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Mortgage Broker Business Plan Template

Written by Dave Lavinsky

mortgage broker business plan

Over the past 20+ years, we have helped thousands of mortgage brokers start and grow their businesses. On this page, we will first give you some background information with regards to the importance of business planning. We will then go through a mortgage brokerage company business plan step-by-step so you can create your plan today.

Download our Ultimate Business Plan Template here >

What Is a Business Plan?

A business plan provides a snapshot of your mortgage business as it stands today, and lays out your growth plan for the next five years. It explains your business goals and your strategy for reaching them. It also includes market research to support your business plans.

Why You Need a Business Plan

If you’re looking to start a mortgage broker business, or grow your existing mortgage broker business, you need a business plan. A business plan will help you secure funding, if needed, and plan out the growth of your mortgage broker business in order to improve your chances of success. Your business plan is a living document that should be updated annually as your company grows and changes.

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How to write a business plan for a mortgage company.

If you want to start a mortgage business or expand your current one, you need a business plan. Below are links to each section of your mortgage business plan template:

Executive Summary

Your executive summary provides an introduction to your business plan, but it is normally the last section you write because it provides a summary of each key section of your plan.

The goal of your Executive Summary is to quickly engage the reader. Explain to them the type of mortgage broker business you are operating and the status. For example, are you a startup, do you have a mortgage broker business that you would like to grow, or are you operating mortgage broker businesses in multiple markets?

Next, provide an overview of each of the subsequent sections of your plan. For example, give a brief overview of the mortgage industry. Discuss the type of mortgage broker business you are operating. Detail your direct competitors. Give an overview of your target market. Provide a snapshot of your marketing and sales strategy. Identify the key members of your team. And offer an overview of your financial plan.  

Company Analysis

In your company analysis, you will detail the type of mortgage broker business you are operating.

For example, you might operate one of the following types of mortgage broker businesses:

  • Retail Mortgage Broker : this type of mortgage broker business focuses on being a broker for individuals or small businesses.
  • Business/Corporate Mortgage Broker: this type of mortgage broker interacts with and provides services for mid-size businesses and corporate entities.
  • Private Mortgage Brokers: this type of mortgage broker’s clients are wealthy individuals and families with high net-worth levels.

In addition to explaining the type of mortgage broker business you will operate, the Company Analysis section of your business plan needs to provide background on the business.

Include answers to question such as:

  • When and why did you start the business?
  • What milestones have you achieved to date? Milestones could include the number of customers served, number of positive reviews, dollar of amount of total loans, etc.
  • Your legal structure. Are you incorporated as an S-Corp? An LLC? A sole proprietorship? Explain your legal structure here.

Industry Analysis

In your industry analysis, you need to provide an overview of the mortgage industry.

While this may seem unnecessary, it serves multiple purposes.

First, researching the mortgage industry educates you. It helps you understand the market in which you are operating. 

Secondly, market research can improve your strategy , particularly if your research identifies market trends.

The third reason for market research is to prove to readers that you are an expert in your industry. By conducting the research and presenting it in your plan, you achieve just that.

The following questions should be answered in the industry analysis section of your mortgage business plan:

  • How big is the mortgage industry (in dollars)?
  • Is the market declining or increasing?
  • Who are the key competitors in the market?
  • Who are the key suppliers in the market?
  • What trends are affecting the industry?
  • What is the industry’s growth forecast over the next 5 – 10 years?
  • What is the relevant market size? That is, how big is the potential market for your mortgage business? You can extrapolate such a figure by assessing the size of the market in the entire country and then applying that figure to your local population.

Customer Analysis

The customer analysis section of your mortgage broker business plan must detail the customers you serve and/or expect to serve.

The following are examples of customer segments : prospective home buyers, families, couples and small businesses.

As you can imagine, the customer segment(s) you choose will have a great impact on the type of mortgage brokerage you operate. Clearly, a single individual would respond to different marketing promotions than a large corporation, for example.

Try to break out your target market in terms of their demographic and psychographic profiles. With regards to demographics, including a discussion of the ages, genders, locations, and income levels of the potential customers you seek to serve.

Psychographic profiles explain the wants and needs of your target customers. The more you can understand and define these needs, the better you will do in attracting and retaining your customers.

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Competitive Analysis

Your competitive analysis should identify the indirect and direct competitors your business faces and then focus on the latter.

Direct competitors are other mortgage broker businesses. 

Indirect competitors are other options that customers have to purchase from that aren’t direct competitors. This includes real estate firms, loan officers, and bankers. You need to mention such competition as well.

mortgage brokerage competitive analysis matrix

  • What types of customers do they serve?
  • What type of mortgage brokerage are they?
  • What is their pricing (premium, low, etc.)?
  • What are they good at?
  • What are their weaknesses?

With regards to the last two questions, think about your answers from the customers’ perspective. And don’t be afraid to ask your competitors’ customers what they like most and least about them.

The final part of your competitive analysis section is to document your areas of competitive advantage. For example:

  • Will you provide lower interest rates?
  • Will you provide services that your competitors don’t offer?
  • Will you provide better customer service?
  • Will you offer better pricing?

Think about ways you will outperform your competition and document them in this section of your plan.  

Marketing Plan

mortgage broker marketing plan diagram

Price : Document the prices you will offer and how they compare to your competitors. Essentially in the product and price sub-sections of your marketing plan, you are presenting the services you offer and their prices.

Place : Place refers to the location of your mortgage company. Document your location and mention how the location will impact your success. For example, is your mortgage brokerage located in a busy retail district, a business district, a standalone office, etc. Discuss how your location might be the ideal location for your customers.

Promotions : The final part of your mortgage broker marketing plan is the promotions section. Here you will document how you will drive customers to your location(s). The following are some promotional methods you might consider:

  • Advertising in local papers and magazines
  • Reaching out to websites 
  • Social media marketing
  • Local radio and television advertising
  • Other digital marketing efforts such as paid advertising and search engine optimization for you business website

Operations Plan

While the earlier sections of your business plan explained your goals, your operations plan describes how you will meet them. Your operations plan should have two distinct sections as follows.

Everyday short-term processes include all of the tasks involved in running your mortgage brokerage, including marketing your services, reviewing credit history of clients, shopping amongst mortgage lenders, and gathering and completing all necessary documents to submit and have a loan approved. 

Long-term goals are the milestones you hope to achieve. These could include the dates when you expect to land your Xth client, or when you hope to reach $X in revenue. It could also be when you expect to expand your mortgage brokerage to a new city.  

Management Team

To demonstrate your mortgage brokerage’s ability to succeed, a strong management team is essential. Highlight your key players’ backgrounds, emphasizing those skills and experiences that prove their ability to grow a company. 

Ideally you and/or your team members have direct experience in managing mortgage broker businesses. If so, highlight this experience and expertise. But also highlight any experience that you think will help your business succeed.

If your team is lacking, consider assembling an advisory board. An advisory board would include 2 to 8 individuals who would act like mentors to your business. They would help answer questions and provide strategic guidance. If needed, look for advisory board members with experience in managing loan services or successfully running their own mortgage brokerage company .  

Financial Plan

Your financial plan should include your 5-year financial statement broken out both monthly or quarterly for the first year and then annually. Your financial statements include your income statement, balance sheet and cash flow statements.

mortgage brokerage sales growth

Balance Sheets : Balance sheets show your assets and liabilities. While balance sheets can include much information, try to simplify them to the key items you need to know about. For instance, if you spend $50,000 on building out your mortgage broker business, this will not give you immediate profits. Rather it is an asset that will hopefully help you generate profits for years to come. Likewise, if a bank writes you a check for $50,000, you don’t need to pay it back immediately. Rather, that is a liability you will pay back over time.

Cash Flow Statement : Your cash flow statement will help determine how much money you need to start or grow your business, and make sure you never run out of money. What most entrepreneurs and business owners don’t realize is that you can turn a profit but run out of money and go bankrupt. 

In developing your Income Statement and Balance Sheets be sure to include several of the key costs needed in starting or growing a mortgage broker business:

  • Advertising and marketing
  • Cost of equipment and supplies
  • Payroll or salaries paid to staff
  • Business insurance
  • Taxes and permits
  • Legal expenses

Attach your full financial projections in the appendix of your plan along with any supporting documents that make your plan more compelling. For example, you might include your office location lease or fees paid to support clients in finding the right mortgage loan.  

Putting together a business plan for your mortgage broker business is a worthwhile endeavor. If you follow the template above, by the time you are done, you will truly be an expert. You will really understand the mortgage industry, your competition, and your customers. You will have developed a marketing plan and will really understand what it takes to launch and grow a successful mortgage broker business.  

Mortgage Broker Business Plan FAQs

What is the easiest way to complete my mortgage broker business plan.

Growthink's Ultimate Business Plan Template allows you to quickly and easily complete your Mortgage Broker Business Plan.

What is the Goal of a Business Plan's Executive Summary?

The goal of your Executive Summary is to quickly engage the reader. Explain to them the type of mortgage broker business you are operating and the status; for example, are you a startup, do you have a mortgage broker business that you would like to grow, or are you operating a chain of mortgage broker businesses?

Don’t you wish there was a faster, easier way to finish your Mortgage Broker business plan?

OR, Let Us Develop Your Plan For You

Since 1999, Growthink has developed business plans for thousands of companies who have gone on to achieve tremendous success.   Click here to see how Growthink’s professional business plan consulting services can create your business plan for you.

Other Helpful Business Plan Articles & Templates

Business Plan Template & Guide For Small Businesses

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Essential requirements in crafting a one-page financial advisor business plan.

August 17, 2015 07:01 am 21 Comments CATEGORY: Practice Management

Executive Summary

In a world where most advisory firms are relatively small businesses, having a formal business plan is a remarkably rare occurrence. For most advisors, they can “keep track” of the business in their head, making the process of creating a formal business plan on paper to seem unnecessary.

Yet the reality is that crafting a business plan is about more than just setting some business goals to pursue. Like financial planning, the process of thinking through the plan is still valuable, regardless of whether the final document at the end gets put to use. In fact, for many advisory firms, a simple “one-page” financial advisor business plan may be the best output of the business planning process – a single-page document with concrete goals to which the advisor can hold himself/herself accountable.

So what should the (one-page) financial advisor business plan actually cover? As the included sample template shows, there are six key areas to define for the business: who will it serve, what will you do for them, how will you reach them, how will you know if it’s working, where will you focus your time, and what must you do to strengthen (or build) the foundation to make it possible? Ideally, this should be accompanied by a second page to the business plan, which includes a budget or financial projection of the key revenue and expense areas of the business, to affirm that it is a financially viable plan (and what the financial goals really are!).

And in fact, because one of the virtues of a financial advisor business plan is the accountability it can create, advisors should not only craft the plan, but share it – with coaches and colleagues, and even with prospective or current clients. Doing so becomes an opportunity to not only to get feedback and constructive criticism about the goals, but in the process of articulating a clear plan for the business, the vetting process can also be a means to talk about the business and who it will serve, creating referral opportunities in the process!

Michael Kitces

Author: Michael Kitces

Michael Kitces is Head of Planning Strategy at Buckingham Strategic Wealth , which provides an evidence-based approach to private wealth management for near- and current retirees, and Buckingham Strategic Partners , a turnkey wealth management services provider supporting thousands of independent financial advisors through the scaling phase of growth.

In addition, he is a co-founder of the XY Planning Network , AdvicePay , fpPathfinder , and New Planner Recruiting , the former Practitioner Editor of the Journal of Financial Planning, the host of the Financial Advisor Success podcast, and the publisher of the popular financial planning industry blog Nerd’s Eye View through his website Kitces.com , dedicated to advancing knowledge in financial planning. In 2010, Michael was recognized with one of the FPA’s “Heart of Financial Planning” awards for his dedication and work in advancing the profession.

Why A Business Plan Matters For Financial Advisors

There’s no end to the number of articles and even entire books that have been written about how to craft a business plan , yet in practice I find that remarkably few financial advisors have ever created any kind of formal (written or unwritten) business plan. Given that the overwhelming majority of financial advisors essentially operate as solo practitioners or small partnerships, this perhaps isn’t entirely surprising – when you can keep track of the entire business in your head in the first place, is there really much value to going through a formal process of crafting a financial advisor business plan?

Having been a part of the creation and growth of numerous businesses , I have to admit that my answer to “does a[n individual] financial advisor really need a business plan?” is a resounding yes . But not because you’re just trying to figure out what the basics of your business will be, which you may well have “figured out” in your head (or as the business grows, perhaps figured out in conversations with your partner). The reason a business plan matters is all about focus , and the ability to keep focus in proceeding towards your core objectives, and accountable to achieving them, even in a dynamic real-world environment full of distractions.

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As the famous military saying goes, “ no battle plan ever survives contact with the enemy ”, because the outcomes of battle contact itself change the context, and it’s almost impossible to predict what exactly will come next. Nonetheless, crafting a battle plan in advance is a standard for military leadership. Because even if the plan will change as it’s being executed, having a clearly articulated objective allows everyone, even (and especially) in the heat of battle, to keep progressing towards a common agreed-upon goal. In other words, the objective stated in the battle plan provides a common point of focus for everyone to move towards, even as the (battle) landscape shifts around them. And the business plan serves the exact same role within a business.

Essential Elements Required In A Financial Advisor Business Plan

PDF Image Of One Page Financial Advisor Business Plan Template In Word or PDF

Because the reality is that in business – as in battle? – the real world will not likely conform perfectly to an extensively crafted business (or battle) plan written in advance, I am not a fan of crafting an extensively detailed business plan, especially for new advisors just getting started, or even a ‘typical’ solo advisory firm. While it’s valuable to think through all the elements in depth – the process of thinking through a business plan is part of what helps to crystallize the key goals to work towards – as with financial planning itself, the process of planning can actually be more valuable than “the plan” that is written out at the end .

Accordingly, for most financial advisors trying to figure out how to write a business plan, I’m an advocate of crafting a form of “one-page business plan” that captures the essential elements of the business, and provides direction about where to focus, especially focus the time of the advisor-owner in particular. In other words, the purpose for a financial advisor business plan is simply to give clear marching orders towards a clear objective, with clear metrics about what is trying to be achieved along the way, so you know where to focus your own time and energy!

Of course, the reality is that what constitutes the most important goals for an advisory firm – as well as the challenges it must surmount – will vary a lot, depending not just on the nature of the firm, but simply on its size, scope, and business stage. Financial advisors just getting started launching a new RIA face very different business and growth issues than a solo advisor who has been operating for several years but now hit a “wall” in the business , and the challenges of a solo advisor are different than those of a larger firm with multiple partners who need to find alignment in their common business goals. Nonetheless, the core essential elements that any business plan is required to cover are remarkably similar.

Requirements For An Effective Financial Advisor Business Plan

While there are many areas that can potentially be covered, the six core elements that must be considered as the template for a financial advisor business plan are:

6 Required Elements Of A (One Page) Business Plan For Financial Advisors 1) Who will you serve? This is the most basic question of all, but more complex than it may seem at first. The easy answer is “anyone who will pay me”, but in practice I find that one of the most common reasons a new advisor fails is that their initial outreach is so unfocused, there’s absolutely no possibility to gain any momentum over time. In the past, when you could cold-call your way to success by just trying to pump your products on every person who answered the phone until you found a buyer, this might have been feasible. But if you want to get paid for your advice itself, you need to be able to demonstrate your expertise. And since you can’t possibly be an expert at everything for everyone, you have to pick someone for whom you will become a bona fide specialist (which also provides crucial differentiation from other advisors the potential client might choose to work with instead ). In other words, you need to choose what type of niche clientele you’re going to target to differentiate yourself. And notably, this problem isn’t unique to new advisors; many established advisors ultimately hit a wall in their business, in part because it’s so time-consuming trying to be everything to everyone, that they reach their personal capacity in serving clients earlier than they ‘should’. Focusing on a particular clientele – to the point that you can anticipate all of their problems and issues in advance – allows the business to be radically more efficient. So who, really , do you want to serve? 2) What will you do for them? Once you’ve chosen who you will serve, the next task is to figure out what you will actually do for them – in other words, what services will you deliver. The reason it’s necessary to first figure out who you will serve, is that the nature of your target niche clientele may well dictate what kind of services you’re going to provide them; in fact, part of the process of identifying and refining your niche in the first place should be to interview a number of people in your niche , and really find out what they want and need that’s important to them (not just the standard ‘comprehensive financial plan’ that too many advisors deliver in the same undifferentiated manner ). For instance, if you’re really serious about targeting retirees, you might not only provide comprehensive financial planning, but investment management services (for their retirement portfolios), a specific retirement income distribution strategy, assistance with long-term care insurance, and guidance on enrolling in Medicare and making decisions about the timing of when to start Social Security benefits . On the other hand, if you hope to work with entrepreneurs, you might need to form relationships with attorneys and accountants who can help facilitate creating new business entities, and your business model should probably be on a retainer basis, as charging for assets under management may be difficult (as entrepreneurs tend to plow their dollars back into their businesses!). If your goal is to work with new doctors, on the other hand, your advice will probably focus more on career guidance, working down a potential mountain of student debt, and cash flow/budgeting strategies. Ultimately, these adjustments will help to formulate the ongoing client service calendar you might craft to articulate what you’ll do with clients (especially if you plan to work with them on an ongoing basis), and the exact business model of how you’ll get paid (Insurance commissions? Investment commissions? AUM fees? Annual retainers? Monthly retainers ? Hourly fees?). 3) How will you reach them? Once you’ve decided who you want to reach, and what you will do for them, it’s time to figure out how you will reach them – in other words, what will be your process for finding prospective clients you might be able to work with? If you’re targeting a particular niche, who are the centers of influence you want to build relationships with? What publications do they read, where you could write? What conferences do they attend, where you might speak? What organizations are they involved with, where you might also volunteer and get involved? If you’re going to utilize an inbound marketing digital strategy as an advisor , what are the topics you can write about that would draw interest and organic search traffic, and what giveaway will you provide in order to get them to sign up for your mailing list so you can continue to drip market to them? In today’s competitive world, it’s not enough to just launch a firm, hang your (virtual) shingle, and wait for people to walk in off the street or call your office. You need to have a plan about how you will get out there to get started! 4) How will you know if it’s working? Once you’ve set a goal for who you want to serve, what you want to do for them, and how you will reach them, it’s time to figure out how to measure whether it’s working. The caveat for most financial advisory businesses, though, is that measuring outcomes is tough because of the small sample size – in a world where you might have to reach out to dozens of strangers just to find a dozen prospects, and then meet with all those prospects just to get a client or two, it’s hard to tell whether a strategy that nets one extra client in a quarter was really a “better strategy” or just random good luck that won’t repeat. As a result, in practice it’s often better to measure activity than results , especially as a newer advisory firm. In other words, if you think you’ll have to meet 10 Centers Of Influence (COIs) to get introductions to 30 prospects to get 3 clients, then measure whether you’re meeting your activity goals of 10 COIs and 30 prospect meetings, and not necessarily whether you got 2, 3, or 4 clients out of the last stint of efforts. Not that you shouldn’t ultimately have results-oriented goals of clients and revenue as well, but activity is often the easier and more salient item to measure, whether it’s phone calls made, articles written, subscribers added to your drip marketing list, prospect meetings, COI introductions, or something else. So when you’re defining the goals of your business plan, be certain you’re setting both goals for the results you want to achieve, and the key performance indicator (KPI) measures you want to evaluate to regarding your activities along the way? 5) Where will you focus your time in the business? When an advisory firm is getting started, the role of the advisor-as-business-owner is to do “everything” – as the saying goes, you’re both the chief cook and the bottle washer . However, the reality is that the quickest way to failure in an advisory firm is to get so caught up on doing “everything” that you fail to focus on the essential activities necessary to really move the business forward (that’s the whole reason for having a plan to define what those activities are, and a measure to determine whether you’re succeeding at them!). Though in truth, the challenge of needing to focus where you spend your time in the business never ends – as a business grows and evolves, so too does the role of the advisor-owner as the leader, which often means that wherever you spent your time and effort to get your business to this point is not where you need to focus it to keep moving forward from here. From gathering clients as an advisor to learning to transition clients to another advisor, from being responsible for the firm’s business development to hiring a marketing manager, from making investment decisions and executing trades to hiring an investment analyst and trader. By making a proactive decision about where you will spend your time, and also deliberately deciding what you will stop doing, it also becomes feasible to determine what other resources you may need to support you, in order to ensure you’re always spending your time focused on whatever is your highest and best use. In addition, the process can also reveal gaps where you may need to invest into and improve yourself, to take on the responsibilities you haven’t in the past but need to excel at to move forward from here. 6) How must you strengthen the foundation? The point of this section is not about what you must do to achieve the goals you’ve set, but what else needs to be done in the business in order to maximize your ability to make those business goals a reality. In other words, if you’re going to focus your time on its highest and best use in the business, what foundation to you need to support you to make that happen? If you’re a startup advisory firm, what business entity do you need to create, what are the tools/technology you’ll need to launch your firm , and what licensing/registrations must you complete? Will you operate with a ‘traditional’ office or from a home office , or run an entirely virtual “location-independent” advisory firm ? What are the expenses you’re budgeting to operate the business? If you’re an advisor who’s hit a growth wall , what are the essential hire(s) you’ll make in the near future where/how else will you reinvest to get over the wall and keep moving forward? At the most basic level, the key point here is that if you’re going to execute on this business plan to move the business forward from here, you need a sound foundation to build upon – so what do you need to do to shore up your foundation, so you can keep building? But remember, the goal here is to do what is necessary to move forward, not everything ; as with so much in the business, waiting until perfection may mean nothing gets done at all.

