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How to Write a Business Plan to Start a Bank

Published Feb.29, 2024

Updated Apr.23, 2024

By: Alex Silensky

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Table of Content

Bank Business Plan Checklist

A bank business plan is a document that describes the bank’s goals, strategies, operations, and financial projections. It communicates the bank’s vision and value proposition to potential investors, regulators, and stakeholders. A SBA business plan should be clear, concise, and realistic. It should also cover all the essential aspects of the bank’s business model.

Here is a checklist of the main sections that you should keep in mind while building a bank business plan:

• Executive summary
• Company description
• Industry analysis
• Competitive analysis
• Service or product list
• Marketing and sales plan
• Operations plan
• Management team
• Funding request
• Financial plan

Sample Business Plan for Bank

The following is a bank business plan template that operates in the USA. This bank business plan example is regarding ABC Bank, and it includes the following sections:

Executive Summary

ABC Bank is a new bank for California’s SMBs and individuals. We offer convenient banking services tailored to our customers’ needs and preferences. We have a large target market with over 500,000 SMBs spending billions on banking services annually. We have the licenses and approvals to operate our bank and raised $20 million in seed funding. We are looking for another $30 million in debt financing.

Our goal is to launch our bank by the end of 2024 and achieve the following objectives in the first five years of operation:

• Acquire 100,000 customers and 10% market share
• Generate $100 million in annual revenue and $20 million in net profit
• Achieve a return on equity (ROE) of 15% and a return on assets (ROA) of 1.5%
• Expand our network to 10 branches and 50 ATMs
• Increase our brand awareness and customer loyalty

Our bank has great potential to succeed and grow in the banking industry. We invite you to read the rest of our microfinance business plan to learn about how to set up a business plan for the bank and how we will achieve our goals.

Industry Analysis

California has one of the biggest and most active banking industries in the US and the world. According to the Federal Deposit Insurance Corp , California has 128 financial institutions, with total assets exceeding $560 billion.

The California banking industry is regulated and supervised by various federal and state authorities. However, they also face several risks and challenges, such as:

• High competition and consolidation
• Increasing regulation and compliance
• Rising customer demand for digital and mobile banking
• Cyberattacks and data breaches
• Environmental and social issues

The banking industry in California is highly competitive and fragmented. According to the FDIC, the top 10 banks and thrifts in California by total deposits as of June 30, 2023, were:

Customer Analysis

We serve SMBs who need local, easy, and cheap banking. We divide our customers into four segments by size, industry, location, and needs: 

SMB Segment 1 – Tech SMBs in big cities of California. These are fast-growing, banking-intensive customers. They account for a fifth of our market share and a third of our revenue and are loyal and referable.

SMB Segment 2 – Entertainment SMBs in California’s entertainment hubs. These are high-profile, banking-heavy customers. They make up a sixth of our market and a fourth of our revenue and are loyal and influential.

SMB Segment 3 – Tourism SMBs in California’s tourist spots. These are seasonal, banking-dependent customers. They represent a quarter of our market and a fifth of our revenue and are loyal and satisfied.

SMB Segment 4 – Other SMBs in various regions of California. These are slow-growing, banking-light customers. They constitute two-fifths of our market and a quarter of our revenue and are loyal and stable.

Competitive Analysis

We compete with other banks and financial institutions that offer similar or substitute products and services to our target customers in our target market. We group our competitors into four categories based on their size and scope: 

1. National Banks

• Key Players – Bank of America, Wells Fargo, JPMorgan Chase, Citibank, U.S. Bank
• Strengths – Large customer base, strong brand, extensive branch/ATM network, innovation, robust operations, solid financial performance
• Weaknesses – High competition, regulatory costs, low customer satisfaction, high attrition
• Strategies – Maintain dominance through customer acquisition/retention, revenue growth, efficiency

2. Regional Banks

• Key Players – MUFG Union Bank, Bank of the West, First Republic Bank, Silicon Valley Bank, East West Bank
• Strengths – Loyal customer base, brand recognition, convenient branch/ATM network, flexible operations
• Weaknesses – Moderate competition, regulatory costs, customer attrition
• Strategies – Grow market presence through customer acquisition/retention, revenue optimization, efficiency

3. Community Banks

• Key Players – Mechanics Bank, Bank of Marin, Pacific Premier Bank, Tri Counties Bank, Luther Burbank Savings
• Strengths – Small loyal customer base, reputation, convenient branches, ability to adapt
• Weaknesses – Low innovation and technology adoption
• Strategies – Maintain niche identity through customer loyalty, revenue optimization, efficiency

4. Online Banks

• Key Players – Ally Bank, Capital One 360, Discover Bank, Chime Bank, Varo Bank
• Strengths – Large growing customer base, strong brand, no branches, lean operations, high efficiency
• Weaknesses – High competition, regulatory costs, low customer satisfaction and trust, high attrition
• Strategies – Disrupt the industry by acquiring/retaining customers, optimizing revenue, improving efficiency

Market Research

Our market research shows that:

• California has a large, competitive, growing banking market with 128 banks and $560 billion in assets.
• Our target customers are the SMBs in California, which is 99.8% of the businesses and employ 7.2-7.4 million employees.
• Our main competitors are national and regional banks in California that offer similar banking products and services.

We conclude that:

• Based on the information provided in our loan officer business plan , there is a promising business opportunity for us to venture into and establish a presence in the banking market in California.
• We should focus on the SMBs in California, as they have various unmet banking needs, preferences, behavior, and a high potential for growth and profitability.

Operations Plan

Our operational structure and processes form the basis of our operations plan, and they are as follows:

• Location and Layout – We have a network of 10 branches and 50 ATMs across our target area in California. We strategically place our branches and ATMs in convenient and high-traffic locations.
• Equipment and Technology – We use modern equipment and technology to provide our products and services. We have computers and software for banking functions; security systems to protect branches and ATMs; communication systems to communicate with customers and staff; inventory and supplies to operate branches and ATMs.
• Suppliers and Vendors – We work with reliable suppliers and vendors that provide our inventory and supplies like cash, cards, paper, etc. We have supplier management systems to evaluate performance.
• Staff and Management – Our branches have staff like branch managers, customer service representatives, tellers, and ATM technicians with suitable qualifications and experience.
• Policies and Procedures – We have policies for customer service, cash handling, card handling, and paper handling to ensure quality, minimize losses, and comply with regulations. We use various tools and systems to implement these policies.

Management Team

The following individuals make up our management team:

• Earl Yao, CEO and Founder – Earl is responsible for establishing and guiding the bank’s vision, mission, strategy, and overall operations. He brings with him over 20 years of banking experience.
• Paula Wells, CFO and Co-Founder – Paula oversees financial planning, reporting, analysis, compliance, and risk management.
• Mark Hans, CTO – Mark leads our technology strategy, infrastructure, innovation, and digital transformation.
• Emma Smith, CMO – Emma is responsible for designing and implementing our marketing strategy and campaigns.
• David O’kane, COO – David manages the daily operations and processes of the bank ensuring our products and services meet the highest standards of quality and efficiency.

Financial Projections

Our assumptions and drivers form the basis of our financial projections, which are as follows:

Assumptions: We have made the following assumptions for our collection agency business plan :

• Start with 10 branches, 50 ATMs in January 2024
• Grow branches and ATMs 10% annually
• 10,000 customers per branch, 2,000 per ATM
• 5% average loan rate, 2% average deposit rate
• 80% average loan-to-deposit ratio
• $10 average fee per customer monthly
• $100,000 average operating expense per branch monthly
• $10,000 average operating expense per ATM monthly
• 25% average tax rate

Our financial projections are as per our:

• Projected Income Statement
• Projected Cash Flow Statement
• Projected Balance Sheet
• Projected Financial Ratios and Indicators

Select the Legal Framework for Your Bank

Our legal structure and requirements form the basis of our legal framework, which are as follows:

Legal Structure and Entity – We have chosen to incorporate our bank as a limited liability company (LLC) under the laws of California.

Members – We have two members who own and control our bank: Earl Yao and Paula Wells, the founders and co-founders of our bank.

Manager – We have appointed Mark Hans as our manager who oversees our bank’s day-to-day operations and activities.

Name – We have registered our bank’s name as ABC Bank LLC with the California Secretary of State. We have also obtained a trademark registration for our name and logo.

Registered Agent – We have designated XYZ Registered Agent Services LLC as our registered agent authorized to receive and handle legal notices and documents on behalf of our bank.

Licenses and Approvals – We have obtained the necessary licenses and approvals to operate our bank in California, including:

• Federal Deposit Insurance Corporation (FDIC) Insurance
• Federal Reserve System Membership
• California Department of Financial Protection and Innovation (DFPI) License
• Business License
• Employer Identification Number (EIN)
• Zoning and Building Permits

Legal Documents and Agreements – We have prepared and signed the necessary legal documents and agreements to form and operate our bank, including:

• Certificate of Formation
• Operating Agreement
• Membership Agreement
• Loan Agreement
• Card Agreement
• Paper Agreement

Keys to Success

We analyze our market, customers, competitors, and industry to determine our keys to success. We have identified the following keys to success for our bank.

Customer Satisfaction

Customer satisfaction is vital for any business, especially a bank relying on loyalty and referrals. It is the degree customers are happy with our products, services, and interactions. It is influenced by:

• Product and service quality – High-quality products and services that meet customer needs and preferences
• Customer service quality – Friendly, professional, and helpful customer service across channels
• Customer experience quality – Convenient, reliable, and secure customer access and transactions

We will measure satisfaction with surveys, feedback, mystery shopping, and net promoter scores. Our goal is a net promoter score of at least 8.

Operational Efficiency

Efficiency is key in a regulated, competitive environment. It is using resources and processes effectively to achieve goals and objectives. It is influenced by:

• Resource optimization – Effective and efficient use and control of capital, staff, and technology
• Process improvement – Streamlined, standardized processes measured for performance
• Performance management – Managing financial, operational, customer, and stakeholder performance

We will measure efficiency with KPIs, metrics, dashboards, and operational efficiency ratios. Our goal is an operational efficiency ratio below 50%.

Partner with OGSCapital for Your Bank Business Plan Success

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Highly Efficient Service! I am incredibly happy with the outcome; Alex and his team are highly efficient professionals with a diverse bank of knowledge.

Are you looking to hire business plan writers to start a bank business plan? At OGSCapital, we can help you create a customized and high-quality bank development business plan to meet your goals and exceed your expectations.

We have a team of senior business plan experts with extensive experience and expertise in various industries and markets. We will conduct thorough market research, develop a unique value proposition, design a compelling financial model, and craft a persuasive pitch deck for your business plan. We will also offer you strategic advice, guidance, and access to a network of investors and other crucial contacts.

We are not just a business plan writing service. We are a partner and a mentor who will support you throughout your entrepreneurial journey. We will help you achieve your business goals with smart solutions and professional advice. Contact us today and let us help you turn your business idea into a reality.

Frequently Asked Questions

How do I start a small bank business?

To start a small bank business in the US, you need to raise enough capital, understand how to make a business plan for the bank, apply for a federal or state charter, register your bank for taxes, open a business bank account, set up accounting, get the necessary permits and licenses, get bank insurance, define your brand, create your website, and set up your phone system.

Are banks profitable businesses?

Yes, banks are profitable businesses in the US. They earn money through interest on loans and fees for other services. The commercial banking industry in the US has grown 5.6% per year on average between 2018 and 2023.

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Bank Business Plan Template

Written by Dave Lavinsky

Bank Business Plan

Over the past 20+ years, we have helped over 500 entrepreneurs and business owners create business plans to start and grow their banks.

If you’re unfamiliar with creating a bank business plan, you may think creating one will be a time-consuming and frustrating process. For most entrepreneurs it is, but for you, it won’t be since we’re here to help. We have the experience, resources, and knowledge to help you create a great business plan.

In this article, you will learn some background information on why business planning is important. Then, you will learn how to write a bank business plan step-by-step so you can create your plan today.

Download our Ultimate Business Plan Template here >

What Is a Bank Business Plan?

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

Why You Need a Business Plan for Your Bank Business

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

Sources of Funding for Banks

With regards to funding, the main sources of funding for a bank are personal savings, credit cards, bank loans, and angel investors. When it comes to bank loans, banks will want to review your business plan and gain confidence that you will be able to repay your loan and interest. To acquire this confidence, the loan officer will not only want to ensure that your financials are reasonable, but they will also want to see a professional plan. Such a plan will give them the confidence that you can successfully and professionally operate a business. Personal savings and bank loans are the most common funding paths for banks.  

Finish Your Business Plan Today!

How to write a business plan for a bank.

If you want to start a bank or expand your current one, you need a business plan. The guide below details the necessary information for how to write each essential component of your bank business plan.

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 kind of bank you are running and the status. For example, are you a startup, do you have a bank that you would like to grow, or are you operating a chain of banks?

Next, provide an overview of each of the subsequent sections of your plan.

• Give a brief overview of the bank industry.
• Discuss the type of bank you are operating.
• Detail your direct competitors. Give an overview of your target customers.
• Provide a snapshot of your marketing strategy. Identify the key members of your team.
• Offer an overview of your financial plan.

Company Overview

In your company overview, you will detail the type of bank you are operating.

For example, you might specialize in one of the following types of banks:

• Commercial bank : this type of bank tends to concentrate on supporting businesses. Both large corporations and small businesses can turn to commercial banks if they need to open a checking or savings account, borrow money, obtain access to credit or transfer funds to companies in foreign markets.
• Credit union: this type of bank operates much like a traditional bank (issues loans, provides checking and savings accounts, etc.) but banks are for-profit whereas credit unions are not. Credit unions fall under the direction of their own members. They tend to serve people affiliated with a particular group, such as people living in the same area, low-income members of a community or armed service members. They also tend to charge lower fees and offer lower loan rates.
• Retail bank: retail banks can be traditional, brick-and-mortar brands that customers can access in-person, online, or through their mobile phones. They also offer general public financial products and services such as bank accounts, loans, credit cards, and insurance.
• Investment bank: this type of bank manages the trading of stocks, bonds, and other securities between companies and investors. They also advise individuals and corporations who need financial guidance, reorganize companies through mergers and acquisitions, manage investment portfolios or raise money for certain businesses and the federal government.

In addition to explaining the type of bank you will operate, the company overview needs to provide background on the business.

Include answers to questions such as:

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

Industry Analysis

In your industry or market analysis, you need to provide an overview of the bank industry.

While this may seem unnecessary, it serves multiple purposes.

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

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

The third reason 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 bank business plan:

• How big is the bank 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 target market for your bank? 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 bank business plan must detail the customers you serve and/or expect to serve.

The following are examples of customer segments: individuals, small businesses, families, and corporations.

As you can imagine, the customer segment(s) you choose will have a great impact on the type of bank you operate. Clearly, corporations would respond to different marketing promotions than individuals, for example.

Try to break out your target customers 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 recognize 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 banks.

Indirect competitors are other options that customers have to purchase from that aren’t directly competing with your product or service. This includes trust accounts, investment companies, or the stock market. You need to mention such competition as well.

For each such competitor, provide an overview of their business and document their strengths and weaknesses. Unless you once worked at your competitors’ businesses, it will be impossible to know everything about them. But you should be able to find out key things about them such as

• What types of customers do they serve?
• What type of bank 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 loans and retirement savings accounts?
• Will you offer products or services that your competition doesn’t?
• 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

Traditionally, a marketing plan includes the four P’s: Product, Price, Place, and Promotion. For a bank business plan, your marketing strategy should include the following:

Product : In the product section, you should reiterate the type of bank company that you documented in your company overview. Then, detail the specific products or services you will be offering. For example, will you provide savings accounts, auto loans, mortgage loans, or financial advice?

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

Place : Place refers to the site of your bank. Document where your company is situated and mention how the site will impact your success. For example, is your bank located in a busy retail district, a business district, a standalone office, or purely online? Discuss how your site might be the ideal location for your customers.

Promotions : The final part of your bank marketing plan is where you will document how you will drive potential customers to your location(s). The following are some promotional methods you might consider:

• Advertise in local papers, radio stations and/or magazines
• Reach out to websites
• Distribute flyers
• Engage in email marketing
• Advertise on social media platforms
• Improve the SEO (search engine optimization) on your website for targeted keywords

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 bank, including reconciling accounts, customer service, accounting, etc.

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

Management Team

To demonstrate your bank’s potential 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 banks. 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 as mentors to your business. They would help answer questions and provide strategic guidance. If needed, look for advisory board members with experience in managing a bank or successfully running a small financial advisory firm.  

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.

Income Statement

An income statement is more commonly called a Profit and Loss statement or P&L. It shows your revenue and then subtracts your costs to show whether you turned a profit or not.

In developing your income statement, you need to devise assumptions. For example, will you see 5 clients per day, and/or offer sign up bonuses? And will sales grow by 2% or 10% per year? As you can imagine, your choice of assumptions will greatly impact the financial forecasts for your business. As much as possible, conduct research to try to root your assumptions in reality.

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 bank, 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 lender 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 ensure 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.

When creating your Income Statement and Balance Sheets be sure to include several of the key costs needed in starting or growing a bank:

• Cost of furniture and office supplies
• Payroll or salaries paid to staff
• Business insurance
• Other start-up expenses (if you’re a new business) like legal expenses, permits, computer software, and equipment

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 bank location lease or a list of accounts and loans you plan to offer.  

Writing a business plan for your bank is a worthwhile endeavor. If you follow the template above, by the time you are done, you will truly be an expert. You will understand the bank industry, your competition, and your customers. You will develop a marketing strategy and will understand what it takes to launch and grow a successful bank.  

