Start-up Funding | |
Start-up Expenses to Fund | $20,000 |
Start-up Assets to Fund | $105,000 |
Total Funding Required | $125,000 |
Assets | |
Non-cash Assets from Start-up | $26,000 |
Cash Requirements from Start-up | $79,000 |
Additional Cash Raised | $0 |
Cash Balance on Starting Date | $79,000 |
Total Assets | $105,000 |
Liabilities and Capital | |
Liabilities | |
Current Borrowing | $0 |
Long-term Liabilities | $0 |
Accounts Payable (Outstanding Bills) | $0 |
Other Current Liabilities (interest-free) | $0 |
Total Liabilities | $0 |
Capital | |
Planned Investment | |
Investor 1 | $75,000 |
Investor 2 | $50,000 |
Additional Investment Requirement | $0 |
Total Planned Investment | $125,000 |
Loss at Start-up (Start-up Expenses) | ($20,000) |
Total Capital | $105,000 |
Total Capital and Liabilities | $105,000 |
Total Funding | $125,000 |
Steve Burke and Sarah Lewis equally own Green Investments. While they initially were going to create a S Corporation as the business formation, they decided to form as a L.L.C. as a means to avoid double taxation found with a corporation yet realizing the benefits of personal liability avoidance.
Green Investments is a financial service company that offers investment advice specifically for stocks. GI purchases fiscal performance research from Bear Stearns, one of the highest respected firms in the market. In addition to solid financial performance criteria, GI has developed a set of environmental markers by which it can analyze and grade the attractiveness of the environmental impact that a company has.
As mentioned earlier, the economic performance of a company is rated by the financial firm Bear Stearns. Green Investments purchases Bear Stearns research based on recognition that there is no value added to do this research. The confidence of the research is quite high because of the firm performing it. If Bear Stearns’ research or another firm of comparable quality was not available Green Investments would have to rethink the decision to farm out this research.
Green Investments has developed a comprehensive set of environmental markers for which a company and their environmental impact can be evaluated. The following areas are evaluated:
All of the markers include current, next stage, and long run benchmarks.
Green Investments takes the list of recommended investments from Bear Stearns and then applies environmental marker criteria to narrow the list down. The result is a list of possible investments (stocks) that are recommended because of their fiscal and environmental performance. Green Investments attempts to make evaluations of companies in a wide range of sectors allowing the customer to make the choice as to what type of company/industry that they would like to invest in.
Green Investments’ service charge is similar to a typical brokerage fee system based on a percentage. While Green Investments is a bit more expensive than other standard financial services companies because of the additional research required, the variance is not that material, particularly to customers that want good performing stocks but only want to invest with environmentally sound companies.
Several recent well respected studies indicate that “green” stocks are not inherently under performing. Actually it is just the reverse, companies that make decisions with environmental considerations in mind generally perform better.
Green Investments has identified two distinct groups of target customers. These two groups of customers are distinguished by their household wealth. They have been grouped as customers with <$1 million and >$1 million in household wealth. The main characteristic that makes both of these groups so attractive is their desire to make a difference in the world by making investment decisions that take into account environmental factors.
The financial services industry has many different niches. Some advisors provide general investment services. Others will only offer one type of investments, maybe just mutual funds or might concentrate on bonds. Other service providers will concentrate on a specific niche like technology or socially responsible companies.
Green Investments has segmented the target market into two distinct groups. The groups can be differentiated by their difference in household wealth, households of <$1 million and >$1 million.
Market Analysis | |||||||
Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | |||
Potential Customers | Growth | CAGR | |||||
<$1 million worth customers | 8% | 1,232,000 | 1,330,560 | 1,437,005 | 1,551,965 | 1,676,122 | 8.00% |
>$1 million worth customers | 7% | 223,090 | 238,706 | 255,415 | 273,294 | 292,425 | 7.00% |
Total | 7.85% | 1,455,090 | 1,569,266 | 1,692,420 | 1,825,259 | 1,968,547 | 7.85% |
Green Investments has chosen the previously mentioned target market segments because of the ideological beliefs and the fact that these beliefs translate into the customer groups needing services that Green Investments can provide. While the people can always purchase shares of an environmentally responsible mutual fund, a way that they can exercise their beliefs, mutual funds are just one type of investments. The downside of investments are their relatively low rate of return (relative to good stocks) and the inability to receive personalized service and the ability to make custom choices beyond the type of mutual fund.
Therefore, Green Investments has chosen these specific customer segments because it is a market group that has unmet needs. These groups have the money and willingness for an environmental investment, yet their only current choice is a mutual fund. Green Investments has chosen to distinguish the two market segments by household worth since this characteristic provides useful behavioral information regarding the different people.
Green Investments participates within the financial service industry. This multi-billion dollar ($14.8) industry services a wide range of people and companies with financial services such as investments. There are many different types of investments offered including but not limited to:
Within the industry, customers are served by a wide range of service providers including:
Buying decisions are often based on who you know or familiarity that the person may have with a specific company. Most of the service providers can provide a similar menu of investment options.
Fee structures vary from firm to firm. Many are percentage based on the amount of money the client investments. Some firms charge hourly rates while other firms charge a quarterly management fee. The fee structures are set in stone for some service providers while others take a more flexible approach and are willing to work with the customer to set up special arrangements.
Green Investments has no direct competitors that offer environmentally sound stock investment services. All of the current environmental investment options are mutual fund based. Examples of this type of mutual funds include Janus, Citizen Funds, Sierra Club Environmental Fund, and Portfolio 21.
Other competitors that Green Investments faces are the typical range of financial advisors. These indirect competitors provide customers with a wide range of different investment options. They could always place an investment order for a specific company, but these specific competitors do not do any independent research on the environmentalism of different companies.
Green Investments will leverage its sustainable competitive edge of independent environmental research based on a custom set of criteria based markers for an objective measure of a company’s dedication to environmentalism. The competitive edge will be marketed by using the mantra of “think globally, act locally.” This marketing slogan will encourage people to do their part in regards to helping the environment through responsible investing. The sales campaign will rely on metrics that indicate environmental investments can and do outperform the S&P 500 Index.
Green Investments’ competitive edge is the environmental marker criteria that when applied indicates which economic performing companies with solid environmental commitments. The markers are effective for extremely valuable for several reasons:
The key here is the fact that an objective, easy to apply, and accurate measurement system has been developed to provide environmental analysis for any company that has the markers applied to them. No one else offers this type of service as an information source for the decision making process of stock investments.
