Wondering what needs to be included in business plans for money managers? The industry's been hit by one storm after another over the years, so the planning side has a couple new requirements. First, the business plan needs to be sensitive to emerging legislation and regulatory concerns that the money management space has encountered. Second, it needs to give an honest appraisal of the industry itself, including the turbulence of recent history and the long-term view as well. The business plan should of course have a complete market analysis but also an industry snapshot that looks at the state of things now and in the future. The business plan for a money manager should also cover all of the following topics, at least briefly:
• Who are the main competitors to your business (first-tier and second-tier, if applicable)?
• Do you have staffing needs or is your company run as a solo operation? If you need support staff, when are they hired and at what rate?
• What services will you offer outside of strict money management, if any?
• What amount of seed or expansion capital do you need, or is the document a roadmap?
• How will you market yourself to prospective new clients?
In the money manager business plan, client acquisition strategies are important. You must demonstrate convincingly that you know how to acquire new accounts and, more than that, how to keep current customers happy. Testimonials or success stories from past work are not required but can be included in the business plan if you wish. The document also needs a five-year financial pro forma showing a revenue forecast, break-even point, profit and loss statement, cash flow, balance sheet, and a full appendix that includes a monthly breakdown for every key table over Year 1 post-funding. You can call upon MasterPlans for help with this document. We have vast experience with the financial services industry and can produce a presentation-ready business plan in as little as two weeks. Call 877-453-2011.
