Are you about writing a business plan to start a financial service business? If YES, here are 100+ sample financial service business plans & templates for FREE download.
Financial services can be known as a compendium of the economic services that are provided by the finance industry. These services encompass a broad range of businesses that manage money, including credit unions, banks, credit-card companies, insurance companies, accountancy companies, consumer-finance companies, stock brokerages, investment funds, individual managers and some government-sponsored enterprises.
Financial services embrace a broad spectrum of services and these services permeate every other business sector. The versatility of financial services means that this sector is never in want for clients or customers. Though it is quite capital intensive to start most businesses in this sector, but there are also businesses in this institution that would cost you next to nothing to start, something like an accounting or bookkeeping service.
If you have a solid background in the financial services industry, then you are already half way to starting a profitable business. We have helped you with a list of profitable businesses you can start in the financial services industry.
100+ Sample Financial Service Business Plans & Templates
If you are a big time investor looking for ways to expand your investment portfolio, then you should consider starting a hedge fund business. Hedge funds can be defined as a regulated investment fund that is usually open to a limited range of investors who pay a performance fee to the fund’s investment manager who invests the funds and bring returns.
When running a hedge fund business, the easiest way for you to make money is to help your clients make more money. The income you will generate for your business will be based on your performance and economic savviness.
An insurance company is a business that provides coverage, in the form of compensation resulting from loss, damages, injury, treatment or hardship in exchange for premium payments. The job of selling insurance may not be so appealing, but the fact remains that the business is quite profitable. Whether you’re a pure life insurance agent or a property and casualty, insurance agents can make very good money.
To get licensed, you just have to take some basic tests that will cost you a couple of hundred bucks. Getting approved for property and casualty can be tough, especially depending on your geographic location. But if you think you like insurance and you want to help people, it’s definitely a good profession and an awesome small business idea that you can pursue.
One of the options you have if you want to start a business in the financial service industry is to open a bank. Banking is an industry that handles cash, credit, and other financial transactions. Banks provide a safe place to store extra cash and credit.
They offer savings accounts, certificates of deposit, and checking accounts. If you have the capital requirement and of course the qualifications, then you should by all means approach the central bank of your country, and request for the requirements to start a bank. But know that this is a heavy investment that might not be suitable for just one investor.
An investment club is a group of people who pool their money to make investments. Usually, investment clubs are organized as partnerships and after the members study different investments, the group decides to buy or sell based on a majority vote of the members.
People are lazy when it comes to investment, that’s a fact. Though they want to invest, but they really do not want to be bothered with the hassles of investment. So, if you are looking to start a trade in the finance related industry, then one of your options is to start an investment club, to help people to get round to making that investment.
A pawn shop offers secured loans to people when they use items of their personal property as collateral. People usually see pawn shops as a ‘saving grace’ in the time of need, so both the rich and poor all pay a visit to the pawn shop. If a loan is not paid within the agreed period, the item that was pawned will be put up for sale by the pawnbroker. If you know your way around in the industry, this can be a profitable business to start.
Bookkeeping is all about recording of financial transactions especially in businesses. It is part of the process of financial accounting. The basic transactions that bookkeepers keep for businesses include purchases, sales, receipts, and payments by an individual person or an organization/corporation. If you are a registered accountant, one small but profitable business you can start in the financial services industry is a bookkeeping service. It costs you nothing to start, but pays you good income.
There are people who are specialized in collecting bad debts; yes, this is an art. If you are one of these, then it would not cost you much to set up a debt collection agency. You can be sure that a lot of businesses would be willing to hire your services if you have a reputation of collecting on debts. In this type of business, you make money by earning commission or a percentage from the debts you are able to recover. In essence, if you are able to negotiate better, you will earn more.
Tax preparation is the process of preparing tax returns, often income tax returns and generally for compensation. Tax preparation may be done by the taxpayer with or without the help of tax preparation software and online services.
Every country has its own set of laws governing the payment of tax, and these laws are often administered very strictly. Quite a lot of individuals and small businesses are still confused about their tax issues. You can set up a small business to help people sort out these issues.
9. Credit Repair Business Plan
Credit repair is the process of fixing poor credit standing that may have deteriorated for a variety of different reasons. A credit repair business has unlimited profit potentials and a very low startup cost. This industry identifies errors in credit reporting and disputes inaccurate information with the appropriate organizations to improve credit ratings. These services are typically undertaken on behalf of a client who has known credit problems, such as a recent bankruptcy.
10. Insurance Agency Business Plan
Insurance is one of those industries that is largely untroubled by the state of the economy. The reason for this is that most insurance products are a necessary part of modern life. You can’t own a car without automobile insurance, and while your mortgage company may not require that you have homeowners insurance, would you really consider leaving the single biggest investment of your life unprotected?
Industry participants earn commission income, mostly as a percentage of the premium of insurance policies sold. They also earn some fee for providing risk management consulting and other value-added services.