“Think globally, act locally.” This well known and concise mantra simply suggests everyone should do their part. Green Investments services allows people to make investments based on their conscience. So many people want to do good but are unsure how to. Green Investments’ services allows people to do the right thing, with no real cost relative to the other options. Green Investments’ returns are better than the S&P 500 Index.
The marketing effort will concentrate on Green Investments’ ability to empower people to make a substantial difference in this world while getting a great return on their money. Green Investments will use magazine advertisements and community based marketing (networking, sponsorship and participation in seminars) to increase visibility for Green Investments and the services offered. The advertisements will be a steady way that people will become aware of the investment options as well as some visibility for the company itself. The community involvement implicitly accepts the premise that good business relies on networking (inter relationships, both business and personal) to be a significant source of business and good will. Green Investments will participate in numerous on-topic events and seminars that will display them as experts as well as give them a podium to describe the different services.
The sales strategy will rely on using quantitative evidence the recommended companies outperform the S&P 500 Index. In 1999-2001, Green Investments’ chosen companies outperformed the index by 2.4%. This is a significant amount. The sales strategy will concentrate on that by making smart green investments, you can achieve better then average returns on your money. A sales packet will be assembled and distributed to prospective customers that shows the better than average historic returns that Green Investments recommended companies enjoy.
Sales Forecast | |||
Year 1 | Year 2 | Year 3 | |
Sales | |||
<$1 million worth customers | $54,746 | $156,665 | $178,225 |
>$1 million worth customers | $22,889 | $73,633 | $83,766 |
Total Sales | $77,635 | $230,298 | $261,991 |
Direct Cost of Sales | Year 1 | Year 2 | Year 3 |
<$1 million worth customers | $8,212 | $23,500 | $26,734 |
>$1 million worth customers | $3,433 | $11,045 | $12,565 |
Subtotal Direct Cost of Sales | $11,645 | $34,545 | $39,299 |
Green Investments has identified several milestones which will act as ambitious yet achievable goals for the organization. By establishing the goals, the need to reach them will develop an implicit incentive for all organizational members to work hard to achieve the milestones.
Milestones | |||||
Milestone | Start Date | End Date | Budget | Manager | Department |
Business plan completion | 1/1/2003 | 2/1/2003 | $0 | Sarah & Steve | Planning |
First $ million account | 1/1/2003 | 4/15/2004 | $0 | Sarah | Sales |
Profitability | 1/1/2003 | 6/1/2005 | $0 | Steve | Accounting |
Revenue of $250K | 1/1/2003 | 9/15/2004 | $0 | Sarah | Sales |
Totals | $0 |
Green Investments will be lead by the founding team of Sarah Lewis and Steve Burke. Sarah has an undergraduate and Masters in environmental studies from the University of Burlington. After Sarah obtained the degrees she moved to Washington DC where she worked for the Environmental Protection Agency (EPA) for four years, performing environmental impact statements for a variety of industries, companies, and projects. Sarah was also a project manager for Janus in their evaluation department where they performed company wide environmental assessments of companies that were perspective investments for the fund.
The other member of Green Investments management team is Steve Burke. Steve hails from a financial background. Steve has an undergraduate degree in Finance from Seattle University and a MBA from the University of Washington. After school Steve went to work for Salomon Smith Barney in their investment department for eight years.
The positions will be phased in on an as needed basis. Please review the following chart for personnel forecasts.
Personnel Plan | |||
Year 1 | Year 2 | Year 3 | |
Sarah | $30,000 | $40,000 | $40,000 |
Steve | $30,000 | $40,000 | $40,000 |
Account Manager | $27,000 | $36,000 | $36,000 |
Administrative Assistant | $15,000 | $15,000 | $15,000 |
Bookkeeper | $10,000 | $12,000 | $12,000 |
Research Assistant | $8,250 | $9,000 | $9,000 |
Total People | 6 | 6 | 6 |
Total Payroll | $120,250 | $152,000 | $152,000 |
The following sections will outline important financial information.
The following table details important Financial Assumptions.
General Assumptions | |||
Year 1 | Year 2 | Year 3 | |
Plan Month | 1 | 2 | 3 |
Current Interest Rate | 10.00% | 10.00% | 10.00% |
Long-term Interest Rate | 10.00% | 10.00% | 10.00% |
Tax Rate | 30.00% | 30.00% | 30.00% |
Other | 0 | 0 | 0 |
The Break-even Analysis is shown in the following table and chart.
Break-even Analysis | |
Monthly Revenue Break-even | $15,225 |
Assumptions: | |
Average Percent Variable Cost | 15% |
Estimated Monthly Fixed Cost | $12,941 |
The following table will indicate Projected Profit and Loss.
Pro Forma Profit and Loss | |||
Year 1 | Year 2 | Year 3 | |
Sales | $77,635 | $230,298 | $261,991 |
Direct Cost of Sales | $11,645 | $34,545 | $39,299 |
Other Costs of Sales | $0 | $0 | $0 |
Total Cost of Sales | $11,645 | $34,545 | $39,299 |
Gross Margin | $65,990 | $195,753 | $222,692 |
Gross Margin % | 85.00% | 85.00% | 85.00% |
Expenses | |||
Payroll | $120,250 | $152,000 | $152,000 |
Sales and Marketing and Other Expenses | $0 | $0 | $0 |
Depreciation | $3,804 | $317 | $317 |
Rent | $7,800 | $7,800 | $7,800 |
Utilities | $1,800 | $1,800 | $1,800 |
Insurance | $1,800 | $1,800 | $1,800 |
Payroll Taxes | $18,038 | $22,800 | $22,800 |
Other | $1,800 | $1,800 | $1,800 |
Total Operating Expenses | $155,292 | $188,317 | $188,317 |
Profit Before Interest and Taxes | ($89,301) | $7,436 | $34,375 |
EBITDA | ($85,497) | $7,753 | $34,692 |
Interest Expense | $73 | $220 | $120 |
Taxes Incurred | $0 | $2,165 | $10,277 |
Net Profit | ($89,374) | $5,051 | $23,979 |
Net Profit/Sales | -115.12% | 2.19% | 9.15% |
The following table and chart will indicate Projected Cash Flow.
