Need a consultation? Call now:
Talk to our experts:
- Business Plan for Investors
Bank/SBA Business Plan
- Operational/Strategic Planning
- E1 Treaty Trader Visa
- E2 Treaty Investor Visa
- Innovator Founder Visa
- UK Start-Up Visa
- UK Expansion Worker Visa
- Manitoba MPNP Visa
- Start-Up Visa
- Nova Scotia NSNP Visa
- British Columbia BC PNP Visa
- Self-Employed Visa
- OINP Entrepreneur Stream
- LMIA Owner Operator
- ICT Work Permit
- LMIA Mobility Program – C11 Entrepreneur
- USMCA (ex-NAFTA)
- Franchise Business Planning
- Landlord Business Plan
- Nonprofit Start-Up Business Plan
- USDA Business Plan
- Online Boutique
- Mobile Application
- Food Delivery
- Real Estate
- Business Continuity Plan
- Buy Side Due Diligence Services
- ICO whitepaper
- ICO consulting services
- Confidential Information Memorandum
- Private Placement Memorandum
- Feasibility study
- Fractional CFO
- How it works
- Business Plan Templates
Trading Business Plan
Published Mar.29, 2024
Updated May.04, 2024
By: Alex Silensky
Average rating 5 / 5. Vote count: 6
No votes so far! Be the first to rate this post.
Table of Content
According to a report, 13% of day traders maintain consistent profitability over six months, and a mere 1% succeed over five years. This is primarily due to inadequate planning and undercapitalization. A well-crafted trading business plan can help you avoid these pitfalls, and this article will guide you.
In this article, you’ll learn:
- The current trends and growth forecasts in the stock trading industry
- A breakdown of the costs involved in starting a trading company
- The key components of a trading business plan (with a trading business plan example)
- Strategies for securing funding and overcoming the barriers to entry
By the end of this article, you’ll understand what it takes to create a business plan for an investment company , positioning your trading business for long-term success in this lucrative but highly competitive industry.
Pros and Cons of Trading Company
Let’s explore the pros and cons associated with running a trading company before diving into the specifics of a trading site business plan. Understanding them will help you make informed decisions:
- Potential for significant profits.
- Flexibility in terms of time and location.
- Opportunity for continuous learning and skill development.
- High risk due to market volatility.
- Emotional stress and psychological pressure.
- Requirement for constant vigilance and discipline.
Trading Industry Trends
Industry size and growth forecast.
According to a report , the global stock trading and investing applications market size was at around $37.27 billion in 2022 and projects to grow at a CAGR of 18.3% from 2023 to 2030 (Source: Grand View Research). The following factors drive this growth:
- Increasing internet penetration
- Rising disposable income
- Growing awareness of investment opportunities.
(Image Source: Grand View Research)
The Services
As per our private equity firm business plan , a stock trading business offers various services, including:
- Facilitating Trades on behalf of clients
- Algorithmic trading services to automatically execute trades
- Market Insights (research reports, market analysis, and economic forecasts)
- Technical and Fundamental Analysis (price charts, historical data, and company fundamentals)
- Investment Recommendations
- Seminars and Webinars
- Online Courses
- Demo Accounts
- Portfolio Diversification
- Stop-Loss Orders
- Hedging Strategies
- Direct Market Access (DMA)
- Global Market Access
- Trading Platforms
- Mobile Apps
- High-Frequency Trading (HFT)
- Legal and Compliance Services
- Educate clients about Risk Disclosure
How Much Does It Cost to Start a Trading Company
According to Starter Story, you can expect to spend an average of $12,272 for a stock trading business. Some key startup costs include:
| Cost Category | Estimated Cost |
| Legal and Registration Fees | $1,500 |
| Website and Online Presence | $3,000 |
| Trading Software and Tools | $4,000 |
| Office Setup | $2,000 |
| Marketing and Advertising | $1,000 |
| Insurance | $500 |
| Initial Working Capital | $2,000 |
| Total Cost to Start a Trading Company | $14,000 |
How Much Can You Earn from a Trading Business?
Earnings in the trading business can vary significantly and depend heavily on:
- Trading strategy and approach
- Market conditions and volatility
- Risk management techniques
- Capital allocation and leverage
While specific income figures are difficult to predict due to these factors. However, here are some statistics showing the earning potential of a stock trading business:
- According to Investopedia, only around 5% to 20% of day traders consistently make money.
- According to Indeed Salaries, the average base salary for a stock trader in the U.S. is $80,086 per year.
- 72% of day traders ended the year with financial losses, according to FINRA.
- Among proprietary traders, only 16% were profitable, with just 3% earning over $50,000. (Source: Quantified Strategies)
What Barriers to Entry Are There to Start a Trading Company
Barriers to entry into the stock trading business include:
- Regulatory Requirements: Obtaining necessary licenses and registrations from governing bodies like the SEC and FINRA is a complex and time-consuming process.
- Capital Requirements: Trading activities require significant capital to manage risks and leverage opportunities, which can be a substantial challenge for new or small firms.
- Technological Expertise: Developing or acquiring sophisticated trading platforms, algorithms, and data analysis tools is costly and requires specialized expertise.
- Market Knowledge and Experience: Gaining in-depth knowledge and practical experience in the complex and dynamic financial markets takes years of dedicated study.
- Competitive Landscape: Breaking into the highly competitive trading industry dominated by established firms and well-funded proprietary trading desks is challenging for new entrants.
You can overcome these barriers by developing unique strategies, leveraging innovative technologies, and offering competitive and specialized services to differentiate yourself in the market. Do check our financial advisor business plan to learn more.
Creating a Trading Business Plan
A well-researched stock trading business plan is crucial to start a trading business. A general trading company business plan is a comprehensive document that defines your goals, strategies, and the steps needed to achieve them. It helps you stay organized and focused and increases your chances of securing funding if you plan to seek investors or loans.
Steps to Write a Trading Business Plan
You can use a business plan template for a trading company or follow these steps to prepare a business plan for a personal trading business:
Step 1: Define Your Goals and Investment Objectives
Step 2: Conduct Market Research
Step 3: Develop Your Trading Strategy
Step 4: Establish Your Business Structure
Step 5: Develop a Financial Plan
Step 6: Outline Your Operational Procedures
Step 7: Create a Marketing and Growth Strategy
Step 8: Implement Risk Management
Step 9: Create an Exit Strategy
What to Include in Your Trading Business Plan
Executive summary, company overview.
- Market Analysis
- Trading Strategy and Risk Management
- Operations and Technology
- Financial Projections
- Management and Organization
- Appendices (e.g., research, charts, legal documents)
Here’s an online trading business plan sample of ABC Trading:
ABC Trading, a recently established stock trading firm, provides online trading services to individuals and institutional investors. Key highlights of our business include:
- Vision – Becoming a leading online trading platform with a wide range of trading products and services.
- Values – Our core focus is innovation, excellence, integrity, and customer satisfaction.
- Target market – Tech-savvy and risk-tolerant investors looking for alternative ways to invest their money and diversify their portfolios.
- Revenue model – Commissions and fees for each trade, as well as subscription fees for premium features and services.
- Financial goal – Break even in the second year of operation and generate a net profit of $1.2 million in the third year.
ABC Trading is seeking $500,000 seed funding to launch its platform, acquire customers, and expand its team.
Company Name: ABC Trading
Founding Date: January 2024
Location: Delaware, USA
Registration: Limited Liability Company (LLC) in the state of New York
Regulated By: Securities and Exchange Commission (SEC) and the Financial Industry Regulatory Authority (FINRA)
Our team comprises seasoned professionals with diverse finance, mathematics, computer science, and engineering backgrounds.
Marketing Plan
Marketing Strategy: We aim to leverage online channels, such as social media, blogs, podcasts, webinars, and email newsletters, to create awareness, generate leads, and convert prospects into customers.
Marketing Objectives:
- Reach 100,000 potential customers in the first year of operation
- Achieve a 10% conversion rate from leads to customers
- Retain 80% of customers in the first year and increase customer lifetime value by 20% in the second year
The customer profile of ABC Trading includes the following characteristics:
- Age: 25-65 years old
- Gender: Male and female
- Income: Above $100,000 per year
- Education: Bachelor’s degree or higher
- Occupation: Professionals, entrepreneurs, executives, or retirees
- Location: US or international
- Trading experience: Intermediate to advanced
- Trading goals: Income generation, capital appreciation, risk diversification, or portfolio optimization
- Trading preferences: Stocks, options, or both
- Trading style: Technical, trend following, or volatility trading
- Trading frequency: Daily, weekly, or monthly
- Trading risk: Low, medium, or high
Marketing Tactics:
- Create and distribute engaging and informative content on social media platforms
- Offer free trials, discounts, referrals, and loyalty programs
- Collect and analyze customer feedback and data to improve and personalize the customer experience
- Partner with influencers, experts, and media outlets in the trading and finance niche
Marketing Budget:
We will allocate $10,000 for our marketing campaign, which we will use for the following purposes:
Operations Plan
ABC Trading’s operations plan ensures the smooth and efficient functioning of the company’s platform and services and compliance with the relevant laws and regulations.
Operation Objectives:
- Maintain a 99% uptime and availability of the company’s platform and services
- Ensure the security and privacy of the company’s and customers’ data and funds
- Provide timely and professional customer support and service
Operation Tactics:
- Use cloud-based servers and services
- Implement encryption, authentication, and backup systems
- Hire and train qualified and experienced customer service representatives and technicians
- Monitor and update the company’s platform and services regularly
- Follow the best practices and standards of the industry and adhere to the applicable laws and regulations
Operation Standards:
Financial Plan
ABC Trading’s financial plan is to provide a realistic and detailed projection of the company’s income, expenses, and cash flow for the next three years, as well as the key financial indicators and assumptions that support the projection.
Financial Objectives:
- Achieve a positive cash flow in the second year of operation.
- Reach a break-even point in the second year of operation.
- Generate a net profit of $1.2 million in the third year of operation.
- Maintain a healthy financial ratio of current assets to current liabilities of at least 2:1.
Financial Assumptions:
- Launch its platform and services in the first quarter of 2024
- Acquire 10,000 customers in the first year, 20,000 customers in the second year, and 30,000 customers in the third year
- Average revenue per customer will be $50 per month, based on the average number and size of trades and the subscription fees
- Average operating expense per customer will be $10 per month, based on the average cost of salaries, rent, utilities, marketing, and legal fees
- Pay a 25% tax rate on its net income
- Reinvest 50% of its net income into the company’s growth and development
Projected Income Statement:
| Fiscal Year | 2024 | 2025 | 2026 |
| Sales Revenue | $10,000,000 | $12,000,000 | $14,400,000 |
| Cost of Goods Sold | $6,000,000 | $7,200,000 | $8,640,000 |
| Gross Profit | $4,000,000 | $4,800,000 | $5,760,000 |
| Operating Expenses | $2,500,000 | $3,000,000 | $3,600,000 |
| Operating Income | $1,500,000 | $1,800,000 | $2,160,000 |
| Interest Expense | $100,000 | $90,000 | $80,000 |
| Income Before Taxes | $1,400,000 | $1,710,000 | $2,080,000 |
| Income Tax Expense | $420,000 | $513,000 | $624,000 |
| Net Income | $980,000 | $1,197,000 | $1,456,000 |
Projected Cash Flow Statement
| Fiscal Year | 2024 | 2025 | 2026 |
| Cash Flow from Operating Activities | |||
| Net Income | $980,000 | $1,197,000 | $1,456,000 |
| Adjustments for Non-Cash Items | |||
| Depreciation and Amortization | $200,000 | $220,000 | $242,000 |
| Changes in Working Capital | |||
| Accounts Receivable | -$200,000 | -$240,000 | -$288,000 |
| Inventory | -$300,000 | -$360,000 | -$432,000 |
| Accounts Payable | $150,000 | $180,000 | $216,000 |
| Net Cash Provided by Operating Activities | $830,000 | $997,000 | $1,194,000 |
| Cash Flow from Investing Activities | |||
| Capital Expenditures | -$500,000 | -$550,000 | -$605,000 |
| Net Cash Used in Investing Activities | -$500,000 | -$550,000 | -$605,000 |
| Cash Flow from Financing Activities | |||
| Proceeds from Borrowing | $200,000 | $0 | $0 |
| Repayment of Borrowing | -$110,000 | -$110,000 | -$110,000 |
| Dividends Paid | -$200,000 | -$240,000 | -$288,000 |
| Net Cash Used in Financing Activities | -$110,000 | -$350,000 | -$398,000 |
| Net Increase in Cash | $220,000 | $97,000 | $191,000 |
| Cash at Beginning of Period | $500,000 | $720,000 | $817,000 |
| Cash at End of Period | $720,000 | $817,000 | $1,008,000 |
Projected Balance Sheet
| Fiscal Year | 2024 | 2025 | 2026 |
| Assets | |||
| Current Assets | |||
| Cash | $720,000 | $817,000 | $1,008,000 |
| Accounts Receivable | $800,000 | $960,000 | $1,152,000 |
| Inventory | $900,000 | $1,080,000 | $1,296,000 |
| Total Current Assets | $2,420,000 | $2,857,000 | $3,456,000 |
| Non-Current Assets | |||
| Property, Plant and Equipment | $2,500,000 | $2,950,000 | $3,495,000 |
| Less: Accumulated Depreciation | -$200,000 | -$420,000 | -$662,000 |
| Net Property, Plant and Equipment | $2,300,000 | $2,530,000 | $2,833,000 |
| Total Non-Current Assets | $2,300,000 | $2,530,000 | $2,833,000 |
| Total Assets | $4,720,000 | $5,387,000 | $6,289,000 |
| Liabilities and Equity | |||
| Current Liabilities | |||
| Accounts Payable | $750,000 | $900,000 | $1,080,000 |
| Short-Term Debt | $200,000 | $90,000 | $0 |
| Total Current Liabilities | $950,000 | $990,000 | $1,080,000 |
| Non-Current Liabilities | |||
| Long-Term Debt | $900,000 | $800,000 | $700,000 |
| Total Non-Current Liabilities | $900,000 | $800,000 | $700,000 |
| Total Liabilities | $1,850,000 | $1,790,000 | $1,780,000 |
| Equity | |||
| Common Stock | $1,000,000 | $1,000,000 | $1,000,000 |
| Retained Earnings | $1,870,000 | $2,597,000 | $3,509,000 |
| Total Equity | $2,870,000 | $3,597,000 | $4,509,000 |
| Total Liabilities and Equity | $4,720,000 | $5,387,000 | $6,289,000 |
Fund a Trading Company
To successfully establish and operate a trading company, raising funds to finance daily operations and business expansion is crucial. There are different ways with their advantages and disadvantages:
1. Self-funding (Bootstrapping)
Self-funding, also known as bootstrapping, is when the founder or owner of the trading company uses their own personal savings, family business ideas , assets, or income to finance the business. This is the most common and simplest way to fund a trading company, especially in the early stages.
