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Free VC Directory

With any B-Plan Purchase
425 Page Capital Directory
Through Sept. 30

Business Plan Writer
$425 Flat Rate
No Templates Used
7 Day Turnaround

All Purchased Plans
Are Updated for 2020

Business Startup Guides
Checkout our new sister site!

Free Investment Bank 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.

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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
  • Loan Amortization and ROI Tools
  • FREE PowerPoint Presentation for Banks, Investors, or Grant Companies!

1.0 Executive Summary

The purpose of this business plan is to raise $10,000,000 for the development of an investment bank while showcasing the expected financials and operations over the next three years. Investment Bank, Inc. (“the Company”) is a New York based corporation that will provide underwriting, proprietary trading, and investment management for its investors in its targeted market. The Company was founded in 2009 by John Doe.

1.1 Products and Services

Primarily the Investment Bank will underwrite securities for sale to private investors and the general public among companies that are seeking to raise capital. At the onset of operations, the Investment Bank will primarily seek to sell debt instruments on behalf of its client base. The standard fee for this service is 7% of the total underwritten instrument. The Investment Bank will also solicit capital from accredited investors (defined later) with the intent to use this capital to make investments marketable securities. The Company expects to generate compounded annual returns of 25% to 35% per year on capital invested into the Investment Bank’s portfolio holdings. The Management of the Investment Bank will retain a 20% ownership interest in the firm. Details of the fee arrangements for the Investment Bank can be found in the Company’s private placement memorandum. The third section of the business plan will further describe the underwriting services and investment management services offered by the Investment Bank.

1.2 The Financing

At this time, the Company is seeking to raise $10,000,000 for the development of the Investment Bank’s operations. Mr. Doe is seeking to sell an 80% ownership interest in the business in exchange for this capital. 85% of the invested capital will be used for direct investments into the firm’s investments.

1.3 Mission Statement

Management’s mission is to develop the Investment Bank into a large scale investment firm that that will provide underwriting income, advisory income, dividend income, capital appreciation, and interest income to the Company’s investors and senior directors.

1.4 Mangement Team

The Company was founded by John Doe. Mr. Doe has more than 10 years of experience in the investment management and investment banking 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 Company will to undergo an aggressive expansion after the successful completion of the initial capital raising period. As the Investment Bank is a multifaceted investment firm, Management will expand each segment of the business by developing limited partnerships that will attract additional capital for the Company’s marketable securities and fund of funds portfolios.

2.0 Company and Financing Summary

2.1 Registered Name and Corporate Structure

Investment Bank, Inc. The Company is registered as a corporation in the State of New York.

2.2 Required Funds

At this time, the Investment Bank requires $10,000,000 of equity funds. Below is a breakdown of how these funds will be used:

2.3 Investor Equity

At this time, Mr. Doe is seeking to sell an 80% interest in the Investment Bank in exchange for the capital sought in this business plan. Please reference the Company’s private placement memorandum regarding more information regarding the Company’s fee and ownership structure.

2.4 Management Equity

John Doe currently owns 100% of the Investment Bank, Inc.

2.5 Exit Strategy

The Management has planned for three possible exit strategies. The first strategy would be to sell the Company to a larger entity at a significant premium. Since, the financial management and investment banking industry maintains a very low risk profile once the business is established; the Management feels that the Company could be sold for ten to fifteen times earnings.

3.0 Products and Services

Below is a description of the underwriting and investment management services offered by the Investment Bank, Inc.

3.1 Securities Underwriting and Advisory Services

The primary revenue streams for the business will come from securities underwriting and advisory services in regards to mergers and acquisitions transactions. The Company will earn substantial fees for the equity and debt instruments that it underwrites and then resells to the general public. As the Investment Bank is starting with a modest amount of capital, the Company will primarily engage debt instruments among middle market companies that will be sold on a best efforts basis. This will place minimal risk on the Company’s capital reserve. The Company will also earn substantial per hour management and deal fees regarding advisory services for mergers and acquisition operations.