Pro Forma Cash Flow | |||
Year 1 | Year 2 | Year 3 | |
Cash Received | |||
Cash from Operations | |||
Cash Sales | $77,635 | $230,298 | $261,991 |
Subtotal Cash from Operations | $77,635 | $230,298 | $261,991 |
Additional Cash Received | |||
Sales Tax, VAT, HST/GST Received | $0 | $0 | $0 |
New Current Borrowing | $3,000 | $0 | $0 |
New Other Liabilities (interest-free) | $0 | $0 | $0 |
New Long-term Liabilities | $0 | $0 | $0 |
Sales of Other Current Assets | $0 | $0 | $0 |
Sales of Long-term Assets | $0 | $0 | $0 |
New Investment Received | $0 | $0 | $0 |
Subtotal Cash Received | $80,635 | $230,298 | $261,991 |
Expenditures | Year 1 | Year 2 | Year 3 |
Expenditures from Operations | |||
Cash Spending | $120,250 | $152,000 | $152,000 |
Bill Payments | $38,394 | $71,497 | $84,646 |
Subtotal Spent on Operations | $158,644 | $223,497 | $236,646 |
Additional Cash Spent | |||
Sales Tax, VAT, HST/GST Paid Out | $0 | $0 | $0 |
Principal Repayment of Current Borrowing | $300 | $1,000 | $1,000 |
Other Liabilities Principal Repayment | $0 | $0 | $0 |
Long-term Liabilities Principal Repayment | $0 | $0 | $0 |
Purchase Other Current Assets | $0 | $0 | $0 |
Purchase Long-term Assets | $0 | $0 | $0 |
Dividends | $0 | $0 | $0 |
Subtotal Cash Spent | $158,944 | $224,497 | $237,646 |
Net Cash Flow | ($78,308) | $5,801 | $24,345 |
Cash Balance | $692 | $6,492 | $30,837 |
The following table will indicate the Projected Balance Sheet.
Pro Forma Balance Sheet | |||
Year 1 | Year 2 | Year 3 | |
Assets | |||
Current Assets | |||
Cash | $692 | $6,492 | $30,837 |
Other Current Assets | $7,000 | $7,000 | $7,000 |
Total Current Assets | $7,692 | $13,492 | $37,837 |
Long-term Assets | |||
Long-term Assets | $19,000 | $19,000 | $19,000 |
Accumulated Depreciation | $3,804 | $4,121 | $4,438 |
Total Long-term Assets | $15,196 | $14,879 | $14,562 |
Total Assets | $22,888 | $28,371 | $52,399 |
Liabilities and Capital | Year 1 | Year 2 | Year 3 |
Current Liabilities | |||
Accounts Payable | $4,561 | $5,994 | $7,043 |
Current Borrowing | $2,700 | $1,700 | $700 |
Other Current Liabilities | $0 | $0 | $0 |
Subtotal Current Liabilities | $7,261 | $7,694 | $7,743 |
Long-term Liabilities | $0 | $0 | $0 |
Total Liabilities | $7,261 | $7,694 | $7,743 |
Paid-in Capital | $125,000 | $125,000 | $125,000 |
Retained Earnings | ($20,000) | ($109,374) | ($104,323) |
Earnings | ($89,374) | $5,051 | $23,979 |
Total Capital | $15,626 | $20,677 | $44,656 |
Total Liabilities and Capital | $22,888 | $28,371 | $52,399 |
Net Worth | $15,626 | $20,677 | $44,656 |
The following table indicates Business Ratios found within the industry of financial services as well as ratios specific to Green Investments. Please note that while there are some similarities between the general financial service industry and Green Investments, GI is more unusual in that they do their own assessment of companies, beyond typical research.
Ratio Analysis | ||||
Year 1 | Year 2 | Year 3 | Industry Profile | |
Sales Growth | 0.00% | 196.64% | 13.76% | 8.79% |
Percent of Total Assets | ||||
Other Current Assets | 30.58% | 24.67% | 13.36% | 44.18% |
Total Current Assets | 33.61% | 47.56% | 72.21% | 76.27% |
Long-term Assets | 66.39% | 52.44% | 27.79% | 23.73% |
Total Assets | 100.00% | 100.00% | 100.00% | 100.00% |
Current Liabilities | 31.73% | 27.12% | 14.78% | 38.61% |
Long-term Liabilities | 0.00% | 0.00% | 0.00% | 13.60% |
Total Liabilities | 31.73% | 27.12% | 14.78% | 52.21% |
Net Worth | 68.27% | 72.88% | 85.22% | 47.79% |
Percent of Sales | ||||
Sales | 100.00% | 100.00% | 100.00% | 100.00% |
Gross Margin | 85.00% | 85.00% | 85.00% | 100.00% |
Selling, General & Administrative Expenses | 200.12% | 82.81% | 75.85% | 82.68% |
Advertising Expenses | 0.00% | 0.00% | 0.00% | 1.66% |
Profit Before Interest and Taxes | -115.03% | 3.23% | 13.12% | 1.37% |
Main Ratios | ||||
Current | 1.06 | 1.75 | 4.89 | 1.59 |
Quick | 1.06 | 1.75 | 4.89 | 1.22 |
Total Debt to Total Assets | 31.73% | 27.12% | 14.78% | 3.09% |
Pre-tax Return on Net Worth | -571.95% | 34.90% | 76.71% | 60.22% |
Pre-tax Return on Assets | -390.49% | 25.43% | 65.37% | 7.76% |
Additional Ratios | Year 1 | Year 2 | Year 3 | |
Net Profit Margin | -115.12% | 2.19% | 9.15% | n.a |
Return on Equity | -571.95% | 24.43% | 53.70% | n.a |
Activity Ratios | ||||
Accounts Payable Turnover | 9.42 | 12.17 | 12.17 | n.a |
Payment Days | 27 | 26 | 28 | n.a |
Total Asset Turnover | 3.39 | 8.12 | 5.00 | n.a |
Debt Ratios | ||||
Debt to Net Worth | 0.46 | 0.37 | 0.17 | n.a |
Current Liab. to Liab. | 1.00 | 1.00 | 1.00 | n.a |
Liquidity Ratios | ||||
Net Working Capital | $430 | $5,798 | $30,094 | n.a |
Interest Coverage | -1,231.74 | 33.80 | 286.46 | n.a |
Additional Ratios | ||||
Assets to Sales | 0.29 | 0.12 | 0.20 | n.a |
Current Debt/Total Assets | 32% | 27% | 15% | n.a |
Acid Test | 1.06 | 1.75 | 4.89 | n.a |
Sales/Net Worth | 4.97 | 11.14 | 5.87 | n.a |
Dividend Payout | 0.00 | 0.00 | 0.00 | n.a |
Sales Forecast | |||||||||||||
Month 1 | Month 2 | Month 3 | Month 4 | Month 5 | Month 6 | Month 7 | Month 8 | Month 9 | Month 10 | Month 11 | Month 12 | ||
Sales | |||||||||||||
<$1 million worth customers | 0% | $0 | $0 | $0 | $2,500 | $3,545 | $4,545 | $5,878 | $6,335 | $7,474 | $7,558 | $8,255 | $8,656 |
>$1 million worth customers | 0% | $0 | $0 | $0 | $0 | $0 | $2,136 | $2,763 | $2,977 | $3,513 | $3,552 | $3,880 | $4,068 |
Total Sales | $0 | $0 | $0 | $2,500 | $3,545 | $6,681 | $8,641 | $9,312 | $10,987 | $11,110 | $12,135 | $12,724 | |
Direct Cost of Sales | Month 1 | Month 2 | Month 3 | Month 4 | Month 5 | Month 6 | Month 7 | Month 8 | Month 9 | Month 10 | Month 11 | Month 12 | |
<$1 million worth customers | $0 | $0 | $0 | $375 | $532 | $682 | $882 | $950 | $1,121 | $1,134 | $1,238 | $1,298 | |