Creating A Budget And Financial Projections For Your Advisory Business

In addition to crafting a (one-page) financial planner business plan, the second step to your business planning process should be crafting a budget or financial projection for your business for the upcoming year (or possibly out 2-3 years).

Key areas to cover in budget projections for a financial advisory firm are:

Revenue - What are the revenue source(s) of your business, and realistically what revenue can you grow in the coming year(s)? - If you have several types of revenue, what are you goals and targets for each? How many hourly clients? How much in retainers? How much in AUM fees? What commission-based products do you plan to sell, and in what amounts? Expenses - What are the core expenses to operate the business on an ongoing basis? (E.g., ongoing salary or office space overhead, core technology you need to operate the business, etc.) - What are the one-time expenses you may need to contend with this year? (Whether start-up expenses to launch your advisory firm , new hires to add, significant one-time projects to complete, etc.)

An ongoing advisory firm may project out for the next 1-3 years, while a newer advisors firm may even prefer a more granular month-by-month budget projection to have regular targets to assess.

Ultimately, the purpose of the budgeting process here is two-fold. The first reason for doing so is simply to have an understanding of the prospective expenses to operate the business, so you can understand if you do hit your goals, what the potential income and profits of the business will be (and/or whether you need to make any changes, if the business projections aren’t viable!). The second reason is that by setting a budget, for both expenses and revenue, you not only set targets for what you will spend in the business to track on track, but you have revenue goals to be held accountable to in trying to assess whether the business is succeeding as planned.

Vetting Your Business Plan By Soliciting Constructive Criticism And Feedback

The last essential step of crafting an effective financial planner business plan is to vet it – by soliciting feedback and constructive criticism about the gaps and holes. Are there aspects of the financial projections that seem unrealistic? Is the target of who the business will serve narrow and specific enough to be differentiated, such that the person you’re talking to would clearly know who is appropriate to refer to you? Are the services that will be offered truly unique and relevant to that target clientele, and priced in a manner that’s realistically affordable and valuable to them?

In terms of who should help to vet your financial advisor business plan, most seem to get their plan vetted by talking to a business coach or consultant to assess the plan. While that’s certainly a reasonable path, another option is actually to take the business plan to fellow advisors to vet, particularly if you’re part of an advisor study (or “mastermind”) group ; the reason is that not only do fellow advisors have an intimate understanding of the business and potential challenges, but if their target clientele is different than yours, it becomes an opportunity to explain what you do and create the potential for future referrals! In other words, “asking for advice on your business plan” also becomes a great opportunity to “tell you about who I work with in my business that you could refer to me” as well! (In fact, one of the great virtues of a clearly defined niche practice as an advisor is that you can generate referrals from other advisors who have a different niche than yours !)

Similarly, the reality is that another great potential source for feedback about your business plan are Centers of Influence already in your niche in the first place. While you might not share with your potential clients the details of your business financial projections (which is why I advocate that those be separate from the one-page business plan), the essential aspects of the business plan – who you will serve, what you will provide them, how you will charge, and how you will try to reach them – is an area that the target clientele themselves may be best positioned to provide constructive feedback. And in the process, once again you’ll effectively be explaining exactly what your niche business does to target clientele who could either do business with you directly, or refer business to you , even as you’re asking for their advice about how to make the business better (to serve people just like them!). So whether it’s people you’re not yet doing business with but want to, or an existing client advisory board with whom you want to go deeper, vetting your plan with prospective and current clients is an excellent opportunity to talk about and promote your business, even as you’re going through the process of refining it and making it better!

And notably, the other benefit of vetting your business plan with others – whether it’s a coach, colleague, prospects, or clients – is that the process of talking through the business plan and goals with them also implicitly commits to them that you plan to act on the plan and really do what’s there. In turn, what this means is that once you’ve publicly and openly committed to the business plan with them, it’s now fair game for them to ask you how it’s going, and whether you’re achieving the goals you set forth for yourself in the plan – an essential point of accountability to help you ensure that you’re following through on and executing the business plan you’ve created!

So what do you think? Have you ever created a formal business plan for yourself? If you have, what worked for you – a longer plan, or a shorter one? If you haven’t created a business plan for yourself, why not? Do you think the kind of one-page financial advisor business plan template articulated here would help? Have you checked out our financial advisor business plan sample template  for yourself? Do you have a financial advisor business plan example you're willing to share in the comments below?

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Before you get started, creating your firm, registering with regulatory bodies, submitting application forms, developing professional legitimacy, drafting policy requirements, other considerations, the bottom line.

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Steps to Starting Up an Independent Broker-Dealer

finance broker business plan

If you want to become a  broker-dealer , you can either join an existing firm or start your own company. If you choose to work for someone, you may be investing in a management team in which you know very little. Although the workload will likely be more manageable, you'll have less control over the organization and direction of the company.

There are many benefits to starting your own firm, though you should be aware of what's involved. Much like investing in your own startup , a new investment firm requires a lot of work, time, patience, and money. On one hand, you'll have control over the firm; on the other, it's a riskier endeavor that requires much more work.

If you've decided an independent firm is the way to go, here's some guidance on what's involved in achieving and growing a successful broker-dealer firm .

Key Takeaways

  • Opening your own broker-dealer firm can be a rewarding and challenging venture.
  • Ask yourself whether you can afford to sacrifice the capital needed.
  • You'll need to demonstrate experience, line up principals, and file the necessary forms in order to be approved.

Like any other venture, there are some obvious benefits to going into business for yourself as a broker-dealer. First, there's the absence of bureaucracy that comes with working for someone else. Bureaucracies often lead to more formal and rigid systems that leave little room for innovation, putting rules in place that companies must adhere to strictly.

With your own firm, there's also the potential for significant wealth. You'll eventually need to decide what types of fees you wish to charge. If you decide to take a percentage of assets under management, you'll need a scalable business model, experienced management personnel, and solutions to attract and retain clients. While your income may be capped when working for a firm, there's often greater potential running your own.

If you have sufficient capital, you can decide to acquire an existing operation instead of starting a new firm. Though everything may be organized exactly how you'd like, there is the benefit of having a head start on registrations, market presence, staffing, and operations.

Before you start your own broker-dealer firm, there are several questions worth asking to ensure you're on the correct path to creating a successful firm. These questions include but aren't limited to:

  • Do you have sufficient upfront capital to cover start-up costs and fund initial investments?
  • Do you want to acquire an existing firm or create one anew?
  • Are you able to satisfy the registration requirements specific to your geographical location?
  • Who from within your network can help start your firm? These individuals don't necessarily need to be traders or financial advisors.

If you've decided to acquire an existing broker-dealer firm, many of these requirements will already have been satisfied.

If you are starting your own broker-dealer firm and will not operate your company as a sole proprietorship, you must register your firm as an independent company to limit your personal liability. Some of these requirements include (and are discussed more in-depth later in this article):

  • Filing for required business licenses: You must obtain the required licenses from both your local and state regulatory bodies.
  • Opening a company bank account: This account must be separate from any personal accounts, though you may deposit initial investment capital from your personal wealth.
  • Create an operating agreement: An operating agreement outlines the business's financial and functional rules as well as company ownership, member duties, and other administrative delegations. California, Maine, Missouri, and New York legally require new LLCs to keep an operating agreement.
  • Develop contracts with clearing agents: These clearing agents ensure trades settle appropriately and transactions are successful.
  • File necessary regulatory forms:   Financial Industry Regulatory Authority (FINRA) requirements are discussed below.

Prior to operations, your broker-dealer firm must be registered with several regulatory bodies. In addition to the agencies below, there may be governing bodies specific to your location that have their own requirements.

The broader regulatory agencies to register with include but are not limited to:

  • Self-regulatory organizations (SROs)
  • The  Securities and Exchange Commission (SEC)
  • The  Securities Investor Protection Corporation (SIPC)
  • The  Financial Industry Regulatory Authority (FINRA)
  • FINRA's Central Registration Depository (CRD)
  • FINRA's Investment Advisor Registration Depository (IARD)

Once approved by FINRA, you must become a member of a self-regulatory organization (SRO) before your order granting registration goes into effect.

There's a ton of paperwork to file as part of the process of setting up a broker-dealer firm. FINRA outlines a number of requirements. As part of the application process, the forms you must file include but are not limited to the following:

  • Form BD (Broker Dealer): This describes the classification of the business, which states you'll be registered in, and what key external relationships have been created up to this point in the company's formation.
  • Form NMA (New Member Agreement): Often the most strenuous form, this outlines policies, procedures, vendor agreements, LOIs, and specific details about the company.
  • Form BR (Branch Registration): This is a short form outlining the company's offices.
  • Form U4: This form is filed for each employee of the firm. The form outlines their role in the company, their employment history, their professional registrations, and any disciplinary record.

Fingerprinting

No, it's not a TV episode of a crime drama. Every employee for whom you file a U4 must be fingerprinted.

If you've made it this far, chances are you know what you're doing. However, you must demonstrate proficiency in order to land clients and retain them.

When developing your broker-dealer firm, don't underestimate the value of marketing, branding, and an online presence. Consider which social media platforms will provide your firm with the greatest exposure. Be prepared to distribute marketing and promotional materials to prospective clients.

On the more technical side, consider applying for a variety of broker dealer exams. There are several required credentials in order to obtain your broker-dealer license including successful completion of the following:

  • Series 7 exam (a prerequisite for the Series 24 exam)
  • Securities Industry Essentials (SIE) (a prerequisite for the Series 24 exam)
  • Series 24 exam (General Securities Principal)
  • Series 27 exam (Financial and Operations Principal)

Broker-Dealer License

Broker-dealers are required to hold several credentials, and some credentials have prerequisite exams.

In addition, if you wish to sell additional securities or demonstrate further competency to prospective clients, consider pursuing additional exams.

Broker-dealers are required to assemble and maintain a variety of policies. Several policies include but are not limited to:

  • Anti-Money Laundering Policy: This outlines the steps for vetting customers and monitoring client activity to ensure money laundering does not occur within your firm. This policy must be audited by an independent external auditor each year.
  • Business Continuity Plan: This outlines how the company will operate during unforeseen crises or events.
  • Continuing Education Plan: This outlines how the company will make sure all staff are up-to-date with the most recent compliance and regulation requirements.
  • Employee Trading Policy: This outlines what activities employees are allowed to engage in outside of work in addition to what the firm will do to monitor this activity.

Broker-dealers are held to a high standard regarding record retention. Firms are required to maintain key data, documents, and a variety of support for many years. In addition, the data must be stored in a specific format and easily distributable to FINRA upon request. Trading data, as well as e-mail and communication data, must be retained.

Broker-dealer firms are required to maintain a fidelity bond. The fidelity bond acts as an insurance policy in excess of the firm's net capital requirement. Broker-dealer firms are also required to have their finances audited annually by a Public Company Accounting Oversight Board-accredited accounting firm.

Net Capital Requirements

FINRA implements net capital requirements that a broker-dealer must have on hand to remain in good standing. The net capital requirements vary based on the company's specific business lines.

Broker-dealers usually implement compliance software solutions. These solutions automatically track and maintain reporting requirements, issue deadline and compliance reminders, and monitor employee trading accounts.

FINRA requires all broker-dealers to designate a Chief Compliance Officer (CCO) to ensure company-wide compliance and regulation. FINRA also requires firms to have a Financial and Operational Principal (FinOp) (via the Series 27 exam) to compile reporting and accounting statements. These positions may be outsourced.

How Long Does It Take to Set Up a Broker-Dealer Firm?

Once you submit your application to FINRA, FINRA must review and process your application within 180 days. It may take a substantial amount of time to accumulate and organize all information required as part of the application process.

Is It Difficult to Become a Broker-Dealer?

The application process to be an independent broker-dealer is arduous. In addition to long application forms, there are a number of requirements that must be met before your firm begins operating, in addition to a number of requirements that must be met once your firm has clients.

How Do I Become an Independent Broker?

There are many requirements to becoming an independent broker-dealer. A great starting place is forming your business. Pursue the appropriate business licenses for your local and state governing bodies. Then, consider pursuing memberships to the various required regulatory bodies, like FINRA and the SEC.

All of this information is likely overwhelming. FINRA has a reputation for ongoing requests for documentation and constant back-and-forth communication. However, if you get through the approval process and then plan your work and work your plan, the potential rewards for a successful  broker-dealer firm are high.

Maine Legislature. “ Title 31: Partnerships and Associations .”

New York State. “ Forming a Limited Liability Company in New York .”

California Secretary of State. “ Starting a Business – Entity Types .”

Missouri Secretary of State. “ Missouri Small Business Startup Guide .”

Investor.gov. “ The Laws That Govern the Securities Industry .”

Securities Investor Protection Corporation. “ What SIPC Protects .”

Financial Industry Regulatory Authority. “ Central Registration Depository (CRD) .”

Financial Industry Regulatory Authority. “ Standards for Admission .”

Financial Industry Regulatory Authority. “ Qualification Exams .”

Financial Industry Regulatory Authority. “ Frequently Asked Questions (FAQ) Regarding Anti-Money Laundering (AML) .”

Financial Industry Regulatory Authority. “ Business Continuity Planning (BCP) .”

Financial Industry Regulatory Authority. “ Continuing Education (CE) .”

Financial Industry Regulatory Authority. “ Content Outline for the S201 Regulatory Element Program ,” Page 11.

Financial Industry Regulatory Authority. “ Books and Records .”

Financial Industry Regulatory Authority. “ 4360. Fidelity Bonds .”

Public Company Accounting Oversight Board. “ Section 3. Auditing and Related Professional Practice Standards .”

Financial Industry Regulatory Authority. “ FINRA Cybersecurity Advisory - SEC Rules on Cybersecurity Risk Management, Strategy, Governance, and Incident Disclosure by Public Companies (Exchange Act Release No. 97989) .”

Financial Industry Regulatory Authority. “ FINRA Reminds Member Firms of the Scope of FINRA Rule 3110 as it Pertains to the Potential Liability of Chief Compliance Officers for Failure to Discharge Designated Supervisory Responsibilities .”

Financial Industry Regulatory Authority. “ FINRA Qualification and Registration Requirements Frequently Asked Questions .”

Financial Industry Regulatory Authority. “ How to Become a Member - Membership Application Time Frames .”

Investor.gov. “ The Laws That Govern the Securities Industry ."

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Mortgage Brokerage Business Plan Template & Guidebook

If you’re looking for a comprehensive, easy-to-follow guide to launching and growing a successful mortgage brokerage business, you've come to the right place. The #1 Mortgage Brokerage Business Plan Template & Guidebook provides the information and tools you need to create a comprehensive, professional business plan for your mortgage brokerage. With this guide, you'll have the knowledge and confidence to attract investors, secure funding and succeed in the competitive world of mortgage brokerage.

Nick

Get worry-free services and support to launch your business starting at $0 plus state fees.

  • How to Start a Profitable Mortgage Brokerage Business [11 Steps]
  • 25 Catchy Mortgage Brokerage Business Names:

How to Write a Mortgage Brokerage Business Plan in 7 Steps:

1. describe the purpose of your mortgage brokerage business..

The first step to writing your business plan is to describe the purpose of your mortgage brokerage business. This includes describing why you are starting this type of business, and what problems it will solve for customers. This is a quick way to get your mind thinking about the customers’ problems. It also helps you identify what makes your business different from others in its industry.

It also helps to include a vision statement so that readers can understand what type of company you want to build.