- Complete ownership and control
- Flexibility in decision-making
- Potential for higher long-term returns
- Limited access to capital
- Personal financial risk
- Slower growth potential
2. Debt Financing
Debt financing involves borrowing money from lenders, such as banks, credit unions, or microfinance institutions, to fund the trading company’s operations. The borrowed funds must be repaid with interest over a specified period.
- Retain ownership and control
- Potential tax benefits from interest deductions
- Disciplined approach due to repayment obligations
- Debt burden and interest payments
- Collateral requirements and personal guarantees
- Difficulty in securing financing for startups
3. Angel Investors
Angel investors are wealthy individuals who invest their own money into early-stage or high-potential trading companies in exchange for equity or convertible debt. Angel investors typically provide smaller funding than venture capitalists and offer mentorship, guidance, and access to their network.
- Access to capital and industry expertise
- Potential for additional mentorship and guidance
- Lower risk compared to traditional investors
- Dilution of ownership and control
- Potential for conflicting visions and expectations
- Limited resources compared to larger investors
4. Venture Capital (VC) Funding
Venture capital firms are professional investment firms that provide capital to high-growth startups in exchange for equity ownership. They typically invest large sums of money and are active in the company’s management and strategic direction.
- Access to substantial capital for growth
- Expertise and industry connections from the VC firm
- Validation and credibility for the business
- Significant dilution of ownership and control
- Intense pressure for rapid growth and return on investment
Depending on your business model, goals, and needs, you may also consider other options, such as grants, subsidies, partnerships, etc. Ensure to check for relevant documents, like the hedge fund private placement memorandum . The best way to fund your trading company is the one that suits your situation and preferences.
OGSCapital: Your Strategic Partner for Business Success
At OGSCapital, we specialize in professional business plans that empower startups, established companies, and visionary entrepreneurs. With over 15 years of experience, our seasoned team combines financial acumen, industry insights, and strategic thinking to craft comprehensive plans tailored to your unique vision. Whether you’re seeking funding, launching a new venture, or optimizing your existing business, we’ve got you covered.
If you have any further questions regarding how to write a business plan for your trading business, feel free to contact us. Our team at OGSCapital is here to support you on your entrepreneurial journey. You can also check our hedge fund business plan sample here.
Download Trading Business Plan Template in PDF
Frequently Asked Questions
What does a trading business include?
A trading business involves trading stocks and other financial instruments under a legal business structure. It includes:
- Market analysis
- Trading strategy
- Risk management
How does a trading company work?
A stock trading company facilitates the buying and selling of stocks (shares) on behalf of investors. These companies operate within stock exchanges, executing trades based on specific trading strategies.
OGSCapital’s team has assisted thousands of entrepreneurs with top-rate business plan development, consultancy and analysis. They’ve helped thousands of SME owners secure more than $1.5 billion in funding, and they can do the same for you.
Bowling Alley Business Plan Sample
Nightclub Business Plan (2024): A Comprehensive Guide
Rabbit Farming Business Plan
Beverages Business Plan
Private Schools Business Plan
Business Plan for a Lounge
Any questions? Get in Touch!
We have been mentioned in the press:
Leave a Reply Cancel reply
Your email address will not be published. Required fields are marked *
Save my name, email, and website in this browser for the next time I comment.
Search the site:
Trading Company Business Plan
Welcome to our blog post on the essential elements of a trading company business plan. Whether you are just starting out or looking to expand your current trading operations, having a well-defined business plan is crucial for success in this competitive industry.
Trading companies play a vital role in the global economy by facilitating the exchange of goods and services between businesses and consumers across borders. From importing and exporting products to acting as intermediaries in the supply chain, trading companies have the potential to thrive in a variety of industries.
In this blog post, we will delve into the key components of a trading company business plan. We will explore the importance of market analysis, setting up your trading company, developing a marketing and sales strategy, and financial planning and management. By understanding these aspects, you will be equipped with the knowledge and tools necessary to create a comprehensive and effective business plan for your trading company.
First, we will discuss the importance of market analysis for a trading company. This involves understanding your target market and identifying potential customers. Additionally, analyzing your competitors will give you insight into the competitive landscape and help you differentiate your trading company.
Next, we will explore the steps involved in setting up your trading company. This includes choosing a suitable location, obtaining necessary permits and licenses, and setting up your supply chain. The success of your trading company relies on these foundational elements, as they determine your operational efficiency and ability to deliver products to your customers.
Once your trading company is established, it is crucial to develop a strong marketing and sales strategy. We will delve into the process of developing a marketing plan, identifying sales channels, and building customer relationships. These strategies will help you effectively promote your products and services and attract a loyal customer base.
Lastly, we will address the financial aspects of running a trading company. Estimating start-up costs, forecasting sales and profits, and understanding cash flow management are all essential for the financial stability and growth of your trading company. We will provide insights and tips on how to effectively manage your finances to ensure long-term success.
Whether you are a seasoned trader or a newcomer to the world of trading companies, this blog post will provide valuable information and guidance to help you create a robust business plan. So, let’s dive in and explore the intricacies of the trading company business plan together.
Introduction: Understanding the Business of Trading
Trading is a fundamental activity that has been part of human civilization for centuries. From ancient barter systems to modern global markets, the business of trading has evolved significantly. In this section, we will provide a comprehensive overview of the trading industry, its significance in the global economy, and the various types of trading companies that exist today.
The Evolution of Trading
Trading has played a pivotal role in the development of civilizations throughout history. It has enabled the exchange of goods, services, and ideas between different communities, fostering economic growth and cultural exchange. In ancient times, traders traveled long distances, often across treacherous terrain and seas, to bring valuable commodities to distant markets. This facilitated the establishment of trade routes such as the Silk Road and maritime trade networks.
Over time, trading practices have evolved with advancements in transportation, communication, and technology. The emergence of financial markets and the advent of electronic trading platforms have revolutionized the way trading is conducted. Today, trading companies operate on a global scale, facilitating the movement of goods and services across borders.
The Role of Trading Companies
A trading company acts as an intermediary in the supply chain, connecting producers and manufacturers with consumers or other businesses. These companies engage in various trading activities, including importing, exporting, wholesale, distribution, and retail. They play a crucial role in bridging the gap between producers and end-users, ensuring the efficient flow of goods and services.
Trading companies can specialize in specific industries or operate across multiple sectors. Some focus on commodities such as oil, metals, agricultural products, or minerals, while others deal with consumer goods, electronics, machinery, or textiles. The nature of the trading company’s specialization determines its target market, supply chain requirements, and business strategies.
Benefits and Challenges of the Trading Business
Operating a trading company offers numerous benefits, including the potential for high profits, global market reach, and opportunities for diversification. Trading companies can take advantage of price fluctuations, arbitrage opportunities, and market inefficiencies to generate revenue. They also provide valuable services to businesses by simplifying the complex process of sourcing, logistics, and distribution.
However, the trading business is not without its challenges. Intense competition, fluctuating market conditions, regulatory complexities, and supply chain risks can pose significant obstacles. Successful trading companies need to stay informed about market trends, maintain strong relationships with suppliers and customers, and adapt swiftly to changing economic and geopolitical conditions.
Types of Trading Companies
Trading companies can take various forms depending on their structure, operational focus, and ownership. Some common types of trading companies include:
General Trading Companies : These companies engage in a wide range of trading activities across multiple sectors. They have diversified portfolios and often operate on a global scale.
Commodity Trading Companies : Specializing in specific commodities such as oil, gas, metals, or agricultural products, these companies trade in bulk quantities and often have expertise in commodity markets.
Export Trading Companies : These companies primarily focus on exporting goods manufactured within their home country to international markets.
Import Trading Companies : Import trading companies specialize in sourcing and importing products from overseas suppliers to meet the demand of local markets.
Wholesale and Distribution Companies : These companies act as middlemen, purchasing goods in bulk from manufacturers and selling them to retailers or other businesses.
Understanding the different types of trading companies will help you identify your niche, define your target market, and develop a focused business strategy.
In the next section, we will delve into the market analysis for a trading company, which is crucial for understanding your target market, identifying potential customers, and analyzing your competitors.
Market Analysis for a Trading Company
Market analysis is a critical component of a trading company business plan. It involves gathering and analyzing data to understand the dynamics of your target market, identify potential customers, and assess the competitive landscape. In this section, we will explore the key steps involved in conducting a comprehensive market analysis for your trading company.
Understanding Your Target Market
To effectively establish and grow your trading company, it is essential to have a deep understanding of your target market. This involves identifying the specific industry or industries you will operate in and delving into the characteristics of your potential customers. Consider factors such as demographics, geographic location, purchasing behavior, and preferences. By developing a clear profile of your target market, you can tailor your marketing and sales strategies to effectively reach and engage potential customers.
Identifying Potential Customers
Once you have defined your target market, the next step is to identify potential customers within that market. This involves researching businesses or individuals who may have a need for the products or services you plan to trade. Look for indicators such as the size of the market, growth trends, and the presence of competitors. Identify key players and potential customers who align with your trading company’s offerings and value proposition.
Analyzing Your Competitors
Understanding the competitive landscape is crucial for the success of your trading company. Analyze your competitors to gain insights into their strengths, weaknesses, and market positioning. Identify their target markets, pricing strategies, distribution channels, and marketing tactics. This analysis will help you identify gaps in the market that you can exploit, differentiate your offerings, and develop strategies to gain a competitive advantage.
Conducting Market Research
Market research plays a vital role in gathering data and insights that inform your market analysis. It involves collecting both primary and secondary data to understand market trends, customer preferences, and industry dynamics. Primary research methods may include surveys, interviews, focus groups, or observation. Secondary research involves analyzing existing data from industry reports, trade publications, government sources, and online databases. By conducting thorough market research, you can make informed decisions and validate your business assumptions.
Assessing Market Trends and Opportunities
Stay updated on the latest market trends and identify emerging opportunities within your target industry. Monitor factors such as technological advancements, regulatory changes, consumer behavior shifts, and global economic conditions. By staying ahead of the curve, you can adapt your trading strategies, capitalize on new opportunities, and mitigate potential risks.
By conducting a comprehensive market analysis, you will gain valuable insights into your target market, potential customers, and competitors. This information will help you develop effective marketing and sales strategies, position your trading company in the market, and make informed business decisions.
In the next section, we will explore the steps involved in setting up your trading company, including choosing a suitable location, obtaining necessary permits and licenses, and setting up your supply chain.
Setting Up Your Trading Company
Setting up your trading company is a crucial step in turning your business plan into a reality. This section will guide you through the key steps involved in setting up a trading company, including choosing a suitable location, obtaining necessary permits and licenses, and setting up your supply chain.
Choosing a Suitable Location
The location of your trading company can significantly impact your success. Consider factors such as proximity to suppliers and customers, accessibility to transportation infrastructure, availability of skilled labor, and the overall business environment. Research different regions or cities that align with your target market and industry. Evaluate the local market conditions, competition, and potential growth opportunities before finalizing your location.
Obtaining Necessary Permits and Licenses
Before commencing operations, you will need to ensure that you have obtained all the necessary permits and licenses to legally operate your trading company. The specific requirements may vary depending on your location and the nature of your trading activities. Common permits and licenses may include business registration, tax registrations, import/export licenses, and any industry-specific certifications. Research the legal and regulatory requirements applicable to your trading business and complete the necessary documentation and processes.
Setting Up Your Supply Chain
A well-established and efficient supply chain is crucial for a trading company’s success. Your supply chain will determine how you source, store, and deliver products to your customers. Identify reliable suppliers who can consistently provide the products you intend to trade. Establish clear communication channels and negotiate favorable terms with your suppliers. Additionally, consider the logistics of transporting and storing your products. Determine the most cost-effective and reliable shipping methods, and establish relationships with freight forwarders, warehousing facilities, and distribution partners.
Establishing Financial Systems and Processes
Setting up robust financial systems and processes is essential for the smooth operation of your trading company. Implement accounting software to track your finances, manage invoices, and generate financial reports. Establish clear procedures for financial transactions, including payment terms and collection processes. Consider hiring a qualified accountant or bookkeeper to ensure compliance with tax regulations and to provide financial guidance.
Building a Team and Infrastructure
As your trading company grows, you will need to build a team of skilled professionals to support your operations. Assess your staffing needs based on the size and complexity of your trading activities. Recruit individuals with relevant industry knowledge and experience. Additionally, invest in the necessary infrastructure, such as office space, equipment, and technology, to support your operations efficiently.
By following these steps and ensuring that your trading company is set up properly, you will establish a strong foundation for success. The next section will focus on developing a marketing and sales strategy for your trading company, including creating a marketing plan, identifying sales channels, and building customer relationships.
Marketing and Sales Strategy for a Trading Company
Developing an effective marketing and sales strategy is crucial for the success and growth of your trading company. In this section, we will explore the key components of a marketing and sales strategy, including developing a marketing plan, identifying sales channels, and building customer relationships.
Developing a Marketing Plan
A marketing plan outlines the strategies and tactics you will use to promote your trading company and its offerings. Start by defining your marketing objectives, such as increasing brand awareness, generating leads, or reaching new markets. Conduct market research to understand your target audience and their preferences. Identify the most effective marketing channels and tactics to reach your target market, such as digital advertising, content marketing, social media, trade shows, or direct mail campaigns. Set a budget for your marketing activities and create a timeline for implementation. Regularly track and measure the effectiveness of your marketing efforts to make data-driven adjustments to your strategy.
