I. Executive Summary
This Section's Contents
You can download our business plan template (including a full, customizable financial model) to your computer here.
Business Overview
[Company Name] specializes in alternative investing using money and assets pooled from accredited investors, with the goal of maximizing returns and minimizing risk. [Company Name] employs fund managers experienced in using a range of strategies to earn above-average returns. Generating superior, risk-adjusted investment returns is the main driving factor for the success of [Company Name].
Techniques
[Company Name] will provide pooled fund investment services that seek to make high returns, using the following techniques:
- Rapid price discovery
- Mathematical and statistical processing
- Risk measurement and control
- Active trading
Customer Focus
[Company Name] will primarily serve high net worth individuals in the [location] metro area. The demographics of these customers are as follows:
- 345,600 high net worth individuals
- 7.52% of households in the state are accredited investors
Management Team
[Company Name] is headed by its founder, [Founder’s Name] who graduated from [University] with a degree in Business Administration. Prior to starting [Company Name], [Founder’s Name] worked as an investment manager for [x] years at an investment firm where he was able to learn the ins and outs of the investment industry. This experience will be the company’s most valuable asset.
Success Factors
[Company Name] is uniquely qualified to succeed for the following reasons:
- [Company Name] will fill a specific market niche, providing investment options for the large population of high net worth individuals in the area.
- In addition, we have surveyed the target market and received extremely positive feedback saying that they explicitly want to make use of our services when launched.
- The management team has a track record of success in investment services.
Financial Highlights
[Company Name] is seeking a total funding of $250,000 of debt capital to open its hedge fund business. The capital will be used for location build-out, hiring initial employees, marketing expenses and working capital.
Specifically, these funds will be used as follows:
- Headquarters design/build: $50,000
- Working capital: $200,000 to pay for marketing, salaries, and lease costs until [Company Name] reaches break-even
Topline projections over the next five years are as follows:
| Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | |
|---|---|---|---|---|---|
| Revenue | $738,000 | $1,716,272 | $2,007,297 | $2,331,125 | $2,694,524 |
| Total Expenses | $639,595 | $1,021,515 | $1,110,127 | $1,190,308 | $1,273,715 |
| EBITDA | $98,405 | $694,757 | $897,169 | $1,140,817 | $1,420,809 |
| Depreciation | $16,560 | $16,560 | $16,560 | $16,560 | $16,560 |
| EBIT | $81,845 | $678,197 | $880,609 | $1,124,257 | $1,404,249 |
| Interest | $18,554 | $16,235 | $13,916 | $11,596 | $9,277 |
| Pre Tax Income | $63,291 | $661,962 | $866,694 | $1,112,661 | $1,394,972 |
| Income Tax Expense | $22,152 | $231,687 | $303,343 | $389,431 | $488,240 |
| Net Income | $41,139 | $430,276 | $563,351 | $723,230 | $906,732 |