Here is an example of a purpose mission statement for a mortgage brokerage business:

Our mission at [Mortgage Brokerage] is to offer the highest level of financial advice and guidance to our clients, helping them to achieve their goals and promote long-term financial stability. We strive to create an environment of trust, respect, and integrity, and to provide every client with an individualized mortgage solution tailored to their specific needs. We are committed to providing exceptional customer service and delivering a positive customer experience throughout the loan process.

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2. Products & Services Offered by Your Mortgage Brokerage Business.

The next step is to outline your products and services for your mortgage brokerage business. 

When you think about the products and services that you offer, it's helpful to ask yourself the following questions:

  • What is my business?
  • What are the products and/or services that I offer?
  • Why am I offering these particular products and/or services?
  • How do I differentiate myself from competitors with similar offerings?
  • How will I market my products and services?

You may want to do a comparison of your business plan against those of other competitors in the area, or even with online reviews. This way, you can find out what people like about them and what they don’t like, so that you can either improve upon their offerings or avoid doing so altogether.

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3. Build a Creative Marketing Stratgey.

If you don't have a marketing plan for your mortgage brokerage business, it's time to write one. Your marketing plan should be part of your business plan and be a roadmap to your goals. 

A good marketing plan for your mortgage brokerage business includes the following elements:

Target market

  • Who is your target market?
  • What do these customers have in common?
  • How many of them are there?
  • How can you best reach them with your message or product?

Customer base 

  • Who are your current customers? 
  • Where did they come from (i.e., referrals)?
  • How can their experience with your mortgage brokerage business help make them repeat customers, consumers, visitors, subscribers, or advocates for other people in their network or industry who might also benefit from using this service, product, or brand?

Product or service description

  • How does it work, what features does it have, and what are its benefits?
  • Can anyone use this product or service regardless of age or gender?
  • Can anyone visually see themselves using this product or service?
  • How will they feel when they do so? If so, how long will the feeling last after purchasing (or trying) the product/service for the first time?

Competitive analysis

  • Which companies are competing with yours today (and why)? 
  • Which ones may enter into competition with yours tomorrow if they find out about it now through word-of-mouth advertising; social media networks; friends' recommendations; etc.)
  • What specific advantages does each competitor offer over yours currently?

Marketing channels

  • Which marketing channel do you intend to leverage to attract new customers?
  • What is your estimated marketing budget needed?
  • What is the projected cost to acquire a new customer?
  • How many of your customers do you instead will return?

Form an LLC in your state!

finance broker business plan

4. Write Your Operational Plan.

Next, you'll need to build your operational plan. This section describes the type of business you'll be running, and includes the steps involved in your operations. 

In it, you should list:

  • The equipment and facilities needed
  • Who will be involved in the business (employees, contractors)
  • Financial requirements for each step
  • Milestones & KPIs
  • Location of your business
  • Zoning & permits required for the business

What equipment, supplies, or permits are needed to run a mortgage brokerage business?

  • Licensed mortgage broker
  • Computers and software
  • Access to a loan origination system (LOS)
  • Office space
  • Business license and permits
  • Furniture and office supplies
  • Insurance for the business
  • Dedicated phone line
  • Advertising and marketing budget

5. Management & Organization of Your Mortgage Brokerage Business.

The second part of your mortgage brokerage business plan is to develop a management and organization section.

This section will cover all of the following:

  • How many employees you need in order to run your mortgage brokerage business. This should include the roles they will play (for example, one person may be responsible for managing administrative duties while another might be in charge of customer service).
  • The structure of your management team. The higher-ups like yourself should be able to delegate tasks through lower-level managers who are directly responsible for their given department (inventory and sales, etc.).
  • How you’re going to make sure that everyone on board is doing their job well. You’ll want check-ins with employees regularly so they have time to ask questions or voice concerns if needed; this also gives you time to offer support where necessary while staying informed on how things are going within individual departments too!

6. Mortgage Brokerage Business Startup Expenses & Captial Needed.

This section should be broken down by month and year. If you are still in the planning stage of your business, it may be helpful to estimate how much money will be needed each month until you reach profitability.

Typically, expenses for your business can be broken into a few basic categories:

Startup Costs

Startup costs are typically the first expenses you will incur when beginning an enterprise. These include legal fees, accounting expenses, and other costs associated with getting your business off the ground. The amount of money needed to start a mortgage brokerage business varies based on many different variables, but below are a few different types of startup costs for a mortgage brokerage business.

Running & Operating Costs

Running costs refer to ongoing expenses related directly with operating your business over time like electricity bills or salaries paid out each month. These types of expenses will vary greatly depending on multiple variables such as location, team size, utility costs, etc.

Marketing & Sales Expenses

You should include any costs associated with marketing and sales, such as advertising and promotions, website design or maintenance. Also, consider any additional expenses that may be incurred if you decide to launch a new product or service line. For example, if your mortgage brokerage business has an existing website that needs an upgrade in order to sell more products or services, then this should be listed here.

7. Financial Plan & Projections

A financial plan is an important part of any business plan, as it outlines how the business will generate revenue and profit, and how it will use that profit to grow and sustain itself. To devise a financial plan for your mortgage brokerage business, you will need to consider a number of factors, including your start-up costs, operating costs, projected revenue, and expenses. 

Here are some steps you can follow to devise a financial plan for your mortgage brokerage business plan:

  • Determine your start-up costs: This will include the cost of purchasing or leasing the space where you will operate your business, as well as the cost of buying or leasing any equipment or supplies that you need to start the business.
  • Estimate your operating costs: Operating costs will include utilities, such as electricity, gas, and water, as well as labor costs for employees, if any, and the cost of purchasing any materials or supplies that you will need to run your business.
  • Project your revenue: To project your revenue, you will need to consider the number of customers you expect to have and the average amount they will spend on each visit. You can use this information to estimate how much money you will make from selling your products or services.
  • Estimate your expenses: In addition to your operating costs, you will need to consider other expenses, such as insurance, marketing, and maintenance. You will also need to set aside money for taxes and other fees.
  • Create a budget: Once you have estimated your start-up costs, operating costs, revenue, and expenses, you can use this information to create a budget for your business. This will help you to see how much money you will need to start the business, and how much profit you can expect to make.
  • Develop a plan for using your profit: Finally, you will need to decide how you will use your profit to grow and sustain your business. This might include investing in new equipment, expanding the business, or saving for a rainy day.

finance broker business plan

Frequently Asked Questions About Mortgage Brokerage Business Plans:

Why do you need a business plan for a mortgage brokerage business.

A business plan is a fundamental tool for the success of a mortgage brokerage business. It outlines business goals, strategies and tactics, financial projections, and provides potential investors with an analysis of the expected returns over time. It also serves as a roadmap for the business owner to follow and helps identify potential risks and opportunities. Additionally, banks and other lenders often require aspiring entrepreneurs to have a comprehensive business plan in order to qualify for financing.

Who should you ask for help with your mortgage brokerage business plan?

You should ask for help with your mortgage brokerage business plan from a local small business advisor or accountant. You could also contact a local Small Business Development Center (SBDC) for guidance on developing a business plan.

Can you write a mortgage brokerage business plan yourself?

Yes, it is possible to write a mortgage brokerage business plan yourself. Depending on the scope of the business plan, it may be necessary to obtain specialized financial information and advice from an accountant, lawyer or other qualified professional. Additionally, there are many resources available online that can provide guidance on how to write a successful business plan.

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I'm Nick, co-founder of newfoundr.com, dedicated to helping aspiring entrepreneurs succeed. As a small business owner with over five years of experience, I have garnered valuable knowledge and insights across a diverse range of industries. My passion for entrepreneurship drives me to share my expertise with aspiring entrepreneurs, empowering them to turn their business dreams into reality.

Through meticulous research and firsthand experience, I uncover the essential steps, software, tools, and costs associated with launching and maintaining a successful business. By demystifying the complexities of entrepreneurship, I provide the guidance and support needed for others to embark on their journey with confidence.

From assessing market viability and formulating business plans to selecting the right technology and navigating the financial landscape, I am dedicated to helping fellow entrepreneurs overcome challenges and unlock their full potential. As a steadfast advocate for small business success, my mission is to pave the way for a new generation of innovative and driven entrepreneurs who are ready to make their mark on the world.

Commercial Loan Broker Institute

How to start a loan broker business

Your guide to becoming a successful commercial loan broker, whether you’re tired of working at a dead-end job, your company is facing lay-offs, or you just want to be your own boss, the opportunity to become a loan broker might be a perfect fit..

This article gives you an in-depth look at how to become a loan broker , how to start a loan broker business, how to make money in the world of commercial capital, and how to be a commercial loan broker that is recognized and trusted in the industry:

WHAT IS A COMMERCIAL LOAN BROKER?

What Is a Commercial Loan Broker?

Benefits Of Becoming A Loan Broker

What Are the Benefits of Becoming a Loan Broker?

Compared to many other professions, becoming a loan broker offers significant earnings potential and respect. Successful brokers earn over six figures a year, while being their own boss and having the ability to create a balanced professional and personal life.

Schedule a free call and get your questions answered by an expert today

Licensing Requirements to Start A Loan Broker Business

Licensing Requirements to Start a Loan Broker Business

Although most states don’t require a broker to be licensed to start a loan broker business, there are some that do. For those that do, the requirement is often limited only to real estate loans. The best way to determine whether or not you need a license in your state is to investigate and do your research.  Each state has a licensing board that can provide this information. You can also check with member organizations in the banking industry or with your local branch of the Small Business Administration . 

Setting Up Your Brokerage

Commercial Loan Broker Training

An essential first step in starting your loan broker business is to get the proper training. The knowledge and skills you learn during this time will be the foundation for the way you conduct your business and how it operates. You want to be sure that you do your research when selecting a commercial loan broker training program. The time and money you spend on your training will either be the best or worst investment you can make for your future professional career so be sure you do your research when selecting the best loan broker program.

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finance broker business plan

Setting Up Your Brokerage

Setting up your company and how it will run and operate is an important part of starting your loan broker business. We will examine the various steps involved one by one, from creating your legal entity, to getting you tax ID, to financial accounts, and more.

If you have any questions as you are walking through these steps, don’t hesitate to reach out to our team of coaches.  We are always here to help you understand the critical steps and the best sequence.

finance broker business plan

Registering Your Commercial Loan Brokerage as an LLC

A limited liability company (LLC) is a type of legal structure that provides the limited liability features of a corporation and the tax and operational flexibility of a partnership. The “owners’ of an LLC are referred to as “members”. Depending on the state, the members can consist of one individual, two or more individuals, corporations, or other LLCs.

finance broker business plan

How to Form an LLC for Legal Protection

While each state has slightly different variations of requirements for forming an LLC, they all adhere to these same general principles:

1) Choose a business name. In naming your brokerage, there are 3 rules your LLC needs to follow: – It must be different from any existing LLCs registered in your state. – It must indicate it’s an LLC with its name (such as “LLC” or Limited Company). – It must not include words restricted by your state (such as “bank” and “insurance”).

Your business name is automatically registered with your state when you register your LLC, so you do not have to go through a separate process.

finance broker business plan

            2. File the Articles of Organization: The articles of organization is a simple document that legitimizes your LLC and includes information like your business name, address, and the names of its members. For most states, you file with the Secretary of State. However, other states may require that you file with different agencies of your state, such as State Corporation Commission, Department of Commerce and Consumer Affairs, Department of Consumer and Regulatory Affairs, or the Division of Corporations & Commercial Code.

            3. Create an Operating Agreement: Most states do not require operating agreements. However, an operating agreement is highly recommended for multi-member LLCs because it structures your LLC’s finances and organization, and provides rules and regulations for smooth operation. The operating agreement usually includes percentage of interests, allocation of profits and losses, member’s rights and responsibilities and other provisions.

             4. Obtain Licenses and Permits: Once your business is registered, you may need to obtain business licenses and permits. Regulations vary by industry, state and locality. Refer to the Business License and Permit guide to find a listing of federal, state and local permits, licenses and registrations you’ll need to run your business.

             5. Announce Your Business: Some states, including Arizona and New York, require the extra step of publishing a statement in your local newspaper about your LLC formation. Check with your state’s business filing office for requirements in your area.

Forming an LLC for your loan broker business that complies with your individual state’s requirements can be confusing. Thoroughly doing your research and visiting sites like NOLO’s 50 State Guide to Forming an LLC can be useful.

finance broker business plan

How to Become A Loan Broker with the IRS (EIN or TIN)

To start a loan broker business on the right foot with the Internal Revenue Service, you will want to register for an Employer Identification Number (EIN). Your EIN is also known as the Federal Employer Identification Number (FEIN) or the Federal Tax Identification Number, is a unique nine-digit number assigned by the IRS to business entities operating in the United States for the purposes of identification. When the number is used for identification rather than employment tax reporting, it is usually referred to as a Taxpayer Identification Number (TIN), and when used for the purposes of reporting employment taxes, it is usually referred to as an EIN.

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Trademark Application for commercial loan brokers

Be a Loan Broker Whose Name Is Protected

U.S. trademark protection is granted to the first entity (LLC) to use a particular and unique “mark” or name in the city, town, or state where it operates, regardless of whether the mark is registered. But if your chosen mark is already registered by another company, even if you used it first, your registration will be rejected and you’ll probably need a lawyer to help you proceed. The best way to avoid this headache is to make sure before completing the online registration form that you check the Trademark Electronic Search System (“TESS”) database to make sure another company hasn’t already registered an identical or similar trademark for their commercial loan broker business.

Online trademark registration costs between $275 and $325 and requires information such as the kind of services your mark will be used for, the date of the mark’s first use, and whether there’s a design element to the mark you’re looking to trademark.

Once you’ve sent in your application, you should receive a response within six months of filing, according to the U.S. Patent and Trademark Office . There are some circumstances where registering through an intellectual-property attorney, or at least seeking legal advice beforehand, makes sense. If your mark is similar to another registered mark, or similar enough to confuse people, there’s a decent chance your registration will be disputed.

BUSINESS BANK ACCOUNT FOR YOUR LOAN BROKERAGE

Opening a Business Bank Account for Your Loan Brokerage

Opening a business bank account is a critical task for any new business owner. Even if you are the only person working and managing your brokerage, having a business account is the best way for you to keep track of your finances. Having a separate account for your broker business and personal finances helps make day-to-day transactions easy to follow and document, which is critical for satisfying the IRS. Business banking is different from consumer banking so the bank where you have your personal checking account may not necessarily be the right one for your business. When deciding where to open your business account, consider the different financial institutions in your area. Talk with each of them to find out their specialty and see if it is a good fit for you and your business. Some banks are small business specialists, whereas others may focus on property or equipment loans. It’s a good idea to see if they have knowledge of programs that can make your business better. However, be aware that some bankers will encourage you to choose their services and products even if you don’t need them. Always do your research.

Many banks offer business checking accounts for free, with a minimum balance requirement and a limited number of transactions. As your business and clientele base grows, you may need to change the type of checking account your business uses. While enhanced accounts might also charge a fee, the benefits of being able to handle an increased number of transactions efficiently and having access to more bank services offsets the cost.

Business Credit Cards for loan brokers

The Right Credit Card to Start a Loan Broker Business

A business credit card enables the online transactions and payments your new loan broker business will incur. With business credit cards, there are no corporate financial reviews every two years and your line of credit can never be turned into a term loan. It’s always revolving and can be subject to credit limit increases as well.

The way the minimum payment is calculated with a business credit card is based on the principle (1.5 – 3% monthly balance) plus interest (0% for 6-12 months) depending on the card issuer. As your business continues to grow and expand, having access to credit is a must. A business credit card with a high limit, a low annual percentage rate, beneficial rewards and a way to build business credit while protecting personal credit, is a card definitely worth having.

Loan Broker Industry Orientation

Commercial Loan Broker Branding

Defining Your Brand

Figuring out how to become a commercial loan broker is a journey of business self-discovery. Defining your brand can be difficult, time-consuming and uncomfortable. It requires, at the very least, that you answer the questions below:

  • What is your brokerage’s mission?
  • What are the benefits and features of your loan services and products?
  • What do your clients and prospects already think of your company?
  • What qualities do you want your clients, associates and prospects to associate with your company?

Logo Design

Market Your commercial loan broker business

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Build Relationships and Your Clientele

finance broker business plan

How to Be A Loan Broker Who Knows Everyone

When looking at how to become a commercial loan broker, realize that you’ll have extra networking work to do when compared to other businesses. This is because you’ll need to create a network of financial institutions and a network of businesses that need loans. Start on the supply side of things so that banks and credit unions will know that you’re looking to help them make some money. Then begin on the demand side to put people in touch with the funding that they may need.

To make sure that you’re not wasting time, it will be important to create a system of pre-qualification that will help you know who is ready for a loan and who is just hopeful that they’ll get a loan. Evaluate receivables, assets, and whatever collateral may be available in addition to the current state of their credit.

GET YOUR PRICING STRUCTURE IN PLACE

Get Your Pricing Structure in Place

Without having proper fee agreements in place, starting a commercial loan broker business means nothing. There are so many brokers that don’t have the proper worded fee agreements in place when operating their business. Agreements are meant to protect the broker’s business and to insure the commissions that are to be paid. Without having this agreement, it exposes your commercial loan business to penalties. You don’t want to be a broker who tries to get an offer to a lender before any fee agreement in signed by their client. This of course could cause a problem once the client is briefed on who the lender is. That is why it is always best to get any and all agreements out of the way before a broker spends too much time on any given deal.

finance broker business plan

Office Space To Start A Loan Broker Business

Choosing the right office space for your loan broker business is an essential component to running a successful business. There are a few options when it comes to an office. Working from home is a popular choice among commercial loan brokers. It saves you time because you don’t have to commute anywhere, and it saves you money because you don’t have to pay any rent.

However there are a few set-backs. Clients and lenders may be less than pleased to meet you in your home. Having a home office may come off as not so professional. But, because we live in a digital age, you may be able to get away with having video conferences and meetings rather than in-person ones.

finance broker business plan

Don’t Let This Amazing Business Opportunity Pass You By!

If you’ve ever dreamed about owning your own business, being your own boss, working on your own time and making a great living doing so, then don’t pass up this loan broker business opportunity that’s waiting for you. Becoming a commercial loan broker requires little more than the will and passion to succeed and the right commercial broker training to turn your dreams into a reality.

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Financial Services Business Plans

Written by Dave Lavinsky

financial trading and services

Explore our specialized web page offering a comprehensive range of business plan examples tailored to the financial services industry. These meticulously crafted plans are ideal for financial advisors, fintech startups, banks, and investment firms, providing professional insights into critical aspects such as market analysis, industry analysis, operations,  and client acquisition . Each plan presents a structured approach for navigating the complexities of the financial sector, offering guidance for achieving operational excellence and sustainable growth.