>$1 million worth customers | $0 | $0 | $0 | $0 | $0 | $320 | $414 | $447 | $527 | $533 | $582 | $610 | |
Subtotal Direct Cost of Sales | $0 | $0 | $0 | $375 | $532 | $1,002 | $1,296 | $1,397 | $1,648 | $1,667 | $1,820 | $1,909 |
Personnel Plan | |||||||||||||
Month 1 | Month 2 | Month 3 | Month 4 | Month 5 | Month 6 | Month 7 | Month 8 | Month 9 | Month 10 | Month 11 | Month 12 | ||
Sarah | 0% | $2,500 | $2,500 | $2,500 | $2,500 | $2,500 | $2,500 | $2,500 | $2,500 | $2,500 | $2,500 | $2,500 | $2,500 |
Steve | 0% | $2,500 | $2,500 | $2,500 | $2,500 | $2,500 | $2,500 | $2,500 | $2,500 | $2,500 | $2,500 | $2,500 | $2,500 |
Account Manager | 0% | $0 | $0 | $1,500 | $2,000 | $2,500 | $3,000 | $3,000 | $3,000 | $3,000 | $3,000 | $3,000 | $3,000 |
Administrative Assistant | 0% | $0 | $0 | $1,500 | $1,500 | $1,500 | $1,500 | $1,500 | $1,500 | $1,500 | $1,500 | $1,500 | $1,500 |
Bookkeeper | 0% | $0 | $0 | $1,000 | $1,000 | $1,000 | $1,000 | $1,000 | $1,000 | $1,000 | $1,000 | $1,000 | $1,000 |
Research Assistant | 0% | $0 | $750 | $750 | $750 | $750 | $750 | $750 | $750 | $750 | $750 | $750 | $750 |
Total People | 2 | 3 | 6 | 6 | 6 | 6 | 6 | 6 | 6 | 6 | 6 | 6 | |
Total Payroll | $5,000 | $5,750 | $9,750 | $10,250 | $10,750 | $11,250 | $11,250 | $11,250 | $11,250 | $11,250 | $11,250 | $11,250 |
General Assumptions | |||||||||||||
Month 1 | Month 2 | Month 3 | Month 4 | Month 5 | Month 6 | Month 7 | Month 8 | Month 9 | Month 10 | Month 11 | Month 12 | ||
Plan Month | 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 | 11 | 12 | |
Current Interest Rate | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | |
Long-term Interest Rate | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | |
Tax Rate | 30.00% | 30.00% | 30.00% | 30.00% | 30.00% | 30.00% | 30.00% | 30.00% | 30.00% | 30.00% | 30.00% | 30.00% | |
Other | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Pro Forma Profit and Loss | |||||||||||||
Month 1 | Month 2 | Month 3 | Month 4 | Month 5 | Month 6 | Month 7 | Month 8 | Month 9 | Month 10 | Month 11 | Month 12 | ||
Sales | $0 | $0 | $0 | $2,500 | $3,545 | $6,681 | $8,641 | $9,312 | $10,987 | $11,110 | $12,135 | $12,724 | |
Direct Cost of Sales | $0 | $0 | $0 | $375 | $532 | $1,002 | $1,296 | $1,397 | $1,648 | $1,667 | $1,820 | $1,909 | |
Other Costs of Sales | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Total Cost of Sales | $0 | $0 | $0 | $375 | $532 | $1,002 | $1,296 | $1,397 | $1,648 | $1,667 | $1,820 | $1,909 | |
Gross Margin | $0 | $0 | $0 | $2,125 | $3,013 | $5,679 | $7,345 | $7,916 | $9,339 | $9,444 | $10,315 | $10,816 | |
Gross Margin % | 0.00% | 0.00% | 0.00% | 85.00% | 85.00% | 85.00% | 85.00% | 85.00% | 85.00% | 85.00% | 85.00% | 85.00% | |
Expenses | |||||||||||||
Payroll | $5,000 | $5,750 | $9,750 | $10,250 | $10,750 | $11,250 | $11,250 | $11,250 | $11,250 | $11,250 | $11,250 | $11,250 | |
Sales and Marketing and Other Expenses | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Depreciation | $317 | $317 | $317 | $317 | $317 | $317 | $317 | $317 | $317 | $317 | $317 | $317 | |
Rent | $650 | $650 | $650 | $650 | $650 | $650 | $650 | $650 | $650 | $650 | $650 | $650 | |
Utilities | $150 | $150 | $150 | $150 | $150 | $150 | $150 | $150 | $150 | $150 | $150 | $150 | |
Insurance | $150 | $150 | $150 | $150 | $150 | $150 | $150 | $150 | $150 | $150 | $150 | $150 | |
Payroll Taxes | 15% | $750 | $863 | $1,463 | $1,538 | $1,613 | $1,688 | $1,688 | $1,688 | $1,688 | $1,688 | $1,688 | $1,688 |
Other | $150 | $150 | $150 | $150 | $150 | $150 | $150 | $150 | $150 | $150 | $150 | $150 | |
Total Operating Expenses | $7,167 | $8,030 | $12,630 | $13,205 | $13,780 | $14,355 | $14,355 | $14,355 | $14,355 | $14,355 | $14,355 | $14,355 | |
Profit Before Interest and Taxes | ($7,167) | ($8,030) | ($12,630) | ($11,080) | ($10,766) | ($8,676) | ($7,010) | ($6,439) | ($5,016) | ($4,911) | ($4,040) | ($3,539) | |
EBITDA | ($6,850) | ($7,713) | ($12,313) | ($10,763) | ($10,449) | ($8,359) | ($6,693) | ($6,122) | ($4,699) | ($4,594) | ($3,723) | ($3,222) | |
Interest Expense | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $25 | $25 | $23 | |
Taxes Incurred | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Net Profit | ($7,167) | ($8,030) | ($12,630) | ($11,080) | ($10,766) | ($8,676) | ($7,010) | ($6,439) | ($5,016) | ($4,936) | ($4,065) | ($3,561) | |
Net Profit/Sales | 0.00% | 0.00% | 0.00% | -443.18% | -303.70% | -129.85% | -81.13% | -69.14% | -45.65% | -44.43% | -33.50% | -27.99% |
Pro Forma Cash Flow | |||||||||||||
Month 1 | Month 2 | Month 3 | Month 4 | Month 5 | Month 6 | Month 7 | Month 8 | Month 9 | Month 10 | Month 11 | Month 12 | ||
Cash Received | |||||||||||||
Cash from Operations | |||||||||||||
Cash Sales | $0 | $0 | $0 | $2,500 | $3,545 | $6,681 | $8,641 | $9,312 | $10,987 | $11,110 | $12,135 | $12,724 | |
Subtotal Cash from Operations | $0 | $0 | $0 | $2,500 | $3,545 | $6,681 | $8,641 | $9,312 | $10,987 | $11,110 | $12,135 | $12,724 | |
Additional Cash Received | |||||||||||||
Sales Tax, VAT, HST/GST Received | 0.00% | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
New Current Borrowing | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $3,000 | $0 | $0 | |
New Other Liabilities (interest-free) | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
New Long-term Liabilities | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Sales of Other Current Assets | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Sales of Long-term Assets | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
New Investment Received | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Subtotal Cash Received | $0 | $0 | $0 | $2,500 | $3,545 | $6,681 | $8,641 | $9,312 | $10,987 | $14,110 | $12,135 | $12,724 | |