Bank Business Plan Template FAQs

What is the easiest way to complete my bank business plan.

Growthink's Ultimate Business Plan Template allows you to quickly and easily write your bank business plan.

How Do You Start a Bank Business?

Starting a bank business is easy with these 14 steps:

• Choose the Name for Your Bank Business
• Create Your Bank Business Plan
• Choose the Legal Structure for Your Bank Business
• Secure Startup Funding for Your Bank Business (If Needed)
• Secure a Location for Your Business
• Register Your Bank Business with the IRS
• Open a Business Bank Account
• Get a Business Credit Card
• Get the Required Business Licenses and Permits
• Get Business Insurance for Your Bank Business
• Buy or Lease the Right Bank Business Equipment
• Develop Your Bank Business Marketing Materials
• Purchase and Setup the Software Needed to Run Your Bank Business
• Open for Business

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

Other Helpful Business Plan Articles & Templates

How To Write a Business Plan for Banking in 9 Steps: Checklist

By alex ryzhkov, resources on banking.

• Financial Model
• Business Plan
• Value Proposition
• One-Page Business Plan
• SWOT Analysis
• Business Model
• Marketing Plan
• Bundle Business Plan & Fin Model

The traditional retail banking approach is a thriving business model in the banking industry, providing a wide range of financial services to individual customers. With the demand for these services continuously growing, it is crucial for aspiring entrepreneurs to understand how to write a comprehensive business plan for banking success.

According to recent statistical data, the retail banking industry has experienced significant growth over the past few years. In fact, it is projected to reach a market value of $22.4 trillion by 2026 . The increasing number of individuals seeking convenient banking solutions and personalized financial services has contributed to this remarkable expansion.

To enter this competitive industry and establish a successful retail banking business, it is important to follow a structured approach. Here is a checklist of nine essential steps to guide you through the process:

• Conduct market research
• Define your target market and identify your target customers
• Analyze the competition
• Determine your unique value proposition
• Assess the financial feasibility and profitability of the business
• Identify potential banking partners and suppliers
• Develop a pricing and revenue model
• Define your marketing and sales strategy
• Establish a cohesive team and management structure

By following these steps, you can create a solid foundation for your retail banking business. Each step is crucial in ensuring that you thoroughly analyze the market, understand your customers' needs, differentiate yourself from competitors, and build a profitable venture.

Stay tuned for our upcoming blog posts, where we will delve deeper into each of these steps, providing valuable insights and practical tips to help you craft a compelling business plan for your banking venture.

Conduct Market Research

Before starting a business plan for a banking venture, it is crucial to conduct thorough market research. This step will provide you with valuable insights into the industry, current trends, and the needs and demands of potential customers.

When conducting market research, you should start by identifying the target market for your banking services. This involves determining the demographic characteristics, financial needs, and preferences of your potential customers. Understanding your target market will help you tailor your banking products and services to meet their specific requirements.

Analyze the current competition in the banking industry to identify key players and understand the services they offer. This will help you assess the market saturation and identify any gaps or opportunities for your business.

To ensure the success of your banking venture, it is essential to determine your unique value proposition. This is what sets your bank apart from the competitors and highlights the advantages you can offer to potential customers. Understanding your strengths and weaknesses will enable you to develop strategies to capitalize on your unique selling points.

• Utilize online resources, industry reports, and market studies to gather relevant data and insights.
• Conduct surveys or interviews with potential customers to gain a deeper understanding of their preferences and expectations.
• Stay updated on the latest banking trends and innovations to identify potential new opportunities in the market.

By conducting comprehensive market research, you will gain the necessary knowledge and understanding to develop a business plan that aligns with the needs and demands of your target market. This research will serve as a solid foundation for the subsequent steps in creating a successful banking venture.

Define Your Target Market And Identify Your Target Customers

Defining your target market and identifying your target customers is a crucial step in creating a successful business plan for banking. By understanding who your customers are, you can tailor your products and services to meet their specific needs and preferences. This will not only help you attract and retain customers but also differentiate your business from competitors in the market.

To define your target market, consider factors such as demographics, psychographics, and behavior. Demographics include characteristics such as age, gender, income level, and education. Psychographics, on the other hand, focus on attitudes, values, lifestyle choices, and interests. By understanding these factors, you can create a customer profile that reflects the characteristics and preferences of your target market.

Once you have defined your target market, you can then identify your target customers within that market segment. This involves conducting further research and analysis to determine the specific individuals or groups within your target market who are most likely to use your banking services. This could be based on factors such as income level, life stage, occupation, or geographic location.

Tips for Defining Your Target Market and Identifying Your Target Customers:

• Conduct surveys or interviews with potential customers to gain insights into their banking needs and preferences.
• Utilize market research data and industry reports to understand the current trends and demands in the banking industry.
• Segment your target market into smaller, more specific groups based on shared characteristics or needs.
• Consider the competition and how your banking services can offer unique value to your target customers.
• Regularly review and update your target market and customer profiles as market conditions and customer preferences may change over time.

By defining your target market and identifying your target customers, you can develop effective marketing strategies and tailor your products and services to meet the specific needs and preferences of your customers. This will not only help you attract and retain loyal customers but also drive the profitability and growth of your banking business.

Analyze The Competition

When writing a business plan for banking, it is crucial to thoroughly analyze the competition in the industry. Understanding your competitors will help you identify their strengths and weaknesses, allowing you to position your business to stand out in the market. Here are some key steps to analyze the competition:

• Identify direct and indirect competitors: Begin by researching and listing all the banks and financial institutions that offer similar services to your target market. This includes both local and national competitors.
• Study their products and services: Analyze the range of financial products and services offered by your competitors. Look at their interest rates, fees, and additional benefits they provide to customers.
• Examine their target market: Determine the specific demographics and needs of your competitors' target customers. This will help you identify potential gaps in the market and tailor your offerings to meet those needs.
• Assess their marketing strategies: Analyze how your competitors are promoting their services and attracting customers. Look at their advertising campaigns, online presence, and customer engagement strategies. Identify what sets them apart in terms of branding and messaging.
• Evaluate customer feedback and reviews: Explore online platforms, such as social media, business review websites, and forums to discover what customers are saying about your competitors. This will provide valuable insights into their strengths and weaknesses from a customer's perspective.
• Stay up-to-date: Continuously monitor your competitors' activities and adapt your strategies accordingly. Stay informed about any new products, services, or marketing tactics they may introduce.
• Be objective: Avoid underestimating your competitors or solely focusing on their weaknesses. Recognize their strengths and learn from them to enhance your own business.
• Identify opportunities: Analyzing the competition can help you identify gaps in the market that your business can fill. Look for areas where your competitors may be lacking or failing to meet customer demands.

By thoroughly analyzing the competition, you can gain a comprehensive understanding of the banking industry landscape and position your business for success.

Determine Your Unique Value Proposition

Once you have conducted market research and analyzed the competition, it is essential to determine your unique value proposition. This is the factor that sets you apart from your competitors and provides value to your target customers.

• Identify your strengths: Assess your strengths, skills, and resources that you can leverage to differentiate yourself in the market. Determine what unique qualities or services you can offer that others may not have.
• Understand customer needs: Gain a deep understanding of your target customers' pain points and what they value most in retail banking services. This will help you tailor your value proposition to meet their specific needs.
• Highlight benefits: Clearly communicate the benefits that your customers will receive by choosing your retail banking services. Whether it's competitive interest rates, personalized customer service, or innovative digital banking solutions, emphasize these advantages in your value proposition.
• Emphasize convenience: In today's fast-paced world, convenience plays a crucial role in attracting and retaining customers. If your retail banking approach offers online and mobile banking services, express how these features simplify and enhance the banking experience for your customers.
• Offer specialized services: Consider if there are any specialized financial services or niche markets you can cater to. By becoming an expert in a specific area, you can establish yourself as the go-to retail bank for those customers.
• Research what unique innovations or strategies other successful retail banks have implemented. This can inspire you and help you think outside the box when determining your unique value proposition.
• Regularly seek feedback from your customers to understand if your value proposition aligns with their expectations and if any adjustments need to be made.

Assess The Financial Feasibility And Profitability Of The Business

Assessing the financial feasibility and profitability of your banking business is crucial in determining whether your venture will be sustainable and successful. It involves conducting a thorough analysis of your projected income and expenses to determine if your business model is financially viable.

To assess the financial feasibility of your business, start by determining your startup costs. This includes expenses such as office space rental, equipment purchase, employee salaries, and marketing expenses. Consider obtaining quotes from suppliers and researching industry benchmarks to accurately estimate these costs.

Next, project your revenue streams. Calculate the potential income from your various financial services, taking into account factors such as interest rates, fees, and customer acquisition rates. It is important to be realistic in your projections, using market research and industry trends to guide your estimations.

Once you have projected your income and expenses, you can calculate your profitability. Compare your projected revenue with your anticipated expenses to determine if your business will generate a profit. This analysis will help you identify any potential financial gaps or areas that may need adjustment.

To ensure the accuracy of your financial projections, it is recommended to seek the assistance of a financial expert or accountant. They can review your calculations, provide valuable insights, and help you identify any potential risks or areas for improvement.

• Consider creating multiple financial scenarios to account for different market conditions and potential risks.
• Regularly update your financial projections as your business evolves and market conditions change.
• Take into account regulatory requirements and compliance costs when assessing profitability.
• Keep track of industry benchmarks and trends to ensure your profitability remains competitive.
• Explore potential cost-saving measures or revenue-generating opportunities to optimize your financial feasibility.

Identify Potential Banking Partners and Suppliers

When starting a retail banking business, it is crucial to identify potential banking partners and suppliers who can support your operations and provide the necessary financial services and products. These partnerships can greatly impact the success and growth of your business. Here are some key steps to consider when identifying potential banking partners and suppliers:

• 1. Research and analyze different banks: Begin by researching and analyzing various banks to find the ones that align with your business goals and values. Consider factors such as their reputation, financial stability, range of services, and compatibility with your target market.
• 2. Evaluate their service offerings: Assess the specific financial services and products offered by potential banking partners. Ensure that they can meet the needs and demands of your target customers. Look for partners who offer competitive interest rates, flexible loan terms, and convenient banking channels.
• 3. Consider their technological capabilities: In today's digital age, it is essential to partner with banks that have robust online and mobile banking platforms. These technologies can enhance the customer experience and improve operational efficiency.
• 4. Examine their customer support: Customer support is crucial in the banking industry. Evaluate the responsiveness and quality of service offered by potential banking partners. Look for partners who prioritize customer satisfaction and provide efficient dispute resolution processes.
• 5. Assess their fees and charges: Compare the fees and charges imposed by different potential banking partners. Consider the impact these fees may have on your customers and your business's profitability. Look for partners who offer transparent fee structures and reasonable charges.
• 6. Seek recommendations and references: Reach out to other business owners or industry professionals for recommendations and references. Their experiences and insights can provide valuable information and help you make an informed decision.

Tips: Identifying Your Ideal Banking Partner

• 1. Clearly define your banking needs and priorities before approaching potential partners.
• 2. Consider partnering with a bank that has experience in serving the retail banking sector.
• 3. Look for banks that offer tailored banking solutions to meet the unique requirements of your target market.
• 4. Prioritize banks with strong financial stability and a solid reputation to ensure the security of your customers' funds.
• 5. Don't overlook the importance of effective communication and a positive working relationship with your banking partner.

Identifying potential banking partners and suppliers requires thorough research, evaluation, and consideration of various factors. By selecting the right partners, you can establish a strong foundation for your retail banking business and deliver exceptional financial services to your customers.

Develop A Pricing And Revenue Model

Developing a pricing and revenue model is crucial for the success of your banking business. It involves determining how you will generate revenue and setting prices for your products and services. Here are the key steps to follow:

• Understand your costs: Before setting prices, it is important to have a clear understanding of your costs. Calculate the costs associated with providing each financial service, including overhead costs, employee salaries, technology expenses, and marketing costs.
• Consider market demand: Analyze the market demand for your services and consider the pricing strategies of your competitors. Determine how much customers are willing to pay for the value you offer and factor this into your pricing decisions.
• Create pricing tiers: Consider offering multiple pricing tiers for different levels of service or different customer segments. This allows you to cater to a wider range of customers and capture more revenue.
• Incorporate value-added services: Identify additional services or features that you can offer at an additional cost. For example, you could provide premium customer support, personalized financial advice, or access to exclusive rewards programs.
• Set profitable prices: Set prices that not only cover your costs but also generate a profit. Consider the long-term sustainability of your pricing strategy and ensure that it aligns with your overall business goals.
• Test and refine: Monitor customer response to your pricing and revenue model and collect feedback. Continuously analyze and refine your approach to ensure that it remains competitive and profitable.
• Research pricing strategies used by successful banks to gain insights and inspiration.
• Consider offering introductory offers or promotions to attract new customers and generate initial interest.
• Regularly review and adjust your pricing and revenue model to adapt to changing market conditions.

Define Your Marketing and Sales Strategy

Once you have identified your target market and competition, it is crucial to define a clear marketing and sales strategy. This will guide your efforts in reaching and convincing potential customers to choose your banking services over those of your competitors.

Firstly, you need to determine your positioning in the market. Identify what sets your bank apart from others and emphasize these unique selling points. Whether it is superior customer service, innovative mobile banking features, or competitive interest rates, highlighting your unique value proposition will attract customers who prioritize these factors.

Next, establish your marketing channels to reach your target audience effectively. This could include a combination of online and offline channels, such as social media, search engine optimization, traditional advertising, and partnerships with local businesses or community organizations. Understand your target customers' preferences and habits to ensure your messages are delivered through the most appropriate channels.

An important aspect of your marketing strategy is to clearly communicate the benefits and features of your banking services. Develop compelling messaging that focuses on how your services can address the specific financial needs and goals of your target market. Highlight any additional benefits, such as cashback rewards or fraud protection, to differentiate your offerings from competitors.

Tips for a Successful Marketing and Sales Strategy:

• Invest in creating a visually appealing and user-friendly website and mobile app to enhance your online presence.
• Utilize data analytics to track and optimize your marketing campaigns, enabling you to refine your messaging and target your audience more effectively.
• Consider implementing referral programs to incentivize satisfied customers to spread the word about your bank and attract new customers.
• Regularly monitor and respond to customer feedback to maintain and improve customer satisfaction levels.
• Stay updated on industry trends and continuously adapt your marketing strategy to remain competitive in the evolving banking landscape.

Lastly, your sales strategy should focus on efficiently converting leads into customers. Train your sales team to effectively communicate the unique benefits of your banking services and handle objections. Provide them with the necessary tools and resources, such as sales scripts and collateral, to guide their interactions with potential customers.

To maximize sales opportunities, consider hosting informational events or workshops to educate potential customers about your services. Additionally, establish partnerships with local businesses or organizations to offer special promotions or discounts to their members, further incentivizing them to choose your bank.

With a well-defined marketing and sales strategy in place, you will be equipped to drive customer acquisition and grow your business in the competitive retail banking industry.

Establish A Cohesive Team And Management Structure

Building a cohesive team and establishing a strong management structure is crucial for the success of your banking business. A well-organized and harmonious team can help drive growth, foster innovation, and ensure efficient operations.

Here are some important steps to consider when establishing a cohesive team and management structure:

• Clearly define roles and responsibilities: Clearly defining roles and responsibilities for each team member is essential to avoid confusion and ensure everyone understands their specific tasks and goals. This clarity will help streamline operations and promote accountability within the team.
• Build a diverse team: A diverse team brings different perspectives, experiences, and skill sets to the table. Consider hiring individuals with a mix of backgrounds and expertise to foster creativity and drive innovation within your organization. Encourage collaboration and an inclusive work environment.
• Encourage effective communication: Open and effective communication is key to maintaining a cohesive team. Encourage regular team meetings, provide opportunities for feedback, and establish channels for transparent communication among team members. This will foster a culture of trust and collaboration.
• Invest in professional development: Continuously investing in your team's professional development will not only enhance individual skill sets, but also contribute to the overall growth and success of your banking business. Offer training programs, workshops, and opportunities for mentorship to help your team members stay up-to-date with industry trends and developments.
• Promote a positive work culture: A positive work culture is essential for attracting and retaining talented individuals. Foster a supportive and inclusive environment where teamwork, respect, and recognition are valued. Encourage a healthy work-life balance and provide opportunities for team building activities.
• Implement effective performance management: Establish a performance management system that includes regular performance reviews and feedback sessions. Reward and recognize high-performing team members, while also addressing any performance issues in a timely and constructive manner. This will help motivate your team and drive continuous improvement.

Tips for establishing a cohesive team and management structure:

• Clearly communicate your vision and goals to the team, outlining how each individual contributes to the overall objectives.
• Delegate responsibilities based on individual strengths and expertise, allowing team members to take ownership of their work.
• Encourage collaboration and cross-functional teamwork to foster a sense of unity within the organization.
• Provide regular training and development opportunities to enhance skills and keep up with industry advancements.
• Lead by example, demonstrating professionalism, integrity, and a strong work ethic.

Establishing a cohesive team and management structure requires careful planning and ongoing effort. By investing in your team, fostering effective communication, and promoting a positive work culture, you can create a strong foundation for your banking business to thrive.