This resource is an essential tool for financial professionals seeking to establish or expand their presence in a highly competitive and rapidly evolving industry.

Financial Services Business Plan Templates

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Financial Advisor Business Plan Template

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How to write a business plan for an insurance broker?

insurance broker business plan

Creating a business plan for an insurance broker is an essential process for any entrepreneur. It serves as a roadmap that outlines the necessary steps to be taken to start or grow the business, the resources required, and the anticipated financial outcomes. It should be crafted with method and confidence.

This guide is designed to provide you with the tools and knowledge necessary for creating an insurance broker business plan, covering why it is so important both when starting up and running an established business, what should be included in your plan, how it should be structured, what tools should be used to save time and avoid errors, and other helpful tips.

We have a lot to cover, so let's get to it!

In this guide:

Why write a business plan for an insurance broker?

  • What information is needed to create a business plan for an insurance broker?
  • What goes in the financial forecast for an insurance broker?
  • What goes in the written part of an insurance broker business plan?
  • What tool can I use to write my insurance broker business plan?

Being clear on the scope and goals of the document will make it easier to understand its structure and content. So before diving into the actual content of the plan, let's have a quick look at the main reasons why you would want to write an insurance broker business plan in the first place.

To have a clear roadmap to grow the business

Running a small business is tough! Economic cycles bring growth and recessions, while the business landscape is ever-changing with new technologies, regulations, competitors, and consumer behaviours emerging constantly.

In such a dynamic context, operating a business without a clear roadmap is akin to driving blindfolded: it's risky, to say the least. That's why crafting a business plan for your insurance broker is vital to establish a successful and sustainable venture.

To create an effective business plan, you'll need to assess your current position (if you're already in business) and define where you want the business to be in the next three to five years.

Once you have a clear destination for your insurance broker, you'll have to:

  • Identify the necessary resources (human, equipment, and capital) needed to reach your goals,
  • Determine the pace at which the business needs to progress to meet its objectives as scheduled,
  • Recognize and address the potential risks you may encounter along the way.

Engaging in this process regularly proves advantageous for both startups and established companies. It empowers you to make informed decisions about resource allocation, ensuring the long-term success of your business.

To get visibility on future cash flows

If your small insurance broker runs out of cash: it's game over. That's why we often say "cash is king", and it's crucial to have a clear view of your insurance broker's future cash flows.

So, how can you achieve this? It's simple - you need to have an up-to-date financial forecast.

The good news is that your insurance broker business plan already includes a financial forecast (which we'll discuss further in this guide). Your task is to ensure it stays current.

To accomplish this, it's essential to regularly compare your actual financial performance with what was planned in your financial forecast. Based on your business's current trajectory, you can make adjustments to the forecast.

By diligently monitoring your insurance broker's financial health, you'll be able to spot potential financial issues, like unexpected cash shortfalls, early on and take corrective actions. Moreover, this practice will enable you to recognize and capitalize on growth opportunities, such as excess cash flow enabling you to expand to new locations.

To secure financing

Whether you are a startup or an existing business, writing a detailed insurance broker business plan is essential when seeking financing from banks or investors.

This makes sense given what we've just seen: financiers want to ensure you have a clear roadmap and visibility on your future cash flows.

Banks will use the information included in the plan to assess your borrowing capacity (how much debt your business can support) and your ability to repay the loan before deciding whether they will extend credit to your business and on what terms.

Similarly, investors will review your plan carefully to assess if their investment can generate an attractive return on investment.

To do so, they will be looking for evidence that your insurance broker has the potential for healthy growth, profitability, and cash flow generation over time.

Now that you understand why it is important to create a business plan for an insurance broker, let's take a look at what information is needed to create one.

Information needed to create a business plan for an insurance broker

Drafting an insurance broker business plan requires research so that you can project sales, investments and cost accurately in your financial forecast, and convince the reader that there is a viable commercial opportunity to be seized.

Below, we'll focus on three critical pieces of information you should gather before starting to write your plan.

Carrying out market research for an insurance broker

Before you begin writing your business plan for an insurance broker, conducting market research is a critical step in ensuring precise and realistic financial projections.

Market research grants you valuable insights into your target customer base, competitors, pricing strategies, and other crucial factors that can impact the success of your business.

In the course of this research, you may stumble upon trends that could impact your insurance broker.

Your market research might reveal that customers may be more likely to select insurance plans with additional coverage options, such as pet insurance or identity theft coverage. It could also indicate that there may be a growing demand for digital insurance services, like online payment systems or automated customer support.

Such market trends play a pivotal role in revenue forecasting, as they provide essential data regarding potential customers' spending habits and preferences.

By integrating these findings into your financial projections, you can provide investors with more accurate information, enabling them to make well-informed decisions about investing in your insurance broker.

Developing the sales and marketing plan for an insurance broker

As you embark on creating your insurance broker business plan, it is crucial to budget sales and marketing expenses beforehand.

A well-defined sales and marketing plan should include precise projections of the actions required to acquire and retain customers. It will also outline the necessary workforce to execute these initiatives and the budget required for promotions, advertising, and other marketing efforts.

This approach ensures that the appropriate amount of resources is allocated to these activities, aligning with the sales and growth objectives outlined in your business plan.

The staffing and equipment needs of an insurance broker

As you embark on starting or expanding your insurance broker, having a clear plan for recruitment and capital expenditures (investment in equipment and real estate) is essential for ensuring your business's success.

Both the recruitment and investment plans must align with the timing and level of growth projected in your forecast, and they require appropriate funding.

The staffing costs for an insurance broker might include salaries for a team of insurance agents, administrative staff, and customer service personnel.

Additionally, your insurance broker might also need to pay for additional staffing costs such as training, benefits, and payroll taxes. The equipment costs for an insurance broker might include computers, software, printers, scanners, and other office supplies.

Your broker may also need to purchase specialized equipment such as laptops, tablets, and mobile phones in order to provide the best customer service. Finally, your broker may need to pay for additional costs such as internet access, phone lines, and other office expenses.

To create a realistic financial forecast, you also need to consider other operating expenses associated with the day-to-day running of your business, such as insurance and bookkeeping.

With all the necessary information at hand, you are ready to begin crafting your business plan and developing your financial forecast.

What goes into your insurance broker's financial forecast?

The financial forecast of your insurance broker will enable you to assess the profitability potential of your business in the coming years and how much capital is required to fund the actions planned in the business plan.

The four key outputs of a financial forecast for a insurance broker are:

  • The profit and loss (P&L) statement ,
  • The projected balance sheet ,
  • The cash flow forecast ,
  • And the sources and uses table .

Let's take a closer look at each of these.

The projected P&L statement

Your insurance broker forecasted P&L statement enables the reader of your business plan to get an idea of how much revenue and profits your business is expected to make in the near future.

forecasted profit and loss statement in a insurance broker business plan

Ideally, your reader will want to see:

  • Growth above the inflation level
  • Expanding profit margins
  • Positive net profit throughout the plan

Expectations for an established insurance broker will of course be different than for a startup. Existing businesses which have reached their cruising altitude might have slower growth and higher margins than ventures just being started.

The forecasted balance sheet of your insurance broker

The projected balance sheet of your insurance broker will enable the reader of your business plan to assess the overall financial health of your business.

It shows three elements: assets, liabilities and equity:

  • Assets: are productive resources owned by the business, such as equipment, cash, and accounts receivable (money owed by clients).
  • Liabilities: are debts owed to creditors, lenders, and other entities, such as accounts payable (money owed to suppliers).
  • Equity: includes the sums invested by the shareholders or business owners and the profits and losses accumulated by the business to date (which are called retained earnings). It is a proxy for the value of the owner's stake in the business.

projected balance sheet in a insurance broker business plan example

Analysing your insurance broker projected balance sheet provides an understanding of your insurance broker's working capital structure, investment and financing policies.

In particular, the readers of your plan can compare the level of financial debt on the balance sheet to the equity value to measure the level of financial risk (equity doesn't need to be reimbursed, while financial debt must be repaid, making it riskier).

They can also use your balance sheet to assess your insurance broker's liquidity and solvency:

  • A liquidity analysis: focuses on whether or not your business has sufficient cash and short-term assets to cover its liabilities due in the next 12 months.
  • A solvency analysis: takes and longer view to assess whether or not your business has the capacity to repay its debts over the medium-term.

The cash flow forecast

As we've seen earlier in this guide, monitoring future cash flows is the key to success and the only way of ensuring that your insurance broker has enough cash to operate.

As you can expect showing future cash flows is the main role of the cash flow forecast in your insurance broker business plan.

example of projected cash flow forecast in a insurance broker business plan

It is best practice to organise the cash flow statement by nature in order to show the cash impact of the following areas:

  • Cash flow generated from operations: the operating cash flow shows how much cash is generated or consumed by the business's commercial activities
  • Cash flow from investing activities: the investing cash flow shows how much cash is being invested in capital expenditure (equipment, real estate, etc.) either to maintain the business's equipment or to expand its capabilities
  • Cash flow from financing activities: the financing cash flow shows how much cash is raised or distributed to financiers

Looking at the cash flow forecast helps you to make sure that your business has enough cash to keep running, and can help you anticipate potential cash shortfalls.

Your insurance broker business plan will normally include both yearly and monthly cash flow forecasts so that the readers can view the impact of seasonality on your business cash position and generation.

The initial financing plan

The initial financing plan - also called a sources and uses table - is an important tool when starting an insurance broker.

It shows where the money needed to set up the business will come from (sources) and how it will be allocated (uses).

initial financing plan in a insurance broker business plan

Having this table helps understand what costs are involved in setting up the insurance broker, how the risks are distributed between the shareholders and the lenders, and what will be the starting cash position (which needs to be sufficient to sustain operations until the business breaks even).

Now that the financial forecast of an insurance broker business plan is understood, let's focus on what goes into the written part of the plan.

The written part of an insurance broker business plan

The written part of an insurance broker business plan plays a key role: it lays out the plan of action you intend to execute to seize the commercial opportunity you've identified on the market and provides the context needed for the reader to decide if they believe your plan to be achievable and your financial forecast to be realistic.

The written part of an insurance broker business plan is composed of 7 main sections:

  • The executive summary
  • The presentation of the company
  • The products and services
  • The market analysis
  • The strategy
  • The operations
  • The financial plan

Let's go through the content of each section in more detail!

1. The executive summary

The executive summary, the first section of your insurance broker's business plan, serves as an inviting snapshot of your entire plan, leaving readers eager to know more about your business.

To compose an effective executive summary, start with a concise introduction of your business, covering its name, concept, location, history, and unique aspects. Share insights about the services or products you intend to offer and your target customer base.

Subsequently, provide an overview of your insurance broker's addressable market, highlighting current trends and potential growth opportunities.

Then, present a summary of critical financial figures, such as projected revenues, profits, and cash flows.

You should then include a summary of your key financial figures such as projected revenues, profits, and cash flows.

Lastly, address any funding needs in the "ask" section of your executive summary.

2. The presentation of the company

In your insurance broker business plan, the second section should focus on the structure and ownership, location, and management team of your company.

In the structure and ownership part, you'll provide an overview of the business's legal structure, details about the owners, and their respective investments and ownership shares. This clarity is crucial, especially if you're seeking financing, as it helps the reader understand which legal entity will receive the funds and who controls the business.

Moving on to the location part, you'll offer an overview of the company's premises and their surroundings. Explain why this particular location is of interest, highlighting factors like catchment area, accessibility, and nearby amenities.

When describing the location of your insurance broker, you could emphasize the potential for growth in the area. You may discuss the fact that there are plenty of resources and opportunities in the surrounding area that could help to increase the profitability of the business. Additionally, you could point out that the area could potentially provide access to a wider customer base, allowing for greater success in the future.

Finally, you should introduce your management team. Describe each member's role, background, and experience.

Don't forget to emphasize any past successes achieved by the management team and how long they've been working together. Demonstrating their track record and teamwork will help potential lenders or investors gain confidence in their leadership and ability to execute the business plan.

3. The products and services section

The products and services section of your business plan should include a detailed description of what your company offers, who are the target customers, and what distribution channels are part of your go-to-market. 

For example, your insurance broker might offer auto insurance for customers needing coverage for personal vehicles, home insurance for customers needing coverage for their homes, and business insurance for customers needing coverage for their businesses.

These products and services can provide customers with financial protection against unexpected events such as theft, property damage, and liability claims.

4. The market analysis

When outlining your market analysis in the insurance broker business plan, it's essential to include comprehensive details about customers' demographics and segmentation, target market, competition, barriers to entry, and relevant regulations.

The primary aim of this section is to give the reader an understanding of the market size and appeal while demonstrating your expertise in the industry.

To begin, delve into the demographics and segmentation subsection, providing an overview of the addressable market for your insurance broker, key marketplace trends, and introducing various customer segments and their preferences in terms of purchasing habits and budgets.

Next, shift your focus to the target market subsection, where you can zoom in on the specific customer segments your insurance broker targets. Explain how your products and services are tailored to meet the unique needs of these customers.

For example, your target market might include young married couples. This segment is likely to be looking for a comprehensive insurance plan that offers good value for money. They are likely to be tech savvy and looking to do research online and compare prices.

In the competition subsection, introduce your main competitors and explain what sets your insurance broker apart from them.

Finally, round off your market analysis by providing an overview of the main regulations that apply to your insurance broker.

5. The strategy section

When crafting the strategy section of your business plan for your insurance broker, it's important to cover several key aspects, including your competitive edge, pricing strategy, sales & marketing plan, milestones, and risks and mitigants.

In the competitive edge subsection, clearly explain what sets your company apart from competitors. This is particularly critical if you're a startup, as you'll be trying to establish your presence in the marketplace among entrenched players.

The pricing strategy subsection should demonstrate how you aim to maintain profitability while offering competitive prices to your customers.

For the sales & marketing plan, outline how you plan to reach and acquire new customers, as well as retain existing ones through loyalty programs or special offers.

In the milestones subsection, detail what your company has achieved thus far and outline your primary objectives for the coming years by including specific dates for expected progress. This ensures everyone involved has clear expectations.

Lastly, in the risks and mitigants subsection, list the main risks that could potentially impact the execution of your plan. Explain the measures you've taken to minimize these risks. This is vital for investors or lenders to feel confident in supporting your venture - try to proactively address any objection they might have.

Your insurance broker may face the risk of a client making a fraudulent claim. This could lead to a costly investigation and the broker may face legal and financial repercussions.

Additionally, the broker may face the risk of a cyber attack that could lead to the exposure of sensitive information. This could result in a loss of trust from customers and a damaged reputation.

6. The operations section

The operations of your insurance broker must be presented in detail in your business plan.

The first thing you should cover in this section is your staffing team, the main roles, and the overall recruitment plan to support the growth expected in your business plan. You should also outline the qualifications and experience necessary to fulfil each role, and how you intend to recruit (using job boards, referrals, or headhunters).

You should then state the operating hours of your insurance broker - so that the reader can check the adequacy of your staffing levels - and any plans for varying opening times during peak season. Additionally, the plan should include details on how you will handle customer queries outside of normal operating hours.

The next part of this section should focus on the key assets and IP required to operate your business. If you depend on any licenses or trademarks, physical structures (equipment or property) or lease agreements, these should all go in there.

You may have key assets such as customer databases and client records that could contain sensitive information. Additionally, your insurance broker might have intellectual property such as proprietary knowledge or business processes that could be valuable to the company.

Finally, you should include a list of suppliers that you plan to work with and a breakdown of their services and main commercial terms (price, payment terms, contract duration, etc.). Investors are always keen to know if there is a particular reason why you have chosen to work with a specific supplier (higher-quality products or past relationships for example).

7. The presentation of the financial plan

The financial plan section is where we will present the financial forecast we talked about earlier in this guide.

Now that you have a clear idea of what goes in your insurance broker business plan, let's look at the solutions you can use to draft yours.

What tool should I use to write my insurance broker's business plan?

In this section, we will be reviewing the two main solutions for creating an insurance broker business plan:

  • Using specialized online business plan software,
  • Outsourcing the plan to the business plan writer.

Using an online business plan software for your insurance broker's business plan

The modern and most efficient way to write an insurance broker business plan is to use business plan software .

There are several advantages to using specialized software:

  • You can easily create your financial forecast by letting the software take care of the financial calculations for you without errors
  • You are guided through the writing process by detailed instructions and examples for each part of the plan
  • You can access a library of dozens of complete business plan samples and templates for inspiration
  • You get a professional business plan, formatted and ready to be sent to your bank or investors
  • You can easily track your actual financial performance against your financial forecast
  • You can create scenarios to stress test your forecast's main assumptions
  • You can easily update your forecast as time goes by to maintain visibility on future cash flows
  • You have a friendly support team on standby to assist you when you are stuck

If you're interested in using this type of solution, you can try The Business Plan Shop for free by signing up here .

Hiring a business plan writer to write your insurance broker's business plan

Outsourcing your insurance broker business plan to a business plan writer can also be a viable option.

Business plan writers are skilled in creating error-free business plans and accurate financial forecasts. Moreover, hiring a consultant can save you valuable time, allowing you to focus on day-to-day business operations.

However, it's essential to be aware that hiring business plan writers will be expensive, as you're not only paying for their time but also the software they use and their profit margin.

Based on experience, you should budget at least £1.5k ($2.0k) excluding tax for a comprehensive business plan, and more if you require changes after initial discussions with lenders or investors.

Also, exercise caution when seeking investment. Investors prefer their funds to be directed towards business growth rather than spent on consulting fees. Therefore, the amount you spend on business plan writing services and other consulting services should be insignificant compared to the amount raised.

Keep in mind that one drawback is that you usually don't own the business plan itself; you only receive the output, while the actual document is saved in the consultant's business planning software. This can make it challenging to update the document without retaining the consultant's services.

For these reasons, carefully consider outsourcing your insurance broker business plan to a business plan writer, weighing the advantages and disadvantages of seeking outside assistance.

Why not create your insurance broker's business plan using Word or Excel?

I must advise against using Microsoft Excel and Word (or their Google, Apple, or open-source equivalents) to write your insurance broker business plan. Let me explain why.

Firstly, creating an accurate and error-free financial forecast on Excel (or any spreadsheet) is highly technical and requires a strong grasp of accounting principles and financial modelling skills. It is, therefore, unlikely that anyone will fully trust your numbers unless you have both a degree in finance and accounting and significant financial modelling experience, like us at The Business Plan Shop.

Secondly, relying on spreadsheets is inefficient. While it may have been the only option in the past, technology has advanced significantly, and software can now perform these tasks much faster and with greater accuracy. With the rise of AI, software can even help us detect mistakes in forecasts and analyze the numbers for better decision-making.