Expenditures | Month 1 | Month 2 | Month 3 | Month 4 | Month 5 | Month 6 | Month 7 | Month 8 | Month 9 | Month 10 | Month 11 | Month 12 | |
Expenditures from Operations | |||||||||||||
Cash Spending | $5,000 | $5,750 | $9,750 | $10,250 | $10,750 | $11,250 | $11,250 | $11,250 | $11,250 | $11,250 | $11,250 | $11,250 | |
Bill Payments | $62 | $1,854 | $1,983 | $2,578 | $3,020 | $3,262 | $3,799 | $4,087 | $4,193 | $4,437 | $4,484 | $4,636 | |
Subtotal Spent on Operations | $5,062 | $7,604 | $11,733 | $12,828 | $13,770 | $14,512 | $15,049 | $15,337 | $15,443 | $15,687 | $15,734 | $15,886 | |
Additional Cash Spent | |||||||||||||
Sales Tax, VAT, HST/GST Paid Out | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Principal Repayment of Current Borrowing | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $300 | |
Other Liabilities Principal Repayment | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Long-term Liabilities Principal Repayment | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Purchase Other Current Assets | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Purchase Long-term Assets | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Dividends | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Subtotal Cash Spent | $5,062 | $7,604 | $11,733 | $12,828 | $13,770 | $14,512 | $15,049 | $15,337 | $15,443 | $15,687 | $15,734 | $16,186 | |
Net Cash Flow | ($5,062) | ($7,604) | ($11,733) | ($10,328) | ($10,225) | ($7,831) | ($6,409) | ($6,025) | ($4,456) | ($1,577) | ($3,599) | ($3,461) | |
Cash Balance | $73,938 | $66,335 | $54,602 | $44,275 | $34,049 | $26,218 | $19,809 | $13,785 | $9,329 | $7,752 | $4,153 | $692 |
Pro Forma Balance Sheet | |||||||||||||
Month 1 | Month 2 | Month 3 | Month 4 | Month 5 | Month 6 | Month 7 | Month 8 | Month 9 | Month 10 | Month 11 | Month 12 | ||
Assets | Starting Balances | ||||||||||||
Current Assets | |||||||||||||
Cash | $79,000 | $73,938 | $66,335 | $54,602 | $44,275 | $34,049 | $26,218 | $19,809 | $13,785 | $9,329 | $7,752 | $4,153 | $692 |
Other Current Assets | $7,000 | $7,000 | $7,000 | $7,000 | $7,000 | $7,000 | $7,000 | $7,000 | $7,000 | $7,000 | $7,000 | $7,000 | $7,000 |
Total Current Assets | $86,000 | $80,938 | $73,335 | $61,602 | $51,275 | $41,049 | $33,218 | $26,809 | $20,785 | $16,329 | $14,752 | $11,153 | $7,692 |
Long-term Assets | |||||||||||||
Long-term Assets | $19,000 | $19,000 | $19,000 | $19,000 | $19,000 | $19,000 | $19,000 | $19,000 | $19,000 | $19,000 | $19,000 | $19,000 | $19,000 |
Accumulated Depreciation | $0 | $317 | $634 | $951 | $1,268 | $1,585 | $1,902 | $2,219 | $2,536 | $2,853 | $3,170 | $3,487 | $3,804 |
Total Long-term Assets | $19,000 | $18,683 | $18,366 | $18,049 | $17,732 | $17,415 | $17,098 | $16,781 | $16,464 | $16,147 | $15,830 | $15,513 | $15,196 |
Total Assets | $105,000 | $99,621 | $91,701 | $79,651 | $69,007 | $58,464 | $50,316 | $43,590 | $37,249 | $32,476 | $30,582 | $26,666 | $22,888 |
Liabilities and Capital | Month 1 | Month 2 | Month 3 | Month 4 | Month 5 | Month 6 | Month 7 | Month 8 | Month 9 | Month 10 | Month 11 | Month 12 | |
Current Liabilities | |||||||||||||
Accounts Payable | $0 | $1,788 | $1,897 | $2,477 | $2,912 | $3,136 | $3,663 | $3,947 | $4,045 | $4,288 | $4,330 | $4,478 | $4,561 |
Current Borrowing | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $3,000 | $3,000 | $2,700 |
Other Current Liabilities | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
Subtotal Current Liabilities | $0 | $1,788 | $1,897 | $2,477 | $2,912 | $3,136 | $3,663 | $3,947 | $4,045 | $4,288 | $7,330 | $7,478 | $7,261 |
Long-term Liabilities | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
Total Liabilities | $0 | $1,788 | $1,897 | $2,477 | $2,912 | $3,136 | $3,663 | $3,947 | $4,045 | $4,288 | $7,330 | $7,478 | $7,261 |
Paid-in Capital | $125,000 | $125,000 | $125,000 | $125,000 | $125,000 | $125,000 | $125,000 | $125,000 | $125,000 | $125,000 | $125,000 | $125,000 | $125,000 |
Retained Earnings | ($20,000) | ($20,000) | ($20,000) | ($20,000) | ($20,000) | ($20,000) | ($20,000) | ($20,000) | ($20,000) | ($20,000) | ($20,000) | ($20,000) | ($20,000) |
Earnings | $0 | ($7,167) | ($15,197) | ($27,826) | ($38,906) | ($49,672) | ($58,347) | ($65,357) | ($71,796) | ($76,812) | ($81,748) | ($85,813) | ($89,374) |
Total Capital | $105,000 | $97,833 | $89,804 | $77,174 | $66,095 | $55,328 | $46,653 | $39,643 | $33,204 | $28,188 | $23,252 | $19,187 | $15,626 |
Total Liabilities and Capital | $105,000 | $99,621 | $91,701 | $79,651 | $69,007 | $58,464 | $50,316 | $43,590 | $37,249 | $32,476 | $30,582 | $26,666 | $22,888 |
Net Worth | $105,000 | $97,833 | $89,804 | $77,174 | $66,095 | $55,328 | $46,653 | $39,643 | $33,204 | $28,188 | $23,252 | $19,187 | $15,626 |
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A financial planning firm is a company that provides financial advising and planning services to individuals and businesses. Financial advisors offer advice on managing investments, insurance, mortgages, and other financial matters. If you’re looking to start your independent financial planning firm, there are a few key things you need to know.
In this article, we’ll walk you through the process of starting your own financial planning firm and provide tips for launching your business. On This Page:
How big is the financial planning & advice industry, what are the key sectors of the financial planning & advice industry, what external factors affect the financial planning & advice industry, who are the key competitors in the financial planning & advice industry, what are the key customer segments in the financial advice market, what are the typical startup costs for a new financial advisor, what are the key costs to launching a successful financial planning firm, is a financial advisor business profitable, what type of financial advisor business model should i choose, what are the keys to launching a new financial advisor business, starting a financial advisor business faqs, other helpful business plan articles & templates.
