The trading company business plan is a complicated document if only because the industry has evolved so much over the past decade. The recent financial turbulence has put the regulatory eye squarely on certain sectors of the industry, and trading companies that previously operated with little day-to-day oversight are now subject to stringent monitoring and reporting requirements. Beyond the regulatory landscape, consumers themselves are less willing to invest blindly, and this has proven to be its own challenge even for the most reputable and established brokerages and investor advisors. For a trading company business plan, you will need to show all of the following:
• The current market conditions
• Your projected target clients, AUM, and annual revenue benchmarks
• Your fees, commissions, and other revenue drivers
• The marketing strategies you'll employ
• The number of people in the trading company and when they come onboard
In addition to the personnel plan, your pro forma model should show how you will spend the seed capital you receive, whether it's a privately-placed investment or a line of credit or loan. The financial projections need to include revenues, the break-even point, a cash flow and balance sheet, and the profit and loss statement showing what amount of money the venture could earn by Year 5. A section on your managers/owners that shows their experience in the trading industry is also vital. Need assistance with this business plan? Call the industry experts at MasterPlans for a free quote today. We've been writing plans since 2002 and can get yours in shape too: (877) 453-2011.
If you are ready to go, or not sure what kind of plan you need, fill out the form below and we'll call you.