Do you want to start a private banking service and need to write a plan? If YES, here is a sample private banking business plan template & feasibility report.
Whether you have decided to enter the financial markets directly as part of your integral business plan, are a smaller private financial institution that has outgrown your licensing boundaries, or are experiencing operational inefficiencies or restrictions with your current financial license, you are likely wondering how to move forward and start a private bank.
Table of Content
- Why Set Up a Private Banking Service?
- 1. Industry Overview
- 2. Executive Summary
- 3. Our Products and Services
- 4. Our Mission and Vision Statement
- 5. Job Roles and Responsibilities
- 6. SWOT Analysis
- 7. MARKET ANALYSIS
- 8. Our Target Market
- 9. SALES AND MARKETING STRATEGY
- 10. Sales Forecast
- 11. Publicity and Advertising Strategy
- 12. Our Pricing Strategy
- 13. Startup Expenditure (Budget)
- 14. Sustainability and Expansion Strategy
Why Set Up a Private Banking Service?
When you start a bank, your financial company will have an almost limitless array of possibilities to take advantage of. Financial companies in different situations (including FX, wealth managers, family offices, IB, M&As, FAs, IAs, payment processors, or fund managers) will at some point in their lifecycles find it necessary or desirable to grow beyond their current licensing limitations.
For many such businesses, the natural way to move forward is to obtain or apply for a bank license or register a new private bank from the ground up. Private Banks raise capital through a private stock offering to accredited individuals who meet onerous financial requirements related to their net worth and annual income.
Although privately-held bank stock is not publicly traded, there often is a healthy secondary market for it, engineered by boutique investment banks that focus on small bank stocks and even new hedge funds that invest in de novo banks.
Private Banks earn high returns on assets and equity, and typically are managed conservatively by executives with strong ties to the business community. A small number of non-accredited investors, usually people with personal relationships with insiders, are allowed to participate in the stock offering as well.
The apex control for private banks are the Board of Directors, who appoint the bank’s executive management and oversee the regulatory compliance function. Note that this requires monitoring capital adequacy levels and ensuring the bank never deviate from the FDIC-approved business plan.
If the bank’s directors want to make changes to the bank’s funding structure or expand lending activities, prior approval must be obtained from the FDIC. Regulators typically require that de novo banks exceed capital requirements, understanding that it often takes roughly three years for new banks to achieve profitability.
In the united states, Deposit Insurance Corporation membership is mandated for all banks, and all FDIC requirements must be attained before the new bank commences operations. The Interagency Charter and Federal Deposit Insurance Application must be filled, submitted and shared by the FDIC with all relevant regulatory bodies.
Coupled with the application, the applying bank must submit a mission statement, a business plan containing three years of projected financial statements, and policy descriptions for loans, investments and other bank operations. Note that completing these requirements can take hundreds of hours, and often requires engaging financial consultants.
A Sample Private Banking Business Plan Template
1. Industry Overview
In recent years, private banks have experienced a period of growth. For many universal banks, the segment has therefore become undeniably crucial. At the same time, a closer analysis of financial results and the major drivers of sector performance points to some fundamental challenges in growing the top line.
Nevertheless, few banks have outperformed the competition and offer some best practice examples. According to reports, any growth in assets under management (AuM) generated by private banks over the last three years has mostly been driven by favourable market performance rather than new business.
Of the 6.2 percent average compound annual growth rate (CAGR) between 2015 and 2018, 4.0 percent was accredited to an increase in asset value. Simply put, only approximately one third of AuM growth was self-generated. Much of this self-generated growth has been achieved inorganically, and this is certainly true for three out of the top five performing banks.
In Europe, Switzerland and North America, mergers and acquisitions (M&A) activity contributed to double-digit growth for a number of banks. Chinese private banks have been an exception to this pattern. In their case, unprecedented rates of wealth creation made organic growth possible.
According to reports, the wealth of Chinese billionaires increased by 39 percent in 2017 alone, with two new billionaires created each week. Even with the favourable market performance, many banks were not able to maintain their revenue margins.