Importantly, a critical step in starting a financial planning business is to complete your business plan. To help you out, you should download Growthink’s Ultimate Financial Advisor Business Plan Template here .
Download our Ultimate Financial Advisor Business Plan Template here
The financial and investment advisor industry can be very competitive, so you have to find a way to set yourself apart from the rest of the investment advisers out there. Find your niche, and focus on it.
A few niches include:
Once you’ve identified your niche, it’s time to choose a method of financial planning you’re going to focus on. Here are the most popular styles:
Next, think about who you’re targeting. Your ideal audience will be the clients that value your services the most and are more likely to pay for them.
Some things to consider when choosing a target audience include:
Now it’s time to find out what your competition is up to in the financial advisory industry. Think about whom you’re going after and which companies offer services that might compete with yours.
Once you’ve set up your niche, chosen an investment style, identified your target audience, and found out what your competition is doing, it’s time to create a financial planner business plan for success.
To enhance your planning process, incorporating insights from a sample financial advisor business plan can be beneficial. This can provide you with a clearer perspective on industry standards and effective strategies, helping to solidify your own business approach.
Your business plan should include:
Be sure to include all of this information in a well-thought-out plan that will help you get funding from investors and convince clients that your financial services are the best choice.
The nature of a financial advisor business means you will need funding to provide initial marketing, advertising, and operational costs. This is generally done through personal investments by the founders or loans from local banks or other institutions interested in lending money to small businesses.
To get outside funding for your business, follow these steps:
Be prepared to answer questions about your financial services, your target audience, and the market in general; also be ready to explain how much startup funding you need and what it will be used for.
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With Growthink’s Ultimate Financial Advisor Business Plan Template you can finish your plan in just 8 hours or less!
Now that you have a financial planner business plan in place, it’s time to start marketing yourself. Begin by creating an online presence and using the Internet to attract potential clients for your services. You can start with these things:
Once you’ve started to build your online presence, start building relationships with other financial advisors in the business. Hang out in chat rooms or forums where they’re already congregating and offer advice whenever possible. This establishes you as an expert in the field to people who might need your services later on.
Building a name for yourself will take time, but starting a financial advisor business is rewarding and you’ll soon find yourself with plenty of new clients.
An elevator pitch is a 30-second explanation of your financial advisor business that you can use to introduce yourself to potential clients. Your investment advisor elevator pitch should highlight the unique aspects of your Financial Advisor business and immediately communicate what makes you stand out from other financial advisors in your Financial Advisor niche.
Focus on capturing attention as soon as possible. Your elevator pitch should be simple and straight to the point; you want your clients to remember what sets you apart from other financial advisors, not a long speech about how great you are.
Pitch yourself at networking events and financial advisor business startup seminars.
Once you’ve built up an online presence, it’s time to create a client acquisition plan that will help you meet your goals for getting new clients and start bringing in money. To develop this plan, identify your ideal client and decide how exactly you will attract them to your business:
Once you’ve identified the right clients and found the best way to attract them, it’s time to start filling those client coffers. You’ll be surprised at how much business can grow from word-of-mouth referrals alone, so don’t hesitate to ask satisfied clients for a referral whenever possible.
A happy client is a client who will come back for more services and tell their friends about your financial planning firm. You can stay in touch with clients through digital or paper newsletters, phone calls, text messages, social media, email blasts – whatever works best to keep you at the forefront of their minds.
The first sale is always the hardest, but after that client has purchased a service, you’ll find it much easier to sell them other services down the road. To start this process, create a basic financial plan for your clients; take time to sit down with each of them, identify their needs and goals, and develop an investment strategy that makes sense for their current financial state. You can also offer services like estate planning, tax preparation, and insurance to give your clients more options when they’re ready to expand their financial portfolios.