In conclusion, writing a business plan for a banking venture requires careful consideration and attention to detail. By following the 9-step checklist outlined in this blog post, you can ensure that your business plan covers all the necessary elements for success. Conducting market research, defining your target market, analyzing the competition, and determining your unique value proposition are essential steps to understand the market landscape and position your business effectively. Additionally, assessing the financial feasibility, identifying potential banking partners and suppliers, and developing a pricing and revenue model will help ensure the profitability of your business. Defining a robust marketing and sales strategy and establishing a cohesive team and management structure are crucial for effective operations and growth. By adhering to these steps, you can build a strong foundation for your banking business and increase the likelihood of success in the highly competitive banking industry.

Banking Financial Model

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Writing a business plan in 9 steps

Discover all the doors a solid business plan can help open for you, including business banking accounts, loans and other forms of funding.  Presented by Chase for Business .

Whether you're starting your first business or your company is seeking funding , a business plan is essential for charting your path to success.

A well-written and researched business plan can act as a roadmap that outlines your plan for selling and marketing your products and services, making profits and growing over a period of three to five years. Your plan can also help position your company within the industry and set your business apart from competitors.

With the right tools and a little excitement, you can write a business plan. In this article, you'll learn how to write a business plan in a step-by-step process.

1. Ask these questions

To get in the right frame of mind and gather necessary details for writing an effective business plan, ask yourself the following questions:

• Why do I want to start this business? What’s my reasoning or inspiration?
• How does my business stand out from the competition?
• What is my unique value proposition?
• Who are my target customers? How can I reach them?
• Who is already on my management team? What gaps do I need to fill?
• How can my business make a profit? How soon will it break even?

Knowing the answers to these questions will help guide the structure and cadence of your business plan.

2. Research before you write

Your business plan should be a well-researched, actionable document that you can return to again and again. To get the information you need, use the following tactics when writing a business plan:

• Do a SWOT analysis. Consider your company’s strengths, weaknesses, opportunities and threats. This type of analysis allows you to identify what sets your business apart and plan for potential risks.
• Perform due diligence. If you’re planning to buy an existing business, make sure you research the company’s finances, sales, inventory and other aspects to ensure it’s a sound investment.
• Use Porter’s Five Forces . This analytical approach is a framework for analyzing your company’s competitive environment.

3. Think about your audience

Ask yourself, who will read my business plan, and what kind of information do they need? For example, if you’re looking for funding, you should include plenty of financial data and forecasting. If you’re seeking to bring on new business partners, you should include a detailed section where you outline how the business intends to support growth over the next three to five years.

If you want to share your business plan with different types of stakeholders, think about writing more than one version. This will allow you to make sure every reader has the right, targeted details about your business.

4. Include market analysis

Writing and researching a business plan gives you the opportunity to learn more about your industry, market, competitors, audience, local government, suppliers, sales channels and more. It also allows you to assess risk related to your market or supply chain.

To do this research, you can start by looking for online data related to your industry and target audience. It’s a good idea to include data that's recent enough to still be relevant and from a credible source.

With a bit of patience, the information you need can be found online for free. Services also exist that provide customized data for a fee — which can be a good option for business owners without the luxury of time.

5. Make realistic projections

When writing a business plan, you’re naturally going to be excited, and it may feel easy to think positively and overestimate how well your business will perform. Optimism may cause you future distress when investors or business partners expect more than your business is able to provide.

It’s always better to aim low and blow your projections out of the water than to do the opposite. Make your business plan as realistic as possible. When you include accounting data, carefully consider the market, your competitors and the demand for your products.

6. Share your vision

Although financial projections, product descriptions and management charts serve as the focus for most business plans, including a vision statement can help you personalize your goals and refer back to your initial mission.

In this section, briefly discuss your reason for starting the business, share any underlying motivations and hypothesize on how your company can contribute to a larger cause.

7. Keep it concise

As you write your business plan, it's tempting to include every detail about your company. Before you know it, your market analysis alone might be 10 pages long. If your business plan becomes too big, it may become less actionable, or your readers may not devote the time to reading and comprehending it.

Take care to feature only the essential data when you write your business plan. Be sure to include the standard sections mentioned above.

A good suggestion is to feature a page or two for each section plus any financial statements or resumes. If you have additional research or notes that don't fit neatly into your plan, keep them on file for your own internal use.

8. Include a visual element

Most business plans tend to be text-heavy — but that doesn’t mean you can’t make yours visually appealing for the reader. Include relevant graphics, pictures, charts and diagrams.

9. Keep the style simple

Focus on presenting your information and storytelling in a clear way that doesn’t require additional context to be understood. Keep the formatting as simple as possible. Use a classic serif font like Times New Roman to maintain readability. The last thing you want is for investors to focus more on your font choice than your financial projections.

A business plan can help you review your idea and put actionable goals in place. Once you’ve worked out the details, a  business banker  can walk you through important next steps like  setting up a business checking account .

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Writing a Bank Business Plan

When it comes to seeking funding from a bank or other financial institution, one of the most important things you can do is have a well-written business plan . This document will not only give potential lenders and investors an idea of your company’s current position and future goals but will also provide them with a clear understanding of the risks involved in lending you money or investing in your business.

What is a Business Plan?

A business plan is a document that provides a detailed description of a business, its products or services, its market, and its financial projections. It is used to secure funding from lenders or investors and to provide guidance for the business’s future operations.

Why Write a Business Plan

There are several reasons why you might want to write a plan for your business, even if you’re not looking for funding, they are:

• To clarify your company’s purpose and direction
• To better understand your industry and customers
• To develop a realistic financial plan and accurate projections
• To identify potential risks and opportunities
• To track your company’s progress over time

An effective and well-written plan is helpful for potential investors and clarifies the plans you have for any future business partners.

Sources of Business Funding for Banks

There are many sources of business funding available to banks, including:

• Equity financing: This is when you sell a portion of your business to investors in exchange for capital. This can be a good option if you need a large amount of money quickly, as it doesn’t require you to pay back the funds over time.
• Debt financing: This is when you borrow money from a lender, such as a bank, in exchange for repayment plus interest. This type of financing can be helpful if you need to keep your cash flow low in the early stages of your business.
• Grants: There are several different government and private grants available to businesses, which can often be used for start-up costs or expansion.
• Venture capital: This is when you receive funding from a venture capitalist in exchange for a portion of your company’s equity. Venture capitalists typically invest their own personal savings in high-growth businesses with a lot of potential.

Resources to Write a Bank Business Plan

To write a bank business plan, you’ll need access to a variety of resources, including:

Sample Plans for Your Business

A good place to start is by looking at some sample plans for businesses in your industry. This will give you a good idea of the types of information to include in your own plan.

Business planning software

There are a number of software programs that can help you create professional-looking plans for your business.

Market Research

When writing a business plan for a bank, it’s important to include a section on your company’s market research. This will include detailed information about your industry, your market, and your competition.

Industry Analysis

In order to accurately describe your industry and the market for your products or services, you’ll need to conduct an industry analysis. This should include information about the size and growth of the industry, the key players in the industry, and any major trends or changes that are taking place.

Target Market Analysis

To effectively market your products or services, you need to understand who your target market is. This should include information about the demographics of your target customers (age, gender, income, etc.), psychographics (lifestyle preferences, interests, etc.), and geographic (location, region).

Competition Analysis

In order to differentiate your business from the competition, you’ll need to know what they’re offering and how they’re positioning themselves in the market. This should include a SWOT analysis (strengths, weaknesses, opportunities, threats) of your competitors.

Customer Segments

A customer segment is a group of customers who share common characteristics, such as age, income, location, or lifestyle preferences. When creating business plans for a bank, it’s important to identify and target your key customer segments. This will help you focus your marketing efforts and create products and services that appeal to your target market.

There are a variety of ways to segment customers, including:

• Demographics: Age, gender, income, location, etc.
• Psychographics: Lifestyle preferences, interests, etc.
• Behavior: How they interact with your brand, what channels they use to purchase products or services, etc.
• Usage: How often they purchase your product or service, how much they spend, etc.
• Value: How much they’re willing to pay for your product or service, how much they value customer service, etc.

Once you’ve identified your customers, you can create buyer personas. These are fictional characters that represent your ideal customer within each segment. Creating buyer personas will help you better understand your target market and create more effective marketing campaigns.

Financial templates

If you’re not familiar with financial terminology or calculations, use a financial template to help you develop your business’s financial projections as well as including an income statement and balance sheets.

Accounting and Legal Advice 

It’s important to seek out accounting and legal advice from professionals who can help ensure that your business plan is accurate and complete.

Bank Business Plan Template

While there is no one-size-fits-all template for writing a business plan, there are some key elements that should be included. Here is a brief overview of what should be included:

Executive Summary

This is a high-level overview of your company, its products or services, and its financial situation. Be sure to include information on your target market, your competitive advantage, and your plans for growth.

Company Description

This section provides more detail on your company, including its history, structure, and management team. Be sure to include information on your company’s mission and vision, as well as its values and goals.

Products and Services

Here you will describe your company’s products or services in detail, including information on your target market and your competitive advantage.

Market Analysis

In this section, you will provide an overview of your market, including demographic information and information on current and future trends. This is also a good section to add the marketing plan you have developed to appeal to potential customers.

Sales and Marketing

This section will detail your sales and marketing strategy, including information on your pricing, your distribution channels, and your promotion plans.

Financial projections

This is perhaps the most important section of your business plan, as it will provide lenders and investors with an idea of your company’s financial health. Be sure to include detailed information on your past financial performance, as well as your projections for future revenue and expenses. This is also a good section to include your cash flow statements, income statements, and information about any bank accounts opened for your business.

This is where you will include any supporting documents, such as your financial statements, marketing materials, or product data sheets.

While this is not an exhaustive list of everything that should be included in your bank business plan, it covers the most important elements. By taking the time to write a well-thought-out and detailed business plan, you will increase your chances of securing the funding you need to grow your business.

Opening a bank is a detailed and complex process, but it can be enormously rewarding both professionally and financially. The best way to increase your chances of success is to write a business plan that outlines all aspects of opening and running a bank. This document should include market analysis, organizational structure, financial projections, and more. Our team has extensive experience helping entrepreneurs open banks. We have created a comprehensive business plan template that covers all the key points you need to consider when writing your own business plan. By following our template, you can be sure that you haven’t missed any essential elements in your planning process. Investing in professional help when writing your business plan gives you the best chance for success when opening a new bank.

Bank Business Plan Template FAQs

Do i need to use a business plan template.

There is no one-size-fits-all answer to this question. If you are seeking funding from a lender or investor, they may have specific requirements for the format and content of your business plan. In other cases, using a template can be helpful in ensuring that you include all of the important information in your plan.

Where can I find a business plan template?

There are a number of resources that offer business plan templates, including the Small Business Administration (SBA) and the U.S. Chamber of Commerce. Additionally, many software programs that offer business planning tools also include templates.

How long should my business plan be?

Again, there is no one-size-fits-all answer to this question. The length of your business plan will depend on the complexity of your business and the amount of detail you need to include. In general, however, most business plans range from 20 to 50 pages.

Do I need to hire a professional to help me write my business plan?

While you are not required to hire a professional to write your business plan, it may be helpful to do so. A professional can help you ensure that your plan is well-written and free of errors. Additionally, they can offer advice on how to best structure your plan and make it more likely to succeed.

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How to write an effective business plan in 11 steps (with workbook)

February 02, 2023 | 14 minute read

Writing a business plan is a powerful way to position your small business for success as you set out to meet your goals. Landmark studies suggest that business founders who write one are 16% more likely to build viable businesses than those who don’t and that entrepreneurs focused on high growth are 7% more likely to have written a business plan. 1 Even better, other research shows that owners who complete business plans are twice as likely to grow their business successfully or obtain capital compared with those who don’t. 2

The best time to write a business plan is typically after you have vetted and researched your business idea. (See How to start a business in 15 steps. ) If conditions change later, you can rewrite the plan, much like how your GPS reroutes you if there is traffic ahead. When you update your plan regularly, everyone on your team, including outside stakeholders such as investors, will know where you are headed.

What is a business plan?

Typically 15-20 pages long, a business plan is a document that explains what your business does, what you want to achieve in the business and the strategy you plan to use to get there. It details the opportunities you are going after, what resources you will need to achieve your goals and how you will define success.

Why are business plans important?

Business plans help you think through barriers and discover opportunities you may have recognized subconsciously but have not yet articulated. A business plan can also help you to attract potential lenders, investors and partners by providing them with evidence that your business has all of the ingredients necessary for success.

What questions should a business plan answer?

Your business plan should explain how your business will grow and succeed. A great plan will provide detailed answers to questions that a banker or investor will have before putting money into the business, such as:

• What products or services do you provide?
• Who is your target customer?
• What are the benefits of your product and service for customers?
• How much will you charge?
• What is the size of the market?
• What are your marketing plans?
• How much competition does the business face in penetrating that market?
• How much experience does the management team have in running businesses like it?
• How do you plan to measure success?
• What do you expect the business’s revenue, costs and profit to be for the first few years?
• How much will it cost to achieve the goals stated in the business plan?
• What is the long-term growth potential of the business? Is the business scalable?
• How will you enable investors to reap the rewards of backing the business? Do you plan to sell the business to a bigger company eventually or take it public as your “exit strategy”?

How to write a business plan in 11 steps

This step-by-step outline will make it easier to write an effective business plan, even if you’re managing the day-to-day demands of starting a new business. Creating a table of contents that lists key sections of the plan with page numbers will make it easy for readers to flip to the sections that interest them most.

• Use our editable workbook to capture notes and organize your thoughts as you review these critical steps. Note: To avoid losing your work, please remember to save this PDF to your desktop before you begin.

1. Executive summary

The executive summary is your opportunity to make a great first impression on investors and bankers. It should be just as engaging as the enthusiastic elevator pitch you might give if you bumped into a potential backer in an elevator.

In three to five paragraphs, you’ll want to explain what your business does, why it will succeed and where it will be in five years. The executive summary should include short descriptions of the following:

• Business concept. What will your business do?
• Goals and vision. What do you expect the business to achieve, both financially and for other key stakeholders, such as the community?
• Product or service. What does your product or service do — and how is it different from those of competitors?
• Target market. Who do you expect to buy your product or service?
• Marketing strategy. How will you tell people about your product or service?
• Current revenue and profits. If your business is pre-revenue, offer sales projections.
• Projected revenue and profits. Provide a realistic look at the next year, as well as the next three years, ideally.
• Financial resources needed. How much money do you need to borrow or raise to fund your plan?
• Management team. Who are the company’s leaders and what relevant experience will they contribute?

2. Business overview

Here is where you provide a brief history of the business and describe the product(s) or service(s) it offers. Make sure you describe the problem you are attempting to solve, for whom you will solve it (your customers) and how you will solve it. Be sure to describe your business model (such as direct-to-consumer sales through an online store) so readers can envision how you will make sales. Also mention your business structure (such as a sole proprietorship , general partnership, limited partnership or corporation) and why it is advantageous for the business. And be sure to provide context on the state of your industry and where your business will fit into it.

3. Business goals and vision

Explain what you hope to achieve in the business (your vision) as well as its mission and value proposition. Most founders judge success by the size to which they grow the business using measures such as revenue or number of employees. Your goals may not be solely financial. You may also wish to provide jobs or solve a societal problem. If that’s the case, mention those goals as well.

If you are seeking outside funding, explain why you need the money, how you will put it to work to grow the business and how you expect to achieve the goals you have set for the business. Also explain your exit strategy—that is, how you would enable investors to cash out, whether that means selling the business or taking it public.

4. Management and organization

Many investors say they bet on the team behind a business more than the business idea, trusting that talented and experienced people will be capable of bringing sound business concepts to life. With that in mind, make sure to provide short bios of the key members of your management team (including yourself) that emphasize the relevant experience each individual brings, along with their special talents and industry recognition. Many business plans include headshots of the management team with the bios.

Also describe more about how your organization will be structured. Your company may be a sole proprietorship, a limited liability company (LLC) or a corporation in one or more states.

If you will need to hire people for specific roles, this is the place to mention those plans. And if you will rely on outside consultants for certain roles — such as an outsourced CFO — be sure to make a note of it here. Outside backers want to know if you’ve anticipated the staffing you need.

5. Service or product line

A business will only succeed if it sells something people want or need to buy. As you describe the products or services you will offer, make sure to explain what benefits they will provide to your target customers, how they will differ from competing offerings and what the buying cycle will likely be so it is clear that you can actually sell what you are offering. If you have plans to protect your intellectual property through a copyright or patent filing, be sure to mention that. Also explain any research and development work that is underway to show investors the potential for additional revenue streams.

6. Market/industry analysis

Anyone interested in providing financial backing to your business will want to know how big your company can potentially grow so they have an idea of what kind of returns they can expect. In this section, you’ll be able to convey that by explaining to whom you will be selling and how much opportunity there is to reach them. Key details to include are market size; a strengths, weaknesses, opportunities and threats (SWOT) analysis ; a competitive analysis; and customer segmentation. Make it clear how you developed any projections you’ve made by citing interviews or research.

Also describe the current state of the industry. Where is there room for improvement? Are most companies using antiquated processes and technology? If your business is a local one, what is the market in your area like? Do most of the restaurants where you plan to open your café serve mediocre food? What will you do better?

In this section, also list competitors, including their names, websites and social media handles. Describe each source of competition and how your business will address it.

7. Sales and marketing

Explain how you will spread the word to potential customers about what you sell. Will you be using paid online search advertising, social media promotions, traditional direct mail, print advertising in local publications, sponsorship of a local radio or TV show, your own YouTube content or some other method entirely? List all of the methods you will use.