And with the rise of AI, software is also becoming smarter at helping us detect mistakes in our forecasts and helping us analyse the numbers to make better decisions.

Moreover, software makes it easier to compare actuals versus forecasts and maintain up-to-date forecasts to keep visibility on future cash flows, as we discussed earlier in this guide. This task is cumbersome when using spreadsheets.

Now, let's talk about the written part of your insurance broker business plan. While it may be less error-prone, using software can bring tremendous gains in productivity. Word processors, for example, lack instructions and examples for each part of your business plan. They also won't automatically update your numbers when changes occur in your forecast, and they don't handle formatting for you.

Overall, while Word or Excel may seem viable for some entrepreneurs to create a business plan, it's by far becoming an antiquated way of doing things.

  • A business plan has 2 complementary parts: a financial forecast showcasing the expected growth, profits and cash flows of the business; and a written part which provides the context needed to judge if the forecast is realistic and relevant.
  • Having an up-to-date business plan is the only way to keep visibility on your insurance broker's future cash flows.
  • Using business plan software is the modern way of writing and maintaining business plans.

We hope that this practical guide gave you insights on how to write the business plan for your insurance broker. Do not hesitate to get in touch with our team if you still have questions.

Also on The Business Plan Shop

  • In-depth business plan structure
  • Key steps to write a business plan?
  • Free business plan template

Know someone who owns or wants to start an insurance broker? Share this article with them!

Guillaume Le Brouster

Founder & CEO at The Business Plan Shop Ltd

Guillaume Le Brouster is a seasoned entrepreneur and financier.

Guillaume has been an entrepreneur for more than a decade and has first-hand experience of starting, running, and growing a successful business.

Prior to being a business owner, Guillaume worked in investment banking and private equity, where he spent most of his time creating complex financial forecasts, writing business plans, and analysing financial statements to make financing and investment decisions.

Guillaume holds a Master's Degree in Finance from ESCP Business School and a Bachelor of Science in Business & Management from Paris Dauphine University.

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Mortage Broker Business Plan Sample

AUG.30, 2018

finance broker business plan

Do you want to start mortgage broker business?

Do you want to open a mortgage brokerage business? Well, opening a mortgage company is undeniably a business that involves a lot of effort, but the rate of return you will get after all your efforts in this business will compel you to thank yourself later for all those efforts. Everybody requires a house for shelter or a place for work, in the United States, many countrymen, as well as foreigners, aren’t capable of buying the real estate especially in big cities due to the sky-high costs.

A mortgage broker business is based on arranging transactions between the buyer and banks or real estate firms, on easy installments and down payments after taking a mortgage, debt property. The business is in great demand, as this is the only way for average or low-income people to have a property or vehicle of their own in big cities.

So, if you have planned to start this business, then don’t just build castles in the air, prepare a comprehensive and detailed business plan to take a startup. In case, the complications of writing a business plan are bothering you, you can take help from this sample business plan written on how to start a mortgage brokerage for a startup named, ‘Gary Brokerage’, owned by Gary Cleese.

Executive Summary

2.1 the business.

Gary Brokerage will be a licensed and registered mortgages company, owned by Gary Cleese. The company will be located in New York, and will initially operate in only one city. The business is aimed to provide housing and real estate facilities to a large audience by selling mortgages for them on easy installments. Gary has many mortgages of housing and commercial buildings from the real estate business plan , he has arranged an organized section in his company for gathering and checking the required documents of the borrowers, to provide them with mortgage pre-approval. After the borrower has met with the eligibility requirements, he/she will be given the ownership of the desired property with easy to pay installments in accordance with the buyers’ income.

2.2 Management

To start a mortgage brokerage , management is the core thing you need to focus. The business involves complicated inquiry and agreements, and long-term payments, so, you must organize each and everything, and must have a formulated management system for running this business.

Considering the importance of management system, Gary has prepared the list of employees, their jobs description, and their responsibilities in his mortgage lender business plan . Gary has decided to manage the business by himself with the help of two co-managers. The sample business plan of Gary Brokerage is given here for your help if you want to know how to start your own mortgage broker business.

2.3 Customers

Knowing your customers and their demands before starting a new business is a thing, that can help you a lot in devising your policies. Gary Brokerage is intended to serve the renters and foreigners in New York by helping them in purchasing and owning the real estate.

2.4 Target of the Company

The company aims at becoming the most recognized and the most renowned brokerage in the whole New York City within just six to seven months of the launch, by providing incomparable customer service to the inhabitants of the New York City.

Mortage Broker Business Plan - 3 Years Profit Forecast

Company Summary

3.1 company owner.

Gary Cleese will be the owner of Gary Brokerage; Gary is an LLB from the Columbia University and has been practicing law for more than fifteen years in the New York. Now, when he has received his huge shares from the legacy, he wants to invest them in profitable businesses. Gary has an in-depth knowledge about agreements and inquiry needed for taking loans, and other means of buying property. He is also well-known for his public speaking and management skills; he is starting a loan broker business , to invest his skills and money in a project which he finds the most suitable for himself.

3.2 Why the Business is being started

After receiving his shares, Gary has more than enough money to invest in some business. Throughout all his career, he has practiced law on dealing with the disputes on land ownership. This experience of Gary has made him a well-informed person about all types of land ownership, and tuned in with the pioneers of real estate and mortgage business. Gary has many unique mortgage broker marketing ideas , and he can only work on them by opening his own brokerage.

The other reason of starting a mortgage brokerage  is the rising demand of this business. Shelter is a basic necessity of every human, and in the big cities like New York, what most average people are deprived of is shelter; a land of their own. In New York, the median price to buy a house is $1.6 million, which makes it about impossible for a foreigner, a beginner entrepreneur or a new jobholder to own real estate. Such people prefer to pay some down payment and buy a mortgage on economical installments.

3.3 How the Business will be started

Gary has planned everything about his business, he even has got prepared his mortgage business plan template . A large building on the 5 th Avenue will be used as the company’s office. The business will be registered by the NMLS, Nationwide Multistate Licensing System & Registry. Gary has relations with top real estate owners, he will collect information about several mortgages to lend to the borrowers before starting the business. A team of trusted and dedicated members will be hired to assist Gary in running the business. The borrowers will have a variety of choices in buying a mortgage by remaining in their income range and needs. Organized and separate sections will be made for maintaining the proper inspections and records of both the borrowers and the lenders. Gary has decided to provide the borrowers with the right of recession, furthermore, he’ll have flexible policies in case of mortgage defaults.

Candle Making Business Plan - Startup Cost

The detailed start-up requirements, start-up funding, start-up expenses, total assets, total funding required, total liabilities, total planned investment, total capital and liabilities as forecasted by experts, are given below:

Services for customers

You have to decide your services before starting a mortgage lending company  because in a mortgage business you have to do all the pre-work required for a certain service you are going to provide. For example, if you decide to provide home equity loans, you have to work out on it to fulfill its requirements and employing the needed company persons for estimating property value as well as other chores.

So, if you are searching on how to start your own mortgage company , the foremost duty is to formulate a business plan including all the services you want to provide your customers as well as the detail that how will you manage to provide them with the services. If you are having difficulty in deciding your servicing, you can take help from many mortgage loan officer business plan examples available on the web like this one.

Gary Brokerage will provide the following services to its customers:

  • Brokering Residential Mortgage: We’ll guide the borrower and the lender and negotiate loans between them in buying residential properties. We’ll do research in finding the requirements of our clients, and will do all the settlements and legwork on their behalf.
  • Brokering Commercial & Industrial Real Estate: Commercial estate is any property bought for the purpose of generating profit. We’ll arrange the place and loans for the businessmen who want to start a new business or a branch of previously existing business but are not aware of the opportunities, taxations, and procedures of buying estate in the big city, we will save them from getting into the complications about which they knew not.
  • Brokering Home Equity Loans: The persons who own some kind of property, but require loans to finance their expenses such as medical, education etc. will be given loans according to the value of their property. Gary will hire the services of appraisers to determine the value of property and interest rate on loan.
  • Brokering Vehicle Loans: In case, you aren’t in a position to buy a vehicle in New York, don’t worry, Gary will buy the vehicle for you and you will need to pay the amount in the form of installments with very little interest.

Marketing Analysis of mortgage broker business

When you are taking an initiative and starting a totally new venture, you have to accustom various measures to understand the demands and requirements of the public you are going to target. The success of your startup will be entirely dependent on how efficiently you are able to communicate with the needs of your borrowers and terms and conditions of your lenders. An accurate marketing analysis is needed to be done to understand whether you will be able to start your own mortgage company  or not, or whether the market you are choosing for your startup has the stamina or potential of a new startup or not. In your mortgage company business plan , you must carry out proper marketing analysis to identify your target groups before time. You have to do it before starting a mortgage company , as it will assist you in defining your services and marketing strategy.

If you are looking for help on how to start a mortgage brokerage company , you can take help from this mortgage loan officer business plan sample written for the startup of Gary Brokerage. You can also seek help from several business plan samples available on the web. However, if you are starting a mortgage broking business on large scale, then instead of taking help from this mortgage broker business plan , you should hire an expert marketing analyst to make a mortgage broker marketing plan for your startup.

A successful marketing strategy can only be developed after knowing the target audience and potential customers. Considering the significance of marketing analysis Gary has hired marketing experts for carrying out extensive research to identify his target customers and develop a unique marketing strategy to attract them.

5.1 Market Trends

Mortgage brokering business has outstanding demand due to the increasing confidence of people in the services. Reasonable economic conditions and low interest rates have constrained a lot of people in the United States to buy vehicles and real estate on mortgage loans. The business is in the mainstream right now and according to IBISWorld, is still growing at an annual rate of 5.8 percent. There are more than 844,296 real estate brokering industries currently running in the United States, generating a revenue of $155 billion annually, employing 1.1 million population of the United States. The statistics clearly demonstrate that you can generate a large amount of profit provided that you plan and market your business successfully.

5.2 Marketing Segmentation

If you are starting a mortgage brokerage business , you have to make a detailed mortgage officer bank loan business plan   covering the details of how will you attract your target audience. In case, you need assistance in making your mortgage banker business plan , you can take help from this sample business plan of Gary Brokerage.

The detailed marketing segmentation of our target audience is as follows:

Mortage Broker Business Plan - Marketing Segmentation

5.2.1 Renters: Our marketing analyst has identified this as our biggest target group. Many people in the New York City live on rent and want to own their own estate, but the lack of knowledge and money make them unable to do so. These people include foreigners, new jobholders or people with average incomes. Such people can’t afford buying a house for themselves directly. So, in order to buy a land, or house they prefer to consult a mortgage broker, and own the property by paying reasonable installments and down payment on mortgage. Our experts have defined this category as the major borrowers of our service of brokering vehicle loans too. We believe that our low interest rate, simple policies and strategic location will surely pull them to our office.

5.2.2 Businessmen: Our next target customers will be the businessmen who want to extend their setup or want to open up a new branch but do not have time to indulge in the complications of buying estate. The executives usually want to bypass the tensions of buying estate or office in a new city of entirely new trends. They prefer to contact the mortgage brokers to arrange the setup for them. Our experts have identified this group as our potential borrowers of brokering commercial and industrial real estate mortgages.

5.2.3 Property Owners: Our business is meant to serve both the lenders and the borrowers. So, our experts have identified the real estate owners and the owners of automotive industries as our third target audience. Such people will contact us whenever they want to sell their property or automobiles.

The detailed market analysis of our potential customers is given in the following table:

5.3 Business Target

Gary has high goals and aims regarding the growth of his business. The target which Gary Brokerage intend to fulfill within the five years of launch is to become the most trusted and renowned mortgage broker business in the New York City. Our business target is to provide excellent and reliable service to our lenders as well as borrowers. We aim at providing top-level customer service to all our target groups. Our every employee and salesperson will treat our customers with utmost respect so as to build a long-lasting relationship with them.

However, the company also has some long-term targets which are to be fulfilled after we have established in the New York City completely. These include opening another branch of Gary Brokerage in the current or neighboring city and increasing our services to serve more and more people.

5.4 Product Pricing

Setting the prices of your services is the most thoughtful and challenging task, as you have to keep up your finances and allure the customers at the same time. To introduce ourselves to a larger audience, we have decided to keep our prices lower than our competitors in the initial phase. However, we believe that the company will still be able to fulfill its financial goals.

Sales strategy is the most decisive and effective part if you are going to start a mortgage company . In your mortgage marketing plan , you must include the ways and methodologies to increase the sales of your services and generating more and more profit. Gary carried out an extensive research and also hired the services of financial experts to work in collaboration with the company’s advertising manager and administration to devise an effective sales strategy.

If you are not clear on how to start a mortgage company  or how to develop effective sales strategy, you can take help from this mortgage loan officer business plan template  of Gary Brokerage.

6.1 Competitive Analysis

Gary had the idea of the tough competition he will have to face in the market, that’s why he has come up with the excellent competitive edges that all his other competitors lack. Gary believe that if marketed properly, these competitive edges will give him unparalleled superiority in this business.

Our biggest competitive advantage lies in the power of our crew, each member has a thorough understanding of property types, credits, inspection systems and loan amounts. We have a team of dedicated and honest workers who will go all the way to provide maximum satisfaction and easy access to mortgage loans to our customers. Our trained and skilled professionals will do all the research and strenuous work on your behalf for you. Our dedicated workers will interpret your needs and range of spending before presenting the most suitable and economical property to you.

Secondly, Gary has terms and alliances with the leading real estate barons and developers alongside automotive shop owners. He can surely be able to find out the most suitable lender for you after understanding your needs. His former experience as a lawyer is another competitive advantage as he knows all the procedures, registry and verification systems. Moreover, Gary Brokerage is located on the main road which is easily accessible and visible by our target groups.

6.2 Sales Strategy

The success of a startup depends on the extent to which you are able to advertise your services. Considering the importance of targeting large audience, Gary Brokerage will advertise its services by using the following means:

  • We’ll make our website creating a login for our borrowers and lenders with ultimate cybersecurity, by which they will be able to pay the installments through their Payoneer or PayPal account
  • We’ll create a Facebook page to leverage the opportunity of advertising our services to a large audience
  • Before using our services, you can get to know about our work efficiency by reading the feedbacks of our clients and lenders on our website or Facebook page
  • We’ll fix our posters on bustling areas to let the people know about us
  • We’ll provide maximum ease to our customers and will keep our interest rate as low as possible

6.3 Sales Forecast

We believe that if people try our services for once, they will surely trust us again for the rest of their lives. Considering the market demand and quality of our services, our sales pattern is expected to increase with the coming years. By analyzing our market segmentation strategy, our experts have forecasted the following sales on yearly basis which are summarized in the column charts.

Mortage Broker Business Plan - Unit Sales

The detailed information about sales forecast, total unit sales, total sales is given in the following table:

6.4 Sales Monthly

Mortage Broker Business Plan - Sales Monthly

6.5 Sales Yearly

Mortage Broker Business Plan - Sales Yearly

Personnel plan

The crucial step before starting a mortgage broker business  is to find a team of hardworking and dedicated workers. Your marketing and sales strategy can only help you in gaining customers, but the enthusiastic employees can help you in maintaining those customers. So, before you start mortgage company , hire your crew wisely as you will be solely dependent on them.

For those people who want to know how to open a mortgage brokerage business , we have provided here the sample business plan of Gary Brokerage covering the details of the staff, he will hire.

7.1 Company Staff

Gary will act as the Chief Operating Officer of the company and will discipline the manager and the company by himself. The company will initially hire following people:

  • 2 General Managers to manage the operations
  • 10 Mortgage Brokers and Loan Services Consultants for brokering mortgages
  • 4 HR Managers for arranging meetings of borrowers and lenders and for carrying out induction for recruiting new member
  • 4 Administrators / Accountants to maintain financial records
  • 2 IT Experts to manage the company’s website and social media pages
  • 5 Data Analysts to interpret and organize data
  • 2 Sales and Marketing Executives responsible for discovering new ventures.
  • 2 Drivers for routine works
  • 3 Cleaners for the maintenance of company’s office
  • 1 Front Desk Officer to act as a receptionist in the company office

All the employees will be trained for their duties and works, before the initiation of the startup.

7.2 Average Salary of Employees

The following table shows the forecasted data about employees and their salaries for the next three years.

Financial Plan

The last step to be taken to start a mortgage business  is to formulate your financial plan. Financial plan is undoubtedly, the most decisive part of the success of a startup especially if you want to grow your business. Financial planning before starting mortgage company can help you in meeting your long-term financial goals, by monitoring your flow patterns and spending. Your comprehensive and accurate financial plan can help you in facing the worst situations and ups and downs you can encounter while running your business.

Considering the importance of an accurate and comprehensive financial plan, Gary has hired the services of a financial planner advisor to make a financial plan for his business. Gary Brokerage will be mainly financed by Gary himself. No equity funding or outside loan will be required unless the company expands faster than forecasted. You can take help from this sample financial plan if you need help about how to start a mortgage brokerage business , and you can also find many other business plan samples available online. However, the best choice for if you are lacking knowledge on how to start mortgage broker business or how to make an effective financial plan is to hire a professional to make precise financial plan for you, saving you from the trouble of gathering all information by yourself.

8.1 Important Assumptions

The company’s financial projections are forecasted on the basis of following assumptions. These assumptions are quite conservative and are also expected to show deviation but to a limited level such that the company’s major financial strategy will not be affected.

8.2 Brake-even Analysis

The following graph shows the company’s Brake-even Analysis.

Mortage Broker Business Plan - Brake-even Analysis

The following table shows the company’s Brake-even Analysis.

8.3 Projected Profit and Loss

The following table show the company’s expected Profit and Loss situation on the monthly and yearly basis.

8.3.1 Profit Monthly

The following charts shows detailed information about profit and loss, and total cost of sales.

Mortage Broker Business Plan - Profit Monthly

8.3.2 Profit Yearly

Mortage Broker Business Plan - Profit Yearly

8.3.3 Gross Margin Monthly

Mortage Broker Business Plan - Gross Margin Monthly

8.3.4 Gross Margin Yearly

Mortage Broker Business Plan - Gross Margin Yearly

8.4 Projected Cash Flow

The following column diagram shows the projected cash flow.

Mortage Broker Business Plan - Projected Cash Flow

The following table shows detailed data about pro forma cash flow, subtotal cash from operations, subtotal cash received, sub-total spent on operations, subtotal cash spent.

8.5 Projected Balance Sheet

The following projected balance sheet shows data about total current assets, total long-term assets, total assets, subtotal current liabilities, total liabilities, total capital, total liabilities and capital.

