Free Trade Association 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 $250,000 for the development of a trade
association and organization while showcasing the expected financials and
operations over the next three years. The Trade Association, Inc. (“the
Foundation”) is a New York
based 501(c)(3) corporation that will provide for the furtherance of the
Foundation’s targeted industry in order to further promote business and
relationships among its members. The trade association will distribute four
periodicals per year showcasing new trends in the industry, industry statistics,
and will host two events per year so that people from the target industry can
network with each other. The Foundation was founded by John Doe.
1.1 Products and Services
As mentioned above, the Trade Association will be actively
engaged in developing a periodical that will be distributed to its membership
base on a quarterly basis. The Foundation will charge a yearly fee of $199 in
order to receive this publication. The Trade Association will also maintain an
expansive website in which members can log on to find potential business
partners and discuss ways that the industry is changing.
Each year, the Trade Association will hold two major events in which all members
will be invited. For these events, the Foundation will sell sponsorship
advertising to members that want to have their business’ name prominently
featured at these events and within all literature that is associated with the
The third section of the business plan will further describe the
operations offered by the Trade Association.
1.2 The Financing
Management intends that the first round of capital will come as a
sponsorship grant for $250,000, which will be used to launch the trade
association operations of the Foundation. As the organization is a non-stock
corporation, no equity position or distribution of EBITDA income will be
distributed to any party that provides capital for the Foundation. After
immediately receiving the capital infusion, the Foundation will establish its
office and begin to launch the operations as discussed above. The initial funds
will be used for the following:
Establishment of the 501(c)(3) entity.
Financing for the initial capital to be used for the Company’s initial Trade
General working capital for the Foundation
The second section of the business plan will further document the initial
uses of the grant/sponsorship funds.
1.3 Mission Statement
The Trade Association’s mission is to provide outstanding support and networking
capabilities for people within the target industry.
1.4 Mangement Team
The Company was founded by John Doe. Mr. Doe has more than 10 years of experience in the
trade association 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 companies that will want to enroll in the Foundation’s
trade association. These marketing campaigns will be further discussed in the
fifth section of the business plan. In time, ancillary benefits may be provided
to members once the Trade Association expands.
2.0 Company and Financing Summary
2.1 Registered Name and Corporate Structure
Trade Association, Inc.
The Company is registered as a corporation in the State of
2.2 Required Funds
At this time, Trade
Association, Inc. requires $250,000 of funds. Below is a breakdown of how these
funds will be used:
2.3 Investor Equity
As the business is a non-stock
corporation, no formal ownership will be held by donors, Management, or
2.4 Management Equity
The non-stock corporation
exists as its own entity. Management will retain no formal equity interest in
2.5 Exit Strategy
In the event that Foundation
wishes to cease operations, the Management will file the appropriate articles of
dissolution, and the assets of the Foundation will be liquidated.
3.0 Products and Services
As stated in the executive summary, the Trade Association intends to provide outstanding opportunities
to its members by being able to provide them with up to date information
regarding the target industry. Primarily, the Foundation will distribute
quarterly publications that are 100 to 150 pages in length that focus on issues
pertaining to the trade industry, advertisements among businesses that want to
do business within the industry, and changes in the industry. The Foundation
will solicit a number of experts to write articles regarding how the target
industry intends to grow, recent changes in legislation (if applicable), and
ways in which individual entrepreneurs and trades people can increase the size
of their operation.
In each of these publications, the Foundation will feature a number of sponsored company’s
advertisements. These advertisements, in addition to the fees that are charged
to members on a yearly basis, will ensure that the Foundation is able to remain
cash flow positive at all times.
Additionally, the Trade Association will host two annual events, in major cities, that will allow
every member of the Foundation to meet, network, and potentially conduct
business transactions. There will be a moderate fee charged to individuals that
want to attend these events. As the Trade Association intends to operate in a
not for profit capacity, the fees that are collected to host these events will
be generally limited to the cost of obtaining a venue, entertainment, food, and
a moderate amount of capital raising activities.
