Question

Please, give me a full business plan for a brokerage financial services company?

Answer 1

Step 1 defined objectives:

A brokerage firm acts as a middleman between willing buyers and sellers in transactions, especially in the share market. Hence a brokerage firm facilitates holding securities that can be sold online. These firms receive commissions or fees as their income based on the transactions being fulfilled.

The business plan will be as follows:

1. Define the capital requirements:

Many countries have a minimum capital requirement statutorily. While the firm may have additional capital , the minimum capital cannot be breached below. Hence before starting the firm, the capital needs to be brought in.

2. Understanding the regulation and compliance

3. Define the operational Expenses :

a. Office Space rental

b. No of employees and average cost

c. Investments in infrastructure

d. Marketing Budget

e. Other operating costs - including Electircity, Utilities etc.

4. Technology requirements

a. Server requirements

b. Cloud based availability of data

c. Data security costs

d. Platform for payments and transactions

5. Revenue targets be defined, and target to when the firm will be cash flow positive

6. Profitability analysis, when the capital will start being paid back - by the profits of the firm. Detailed projections of income statement and cash flows.