Make sure readers know exactly what the path to a sale will be and why that approach will resonate with customers in your ideal target markets as well as existing customer segments. If you have already begun using the methods you’ve outlined, include data on the results so readers know whether they have been effective.

8. Financials

In a new business, you may not have any past financial data or financial statements to include, but that doesn’t mean you have nothing to share. Preparing a budget and financial plan will help show investors or bankers that you have developed a clear understanding of the financial aspects of running your business. (The U.S. Small Business Administration (SBA) has prepared a guide you can use; SCORE , a nonprofit organization that partners with the SBA, offers a financial projections template to help you look ahead.) For an existing business, you will want to include income statements, profit and loss statements, cash flow statements and balance sheets, ideally going back three years.

Make a list of the specific steps you plan to take to achieve the financial results you have outlined. The steps are generally the most detailed for the first year, given that you may need to revise your plan later as you gather feedback from the marketplace.

Include interactive spreadsheets that contain a detailed financial analysis showing how much it costs your business to produce the goods and services you provide, the profits you will generate, any planned investments and the taxes you will pay. See our startup costs calculator to get started.

9. Financial projections

Creating a detailed sales forecast can help you get outside backers excited about supporting you. A sales forecast is typically a table or simple line graph that shows the projected sales of the company over time with monthly or quarterly details for the next 12 months and a broader projection as much as five years into the future. If you haven’t yet launched the company, turn to your market research to develop estimates. For more information, see “ How to create a sales forecast for your small business. ”

10. Funding request

If you are seeking outside financing such as a loan or equity investment, your potential backers will want to know how much money you need and how you will spend it. Describe the amount you are trying to raise, how you arrived at that number and what type of funding you are seeking (such as debt, equity or a combination of both). If you are contributing some of your own funds, it is worth noting this, as it shows that you have skin in the game.

11. Appendix

This should include any information and supporting documents that will help investors and bankers gain a greater understanding of the potential of your business. Depending on your industry, you might include local permits, licenses, deeds and other legal documents; professional certifications and licenses; media clips; information on patents and other intellectual property; key customer contracts and purchase orders; and other relevant documents.

Some business owners find it helpful to develop a list of key concepts, such as the names of the company’s products and industry terms. This can be helpful if you do business in an industry that may not be familiar to the readers of the business plan.

Tips for creating an effective business plan

Use clear, simple language. It’ll be easier to win people over if your plan is easy to read. Steer clear of industry jargon, and if you must use any phrases the average adult won’t know, be sure to define them.

Emphasize what makes your business unique. Investors and bankers want to know how you will solve a problem or gap in the marketplace differently from anyone else. Make sure you’re conveying your differentiating factors.

Nail the details. An ideal business plan will be detailed and accurate. Make sure that any financial projections you make are realistic and grounded in solid market research. (If you need help in making your calculations, you can get free advice at SCORE.) Seasoned bankers and investors will quickly spot numbers that are overly optimistic.

Take time to polish it. Your final version of the plan should be neat and professional with an attractive layout and copy that has been carefully proofread.

Include professional photos. High-quality shots of your product or place of business can help make it clear why your business stands out.

Updating an existing business plan

Some business owners in rapidly growing businesses update their business plan quarterly. Others do so every six months or every year. When you update your plan make sure you consider these three things:

• Are your goals still current? As you’ve tested your concept, your goals may have changed. The plan should reflect this.
• Have you revised any strategies in response to feedback from the marketplace? You may have found that your offerings resonated with a different customer segment than you expected or that your advertising plan didn’t work and you need to try a different approach. Given that investors will want to see a marketing and advertising plan that works, keeping this section current will ensure you are always ready to meet with one who shows interest.
• Have your staffing needs changed? If you set ambitious goals, you may need help from team members or outside consultants you did not anticipate when you first started the business. Take stock now so you can plan accordingly.

Final thoughts

Most business owners don’t follow their business plans exactly. But writing one will get you off to a much better start than simply opening your doors and hoping for the best, and it will be easier to analyze any aspects of your business that aren’t working later so you can course-correct. Ultimately, it may be one of the best investments you can make in the future of your business.

Business plan FAQs

What are common mistakes when writing a business plan.

The biggest mistake you can make when writing a business plan is creating one before the idea has been properly researched and tested. Not every idea is meant to become a business. Other common mistakes include:

• Not describing your management team in a way that is appealing to investors. Simply cutting and pasting someone’s professional bio into the management section won’t do the trick. You’ll want to highlight the credentials of each team member in a way that is relevant to this business.
• Failing to include financial projections — or including overly optimistic ones. Investors look at a lot of business plans and can tell quickly whether your numbers are accurate or pie in the sky. Have a good small business accountant review your numbers to make sure they are realistic.
• Lack of a clear exit strategy for investors. Investors may want the option to cash out eventually and would want to know how they can go about doing that.
• Slapdash presentation. Make sure to fact-check any industry statistics you cite and that any charts, graphs or images are carefully prepared and easy to read.

What are the different types of business plans?

There are a variety of styles of business plans. Here are three major types:

Traditional business plan. This is a formal document for pitching to investors based on the outline in this article. If your business is a complicated one, the plan may exceed the typical length and stretch to as many as 50 pages.

One-page business plan. This is a simplified version of a formal business plan designed to fit on one page. Typically, each section will be described in bullet points or in a chart format rather than in the narrative style of an executive summary. It can be helpful as a summary document to give to investors — or for internal use. Another variation on the one-page theme is the business model canvas .

Lean plan. This methodology for creating a business plan is ideal for a business that is evolving quickly. It is designed in a way that makes it easy to update on a regular basis. Lean business plans are usually about one page long. The SBA has provided an example of what this type of plan includes on its website.

Is the business plan for a nonprofit different from the plan for other business types?

Many elements of a business plan for a nonprofit are similar to those of a for-profit business. However, because the goal of a nonprofit is achieving its mission — rather than turning a profit — the business plan should emphasize its specific goals on that front and how it will achieve them. Many nonprofits set key performance indicators (KPIs) — numbers that they track to show they are moving the needle on their goals.

Nonprofits will generally emphasize their fundraising strategies in their business plans rather than sales strategies. The funds they raise are the lifeblood of the programs they run.

What is the difference between a business plan, a strategic plan and a marketing plan?

A strategic plan is different from the type of business plan you’ve read about here in that it emphasizes the long-term goals of the business and how your business will achieve them over the long run. A strong business plan can function as both a business plan and a strategic plan.

A marketing plan is different from a business plan in that it is focused on four main areas of the business: product (what you are selling and how you will differentiate it), price (how much your products or services will cost and why), promotion (how you will get your ideal customer to notice and buy what you are selling) and place (where you will sell your products). A thorough business plan may cover these topics, doing double duty as both a business plan and a marketing plan.

Explore more

Editable business plan workbook

Starting a new business

1 . Francis J. Green and Christian Hopp. “Research: Writing a Business Plan Makes Your Startup More Likely to Succeed.” HBR. July 14, 2017. Available online at https://hbr.org/2017/07/research-writing-a-business-plan-makes-your-startup-more-likely-to-succeed.

2 . CorpNet, “The Startup Business Plan: Why It’s Important and How You Can Create One,” June 29, 2022.

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How to get started creating your business plan, a successful business plan can help you focus your goals and take actionable steps toward achieving them. here’s what to consider as you develop your plan..

Regardless of whether or not you’re pitching to investors and lenders, starting a business requires a plan. A business plan gives you direction, helps you qualify your ideas and clarifies the path you intend to take toward your goal.

Four important reasons to write a business plan:

• Decision-making:  Business plans help you eliminate any gray area by writing specific information down in black and white. Making tough decisions is often one of the hardest and most useful parts of writing a business plan. 
• A reality check:  The first real challenge after deciding to launch a new venture may be writing the business plan. Through the process, you may realize your business idea is a bit flawed or not yet fully developed. This may feel like extra work, but the effort you put into improving your idea during this step can bolster your chance of future success. 
• New ideas: Discovering new ideas, different approaches and fresh perspectives are invaluable parts of the business planning process. Working closely with your concept can lead to unexpected insights, shifting your business in the right direction. 
• Developing an action plan: Your business plan is a tool that will help you outline action items, next steps and future activities. This living, breathing document shows where you are and where you want to be, with the framework you need to get there.

Business plan guide: How to get started

Use this exercise to gather some of the most important information. When you're ready to put an outline together, follow our standard business plan template (PDF) and use this business plan example to use as a guide as you fill in your outline. Once your outline is finalized, you can share it with business partners, investors or banks as a tool to promote your concept.

• Vision: Your vision statement sets the stage for everything you hope your business will accomplish going forward. Let yourself dream, pinpointing the ideas that will keep you inspired and motivated when you hit a bump in the road. 
• Mission: A mission statement clarifies the purpose of your business and guides your plan, ultimately answering the question, "Why do you exist?" 
• Objectives: Use your business objectives to define your goals and priorities. What are you going to accomplish with your business, and in what timeframe? These touchstones will drive your actions and help you stay focused. 
• Strategies: Your objectives describe what you’re going to do, while your strategies describe how you’re going to do it. Consider your goals here, and identify the different ways you’ll work to reach them. 
• Startup capital: Determine what your startup expenses will be. Having a clear idea will allow you to figure out where the money is coming from and help you spend what you have in the right areas. 
• Monthly expenses: What do you estimate your business’ ongoing monthly expenses will be? This may change significantly over time — consider what your expenditure could be immediately after launch, in three months, in six months and in one year. 
• Monthly income: In order to cover your expenses (and hopefully make a profit), you will need to estimate your income. What are your revenue streams? It's always wise to diversify your income. That way, you won’t be tied to one stream that might not be lucrative as quickly as you need it to be. 
• Goal-setting and creating an action plan: Once you have all the specifics outlined, it's time to set up the step-by-step action items explained in the companion guide, a standard business plan outline. This process will utilize the hard work you've already done, breaking each step down in a way that you can follow.   

A business plan isn’t necessarily a static document that you create once and then forget about. You can use it as a powerful tool by referencing it to adjust your priorities, stay on track and keep your goals in sight.

Business plan: An outline

Use this exercise to gather important information about your business.

Answer these questions to start your planning process. Your responses will provide important information about your business, which you can use as an overview to develop your plan further.

• What is your dream? 
• What do you feel inspired to do or create?
• What keeps you motivated, even in the face of uncertainty?  
• Why does this business exist? 
• What purpose(s) or need(s) does it fulfill for customers?   

Objectives 

• List the goals of your company, then number them in order of importance. 
• What will the business accomplish when it’s fully established and successful? 
• How much time will it take to reach this point?  
• For each goal or objective listed above, write one or more actions required to complete it.   

Startup capital 

• List any and all startup expenses that come to mind. 
• Next to each: 
• Estimate the cost of any expenses you can. 
• List the most likely source of the funding. 
• Circle the high-priority expenses. 
• Assess whether your available capital is going toward the high-priority items. If not, reconsider the way you will allocate funds.  

Monthly expenses

• If you can, estimate your business’ ongoing monthly expenses immediately after launch, in three months, in six months and in one year. 
• If you can’t, what information will you need in order to estimate your expenses?  

Monthly income 

• What are your revenue streams? Estimate your monthly income accordingly. 
• Which revenue sources deliver fast or slow returns? Are there other sources you could consider to diversify assets?  
• After completing your outline, reference your responses as you work through a traditional business plan guide. This next step will allow you to expand and add more detailed information to your plan. 
• When you’re ready to make your formal plan, reference this companion guide, a standard business plan outline  (PDF). We've also included a  business plan example  to help as you fill in your outline. 

Learn how U.S. Bank can support you and your business needs at usbank.com/small-business.

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Bank Business Plan [Sample Template]

By: Author Tony Martins Ajaero

Home » Business ideas » Financial Service Industry » Bank

Are you about starting a bank? If YES, here is a complete sample commercial bank business plan template & feasibility report you can use for FREE .

Okay, so we have considered all the requirements for starting a bank . We also took it further by analyzing and drafting a sample bank business marketing plan template backed up by actionable guerrilla marketing ideas for banks. So let’s proceed to the business planning section.

Why Start a Bank?

Starting your own bank is a huge step and needs a good deal of planning and preparation. Extensive information about the founders, the business plan, senior management team, finances, capital adequacy, risk management infrastructure, and other relevant factors must be provided to the appropriate authorities.

There are also a number of legal regulations and requirements that must be fulfilled in order to start your own bank. Some of these requirements are dependent upon the regulations in the niche you wish to establish your bank.

As hard as the task of starting a bank can be, anyone who wishes to start their own bank is able to enjoy the many benefits of making a major investment. Although the process of registering and setting up a bank involves lengthy planning and a relatively complex licensing procedure, once it is completed, the owner is able to conduct financial activity in their chosen niche.

Note that the very first step when starting your bank is to choose the niche and type of activity which you wish to engage in. Before you obtain the necessary licensing from the financial regulatory body, it is very crucial you identify whether you wish to specialize in investment banking or trade finance.

The advantages of owning your own bank are huge and include the potential to make large profits during a short period.

Note that if you know your target market and your target market’s specific requirements, you will be in a better position to provide a range of attractive services. To successfully start and run this business, it is advised you seek the help of a professional consultancy firm.

Through the advice and guidance of expert consultants, you will be able to establish a banking institution in a professional manner. Also have it in mind that any proposed bank must first receive the approval of a federal or state banking charter.

Before granting a charter, the chartering regulator must determine that the applicant bank has a reasonable chance for success and will operate in a safe and sound manner.

Then, the proposed bank must obtain approval for deposit insurance from the Federal Deposit Insurance Corporation. Additional approvals are required from the Federal Reserve if, at formation, a holding company would control the new bank or a state-chartered bank would become a member of the Federal Reserve.

A Sample Bank Business Plan Template

1. industry overview.

According to global banking industry reports, part of the broad financial services market, bank credit remain the leading market segment, with around 60% of the overall market in terms of value. Statistics has shown that the EU is the largest regional market, with over 57% of the global market.

Note that the economic recession that began in 2008 affected the industry and resulted in the crash of several financial institutions, which in turn led to the examination of practices and deployment of new guidelines in the banking industry.

But reports have it that the sector is beginning to rebound, and cross-border investment is one area contributing to recovery, with a few big banks dominating certain national markets. Advantages of cross-border practices include economies of scale, though institutions must compete with established domestic banks.

It’s very important to state that in the world retail banking and bank lending sectors, mortgage lending represents the leading market segment, accounting for almost 76% of the overall market in terms of value. Other key segments of the banking industry include private banking and payments business.

Note that in the US banking sector, experts believe that market growth will be driven by cross-border expansion due to the breaking down of obstacles to cross-border investment.

Competition between international banks is also expected to aid market growth along with the introduction of new products, reduction of costs and launching of new services. Report also has it that mobile and internet banking are becoming increasingly intertwined, especially due to the advent and success of smartphones. This provides consumers with convenient access to internet banking.

Have it in mind that the global mobile internet market will continue to drive the expansion of the mobile banking services sector. Report has shown that banking institutions are responding by launching downloadable applications and encouraging consumers to bank online and through mobile devices by rolling out mobile and internet banking services.

2. Executive Summary

Apex Investment Bank, LLC (AIB LLC) is a Portland Oregon based investment bank that will provide investment packages, underwriting, proprietary trading, and investment management for its investors. Our objective at AIB LLC is to create value for owners, employees, and investors through the establishment of an investment bank designed for the Third Generation.

This Generation is explicitly defined in the ground breaking research effort by Lincoln Swan & Co., Inc. and Netley Strategic business Group as a stage in the investment industry requiring a special set of skills for success. We at AIB LLC have leveraged this study, with more other studies, and perhaps most importantly, our own experience in the industry, to define a plan for the success of our clients.

Portland’s location is beneficial for several industries. Relatively low energy cost, accessible resources, north–south and east–west Interstates, international air terminals, large marine shipping facilities, and both west coast intercontinental railroads are all economic advantages.

AIB LLC will be structured as a Limited Liability Company with excellent plans to make use of industry research performed by one of our founding entrepreneurs, Solomon Drane during his professional career in investment management research.

Within the past three years, Solomon Drane has conducted research visits at the investment offices of over 80 companies. He has also held countless meetings with key investment professionals from around the globe either in person or via telephone conference.

We at AIB LLC plan to offer our clients the opportunity to assume minority ownership positions in exchange for contributions to our operating capital and for providing seed assets to establish the investment products described herein.

It is very important to state that this document alone does not create an offer of any type, nor does it give any guarantee, financial, or otherwise. This is a well detailed business plan designed to strategically dictate AIB LLC plans and visions for the next five years. It is open to correction or improvement within or after the specified time.

3. Our Products and Services

We at AIB LLC will provide investment packages and underwrite securities for sale to private investors and the general public among companies that are seeking to raise capital. At the onset of operations, we at AIB LLC will solely seek to sell debt instruments on behalf of our customers.

The standard fee for this service is 8% of the total underwritten instrument. We at AIB LLC will also solicit capital from accredited investors with the purpose of making use of this capital to make investment marketable securities. Our goal is to generate compounded annual returns of 30% to 35% per year on capital invested into our Bank’s portfolio holdings. We also plan to make sure that our management retains a 25% ownership interest at AIB LLC.

4. Our Mission and Vision Statement

• Our vision at AIB LLC is to develop into a large scale investment bank that will provide underwriting income, advisory income, dividend income, capital appreciation, and interest income to investors.
• Our mission at AIB LLC 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

We at AIB LLC understand that the strength of our management team and board of directors is perhaps the most important factor in starting a bank and effectively providing for its future success. We also found out through our detailed research that for a new bank charter to be approved for us, all our senior management team must be experienced bankers with a history of relevant success.