What stood in their way were pressure from low interest rates, stricter regulation leading to the elimination of certain revenue streams and a drive for greater price transparency, and a changing portfolio composition with more assets falling into higher wealth buckets (with lower revenue margins).
North American banks lead the way on revenue margin, and are even able to capture double the revenue of Swiss and European banks on their AuM. Their success can be mostly put down to higher interest rates, more transactions and higher absolute price levels. Highly capitalized and growing US and Canadian banks may put additional pressure on Swiss and European competition if they continue to pursue international expansion in the region.
2. Executive Summary
Octagon Private Bank (OPB) prides itself as being one of the most customer focused private banks in New York City. With our luxurious atmosphere and high standards of service, our Private Banking experience is unsurpassed. Each client is treated as a prestigious partner with the utmost respect and concern.
We always strive to ensure the bank’s comprehensive financial and investment services are carefully crafted and put into effect for our client’s unique needs. Our selection of diversified investment in both broad and specialised markets enables us to manage private investors with the same proficiency available to large pension funds and corporate investors.
We also help private clients create a plan that optimises the use of their money by advising them on a selected number of products and help them get where they are going faster. Although some clients prefer to make their own investment decisions; others are more comfortable receiving professional guidance. Whichever approach they prefer, we at Octagon Private Bank (OPB) are here to help.
At OPB we will offer investment packages, underwriting, proprietary trading, and investment management for our clients. New York City is beneficial for several industries. Relatively low energy cost, accessible resources, north–south and east–west Interstates, international air terminals, and both west coast intercontinental railroads are all economic advantages.
OPB will be formed as a Limited Liability Company with the sole purpose of serving our clients excellently. Once we land a client, their own financial and investment aspirations, preferences and needs are effectively in control and will be the focus of the bank’s assigned and highly dedicated Associate.
Private banking at OPB is a secure haven, where clients’ dreams and ambitions set the target, their special needs decide the right tailored solutions and their financial status dictates the most appropriate financial planning leading to their targets.
To secure a financial future for our clients and their family, OPB will offer financial advice on a broad range of issues affecting the way the client live at the present and the way they want to live in the future. Clients with substantial wealth often have unique and sometimes complex borrowing needs ranging from basic credit to more sophisticated tax-optimisation strategies.
The Bank Associate coupled with a bank designated Analyst will guide our client to the solutions that best fit their needs by offering completely versatile credit products like specially structured finance with privileged terms and conditions.
3. Our Products and Services
At OPB, our services are designed for high net worth individuals and families. We offer clients professional guidance to protect and enhance their wealth. We provide them with tailored, unbiased advice and investment services – ranging from asset management to estate planning and from cash management to business planning.
It is the nature of things that with more wealth accumulated, more options, obstacles, and challenges are faced. As multiple factors are incorporated from agents to advisors, there is a need for a cohesive force to bring it all together. OPB can greatly simplify the management of client’s complex finances.
Leveraging a team of experts, we provide an objective and holistic analysis of our client’s personal financial situation that is tailored to help them grow and preserve their wealth. Octagon Private Bank will be set in a way to offer a personally tailored solution in five key areas of wealth management:
- Investment planning and asset management
- Wealth protection
- Credit planning and management
- Cash management
- Business planning (Private business owner)
4. Our Mission and Vision Statement
- At OPB, our vision is to grow into a large investment and private bank that that will provide investment advices, wealth protection, dividend income, asset and cash management, and interest income to our clients.
- Our mission at OPB is to ensure that investment decisions are implemented quickly and efficiently across all portfolios.
- To also make sure a trading research and rotation is used to avoid any type of systematic advantage or disadvantage an account may experience.
Our Business Structure
From our detailed research, we understood that for a new bank charter to be approved for us, all our senior management team are expected to have substantial experience in the banking industry.