11. Private Equity Fund Business Plan
Private equity firms make use of their available funds or raise funds from investors with the aim of investing the fund in under-performing companies with potentials, with the aim or re-positioning the companies to start making profits. Starting this type of business does not only require huge startup capital base, but also relevant experience in the industry. But if you are able to revive and sell companies, you would be making good profits.
12. Credit Card Processing Business Plan
A credit card processing company helps businesses to process payments made by their customers. To start a credit card processing business, you will need to supply your clients with the necessary gadgets with which they would process payments.
As an aspiring entrepreneur with vast experience in the financial industry, one of the related business opportunities you can leverage on is to start a credit card processing business. Although you need hands-on experience with a good track record to be able to attract well-paying clients, but that does not stop you from still making headway in the business.
13. Investment Bank Business Plan
Starting an investment bank is yet another highly thriving and profitable business venture in the financial services industry which an investor who intends to start a business should consider. If you have the capital requirement and of course the qualifications, then you should by all means approach the central bank of your country and request for the requirements needed to start an investment bank. Once you are able to meet the requirements you will be issued a license to start your own investment bank.
14. Micro Lending Business Plan
Micro money lending are small loans that are given by individuals rather than banks or other related financial institutions. These loans can be given by a single person or gathered across a number of persons who each contribute a portion of the total amount.
Micro money lenders basically give out loans of $50,000 or less to startups and other small scale businesses or individuals. Due to the fact that the credit status of these borrowers may be quite low and the risk of default high, micro loans command above the average market interest rate making them attractive for investors to come in.
15. Merchant Cash Advance Business Plan
Cash advance business is a business that involves giving out quick loans to people who can’t approach the bank because they don’t have the required collateral or those who need the money urgently and can’t wait for the full circle of processing loans from the bank.
Of course, the interest rate for cash advance varies, but it is often higher than what one can get from the bank because of the risk involved in this type of business. No doubt starting a cash advance business requires a huge start-up capital, but the fact remains that it is a profitable venture.
16. Money Transfer Business Plan
Money transfer from one person’s account to another account was formerly the sole duty of banks; nowadays private individuals are setting up money transfer businesses. There are some licenses you need to obtain to run a money transfer business, and you would also be required to register for money services business license. A money transfer business is a very capital intensive business and you are required by law to have a certain capital base and mutual bond before you can set up shop.
Firms that operate in the Payday Loan industry offer payday loans, installment loans and other related financial services. They may also cash checks, drafts or money orders for the general public. The Payday Loan industry is quite large and is still growing because most workers always need pay top-up to augment their monthly pay. A recent report released by IBISWORLD shows that the Payday Loan and Check Cashing Services industry has relatively low barriers of entry, particularly when compared to other financial services industries.
18. Mortgage Brokerage Business Plan
Mortgage Brokerage firms are established with the sole aim of providing a convenient platform in the form of long term loan to those who want to buy their own property. Mortgage Brokerage firms stand as the middle men between a Bank and Mortgage bank, as the case may be, and the individual or organization seeking to buy a property. Anybody, or group of investors may start and own a mortgage brokerage firm as long as they meet the requirements for establishing such organization in the country they intend establishing the business.
19. Micro Finance Business Plan
Microfinance is a category of financial services targeted at individuals and small businesses who lack access to conventional banking and related services. Microfinance includes microcredit, the provision of small loans to poor clients; savings and checking accounts; microinsurance; and payment systems. This is yet another profitable lending business you can start in the financial services industry.
An ATM business is a business where a company owns and operates a network of ATMs. They would negotiate with stores to have their ATMs mounted on their premises, they would pay the store a fee or share the profits with the store.
The advent of the ATM has indeed made available business opportunities for entrepreneurs. One of the finance services business that an entrepreneur can successfully launch is an ATM installation and maintenance business. Please note that you would require technical/engineering training before you can start this type of business.
21. Venture Capital Firm Business Plan
Venture capital is a type of private equity, a form of financing that is provided by firms or funds to small, early-stage, emerging firms that are deemed to have high growth potential, or which have demonstrated high growth. Starting a venture capital firm may not be as easy as most people think, but you can rest assured that with the right information and qualifications, you can successfully establish your own venture capital firm and position it to start making profits within a short time.
A Bail bond business helps alleged criminals stay out of jail while fighting their criminal charges. After being arrested, a person may be given the option of posting bail (pay a set amount of money to the court) in order to be released prior to their trial.
The person, most times, may not have the money to pay for the bail. That is where the services of a professional bail bond business come in. For a fee, usually ten per cent (10%) of the total bail amount; a bail bondsman will secure a person’s pre-trial release. Bail bonding is a booming business, collecting $2.5 billion in fees in 2006 alone, according to Seattle PI.