Identifying Sales Channels
Identifying the right sales channels is essential for reaching your target market and generating sales for your trading company. Consider both offline and online channels that align with your target audience and industry. These may include direct selling, distribution through wholesalers or retailers, e-commerce platforms, online marketplaces, or partnerships with other businesses. Evaluate the pros and cons of each channel, considering factors such as cost, reach, control, and scalability. Develop a sales channel strategy that optimizes your reach and distribution capabilities while maximizing profitability.
Building Customer Relationships
Strong customer relationships are the foundation of a successful trading company. Focus on building trust and establishing long-term partnerships with your customers. Provide exceptional customer service by promptly addressing inquiries, resolving issues, and exceeding expectations. Maintain open lines of communication and seek feedback to continually improve your products and services. Implement customer relationship management (CRM) systems to manage customer interactions, track sales, and identify opportunities for upselling or cross-selling. Consider implementing loyalty programs or referral incentives to encourage repeat business and word-of-mouth referrals.
Leveraging Digital Marketing
In today’s digital age, leveraging digital marketing strategies is crucial for the success of your trading company. Establish a strong online presence through a professional website that showcases your products, services, and value proposition. Optimize your website for search engines to improve visibility and organic traffic. Develop a content marketing strategy that includes creating informative blog posts, videos, or industry guides to position your trading company as an industry thought leader. Engage with your audience on social media platforms to build brand awareness and foster customer relationships. Consider running targeted digital advertising campaigns to reach specific segments of your target market.
Monitoring and Measuring Results
Regularly monitor and measure the results of your marketing and sales efforts to gauge their effectiveness. Track key performance indicators (KPIs) such as website traffic, lead generation, conversion rates, customer acquisition costs, and customer satisfaction. Use analytics tools and CRM systems to gather data and insights. Make data-driven decisions by analyzing the results and adjusting your marketing and sales strategies accordingly.
By developing a comprehensive marketing and sales strategy, you will be able to effectively promote your trading company, reach your target audience, and build strong customer relationships. The next section will focus on financial planning and management for a trading company, including estimating start-up costs, forecasting sales and profits, and understanding cash flow management.
Financial Planning and Management for a Trading Company
Financial planning and management are essential for the long-term success and sustainability of your trading company. In this section, we will explore the key aspects of financial planning and management, including estimating start-up costs, forecasting sales and profits, and understanding cash flow management.
Estimating Start-up Costs
Before launching your trading company, it is crucial to estimate the start-up costs involved. Start-up costs may include expenses such as market research, legal fees, permits and licenses, office space rent, equipment and technology, initial inventory, marketing and advertising, and employee salaries. Create a detailed list of all potential expenses and research the costs associated with each item. This will help you determine the total initial investment required to launch your trading company.
Forecasting Sales and Profits
To plan for the future and make informed business decisions, it is important to forecast sales and profits for your trading company. Conduct market research to estimate the demand for your products or services. Analyze your target market, competition, and industry trends to make realistic projections. Consider factors such as pricing strategies, production costs, sales volume, and market share. Use historical data, industry benchmarks, and expert insights to create a sales and profit forecast for the upcoming months or years. Regularly review and update your forecasts based on actual performance to refine your financial planning.
Understanding Cash Flow Management
Cash flow management is crucial for the financial health and stability of your trading company. It involves monitoring and optimizing the flow of cash into and out of your business. Create a cash flow statement that tracks your incoming cash from sales, investments, and financing, as well as your outgoing cash for expenses, inventory purchases, and other financial obligations. Analyze your cash flow to identify potential issues, such as periods of negative cash flow or insufficient funds to cover expenses. Implement strategies to improve cash flow, such as optimizing inventory management, negotiating favorable payment terms with suppliers, and ensuring timely payment collection from customers.
Budgeting and Expense Control
Developing a comprehensive budget is essential for effective financial management. Create a budget that outlines your projected revenue and expenses for a specific period, such as a month, quarter, or year. Allocate funds for different categories, such as marketing, operations, payroll, and overhead costs. Regularly review your budget and compare actual expenses against projected amounts. Identify areas where you can control costs and implement measures to optimize spending without compromising the quality of your products or services.
Seeking Financing and Managing Debt
If your trading company requires additional financing, consider the various options available to you. Explore traditional financing methods, such as bank loans or lines of credit, and alternative options like crowdfunding or angel investors. Develop a comprehensive business plan and financial projections to present to potential investors or lenders. Once you secure financing, manage your debt responsibly by making timely payments and monitoring your debt-to-equity ratio. Implement effective debt management strategies to minimize interest costs and avoid excessive debt burdens.
By implementing sound financial planning and management practices, you can ensure the financial stability and growth of your trading company. Regularly review and update your financial plans, adapt to changing market conditions, and seek professional advice when necessary. This will enable you to make informed decisions, allocate resources effectively, and achieve long-term success.
Trading firm business plan template
Sample template (structure) of a business plan for trading firms (in MS Word)
5,00 €
incl. 19% VAT
Description
Here you will find a structured open Word template for a business plan for a trading firm.
You may also like…
Application for the calculation of the enterprise value, investment checklist.
zzgl. Versandkosten
Business Plan Template
What are your challenges.
Newly Launched - AI Presentation Maker
Researched by Consultants from Top-Tier Management Companies
AI PPT Maker
Powerpoint Templates
Icon Bundle
Kpi Dashboard
Professional
Business Plans
Swot Analysis
Gantt Chart
Business Proposal
Marketing Plan
Project Management
Business Case
Business Model
Cyber Security
Business PPT
Digital Marketing
Digital Transformation
Human Resources
Product Management
Artificial Intelligence
Company Profile
Acknowledgement PPT
PPT Presentation
Reports Brochures
One Page Pitch
Interview PPT
All Categories
Top 10 Trading Company Profile Templates with Samples and Examples
Mohammed Sameer
In the trading business, where companies battle fiercely for recognition and success, a formidable challenge is to design the perfect trading company profile. This task requires and demands careful attention to detail, a profound understanding of the market, and a dash of creative finesse.
You have all of these, and then some more, in one place: SlideTeam's Trading Company Profile Templates . These PPT Designs offer an unrivaled advantage, redefining the landscape for traders worldwide. Don’t, however, just take our word for it; let the numbers do the talking. Research and anecdotal evidence show that a well-crafted trading company profile is around 80% more likely to captivate potential clients and partners than those companies that choose not to have one!
These templates are not merely a compilation of good, professional, and clutter-free designs. These are blueprints that give you the capability to showcase your company overview, trading financials, and comprehensive trading company strategies. With strategic partnership at the core of success in the trading world, our presentation templates also provide expert-curated trade marketing strategies, enabling you to forge alliances that drive your business forward.
Expand Trading Horizons: PPT Excellence for Engaging Profiles!
Use this PPT Slideshow to deliver a compelling company overview encompassing background, vision, mission, and accreditation. It showcases financial highlights through a dashboard diagram and introduces key personnel with an engaging design. With this PPT Theme, you can outline your organizational framework and articulate your company's offerings to clients. The inclusion of a world map diagram depicts your global reach, while pie graphs illustrate your market share within the industry. Enhance your business model with visual excellence, including a neat tabular format to explain transportation modes and trading details. It is a complete deck with 29 slides. Within these slides, we have carefully selected the ten essential slides that trading companies must have.
Let’s go through these hands-on, practical templates now. Each of the templates is 100% customizable and editable, giving you both flexibility and structure.
Template 1: Company Overview
This PPT Preset slide showcases the essence of your business in a concise and captivating manner. It helps stakeholders discover your rich background, shaped by years of industry expertise, as you strive to achieve our mission and vision. Present your notable accreditations that attest to your commitment to excellence. Delve into your extensive capabilities, demonstrating your ability to deliver exceptional results. Make a statement about your esteemed promoters and shareholders who contribute to your success. Download now.
Download this template
Template 2: Financial Highlights
Perform a visual representation of a company’s financial achievements, revealing revenue growth, profit margins, and cost management strategies that distinguish your business from the competition. This clear snapshot offers a glimpse into your commitment to financial success and stability. Dive into the details, uncovering ROI and financial planning. Get it now.
Get this template
Template 3: Key Management
This dynamic slide encapsulates the heartbeat of successful businesses, highlighting visionary leaders who steer the company toward prosperity. Immerse yourself in a visual masterpiece that showcases the experienced individuals, their impressive backgrounds, and the strategic prowess they bring to the table. Engage your audience with a captivating portrayal of your company's key decision-makers, instilling confidence and fostering trust. Download now.
Grab this template
Template 4: Our Offerings
This PPT Design offers a quick glimpse into the comprehensive range of services your trading company provides. It underlines solutions you derived to address customers' requirements. Its layout accommodates up to five services and their brief description. The pre-written content explains machinery spare parts, construction materials, and more. You can use or edit it to match your brand’s offerings. Download now.
Template 5: Where We Trade
Highlight your trading company’s vast network and global reach with this PPT Design. Immerse stakeholders in a visual representation that showcases your extensive trading destinations, connecting continents and bridging markets. Present the web of connections, highlighted with vibrant colors and dynamic lines, as we navigate international trade routes. From bustling metropolises to remote corners of the globe, explore your strategic partnerships and expansive presence. Download now.
Template 6: Market Share in Industry
This PPT Layout offers a clear visual representation of the company’s competitive standing within its industry. With its sleek design, this slide provides the company's market share in the form of a pie chart, allowing users to gauge its dominance and growth potential. This important variable is expressed using percentages and amounts in dollars. Get it now.
Template 7: Our Business Model
Deploy this PPT Slide for a comprehensive depiction of your company’s operational framework. This layout of this slide can be used to explore revenue streams, customer segments, strategic partnerships, and cost structure. The pre-built business model emphasizes three main players: Manufacturer, Trader, and Consumer. Download now.
Template 8: Transportation Modes
This Transportation Modes PPT Slide encapsulates the epitome of efficient logistics. It explains the modes of transportation that the trading entity deploys. From the nimble agility of air transport to the extensive connectivity of maritime routes and the robust reliability of road and rail systems, each mode is showcased with precision. Download now.
Template 9: Financial Projections
This PPT Slide empowers you to envision the success of your trading venture with precision and confidence. The presentation template offers a comprehensive display of projected financial data, including revenue forecasts, expense breakdowns, and growth trajectories. Engage stakeholders, inspire investors, and make informed strategic decisions. Download now.
Template 10: List of Clients
Discover the power of a proven track record. This PPT Design helps you proudly present the list of clients, showcasing an impressive network of industry leaders and strategic partners. Witness a testament to success as each client’s name resonates with credibility and trust. From multinational corporations to thriving startups, this curated compilation is a testament to the unwavering commitment to excellence and steadfast client satisfaction that your trading business brings to the table. Download now.
Fuel Your Trading Success
In the unforgiving realm of trading, the ordinary never makes the cut. Arm yourself with our Trading Company Profile Templates and unleash a force that beats limitations. Revolutionize your company overview, master trading financials, and deploy unbeatable strategies. With trade marketing prowess and strategic partnerships at your fingertips, seize the spotlight, outperforming rivals. Download our company profile ppt templates, and claim your destiny as a trading titan.
FAQs on Trading Company Profiles
What is a trading company .
A trading company is an entity that buys and sells goods or services, often acting as an intermediary between manufacturers or suppliers and customers. Trading companies facilitate international or domestic trade by sourcing products, negotiating contracts, handling logistics, and managing the distribution of goods.
How do you write a trading company profile?
To write a trading company profile, consider the following key elements:
- Introduction: Provide an overview of your company, its mission, and values.
- History and Background: Detail the company’s establishment, growth, and notable achievements.
- Products/Services: Describe the range of products or services your company offers, highlighting their unique features and benefits.
- Market Presence: Discuss your target market, customer demographics, and geographical reach.
- Competitive Advantage: Emphasize what sets your company apart.
- Financial Performance: Provide key financial metrics, such as revenue, growth rates, and profitability.
- Team and Expertise: Highlight the qualifications and experience of key personnel.
- Clientele and Partnerships: Showcase notable clients, strategic partnerships, and successful collaborations.
- Outlook: Share your company's vision, expansion plans, and initiatives.
What is a trading company example?
An example of a trading company is "ABC Trading Co." This hypothetical company specializes in sourcing and exporting agricultural products worldwide, such as coffee, spices, and tropical fruits. ABC Trading Co. acts as an intermediary between farmers and international buyers, ensuring quality control, logistics management, and timely delivery of goods.
How to start a trading company?
Starting a trading company involves:
- Research and Planning: Identify the market or niche you want to target, research industry trends, and formulate a business plan.
- Legal Requirements: Register your business, and obtain the necessary licenses, permits, and tax registrations.
- Define Your Product/Service Offering: Determine the specific products or services your trading company will offer and establish relationships with suppliers or manufacturers.
- Secure Funding: Determine your financial needs and explore funding options, such as personal savings, loans, or investment partnerships.
- Establish a Network: Build a network of reliable suppliers, potential customers, and industry contacts.
- Set Up Operations: Arrange necessary logistics, such as office space, storage facilities, and transportation.
- Develop Marketing and Sales Strategies: Create a comprehensive marketing plan to promote your trading company and reach your target audience.
- Monitor and Adapt: Continuously monitor market trends, adjust strategies, and stay updated on changes in regulations or trade policies.
Related posts:
- Slides You Should Include in Your Trading Company Profile
- How to Design the Perfect Service Launch Presentation [Custom Launch Deck Included]
- Quarterly Business Review Presentation: All the Essential Slides You Need in Your Deck
- [Updated 2023] How to Design The Perfect Product Launch Presentation [Best Templates Included]
Liked this blog? Please recommend us
Top 10 Company Profile Executive Summary Templates with Samples and Examples
Top 10 Real Estate Company Profile Templates To Pave the Path to Property Prestige!