8.6 Business Ratiosы

The following table shows data about business ratios, ratio analysis, total assets, net worth.

Download Mortage Broker Business Plan Sample in pdf

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finance broker business plan

It should be noted that there is no special software required to use these templates. All business plans come in Microsoft Word and Microsoft Excel format. Each business plan features:

  • Excecutive Summary
  • Company and Financing Summary
  • Products and Services Overview
  • Strategic Analysis with current research!
  • Marketing Plan
  • Personnel Plan
  • 3 Year Advanced Financial Plan
  • Expanded Financial Plan with Monthly Financials
  • Loan Amortization and ROI Tools
  • FREE PowerPoint Presentation for Banks, Investors, or Grant Companies!

1.0 Executive Summary

The purpose of this free business plan is to raise $100,000 for the development of a business brokerage and mergers and acquisitions consulting firm while showcasing the expected financials and operations over the next three years. The Business Brokerage, Inc. (“the Company”) is a New York based corporation that will provide business brokering and M&A consulting to customers in its targeted market. The Company was founded in 2008 by John Doe.

1.1 Products and Services

The Company’s primary business will be to act as an intermediary between business owners and potential buyers to affect a sale of the client’s business. The Business Brokerage will receive a 10% commission (from the total sales price) for each successful transaction completed. On behalf of its business client, the Company will also source and manage third party valuations for its business selling clients. It is imperative to establish a fair market value for a business that is to be sold. The Business Brokerage will receive a 30% gross margin from each dollar of valuation revenue generated. The third section of the free business plan will further describe the services offered by the Business Brokerage.

1.2 The Financing

Mr. Doe is seeking to raise $100,000 from as a bank loan. The interest rate and loan agreement are to be further discussed during negotiation. This free business plan assumes that the business will receive a 10 year loan with a 9% fixed interest rate.

1.3 Mission Statement

It is the goal of the Business Brokerage to develop a business that will act as a business intermediary for a number of small and medium sized business owners that are looking to quickly and cost efficiently sell their established companies to third parties. At all times Management will act as a responsible fiduciary agent of the client, and will work tirelessly to place a buyer with our selling client.

1.4 Mangement Team

The Company was founded by John Doe. Mr. Doe has more than 10 years of experience in the business intermediary industry. Through his expertise, he will be able to bring the operations of the business to profitability within its first year of operations.

1.5 Sales Forecasts

Mr. Doe expects a strong rate of growth at the start of operations. Below are the expected financials over the next three years.

1.6 Expansion Plan

The Founder expects that the business will aggressively expand during the first three years of operation. Mr. Doe intends to implement marketing campaigns that will effectively target small and medium sized business owners within the target market.

2.0 Company and Financing Summary

2.1 Registered Name and Corporate Structure

Business Brokerage, Inc. The Company is registered as a corporation in the State of New York.

2.2 Required Funds

At this time, the Business Brokerage requires $100,000 of debt funds. Below is a breakdown of how these funds will be used:

2.3 Investor Equity

Mr. Doe is not seeking an investment from a third party at this time.

2.4 Management Equity

John Doe owns 100% of the Business Brokerage, Inc.

2.5 Exit Strategy

If the business is very successful, Mr. Doe may seek to sell the business to a third party for a significant earnings multiple. Based on historical numbers, the business could fetch a sales premium of up to 4 times earnings.

3.0 Products and Services

Below is a description of the business brokering and valuation services offered by the Business Brokerage.

3.1 Business Brokerage Services

The primary function of the Business Brokerage is to act as a selling agent for business owners looking to divest their companies. The brokerage will act in a general capacity with the ability to sell any business to a third party investor, business owner, or private equity firm. The Company will receive a 10% commission on each dollar of the business’s sale up to $1,000,000. From that point, the Company will use a sliding scale that will generate 8% on the second million dollars of value, 6% for the third million, 4% for the fourth million, 2% of the fifth million, and 1% of each dollar thereafter.

3.2 Third Party Valuations

Before a client’s company is marketed for sale, Management will hire a third party valuation expert or certified public accountant to perform a full valuation and opinion for the expected sales price of a business. This will provide both sellers and buyers with a complete examination of the business, and a value for negotiation. The third party valuation experts chosen by management will have specific industry expertise.In this section of the free business plan, you should further describe the products and services that you intend to offer to your customers. If you need to add more product categories, please consult the instructions that were included in the BizPlanDB.com zip file.

4.0 Strategic and Market Analysis

4.1 Economic Outlook

This section of the analysis will detail the economic climate, the business brokering industry, the customer profile, and the competition that the business will face as it progresses through its business operations. Currently, the economic market condition in the United States is moderate. The meltdown of the sub prime mortgage market coupled with increasing gas prices has led many people to believe that the US is on the cusp of an economic recession. This slowdown in the economy has also greatly impacted real estate sales, which has halted to historical lows.

4.2 Industry Analysis

For every business sold in the United States, business brokers affect approximately 10% of the aggregate transactions. Among companies that are listed for sale by owner, the success rate among sellers is only 20%. Among business brokerages, a listing has an 80% chance of being sold. This is primarily attributed to the business owner’s inability to market the business through proper channels. In the United States, there are approximately 5,000 companies that act in a business brokerage capacity. Before starting a new brokerage, a company must establish its license in the jurisdiction from which it will operate. Each state has different rules pertaining to the business brokerage industry, with some states requiring no registration to certain states (such as California) requiring several licenses and regular disclosure of transactions. The Business Brokerage will have an attorney file all necessary licenses and papers for each new jurisdiction that it operates.

4.3 Customer Profile

In this section of the analysis, you should describe the type of customer you are seeking to acquire. These traits include income size, type of business/occupation; how far away from your business is to your customer, and what the customer is looking for. In this section, you can also put demographic information about your target market including population size, income demographics, level of education, etc.

4.4 Competitive Analysis

This is one of the sections of the free business plan that you must write completely on your own. The key to writing a strong competitive analysis is that you do your research on the local competition. Find out who your competitors are by searching online directories and searching in your local Yellow Pages. If there are a number of competitors in the same industry (meaning that it is not feasible to describe each one) then showcase the number of businesses that compete with you, and why your business will provide customers with service/products that are of better quality or less expensive than your competition.

5.0 Marketing Plan

The Business Brokerage intends to maintain an extensive marketing campaign that will ensure maximum visibility for the business in its targeted market. Below is an overview of the marketing strategies and objectives of the Business Brokerage.

5.1 Marketing Objectives

• Develop an online presence by developing a website and placing the Company’s name and contact information with online directories.

• Implement a local campaign with the Company’s targeted market via the use of flyers, local newspaper advertisements, and word of mouth.

• Establish relationships with other business brokerages.

5.2 Marketing Strategies

The business intends to use a number of marketing strategies to not only promote the acquisition of new clients, but all to promote sales of client’s businesses. Management intends to frequent a number of trade shows specifically geared towards specific industries. This will generate interest among business owners that are seeking to divest their established businesses to third parties. These tradeshows will feature a number of take-away sales brochures and information literature about the Business Brokerage, and its ability to quickly sell a client’s business.

5.3 Pricing

In this section, describe the pricing of your services and products. You should provide as much information as possible about your pricing as possible in this section. However, if you have hundreds of items, condense your product list categorically. This section of the free business plan should not span more than 1 page.

6.0 Organizational Plan and Personnel Summary

6.1 Corporate Organization

6.2 Organizational Budget

6.3 Management Biographies

In this section of the business plan, you should write a two to four paragraph biography about your work experience, your education, and your skill set. For each owner or key employee, you should provide a brief biography in this section.

7.0 Financial Plan

7.1 Underlying Assumptions

• The Business Brokerage will have an annual revenue growth rate of 16% per year.

• The Owner will acquire $100,000 of debt funds to develop the business.

• The loan will have a 10 year term with a 9% interest rate.

7.2 Sensitivity Analysis

The Company’s revenues are moderately sensitive to changes in the overall economy. In times of prosperity, business owners may seek to divest businesses that have grown quickly and now have a sizable valuation coupled with a significant increase of owner’s equity. In times of economic recession, business owners may keep existing businesses that provide a predictable and stable stream of income.

7.3 Source of Funds

7.4 General Assumptions

7.5 Profit and Loss Statements 

7.6 Cash Flow Analysis

7.7 Balance Sheet

7.8 General Assumptions

7.9 Business Ratios

Expanded Profit and Loss Statements

Expanded Cash Flow Analysis

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  • Writing a Business Plan

Writing a business plan may seem a daunting task as there are so many moving parts and concepts to address. Take it one step at a time and be sure to schedule regular review (quarterly, semi-annually, or annually) of your plan to be sure you on are track to meet your goals.

Essential Components of a Real Estate Business Plan

Why Write a Business Plan?

Making a business plan creates the foundation for your business. It provides an easy-to-understand framework and allows you to navigate the unexpected.

Quick Takeaways

  • A good business plan not only creates a road map for your business, but helps you work through your goals and get them on paper
  • Business plans come in many formats and contain many sections, but even the most basic should include a mission and vision statement, marketing plans, and a proposed management structure
  • Business plans can help you get investors and new business partners

Source: Write Your Business Plan: United States Small Business Association

Writing a business plan is imperative to getting your business of the ground. While every plan is different – and most likely depends on the type and size of your business – there are some basic elements you don’t want to ignore.

Latest on this topic

Budget sheet and planner

NAR Library & Archives has already done the research for you. References (formerly Field Guides) offer links to articles, eBooks, websites, statistics, and more to provide a comprehensive overview of perspectives. EBSCO articles ( E ) are available only to NAR members and require the member's nar.realtor login.

Defining Your Mis​sion & Vision

Writing a business plan begins by defining your business’s mission and vision statement. Though creating such a statement may seem like fluff, it is an important exercise. The mission and vision statement sets the foundation upon which to launch your business. It is difficult to move forward successfully without first defining your business and the ideals under which your business operates. A company description should be included as a part of the mission and vision statement. Some questions you should ask yourself include: 

  • What type of real estate do you sell?
  • Where is your business located?
  • Who founded your business?
  • What sets your business apart from your competitors?

What is a Vision Statement ( Business News Daily , Feb. 21, 2023)

How to Write a Mission Statement ( The Balance , Jan. 2, 2020)

How to Write a Mission Statement ( Janel M. Radtke , 1998)

Using a SWOT Analysis to Structure Your Business Plan

Once you’ve created a mission and vision statement, the next step is to develop a SWOT analysis. SWOT stands for “Strengths, Weaknesses, Opportunities, and Threats.” It is difficult to set goals for your business without first enumerating your business’s strengths and weaknesses, and the strengths and weaknesses of your competitors. Evaluate by using the following questions:

  • Do you offer superior customer service as compared with your competitors?
  • Do you specialize in a niche market? What experiences do you have that set you apart from your competitors?
  • What are your competitors’ strengths?
  • Where do you see the market already saturated, and where are there opportunities for expansion and growth?

Strength, Weakness, Opportunity, and Threat (SWOT) ( Investopedia , Apr. 21, 2023)

How to Conduct a SWOT Analysis for Your Small Business ( SCORE , Apr. 28, 2022)

SWOT Analysis Toolbox ( University of Washington )

Setting ​Business Goals

Next, translate your mission and vision into tangible goals. For instance, if your mission statement is to make every client feel like your most important client, think about the following:

  • How specifically will you implement this?
  • Do you want to grow your business?
  • Is this growth measured by gross revenue, profit, personnel, or physical office space?
  • How much growth do you aim for annually?
  • What specific targets will you strive to hit annually in the next few years?

What are Business Goals? Definition, How To Set Business Goals and Examples ( Indeed , Mar. 10, 2023)

Planning and Goal Setting for Small Business ( U.S. Small Business Administration )

  • Regular work goals.
  • Problem-solving goals.
  • Innovative goals.
  • Development goals

Establishing a Format

Most businesses either follow a traditional business plan format or a lean startup plan.

Traditional Business Plan

A traditional business plan is detailed and comprehensive. Writing this business plan takes more time. A traditional business plan typically contains the following elements:

  • Executive Summary
  • Company description
  • Market analysis
  • Organization and management
  • Service or product line
  • Marketing and sales
  • Funding request
  • Financial projections

Lean Startup Plan

A lean startup plan requires high-level focus but is easier to write, with an emphasis on key elements. A lean startup plan typically contains the following elements:

  • Key partnerships
  • Key activities
  • Key resources
  • Value proposition
  • Customer relationships
  • Customer segments
  • Cost structure
  • Revenue stream

Creating a Marketing Plan

You may wish to create a marketing plan as either a section of your business plan or as an addendum. The Marketing Mix concerns product , price , place and promotion .

  • What is your product?
  • How does your price distinguish you from your competitors—is it industry average, upper quartile, or lower quartile?
  • How does your pricing strategy benefit your clients?
  • How and where will you promote your services?
  • What types of promotions will you advertise?
  • Will you ask clients for referrals or use coupons?
  • Which channels will you use to place your marketing message?

Your Guide to Creating a Small Business Marketing Plan ( Business.com , Mar. 22, 2023)

10 Questions You Need to Answer to Create a Powerful Marketing Plan ( The Balance , Jan. 16, 2020)

Developing a Marketing Plan ( Federal Deposit Insurance Corporation )

Forming a Team

Ensuring the cooperation of all colleagues, supervisors, and supervisees involved in your plan is another important element to consider. Some questions to consider are:

  • Is your business plan’s success contingent upon the cooperation of your colleagues?
  • If so, what specifically do you need them to do?
  • How will you evaluate their participation?
  • Are they on-board with the role you have assigned them?
  • How will you get “buy in” from these individuals?

How to Start a Rock-Solid Real Estate Team ( The Close , May 26, 2020)

Don’t Start a Real Estate Team Without Asking Yourself These 8 Questions ( Homelight , Jan. 21, 2020)

Implementing a Business Plan and Reviewing Regularly

Implementation and follow-up are frequently overlooked aspects to the business plan, yet vital to the success of the plan. Set dates (annually, semi-annually, quarterly, or monthly) to review your business plans goals. Consider the following while reviewing:

  • Are you on track?
  • Are the goals reasonable to achieve, impossible, or too easy?
  • How do you measure success—is it by revenue, profit, or number of transactions?

And lastly, think about overall goals.

  • How do you plan to implement your business plan’s goals?
  • When will you review and refine your business plan goals?
  • What process will you use to review your goals?
  • What types of quantitative and qualitative data will you collect and use to measure your success?

These items are only a few sections of a business plan. Depending on your business, you may want to include additional sections in your plan such as a:

  • Cover letter stating the reasoning behind developing a business plan
  • Non-disclosure statement
  • Table of contents

How To Write a Business Proposal Letter (With Examples) ( Indeed , Mar. 10, 2023)

How To Implement Your Business Plan Objectives ( The Balance , Aug. 19, 2022)

The Bottom Line

Creating a business plan may seem daunting, but by understanding your business and market fully, you can create a plan that generates success (however you choose to define it).

Real Estate Business Plans – Samples, Instructional Guides, and Templates

9 Steps to Writing a Real Estate Business Plan + Templates ( The Close , Apr. 17, 2023)

How to Write a Real Estate Business Plan (+Free Template) ( Fit Small Business , Jun. 21, 2022)

The Ultimate Guide to Creating a Real Estate Business Plan + Free Template ( Placester )

Write Your Business Plan ( U.S. Small Business Administration )

General Business Plans – Samples, Instructional Guides, and Templates

Business Plan Template for a Startup Business ( SCORE , May 12, 2023)

Guide to Creating a Business Plan with Template (Business News Daily, Feb. 21, 2023)

Nine Lessons These Entrepreneurs Wish They Knew Before Writing Their First Business Plans ( Forbes , Jul. 25, 2021)

How to Write a Business Plan 101 ( Entrepreneur , Feb. 22, 2021)

Books, eBooks & Other Resources

Ebooks & other resources.

The following eBooks and digital audiobooks are available to NAR members:

20 Minute Manager: Creating Business Plans Gather Your Resources, Describe the Opportunity, Get Buy-in (eBook) E

The Straightforward Business Plan (eBook)

Business Plan Checklist (eBook)

The SWOT Analysis (eBook)

The Business Plan Workbook (eBook)

Start-Up! A Beginner's Guide to Planning a 21st Century Business (eBook)

Complete Book of Business Plans (eBook)

How to Write a Business Plan (eBook)

The Easy Step by Step Guide to Writing a Business Plan and Making it Work (eBook)

Business Planning: 25 Keys to a Sound Business Plan (Audiobook)

Your First Business Plan, 5 th Edition (eBook)

Anatomy of a Business Plan (eBook)

Writing a Business Plan and Making it Work (Audiobook)

The Social Network Business Plan (eBook)

Books, Videos, Research Reports & More

As a member benefit, the following resources and more are available for loan through the NAR Library. Items will be mailed directly to you or made available for pickup at the REALTOR® Building in Chicago.

Writing an Effective Business Plan (Deloitte and Touche, 1999) HD 1375 D37w

Have an idea for a real estate topic? Send us your suggestions .

The inclusion of links on this page does not imply endorsement by the National Association of REALTORS®. NAR makes no representations about whether the content of any external sites which may be linked in this page complies with state or federal laws or regulations or with applicable NAR policies. These links are provided for your convenience only and you rely on them at your own risk.

BizFundingResource.com

Broker Dealer Business Plan and SWOT Analysis

Broker Dealer Business Plan, Marketing Plan, How To Guide, and Funding Directory

The Broker Dealer Business Plan and Business Development toolkit features 18 different documents that you can use for capital raising or general business planning purposes. Our product line also features comprehensive information regarding to how to start a Broker Dealer business. All business planning packages come with easy-to-use instructions so that you can reduce the time needed to create a professional business plan and presentation.

Your Business Planning Package will be immediately emailed to you after you make your purchase.

Product Specifications (please see images below):

  • Bank/Investor Ready!
  • Complete Industry Research
  • 3 Year Excel Financial Model
  • Business Plan (26 to 30 pages)
  • Marketing Plan (24 to 28 pages)
  • 425+ Page Funding Directory
  • PowerPoint Presentation
  • Loan Amortization and ROI Tools
  • Three SWOT Analysis Templates
  • Easy to Use Instructions
  • All Documents Delivered in Word, Excel, and PowerPoint Format
  • Meets SBA Requirements

Broker-dealers play an extremely important part of the capital markets given that they are able to buy and sell securities on behalf of their clients as well as for their own account. These businesses generate fees from a number of different sources including commissions, margin interests, investment advisory services, and actively dealing in securities on an ongoing basis. One of the primary downsides to these types of businesses is that they are heavily regular regulated by the federal and state government. These companies are required to have registrations with FINRA, the SEC, and numerous other financial monitoring agencies to ensure that they had here to the letter of the law all times. This translates into a very high operating expense in order to remain in compliance. However, these businesses can be highly lucrative once they have an established customer base. The revenues that are produced by these businesses are relatively immune from negative changes in the economy given that people are going to require to have the services at any given time. Additionally, these businesses will often produce significant fees from simply holding financial securities on behalf of their customers on an ongoing basis.