Setting goals is one of the most integral parts of operating a successful business, so it’s important to set clear, attainable goals for your financial advisor business. For example, if you want to grow your client base by attracting ten new clients in the first month of operation, start with smaller goals like attracting five or three new clients and work up from there so you know what to expect throughout the process.
Once you’ve set your initial client goals, develop a strategy for how you’ll measure your progress. Set up Google Analytics or another program to track how many people visit the website and social media presence of your financial planning firm so you can see which sources bring in the most traffic and clients. This will help guide future marketing efforts and help you see what’s really working when it comes to promoting your financial planning business.
Financial advisors are governed by strict legal and ethical standards, so it’s important to get enough training to stay in compliance with both local and federal laws. While many states allow financial planners to operate under their own licenses (and sometimes without any license at all), other states require financial planners to have a license from the Series 65 exam. If you live in one of these regulated states, be sure that your education and experience meet the standards set forth by the state: Finra .
The financial services industry is growing at a rapid pace and continues to grow despite the recent economic downturn. The industry is worth over $59.2 billion and is expected to grow by 4% every year over the next decade.
The financial services industry is made up of five main sectors:
The financial planning and advice industry is affected by external factors such as market performance, economic trends, and the overall state of the economy.
For example, advisors that focus on selling investments or providing investment services must consider the performance of the stock market. If the market is performing well and people feel good about their money, it’s likely they’ll invest more funds in stocks, which will affect how brokers make a living.
The other external factors that affect the financial planning profession are macroeconomic trends that affect the population’s confidence in the economy.
For example, during an economic recession, it’s important for financial advisors to understand that their clients may be more risk-averse, and not investing as much money into stocks or mutual funds would be wise.
On the other hand, if the economy is doing well and people are feeling confident about their financial stability, then it’s wise to invest more money into stocks.
The financial planning and advice industry is highly competitive, and there are over 130,000 financial advisors in the United States alone. Although many of these advisors work for large financial institutions such as banks and credit unions, many others run their own business full-time or on a part-time basis.
Some of the key competitors in the financial advising industry are:
The financial advising industry provides services to individuals of all income levels, but there are some key differences in the type of client each advisor typically deals with.
From growing family needs to save for retirement, financial advisors provide services that help clients meet their individual goals.
Financial advisors have two primary types of startup costs: the cost to set up a legal entity for their new company and ongoing costs that must be met in order to keep the business running.
If you want to set up a financial advisor business, you’ll need to create a legal entity for your company. Your startup costs will depend on how you choose to structure your company, but these options are the most common:
The other primary cost you’ll need to consider when starting a financial advisor business is how much it will cost to keep your company running on a monthly basis. These are some common expenses that every financial advisor has to pay:
The good news is that there are many different financial advisor business models you can choose from depending on what startup costs you’re able to cover. You can either start a full-service financial planning company, which will require more overhead because you’ll need to hire employees and freelancers, or you can start a fee-only financial planning company that only charges clients through the services they use.
The key costs you’ll need to cover when launching a successful financial planning company include:
Even though you’ll need to invest money initially, having your own financial planning company can save you thousands of dollars per month in fees, which means that advisors who go independent typically recoup their startup costs within three years. Plus, once you establish yourself as a success and gain clients, you’ll be able to cut back on your marketing expenses, which means that you’ll see a return on investment much sooner.
The amount of money you’ll make as a financial advisor depends on how much work you put into establishing your business and what financial advisor business model you adopt. Advisors who work with institutions and rely on investments to generate their income will generally earn more money annually compared to smaller financial advisory businesses.
When you launch a financial advisor business, you’ll need to choose between the following business models: fee-only financial planning, concierge service, and full-service.
The model you choose to adopt depends on the financial advisor business you establish. For example, if you plan to launch a fee-only financial planning business that offers high levels of personalized service, then you’ll probably want to choose the concierge service model for your business. If you’re more likely to attract prospective clients who are interested in investing their money with you, then you’ll likely want to choose the full-service financial advisor business model.
Once you’ve decided on a financial advisor business model and have gathered all of the necessary tools, it’s time to launch your new company. Below are some tips for a successful launch:
Financial Advisor Mavericks
To start a financial advisor business, you'll typically need at least two to three years of experience in the financial planning field. You can meet this requirement by holding various financial planning positions or taking relevant online courses and continuing education classes.
The best way to find financial planning leads is by utilizing your company website or social media pages. You can also track down prospects through online directories, referrals from friends, personal networking engagements, and cold calling techniques.
The primary benefit of launching your own financial advisor business is establishing control over how you make money. Aside from that, there are many other benefits including building lasting relationships with clients, gaining greater flexibility in your work schedule, and enjoying the satisfaction that comes with helping others achieve their financial goals.
One of the main risks associated with launching a financial advisor business is going into debt. You'll want to have at least six months' worth of living expenses saved up as well as an emergency fund in place to help balance this risk out. Another risk to consider is not having enough time to focus on your company due to the demands of your full-time job.
A few well-known, highly successful financial advisors include Charles Schwab, Kenneth Fisher, and David Bach. These advisors have written numerous books on their financial strategies and how they can be applied to everyday life.
In order to become a financial advisor, you'll need to have a sound financial advisor business plan in place. It will help you determine how much money you'll need to make the annual salary you desire, your marketing strategies going forward, and how much money you can spend on expenses each month.
In order to become a registered investment advisor, you'll need to meet certain requirements regarding your education and professional background as well as pass the Series 7 exam. You can find out more about the requirements by visiting websites such as Investment Adviser Association or FINRA.
You can download our financial advisor business plan PDF template here. This is a business plan template you can use in PDF format.
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This financial plan projections template comes as a set of pro forma templates designed to help startups. The template set includes a 12-month profit and loss statement, a balance sheet, and a cash flow statement for you to detail the current and projected financial position of a business. . Download Startup Financial Projections Template.
7. Build a Visual Report. If you've closely followed the steps leading to this, you know how to research for financial projections, create a financial plan, and test assumptions using "what-if" scenarios. Now, we'll prepare visual reports to present your numbers in a visually appealing and easily digestible format.
The financial analysis section should be based on estimates for new businesses or recent data for established businesses. It should include these elements: Balance sheet: Your assumed and anticipated business financials, including assets, liabilities, and equity. Cash-flow analysis: An overview of the cash you anticipate will be coming into ...