This form is protected by reCAPTCHA - the Google Privacy Policy and Terms of Service apply.
Simple Business Plan Templates
By Joe Weller | April 2, 2020
- Share on Facebook
- Share on LinkedIn
Link copied
In this article, we’ve compiled a variety of simple business plan templates, all of which are free to download in PDF, Word, and Excel formats.
On this page, you’ll find a one-page business plan template , a simple business plan for startups , a small-business plan template , a business plan outline , and more. We also include a business plan sample and the main components of a business plan to help get you started.
Simple Business Plan Template
Download Simple Business Plan Template
Word | PDF
This simple business plan template lays out each element of a traditional business plan to assist you as you build your own, and it provides space to add financing information for startups seeking funding. You can use and customize this simple business plan template to fit the needs for organizations of any size.
One-Page Business Plan Template
Download One-Page Business Plan Template
Excel | Word | PDF | Smartsheet
Use this one-page business plan to document your key ideas in an organized manner. The template can help you create a high-level view of your business plan, and it provides easy scannability for stakeholders. You can use this one-page plan as a reference to build a more detailed blueprint for your business.
For additional single page plans, take a look at " One-Page Business Plan Templates with a Quick How-To Guide ."
Simple Fill-in-the-Blank Business Plan Template
Download Simple Fill-in-the-Blank Business Plan Template
Use this fill-in-the-blank business plan template to guide you as you build your business plan. Each section comes pre-filled with sample content, with space to add customized verbiage relevant to your product or service.
For additional free, downloadable resources, visit " Free Fill-In-the-Blank Business Plan Templates ."
Simple Business Plan for Startup
Download Startup Business Plan Template — Word
This business plan template is designed with a startup business in mind and contains the essential elements needed to convey key product or service details to investors and stakeholders. Keep all your information organized with this template, which provides space to include an executive summary, a company overview, competitive analysis, a marketing strategy, financial data, and more. For additional resources, visit " Free Startup Business Plan Templates and Examples ."
Simple Small-Business Plan Template
Download Simple Small-Business Plan Template
This template walks you through each component of a small-business plan, including the company background, the introduction of the management team, market analysis, product or service offerings, a financial plan, and more. This template also comes with a built-in table of contents to keep your plan in order, and it can be customized to fit your requirements.
Lean Business Plan Template
Download Lean Business Plan Template
This lean business plan template is a stripped-down version of a traditional business plan that provides only the most essential aspects. Briefly outline your company and industry overview, along with the problem you are solving, as well as your unique value proposition, target market, and key performance metrics. There is also room to list out a timeline of key activities.
Simple Business Plan Outline Template
Download Simple Business Plan Outline Template
Use this simple business plan outline as a basis to create your own business plan. This template contains 11 sections, including a title page and a table of contents, which details what each section should cover in a traditional business plan. Simplify or expand this outline to create the foundation for a business plan that fits your business needs.
Simple Business Planning Template with Timeline
Download Simple Business Planning Template with Timeline
Excel | Smartsheet
This template doubles as a project plan and timeline to track progress as you develop your business plan. This business planning template enables you to break down your work into phases and provides room to add key tasks and dates for each activity. Easily fill in the cells according to the start and end dates to create a visual timeline, as well as to ensure your plan stays on track.
Simple Business Plan Rubric Template
Download Simple Business Plan Rubric
Once you complete your business plan, use this business plan rubric template to assess and score each component of your plan. This rubric helps you identify elements of your plan that meet or exceed requirements and pinpoint areas where you need to improve or further elaborate. This template is an invaluable tool to ensure your business plan clearly defines your goals, objectives, and plan of action in order to gain buy-in from potential investors, stakeholders, and partners.
Basic Business Plan Sample
Download Basic Business Plan Sample
This business plan sample serves as an example of a basic business plan that contains all the traditional components. The sample provides a model of what a business plan might look like for a fictional food truck business. Reference this sample as you develop your own business plan.
For additional resources to help support your business planning efforts, check out “ Free Strategic Planning Templates .”
Main Components of a Business Plan
The elements you include in your business plan will depend on your product or service offerings, as well as the size and needs of your business.
Below are the components of a standard business plan and details you should include in each section:
- Company name and contact information
- Website address
- The name of the company or individual viewing the presentation
- Table of Contents
- Company background and purpose
- Mission and vision statement
- Management team introduction
- Core product and service offerings
- Target customers and segments
- Marketing plan
- Competitive analysis
- Unique value proposition
- Financial plan (and requirements, if applicable)
- Business and industry overview
- Historical timeline of your business
- Offerings and the problem they solve
- Current alternatives
- Competitive advantage
- Market size
- Target market segment(s)
- Projected volume and value of sales compared to competitors
- Differentiation from competitors
- Pricing strategy
- Marketing channels
- Promotional plan
- Distribution methods
- Legal structure of your business
- Names of founders, owners, advisors, etc.
- Management team’s roles, relevant experience, and compensation plan
- Staffing requirements and training plans
- Physical location(s) of your business
- Additional physical requirements (e.g., warehouse, specialized equipment, facilities, etc.)
- Production workflow
- Raw materials and sourcing methods
- Projected income statement
- Projected cash flow statement
- Projected balance sheet
- Break-even analysis
- Charts and graphs
- Market research and competitive analysis
- Information about your industry
- Information about your offerings
- Samples of marketing materials
- Other supporting materials
Tips for Creating a Business Plan
It’s easy to feel overwhelmed at the thought of putting together a business plan. Below, you’ll find top tips to help simplify the process as you develop your own plan.
- Use a business plan template (you can choose from the variety above), or refer to the previous section to create a standard outline for your plan.
- Modify your outline to reflect the requirements of your specific business. If you use a standard business plan outline, remove sections that aren’t relevant to you or aren’t necessary to run your business.
- Gather all the information you currently have about your business first, and then use that information to fill out each section in your plan outline.
- Use your resources and conduct additional research to fill in the remaining gaps. (Note: It isn’t necessary to fill out your plan in order, but the executive summary needs to be completed last, as it summarizes the key points in your plan.)
- Ensure your plan clearly communicates the relationship between your marketing, sales, and financial objectives.
- Provide details in your plan that illustrate your strategic plan of action, looking forward three to five years.
- Revisit your plan regularly as strategies and objectives evolve.
- What product or service are we offering?
- Who is the product or service for?
- What problem does our product or service offering solve?
- How will we get the product or service to our target customers?
- Why is our product or service better than the alternatives?
- How can we outperform our competitors?
- What is our unique value proposition?
- When will things get done, and who is responsible for doing them?
- If you need to obtain funding, how will you use the funding?
- When are payments due, and when do payments come in?
- What is the ultimate purpose of your business?
- When do you expect to be profitable?
To identify which type of business plan you should write, and for more helpful tips, take a look at our guide to writing a simple business plan .
Benefits of Using a Business Plan Template
Creating a business plan can be very time-consuming, especially if you aren’t sure where to begin. Finding the right template for your business needs can be beneficial for a variety of reasons.
Using a business plan template — instead of creating your plan from scratch — can benefit you in the following ways:
- Enables you to immediately write down your thoughts and ideas in an organized manner
- Provides structure to help outline your plan
- Saves time and valuable resources
- Helps ensure you don’t miss essential details
Limitations of a Business Plan Template
A business plan template can be convenient, but it has its drawbacks — especially if you use a template that doesn’t fit the specific needs of your business.
Below are some limitations of using a business plan template:
- Each business is unique and needs a business plan that reflects that. A template may not fit your needs.
- A template may restrict collaboration with other team members on different aspects of the plan’s development (sales, marketing, and accounting teams).
- Multiple files containing different versions of the plan may be stored in more than one place.
- You still have to manually create charts and graphs to add to the plan to support your strategy.
- Updates to the plan, spreadsheets, and supporting documents have to be made in multiple places (all documents may not update in real time as changes are made).
Improve Your Business Plan with Real-Time Work Management in Smartsheet
Empower your people to go above and beyond with a flexible platform designed to match the needs of your team — and adapt as those needs change.
The Smartsheet platform makes it easy to plan, capture, manage, and report on work from anywhere, helping your team be more effective and get more done. Report on key metrics and get real-time visibility into work as it happens with roll-up reports, dashboards, and automated workflows built to keep your team connected and informed.
When teams have clarity into the work getting done, there’s no telling how much more they can accomplish in the same amount of time. Try Smartsheet for free, today.
Discover why over 90% of Fortune 100 companies trust Smartsheet to get work done.
Trading Plan Template & Examples: Step-by-Step Guide to Creating a Solid Trading Plan
Bonus Material:
Trading plans are an important part of any trader’s toolkit. The problem is, most traders don’t actively lay out a plan before they begin trading.
The result? They lose money and wonder why . Furthermore, many traders don’t know how to create a trading plan , or what to include.
Successful traders understand that trading plans are crucial to profiting consistently. In this article, I’ll walk you through creating your own plan, step-by-step, plus you can get a head start by using my free trading plan template, download below :
What is a trading plan?
A trading plan is an integral part of a trader’s strategy, outlining how trades are executed. It establishes rules for buying and selling securities, position sizing, risk management, and tradable securities. By following this plan, traders maintain discipline, consistency, and leverage proven strategies.
Why you should create a trading plan
Ask a new trader what they intend to do before the trading day and then ask them what they did at the end of the day. They almost certainly didn’t follow their plan.
Trading plans are there for us to follow. Trading plans mean we take trades that are consistent with our rules and risk, and it means we remove a lot of emotion and discretion . This is important because humans are not rational agents and outsourcing this work means we can achieve a better P&L and make more money.
A trading plan should resemble a business plan. A trader’s capital is their business and so we need to include everything that might be useful, but it should always cover the below.
What to include in your trading plan
- The time required to spend on your trading
Your trading goals and targets
- Your risk tolerance and risk management rules
Available capital for trading
Specific markets you wish to trade, the trading strategies you’ll use, your motivation for trading.
Read more information on what to include in your trading plan (with examples) below, and download your free template here:
The time required for trading
We need to define the time we need in order to trade successfully. For example, if you’re in full-time employment, then it’s unrealistic to spend six hours a day trading the market.
For example: Here is a part of my trading plan…
“To trade the UK stock market on a full-time basis I realistically need to spend at least 8-10 hours per day in order to take advantage of intraday opportunities and manage open positions in real time”.
It’s important to set realistic targets in trading. Once you have a target, you can reverse engineer how to achieve it.
For example: A target of increasing a trading account by 20% is an achievable target. To do that, we need to look at our trading capital and work out which trading strategies we’ll use.
Using breakouts to trend follow is a strategy I have had much success with, and I explain how I do this in my guide to breakouts.
There are several trading styles:
- Swing trading: This is a common strategy that attempts to capture moves over several days or weeks. Swing traders look for shorter term trends and then move onto the next trade.
- Momentum trading: This is a trend-following strategy based on upward movement and momentum. It can be a successful strategy over months and years as the stock continues to move higher. This is often coupled with increasing fundamental strength and accelerating earnings.
- Scalping or intraday trading (also known as ‘day trading’): Intraday strategies refer to trades placed and closed within the same trading session.
Your risk tolerance and risk management rules
Risk management is the most important part of trading. Position sizing is the first and last line of defence in our trading accounts.
If you take position sizes with 20% of your account, then that means you are risking 100% of that position every time it is risked in the market. Even if the chances are 99%, then eventually that 1 in 100 chance of the stock going to 0p and losing 100% of the position will happen.
Whilst a 20% drawdown on the trading account isn’t fatal, the law of compounding means that we will now need to gain 25% of our account just to get back to where we started.
Never underestimate the numbers here – a 33% drawdown requires a near 50% gain just to get back to where we started.
It’s important to put in place risk management rules that will protect the account and prevent us from taking on too much risk.
Only you will know how much risk you’re willing to take, but if you put yourself in a position where you could do yourself material damage, then eventually that outcome will be presented.
If taking a loss hurts, then it means you are trading too large. Most traders blow their accounts due to overexposure. I’ve never heard of a single trader who blew their account due to continuously taking small losses. Position sizing and risk management is covered in detail in my trading handbook.
Download the free ebook now
Enter your email to receive my free UK stock trading handbook, packed with professional techniques to manage risk and consistently profit on AIM stocks.
Traders should always be clear about what money should be used for trading and what money should stay in their bank accounts.
Far too many traders have drawdowns in their trading accounts and decide to top up their account with a bank transfer.
Unfortunately, they end up putting far too much money into their account and do not keep track of their losses.
You should never trade with money you can’t afford to lose. I’ve had emails from people asking me what to do because they’ve lost the deposit for their house and they haven’t told their partner. Sadly, there is little that can be done at that point because the money is already lost.
In your trading plan you should be clear about how much is going into your trading account and how much you will top this up each month if that is going to be your strategy to grow your account further.
However, the best way of growing your trading account is by making money trading successfully in the market. Once you can consistently do this, then it makes sense to increase your funds and scale up.
A trading plan should also include the specific markets you wish to trade. Do you plan on trading UK stocks, US stocks, foreign exchange (forex), or cryptocurrencies? Once you’ve picked a market, you still need to drill deeper.
For example: If you pick UK stocks will you trade all of these, or just AIM, or just the Main Market? Will you trade only small cap stocks? Will you trade both SETS and the SETSqx platforms ?
In my case, I trade all UK stocks, and don’t discriminate between any of them. However, my focus is on smaller stocks under £500 million market cap.
Your trading strategies are the ways you are going to make money. This part of the trading plan is important because by defining your strategies it will be clear to follow.
For example: I want to trade small-cap stocks that have momentum behind them, and I will find this momentum through technical breakouts and positive RNS announcements.
I will trade gaps and also place orders into the auctions in order to get better fills. I will use various brokers for different types of execution. I will take secondary raises that have news catalysts that can potentially drive the shares higher.
What is your why? What are your goals, and what is your motivation? Trading is hard and there are ups and downs – it’s easy to motivate yourself when the going is good and you’re making lots of money. But it can be harder when you’re suffered several losses in a row, and you keep seeing your account grind lower or flat for weeks on end.
