals, its investments, and the site will feature a login system where
investors can view their accounts and other information that is limited to
members of the club.
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.more than 1 page.o:p>
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.
77.0 Financial Plan
7.1 Underlying Assumptions
The Company has based its
proforma financial statements on the following:
The Investing Club will have an
annual revenue growth rate of 16% per year.
The Founder will acquire
$550,000 of equity funds.
The business will generate
annual returns of approximately 10% compounded in unrealized gains.
7.2 Sensitivity Analysis
As the Investing Club will have
many investments, economic risks will be spread out among a number of publicly
traded businesses. As such, any type of economic recession will not have an
impact on the Company’s profitability or cash flow.
7.3 Source of Funds /b>
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