The startup cost associated with the new broker-dealer can be either moderate or very expensive depending on the types of services offered. A private placement broker for introducing broker can have a startup cost anywhere from $100,000 to $200,000 while a clearing brokerage can have startup cost in excess of $1 million. Companies that trade for their own account typically have startup cost that range anywhere from $750,000 to $2 million depending on whether or not it will be actively engaged in the dealing of securities and market-making. As with any type of financial business, a CPA as well as a highly qualified attorney should be retained so that these businesses can make sure that they remain in compliance at all times following all standard accounting procedures as it relates to these financial service businesses.

Given their highly predictable revenues, most financial institutions and private investors are willing to put up the necessary capital to start a new broker-dealer. Of course, a broker-dealer business plan is going to be required and this document should include a three-year profit and loss statement, cash flow analysis, balance sheet, breakeven analysis, and business ratios page. For industry research, the financial services industry as it relates to broker-dealers typically generates an excess of $300 billion years of fees, interest, and commissions. The industry employs more than one million people and provides payrolls in excess of $200 billion each year. This can be a very highly lucrative industry for companies that engage in finding financial services.

The marketing required by new broker-dealer can be somewhat limited or somewhat expansive depending on the types of services offered. For broker-dealers that are going to primarily operate as a prime broker for hedge funds, private equity groups, and related entities – and the marketing campaign can be smaller and much more focused towards the high income and high net worth individuals and companies within this market space. However, there is still a significant amount of competition as it relates to obtaining these customers and a broad-based marketing campaign is very expensive most likely need to be implemented. Additionally, it is important to remember that when it relates to advertisements for brokerage services that there needs to be a number of disclosures that are included. This also includes providing a significant amount of legal disclosures as it relates to prospectuses that are distributed by the broker-dealer business.

If the broker-dealer is going to be doing a lot of business with the general public and it is important that they maintain a multipronged marketing strategy that includes online marketing, print advertising, and developing a network of registered representatives that will promote the business in exchange for commission fees. As it relates to online marketing, the broker-dealer is going to need to have an expansive proprietary website that allows individuals to place trades, cedar account balances, obtain tax forms, and engage in a number of other activities as it relates to their securities trading operations. This website should be listed among all major search engines including Google, Bing, and Yahoo.

A presence on social media is of moderate importance to the broker-dealer given that many people do not find financial services if they are going to use to platforms such as FaceBook, Twitter, and Google+. However, most major financial firms to maintain a moderate presence on these platforms in order to boost their brand-name visibility. Some studies have pointed out the fact that an individual needs to see an advertisement nearly 100 times before they can remember on an ongoing basis. As such, it is a low-cost form of boosting brand-name visibility to target a large swath of people as it relates to financial services. Again, it should be noted that a social marketing consultant with a specific focus on financial services should be retained in order to make sure that any advertisements that are being distributed by the broker-dealer fall in line with legally acceptable standards. Most importantly, it can be expected that about 5% to 10% of the total amount of expenditures for the broker-dealer will be focused on marketing activities.

A broker-dealer SWOT analysis should be produced as well. This document focuses on the strengths, weaknesses, opportunities, and threats that are normally faced by financial services businesses. As it relates to strengths, broker-dealers are able to generate a significant amount of high-margin income from a number of different revenue centers. Again, this includes commission income, margin interests, advisory fees, and direct trading fees for the company’s own account. The startup costs are considered to be moderate for financial service business and the barriers are can to entry are considered to moderately high.

For weaknesses, there are a significant amount of regulations that broker-dealers need to adhere to on an ongoing basis. This is one of the largest expenses for these firms given that they must retain a law firm that has a specific understanding of securities law. These operating expenses are also considered to moderately high given the large amount of marketing that needs to be done on an ongoing basis.

For opportunities, this is quite simple given that many broker-dealers can simply expand by increasing the capital base for trading for their own account. Additionally, significantly investments into the company’s marketing infrastructure will secure additional client so that the business can grow organically. One of the other ways that a broker-dealer can expand is to acquire existing businesses that already have an operating history.

As it relates to threats, there are a number of regulations that are continually changing depending on the type of administration that is currently occupying the United States government. However, there are really no major outside threats outside of a significant economic recession that would change the way that these businesses are able to generate revenues were operate their businesses profitably. Broker-dealers are going to continue to be one of the most important types of companies within the United States given that they are able to affect transactions between companies as well as among individuals are looking to save for retirement. One of the nice things about these businesses is that they are generally able to always find ways to produce an income especially as it relates to directly trading securities for a broker-dealers own account. Almost all of these financial service companies now maintain proprietary sales and trading desks and engage in this activity that can help offset the risks of operating a standard broker-dealer on a day-to-day basis.

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Print Broker Business Plan

Start your own print broker business plan

R and R Printing

Executive summary executive summary is a brief introduction to your business plan. it describes your business, the problem that it solves, your target market, and financial highlights.">.

R & R Printing is a new print brokerage firm, formed as a sole proprietorship. The owner has extensive experience in the printing industry as a sales manager.

We will offer printing services for a wide range of print media, including business cards, letterhead, envelopes, brochures, booklets, business forms, posters, catalogues and labels. Our goal is to serve all the printing needs for each company we work with, to be a one-stop-shop. While our services, product quality, and prices will be excellent, our marketing strategy focuses on building long-term relationships with our customers.

By focusing on its commitment to helping businesses obtain the printing products and services they need, R & R Printing will increase its sales to more than $1.5 million in three years, while improving the gross margin. R & R Printing will distinguish themselves by reinforcing reliability and expertise with competitive pricing.

To finance the start-up of the business, the owner will invest $15,000, and is seeking a five-year loan of $50,000.

Print broker business plan, executive summary chart image

1.1 Objectives

  • Sell $750,000 in the first year.
  • Increase sales to more than $1.5 million by the third year.
  • Bring gross margin up above 30%, and maintain that level.
  • Retain client base from previous relationships, and obtain 20 new clients by the end of the first year.

1.2 Mission

R & R Printing is dedicated to helping businesses obtain the printing products and services they need. R & R Printing offers a high level of practical experience, know-how, and a network of industry contacts, so clients save money and time by allowing a printing professional to handle their printing needs. Very few print shops posess all the equipment and products that most businesses require for all of their printing They rely on the knowledge of a professional that can provide one-stop shopping for all services, paper, bindery, and graphics at a reasonable cost, while overseeing the printing process to ensure the highest quality possible.

R & R Printing is such a vendor. We make it our number one goal that our clients receive the quality of printing they need, with maximum efficiency and reliability. By providing fast response, expertise, and high-quality solutions, R & R Printing generates satisfied repeat customers. This provides a stable retainer base that creates consistent profits.

1.3 Keys to Success

The keys to the success in this business are:

  • Consistent, timely, and accurate expertise and information to fulfill the client’s printing needs.
  • Offer one-stop-shopping with competitive pricing for the quality of products and services offered.
  • Build long-term relations with clients to develop a loyal repeat customer base.

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See why 1.2 million entrepreneurs have written their business plans with LivePlan

Company summary company overview ) is an overview of the most important points about your company—your history, management team, location, mission statement and legal structure.">.

R & R Printing is a new print brokerage firm.

2.1 Company Ownership

R & R Printing is a sole-proprietorship owned by Robert M. Scott, operated by Robert M. Scott and his wife Ronda E. Scott. The owner has extensive prior experience as a sales manager in the printing industry. Incorporation will be explored as a later option.

2.2 Start-up Summary

Our initial start-up costs will amount to approximately $65,000, of which $15,000 will be used to purchase office equipment and up-front manufacturing costs until credit is established with vendors. Additionally, we project the need for a financial commitment of another $50,000 to finance receivables and payroll expenses for the first 12 months of operation.

Print broker business plan, company summary chart image

2.3 Company Locations and Facilities

This is a home office venture, located in a studio in the owner’s home.

Products and Services

R & R Printing provides print media and related services. We are especially focused on providing the broadest possible types of print media, in addition to our knowledge and expertise of the print industry.

3.1 Product and Service Description

R & R Printing is a full service agency that sells printing and related services. Products such as business cards, letterhead, envelopes, brochures, booklets, business forms, posters, catalogues and labels are manufactured and delivered on a timely and cost effective basis. The added value of R & R Printing is its knowledge and expertise. Printing needs are evaluated and assessed; ideas and solutions are offered for each client to meet their individual needs. Most companies require a number of varied print media in order operate, market, and communicate efficiently on a daily basis.

3.2 Competitive Comparison

The print industry is competitive. The way we differ is to define the vision of the company to be a reliable and informative ally to our clients. Most printing companies can only afford a small variety of printing equipment, therefore can only offer a limited type of print media. We maintain close contact with several print manufacturers, paper distributors, and graphic specialists in order to offer most any type of printing on any type of paper at a competitive price. We know where to turn for all types of printing, this saves our clients money and time that would be wasted searching this broad field for each precise need.

3.3 Sales Literature

The business will begin with an introductory letter to all former and prospective clients sharing our exciting news of the creation of our business. We will include our business cards with each letter to ensure easy access to our business number, mobile numbers, fax number, email address and physical address. This letter will be developed as part of the start-up expenses.

3.4 Fulfillment

R & R Printing has established relationships with several trade-only print companies and paper distribution companies. Two of the trade-only print companies and three of the paper distribution companies have been selected as our primary vendors. We have been able to identify opportunities to capture margins of up to 45% for certain parties. Sourcing opportunities will be continually evaluated.

3.5 Technology

We use QuickBooks Pro™ software for accounting, purchasing, taxes, estimating, and invoicing. Act 2000™ is a sales based software that enables us to keep track and effectively manage client accounts. Talkworks Pro™ is a communication software that acts as voice mail, fax machine, and message notification, so that we can keep in close contact with our clients and vendors. These three previously mentioned software programs integrate with each other so to minimize redundancy.

Our business plan will be generated on an annual basis using Business Plan Pro™ software, and will be evaluated quarterly.

Most printing customers provide artwork on electronic digital files. We will maintain contacts with vendors who use the most current versions of graphics, printing, and publishing software from such companies as Adobe®, Corel®, Broderbund®, among others. This allows for the artwork to be recreated exactly to the clients specifications.

3.6 Future Products and Services

Within the next year we will implement a website for R & R Printing to process quote request and repeat orders.

Market Analysis Summary how to do a market analysis for your business plan.">

R & R Printing focuses on local large businesses that utilize a variety of printed materials.

4.1 Market Segmentation

Our market segmentation scheme allows room for estimates and non-specific definitions. We focus on large companies, and it is hard to find information to make exact classifications. Our target companies are large enough to utilize a great deal of print products, but small enough that they do not have in-house printing equipment. We say that our target market company has at least 50 people.

4.2 Target Market Segment Strategy

Our target markets are larger companies that utilize diverse printed materials. We chose this group because the marketing and purchasing departments are generally too busy to research and follow a printed product from beginning to end. They usually rely on the expertise and knowledge of a print vendor they can trust. The focal point of our marketing strategy will be direct face-to-face contact with those individuals that make the print vendor choice.

4.2.1 Market Growth

According to the December 1999 issue of Fortune Magazine , Dallas was ranked number one in their “Best Cities for Business” article. They noted that the Dallas economy is growing at 4.8% annually, significantly above the national average. According to the publication Greater Dallas Chamber , for the year 2000 there are more than 140,000 businesses in the Dallas area, and more that 5,000 corporate headquarters. Eleven of the nation’s largest private firms are located in Dallas and 19 Fortune 500 public headquarters. There are 43 colleges and universities. All of these businesses use printed products. As these businesses grow so does their need for printed material.

Printing is one of the largest manufacturing industries in the United States. According to Ron Davis, Ph.D in his report in the PIA 2000 Print Market Atlas , “print markets should remain healthy, providing printers with many opportunities for success.” He states that print sales should rise five to six percent, adjusted for inflation and the increase is at three to four percent. The five to 10 year outlook looks quite similar.

4.2.2 Market Needs

The most important market needs are knowledge, reliability, pricing, timely completion and high quality. One of the key points of our strategy is to focus on those decision making individuals that know and understand these needs.

4.3 Service Business Analysis

The following is a description of market segmentation, strategies, and industry analysis.

4.3.1 Distributing a Service

The primary distribution pattern in the printing business is from supplier to agent to consumer. The agent can be an in-house sales person or independent broker.

4.3.2 Competition and Buying Patterns

Printing is generally considered a commodity bought at the lowest price on a bid basis for every job. Service, quality, reputation, and timely production are also factors that effect the final decision to whom the project is awarded.

4.3.3 Main Competitors

Other Print Brokers:

There are numerous print brokers already established. Some of which have been highly successful due to their number of years in the business and established client base. These brokers already have more work than they can handle.

Commercial Printing Companies:

This field is dominated by individually owned print shops that can turn around the work quickly when sold in-house. However, high turnover in employees, especially sales people, makes it hard for them to retain long-term clients.

4.3.4 Business Participants

The printing industry is similar to many others. There are;

  • Large national franchises, such as Minute Man, Sir Speedy and Kinkos.
  • Medium sized commercial printing companies that produce large quantity of full color work, such as 50,000 full color brochures or flyers.
  • Small quick print shops, that are individually owned, that do work such as copy, stationery, business cards, newsletters, etc.
  • Print brokers provide all the above as one-stop-shopping.

The Printing Industries of America, Inc. (PIA) gives some indication of the number of local participants in its PIA 2000 Print Market Atlas . Dallas ranked eighth in the United States with 804 print facilities, 18,009 employees, and producing 2.4 billion pieces of print media per year. According to Printing Manager Online Experts , the printing field is dominated by relatively small, privately owned businesses.

Strategy and Implementation Summary

In order to reach its goal of becoming a successful printing company, R & R Printing will adopt the following strategy:

  • Emphasize expertise, professionalism, and reliability.
  • Build a long-term relationship-oriented business.
  • Provide solutions, service, and quality printing to our clients.

5.1 Strategy Pyramid

R & R Printing’s marketing efforts depend on recognition for expertise, professionalism, and reliability. It starts with our known contacts, recommendations from satisfied clients, and continues with long-term fulfillment of our promises.

We have already developed a database of contacts from previous sales positions. We utilize our database to make regular contact and updates; most of our contact is face-to-face. This keeps our name and reputation in view of the customer as much as possible, so when a print need approaches these consumers choose R & R Printing for their printing needs.

5.2 Sales Strategy

Sales strategy for R & R Printing is simple and straightforward: customer satisfaction. Happy customers will be repeat customers, and they will provide referrals to new customers.

Sales forecast figures are based on Rob Scott’s last five years of performance in this field while employed by another printing company.

Sales projections are detailed in the Sales by Year chart.

5.2.1 Sales Forecast

The important elements of the sales forecast are shown in the Sales Monthly chart and table. We expect a steady fast paced growth during the first year. Sales growth is estimated to grow at an estimated 50% annually through the first three years of operation.

Print broker business plan, strategy and implementation summary chart image

5.3 Value Proposition

Our value proposition has to be different from the standard printing vendor. We offer our clients a vendor who is an ally, who is going to work for them and with them to obtain the product and service they want. Our confidence and ability translates into confidence for the consumer and a starting point towards developing long-term relationships and trust.

5.4 Competitive Edge

Our most important competitive edge is our relationship with our clients as a strategic ally. By building a business based on long-standing relationships with satisfied clients we simultaneously build defenses against competition. The longer the relationship stands, the more we help our clients understand what we offer and why they need it.

5.5 Marketing Strategy

R & R Printing adheres to the theory that the goal of business is to create and keep customers. The marketing strategy will reflect this goal as R & R builds its reputation. Our focus will be:

  • Reliability, expertise, and quality.
  • Building long-term personal relationships with those that make the printing decisions for a company.
  • Establishing face-to-face contact with the client as much as possible.

5.5.1 Distribution Strategy

R & R Printing’s distributing strategy will focus on the the target market in the Dallas area to whom it will sell directly.

5.5.2 Marketing Programs

The most important marketing program for R & R Printing is to get the word out, through a combination of the following:

  • Sending a letter of announcement with enclosed business cards to all existing contacts. Ronda Scott will be responsible with a budget of $1,500 and a milestone date of September 5, 2000. This program is intended to inform them of our services, excite the potential clients about our new endeavor, and create interest in R & R Printing. Achievement should be measured by the number of requests for printing quotes by these individuals.
  • Making personal contact by calling and paying a personal visit to existing contacts. Rob Scott will be responsible with a budget of $600 and a milestone of October 10, 2000. This program is intended to establish personal relationships, and inform the contacts of our services. Achievement should be measured by the number of requests for printing quotes by these individuals.

5.5.3 Positioning Statement

For business professionals who want their printing accurate, on time, with the utmost reliability, R & R Printing is a vendor and ally who ensures high quality printing, fair pricing, and personal service. Unlike other printing vendors, R & R Printing establishes personal long-term relationships, goes to the customer to offer proactive ideas, solutions, services and quality printing.

5.5.4 Pricing Strategy

Much of our pricing is determined by market standards. R & R Printing will attempt to maintain margins of 30% to 35%. We will make every effort to maintain a competitive pricing policy.

5.5.5 Promotion Strategy

During our first few weeks of operation, we plan to mail a personal letter to all of our previous contacts, expressing our excitement of our new company, and offer quality printing and service. We will enclose our business cards in each letter so all contact information is easily accessible. We will also call and go directly to previous contacts in order to emphasize our personal service. We will depend on word of mouth by our satisfied clients, which will always be our most important means of promotion.

5.6 Milestones

The accompanying table lists important program milestones, with dates, responsible parties, and budgets for each. The milestone schedule indicates our emphasis on planning for implementation.

What the table does not show is the commitment behind it. We will hold follow-up meetings every month to discuss accomplishments, variances and course corrections.

Print broker business plan, strategy and implementation summary chart image

Management Summary management summary will include information about who's on your team and why they're the right people for the job, as well as your future hiring plans.">

The initial management team depends on the founders themselves. Our management philosophy is based on responsibility and mutual respect. Our team includes Rob Scott and Ronda Scott. Rob will handle sales responsibilities, and Ronda will handle all administrative tasks.