The more reason we made sure our board of directors are made up of individuals with successful careers in business, banking, and other fields, and have representation in the necessary disciplines.

We also understand the role of the board and management as investors 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.

We also understand that the typical investment bank is operated on a rigid, strict hierarchy, than most corporate or financial institutions. We have taken our time to analyse our market and what we need that is why we have decided to start with the listed workforce.

Managing director

• Senior vice president

Vice president

Investment Banking Associate

Investment Banking Analyst

• Marketing manager
• Security man

5. Job Roles and Responsibilities

• Broaden and/or enhance the bank’s industry coverage,
• Will partner with the firm’s leadership to grow and build the bank
• Will tirelessly work to deliver superior results to the firms’ clients
• Participate as a key member of the senior leadership team, contributing to the strategy, growth and success of the firm
• Lead efforts on sell-side and buy-side acquisition assignments, refinancing, recapitalization and restructuring assignments
• Interact seamlessly with prospects, clients, acquirors, 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 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 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 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 analyzing 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.
• Attends industry conferences and training sessions so as to present innovative ideas to clients
• Responsible for providing leadership and overseeing the work of the subordinate members.
• Call on prospective clients such as privately held business owners, publicly traded companies and private equity firms.
• Conceptualize, organize and deliver new business presentations.
• Lead transaction implementation across industry groups.
• Manage, educate and develop banking analysts and associates.
• Develop marketing and new business presentations.
• Monitor financial analysis and modeling.
• Perform and analyze industry research.
• Create client presentations, proposals, engagement letters term sheets, legal agreements and offer memorandums.
• 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.
• 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 pitchbooks.
• 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.

Sales and Marketing director

• In charge of organizing external research and coordinating all the internal sources of information to retain the organizations’ best customers and attract new ones
• 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
• It’s the job of the director to supervise implementation, advocate for the customer’s needs, and communicate with clients
• Keep all customer contact and information
• Represents the company in strategic meetings
• Aid to increase sales and growth for the business
• Keep note and make sure the toiletries and supplies don’t run out of stock
• Ensures that both the interior and exterior of the firm are always clean
• Handles any other duty as assigned by the Vice president

Security guard

• The security guard is in charge of protecting the firm and its environs
• Also controls traffic and organize parking
• He is 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

We at AIB LLC understand that the very first step of starting a new bank is to build a strong business and strategic plan. We believe that this plan must consider the proposed business of the new bank, its financial and managerial resources and prospects for success, the convenience and needs of the public, and the effect of competition.

This strong business and strategic plan supported by detailed financial projections and appropriate policies and procedures form the basis of successful regulatory applications of a bank charter.

We at AIB LLC hope to establish a lucrative investment bank that will serve the needs of our clients and also bring in profits for our founders. We took time to conduct a detailed SWOT analysis for AIB LLC. The details and results are explained below.

According to our SWOT analysis, our strength at AIB LLC 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 company profile even before bidding for investment banking contracts from corporate organizations.

As the investment 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 bank after completing the proper examinations and filings.

• Opportunities

The banking sector has become one of the fastest growing business sectors in the U.S. economy. Note that computerized technologies allow financial firms to operate advisory, investment banking, and brokerage services anywhere in the country.

In time past, most financial firms 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 firm 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;

• Market Risk – A high correlation 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.
• Performance Risk – It is understood that 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.
• Business/Operating Risk – Beyond the third full year of operation, 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

Experts believe this industry will continue to experience growth in all parts of the world especially in developed countries such as united states of America, Canada, United Kingdom , Germany, Australia, South Korea, Japan, China et al.

According to industry data, the industry brings in a whooping sum of $105 billion annually with an annual growth rate projected at -13.0 percent within 2011 and 2016. Although the number of industry activities has not deviated dramatically over the five-year period, the share of revenue that each activity accounts for has undergone substantial volatility.

It is believed that the products and services in the Investment industry differ considerably on a company-by-company basis, largely depending on operator size.

It’s very important to state that small and medium size investment banks target niche industries and small companies and depend more heavily on traditional investment banking activities such as underwriting and financial advisory. Alternatively, major industry players earn a substantial share of revenue from trading activities.

Note that one factor that attract entrepreneurs to the investment banking business despite the huge capital requirements and the high risk is that the venture is profitable. We have made plans to always stay ahead of industry trend and also to get the required certifications and license and also meet the standard capitalization for an investment bank in the United States.

8. Our Target Market

Our target market at AIB LLC will be greatly dependent on the phase of our product in its development cycle. Have it in mind that most of the marketing opportunities 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.”

We at AIB LLC also believe that the high net worth and retail marketplace 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 businesses 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.

Our competitive advantage

Our Competitive Advantage at AIB LLC is specified in the three P’s commonly associated with investment firms: People, Process, and Performance. The first two determine the latter. Although 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 AIB LLC.

We believe that the very first is the people. Bright, energetic, talented, and knowledgeable individuals compose the core of the team we have at AIB LLC. We were able to note from our rigorous research that the most qualified investment professionals are attracted to efficient investment 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

We at AIB LLC understand 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. After that, successful products should be aggressively marketed if capacity to manage additional assets exists.

Although a three to five-year period tend to seem like a century compared to the technology world, it is really quite reasonable considering 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.

AIB hallmark investment product will be the AIB 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.

Sources of Income

We believe that our primary income at AIB LLC will come from providing our clients with investment packages, securities underwriting and advisory services in regards to mergers and acquisitions. AIB LLC 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 for mergers and acquisition operations. 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

We at AIB LLC expect to turn over approximately 1/3 of our portfolio each year. We strongly believe that this is consistent with an average holding period of three years. Generally, we would love for all holdings to be long-term investments, so we will identify stocks we will be comfortable with if we were “locked in” for three years.

This forces 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.

11. Publicity and Advertising Strategy

We understand the importance of creating a good publicity plan that will boost our brand and help us stay consistent in the industry.

That is why we contacted Advertising Experts called Kinks Global, to help us create publicity and advertising strategies that will help us at AIB LLC to attract and keep our target audience interested. Listed below is the summary of strategies detailed by Kinks Global for our Bank.

• Place adverts on both print (community based newspapers and magazines) and electronic media platforms; we will also advertise AIB LLC on financial magazines, real estate and other relevant financial programs on radio and TV
• Introduce AIB LLC 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 Alexandria.
• Advertise AIB LLC in important financial and business related magazines, newspapers, TV and radio stations.
• Place AIB LLC on yellow pages ads (local directories)
• Attend important international and local real estate, finance and business expos, seminars, and business fairs et al
• 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 billboards at strategic locations
• Share our fliers and handbills in target areas all around Portland

12. Our Pricing Strategy

Firms in this industry 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 investment banking is a very risky venture, it is still profitable, 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 AIB LLC plan to charge based on percentage and also a fix consultancy/business administrative fee. We believe that in the 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 diverse platforms 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 AIB LLC.

• Payment through bank transfer
• Payment through online bank transfer
• Payment with check
• Payment with bank draft

13. Startup Expenditure (Budget)

We have noted that banks are expected 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 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 banks are generally subject to additional criteria that remain in place until the bank’s operations become well established and profitable. We at AIB LLC 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 for developing local and other investors in the bank. We have analyzed our needs and we plan to spend our startup funds judiciously. Outlined below is a detailed financial projection and costing for starting AIB LLC;

• 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 Portland Delta State (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 AIB LLC 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 AIB LLC.

• Generating Startup Capital for AIB LLC

AIB LLC is a licensed and registered investment bank which is capitalized by five principal investors, Mr Solomon Drane, Mrs Agnes Church, Dr Mel Stanford, Mr Kelvin Cruff and Prof. John Thomas.

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, we have outlined the few ways we can acknowledge funding. These ways may include;

• Generate part of the startup capital from the five principal investors
• Agreeing to angel investors
• Apply for business loan from the Federal Reserve Bank (if need be)

Note: AIB LLC has been able to generate an enormous $15 million from its five principal investors, who aligned and individually dished out $3,000,000 each. We have also aligned with angel investors to inject $20 million into AIB LLC, with the hope of making profits and establishing a solid business.

14. Sustainability and Expansion Strategy

Our primary goal of the first full quarter of operation (February- May 2019) is to secure funding from outside sources. Before that, our management team at AIB LLC has a budget of $300,000 to be used for finding investors, forming a legal LLC, and registering the bank and its products with the SEC.

The amount sought from investors will be approximately $20 million, which should see the business through to profitability near the completion of the third year. We at AIB LLC believe that this break-even point equates roughly to an asset under management level of approximately $130 million.

One can easily see that even modest points beyond this break-even level can be highly lucrative. It is also important to note that excess cash will be re-deployed into the business once a level of sustainability in revenue has been reached. Our primary purpose for this type of reinvestment would solely focus on a “second stage” marketing plan to increase distribution.

We also believe that a word of note is also warranted as it relates to the cash flow statement of our bank. Have it in mind that one appealing 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 note that common practice in the investment industry is to bill at each quarter-end. For instance, our annual fee of 1% would be applied to our clients’ accounts five times per year at 0.20%. We at AIB LLC can strongly attest to the fact that economic motivation is great.

Growth rates for the investment industry are projected to range from 25% to 24% in each of the next three years. We believe that 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 at AIB LLC believe that the certainty coupled with the above average growth rate differentiates this opportunity from other venture investments. Also have it in mind that our conservative 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.

Check List/Milestone

• Business Name Availability Check : Completed
• Business Incorporation: Completed
• Opening of Corporate 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 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 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 banks, financial lending institutions, vendors and key players in the industry: In Progress

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How to Write a Successful Commercial Bank Business Plan (+ Template)

Creating a business plan is essential for any business, but it can be especially helpful for commercial bank businesses that want to improve their strategy or raise funding.

A well-crafted business plan not only outlines the vision for your company but also documents a step-by-step roadmap of how you will accomplish it. To create an effective business plan, you must first understand the components essential to its success.

This article provides an overview of the key elements that every commercial bank business owner should include in their business plan.

Download the Ultimate Business Plan Template

What is a Commercial Bank Business Plan?

A commercial bank business plan is a formal written document describing your company’s business strategy and feasibility. It documents the reasons you will be successful, your areas of competitive advantage, and it includes information about your team members. Your business plan is a key document that will convince investors and lenders (if needed) that you are positioned to become a successful venture.

Why Write a Commercial Bank Business Plan?

A commercial bank business plan is required for banks and investors. The document is a clear and concise guide to your business idea and the steps you will take to make it profitable.

Entrepreneurs can also use this as a roadmap when starting their new company or venture, especially if they are inexperienced in starting a business.

Writing an Effective Commercial Bank Business Plan

The following are the critical components of a successful commercial bank business plan:

Executive Summary

The executive summary of a commercial bank business plan is a one- to two-page overview of your entire business plan. It should summarize the main points, which will be presented in full in the rest of your business plan.

• Start with a one-line description of your commercial bank company
• Provide a summary of the key points in each section of your business plan, which includes information about your company’s management team, industry analysis, competitive analysis, and financial forecast, among others.

Company Description

This section should include a brief history of your company. Include a short description of how your company started and provide a timeline of milestones your company has achieved.

You may not have a long company history if you are just starting your commercial bank business. Instead, you can include information about your professional experience in this industry and how and why you conceived your new venture. If you have worked for a similar company or been involved in an entrepreneurial venture before starting your commercial bank firm, mention this.

You will also include information about your chosen commercial bank business model and how, if applicable, it is different from other companies in your industry.

Industry Analysis

The industry or market analysis is a crucial component of a commercial bank business plan. Conduct thorough market research to determine industry trends and document the size of your market. 

Questions to answer include:

• What part of the commercial bank industry are you targeting?
• How big is the market?
• What trends are happening in the industry right now (and if applicable, how do these trends support your company’s success)?

You should also include sources for your information, such as published research reports and expert opinions.

Customer Analysis

This section should include a list of your target audience(s) with demographic and psychographic profiles (e.g., age, gender, income level, profession, job titles, interests). You will need to provide a profile of each customer segment separately, including their needs and wants.

For example, commercial bank customers may include small businesses, startups, and entrepreneurs.

You can include information about how your customers decide to buy from you as well as what keeps them buying from you.

Develop a strategy for targeting those customers who are most likely to buy from you, as well as those that might be influenced to buy your products or commercial bank services with the right marketing.

Competitive Analysis

The competitive analysis helps you determine how your product or service will differ from competitors and what your unique selling proposition (USP) might be that will set you apart in this industry.

For each competitor, list their strengths and weaknesses. Next, determine your areas of competitive advantage; that is, in what ways are you different from and ideally better than your competitors.

Below are sample competitive advantages your commercial bank business may have:

• Proven industry experience
• Extensive knowledge of the market
• Robust and innovative products and services
• Strong financial position
• Excellent customer service

Marketing Plan

This part of the business plan is where you determine and document your marketing plan. . Your plan should be laid out, including the following 4 Ps.

• Product/Service : Detail your product/service offerings here. Document their features and benefits.
• Price : Document your pricing strategy here. In addition to stating the prices for your products/services, mention how your pricing compares to your competition.
• Place : Where will your customers find you? What channels of distribution (e.g., partnerships) will you use to reach them if applicable?
• Promotion : How will you reach your target customers? For example, you may use social media, write blog posts, create an email marketing campaign, use pay-per-click advertising, or launch a direct mail campaign. Or you may promote your commercial bank business via PR, by being quoted in the media, or by writing articles for industry publications.

Operations Plan

This part of your commercial bank business plan should include the following information:

• How will you deliver your product/service to customers? For example, will you do it in person or over the phone?
• What infrastructure, equipment, and resources are needed to operate successfully? How can you meet those requirements within budget constraints?

The operations plan is where you also need to include your company’s business policies. You will want to establish policies related to everything from customer service to pricing, to the overall brand image you are trying to present.

Finally, and most importantly, your Operations Plan will outline the milestones your company hopes to achieve within the next five years. Create a chart that shows the key milestone(s) you hope to achieve each quarter for the next four quarters, and then each year for the following four years. Examples of milestones for a commercial bank business include reaching $X in sales. Other examples include adding new products, entering new markets, or expanding your distribution channels.

Management Team

List your team members here, including their names and titles, as well as their expertise and experience relevant to your specific commercial bank industry. Include brief biography sketches for each team member.

Particularly if you are seeking funding, the goal of this section is to convince investors and lenders that your team has the expertise and experience to execute your plan. If you are missing key team members, document the roles and responsibilities you plan to hire for in the future.

Financial Plan

Here, you will include a summary of your complete and detailed financial plan (your full financial projections go in the Appendix). 

This includes the following three financial statements:

Income Statement

Your income statement should include:

• Revenue : how much revenue you generate.
• Cost of Goods Sold : These are your direct costs associated with generating revenue. This includes labor costs, as well as the cost of any equipment and supplies used to deliver the product/service offering.
• Net Income (or loss) : Once expenses and revenue are totaled and deducted from each other, this is the net income or loss.

Sample Income Statement for a Startup Commercial Bank Firm

Balance Sheet

Include a balance sheet that shows your assets, liabilities, and equity. Your balance sheet should include:

• Assets : Everything you own (including cash).
• Liabilities : This is what you owe against your company’s assets, such as accounts payable or loans.
• Equity : The worth of your business after all liabilities and assets are totaled and deducted from each other.

Sample Balance Sheet for a Startup Commercial Bank Firm

Cash Flow Statement

Include a cash flow statement showing how much cash comes in, how much cash goes out and a net cash flow for each year. The cash flow statement should include cash flow from:

• Investments

Below is a sample of a projected cash flow statement for a startup commercial bank business.

Sample Cash Flow Statement for a Startup Commercial Bank Firm

Finally, you will also want to include an appendix section including:

• Your complete financial projections
• A complete list of your company’s business policies and procedures related to the rest of the business plan (marketing, operations, etc.)
• Any other documentation which supports what you included in the body of your business plan.

Writing a good business plan gives you the advantage of being fully prepared to launch and grow your commercial bank company. It not only outlines your business vision but also provides a step-by-step process of how you are going to accomplish it.

Now that you know how to write a business plan for your commercial bank, you can get started on putting together your own.  

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How To Write A Business Plan (2024 Guide)

Updated: Apr 17, 2024, 11:59am

Table of Contents

Brainstorm an executive summary, create a company description, brainstorm your business goals, describe your services or products, conduct market research, create financial plans, bottom line, frequently asked questions.

Every business starts with a vision, which is distilled and communicated through a business plan. In addition to your high-level hopes and dreams, a strong business plan outlines short-term and long-term goals, budget and whatever else you might need to get started. In this guide, we’ll walk you through how to write a business plan that you can stick to and help guide your operations as you get started.

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Drafting the Summary

An executive summary is an extremely important first step in your business. You have to be able to put the basic facts of your business in an elevator pitch-style sentence to grab investors’ attention and keep their interest. This should communicate your business’s name, what the products or services you’re selling are and what marketplace you’re entering.

Ask for Help

When drafting the executive summary, you should have a few different options. Enlist a few thought partners to review your executive summary possibilities to determine which one is best.

After you have the executive summary in place, you can work on the company description, which contains more specific information. In the description, you’ll need to include your business’s registered name , your business address and any key employees involved in the business. 