Howbeit, all members of OPB board of directors are individuals with successful careers in a mix of business, banking, and other fields, and have representation in the necessary disciplines for the board to meet its responsibilities. We also understand the role of the board and management as investors in the bank and how important they are.
Regulators and other investors will look to the investment of these directors and senior officers as an important sign of their commitment to the bank. Knowing that a typical private bank is operated in a rigid way, more than most corporate or financial institutions, we have decided to start with the listed workforce.
- Managing director
- Senior vice president
- Vice president
- Bank Associate
- Bank Analyst
- Marketing manager
- Security man
5. Job Roles and Responsibilities
- Broaden and/or enhance the bank’s industry coverage
- Partner with the leadership to grow and build the bank
- Tirelessly work to deliver superior results to the bank’s clients
- Participate as a key member of the senior leadership team, contributing to the strategy, growth and success of the bank
- Lead efforts on sell-side and buy-side acquisition assignments, refinancing, recapitalization and restructuring assignments
- Interact seamlessly with prospects, clients, acquirers, investors and attorneys on all aspects of a M&A deal and/or capital raise
- Direct a team of junior bankers to support all elements of deal sourcing and execution
Senior Vice president
- Involved in executing and managing the actions in equity offerings that will include the drafting and structuring of material, logistics management, issue identification, its analysis and the resolution.
- Responsible for mergers and acquisitions and manages the creation of buyers list, their contacts, drafting the relevant material, financial analysis and management and is involved in private equity placement.
- Researches and identify deal opportunities by formulating and issuing factual financial analyses and creating different kinds of financial plans.
- Involved in pitching or selling the organization’s products and services to the new clients and may be involved in other projects as well.
- May participate in due diligence meetings with non-proprietary or proprietary investment managers and create relevant call reports that include their opinions.
- May be involved in analysing the investment products and screening them by making effective use of a variety of investment data and the relevant software applications
- Monitors the investment products and their performance.
- Analyses the relevant statistics to evaluate the appropriateness of the product.
- Manages relationships with the investment management organizations and regularly gets him/her updated by getting valuable information from them.
- Responsible for providing leadership and overseeing the work of subordinate members.
- Call on prospective clients such as privately held business owners, publicly traded companies and private equity banks.
- Conceptualize, organize and deliver new business presentations.
- Lead transaction implementation across industry groups.
- Manage, educate and develop private banking analysts and associates.
- Develop marketing and new business presentations.
- Monitor financial analysis and modelling.
- Perform and analyse industry research.
- Create client presentations, proposals, engagement letters term sheets, legal agreements and offer memorandums.
- Coordinate internal resources and train and develop junior resources.
- Create and foster client relationships.
- Managing and assisting in the preparation of financial models and business valuations
- Creating client marketing presentations
- Attending client meetings
- Conducting industry and company-specific due diligence related to transactions
- Drafting memoranda for sale assignments
- Assisting in the preparation of fairness opinions
- Attending drafting sessions for equity offerings
- Creating marketing materials for our equity sales organization
- Assisting in the development and continued cultivation of client relationships
- Developing an understanding of the underlying trends that affect equity capital markets
- Gaining an understanding of the interests and investment criteria of a number of middle-market private equity banks
- Development of various types of financial models to value debt and equity for mergers, acquisitions, and capital raising transactions.
- Perform various valuation methods: comparable companies, precedents, and DCF.
- Develop recommendations for product offerings, private equity transactions, mergers and acquisitions, and valuations.
- Conduct preparation and review of materials used in the financing of clients, including investment memoranda, management presentations and pitch books.
- Develop relationships with new and existing clients in order to expand the business.
- Perform due diligence, research, analysis, and documentation of live transactions.
- Create presentations for client portfolios.
- Affinity for current events, critical issues, and relevant news.