23. Bitcoin Mining Business Plan
Bitcoin is a digital currency that operates independently of any country’s central bank. In order to get an updated value of the worth of a bitcoin, you can make use of Google’s currency converter. If you are interested in mining bitcoin, then you have two options to follow. You can choose to mine a block of bitcoins from the computer or you can choose to pool.
If you want quick returns on your investment, then joining a pool is your best option because mining a block of bitcoins from your computer may take you a month or more before you get any return on your investment. But note that if you join a pool, you will only get smaller payments, but you can be rest assured that you will get them on regular basis.
A fundraising business is the type of business that you can start at home or in a small office. A fundraising business owner may work to plan special fundraising event, call on donors and help guide its clients with its marketing efforts to promote their cause.
A fundraising business requires great oral and written skills. It is important to find a niche in the business as there are a lot of noble organizations and associations that require funds to be raised for them. Starting this business would require an experience of some sort because of the so many skills involved in raising funds.
25. Prepaid Credit Card Business Plan
The Prepaid Credit and Debit Card Providers industry is made up of companies that issue preloaded, open-loop credit and debit cards to consumers for making purchases. It is important to state that a prepaid credit card company is a highly risky venture because you stand the chance of getting your money trapped in the business when borrowers are not able to pay you back.
26. Bureau de Change Business Plan
Starting a bureau de change is yet another thriving and profitable business venture that an entrepreneur who is interested in starting a business in the finance services industry should consider. A bureau de change is a place where people change currencies. If you are setting up a bureau de change, ensure that you choose a location inside an airport or somewhere close to an airport; bureau de change business thrives in such areas.
27. Financial Coaching Business Plan
If you are already in the financial industry or you have a degree or background in finance, then you can build a career as a certified financial advisor or coach by establishing a financial coaching firm. Financial coaching firm is under the financial planning & advice industry and establishments in this industry provide financial planning, advice and wealth management to individuals and business clients. Financial coaches also offer other activities such as portfolio management, protection planning and brokerage services.
28. Financial Advisory Business Plan
A certified financial advisor is a professional whose core job is to help his or her clients make decisions that revolve around their finances, investment, tax, debt, and insurance concerns. Financial advisors meet with their clients to determine their financial goals and help them create a financial plan that they can follow to reach the said goals.
If you are already in the financial industry or you have a degree or background in finance, then you can build a career as a certified financial advisor or start your financial advisor business by buying the franchise of a successful financial advisor firm in the United States of America.
29. Accounting Firm Business Plan
Accounting firms audit the accounting records of public and private organizations. The accounting services industry is open to as many entrepreneurs that are interested in the industry as long as they have the necessary knowledge to run an accounting firm.
Even if you don’t have the finance and other requirements to start this business, you can come into the industry by starting out as a small accounting firm servicing mom and pop businesses in your neighborhood.
30. Private Wealth Management Business Plan
If you are interested in managing wealth for clients and you have some form of financial expertise and certifications, one of the businesses that you can conveniently start is a wealth management firm. Starting a wealth management firm requires moderate startup capital and it can be considered to be a very profitable venture especially if you are good at discovering investment opportunities with good returns on investments.
As a wealth management firm, your responsibility is to manage wealth and portfolios for your clients; you are to manage assets for investment vehicles such as mutual funds, hedge funds and insurance products et al.
31. Check Cashing Business Plan
Firms that operate in the Check Cashing industry cash checks, drafts or money orders for the general public. Firms in this industry may also offer payday loans, installment loans and other related financial services. A recent report released by IBISWORLD shows that the Check Cashing industry has relatively low barriers to entry, particularly when compared to other financial services industries. According to Cash America, a new retail location can be ready for business within four to eight weeks after the location and appropriate licenses have been secured.
32. Loan Officer Business Plan
If you live in the United States of America, you will agree that loads of entrepreneurs are making money from offering loan services. Loan officers are part of the Loan Brokers industry and this industry is composed of establishments that arrange loans, especially mortgages, by bringing borrowers and lenders together on a commission or fee basis.
The industry has loads of small business operators servicing a wide range of clients. The next five years are expected to be positive for the Loan Brokers industry as the general economy is expected to grow. The nature of the Loan Brokers industry gives room for it to perform well during recession. This is because, as consumers struggle during difficult economic times, they use industry services to access loans.
33. Investment Advisory Business Plan
An investment advisor is any person or group that makes investment recommendations or conducts securities analysis in return for a fee, whether through direct management of clients’ assets or by way of written publications. Investment advisers manage money.
They select financial assets—like stocks, bonds, and mutual funds—and then buy, sell, and monitor them within your account in keeping with your investment goals. You can start an investment advisory business if you are investment savvy.
34. Fintech Startup Business Plan
Financial technology, also known as fintech, is an economic industry composed of companies that use technology to make financial services more efficient. Starting a fintech business can be rewarding but you would have to compete with other well – established fintech companies on the Web. The fact that you will be competing with people from all over the globe is enough reason for you to be result oriented and at the same time be creative with your fintech business.