The business description should also include the structure of your business, such as sole proprietorship , limited liability company (LLC) , partnership or corporation. This is the time to specify how much of an ownership stake everyone has in the company. Finally, include a section that outlines the history of the company and how it has evolved over time.

Wherever you are on the business journey, you return to your goals and assess where you are in meeting your in-progress targets and setting new goals to work toward.

Numbers-based Goals

Goals can cover a variety of sections of your business. Financial and profit goals are a given for when you’re establishing your business, but there are other goals to take into account as well with regard to brand awareness and growth. For example, you might want to hit a certain number of followers across social channels or raise your engagement rates.

Another goal could be to attract new investors or find grants if you’re a nonprofit business. If you’re looking to grow, you’ll want to set revenue targets to make that happen as well.

Intangible Goals

Goals unrelated to traceable numbers are important as well. These can include seeing your business’s advertisement reach the general public or receiving a terrific client review. These goals are important for the direction you take your business and the direction you want it to go in the future.

The business plan should have a section that explains the services or products that you’re offering. This is the part where you can also describe how they fit in the current market or are providing something necessary or entirely new. If you have any patents or trademarks, this is where you can include those too.

If you have any visual aids, they should be included here as well. This would also be a good place to include pricing strategy and explain your materials.

This is the part of the business plan where you can explain your expertise and different approach in greater depth. Show how what you’re offering is vital to the market and fills an important gap.

You can also situate your business in your industry and compare it to other ones and how you have a competitive advantage in the marketplace.

Other than financial goals, you want to have a budget and set your planned weekly, monthly and annual spending. There are several different costs to consider, such as operational costs.

Business Operations Costs

Rent for your business is the first big cost to factor into your budget. If your business is remote, the cost that replaces rent will be the software that maintains your virtual operations.

Marketing and sales costs should be next on your list. Devoting money to making sure people know about your business is as important as making sure it functions.

Other Costs

Although you can’t anticipate disasters, there are likely to be unanticipated costs that come up at some point in your business’s existence. It’s important to factor these possible costs into your financial plans so you’re not caught totally unaware.

Business plans are important for businesses of all sizes so that you can define where your business is and where you want it to go. Growing your business requires a vision, and giving yourself a roadmap in the form of a business plan will set you up for success.

How do I write a simple business plan?

When you’re working on a business plan, make sure you have as much information as possible so that you can simplify it to the most relevant information. A simple business plan still needs all of the parts included in this article, but you can be very clear and direct.

What are some common mistakes in a business plan?

The most common mistakes in a business plan are common writing issues like grammar errors or misspellings. It’s important to be clear in your sentence structure and proofread your business plan before sending it to any investors or partners.

What basic items should be included in a business plan?

When writing out a business plan, you want to make sure that you cover everything related to your concept for the business,  an analysis of the industry―including potential customers and an overview of the market for your goods or services―how you plan to execute your vision for the business, how you plan to grow the business if it becomes successful and all financial data around the business, including current cash on hand, potential investors and budget plans for the next few years.

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Julia is a writer in New York and started covering tech and business during the pandemic. She also covers books and the publishing industry.

Business Plan Example and Template

Learn how to create a business plan

What is a Business Plan?

A business plan is a document that contains the operational and financial plan of a business, and details how its objectives will be achieved. It serves as a road map for the business and can be used when pitching investors or financial institutions for debt or equity financing .

A business plan should follow a standard format and contain all the important business plan elements. Typically, it should present whatever information an investor or financial institution expects to see before providing financing to a business.

Contents of a Business Plan

A business plan should be structured in a way that it contains all the important information that investors are looking for. Here are the main sections of a business plan:

1. Title Page

The title page captures the legal information of the business, which includes the registered business name, physical address, phone number, email address, date, and the company logo.

2. Executive Summary

The executive summary is the most important section because it is the first section that investors and bankers see when they open the business plan. It provides a summary of the entire business plan. It should be written last to ensure that you don’t leave any details out. It must be short and to the point, and it should capture the reader’s attention. The executive summary should not exceed two pages.

3. Industry Overview

The industry overview section provides information about the specific industry that the business operates in. Some of the information provided in this section includes major competitors, industry trends, and estimated revenues. It also shows the company’s position in the industry and how it will compete in the market against other major players.

4. Market Analysis and Competition

The market analysis section details the target market for the company’s product offerings. This section confirms that the company understands the market and that it has already analyzed the existing market to determine that there is adequate demand to support its proposed business model.

Market analysis includes information about the target market’s demographics , geographical location, consumer behavior, and market needs. The company can present numbers and sources to give an overview of the target market size.

A business can choose to consolidate the market analysis and competition analysis into one section or present them as two separate sections.

5. Sales and Marketing Plan

The sales and marketing plan details how the company plans to sell its products to the target market. It attempts to present the business’s unique selling proposition and the channels it will use to sell its goods and services. It details the company’s advertising and promotion activities, pricing strategy, sales and distribution methods, and after-sales support.

6. Management Plan

The management plan provides an outline of the company’s legal structure, its management team, and internal and external human resource requirements. It should list the number of employees that will be needed and the remuneration to be paid to each of the employees.

Any external professionals, such as lawyers, valuers, architects, and consultants, that the company will need should also be included. If the company intends to use the business plan to source funding from investors, it should list the members of the executive team, as well as the members of the advisory board.

7. Operating Plan

The operating plan provides an overview of the company’s physical requirements, such as office space, machinery, labor, supplies, and inventory . For a business that requires custom warehouses and specialized equipment, the operating plan will be more detailed, as compared to, say, a home-based consulting business. If the business plan is for a manufacturing company, it will include information on raw material requirements and the supply chain.

8. Financial Plan

The financial plan is an important section that will often determine whether the business will obtain required financing from financial institutions, investors, or venture capitalists. It should demonstrate that the proposed business is viable and will return enough revenues to be able to meet its financial obligations. Some of the information contained in the financial plan includes a projected income statement , balance sheet, and cash flow.

9. Appendices and Exhibits

The appendices and exhibits part is the last section of a business plan. It includes any additional information that banks and investors may be interested in or that adds credibility to the business. Some of the information that may be included in the appendices section includes office/building plans, detailed market research , products/services offering information, marketing brochures, and credit histories of the promoters.

Business Plan Template

Here is a basic template that any business can use when developing its business plan:

Section 1: Executive Summary

• Present the company’s mission.
• Describe the company’s product and/or service offerings.
• Give a summary of the target market and its demographics.
• Summarize the industry competition and how the company will capture a share of the available market.
• Give a summary of the operational plan, such as inventory, office and labor, and equipment requirements.

Section 2: Industry Overview

• Describe the company’s position in the industry.
• Describe the existing competition and the major players in the industry.
• Provide information about the industry that the business will operate in, estimated revenues, industry trends, government influences, as well as the demographics of the target market.

Section 3: Market Analysis and Competition

• Define your target market, their needs, and their geographical location.
• Describe the size of the market, the units of the company’s products that potential customers may buy, and the market changes that may occur due to overall economic changes.
• Give an overview of the estimated sales volume vis-à-vis what competitors sell.
• Give a plan on how the company plans to combat the existing competition to gain and retain market share.

Section 4: Sales and Marketing Plan

• Describe the products that the company will offer for sale and its unique selling proposition.
• List the different advertising platforms that the business will use to get its message to customers.
• Describe how the business plans to price its products in a way that allows it to make a profit.
• Give details on how the company’s products will be distributed to the target market and the shipping method.

Section 5: Management Plan

• Describe the organizational structure of the company.
• List the owners of the company and their ownership percentages.
• List the key executives, their roles, and remuneration.
• List any internal and external professionals that the company plans to hire, and how they will be compensated.
• Include a list of the members of the advisory board, if available.

Section 6: Operating Plan

• Describe the location of the business, including office and warehouse requirements.
• Describe the labor requirement of the company. Outline the number of staff that the company needs, their roles, skills training needed, and employee tenures (full-time or part-time).
• Describe the manufacturing process, and the time it will take to produce one unit of a product.
• Describe the equipment and machinery requirements, and if the company will lease or purchase equipment and machinery, and the related costs that the company estimates it will incur.
• Provide a list of raw material requirements, how they will be sourced, and the main suppliers that will supply the required inputs.

Section 7: Financial Plan

• Describe the financial projections of the company, by including the projected income statement, projected cash flow statement, and the balance sheet projection.

Section 8: Appendices and Exhibits

• Quotes of building and machinery leases
• Proposed office and warehouse plan
• Market research and a summary of the target market
• Credit information of the owners
• List of product and/or services

Related Readings

Thank you for reading CFI’s guide to Business Plans. To keep learning and advancing your career, the following CFI resources will be helpful:

• Corporate Structure
• Three Financial Statements
• Business Model Canvas Examples
• See all management & strategy resources
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How to write a business plan

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Every business owner can benefit from writing a business plan, including those in the early stages of launching a business . A well-crafted business plan communicates the business’s strategy for growth to key leaders and investors. It’s also an important step to getting a business loan since many lenders require it.

Let’s walk through the steps and elements of writing your ideal business plan.

Key takeaways

• A business plan outlines how you plan to bring products or services to market
• Many lenders require a business plan be included with a loan application
• You can choose to write a lean or traditional business plan
• It covers everything from market research to your marketing and financial plan.

What is a business plan?

A business plan is a document that outlines a business’s strategy for bringing a product or service to market. It describes the company, product idea and goals or steps that the business will take to achieve growth. The document includes multiple sections that provide insight into each part of the strategy.

The business plan can be a simple document called a lean business plan or a more detailed traditional business plan. The lean business plan covers the basics of the company, product, target customers and how it will get revenue. It may only be one page with short descriptions for each part.

The traditional business plan includes more depth on the goals, measurements, research and marketing strategies to get the business where it’s going. Here are key differences in the information written for each type of business plan:

Although there’s no one-size-fits-all approach, follow these steps to create a strong business plan.

Write an executive summary

An executive summary is the introduction to a business plan, giving the key details about your business model and the product or service you’re offering. While there’s no strict formula for writing this section, you should include all the relevant details that you’d want a key partner or investor to know.

It should describe your product or service idea, target market and key objectives for growth within the next few years. It may also summarize your marketing and sources of revenue or funding.

You can adjust what to include based on the exact business you’re starting and its business model. Most business plans keep the executive summary to one to two pages.

Create a company description

The company description should overview important details about your company. It can state your company’s name, location and type of entity as well as describe its history. It should also clearly define the vision that you have for your company’s future in the form of a mission or vision statement.

You may also outline the structure for managing the business, listing key roles and responsibilities and the people filling those roles. Depending on the details you included in the executive summary, you might include information about your product or service.

Describe your value proposition

The value proposition is your chance to pitch what makes your business stand out. It identifies the customer’s problem or gap in the market for the product or service you’re offering. It then goes into detail about how your business will solve the problem.

The value proposition can also explain major barriers that customers have before making a decision and what your business will do to break through those barriers. It shows leaders and investors that you have a thoughtful purpose behind the business you’re creating.

State your business goals

The path to achieving success starts with knowing what success looks like. Many business plans state its main objectives in the company description. Others describe those goals in a separate part of the business plan to dive deeper into the specific goals.

You can also include key measurements you’ll use to gauge whether your business is achieving its goals. You would then use these goals in other business planning documents, further breaking them down into defined short-term steps that ladder up to the larger goals.

Outline your product and service

Next, you want to dive into the main product or service that your business is offering. Explain what the product is, how it works and the benefits that it brings to customers. If you’re planning to make multiple products, you can include a description of each product line. Show how this product or service is set apart from similar products from competitors.

You can also use this section to show how the product or service is produced, including cost of supplies and the price at which you plan to sell. Let the investors and stakeholders know if you have a trademark or patent for the products you’re creating.

Give a summary of market research

Next comes market research, the part of the plan where you do your due diligence to gather information and understand your target customers and competitors. First, you want to understand your target customers’ needs and any barriers they might have to buying your product.

You want to look for information about their demographics and how they might respond to the product you’re offering. This information will help you when designing your product and marketing it in a way that resonates with customers.

Then, you can look at the economy around your product, such as average pricing and sales revenue. This also includes research about your competitors, the market share that they hold and the barriers to entering your market. This section may include data from data research companies, surveys, focus groups and interviews.

According to the U.S. Small Business Administration , the questions you’re trying to answer include:

• Market size, or how many people may want to buy your product
• What people are willing to pay for your product
• Similar products already available
• Who your competitors are
• How your industry is doing
• Typical revenue gained by small businesses in your industry

Summarize a marketing strategy

Once you’ve clearly defined your product and who you’re selling to, you can come up with a strategy for how you’ll reach and sell to customers. In this section, you’ll include the different marketing channels you’ll use to promote your products and services.

These may include direct mailers, social media, traditional or online advertising or media events. The exact channels you use will depend on where you can easily find your target customers.

You can also describe the key messaging that you plan to use during marketing, which will pinpoint the value that it offers to customers. The marketing plan should also include the cost of marketing to different channels and your marketing budget. You can then outline the marketing goals and measurements you’ll use to see if you’re meeting those goals.

Create a logistics and operations plan

The logistics and operations section of your business plan is a detailed description of how your business will bring products and services to market. It explains how the business will run on a day-to-day basis. It should highlight your company’s management structure, give an overview of processes and describe the workflow from end to end. It can also include data on how many products you can make or how long it will take to make products or offer services.

Create a financial plan

Now that you’ve laid out the research, goals and planning, you can use that information to forecast revenue and build a financial plan. Use any past revenue or sales history as a starting point. Then, refer to your company’s recent growth and goals to calculate future financial growth.

If you’re a startup , you can use market research to estimate revenue for a startup in your industry. You can either forecast revenue manually or find software that projects revenue for you.

In your financial plan, you also want to create and track your business budget . You’ll track your estimated and actual revenue, updating regularly to keep the revenue forecast accurate and realistic. Next, you’ll list all expenses and their amounts, including one-time, variable, fixed or seasonal expenses. Here are some examples of different business expenses:

• One-time or capital expenses: Equipment, real estate, furniture, commercial vehicles, business licenses
• Variable expenses: Inventory, utilities, fuel, office supplies, shipping services, card processing fees
• Fixed expenses: Employee salaries and benefits, software, web hosting, office or equipment leases, business loan repayments

Business plan resources

Writing your business plan will take more than putting pen to paper. Try these resources to help you gather data, set up your finances and more:

• Business plan templates. Creating a business plan for the first time? Learn by looking up examples of other business plans or templates like these from Smartsheet .
• Software for accounting and financial planning. Many small businesses use Quickbooks, Xero or Netsuite to track revenue and expenses. These may also forecast revenue based on sales history.
• Business loan resources. To cover your funding needs, think through the types of business loans that would best serve your business. Once you’ve landed on a loan, compare features and interest rates to help you make a decision.
• Survey tools. For in-depth market research, you can build a survey and send to your target customers through a data research company like GWI.

Small business mentoring

Experienced mentors can guide you to making effective business decisions and unlock new potential for growth. Where to find small business mentors:

• SBA. You can find resources and free or low-cost mentors through the SBA’s local assistance tool .
• Small Business Development Centers. SBDCs provide specialized training programs in your local area covering specialized topics like marketing, data research and business management.
• Community Development Financial Institutions. CDFIs   are financial organizations like banks and credit unions that are built to develop the community. Alongside banking and lending services, CDFIs offer training programs and resources.
• SCORE. SCORE is an organization that partners with the SBA to bring resources to small business owners. Mentorship is at the core of what the organization does, and it can match you with a local mentor through its online locator tool.
• Local Chamber of Commerce. These local organizations are known for supporting business networking. They may help you find a mentorship program, or you may build a relationship with another successful entrepreneur through networking events.
• Nonprofit organizations. Some nonprofit organizations are dedicated to supporting small business owners with funding, trainings and mentorship programs. These are typically local programs. For example, NYPACE is a nonprofit that offers free consulting to underserved entrepreneurs in New York.

Bottom line

Your business plan should outline key information about your company, products and the strategy for getting those products in the hands of your customers. Every business plan looks different, but there is essential information to include in every plan, such as who your target customer is and your expected revenue. The business plan serves to help you get business funding and outline exact goals and steps to growing your company.

Frequently asked questions

Do i need a business plan to apply for a business loan, how do i write a simple business plan, what basic items should be included in a business plan.

Related Articles

How to get a startup business loan: 5 steps

How to start a small business

What is a financial plan? How to build one for your goals

How to create a business budget

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Plan a Business

Consider entrepreneurship.

The reality, according to the U.S. Small Business Administration, is that less than 50 percent of all new businesses last more than two years. They also attribute 95 percent of all business failures to the business owner’s lack of experience and expertise.

Before launching a venture of your own, strongly consider gaining experience and expertise working for someone else, especially a successful leader in the field. People with a solid track record who have thoroughly thought through their new venture have a far greater chance of success than those who have not.

In addition to experience and expertise, many successful entrepreneurs share certain personal qualities. Although it’s a rare individual who excels in  all  of the traits listed below, reviewing this list may help you decide whether entrepreneurship is a career path you’d like to pursue.