Writing down your why will make it easier to stay focused and commit to the long-term process and improvement.
For example:
- I want to trade because I enjoy the challenge and I also want to be my own boss.
- I want the freedom that comes with the lifestyle of a full time trader and I want to be around my wife and future children as they grow up.
- I want to offer my family a better life, and by continuing to work on my skillset is putting me closing towards my goals.
Good trading plan example
How do you write a trading plan?
- Know your trading playbook
- Manage your risk
- Have a realistic profit target
1. Know your trading playbook
You should have a playbook of trades that you know how to execute in the market. A playbook is a list of trades, each with step-by-step instructions on how to trade the pattern.
If you don’t know what you should trade in your trading plan then building a playbook of trades is a good place to start.
2. Manage your risk
Risk management is a crucial skill for any trader. I’ve written an in-depth article on trading risk management for further information.
The reason risk management is so important is that without it we would blow up our accounts. Nobody would think about driving a car with no brakes because it would obviously crash – risk management is the brakes and safety system for our trading accounts.
Everyone has different risk profiles. Some are happy to take on high amounts of risk accepting that they may take hefty losses in order for the possibility of excess return.
Full-time traders like myself tend to be more cautious knowing that if they lose too much capital, they may have to go back to work.
You should include in your trading plan how much you’re prepared to risk on particular trades in your playbook and how much in your account overall.
3. Have a realistic profit target
Having an idea of a profit target will mean that you don’t end up falling into the trap of never selling. Far too many traders watch a stock rise, see it pullback, then immediately regret not nailing down profit into strength.
By setting out clear take profit targets this avoids indecisiveness and will ensure you execute ruthlessly.
Bonus tip: Trade the stocks in play
Trading is about being in stocks that are moving. Volatility is the lifeblood of a trader, and a dead stock means dead money.
The stocks ‘in play’ are the stocks that have moved or are moving in recent sessions, and the stocks we should be immediately keeping tabs on. Stocks can cycle in and out being in play, and so we need to keep track of those that offer the greatest volatility to trade.
Download my free one-page trading plan template
My opening plan trading template has everything you need to begin the trading day. It forces you to check and review your open positions, so you’re always knowing what to do.
It also suggests to list the current stocks in play, and how you can trade them, and in what size. Additionally, it asks “What can happen?” so a trader using this template will never be caught out.
By thinking ahead about potential scenarios and how to trade them, this gives the trader an advantage over others who do not put the work in. Traders who punt around their money without a clue or a plan are commonly referred to as “liquidity”.
To download the free template, click the button below and follow the instructions.
About The Author
Michael taylor.
Too soon to get the course ? Get my free UK stock trading ebooks
Start typing and press enter to search
Almost there.
Enter your email below to receive my four free stock trading ebooks with everything you need to start trading the UK stocks.
Enter your email to receive my free trading plan template, with everything you need to begin the trading day.
Get your free stock trading ebooks
Get four free UK stock market ebooks and my monthly trading newsletter with trade ideas and things learned from trading stocks
Don't miss out!
All Formats
Table of Contents
Plan template bundle, what is a trading plan, game of trade, 12+ trading plan templates in pdf | doc, 1. stock trading plan template, 2. free super saver trading plan template, 3. free regulations trading plan template, 4. free compliance trading plan template, 5. free trading plan rules template, 6. free preliminery trading plan template, 7. free philosophy trading plan template, 8. free flexibility trading plan template, 9. free legislative trading plan template, 10. free intra day trading plan template, 11. free trading plan checklist template, 12. free business trading plan template, 6 steps how to create a trading plan, mortgage templates.
Before, trade was simple as exchanging pork for an amount of wheat. But now, you have tons of cargo paired with logistical intricacies, the science of economics, political climate, competitive markets, supply chain, and currency status. The primary goals of getting successful deals and gaining profit are not easy tasks since you are juggling with so many factors. That is why planning comes in as a crucial process in determining the course of action to take. And with the help of many plan templates online, what remains is generating the winning content for successful trade management.
- Google Docs
- Apple Pages
Step 1: Create Goals
Step 2: set a time table, step 3: do the analysis, step 4: stay updated, step 5: expect risks, step 6: make it doable, more in mortgage templates.
Trading Company Business Card Template
Builders trade show flyer template, collectible card game template, pop culture trading card template, vintage trading card template, anime trading card template, sci-fi trading card template, fantasy trading card template, artist trading card template, fortnite trading card template.
- 11+ Fixed-Rate Mortgage Templates in PDF | DOC
- 10+ Foreign Exchange Risk Management Templates in DOC | PDF
- 10+ Interest Risk Management Templates in PDF | DOC
- 7+ Inventory Risk Management Template in DOC | PDF
- 9+ Conventional Mortgage Templates in PDF | DOC
- 7+ Alienation Clause Templates in DOC | PDF
- 11+ Mortgage Agreement Templates in PDF | DOC
- 10+ Revenue Procedure Templates in PDF | DOC
- 10+ Home Mortgage Templates in PDF | DOC | XLS
- 4+ Mortgage Payment Calculator Templates in PDF | DOC
- 10+ Amortization Schedule Templates in PDF | Word | XLS | Google Docs | Google Sheets | Numbers | Pages
- 11+ Loan Payment Calculator Templates in PDF | DOC | Pages
- 11+ Liquidity Risk Management Templates in PDF | DOC
- 14+ Real Estate Risk Management Templates in PDF | DOC
- 7+ Concentration Risk Policy Templates in PDF | DOC
File Formats
Word templates, google docs templates, excel templates, powerpoint templates, google sheets templates, google slides templates, pdf templates, publisher templates, psd templates, indesign templates, illustrator templates, pages templates, keynote templates, numbers templates, outlook templates.
300+ Business Plan Examples
With over two decades of experience, Growthink has assisted more than 1 million companies in developing effective business plans to launch and expand their businesses. Trust in our expertise to guide you through developing a business plan that drives your success. In addition to our sample plans, below you’ll learn the answers to key business plan questions and gain insightful tips on writing your business plan.
Quick Links to Sections On this Page:
- Sample Business Plans By Business Category
Answers to Key Sample Business Plan Questions
Shoutmouth business plan example, business plan examples by business category.
Clothing & Fashion Business Plan Templates & Samples
Clothing Store Business Plan
Embroidery Business Plan
Fashion Business Plan
Jewelry Business Plan
Construction, Interior Design & Home Services Business Plan Templates & Samples
|
|
|
Consumer Services Business Plan Templates & Samples
|
|
|
Business Services Business Plan Templates & Samples
|
|
|
Events Business Plan Templates & Samples
Banquet Hall Business Plan
Event Planning Business Plan
Event Venue Business Plan
Sample Event Venue Business Plan
Party Rental Business Plan
Photo Booth Business Plan
Table and Chair Rental Business Plan
Wedding Planning Business Plan
Farm Business Plan Templates & Samples
|
|
|
Financial Services Business Plan Templates & Samples
|
|
|
Fitness & Beauty Business Plan Templates & Samples
|
|
|
Food & Beverage Business Plan Templates & Samples
|
|
|
Medical & Health Business Plan Templates & Samples
|
|
|
Music & Entertainment Business Plan Templates & Samples
Music Business Plan
Party Bus Business Plan
Podcast Business Plan
Production Company Business Plan
Record Label Business Plan
Recording Studio Business Plan
Nonprofit Business Plan Templates & Samples
Sample Non-Profit Business Plan
Charity Business Plan
Sample Nonprofit Business Plan PDF
Social Enterprise Business Plan
Real Estate Business Plan Templates & Samples
Sample Airbnb Business Plan
House Flipping Business Plan
Property Development Business Plan
Property Management Business Plan
Real Estate Business Plan
Real Estate Agent Business Plan
Real Estate Business Plan PDF
Real Estate Development Business Plan
Real Estate Investment Business Plan
Retail & Ecommerce Business Plan Templates & Samples
|
|
|
Technology Business Plan Templates & Samples
Biodiesel Business Plan
Blogging Business Plan
Clean Tech Business Plan
Mobile App Business Plan
Saas Business Plan
Software Company Business Plan
Technology Business Plan
Transportation Business Plan Templates & Samples
|
|
|
Travel and Lodging Business Plan Templates & Samples
Bed and Breakfast Business Plan
Campground Business Plan
Glamping Business Plan
Hotel Business Plan
Mobile Home Park Business Plan
Resort Business Plan
RV Park Business Plan
Travel Agency Business Plan
1. Why is utilizing an example business plan a good idea?
Sample business plans can help you quickly and easily write a business plan for your own business. Business plans are an important tool for any business, but they can be challenging to create. A sample business plan will help you understand the business plan format , the benefit of market research, and how to write a compelling executive summary. It can also serve as a guide for creating your own business plan, outlining the key sections and providing examples of successful plans. Utilizing the best business plan template can save you time and ensure that your plan is well-structured and comprehensive.
Business plan examples may even help you with the different sections of a plan, including market analysis, business description, cash flow statements/business financial statements, and more. Business plans can also show you how a quality plan in your exact business plan category is organized and shows you the appropriate business communications style to use when writing your business plan.
2. Who would benefit from using an example business plan?
Any entrepreneur or business owner who has never written a business plan before can benefit from an example or sample plan. New business owners often start with business plan templates , which are helpful but are sometimes more useful after reviewing other sample business plans.
A good sample plan can be a step-by-step guide as you work on your business planning and business idea. Once you have a sense for the flow, specs, and details, etc. that business plans have, utilizing a business plan template will help you pull everything together, helping you create a plan investors and other stakeholders will value. A solid business plan will also help you if you need a bank loan, which may require a startup business plan. Download our free business plan template to help you get started on your own business plan.
Free Download : Free Business Plan Template PDF
3. How do you get started with a sample business plan and maximize its benefit?
First you should read the business plan thoroughly. Study both the type of information provided in key sections like the executive summary, target market analysis, summary, etc., as well as the format and style of the plan. As you read, you may find yourself thinking through things such as improving or evaluating your business planning process, your business idea, or reconsidering who you want to write your business plan for. This is OK and part of the process. In fact, when you start writing a business plan for the first time, it will be much easier because you’ve gone through this process.
After this initial read, outline your business plan and copy in from the sample plan sections that apply to your business. For instance, if the sample plan included public relations in their marketing strategy and sales plan, and you will also use this tactic, you can copy it into your plan and edit it as appropriate. Finally, answer the other questions answered in the sample plan in ways that reflect your unique business and target customers.
Writing a business plan can seem daunting. Starting your business plan writing process by reviewing a plan that’s already been created can remove a lot of mental and emotional barriers while helping you craft the best plan you can.
4. When should you not use a sample business plan?
If your business is unlike any other, using a sample business plan will not be as effective. In this situation, writing a business plan from scratch utilizing a business plan template is probably your best path forward.
As an example, Facebook’s early business plan was unlike others since it was paving a new path and way of doing business. But, groundbreaking new businesses like Facebook are not the norm, and the vast majority of companies will benefit from utilizing sample business plans.
5. How do you choose the right type of business plan for your venture?
Selecting the appropriate type of business plan depends on your business’s stage, needs, and goals. Let’s explore the different types of business plans and how to determine which business plan format is right for you.
- Startup Business Plan : This type of plan is for businesses just starting out and seeking funding or investment. It typically includes a detailed analysis of the market, target audience, competition, and financial projections.
- Traditional Business Plan : Traditional business plans are the most common type of business plan, used by established businesses to outline their goals and strategies. It includes all the key sections such as market analysis, company description, and financial statements.
- Internal Business Plan : Internal business plans are used for internal purposes, to guide the day-to-day operations and decision making of the business. It may not be as detailed as a traditional business plan, but still includes important information such as company mission, objectives, and key performance indicators.
- Feasibility Business Plan : A feasibility business plan is used to assess the viability of a new product or service in the market. It includes detailed research and analysis to determine if the business idea is feasible and profitable.
- One-Page Business Plan : As the name suggests, this type of business plan is condensed into one page and includes the most critical information about the business. It can be a useful tool for pitching to potential investors or partners.
- Strategic Business Plan : A strategic plan looks at the big picture and long-term business goals of a company. It may include the company’s mission statement, core values, and overarching strategies for achieving success.
Ultimately, the type of business plan you choose will depend on your business’s specific needs and goals. It may also be beneficial to combine elements from different types of plans to create a customized plan that best fits your business. Carefully consider your objectives and resources before deciding on the right type of plan for your venture.
Finish Your Business Plan in 1 Day!
Don’t you wish there was a faster, easier way to finish your business plan?
With Growthink’s Ultimate Business Plan Template you can finish your plan in just 8 hours or less!
The business plan example below is for Shoutmouth, a company that enjoyed much success in the early 2000’s and which was able to raise funding. While the plan’s premise (social networking) is not as unique now as it was then, the format and structure of this business plan still holds.
I. Executive Summary
Business Overview
Launched in late February 2007, Shoutmouth.com is the most comprehensive music news website on the Internet .
Music is one of the most searched and accessed interests on the Internet. Top music artists like Akon receive over 3 million searches each month. In addition, over 500 music artists each receive over 25,000 searches a month.
However, music fans are largely unsatisfied when it comes to the news and information they seek on the artists they love. This is because most music websites (e.g., RollingStone.com, MTV.com, Billboard.com, etc.) cover only the top eight to ten music stories each day – the stories with mass appeal. This type of generic coverage does not satisfy the needs of serious music fans. Music fans generally listen to many different artists and genres of music. By publishing over 100 music stories each day, Shoutmouth enables these fans to read news on all their favorite artists.
In addition to publishing comprehensive music news on over 1200 music artists, Shoutmouth is a social network that allows fans to meet and communicate with other fans about music, and allows them to:
- Create personal profiles
- Interact with other members
- Provide comments on news stories and music videos
- Submit news stories and videos
- Recommend new music artists to add to the community
- Receive customized news and email alerts on their favorite artists
Success Factors
Shoutmouth is uniquely qualified to succeed due to the following reasons:
- Entrepreneurial track record : Shoutmouth’s CEO and team have helped launch numerous successful ventures.