Sales and Marketing director
- In charge of organising external research and coordinating all the internal sources of information to retain the organizations’ best customers and attract new ones
- In charge of creating demographic information and analysing the volumes of transactional data generated by customer purchases
- Expected to understand, prioritizes, and reaches out to new partners, and business opportunities et al
- Tasked with understanding development opportunities; follows up on development leads and contacts
- Keep all customer contact and information
- Represents the company in strategic meetings
- Aid to increase sales and growth for the business
- In charge of the cleaning of all OPB floors
- Keep note and make sure the toiletries and supplies don’t run out of stock
- Ensures that both the interior and exterior of the bank are always clean
- Handles any other duty as assigned by the Vice president
- The security guard is in charge of protecting the bank and it’s environs
- Also controls traffic and organize parking
- Tasked with giving security tips when necessary
- Should also Patrol around the building on a 24 hours basis
- It’s expected to give security reports weekly
6. SWOT Analysis
OPB is a family of caring partners, experts and friends our clients can trust. We believe we can only consolidate this trust through managing, growing and protecting our clients wealth in a strategic way. We have analysed our market and put together a strategic plan to ensure our bank’s success.
We believe that this plan put into consideration our opportunities, our financial and managerial resources, our prospect for success, the convenience and needs of the public, and the effect of competition on OPB. This strong business and strategic plan supported by detailed financial projections and appropriate policies and procedures form the basis of successful regulatory applications for a private bank charter.
We at OPB hope to establish a lucrative private bank that will help its clients manage and grow wealth while also ensuring profits for our investors. We took time to conduct a detailed SWOT analysis for OPB. The details and results are explained below.
At OPB, our strength rests on the expertise and experience of our management team. With the experience and discipline of our team, our SWOT analysis predict we can build a robust profile even before biding for investment, banking, and securities dealings with high net worth individuals.
As the private banking industry expands and grows in revenue and market reach, so does the level of competition in the industry. Due to the very low barriers to entry, any individual or business may register itself as an investment private bank after meeting the necessary financial requirements and basic paperwork.
The private banking sector has become one of the fastest growing business sectors in the U.S. economy. Note that computerized technologies allow financial banks to operate advisory, investment banking, and brokerage services anywhere in the country.
In time past, most financial banks needed to be within a close proximity to Wall Street in order to provide their clients the highest level of service. This is no longer the case as a bank can access almost every facet of the financial markets through Internet connections and specialized trading and investment management software.
According to our SWOT analysis, the risks we will be facing include the high correlation which exists between the growth rate of the investment industry and the performance of equity markets. While evidence suggests an attractive environment for equities in the future, no forecasts can be made with absolute certainty.
Secondly, our products are measured by their performance. Although the goal is to achieve competitive performance over three to five-year time periods, short-term periods may result in underperformance based on the critical measures.
Also, beyond the third full year of operations, assets under management must produce revenues that will be sufficient to support operations in their entirety. Otherwise our options will be to acquire additional funding or to reduce costs.
7. MARKET ANALYSIS
- Market Trend
According to industry experts, wealth management and private banking players will need to adapt to a new competitive landscape, as the industry has journeyed into an unprecedented era of transparency.
Constant scrutiny from tax authorities—at a global level—has been at the origin of a significant client re-domiciliation trend, which in turn, has urged Wealth Management firms and Private Banks, notably from international wealth management centres, to follow their clients to their home countries. In parallel, a series of substantial evolutions in the cross-border environment has rocked the industry to its foundations.
Indeed, political tension has been intensifying in some regions of the world and new client types, of a more global and mobile nature, have emerged. These phenomena have led to a rise in asset volumes in cross-border markets. On top of that, in a context of fierce domestic competition, onshore players are looking for new customers in foreign markets.
Concurrently, the industry has experienced a regulatory avalanche over the last few years. Many new restrictions have been implemented, ranging from the marketing of products and services, to customer protection, distance selling, and financial advice.
Also, the fast-changing fiscal environment continues to redesign the cross-border wealth management and private banking market. This translates into additional costs and investments for the players.