Key attributes of successful entrepreneurs

• Takes initiative.  A self-starter. Makes things happen rather than waiting and reacting. Self-directed. Independent. Doesn’t need a boss.
• Driven to achieve.  Has desire and passion to succeed. Enjoys competition. Has energy and stamina. Willing to work more than forty hours a week. Willing to sacrifice to achieve goals and dreams.
• Positive mental attitude.  Self-confident. Believes in self. Trusts own ideas, instincts, and abilities.
• Sets goals.  Creates a vision of success. Works with focus and intention.
• Plans ahead.  Creates plans and follows them. Updates plans periodically. Good at anticipating new developments.
• Resourceful.  Creative problem-solver. Imaginative and innovative. Sees better ways of doing things. Uncovers new resources and opportunities. Finds a way.
• A leader.  Takes responsibility and accepts accountability. Like to make decisions. Shows an attitude of respect for others. Motivates and inspires others. Gives others the opportunity to be great. Shares the credit for success. Gains the respect of peers.
• Good communicator.  Likes people. Has great people skills. Good listener. Effective negotiator.
• Always learning.  Open to new ideas. Learns from others.
• Leverages exceptional skills.  Makes the most of personal strengths, but doesn’t try to be and do everything.
• Has technical knowledge.  Understands both general business practices and the processes used to deliver goods and services.
• Organized.  Able to prioritize. Good time manager. Gets things done on time.
• Objective.  Able to evaluate risk. Willing to take calculated risks. Can make good decisions under pressure.
• Uses money well.  Good money manager. Sees money as a tool for business success rather than an end in itself.
• Realistic.  Accepts the ups and downs of business. Willing to face facts and change strategy or direction when needed.
• Persistent.  Has determination and self-discipline. Follows through. Meets commitments. Will dedicate however much time it takes. Never gives up.
• Bounces back.  Accepts rejection and failure without being defeated. Flexible. Adapts to changing conditions. Learns from experience and mistakes, creates new plans, and moves ahead.

As you review the items you checked, notice the items you didn’t. To succeed, you’ll need to find ways to fill your gaps.

Remember : there are millions of successful small businesses in our country, but there’s always room for one more. When you think about  your  future in the world of work, consider the option of starting a business of your own.

write a business plan

• Key components
• Most important elements

The purpose of a business plan is to serve as a roadmap for the present and a vision of the future. It can also help to attract investors for your business.  The SBA and Small Business Development Centers can help you to create a business plan. There are many books and Web sites on the subject.  Here are key components of what the plan should include:

Executive summary  – business concept, key success factors, and financial situation/needs

Company profile  – inspirational vision statement describing the business you want to create, including who your customers will be, what and how you plan to sell to them; and, a mission statement describing why your business exists and why customers will buy your product or service. The best mission statements briefly but powerfully convey a company’s commitment to its customers.

Products and services  – product/service description, positioning of products/services, and competitive evaluation of products/services

Competitive analysis  – industry overview, competition, competitor products and services, opportunities; key strengths and weaknesses compared to your competitors,

Market analysis  – market overview, market segments, and target market and customers. To show investors or lenders that you have researched the market and understand the challenges, include reasons why the venture could fail, and your strategies for addressing these risks.

Objectives  – your highest priority goals in the key areas of your business, including finance marketing, and operations. What do you want to accomplish in the near-term future? Where will you focus your time and resources? The best objectives are clearly-stated, specific, and measurable.

Strategies  – the general approaches you will take to achieve your goals. Strategies describe how you will go about making your business successful over time given the strengths and weaknesses inside your business and the opportunities and threats in the marketplace.

Plans  – the specific action steps you will take to achieve your objectives. Effective plans clearly state “who will do what by when.”

Management qualifications and operations  – key personnel, organizational structure, product/service delivery, customer service/support, facilities. To get bank financing or investors, management experience is a critical element of your plan because investors generally invest in people, not products. A lot of businesses have great product ideas, but not all have the skills and experience to succeed.

Financial information  – assumptions and comments, starting balance sheet and projection, profit-and-loss projection, cash flow projection, ratios and analyses.

If you want to attract investors or get bank financing for your business, the experience of the management team is one of the most important elements of your plan. Your product or service is almost secondary, because, in general, investors invest in people, not products.  A lot of businesses have great product ideas, but not all have the skills and experience to succeed.

Review your business plan twice a year to see if it still fits your company or if you need to make changes to your strategic direction.

a sample business plan

Find financing.

Almost every business needs at least some money to get started. Many seek additional funding at various times after the business is up and running. Where can you find the money you’ll need?

Common sources of start-up funding

If you haven’t saved all of the money you’ll need, you’ll need to combine your own investment with funds from other sources. A lender will have greater confidence in your commitment to succeed when they know you have your own personal investment in the business. Many lenders, including the SBA, often require this.

Your family and friends may believe in you and your business plan and may be willing to loan you funds. Be prepared to show them how and when you’ll be able to repay.

Loans and lines of credit from financial institutions can be a source of start-up funding. To borrow from a financial institution, you need to have good credit. Secured credit is ideal if you’re just starting out and want to build good credit history. Develop a good working relationship with your banker or lender. The more they know about you and your business, the better they can advise and assist you.

The U.S. Small Business Administration (SBA) is an independent agency of the Federal Government. Its purpose is to help people get in business, stay in business, and grow. The SBA offers a tremendous number of resources to help you start, finance and manage your business, and find new business opportunities. It can help you write a business plan, obtain start-up capital, purchase real estate, and much more. The SBA has offices throughout the United States to assist you. Learn more by visiting the SBA Web site at www.sba.gov.

examples of sba services

Starting your business:  Small Business Start-up Kit; training and counseling; business planning tutorial; special assistance programs for minorities, women, the disabled, veterans, and other groups; workshops; shareware.

Financing your business:  Loan programs, including those that focus on: microloans (up to $50,000) for start-up, newly established, or growing small businesses; low and moderate income areas. Working capital lines of credit.

Client commitments to contracts Your customers (or future customers) may be willing to sign contracts, or even pre-pay, for products or services that you commit to deliver to them.

two types of business financing

There are two basic types of business financing, debt financing and equity financing. Here is a comparison of the two:

NEW BUSINESS CHECKLIST

The best place to start in building a business is to ask yourself some basic questions. You may not have all the answers you need right now, but exploring these questions is a good way to spark your thinking and identify the areas you need to research. As you gather the answers, start putting your plan down on paper.

• What products or services will I provide?
• Who will be my customers?
• How will my products and services meet my customers’ needs?
• What equipment or special skills will I need?
• How will I advertise or promote my business?
• Who will be my competitors?
• In the eyes of my customer, how will  my  business compare to what my competitors offer?
• Where will my business be located? Do I need to buy or rent space, or can I work from home?
• Will I operate my business alone (as a sole proprietor) or as a partnership or corporation?
• Will I need to hire employees?
• How will I find people to hire? How will I pay them?
• How much money will I need to start my business?
• How much money will I need to run the business day-to-day?
• Where will I get the money to get started? Do I qualify for a personal loan?
• How will I structure my company?
• What kinds of legal regulations will my business have to meet – for example, laws regarding employees, environmental protection or import/export?
• What kinds of insurance will I need?

Also, keep in mind that there are probably resources available in your own local community, such as business development centers, to help you create your plan. Check with your local library, university or college, and search online to see what’s available in your community.

Related Resources

Launch a Business

Manage a Business

Writing a business plan: Your step-by-step guide

Learn how to write a sound business plan to help set up your business for success.

Learning how to write a sound business plan is an essential first step toward creating a successful business. Simply put, a business plan outlines your business’s overall goals, strategies, and operations, providing a long-term vision and plan for your entire business. It’s not to be confused with a business proposal, which is a sales document that pitches a specific business idea or product to a potential client or investor. A business plan can help you clarify what you want to achieve and lay out exactly how to reach those goals. This, in turn, can help you motivate your team, promote your business, and make key decisions.

A strong business plan serves as an important communication tool to potential investors and lenders. It will allow you to articulate your current financial status, sources of revenue, and how you plan to meet revenue projections. Although a business plan isn’t always required when applying for all types of credit, it often plays a significant role in SBA loan applications . While no two business plans are alike, every plan should cover the following elements.

Executive summary: Define your business

Your plan’s executive summary is your chance to introduce the business — so it needs to be concise and compelling. The summary should give a brief recap of the history and background of your business in a manner that will make the reader want to learn more about your plan. Sometimes it’s helpful to write this last — after you’ve spent some time contemplating and articulating all the details of your business.

Company summary: Delve into the details

Your business plan should explain what your product or service is and why people and businesses will want to purchase it. Be sure to highlight areas where your product or service has a clear advantage over the competition. Also, include details about pending or established copyrights or trademarks, and present or future plans for research and development (R&D).

Market analysis: Outline your strategy

A market analysis centers on the marketability of your business, who your competitors are and how you fit into the competitive landscape. In the analysis, give detailed information about your business’s industry, including the size of the market, your target market, the market need, and barriers to entry such as supply issues and regulation. Also, include information on any market tests you have conducted and identify your direct and indirect competition.

Marketing plan: Identify your niche

Here, you’ll highlight how you plan to promote your business and generate revenue. Describe in detail what your product or service does and how it will help consumers. Explain how your product is unique from others on the market, and how you will promote your business and generate revenue. Also, provide details about the product life cycle and any intellectual property issues. (Note: Some of this may reiterate or expand upon information elsewhere in your business plan.) You can protect your intellectual property , which can include names, designs and automated process, through trademarks, copyrights, non-disclosure agreements and more.

Management overview: Introduce your leaders

To highlight your human capital, describe how your business will be organized in terms of structure and leadership. Let your reader know who does what and what qualifications they have. Summarize this in your writeup, but consider providing relevant resumes, too.

Financial summary: Develop your financial plan

The financial summary, which includes details about your company’s funding sources, existing debt, any grants , as well as financial analysis, are crucial areas to lay out in detail. Explain the amount of funding your business needs and provide supporting financial data as well as financial projections . Include documents that communicate your business’s current financial status, such as income statements, balance sheets , and cash flow statements. List your expectations for revenues as well as the cost of your goods, rent, fuel, utilities, salaries, and other expenses.

The final step: Organize it logically

There are many ways you can organize the information mentioned above so you can share it with potential investors and lenders, current and prospective team members and managers, and anyone else who needs to understand your vision.

Do your research and find a business plan format that works for your business. There can be different types of plans for different types of readers, i.e. investors vs. employees, so you can modify your plan depending on your audience.

A few things to keep in mind:

• Make it easy to find key info . Create a cover page and table of contents, so information is easy to find. Also consider using dividers with tabs if you’re printing it out and putting it in a binder.
• Add more details as they emerge . Depending on what you do or sell, you may also want to add a section on Action Plans, which includes information on regulations, legal and compliance issues, safety processes, operational and management plans, an employee handbook, delineations of job descriptions of your staff, and anything else you’ve put on paper (or into a digital document).
• Consider using an Appendix . This is where you can store any supporting documents, including financial and market analyses, logo and branding examples, team resumes, and so on.

Your business plan should reflect changes in your business, the industry or the market. Make changes as necessary to incorporate the changing needs of customers or changing economic conditions in order to keep your plan current. Treating your business plan as a living document — and revising it regularly — can help you stay ahead of the competition and exceed your dreams.

Learn more:

For additional support, make an appointment with a Wells Fargo banker who can help you develop your business plan. There are also several resources available to get you started with your business and business plan. Here are a few:

• U.S. Small Business Administration
• America’s Small Business Development Centers Network
• SCORE Association

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Sample Commercial Bank Business Plan

Here is how to write a commercial bank business plan .

The financial services sector of any economy can never be complete without the services offered by commercial banks.

Commercial and private banks are profit-based. They grant loans, accept deposits, and also offer other types of financial services like electronic banking (including the transfer of funds among others).

Need to write a plan for your venture? Download a FREE Business Plan PDF Sample to develop a template for your own startup.

Commercial Banking Business Plan Sample

In writing your commercial bank business plan, the following sections should not be left out.

These are basic to having a successful and implementable plan. They include the executive summary section, the company description, market analysis, and competitive analysis sections.

Additional sections include a description of management and organization, breakdown of products and services, marketing plan, sales strategy, request for funding, and financial projections.

Each of these is key to writing a comprehensive commercial bank business plan.

Executive Summary Section

As the name suggests, your commercial bank business plan should have the executive summary section. This should be the first section of your plan. Though this is the usual pattern, it is written last.

This is understandable because it summarizes your entire plan.

Now, the executive summary section of your business shouldn’t belong. It should be a page or two at most. To provide your reader with an enjoyable presentation of what your commercial bank business is about, it should follow a basic format;

Questions that will need to be answered here include what your commercial bank business is about, how it fits into the marketplace, and the problem it solves. One of the common problems it solves involves reaching the unbanked population with basic as well as innovative commercial banking services.

What is the cost of starting a commercial banking business and how much financing do you need? The investor(s) is interested in how their investments plus interest will be recouped. So, what is the return on investment like?

Your vision and mission statements must be added including how the ownership structure of your commercial bank operations is.

Company Description

A detailed description of your commercial bank business must be provided under this section. Important information must be provided here including your goals, as well as your target market.

There should be a discussion of how your banking operations will stand out from the rest. Also, you must state how your services and products (if any) will be helpful to clients or your target market.

Market Analysis

This is one of the most crucial parts of your commercial bank business plan. Here, an in-depth assessment of the financial services industry is required to enable you to have a full grasp of specific gaps you need to fill.

The use of data and statistics to explain the industry as well as findings and trends is very important. That way, a likely direction is identified and you’re able to seek innovative ways to serve your target clients better.

Competitive Analysis

Commercial banking is a highly competitive sector.

As such, you’ll need to determine or analyze how your business will come, what gaps to fill and also identify your competitors (other commercial banks).

When identifying your competitors, your goal is to know their strengths and weaknesses and finding ways your commercial banking operations will stack up against such.

Description of Management & Organization

Your commercial bank business needs an organizational structure.

Here, you’ll need to elaborate on membership, qualifications, and positions within your management team to be filled. Only skilled and experienced professionals must be picked for such positions.

The structure your commercial bank will take or adopt is also important and must be clearly stated. Membership of your bank’s board of directors must also be identified and provided.

Breakdown of Products and Services

Commercial banking operations are mostly service-based.

However, depending on your areas of interest, you may want to create products such as project finance, industrial loans, leasing, syndicated loans, bills of exchange, foreign trade financing among several others.

Marketing Plan

Marketing is a basic part of commercial banking operations.

As such, you’ll need to have a detailed plan on how you intend to sell your products to clients (both new and existing). A well-written marketing plan should include market research, identify a target market, and also discuss positioning.

Other vital components include competitive analysis, market strategy, budget, and metrics. These enable you to come up with an effective marketing strategy that bolsters your operations leading to increased levels of success.

Sales Strategy

Every service or product offered by a commercial bank needs to be sold. Here, you’ll need to discuss the ways and strategies through which your services and products will be sold. There must be clarity.

Apart from the methods to be adopted, strategies may include the hiring and deployment of sales reps to specific targets or clients. With an effective sales strategy, your commercial banking operations are likely to be successful in the long run.

Request for Funding

Part of the requirements for starting a successful commercial banking operation involves getting the funding necessary. For this to be possible, you’ll need to request funding.

Here, discussions will focus on the amount required for the takeoff of your bank.

Detailed information on how these funds will be spent is also essential. You may also want to disclose future funding requirements for any projects or expansion plans to your operations (if any).

With detailed information provided on these, your chances of getting the needed funding are significantly increased.

Financial Projections

This section discusses the anticipated revenue and must include set goals or targets based on market research.

A full report of your anticipated revenue covering 12 months and also your projected earnings for a period covering 5 years must be included.

Clarity is of the essence when it comes to writing a commercial bank business plan. Not only does this help your reader fully grasp its contents, but it also enables you to strategically implement your banking operations.

Here, we’ve provided tips and guidance on how to go about writing your commercial banking business plan. The sections included here are crucial and must be covered in detail. No aspect of your operations must be left out.

Equally important is the need to fully implement its content.

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How to Write a Business Plan: Your Step-by-Step Guide

So, you’ve got an idea and you want to start a business —great! Before you do anything else, like seek funding or build out a team, you'll need to know how to write a business plan. This plan will serve as the foundation of your company while also giving investors and future employees a clear idea of your purpose.

Below, Lauren Cobello, Founder and CEO of Leverage with Media PR , gives her best advice on how to make a business plan for your company.

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What is a business plan, and when do you need one?

According to Cobello, a business plan is a document that contains the mission of the business and a brief overview of it, as well as the objectives, strategies, and financial plans of the founder. A business plan comes into play very early on in the process of starting a company—more or less before you do anything else.

“You should start a company with a business plan in mind—especially if you plan to get funding for the company,” Cobello says. “You’re going to need it.”

Whether that funding comes from a loan, an investor, or crowdsourcing, a business plan is imperative to secure the capital, says the U.S. Small Business Administration . Anyone who’s considering giving you money is going to want to review your business plan before doing so. That means before you head into any meeting, make sure you have physical copies of your business plan to share.

Different types of business plans

The four main types of business plans are:

Startup Business Plans

Internal business plans, strategic business plans, one-page business plans.

Let's break down each one:

If you're wondering how to write a business plan for a startup, Cobello has advice for you. Startup business plans are the most common type, she says, and they are a critical tool for new business ventures that want funding. A startup is defined as a company that’s in its first stages of operations, founded by an entrepreneur who has a product or service idea.

Most startups begin with very little money, so they need a strong business plan to convince family, friends, banks, and/or venture capitalists to invest in the new company.

Internal business plans “are for internal use only,” says Cobello. This kind of document is not public-facing, only company-facing, and it contains an outline of the company’s business strategy, financial goals and budgets, and performance data.

Internal business plans aren’t used to secure funding, but rather to set goals and get everyone working there tracking towards them.

