Merchant bank business plans are complex documents. Because the industry is heavily regulated and there are state and federal requirements for any new bank, your business plan needs to account for the contingencies that arise at both levels. The plan should adhere as closely as possible to the outline that startup financial institutions have had success with in the past. Your bank should be branded, registered, and have a firm financial plan in place for 5 years. Some important elements for the business plan for a merchant bank are these:
• Define your target customer base in detail
• Outline your marketing strategies in depth
• When could you hit break-even?
• How much capital from outside will be required for launch?
• Will you model the bank off of any other merchant institutions?
• What fees will you charge for different accounts?
• How many managers, tellers, etc. will you need on staff?
Giving a complete outline of your different account packages and your anticipated adoption rates is important. Also you should profile the banks you would compete with most directly in the target market, and explain any advantages you can capitalize on. The management team must include people with deep industry experience or make an allowance for the management team gaps you will need to fill. If you need help preparing this document, call MasterPlans. We have worked on several bank projects -- expansion and startup -- and we can help you as well. Quotes and consultations are free: (877) 453-2011.