Many industry experts foresee that the future of cross-border markets will be subject to further regulatory and fiscal developments. The businesses in the industry will need to demonstrate their ability to comply with such developments and to adapt their business strategies accordingly. In our view, there remains much to be done.
Our analysis at OPB shows existing challenges revolving around the value proposition delivered to cross-border clients, and more importantly, how this value can be delivered, through a combination of multi-channel interaction, appropriate product and service offerings, at a fair price, and supported by optimal operating and organizational models. At OPB, we believe that these considerations will shape the industry for years to come.
8. Our Target Market
At OPB, our target market will mostly depend on the phase of our investment product and its development cycle. Most of the marketing opportunity will happen beyond the first year of product development. But we remain very certain that some initial opportunities do exist.
For instance, our bank can utilize its transfer agent’s distribution services, which would put the product in a highly visible online platform. Note that extra opportunities include marketing to programs that invest specifically in “emerging managers.” High net worth individuals and retail marketplace will constitute a greater number of our potential clients.
We believe they can be accessed to a limited degree, even in the early stages, through similar innovative opportunities and already-established relationships with clients. Just like manufacturing organizations, investment machines like OPB are expected to develop products to provide to their customers.
Our hallmark product offering will be our well designed Market Equity strategy, an investment product offering based on the evidence supporting investor’s desires to outperform the overall market via a single, diversified vehicle and to avoid the need to create complex investment structures.
There are strategic three P’s commonly associated with investment banks: People, Process, and Performance. The prior two determine the latter. Even though our business plan highlights many areas (market research, financial projections, etc.), we believe there are two areas that will surely determine the level of success achieved by OPB.
The first will be the people. Bright, energetic, talented, and knowledgeable individuals compose the core of the team we have at OPB. Outstanding and qualified investment professionals are always attracted to efficient private banks that are free from bureaucracy. Process is the second most important element of our bank.
We have made sure cutting-edge research will be provided in support of our portfolio management process. The implementation of our process is maximized by outsourcing virtually all functions not related to portfolio management and research, thereby making full use of the bank’s human capital.
9. SALES AND MARKETING STRATEGY
- Sources of Income
We believe that our primary income at OPB will come from providing our clients with professional guidance to protect and enhance their wealth. We will also offer them tailored, unbiased advice and investment services – ranging from asset management to estate planning and from cash management to business planning.
OPB will earn substantial fees for the equity and debt instruments that it underwrites and then resells to the general public. We also believe that we will engage primarily in debt instruments among middle market companies that will be sold on a best efforts basis.
This will place minimal risk on our capital reserve. We will also earn substantial per hour management and deal fees regarding advisory services. We also plan to make investments directly into marketable securities and hedge funds that specialize in specific areas of trading.
Our intention is to develop a number of trading strategies including options trading, LEAPs trading, long position/short position trading, and other methods of trading that will produce small but consistent gains on a weekly and monthly basis.
We plan to engage in a covered call strategy that would allow the fund to assure return on investment for securities that are held for an extended period of time.
10. Sales Forecast
Our plan at OPB is to turn over approximately 1/3 of our portfolio each year. This will remain consistent with an average holding period of three years. Generally, we would love for all holdings to be long-term investments. The more reason we attempt to identify stocks with which we would be comfortable with if we were “locked in” for three years.
Note that this handicaps us to look beyond short-term noise in quarter-to-quarter results and focus on the big picture, such as our management’s vision for the future and their probability of executing their plan. Also, we do realize that quick price changes, especially in volatile markets, may cause us to realize gains (or losses) sooner than anticipated.
- Marketing Strategy and Sales Strategy
At OPB, we acknowledge that the key to marketing an investment product is to create a successful and attractive product, develop a pattern of success, and show that pattern can be repeated in the future. With that, products should be aggressively marketed if capacity to manage additional assets exists.
Although a three to five-year period tends to seem like a century compared to the technology world, it is really quite reasonable especially with the fact that private equity investors in limited partnership vehicles are generally satisfied with a 10-year waiting period that exists prior to a return of their capital investment.