3.2 Marketable Securities Trading

Management will also make investments directly into marketable securities and hedge funds that specialize in specific areas of trading. The Company intends to develop a number of trading strategies including options trading, LEAPs trading, long position/short position trading, and other methods of trading that will produce small but consistent gains on a weekly and monthly basis. The Investment Bank may also engage a covered call strategy that would allow the fund to amply it return on investment for securities that are held for an extended period of time. In regards to investing in hedge funds, outsourcing trading activities is expensive as hedge funds charge large AUM fees and performance fees on their aggregate capital pools.

4.0 Strategic and Market Analysis

4.1 Economic Outlook

This section of the analysis will detail the economic climate, the investment management and investment banking 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 in recession. This slowdown in the economy has also greatly impacted real estate sales, which has halted to historical lows. Many economists expect that this recession will continue until mid-2009, at which point the economy will begin a prolonged recovery period.

4.2 Industry Analysis

The financial services sector has become one of the fastest growing business segments in the U.S. economy. Computerized technologies allow financial firms to operate advisory, investment banking, and brokerage services anywhere in the country. In previous decades, most financial firms needed to be within a close proximity to Wall Street in order to provide their clients the highest level of service. This is no longer the case as a firm can access almost every facet of the financial markets through Internet connections and specialized trading and investment management software. With these advances, several new firms have been created to address the needs of people in rural and suburban areas. The Bureau of Labor Statistics estimates that there are approximately 94,000 investment advisors and investment bankers currently employed throughout the United States. The average annual income for an investment advisor is $62,700. Salaries are expected to increase at a rate of 2.1% a year as inflation increases. In the last study conducted by the U.S. Economic Census, it was found that the revenues of the investment banking industry increased from $14.8 billion dollars in 1992 to over $52.9 billion dollars by 2005. This represents a five year growth rate of 257%. The number of investment advisory establishments increased 61.5% over the same period. This trend is expected to continue as the ‘baby boomer’ generation begins to move into retirement age.

4.3 Customer Profile

Investment Banks have a very limited scope of people to which they can market their investment portfolio. This is especially true as the Company will use marketable securities as its secondary method of its day to day revenue generating activities.

4.4 Competitive Analysis

As the investment advisory and investment banking industries have grown, so has the level of competition. One of the drawbacks to the industry is that there are very low barriers to entry. Any individual or business may register itself as an investment advisor or investment banking after completing the proper examinations and filings.

5.0 Marketing Plan

Investment Bank, Inc. 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 Investment Bank.

5.1 Marketing Objectives

  • • Establish relationships with other investment advisories and investment banks within the United States.

  • • Develop an online presence by developing a website and placing the Company’s name and contact information with online directories.


5.2 Marketing Strategies

In regards to its investment management service, the Company cannot directly market its services to the general public, the Investment Bank will hire a capital introduction firm to showcase the operations of the business to potential investors. These firms, for a commission, will introduce potential investors and investment groups to Management. These companies maintain extensive lists of accredited investors and institutions that frequently make investments into private investment companies. The Investment Bank will also develop a website specifically for investors that have registered or have become clients with the Company. This website will showcase the strategies that the Company uses, its underwriting and advisory services, relevant contact information, and for registered inventors – information specifically related to their account. Mr. Doe will also make presentations at popular financial institution conventions while concurrently obtaining speaking engagements among other investment meetings so that his visibility and that of the firm increase over time.

5.3 Pricing

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

  • • Investment Bank will have an annual revenue growth rate of 20% per year.

  • • The Company will earn a compounded annual return of 30% on its proprietary investment portfolio.

  • • The Owner will acquire $10,000,000 of equity funds to develop the business.

7.2 Sensitivity Analysis

It is the goal of the Company to make investments in economically viable companies that will produce dividend income, interest income, and capital appreciation while concurrently generating substantial fees from underwriting and advisory services. During times of economic recession, the Company’s portfolio may have issues with profit generation, which in turn, could lead to lower ROI’s on the Investment Bank’s proprietary portfolio. However, the Company intends to use a number of strategies that will ensure that the firm will produce profits regardless of the general economic climate.

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