Tips on Writing a Business Plan. 1. Be clear and concise: Keep your language simple and straightforward. Avoid jargon and overly technical terms. A clear and concise business plan is easier for investors and stakeholders to understand and demonstrates your ability to communicate effectively. 2.
Here is everything you need to include in your financial plan, along with optional performance metrics, funding specifics, mistakes to avoid, and free templates. Key components of a financial plan. A sound financial plan is made up of six key components that help you easily track and forecast your business financials. They include your:
The rest, while still useful, go a bit lighter on guidance in favor of tailoring the plan to a specific industry. Explore: PandaDoc's business plan template library. 5. Canva — Pitch with your plan. Canva is a great option for building a visually stunning business plan that can be used as a pitch tool.
Use the numbers that you put in your sales forecast, expense projections, and cash flow statement. "Sales, lest cost of sales, is gross margin," Berry says. "Gross margin, less expenses, interest ...
BUSINESS FINANCIAL PLAN 1. FINANCIAL OVERVIEW 2. ... Page 3 4. BREAK-EVEN ANALYSIS . Page 4 5. FINANCIAL STATEMENTS 5.1 PRO FORMA PROFIT AND LOSS STATEMENT . Page 5 5.2 PRO FORMA CASH FLOW STATEMENT . Page 6 5.3 PRO FORMA BALANCE SHEET . Page 7 DISCLAIMER Any articles, templates, or information provided by Smartsheet on the website are for ...
There are three main financial statements that you will need to include in your business plan financial projections: 1. Income Statement Projection. The income statement projection is a forecast of your company's future revenues and expenses. It should include line items for each type of income and expense, as well as a total at the end.
This Financial Business Plan template is designed to help financial analysts, business owners, and entrepreneurs create a comprehensive business plan that includes a financial analysis. It will provide you with the tools needed to make informed decisions and to keep track of your progress towards achieving your financial goals. 1. Define clear ...
Use a financial projections template to start planning and working on your own projections. This template includes multiple financial worksheets like a balance sheet, cash flow statement, income statement, and more. Download Financial Projections Excel Template. Create Your Financial Projections with Smartsheet.
Personal Finance: Individuals can use financial analysis templates to manage personal finances, track expenses, and plan for future financial goals. Business Planning: These templates can aid in creating a solid business plan by providing a detailed financial projection, helping to attract investors or secure loans.
1. Create Your Executive Summary. The executive summary is a snapshot of your business or a high-level overview of your business purposes and plans. Although the executive summary is the first section in your business plan, most people write it last. The length of the executive summary is not more than two pages.
Finance Templates. From creating a startup budget to managing cash flow for a growing business, keeping tabs on your business's finances is essential to success. The templates below will help you monitor and manage your business's financial situation, create financial projections and seek financing to start or grow your business. Template.
The financial section of your business plan determines whether or not your business idea is viable and will be the focus of any investors who may be attracted to your business idea. The financial section is composed of four financial statements: the income statement, the cash flow projection, the balance sheet, and the statement of shareholders ...
Most business plans include at least five basic reports or projections: Balance Sheet: Describes the company cash position including assets, liabilities, shareholders, and earnings retained to ...
Combining market research and financial analysis, a professional business plan helps startup CEOs and potential investors determine if the company can compete in the target market. ... Business plan templates from PandaDoc can help you reach an effective go-to-market strategy even faster by asking you to provide all the relevant information you ...
The business plan financials Excel template automatically creates a cash flow statement and a statement of sources/uses of funds. The model links them to the numbers from the income statement and the balance sheet. So, even if you are a seasoned professional financial modeler, you will benefit from using the template as it will save several ...
Most business plans also include financial forecasts for the future. These set sales goals, budget for expenses, and predict profits and cash flow. A good business plan is much more than just a document that you write once and forget about. It's also a guide that helps you outline and achieve your goals. After completing your plan, you can ...
Creating a financial analysis for business plan is an easy process with the proper tools and resources. A typical financial analysis includes budgeting, cash flow analysis, performance evaluation, debt obligations, cost-benefit analyses, and financial modeling. To help make this process simpler, here is a template that businesses can use to ...
Analyze results and adjust investments accordingly. Fill in the form to get your tool. It's 100% free. We allow you to use these templates only as part of your business activities, but we do not guarantee that they fit your needs. Unfortunately, we do not offer any assistance. You are responsible for the content of the documents you create ...
Data Analysis: Leverage ClickUp's powerful features such as Dashboards, Tables, and Integrations to analyze financial data, create charts and graphs, and integrate with external tools for in-depth financial analysis. With ClickUp's Business Plan Template for Financial Analysts, you can streamline your financial analysis process, increase ...
A business plan sells the viability of a business venture, outlining why it will be profitable. It includes details on the business concept, market analysis, operations, financial projections, and strategies for success. What are the 3 main purposes of a business plan? 1.To clarify your plans for growth 2.To understand your financial needs 3.To ...
Writing a business plan doesn't need to be daunting; it's an opportunity to explore the possibilities of your future business. When tackling your business plan, follow these simple steps rather than drowning in industry jargon. Download my free business plan template to get started.
It includes market analysis, product details, and financial strategies to achieve business goals. Investor's Compass: A well-crafted ecommerce business plan is crucial for attracting investment, showcasing your business model, revenue generation plans, and overall strategy to build brand value and equity in the competitive market.
Creating a financial plan for your small business. To set your small business up for success, you need a solid financial plan that includes both short-term and long-term business and financial goals, as well as strategies to achieve them. Then you can make informed decisions, access funding, and prepare for risks. Here are some tips to get you ...
A well-crafted business plan for lawyers means getting all the essentials in place to guide your firm's growth and success. Get your executive summary, firm description, market analysis, marketing and sales strategy, operations plan, financial plan, and legal compliance all covered before embarking.
Create a thriving design enterprise with a robust business plan. Learn essential strategies for market analysis, branding, and financial planning.
Green Investments (GI) is a financial service company that focuses on stocks of environmentally responsible companies. The Washington-based L.L.C. is lead by Sarah Lewis and Steve Burke. GI uses financial research purchased from Bear Stearns and in-house environmental responsibility analysis to make recommendations to clients. Services.
Other Helpful Business Plan Articles & Templates; Importantly, a critical step in starting a financial planning business is to complete your business plan. To help you out, you should download Growthink's Ultimate Financial Advisor Business Plan Template here. Download our Ultimate Financial Advisor Business Plan Template here