OPB First Century investment product will be the OPB Total Market Equity strategy and will be initially offered through an SEC registered mutual fund. Technological advancements also permit for other economically feasible distribution channels such as separately managed portfolios for large account sizes.
11. Publicity and Advertising Strategy
At OPB, we will create a long term publicity plan that will boost our brand and help us stay consistent in the industry.
That is why we have contacted the services of an Advertising Experts in business development and publicity, Lexus Channel, to help us create publicity and advertising strategies that will help us at OPB to attract and keep our target audience interested. Listed below is the summary of capable strategies detailed by Lexus Channel for our bank.
- Place adverts on both print (community based newspapers and magazines) and electronic media platforms; we will also advertise OPB on financial magazines, real estate and other relevant financial programs on radio and TV
- Introduce OPB by sending introductory letters with our business brochure to individuals, households, corporate organizations, schools, players in the real estate sector, and all the people of New York City.
- Advertise OPB in important financial and business related magazines, newspapers, TV stations, and radio station.
- Place OPB on yellow pages ads (local directories)
- Attend important international and local real estate , finance and business expos, seminars, and business fairs et al
- Create different packages for different category of clients (individuals, startups and established corporate organizations) in order to work with their budgets
- Encourage word of mouth marketing from loyal and satisfied clients
- Sponsor relevant community based events / programs
- Leverage various online platforms to promote the business. This will make it easier for people to enter our website with just a click of the mouse. We will take advantage of the internet and social media platforms such as; Instagram, Facebook , twitter, YouTube, Google + et al to promote our brand
- Place our Bill Boards on strategic locations
- Share and distribute our fliers and handbills in target areas all around New York City
12. Our Pricing Strategy
Banks in this industry aside helping clients manage and plan wealth, get funds from investors who are interested in investing, and charge them for assisting them in investing their funds over a period of time as agreed by both parties.
Even though the investment banking is a very risky venture, it is still a profitable venture hence there is an agreement between the investment bank and the client as it relates to the commission they are expected to make from the deal.
We at OPB plan to charge based on percentage and also a fixed consultancy/business administrative fee. We believe that in coming years and as we progress that we can decide to improvise or adopt any business process and structure that will guarantee us good return on investment (ROI), efficiency and flexibility.
- Payment options
We plan to make sure we provide our clients with a wide variety of payment options for our services. We understand the need and the diverse platforms different people prefer and we plan to provide a suitable platform that will suit all equally. Listed below are the payment options that we will make available to OPB.
- Payment through private bank transfer
- Payment through online private bank transfer
- Payment with check
- Payment with private bank draft
13. Startup Expenditure (Budget)
Banks like ours raise their initial capital from investors after completing regulatory processes before they can open. In the industry, all insured banks must comply with the capital adequacy guidelines of their primary federal regulator. The guidelines require a private bank to demonstrate that it will have enough capital to support its risk profile, operations, and future growth even in the event of unexpected losses.
We believe that new established private banks are generally subject to additional criteria that remain in place until the private bank’s operations become well established and profitable. We plan for an effective minimum capital of between $15 million to $25 million.
Successful capital generation in these amounts is generally the result of a well formulated and executed plan. We have analysed our needs and we plan to spend our startup funds judiciously. Outlined below is a detailed financial projection and costing for starting OPB;
- Price of incorporating the Business in the United States of America – $750.
- Our budget for basic insurance policy covers, permits and business license – $200,000
- Acquiring a suitable Office facility opposite the city hall at New York City (Re – Construction of the facility inclusive) – $75,000
- The budget envisaged for capitalization (working capital) – $30 million
- Budget for settling other legal processes (acquiring business license and all city dues et al) – $2,500
- Equipping the office with suitable and standard equipment(computers, software applications, printers, fax machines, furniture, telephones, filing cabins, safety gadgets and electronics et al) – $10,000
- Purchasing of the required software applications (CRM software, Accounting and Bookkeeping software and Payroll software et al) – $10,500
- Launching OPB official Website – $600
- Our expenditure for paying employees for 3 months plus utility bills – $36, 000
- Other Additional Expenditure (Business cards, Signage, Adverts and Promotions et al) – $4,000
- Miscellaneous: $10,000
With the above detailed cost analysis, we need $349,350 and $30 million working capital to successfully set up OPB.