- Affiliate marketing track record : Online affiliate marketing expertise has been cited as one of MySpace’s key success factors. Over the past two years, Shoutmouth’s founders have run one of the most successful online affiliate marketing programs, having sold products to over 500,000 music customers online.
- Key milestones completed : Shoutmouth’s founders have invested $500,000 to-date to staff the company (we currently have an 11-person full-time team), build the core technology, and launch the site. We have succeeded in gaining initial customer traction with 50,000 unique visitors in March, 100,000 unique visitors in April, and 200,000 unique visitors in May 2007.
Unique Investment Metrics
The Shoutmouth investment opportunity is very exciting due to the metrics of the business.
To begin, over the past two years, over twenty social networks have been acquired. The value in these networks is their relationships with large numbers of customers, which allow acquirers to effectively sell to this audience.
The sales price of these social networks has ranged from $25 to $137 per member. Shoutmouth has the ability to enroll members at less than $1 each, thus providing an extraordinary return on marketing expenditures. In fact, during an April 2007 test, we were able to sign-up 2,000 members to artist-specific Shoutmouth newsletters at a cost of only 43 cents per member.
While we are building Shoutmouth to last, potential acquirers include many types of companies that seek relationships with music fans such as music media/publishing (e.g., MTV, Rolling Stone), ticketing (e.g., Ticketmaster, LiveNation) and digital music sales firms (e.g., iTunes, The Orchard).
Financial Strategy, Needs and Exit Strategy
While Shoutmouth’s technological, marketing and operational infrastructure has been developed, we currently require $3 million to execute on our marketing and technology plan over the next 24 months until we hit profitability.
Shoutmouth will primarily generate revenues from selling advertising space. As technologies evolve that allow us to seamlessly integrate music sampling and purchasing on our site, sales of downloadable music are also expected to become a significant revenue source. To a lesser extent, we may sell other music-related items such as ringtones, concert tickets, and apparel.
Topline projections over the next three years are as follows:
| 2007 | 2008 | 2009 | |
| Shoutmouth Members | 626,876 | 4,289,580 | 9,577,020 |
| Unique Visitors | 2,348,050 | 8,390,187 | 18,633,659 |
| Total Page Views (Millions) | 20.7 | 273.5 | 781.0 |
| Revenues | $165,431 | $2,461,127 | $7,810,354 |
| Expenses | $1,407,958 | $2,591,978 | $2,838,423 |
| EBITDA | ($1,242,527) | ($130,851) | $4,971,931 |
II. Shoutmouth Overview
What is Shoutmouth?
Shoutmouth is an operating company of The Kisco Group Inc. (TKG). Since 2003, TKG has capitalized on web-based marketing opportunities via launching targeted websites and generating web-based leads. TKG revenues in 2005 exceeded $1.3 million and grew to $3.5 million in 2006. Shoutmouth is currently the sole focus of TKG; all other TKG business units have been divested.
Development of Shoutmouth began in August 2006 and the site officially launched on February 21, 2007. Shoutmouth (located at www.shoutmouth.com) is the most comprehensive music news community on the Internet. The website covers 1,200 popular bands and music artists and offers more than 100 new music articles each day. In addition to providing news, Shoutmouth is a web community. That is, Shoutmouth members can actively participate on the site, by doing things such as commenting on news stories and submitting their own stories.
The Market Size and Need for Shoutmouth
The music market is clearly vast. According to IFPI, which represents the recording industry worldwide, global music sales were $33.5 billion in 2005, with the U.S. accounting for $12.3 billion of that amount. Importantly, digitally music sales are seeing substantial growth, with IFPI reporting sales of $400 million in 2004, $1.1 billion in 2005 and $2 billion in 2006.
Online, music is the one of the most frequently searched and accessed interests. For example, according to Wordtracker, the music artist Eminem received over 1.7 million web searches in December 2006, while band Green Day received 534,000 searches.
To put these figures in perspective, top celebrities in other entertainment fields receive but a fraction of this search volume. For example, December 2006 search volumes for select sports stars and actors were as follows: Kobe Bryant, 122K; Tiger Woods, 88K; Cameron Diaz, 332K; and Tom Cruise, 82K.
Conversely, 225 music artists received over 100,000 searches in December 2006, and over 500 music artists received over 25,000 searches.
This data is corroborated by Nielsen BuzzMetrics which plots the most popular topics bloggers are posting about. The chart to the right plots September 25, 2006 to March 25, 2007 and shows how music dominates other entertainment sectors online.
When searching for music artists online, fans, which are primarily between the ages of 13 and 35, are looking for news, pictures, lyrics, videos and audio files. In addition, fans enjoy publicly voicing their opinions about music and interacting with other fans.
There is currently no website besides Shoutmouth that provides comprehensive music news. Currently, to get the latest news on their favorite artists, fans must visit the official websites or fan websites of each of the artists they like . Even then, it is unlikely that the fan will get all the news that has occurred. To solve this problem, Shoutmouth scours the web and uncovers news from thousands of web sites.
What Shoutmouth Does and Will Offer
As of May 2007, the site covers the 1,200 most popular music artists (popularity primarily based on the number of web searches over the past 12 months for each artist).
Shoutmouth currently offers members the ability to:
- Read over 500 new music articles each week
- Read special features such as album reviews, interviews, new album release dates, top quotes of the week and other special reports
- Watch and rate music videos
- Listen to select music audio clips
- Comment on news stories and music videos
- Submit news stories that they see/hear of elsewhere
- Suggest new music artists to add to the site
- View articles by music artist or by genre (current genres include Rock, Pop, Rap, R&B, Country, and Electronic)
- Create a user profile that includes their favorite music artists, Shoutmouth friends, news stories submitted to Shoutmouth, and comments made. Members have the ability to find other members based on their favorite artists and via our search functions.
- Receive customized news and email alerts. Members can customize their “My News” page to include only artists they specify. Likewise, they can choose to receive email alerts whenever there is a new story on one of their favorite artists.
While establishing itself as the premier music news community, Shoutmouth will embark on the more aggressive goal of becoming the premier music community online . To accomplish this, Shoutmouth will begin to offer additional content (more videos, audio, pictures, lyrics, etc.) and additional functionality (music compatibility testing (e.g., if you like this, you’ll like this), voting capabilities, member-to-member messaging, etc.). We have already begun mapping out our content and technology growths plans to achieve this goal upon financing.
Importantly, Shoutmouth expects to be able to add massive amounts of relevant content (e.g., lyrics, reviews, pictures, video files, audio files, etc.) via member submissions and moderation. This is the same way that YouTube has been able to quickly add millions of videos and Wikipedia has been able to add millions of articles. Importantly, since established music websites (e.g., MTV, RollingStone.com, Billboard.com, etc.) are not community based, they would have to hire thousands of staff members to rival the content that Shoutmouth will have.
How We Get and Publish Our News
Currently, news stories that appear on Shoutmouth are gathered from numerous online sources. Shoutmouth’s staff writers find these stories by using RSS and News feeds that cover thousands of websites. In addition, Shoutmouth community members have the ability to submit stories they find elsewhere.
Typical stories include factual information plus the insight of the author. Shoutmouth editors ensure that all stories are properly classified by artist and genre, and that duplicate articles are filtered out.
Over the past three months, Shoutmouth has developed a solid infrastructure, which we consider a core competitive advantage, that that allows us to provide comprehensive music news . This infrastructure includes:
- Setting up hundreds of RSS feeds based on comprehensive research regarding sites from which to receive feeds
- Training our editorial team regarding identifying a story and weeding out duplicates
- Assigning music artists among our five-person editorial team to better manage work flow and avoid duplicate articles
We are working on a system to ensure that member-submitted articles are automatically routed to the appropriate member of Shoutmouth’s editorial team to improve our efficiencies further.
Shoutmouth’s Goal to Break News First
The majority (approximately 90%) of Shoutmouth’s articles are currently developed by our in-house editorial team, while the balance is submitted by members. In addition, virtually all of our articles are based on information gleaned from other websites. As such, we are generally not the first to publish news; however we are the first and only site to publish all the news in one easily-accessible place. The one current exception is news which is published on bands’ official MySpace pages; Shoutmouth generally publishes articles on this news 24 to 48 hours before it is reported by other news or music sites (due to our efficiencies in finding news).
Shoutmouth realizes that it will gain a key competitive advantage, and will generate significant market buzz, if it is able to report on music news stories before other media sources . To accomplish this, we have begun contacting publicity departments at record labels to gain direct access to music news. We expect these contacts to enable us to gain immediate and sometimes exclusive access to news which will help further establish Shoutmouth as the canonical source for music news. We also plan to more aggressively solicit member submissions of new, buzzworthy news events and will consider offering rewards for unique substantiated news (much the way paparazzi are compensated).
III. Competition in the Online Music Market
This section of the business plan provides a competitive analysis, which is an overview of the competitive landscape, discusses both indirect and direct competitors and then details Shoutmouth’s competitive advantages.
Because consumer demand for music on the Internet is so great, there are a vast number of music websites. In summary, we consider most sectors of the online music market (which are discussed below) to be indirect competitors and potentially partners, rather than direct competitors, because none of them focus on music news.
The reason we believe that no one focuses on music news is that it is very difficult to do. Because news is very important to music fans, most music websites offer news. However, they primarily get their news from organizations such as CNN, Reuters, the Associated Press and BBC. These large organizations only write about the music stories that have mass appeal, which traditionally amounts to 8-10 music news stories per day. However, since music fans are often zealots when it comes to their favorite artists, they are not merely interested in cover stories. For instance, a U2 fan cares about any U2 news, particularly news that a non-U2 fan might consider insignificant.
In fact, because Shoutmouth is the sole one-stop shop for getting comprehensive music news, there might be an opportunity to license our content to other music websites.
Sectors of the Online Music Market
Shoutmouth specifically comPs in the community-based music news market. While players in this market represent direct competitors, Shoutmouth faces indirect competitors in the following markets:
- Community-Based Sites
- Community-Based News Sites
- Community-Based Music Sites
- Traditional Music Websites
- Official Artist and Fan Sites
Each of these markets is described below.
A. Community-Based Sites
Community-based sites, also known as social networking sites, are websites in which members can create profiles, leave comments throughout the site, and communicate with other members among other features.
A June 2006 report by Piper Jaffray entitled “Silk Road: Social Networking is Here to Stay” effectively sums up the power and longevity of social networking:
“We believe social networking sites have become a permanent part of the fabric of web applications and are rapidly becoming one of the most popular activities online, potentially impacting how other popular services such as email, IM, and maybe even search are accessed.
As a clear indication of the growth rate and scale of social networking, consider this: MySpace monthly page views have now surpassed MSN or AOL in the U.S. and are nearly 75% of the size of Yahoo!. Social networking has filled a gap that was left by all the existing portals and web services and it is fulfilling a very important and basic function for millions of users: allowing them to express themselves and connect with their friends, with the two functions tightly integrated.
The leading sites such as MySpace (News Corp), Facebook, and others are amassing significant power in the new landscape of the Internet and the existing Internet companies are likely to have to work with these newcomers as they may yield material control on the flow of traffic to other applications.”
Social networking sites such as MySpace.com, Facebook.com, Tagged.com, and TagWorld.com have educated consumers regarding the value of these sites and how to use them. Their success has spurred genre-specific social networks such as community-based/social networking news sites and music sites, which are discussed below.
Shoutmouth doesn’t view established social networking sites as competitors since these sites have a general focus. That is, members talk about all aspects of life, from dating to music to movies, etc. Conversely, Shoutmouth is solely focused on music.
B. Community-Based News Sites
Community-based news sites are sites in which members decide what’s newsworthy and what’s not. For instance, on Digg.com, the most prominent community-based news site, members “Digg” stories that they feel are most newsworthy. The stories that the community feels are most important rise to Digg’s homepage, while less important stories get little attention.
Digg’s one million members can submit stories, “digg” stories, and comment on stories. Digg focuses on general news with a slant towards technology, gaming and unique/sensational news. While Digg does have a Music area within its Entertainment section, this receives little focus. In fact, at the time of the writing of this plan, Digg’s music home page only includes one article submitted within the past 48 hours. Furthermore, Digg doesn’t pare down the music category into sub-categories such as Rock and individual music artists. Conversely, these sub-categories are the entire focus of Shoutmouth.
Other sites that are similar to Digg include Newsvine.com, Spotback.com and Gabbr.com. Of most relevance is the Digg-like site for music, Noisetap.com, which was launched by Ticketmaster in January 2007.
Like Digg, Noisetap.com allows members to submit and vote for music stories. Noisetap.com is organized by music genre and not by music artist. This most likely will not satisfy the needs of many music fans since they don’t have the ability to find news on the specific artists they care most about. Likewise, without a full-time staff actively researching and publishing news stories at the artist-level, Noisetap.com will never be able to offer the comprehensive news that Shoutmouth does.
While Shoutmouth is currently similar to community-based news sites in that members can submit stories and comment on the news they find most interesting, no established player in the market provides a comprehensive focus on music. In addition, Shoutmouth sees these sites as marketing partners as we have and will continue to submit our stories on them to increase our readership.
C. Community-Based Music Sites
There are many community-based music websites, although none focuses on music news such as Shoutmouth. Conversely, these sites generally give members the ability to create and listen to song play lists. The community acts to help individual members find new music and new friends based on similarities in their music tastes. Prominent sites in this genre include Last.fm, Finetune, Pandora, RadioBlogClub, MyStrands, iLike[1] and iJigg.
Last.fm is the most prominent community-based music site and is a good model with which to compare Shoutmouth. Likewise, we will benchmark our performance against Last.fm as we reach of goal of becoming the premier music news community and focus on becoming the premier music community.
According to Alexa, Last.fm is the 359th most visited site on the Internet. While Last.fm focuses on allowing members to create customized Internet stations based on their music tastes, the site has much additional content and social networking features. For instance, for each artist, Last.fm includes pictures, a bio, concert dates, discography, fans on Last.fm, and similar artists. Fans are also able to create journals and communicate with other fans. Key features that Last.fm doesn’t currently focus on include news and video.