6.1 Management Team

Rob Scott, owner: 36 years old, B.A. Geology with Business minor, Southwest Texas State. Rob has 10 years experience in direct selling, including five years as sales manager at Montgomery Press. As a printing sales person at Montgomery Press he increased his sales on an average of 45% per year for five consecutive years, this yielded a 640% increase in his overall sales.

Ronda Scott, president: 36 years old, B.S. Biology, Texas Woman’s University. Ronda has seven years experience in sales and service industries.

Donna Elston, accounting consultant. Retired comptroller for Rodger Meier Cadillac. Over 25 years experience in business accounting. Donna will act as consultant and advisor for R & R Printing accounting and administrative needs.

6.2 Personnel Plan

The founder is the sole paid employee.

Financial Plan investor-ready personnel plan .">

R & R Printing’s financial plan is detailed in following sections. Preliminary estimates suggest that we will experience a steady growth in the first year of operation. Income estimates are based, in part, on anticipated revenues from accounts that were secured by Rob Scott in his prior sales position. R & R Printing also anticipates an increase in gross margin and sales volume. Thus, the overall financial plan presents a conservative but realistic depiction of R & R Printing’s financial position.

7.1 Important Assumptions

R & R Printing assumes the following:

  • Market growth projections for the printing industry are accurate.
  • National economic conditions, which are favorable to the printing industry, will not experience significant decline in the next three years.
  • Conditions will remain favorable for service providers and R & R Printing will be able to maintain those relationships.

7.2 Key Financial Indicators

The following chart indicates R & R Printing’s key financial indicators for the first three years of business. R & R Printing anticipates growth in sales with relatively stable operating expenses. Favorable economic conditions and forecasts of continued growth in the printing market support R & R Printing planned financial success.

Print broker business plan, financial plan chart image

7.3 Break-even Analysis

The following table details R & R Printing’s break-even analysis.

Break-even calculations assume a 25% to 30% gross margin. This is a conservative estimate, and it will be improved as strategic relationships develop and the benefits of R & R Printing offerings are realized by customers.

Print broker business plan, financial plan chart image

7.4 Projected Profit and Loss

R & R Printing’s profit picture improves as operations progress into the second quarter of operation. R & R Printing anticipates improving its gross margin from 25% in year one to 30% in year two. Annual estimates of profit and loss are detailed in the following table.

Print broker business plan, financial plan chart image

7.5 Projected Cash Flow

Monthly cash flow is shown in the following illustration. Annual cash flow figures are estimated based on collection days included in the table. Annual cash flow for the first year of operation becomes positive in the second quarter of operation.

Print broker business plan, financial plan chart image

7.6 Projected Balance Sheet

The Projected Balance Sheet is quite solid. We do not project any trouble meeting our debt obligations — as long as we can achieve our specific objectives.

7.7 Business Ratios

The following table details our primary business ratios. Initial analysis indicates that R & R Printing ratios for profitability, risk, and return are financially favorable and will improve greatly in year two of operation. Business ratios for the years of this plan are shown below. Industry profile ratios based on the Standard Industrial Classification (SIC) code 2752, Commercial Printing, Lithographic, are shown for comparison.

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How to write a business plan for your insurance brokerage firm.

business plan for an insurance brokerage firm

Starting an insurance brokerage firm is a great idea because it provides a valuable service to individuals and businesses by helping them to compare and purchase the best insurance coverage for their needs.

Additionally, it can be a lucrative business opportunity due to the high commissions earned on the sale of insurance policies.

But, first thing first, you need to write a business plan.

A business plan is an essential tool for starting a new project, such as an insurance brokerage firm. It provides an outline of the project's goals, objectives, and strategies, and helps to ensure that all stakeholders are on the same page.

In short, a thorough business plan will help make sure your insurance brokerage firm is profitable .

What should you consider when writing a business plan for an insurance brokerage firm? How should it be arranged? What metrics should be considered for the financial assessment? What techniques can I use to make business plan writing easier?

Stay with us: we'll tackle all these questions!

Also, please note that starting your business plan from scratch is optional.

Instead, you can download our professional business plan for an insurance brokerage firm and adjust it to match your preferences.

business plan insurance agent

Creating a business plan for an insurance brokerage firm

Do you need to develop a business plan for your insurance brokerage firm.

Yes, you need to develop a business plan for your insurance brokerage firm.

Developing a robust business plan will enable you to:

  • learn about the insurance brokerage market
  • stay informed about current trends and integrate them into your project
  • pinpoint what makes an insurance brokerage firm profitable
  • understand the insurance coverage needs, risk assessments, and policy preferences of clients
  • come up with a unique value proposition for your insurance agency
  • examine competitor market share
  • find competitive advantages for your insurance brokerage firm
  • find a business model that guarantees a return on investment
  • implement a winning strategy on the short and the long-term
  • assess potential risks involved in operating an insurance brokerage firm, such as policy misinterpretation, legal compliance, and client satisfaction

Our team has created a business plan for an insurance brokerage firm that is designed to make it easier for you to achieve all the elements listed.

How to structure a business plan for an insurance brokerage firm?

A meticulously crafted business plan presents a complete package of content, metrics, and financial information. It should be arranged in a way that makes it simple to read and comprehend.

When we built our business plan for an insurance brokerage firm , we made sure it had a proper structure.

The content is split into 5 sections (Opportunity, Project, Market Research, Strategy and Finances).

1. Market Opportunity

The initial section is named "Market Opportunity."

In this section, you will find essential information and market analysis for insurance brokerage firms, including insurance product offerings, client acquisition strategies, regulatory considerations, and industry trends, guiding entrepreneurs in establishing successful insurance brokerage businesses.

Twice a year, we give this section a makeover to keep the data up to date.

2. Project Presentation

In the "Project" section, you can outline your insurance brokerage firm, describing the range of insurance products you offer (e.g., auto, home, commercial), personalized insurance advice, risk assessment and management, claims assistance, client advocacy, and the unique value proposition that ensures tailored insurance solutions for individuals and businesses.

Remember to introduce yourself at the end of this section.

Explain your background in the insurance industry, your expertise in assessing clients' insurance needs, and how you plan to provide comprehensive insurance solutions. Highlight your access to a wide range of insurance products, your personalized approach to client consultations, and your dedication to ensuring clients' assets and interests are adequately protected through tailored insurance coverage.

We've written some content in our business plan. Adjust it to suit your concept.

3. Market Research

After that, comes the "Market Research" section.

This section provides a description of the target market for your insurance brokerage firm.

It includes an analysis of the competition in the insurance industry and highlights your firm's competitive advantages. A customized SWOT analysis is also included.

4. Strategy

Within the "Strategy" section, a detailed plan spanning three years is outlined, specifying the necessary initiatives to make your insurance brokerage firm highly profitable.

Moreover, you will find a marketing strategy, a risk management approach, and a Business Model Canvas specifically designed for an insurance brokerage firm in this section.

5. Finances

Finally, you'll arrive at the "Finances" section, which showcases the financial metrics and calculations for your project.

business plan insurance brokerage firm

How to make the Executive Summary for an insurance brokerage firm?

The Executive Summary provides an initial glimpse into the business plan of your insurance brokerage firm.

Keep it concise and limited to 2 pages. Include only the essential aspects.

This is the initial statement that investors will read first when you share your business plan with them. It should generate their interest and make them want to read the rest of the plan.

In the Executive Summary of your insurance brokerage firm, provide responses to the following: what types of insurance do you offer as a brokerage firm? who is your target market? are there other insurance brokerage firms in the industry? what is your required funding?

How to do the market analysis for an insurance brokerage firm?

Analyzing the market for your insurance brokerage firm allows you to gain insights into factors such as customer needs for insurance coverage, competition within the insurance industry, and emerging trends in insurance products and services.

By conducting a comprehensive market study, an insurance brokerage firm can understand client needs, provide tailored insurance solutions, optimize pricing strategies, and execute targeted marketing campaigns, ultimately leading to a larger client base, increased policy sales, and a prominent position in the insurance industry.

Here is what what we've put in the "Market Research" section of our business plan for an insurance brokerage firm :

  • fresh and updated data and statistics about insurance brokerage, including insurance market trends, policy types, and customer preferences
  • a list of potential market segments for an insurance brokerage firm
  • the competitive analysis
  • the competitive advantages to target for an insurance brokerage firm

business plan insurance brokerage firm

The key points of the business plan for an insurance brokerage firm

What's the business model of an insurance brokerage firm, business model of an insurance brokerage firm.

An insurance brokerage firm's business model centers around offering insurance products and risk management solutions to individuals or businesses. Revenue is generated through commissions or fees earned from insurance policies sold.

The business model focuses on understanding clients' insurance needs, providing customized insurance solutions, effective marketing to target individuals or businesses seeking insurance coverage, and building strong client relationships based on trust and insurance expertise.

Success depends on industry knowledge and relationships with insurance providers, delivering excellent customer service, fostering positive client reviews and recommendations, and continuously staying updated with insurance products, regulations, and risk management strategies to provide valuable insurance solutions to clients.

Business model vs Business plan

Don't confuse "business plan" with "business model."

A business model is a framework that demonstrates how a company operates profitably and adds value to customers.

In a business plan, you depict your business model by utilizing the Business Model Canvas tool.

Rest assured, there is a Business Model Canvas (already completed) in our business plan for an insurance brokerage firm .

How do you identify the market segments of an insurance brokerage firm?

Market segmentation for your insurance brokerage firm involves dividing your potential clients into different groups based on their insurance needs, coverage requirements, and demographics.

These categories may include factors such as personal insurance, commercial insurance, specialty insurance, or clients seeking specific insurance solutions or expertise (e.g., risk management, employee benefits).

By segmenting your market, you can offer specialized insurance brokerage services and solutions that cater to each segment's specific requirements. For example, you might focus on personal insurance and provide comprehensive coverage options for individuals or families, offer commercial insurance solutions for businesses and organizations, specialize in specialty insurance such as marine insurance or aviation insurance, or focus on specific insurance solutions or expertise such as risk management or employee benefits to accommodate clients with specific insurance needs or coverage requirements.

Market segmentation allows you to effectively target your marketing efforts, communicate the expertise and professionalism of your insurance brokerage firm, and provide independent and customized insurance advice and solutions that meet the unique needs and preferences of each client segment.

In the business plan for an insurance brokerage firm , you will find a comprehensive market segmentation that will help you better understand your potential customers.

How to conduct a competitor analysis for an insurance brokerage firm?

It's evident that you won't be the only insurance brokerage firm in the market. There are other firms assisting clients in finding suitable insurance coverage and policies.

Make sure to conduct a comprehensive competitor analysis to identify and evaluate their strengths and weaknesses when developing your business plan.

Identify their weaknesses (such as limited insurance carrier partnerships, poor customer service, or inadequate claims handling).

Why is it important to address these factors? Because these weaknesses can impact client satisfaction when utilizing insurance brokerage services.

By focusing on these areas, you can provide personalized insurance solutions, offer expert advice and guidance, and deliver excellent customer support, positioning your insurance brokerage firm as a trusted and valued partner for individuals and businesses seeking insurance coverage.

It's what we call competitive advantages. You have to build them, it will help make your business stand out.

Here are some examples of competitive advantages for an insurance brokerage firm: wide range of insurance options, personalized insurance advice and planning, strong relationships with insurance providers, comprehensive coverage solutions, efficient claims processing, exceptional customer service and support, positive client testimonials.

How to draft a SWOT analysis for an insurance agent?

A SWOT analysis can help identify strengths, weaknesses, opportunities, and threats in order to develop an effective strategy for starting an insurance brokerage firm.

As you can guess, there is indeed a completed and editable SWOT matrix in our business plan for an insurance brokerage firm

The strengths for an insurance brokerage firm

When we mention the "S" in SWOT, we mean Strengths, which are the project's positive attributes or capabilities.

For an insurance brokerage firm, possible strengths include comprehensive product knowledge, strong customer service, reliable risk management advice, and competitive pricing.

The weaknesses for an insurance brokerage firm

The letter "W" signifies Weaknesses, which are the weak points of the project that need to be addressed.

For an insurance brokerage firm, potential weaknesses could include inadequate cybersecurity measures, lack of customer service training, limited product offerings, and inadequate capital reserves.

The opportunities for an insurance brokerage firm

The letter "O" in SWOT stands for Opportunities, signifying the potential advantages or favorable conditions for the project.

In the case of an insurance brokerage firm, potential opportunities could include offering specialized insurance policies, expanding into new markets, leveraging technology to improve customer service, and developing unique product offerings.

The threats for an insurance brokerage firm

T stands for Threats in SWOT, indicating the external factors that can hinder or negatively affect the project.

How to outline a marketing strategy for an insurance agent?

A marketing strategy is an important part of a business plan as it outlines how a business will attract customers and drive revenue.

An insurance brokerage firm can connect with individuals and businesses in need of comprehensive insurance coverage by implementing a targeted marketing plan that highlights the firm's industry expertise, personalized services, and competitive rates.

Clients won't choose your insurance agent without proper promotion; emphasizing your knowledge, personalized service, and competitive rates is necessary.

Have you explored marketing approaches to attract clients to your insurance brokerage firm? Consider offering personalized insurance consultations, leveraging social media platforms to educate clients about different insurance options, and partnering with local businesses or associations for referrals.

Don't let a lack of ideas for your project's marketing strategy discourage you.

How to build a solid financial plan for an insurance agent?

A successful business plan must include detailed financial information, such as income and expense projections, cash flow statements, and a break-even analysis.

When constructing your business plan, it is crucial to incorporate revenue projections for your insurance brokerage firm.

We need to make sure that this revenue forecast makes sense to everyone.

Our financial plan for an insurance brokerage firm is user-friendly, providing automated validations that allow you to rectify any assumptions swiftly. This guarantees the creation of credible projections with ease and assurance.

No doubt, you'll have to establish an initial budget for launching your insurance brokerage firm. Pay attention to every expense and don't leave any out (our financial plan includes a complete list for your convenience).

Including the break-even analysis in your financial plan is important as it shows whether your insurance brokerage firm will generate profits or not.

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I'm a financial planner — I have 4 tips for my business owner clients looking to open a business bank account

Our experts choose the best products and services to help make smart decisions with your money ( here's how ). In some cases, we receive a commission from our partners ; however, our opinions are our own. Terms apply to offers listed on this page.

  • Legally protecting yourself in case of an audit is the No. 1 reason to use a business bank account.
  • Different banks will offer different levels of convenience, and they'll come with different fees.
  • Fraud detection and other security features are especially important for protecting your business.

Insider Today

When starting a business, it can be overwhelming thinking about all the things you need to do and consider. However, it is essential that you do not overlook the value of opening a business bank account — usually both a business checking account and a high-yield business savings account .

As a CPA and financial planner, one of the first things I tell all my business owner clients to do is to keep their personal and business transactions separate. While there are a multitude of reasons you should have a separate bank account for your business, legal protection is certainly the most important.

If you experience an audit, it is important to have an easy way to track your business expenses and income. When business finances are commingled with personal finances, it becomes nearly impossible to provide a clear financial trail.

When choosing a business bank account, there are several important factors to consider. Here are four things I tell my business owner clients to consider when choosing a business bank account.

1. Access to banking services and customer service

When it comes to running a business, a variety of banking services can help you effectively manage your business finances. Beyond just opening a business bank account, you want to ensure that the financial institution you choose can provide access to services such as a checking account, savings account, business loans , wire transfers, fraud prevention services, a notary, checkbooks, business credit cards , online and mobile banking, and bill payment services.

If you want more one-on-one attention from a banker, consider opening an account with your local bank or credit union. You may also prefer a physical branch if you plan to make daily deposits or withdrawals of cash or checks.

This may be more challenging to do with an online bank. Many online banks may offer deposits and withdrawals, but their ATM network may not be as large as a well-known brick-and-mortar bank. For this reason, some small business owners open an account at their local bank where they have their personal accounts and know the level of customer service they will receive.

Consider opening your business checking and savings accounts at different financial institutions so that you can have access to both better banking services at a physical branch and higher interest rates at an online bank.

2. Terms and fees (including minimum balance)

The fees associated with business bank accounts can vary widely depending on the financial institution. Some of the most common fees to be aware of include monthly maintenance fees, overdraft fees , wire transfer fees, minimum balance fees, and ATM fees.

You may find that online banks charge fewer fees than brick-and-mortar banks, but you must consider this in conjunction with the other features.

Seek an account with reasonable fees that can accommodate your business.

3. Ease of paying contractors

Some business bank accounts, especially online accounts, offer free invoicing and bookkeeping software/features.

If you use accounting software (such as QuickBooks) to manage your business finances, accessing a business bank account that offers integration features may be desirable. Trust me, this will make your or your accountant's life much easier.

In addition, some accounts allow integrations with payroll and tax preparation software. This will help to make the process of paying contractors with 1099s more seamless.

4. The bank's security offerings

One of the most important things you should consider when choosing a business bank account is security. There are certain features that you want to look for to make sure your account is protected.

First, you want to make sure that the bank you choose is FDIC-insured (or NCUA-insured if a credit union). In addition, you want to make sure that the institution has additional layers of security such as multi-factor authentication and fraud detection services, which include account monitoring and alerts for suspicious activity.

Ensure that whatever bank you choose offers the best security features to protect your business from fraud.

When choosing a bank account, consider all the various banking features offered by different financial institutions to find the one that best suits your business's financial needs. Also, remember that your decision is not permanent. It is easy to switch banks if necessary.

Watch: The 3 most important things you need to know about starting a business

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    A business plan will help you secure funding, if needed, and plan out the growth of your mortgage broker business in order to improve your chances of success. Your business plan is a living document that should be updated annually as your company grows and changes.

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    1.1 Objectives Claremont Funding aims to offer comprehensive mortgage broker services. Claremont Funding will focus on providing personal and specialized services to meet each client's specific needs. The primary objectives of our firm are:

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    2. File the Articles of Organization: The articles of organization is a simple document that legitimizes your LLC and includes information like your business name, address, and the names of its members. For most states, you file with the Secretary of State.

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    A Guide to Developing Business Strategy for Financial Brokers Page 03 Financial Broker Creating your success through Financial Planning Eamonn Twomey established StepChange, a marketing and strategy solutions business for Financial Brokers, in 2011. For the previous 27 years, Eamonn worked in a variety of senior sales and marketing roles in the ...

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    A mortgage broker business is based on arranging transactions between the buyer and banks or real estate firms, on easy installments and down payments after taking a mortgage, debt property. The business is in great demand, as this is the only way for average or low-income people to have a property or vehicle of their own in big cities.

  18. TheFinanceResource.com

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