Generating Funding/Startup Capital for OPB
Octagon Private Bank will be capitalized by three principal investors, Timothy Johnson, Michael Blair, and Thomas Hill. Our founders plan to become the very first financiers of the business, although we have plans of selling shares and stocks as the business matures. Due to less constraint in financing OPB Mortgages, we have outlined the few ways we can get funding and startup capital.
- Generate part of the start up capital from the five principal investors
- Agreeing to angel investors
- Apply for business loan from the Federal Reserve bank (if need be)
Note: OPB has been able to generate an enormous $15 million from its three principal investors. We have also aligned with angel investors to inject $20 million into OPB, with the hope of making profits and establishing a solid business.
14. Sustainability and Expansion Strategy
Our selection of diversified investment in both broad and specialised markets enables us to manage private investors with the same proficiency available to large pension funds and corporate investors. We will help our clients create a plan that optimises their money by advising them on a selected number of products and help them get where they are going faster.
Although some clients prefer to make their own investment decisions; others are more comfortable receiving professional guidance. Whichever approach they prefer, we will always be willing to help. Private banking at OPB is a secure haven, where client’s dreams and ambitions set the target, their special needs decide the right tailored solutions and their financial status dictates the most appropriate financial planning leading to their targets.
To secure a financial future for our clients and their family, we will always proffer financial advice on a broad range of issues affecting the way the client live at the present and the way they want to live in the future.
OPB can greatly simplify the management of client’s complex finances. Leveraging a team of experts, we provide an objective and holistic analysis of our clients personal financial situation that is tailored to help them grow and preserve their wealth.
One distinctive feature of the investment industry is that collection of fees (i.e. revenues) is highly certain because fees are frequently charged directly to the client’s accounts (or to the mutual fund). That is the more reason why revenue certainty is very high and is directly related to the amount of assets under management.
Also common practice in the investment industry is to bill at each quarter-end. For instance, our annual fee of 1 percent would be applied to our clients’ accounts five times per year at 0.20 percent.
Economic motivation is great and growth rates for the investment industry are expected to range from 30 percent to 32 percent in each of the next three years. Also, the demographic, economic, political and social evidence supporting these projections make this industry one of the most attractive industries due to the high degree of certainty in the estimates.
We believe that the certainty coupled with the above average growth rate differentiates this opportunity from other venture investments. Our near accurate estimates outline a plan-to-profitability over a period much shorter than typical venture investments that sometimes need up to ten years to make profits.
- Business Name Availability Check: Completed
- Business Incorporation: Completed
- Opening of Corporate Private bank Accounts: Completed
- Opening Online Payment Platforms: Completed
- Application and Obtaining Tax Payer’s ID: In Progress
- Application for business license and permit: Completed
- Purchase of Insurance for the Business: Completed
- Conducting feasibility studies: Completed
- Leasing, renovating and equipping our facility: Completed
- Generating part of the start – up capital from the founder: Completed
- Applications for Loan from our Private bankers: In Progress
- Writing of Business Plan: Completed
- Drafting of Employee’s Handbook: Completed
- Drafting of Contract Documents: In Progress
- Design of The Company’s Logo: Completed
- Printing of Promotional Materials: Completed
- Recruitment of employees: In Progress
- Purchase of the Needed software applications, furniture, office equipment, electronic appliances and facility facelift: In progress
- Creating Official Website for the Company: In Progress
- Creating Awareness for the business (Business PR): In Progress
- Health and Safety and Fire Safety Arrangement: In Progress
- Establishing business relationship with private banks, financial lending institutions, vendors and key players in the industry: In Progress
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