D. Traditional Music Websites
Traditional music websites such as MTV.com, RollingStone.com, Billboard.com, NME.com, AOL Music, and Yahoo! Music tend to have many features such as news, reviews, pictures, videos and audio. While these sites are generally very well done and extremely popular, they are under-serving visitors in two core areas: music news and community .
These sites’ lack of music news stems from the difficulty in creating this news, specifically that it requires filtering through thousands of articles and websites to find relevant stories. Likewise, as discussed, these firms might wish to license our news content in the future.
Regarding community , none of the top music sites are thriving communities. Rather, either these sites offer no community features or they recently began offering select features (e.g., submitting reviews or commenting on articles). Even when available, the community features on these sites are afterthoughts and are not engrained within the core fabric of the sites.
While they haven’t been able to transform their current sites into communities, top music websites clearly understand the power of online music communities and have an appetite for them. For example, in January 2007, MTV invested in social networking website TagWorld. MTV also acquired RateMyProfessors.com and Quizilla.com (teen social network) in January 2007 and October 2006 respectively.
As mentioned previously, our vision is to build and incorporate additional technologies, and use our “army” of members to publish vast amounts of music content on Shoutmouth, in order to fully satisfy music fans and leapfrog traditional music sites in terms of their music content.
E. Official Artist and Fan Sites
Shoutmouth com’s with official music artist websites and fan websites. These sites often include news about the specific artist as well as pictures, videos and other relevant information.
On one hand, official music artist and fan websites are direct competitors to Shoutmouth. This is because some of these sites offer comprehensive news on the specific artist they cover. In addition, many offer forums, discussion boards or other ways to communicate with other fans.
However, two factors separate Shoutmouth from these types of sites: 1) breadth and 2) sophistication.
- Breadth : Most music fans love more than one artist. As such, in order to get the news they want, they would have to visit/join multiple fan or artist websites rather than getting all of their news from Shoutmouth.
- Sophistication : While some official music artist websites are technologically sophisticated, offering forums, networking and other worthwhile features, the majority of artist and fan websites have limited usability, functionality and networking ability. In fact, this deficiency has lead to the success of MusicToday, which provides front and back-end technology to power artist websites.
Specifically, MusicToday offers web design and hosting, develops sophisticated online stores, builds online fan clubs and offers web ticketing among other services to select top music artists such as Dave Matthews Band, Christina Aguilera, Kenny Chesney, Britney Spears and Usher. While offering sophisticated tools for select music artist websites, MusicToday offers little to no music news nor advanced social networking functions. For instance, the official Dave Matthews Band website offers less than one news story per month.
F. Direct Competitors: Community-Based Music News Sites
Shoutmouth’s direct competitors are other music news websites that have social or community features that allow users to join the site, submit articles, comment on articles, create public profiles and/or communicate with other members. Shoutmouth has identified one significant player who offers this service, AbsolutePunk.net.
AbsolutePunk.net has done a good job of building a user base (the site claims 125,000+ registered members and nearly 500,000 un-registered members). In addition, the user base is very active — the average story on their site receives approximately 20 comments. AbsolutePunk.net offers music news, reviews, pictures and interviews among other features.
On the negative side, AbsolutePunk.net’s articles are generally posted by one staff writer (as opposed to Shoutmouth’s five writers), most articles are simply one sentence posts rather than full articles, and no attempt seems to have been made to cover all news stories. In addition, the site only covers the punk music genre. Although “punk” is broadly defined on the site, the site doesn’t cater to genres such as R&B, rap and country among others, failing to satisfy the broader market.
AbsolutePunk.net is owned by Indieclick, a Los Angeles-based media company. According to the AbsolutePunk.net website, the site:
- Has developed a loyal (72% return rate) reader base
- 5,182,147 Posts
- 163,535 Threads
- 126,448 Members
- 1,711 Artist Profiles
- 20,774 Multimedia Files
- Approx 76,000 visits per day.
- Approx 276,000 pageviews per day.
Shoutmouth’s Competitive Advantage
In addition to being the first to fill the untapped market void for comprehensive music news, Shoutmouth’s competitive advantage in the market primarily includes the following:
Online Marketing Sophistication
Content Development Experience and Expertise
Shoutmouth’s team, primarily team members DL and PF, has operated an affiliate marketing business focusing on music for the past four years. Affiliate marketing is defined as a system of revenue sharing between one site (the affiliate) which features an ad or content designed to drive traffic to another site (the merchant). The affiliate receives a fee based on traffic to the merchant which converts to sales.
Our affiliate business has focused on connecting music fans, primarily aged 13 to 30, with music offers such as iPods and ringtones. Over the past two years, we have successful sold affiliated offers to over 500,000 customers. We have become a significant online advertiser, receiving Google’s “over 1 million leads” award, and are recognized as a major player among the top affiliate networks.
It is important to note that affiliate marketing success has been credited with part of MySpace’s success. This is because effective affiliate marketers understand how to drive and convert on Internet traffic.
Shoutmouth will employ its affiliate marketing techniques to drive traffic to Shoutmouth.com and enroll members. We will utilize technologies and proprietary techniques that allow us to monitor multiple metrics such as the cost per visitor, cost per member sign-up, etc., so that we can set and maintain profitable metrics.
Another venture that Shoutmouth team members, primarily PK and DL, launched was the development of over 3,000 niche websites. To create the content for these websites, we employed a virtual work force of over 90 researchers in India and 30 writers and editors in the US.
This experience taught us how to manage a large workforce, train writers to improve content quality and motivate a large group of people. These skill sets will be critical in allowing Shoutmouth to grow the content of the site, as developed by both staff and members, while maintaining quality standards.
IV. Marketing Plan
Shoutmouth’s marketing plan includes the following:
Online Advertising : Shoutmouth will initiate pay-per-click advertising campaigns on Google and Yahoo! in order to inexpensively drive traffic to the site. Specifically, Shoutmouth believes it can drive qualified traffic to the site for 20 cents per visitor and achieve a 20% member conversion rate, thus generating members at a cost of $1.00 per member.
Keys to Shoutmouth’s success in achieving this metric include:
- Conducting thorough keyword research and advertising on appropriate keywords and keyword groups
- Creating advertising text that maximizes click through rates
- Creating landing pages that maximize conversions while maintaining the highest Google AdWords quality score possible
- Closely monitoring conversions to quickly stop and/or modify unprofitable campaigns
- Getting individuals to enter their email address to join the newsletter is much easier than getting them to join a site where they have to create a username, select a password, etc. As such, step one will be to get visitors to sign up for artist-specific newsletters.
- Once on the newsletter distribution list, members will constantly receive messages (embedded in their daily newsletter) regarding the benefits of participating more on Shoutmouth.
- Active Shoutmouth Membership: the constant reminders regarding Shoutmouth’s value proposition in the daily newsletters will influence members to participate more actively on the site (e.g., customize their profile, visit the site more often, etc.).
Invite-A-Friend : Shoutmouth is in the process of creating an aggressive invite-a-friend/member referral program. In doing so, we are following the lead of social movie community, Flixster, which grew to 5 million members within 10 months. It did this by encouraging members, during their initial registration process, to upload and send an invitation to multiple contacts in their email address books. The technology to develop this process is fairly complex and we expect to be completed with and to rollout this program in June 2007.
Direct Email Marketing : Shoutmouth will directly contact bloggers and prominent music fans we find online to tell them about Shoutmouth, encourage them to join, and encourage them to write about Shoutmouth on their blogs and online journals .
Creating/Distributing Buzzworthy/Viral Content : Shoutmouth plans to have several buzzworthy/viral articles (i.e., content that people would want to email to their friends since it is funny, interesting, etc.) on the site each day. With a single click, visitors will be able to send these articles to social bookmarking sites such as Digg.com or Fark.com, where these articles could receive widespread attention. In addition to our traditional news stories, Shoutmouth will also periodically create special reports/features in order to satisfy our members and visitors and to try to get widespread exposure.
An example of the power of such buzzworthy content, Shoutmouth has already succeeded in having two stories accepted by Fark and Digg, which have brought in over 50,000 unique visitors.
Super Fans/Street Team Development : Shoutmouth also plans to recruit “super fans.” Super fans are individuals who are passionate about a certain music artist/band and actively contribute articles and/or comments on Shoutmouth. We will recruit these fans, reward them with status (e.g., adding a gold Shoutmouth headphones image to their profile page) and encourage them to more aggressively promote the site by:
- Submitting more news to Shoutmouth
- Commenting on more articles on Shoutmouth
- Growing the Shoutmouth community around their favorite artist(s) by actively recruiting new members to join the site (such as actively posting Shoutmouth-related comments on their MySpace pages, on other music forums, etc.)
Public Relations : Upon financing, Shoutmouth will hire a public relations firm to help us get mentions in media sources ranging from magazines, newspapers, radio, television and blogs. To date, we have developed and issued press releases via Billboard Publicity Wire which have been syndicated throughout the web. An effective PR firm will enable Shoutmouth to quickly reach a wide audience.
Widgets : Shoutmouth will create artist-specific and genre-specific music news widgets. For example, our U2 widget (see example on right) would include all of the recent U2 articles published on Shoutmouth. The widget can easily be placed on MySpace pages, blogs, etc. Each story title in the widget links to the full article on Shoutmouth.
Shoutmouth has great expectations for our widget. To begin, no such widget currently exists as there is no one place to get comprehensive news for specific music artists. Secondly, each time someone places a Shoutmouth widget on their blog or social networking page, it will effectively market Shoutmouth to a wide audience at zero cost to us.
V. Technology/Site Development Plan
This section provides a brief roadmap of the initial and future functionality of Shoutmouth.
Initial Site Functionality
The initial Shoutmouth website will include the following features:
- Ability to submit and comment on news stories
- Ability to suggest new music artists to add to the site
- Ability to create user profiles
- Ability to receive customized news and email alerts
- Articles categorized by artist and core genre (e.g., Rock, Rap, Pop, etc.)
- Music artist sections which includes News, Bio and Fans
Future Site Functionality
Shoutmouth will use news and basic functionality as the platform though which we will build a thriving music community. After initial launch, the Shoutmouth technology team will work on incorporating additional features such as:
- Ability to message other members via the site (e.g., members will have an Inbox on the site)
- Event calendars: members will receive online calendars. With the click of a button, the member will be able to add tour dates of their favorite artists/bands to their calendar.
- Articles also categorized by sub-genre (e.g., Alternative Rock, West Coast Rap, etc.)
- Music artist sections to also include videos, audio files, photo galleries, reviews and event calendars to which members can upload files and vote on top content.
- Forums and member blogs
- Music compatibility testing (suggestions on song/artists members might like)
- Trivia quizzes
- Music playlists
VI. Financial Plan
Revenue Model
During the first six months, Shoutmouth will not generate any revenues as it will not sell advertising space nor offer products for sale. This decision has been made to spur the growth of the Shoutmouth community. By initially positioning Shoutmouth more as a non-profit, for-the-people-by-the-people venture, members will be more prone to promote the site and invite their friends than if the site looks too commercial.
Starting in September 2007, Shoutmouth will primarily generate revenues from selling advertising space. As technologies (such as the Snocap music widget) evolve that allow us to seamlessly integrate music sampling and purchasing on our site, sales of downloadable music are also expected to be a significant revenue source. To a lesser extent, we may sell other music-related items such as ringtones, concert tickets, and apparel.
Funding To Date
To date, Shoutmouth’s founders have invested $500,000 in Shoutmouth, with which we have accomplished the following:
- Built the site’s core technology
- Hired and trained our core staff (we currently maintain an 11-person full-time team)
- Populated the website with content (over 10,000 articles and 1,200 artist bios)
- Generated brand awareness among music fans, including driving 50,000 unique visitors in March, 100,000 unique visitors in April, and 200,000 unique visitors in May 2007.
Funding Requirements/Use of Funds
Shoutmouth is currently seeking $3 million to provide funding for the next 24 months. At this point, the site will be profitable and can grow organically, or additional capital may be sought to more aggressively expand our member base.
The capital will be used as follows:
- Execution of Marketing plan : in order for Shoutmouth to grow its visitor and member base, we need to invest dollars in online advertising and public relations. With regards to online advertising, we are confident that we can enroll members at a cost of $1 per member, which is a fraction of the value of the members to an acquirer (minimum $25 per member), thus providing a significant return on our marketing investments.
- Execution of Technology plan : in order to build a thriving community, Shoutmouth needs to offer its visitors a “stickier” website and enhanced features. We currently maintain a vast “wish list” of features, such as members uploading and rating pictures and videos, trivia quizzes, and member-to-member messaging, that will significantly improve the site’s functionality and value proposition.
- Staffing : In order to reach our goals, we will have to hire additional technical and operations personnel.
Financial Projections
Below is an overview of Shoutmouth’s Financial Projections for the next three years. Please see the Appendix for the full financial projections and key assumptions.
Exit Strategy / Valuation Metric
Shoutmouth’s most likely exit strategy is to be acquired by a traditional music website or property (e.g., Viacom/MTV, Ticketmaster, Rolling Stone), an entertainment/media conglomerate (e.g., Yahoo!, IAC/InterActiveCorp, NBC), or a large social networking site (e.g., News Corp/MySpace).