It should be noted, in time, that the Trade Association may seek to provide ancillary benefits to its
members including a structured group healthcare insurance policy plan. This has
been one of the foremost changes in the trade association industry as many
entrepreneurs, individual contractors, and even large corporations are finding
it more difficult to provide health insurance to their employees and for owners.
As such, by being able to arrange for a potentially very large group health
insurance policy – the Trade Association will be in a strong position to
effectively recruit new members very quickly. However, this type of service
would not be offered until the Trade Association is at least three years old.
4.0 Strategic and Market Analysis
4.1 Economic Outlook
This section of the analysis will detail the economic climate, the trade association not for profit
organization 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 risen substantially. However, with
many entrepreneurs and businesses seeking to increase awareness of their brand
names while concurrently learning about how to expand their businesses – the
demand for membership in trade associations that provide significant benefits
has increased significantly. As such, the Trade Association should be able to
maintain a positive cash flow at all times from the membership revenues and
sponsorship revenues that are produced from its membership base.
4.2 Industry Analysis
Within the United States, there are more than 45,000
trade associations and business associations. Each year, these associations
(which are all registered as not for profit entities) generate more than $60
billion of revenues and provide jobs to more than 345,000 people. Annual
payrolls in each of the last five years has exceeded $15 billion.
The growth trend of the trade association industry is expected
to remain on par with that of the general economy. The one area of the trade
association industry that will continue to grow at a faster rate is expected to
pertain to alternative energy companies and sub-segments of the technology
4.3 Customer Profile
Management has outlined the
following demographics of businesses that are anticipated to enroll in the Trade
Association’s membership program:
Annual revenues of $250,000 to
Has 5 to 25 employees
Is seeking to network with
other companies within the industry
Annual EBITDA of $50,000 to
Will spend $200 to $500 per
year on Trade Association activities and publications.
May have a need to enroll in a
large scale health insurance policy.
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 Trade Association intends
to maintain an extensive marketing campaign that will ensure maximum visibility
for the Foundation in its targeted market. Below is an overview of the marketing
strategies and objectives of the Foundation.
5.1 Marketing Objectives
Develop an online presence by developing a website and placing the Foundation’s
name and contact information with online directories.
Regular hold large scale events that will generate publicity for the Foundation
within the Trade Associations target industry.
Establish relationships with large business trusts and corporate benefactors.
5.2 Marketing Strategies
Management intends to use a number of marketing strategies to
make individual companies and entrepreneurs within the target industry aware of
Trade Association’s operations and the benefits of joining the trade
association. Foremost, the business intends to use the power of the internet as
many businesspeople now use the internet to find specific information on the
industry in which they operate. The Foundation will develop an extensive website
that has a number of content rich articles so that the Trade Association’s
website appears on the first page of many search results when industry keywords
are put into search engines.
The business will conduct several mass mailings several times
per year in order to gain continual support from companies that operate within
the target industry. In each of the quarterly publications that are distributed
by the Trade Association, the Foundation will include an insert for individuals
that want to make additional donations or sponsorships to the trade association. PPublicity activities will be designed to generate ongoing coverage about the Foundation in targeted
media by providing writers and editors with newsworthy releases, features,
stories, briefs, and visual material for their columns and stories. In depth
coverage may also be obtained about the Foundation by hosting in-house
interviews to be conducted by the Foundation’s spokesperson.
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.
7.0 Financial Plan
77.1 Underlying Assumptions
The Company has based its
proforma financial statements on the following:
The Trade Association will have
an annual revenue growth rate of 14% per year.
The Foundation will initially
be seeded with $250,000 of grant capital.
7.2 Sensitivity Analysis
The Foundation’s revenues are
sensitive to the overall condition of the financial markets. For many businesses
(especially small businesses) the costs associated with belonging to a trade
association are a luxury, and as such, during times of economic recession, the
Foundation expects that its membership may decline or new members will be harder
to find. Management will enact several procedures to ensure that the Foundation
can survive severe decreases in its revenue.
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