This strategy is supported by the significant M&A activity in the social networking market, which includes the following transactions over the past 24 months:
| Del.icio.us | social bookmarking | 12/05 | $30-$35 million | Yahoo! |
| eCrush Inc. | teen social network | 01/07 | Undisclosed | Hearst Magazines Digital Media |
| FanNation | sports social networking | 01/07 | $20+ million | Sports Illustrated |
| Five Across Inc. | social networking | 02/07 | Undisclosed | Cisco Systems Inc. |
| Flickr | photo uploading and sharing community | 03/05 | $15-35 million (rumored) | Yahoo! |
| Grouper | video creating, uploading and sharing community | 08/06 | $65 million | Sony Pictures |
| Jumpcut | video creating, uploading and sharing community | 09/06 | $15 million (rumored) | Yahoo! |
| KiwiBox.com | teen social network | 02/07 | Undisclosed | Magnitude Information Systems, Inc. |
| MyBlogLog | blog community tool | 01/07 | $10 million (rumored) | Yahoo! |
| MySpace | social networking | 07/05 | $580 million | News Corp. |
| Quizilla.com | teen social network | 10/06 | Undisclosed | Viacom/MTV Networks |
| RateMyProfessors.com | community focused on rating college professors | 01/07 | Undisclosed | Viacom/MTV Networks |
| social news site | 10/06 | Undisclosed | Conde Nast/ Wired Digital | |
| Sconex.com | social network for high school students | 03/06 | $6.1 million | Alloy Inc. |
| TelevisionWithoutPity.com | TV fan site | 03/07 | Undisclosed | Bravo |
| Weblogs Inc. | blogging network | 10/05 | $25 million (rumored) | AOL |
| YouTube | video community | 10/06 | $1.65 billion | Google Inc. |
Regarding valuation, below are the estimated valuations of social networking companies on a per member basis upon exit:
- Del.icio.us: $50 – $100 per member
- MySpace: $25 per member
- Xing (business social network): $137 per member at IPO in 10/06
- Flickr: $56 – $130 per member
- Grouper: $130 per member
Based on this data, not only are social networking sites a promising investment, but sites that can acquire members for less than $25 each (a conservative valuation estimate based on the figures above), should earn a solid return on investment. As discussed above, Shoutmouth’s goal is to acquire members for no more than $1 each.
In addition, per the membership projections above, Shoutmouth’s valuation at the end of 2009, at a $25 valuation per member, is expected to be $239 million. A more conservative, using a 24.4 time EBITDA multiple (the average multiple of tech M&A deals in 2006 according to The M&A Advisor), yields a $121 million valuation in 2009.
Shoutmouth’s founding team includes entrepreneurs and managers with a track record of success and a history of successfully working together.
Management Team
DL, Co-Founder and CEO
D has a history of successfully launching and growing businesses of all sizes. As president and co-founder of an entrepreneurial services firm., D has personally assisted in the launch and development of over 100 ventures.
Over the past three years, D founded and has managed The Kisco Group which includes an affiliate marketing division (2006 revenues exceeded $3 million), a search engine optimization business which includes a network of 3,000 websites (2006 revenues exceeded $500,000) and an e-commerce business (which includes TopPayingKeywords.com and ShowerHeadsEtc.com).
D earned his Bachelors degree from the University of South Carolina.
PK, Co-Founder and Vice President of Operations
For the past two years, P has managed The Kisco Group’s search engine optimization business where he hired, trained and managed nearly 100 employees and a dozen outside firms. During this time, P has honed his management skills with regards to content development, marketing and operations.
P has had a passion for music since childhood and has been a semi-professional drummer for the past 15 years.
P earned his Bachelors of Arts degree, magna cum laude, from Clemson University.
PF, Co-Founder and Vice President of Technology
For the past year, P has managed The Kisco Group’s affiliate marketing business. In addition to setting up and managing widespread marketing campaigns, P has developed sophisticated analytic techniques to precisely analyze web traffic in order to optimize profitability.
Since August 2006, P has shifted his efforts and leveraged his technology skills in developing the Shoutmouth website. P has been instrumental in selecting the Content Management Platform upon which Shoutmouth is built, and finding and managing the technology team.
P earned his Bachelor of Arts degree from Swarthmore College.
AB, Marketing Manager
A’s background in music includes being a singer, songwriter, guitarist and producer. He has also worked on the marketing side of music, having marketed Veritas Records through the development and distribution of promotional materials.
A’s career also includes psychological research and administration, having served as a Research Assistant with the Interpersonal Perception And Communication Laboratory in Cambridge, MA.
A earned his Bachelor of Arts degree in Psychology from Ohio State University.
M, Lead Technology Developer
M is an experienced web programmer with expertise in web design, application development and database development among others.
M’s work experience includes serving as a Senior Developer at Spheres. M has also engaged in multiple, long term freelance projects including serving as a Database Developer Consultant with The Penn Group and a Web Developer Consultant with Volution Media Group and Allied Online Consulting Group.
M earned his Bachelors degree in Computer Science with a minor in Cognitive Science from Rutgers University.
Content Development Team
Shoutmouth’s writing team, managed by PK, includes the following members:
- JS, Editorial Manager: former content manager and copywriter for Scholastic Inc. and Promotions.com.
- TZ: former music intern (Virgin Records and WRRV) and author of the blog, The Tom Z Show .
- ML: former assistant editor for Adventure Publishing; author of the blog Certified Gangsta ; and former editor-in-chief of Fordham University’s newspaper The Paper .
- SB: former staff writer for Paste Magazine , The Clarion Ledger , and Nightclub and Bar Magazine among others.
- CSJ: former editorial intern for Rolling Stone and Editorial Assistant for Psychology Today .
Outsourced Technology Team
Shoutmouth works very closely with 2skies, a technology firm based in Australia with staff in Australia and the United States. 2skies is run by JDN, one of the co-founding developers of XE, the platform upon which Shoutmouth is built.
XE is an extensible, Open Source web application framework written in PHP and licensed under the GNU General Public License. XE delivers the requisite infrastructure and tools to create custom web applications that include fully dynamic multi-platform Content Management Solutions (CMS).
VIII. Appendix: Shoutmouth Financial Projections 3-Year Income Statement
| Total Page Views (MILLIONS) | |||
| Revenues | $165,431 | $2,461,127 | $7,810,354 |
| Staffing | $891,058 | $1,328,078 | $1,522,923 |
| Outsourced Technology | $115,000 | $60,000 | $60,000 |
| Office Space | $26,400 | $90,000 | $90,000 |
| Advertising | $254,000 | $900,000 | $900,000 |
| Other Marketing/Public Relations | $72,000 | $120,000 | $150,000 |
| Web Hosting | $11,500 | $33,900 | $55,500 |
| Other | $38,000 | $60,000 | $60,000 |
| $1,407,958 | $2,591,978 | $2,838,423 | |
| ($1,242,527) | ($130,851) | $4,971,931 | |
| Depreciation | $1,600 | $4,200 | $5,800 |
| ($1,244,127) | ($135,051) | $4,966,131 | |
| Income Taxes @ (40%) | ($497,651) | ($54,020) | $1,986,452 |
| Income Taxes Paid | $0 | $0 | $1,434,781 |
| Income Tax Credit | ($497,651) | ($551,671) | $0 |
| ($1,244,127) | ($135,051) | $3,531,350 |
3-Year Balance Sheet
As of December 31
| Cash | $1,845,206 | $1,614,336 | $4,726,360 |
| Accounts Receivable (30 days) | $13,597 | $202,284 | $641,947 |
| Inventory | $0 | $0 | $0 |
| Current Assets | $1,858,803 | $1,816,620 | $5,368,307 |
| Other Assets | |||
| Equipment (Computer systems, office equipment, etc.) | $16,000 | $26,000 | $32,000 |
| Accumulated Depreciation | ($1,600) | ($5,800) | ($11,600) |
| Total Long-Term Assets | $14,400 | $20,200 | $20,400 |
| $1,873,203 | $1,836,820 | $5,388,707 | |
| Accounts Payable (30 days) | $117,330 | $215,998 | $236,535 |
| Total Current Liabilities | $117,330 | $215,998 | $236,535 |
| Long Term Debt | $0 | $0 | $0 |
| Paid In Capital | $3,000,000 | $3,000,000 | $3,000,000 |
| Retained Earnings | ($1,244,127) | ($1,379,178) | $2,152,172 |
| Total Equity | $1,755,873 | $1,620,822 | $5,152,172 |
| $1,873,203 | $1,836,820 | $5,388,707 |
3-Year Cash Flow Statement
| Net Income/Loss | ($1,244,127) | ($135,051) | $3,531,350 |
| Depreciation | $1,600 | $4,200 | $5,800 |
| Minus Increase in Accounts Receivable | ($13,597) | ($188,687) | ($439,663) |
| Plus Change in Current Liabilities | $117,330 | $98,668 | $20,537 |
| Net Cash Flow from Operating | ($1,138,794) | ($220,870) | $3,118,024 |
| Purchases of Property & Equipment | ($16,000) | ($10,000) | ($6,000) |
| Net Cash Flow from Investing | ($16,000) | ($10,000) | ($6,000) |
| Cash Received from Investors | $3,000,000 | $0 | $0 |
| Net Cash Flow from Financing | $3,000,000 | $0 | $0 |
| $1,845,206 | ($230,870) | $3,112,024 | |
| $1,845,206 | $1,614,336 | $4,726,360 |
IMAGES
VIDEO
COMMENTS
Writing a trading business plan is a crucial step toward the success of your business. Here are the key steps to consider when writing a business plan: 1. Executive Summary. An executive summary is the first section planned to offer an overview of the entire business plan. However, it is written after the entire business plan is ready and ...
Steps to Write a Trading Business Plan. You can use a business plan template for a trading company or follow these steps to prepare a business plan for a personal trading business: Step 1: Define Your Goals and Investment Objectives. Step 2: Conduct Market Research. Step 3: Develop Your Trading Strategy.
Next, provide an overview of each of the subsequent sections of your plan. Give a brief overview of the trading industry. Discuss the type of trading business you are operating. Detail your direct competitors. Give an overview of your target customers. Provide a snapshot of your marketing strategy.
Specific. Each goal is direct, detailed, and meaningful. Measurable. Each goal is quantifiable to track progress or success. Attainable. ourselves. 1 Day trading is not a strategy to get rich quickly. 5 Success in day trading comes from risk management - finding low-risk entries with a high potential reward.
Business Plan Trading Company - Free download as PDF File (.pdf), Text File (.txt) or read online for free. This business plan proposes starting a trading company that buys and sells a variety of goods and provides customized logistics and transportation services. The company expects to generate revenue of $450,000-$600,000 in its startup phase primarily from trading, with additional revenue ...
Wait for a change in market behaviour (trend change). Identify distribution at the top and look for the mushroom, short as the mushroom declines at the far edge of chart. Identify accumulation at bottom and look for saucer shape being formed, go long as the price moves into the right edge of the saucer. Short on any core VSA sign of weakness.
A marketing plan outlines the strategies and tactics you will use to promote your trading company and its offerings. Start by defining your marketing objectives, such as increasing brand awareness, generating leads, or reaching new markets. Conduct market research to understand your target audience and their preferences.
Walter Import/Export is a start-up with a mission to provide complete import/export brokerage solutions. This import/export business will be run by owner Ramon Walter as a Limited Liability Company. Its services include purchase contracts, shipping, warehousing, and delivery. To unlock help try Upmetrics! . scheduling.
1. Executive Summary. An executive summary is the first section of the business plan, usually written at the last when the whole plan is ready. It provides a high-level overview of the import-export business plan. It summarizes the key points, from business concept to financial outlook, for a quick understanding of your business.
Trading firm business plan template. Sample template (structure) of a business plan for trading firms (in MS Word) Categories: Business foundation, Management, Company transactions, form sheet. 5,00 €. incl. 19% VAT.
In this international business plan, TSO3 is considering entering France's healthcare market. TSO3 is still a small company, with a (fluctuating) market capitalization of about $19.1M as of January 23rd 2009, and annual revenues of $1.7M. The company has 47.9M shares outstanding.
Template 4: Our Offerings. This PPT Design offers a quick glimpse into the comprehensive range of services your trading company provides. It underlines solutions you derived to address customers' requirements. Its layout accommodates up to five services and their brief description.
Using a trading plan template can streamline your strategy and increase chances of consistent profits. This article will help you with everything you need to know about developing a trading plan. We'll also include a trading plan PDF, a trading plan Excel template, and a Word document that you can download and use in your trading journey ...
determined % risk on each trade.2. I will ALWAYS use. s. op loss.3. I will NEVER move a stop loss in fear of it being. it. 4. I will STOP trading if the account goes to X% equ. ty. drawdown.5. I will NOT copy a trade signal because it looks. m. trading strategy rules.SIGNATU.
Lean Business Plan Template PDF. This scannable business plan template allows you to easily identify the most important elements of your plan. Use this template to outline key details pertaining to your business and industry, product or service offerings, target customer segments (and channels to reach them), and to identify sources of revenue.
Trading Business Plan Example - Free download as PDF File (.pdf), Text File (.txt) or read online for free. A trading business plan is a strategic framework for traders, defining goals, risk management, and entry/exit strategies. It promotes disciplined decision-making, ensuring consistency and informed trading, crucial for sustained success in the dynamic landscape of financial markets.
Download Simple Small-Business Plan Template. Word | PDF. This template walks you through each component of a small-business plan, including the company background, the introduction of the management team, market analysis, product or service offerings, a financial plan, and more. This template also comes with a built-in table of contents to ...
ThisThis Business Plan Template from is one of many free downloads available at Bplan. .comThis template is a simplified business plan out. ine. It's a good way to get started, but as you know, you can't just type in your details, print it, and turn it in to the. ank. Every business is unique, and your business plan should reflect.
Sample Business Plan for Tradesmen. 1st Floor, 6-8 Wilson Street, Brunswick 3056. Phone 9387 2086 Fax 9387 9473. Email [email protected]. Website www.lindamcgowan.com.au.
A trading plan should resemble a business plan. A trader's capital is their business and so we need to include everything that might be useful, but it should always cover the below. What to include in your trading plan. The time required to spend on your trading; Your trading goals and targets; Your risk tolerance and risk management rules
What is a Trading Plan. A trading sample plan is a set of documents that aims towards technical improvements, business security, or creating strategies. Business sectors or states usually do planning to achieve targets. As much as possible, the objective is to optimize profit while at the same time, achieve other vital goals.
PDF | On Jan 1, 2007, Fred Tanyi Besong published BUSINESS PLAN : Import, Export and Car Trading Company | Find, read and cite all the research you need on ResearchGate
Construction, Interior Design & Home Services Business Plan Templates & Samples. Construction Business Plan. Sample Construction Business Plan. Contractor Business Plan. Dumpster Rental Business Plan. Electrical Contractor Business Plan. Excavation Business Plan. Foreclosure Cleaning Business Plan.