As the name implies, strategic business plans are geared more towards strategy and they include an assessment of the current business landscape, notes Jérôme Côté, a Business Advisor at BDC Advisory Services .

Unlike a traditional business plan, Cobello adds, strategic plans include a SWOT analysis (which stands for strengths, weaknesses, opportunities, and threats) and an in-depth action plan for the next six to 12 months. Strategic plans are action-based and take into account the state of the company and the industry in which it exists.

Although a typical business plan falls between 15 to 30 pages, some companies opt for the much shorter One-Page Business Plan. A one-page business plan is a simplified version of the larger business plan, and it focuses on the problem your product or service is solving, the solution (your product), and your business model (how you’ll make money).

A one-page plan is hyper-direct and easy to read, making it an effective tool for businesses of all sizes, at any stage.

How to create a business plan in 7 steps

Every business plan is different, and the steps you take to complete yours will depend on what type and format you choose. That said, if you need a place to start and appreciate a roadmap, here’s what Cobello recommends:

1. Conduct your research

Before writing your business plan, you’ll want to do a thorough investigation of what’s out there. Who will be the competitors for your product or service? Who is included in the target market? What industry trends are you capitalizing on, or rebuking? You want to figure out where you sit in the market and what your company’s value propositions are. What makes you different—and better?

2. Define your purpose for the business plan

The purpose of your business plan will determine which kind of plan you choose to create. Are you trying to drum up funding, or get the company employees focused on specific goals? (For the former, you’d want a startup business plan, while an internal plan would satisfy the latter.) Also, consider your audience. An investment firm that sees hundreds of potential business plans a day may prefer to see a one-pager upfront and, if they’re interested, a longer plan later.

3. Write your company description

Every business plan needs a company description—aka a summary of the company’s purpose, what they do/offer, and what makes it unique. Company descriptions should be clear and concise, avoiding the use of jargon, Cobello says. Ideally, descriptions should be a few paragraphs at most.

4. Explain and show how the company will make money

A business plan should be centered around the company’s goals, and it should clearly explain how the company will generate revenue. To do this, Cobello recommends using actual numbers and details, as opposed to just projections.

For instance, if the company is already making money, show how much and at what cost (e.g. what was the net profit). If it hasn’t generated revenue yet, outline the plan for how it will—including what the product/service will cost to produce and how much it will cost the consumer.

5. Outline your marketing strategy

How will you promote the business? Through what channels will you be promoting it? How are you going to reach and appeal to your target market? The more specific and thorough you can be with your plans here, the better, Cobello says.

6. Explain how you’ll spend your funding

What will you do with the money you raise? What are the first steps you plan to take? As a founder, you want to instill confidence in your investors and show them that the instant you receive their money, you’ll be taking smart actions that grow the company.

7. Include supporting documents

Creating a business plan is in some ways akin to building a legal case, but for your business. “You want to tell a story, and to be as thorough as possible, while keeping your plan succinct, clear, interesting, and visually appealing,” Cobello says. “Supporting documents could include financial projects, a competitive analysis of the market you’re entering into, and even any licenses, patents, or permits you’ve secured.”

A business plan is an individualized document—it’s ultimately up to you what information to include and what story you tell. But above all, Cobello says, your business plan should have a clear focus and goal in mind, because everything else will build off this cornerstone.

“Many people don’t realize how important business plans are for the health of their company,” she says. “Set aside time to make this a priority for your business, and make sure to keep it updated as you grow.”

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Ensuring Resilience: Business Continuity Planning for Treasury Clients

It's that time, revisit your essential business continuity steps for this hurricane season.

The experts at the National Oceanic and Atmospheric Administration (NOAA), predict "above-normal" hurricane activity in 2024. The NOAA is forecasting four to seven major hurricanes.

So how do you protect your organization against the disruption of a hurricane this year? Central to your plan is knowing how you will regain power and internet access - critical for both obtaining account information and initiating transactions - if power is lost. That can mean designating a recovery site equipped with internet access, as well as ensuring key treasury employees can re-establish internet access, wherever they are, using a "hot spot" device.

Plan ahead and document procedures

A well-documented business continuity plan can help your organization anticipate evacuation procedures, response team, and react timely so you can resume normal business operations.  One of the first steps in developing such a plan is to conduct a detailed review of operations and document all cash flow-related processes and how a disaster would impact them.

Treasury Manager can help your business run smoothly in a disaster environment because you will have electronic access to your accounts, payables and receivables. You have complete access to all your accounts and services from either your laptop or mobile device.

Partner with your bank

Your bank can help bolster your continuity capabilities through various treasury management solutions. 

• Download the convenient Treasury Manager app which gives you the ability to utilize all the system features from anywhere— whether you’re using a mobile phone or tablet.
• Plan for remote office necessities. Make sure to bring all hardware (laptop and tokens) and software you will need to continue to do business remotely in case of evacuation.
• Make timely payments . With Treasury Manager, you can use your smartphone or other mobile device to review information, initiate and approve transactions, make payments and manage accounts anywhere you have internet access. In a disaster, you also will benefit from electronic payment origination capabilities, which aren’t subject to Postal Service delays as checks are. For example, ACH lets you directly deposit pay into employee accounts and avoid the delays that can come with distributing payroll checks.
• Collect payments . Remote and mobile deposit can enable staff to deposit checks into a bank account online, when physically transporting them to a bank branch would be challenging.
• Meet temporary financing needs . Talk to your banker about establishing a line of credit sufficient to keep your business afloat if cash flow from customer payments were to dwindle temporarily.
• Keep cash on hand . If you are a retail business with a lot of cash receipts, and you must be able to make change, plan to order extra coin and currency from your bank in advance of forecasted bad-weather events.
• Make emergency purchases . Commercial cards can enable essential personnel to cover emergency business expenses.

Test to evaluate preparedness

It’s not enough to draw up a good plan and adopt banking products that are useful in disaster situations. You also need to train appropriate staff members on every facet of your plan, so they know what to do and how to use the tools at their disposal.

Don’t wait until a disaster strikes to learn if your business continuity plan works. Test your plan regularly using a combination of informal, discussion-based meetings — sometimes called “table-top” sessions — and actual hands-on, full-scale recovery exercises.

As part of your business continuity planning, talk to a Hancock Whitney banker or Treasury Services Specialist at 1-866-594-2304 to learn more about how Treasury Manager can help.

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Enter your first name, email and comments below, related posts, treasury services ease transition for emerging middle-market firms.

Transitioning from a small-market to a middle-market business brings many challenges, as owners and their typically lean staffs find themselves pulled in various directions and seeking ways to operate more efficiently.

Another Fraud Threat to Protect Against: Fake Online Banking Login Pages

Sophisticated and often global criminal organizations are out to defraud your business, and their strategies are constantly evolving. One of the latest types of cyberattacks you need to be familiar with — and educate your employees about — is called “website/URL spoofing.” Cyber criminals are using this form of fraud to attack users of commercial online banking platforms.

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Individual 401(k) Plan: Traditional and Roth

You can make substantial contributions toward your retirement while receiving many of the same benefits of a conventional 401(k). And as the owner, you can contribute both as the employer and an employee.

Who is eligible for an Individual 401(k) plan?

An Individual 401(k) plan is available to self-employed individuals and business owners, including sole proprietors, owner-only corporations, partnerships, and independent consultants with no employees other than a spouse.

What are the benefits of an Individual 401(k) plan?

Every Schwab account comes with one-on-one investment help and guidance. With this account, you'll also get:

• Higher potential contribution limits than SEP IRA and profit-sharing plans
• Ability to make profit-sharing contributions and salary deferrals
• Flexible annual contributions
• Retirement planning tools and resources
• 24/7 service and support

What are the tax implications of an Individual 401(k) plan?

Tax implications vary for traditional and Roth plans:

• Contributions to a traditional Individual 401(k) plan are generally tax deductible.
• Contributions to a Roth Individual 401(k) plan are after-tax salary deferrals.
• For a traditional Individual 401(k), earnings grow tax-deferred and assets are not taxed until they are withdrawn in retirement.
• Qualified Roth distributions are tax-free if you are over age 59½ and have held the account for over 5 years.

What are the pricing details for an Individual 401(k) plan?

There is no fee to open or maintain an account at Schwab.

• Minimum opening deposit: $0.
• $0 account open or maintenance fees. Other account fees, fund expenses, and brokerage commissions may apply. 1

Find out more about our fees and minimums .

Want to learn more about Schwab's Individual 401(k) plans?

Ready to get started.

Follow these steps to build, manage, and make contributions to your retirement plan.

Establish your Individual 401(k) plan.

Here are all the documents you'll need to set up your plan.

Note: To establish your plan, you will need an Employer Identification Number (EIN) or a Social Security Number (SSN) if a sole proprietor is acceptable.

Complete & return to Schwab

• Account Application
• Adoption Agreement
• Roth Individual 401(k) Rollover/Transfer Data Form

Documents for your records

• Pricing Guide
• Basic Plan Document

Manage your plan and start making contributions.

• Contribution Transmittal Form
• Summary Plan Description
• Elective Deferral Agreement : All participants, including the business owner(s), must complete this to indicate the elective deferral amount to have withheld from compensation.

Common questions

If you have a specific question that's not answered here, please call us at 866-855-6637 .

Plan accounts are funded with a combination of traditional and designated Roth salary deferrals and annual profit-sharing contributions to the traditional 401(k). Vesting is immediate, and participants can direct how contributions are invested. Individual 401(k) plans do not need to be funded annually.

Individuals may contribute up to $22,500 for 2023 ($30,000 if age 50 or older) and $23,000 for 2024 ($30,500 if age 50 or older). Employers may contribute up to 25% of compensation, up to the annual maximum of $66,000 for 2023 and $69,000 for 2024. Total contributions cannot exceed $66,000 for 2023 ($73,500 if age 50 or older and contributing the catch-up contribution amount) and $69,000 for 2024 ($76,500 if age 50 or older and contributing the catch-up contribution amount). Salary deferral catch-up limits are $7,500 for 2023 and 2024 (if age 50 or older).

Contributions to an Individual 401(k) can be higher than contributions to other types of retirement plans.

You can fund your account as both the employer and the employee with the following: Annual profit-sharing contributions of up to 25% of your compensation or 20% of your net self-employment income.

SECURE 2.0 Act allows business owners to both establish an Individual 401(k) and make retroactive employer contributions until tax filing deadline plus extensions. Unincorporated business owners have until tax filing deadline, excluding extensions, to make retroactive elective deferrals. Generally, if your business is incorporated, you must make your deferral contributions in the same tax year.

You'll need to file IRS Form 5500 annually when your plan assets reach or exceed $250,000, or when you terminate your plan.

You must have a triggering event—generally either termination of employment or retirement—to take a distribution.

Traditional Individual 401(k)

• Generally, all withdrawals are subject to taxes.
• Withdrawals before age 59½ may be subject to a 10% penalty.
• Distributions are subject to a mandatory 20% federal tax withholding, except for Required Minimum Distributions (RMDs), hardship withdrawals, certain qualified exceptions, and direct rollovers.
• If you own 5% or more of the business, you must begin taking RMDs annually, starting with the year you reach age 73. If you don't make withdrawals, you may be subject to a penalty.

Under SECURE 2.0, if you don't take your RMD by the IRS deadline, a 25% excise tax on insufficient or late RMD withdrawals applies. If the RMD is corrected timely, the penalty can be reduced to 10%. Follow the IRS guidelines and consult your tax advisor.

Roth Individual 401(k)

Qualified Distributions: Always tax-free.

• You can start making qualified distributions from a Roth 401(k) once you have satisfied two conditions: You are age 59½ or older, and you have met the five-year rule.

Non-Qualified Distributions: Earnings are generally subject to taxes.

• If you are under 59½ and/or have not met the 5-year rule, you may have to pay income tax, and if you are under 59½, you may incur a 10% penalty.
• Early withdrawals must include both contributions and earnings prorated based on the ratio of contributions to earnings in the account.
• Earnings are subject to a mandatory 20% federal tax withholding, except for hardship withdrawals, certain qualified exceptions, and direct rollovers.

SECURE 2.0 has eliminated RMDs for Roth 401(k) plans starting in 2024.

You may not take loans from your Individual 401(k) account.

Please refer to the IRS page on Individual 401(k) plans link for more information.

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News details

Tim welsh to leave u.s. bank; arijit roy promoted to expanded role.

Succession plan allows for smooth transition and continued focus on consumer and business banking clients

MINNEAPOLIS--(BUSINESS WIRE)-- U.S. Bancorp (NYSE: USB), parent company of U.S. Bank, announced today that Tim Welsh, vice chair of Consumer and Business Banking, intends to leave the organization after seven years to focus on his many community activities and additional career interests.

“During the course of nearly 30 years in financial services, consumer experience, and global learning and development, Tim has been a trusted colleague and purpose-driven leader,” said Andy Cecere, U.S. Bancorp chairman and CEO. “He has been an advocate for our customers, a keen contributor to the communities where we live and work, and a consummate professional who helped move us forward. We will miss his contributions and heart.”

Welsh will remain in his role through July to help the company enact its succession plan and then support executive leadership in an advisory position through early October.

Arijit Roy will assume an expanded role leading the U.S. Bank Consumer and Business Banking products organization, reporting to Gunjan Kedia, U.S. Bancorp president. Also reporting to Kedia will be Sekou Kaalund, head of Branch Banking, and Tom Wind, head of Consumer Lending.

“Arijit is a tremendous leader who joined U.S. Bank in 2022, bringing with him a wealth of experience in integrating product, channel and strategy in financial services,” Kedia said. “He quickly acclimated to the U.S. Bank culture and has a vast understanding of our clients, products and services, partnerships and unique offering that will help us accelerate growth. I appreciate how he has embraced his new opportunities and look forward to seeing him succeed in his expanded capacity.”

Before coming to U.S. Bank, Roy, 47, worked in important leadership positions at Truist, Discover Financial Services and McKinsey and Company. He holds master’s degrees from Harvard Business School and Virginia Tech, and a bachelor’s degree from Manipal Institute of Technology.

“Along with Arijit, Sekou and Tom offer insight and expertise that are vital components of our organizational success, and they will be key contributors in our ongoing efforts to provide quality, consistency and an unparalleled experience to our clients in the branches and mortgage space,” Kedia added. “These three leaders have been steady, strategic partners to the organization during their tenures with the company and are well equipped to lead the Consumer and Business Banking organization effectively into the future in alignment and close collaboration with our other revenue lines and enabling functions.”

About U.S. Bank

U.S. Bancorp, with more than 70,000 employees and $684 billion in assets as of March 31, 2024, is the parent company of U.S. Bank National Association. Headquartered in Minneapolis, the company serves millions of customers locally, nationally and globally through a diversified mix of businesses including consumer banking, business banking, commercial banking, institutional banking, payments and wealth management. U.S. Bancorp has been recognized for its approach to digital innovation, community partnerships and customer service, including being named one of the 2024 World’s Most Ethical Companies and Fortune’s most admired superregional bank. Learn more at usbank.com/about.

Investors: George Andersen, director of investor relations, U.S. Bancorp Investor Relations 612.303.3620;  [email protected]

Media: Jeff Shelman, senior vice president and head of external enterprise communications, U.S. Bank Public Affairs and Communications 612.422.1423;  [email protected]

Press Release

Site search, schwab announces its summer business update.

WESTLAKE, Texas--(BUSINESS WIRE)-- The Charles Schwab Corporation announced today that it has scheduled a Summer Business Update for institutional investors on Tuesday, July 16 th . This Update, which will be held via live public webcast, is part of an ongoing series designed to help the investment community keep abreast of recent developments and management’s strategic focus. The program is scheduled to run from 7:30 a.m. - 8:30 a.m. CT, 8:30 a.m. - 9:30 a.m. ET. Participants will include Walt Bettinger, Co-Chairman and Chief Executive Officer, Rick Wurster, President, and Peter Crawford, Chief Financial Officer.

The Update will be accessible at https://schwabevents.com/corporation .

About Charles Schwab

The Charles Schwab Corporation (NYSE: SCHW) is a leading provider of financial services, with 35.5 million active brokerage accounts, 5.3 million workplace plan participant accounts, 1.9 million banking accounts, and $9.21 trillion in client assets as of May 31, 2024. Through its operating subsidiaries, the company provides a full range of wealth management, securities brokerage, banking, asset management, custody, and financial advisory services to individual investors and independent investment advisors. Its broker-dealer subsidiary, Charles Schwab & Co., Inc. (member SIPC, https://www.sipc.org ), and its affiliates offer a complete range of investment services and products including an extensive selection of mutual funds; financial planning and investment advice; retirement plan and equity compensation plan services; referrals to independent, fee-based investment advisors; and custodial, operational and trading support for independent, fee-based investment advisors through Schwab Advisor Services. Its primary banking subsidiary, Charles Schwab Bank, SSB (member FDIC and an Equal Housing Lender), provides banking and lending services and products. More information is available at https://www.aboutschwab.com .

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Email Alert Sign Up Confirmation Brokerage Products: Not FDIC Insured • No Bank Guarantee • May Lose Value Schwab is committed to building a diverse and inclusive workplace where everyone feels valued. As an Equal Opportunity Employer, our policy is to provide equal employment opportunities to all employees and applicants without regard to any status that is protected by law. Click  here  to see the policy.  Schwab is an affirmative action employer, focused on employing and advancing in employment, qualified women, racial and ethnic minorities, protected veterans, and individuals with disabilities in the workplace. If you have a disability and require reasonable accommodations in the application process, contact Human Resources at  [email protected]  or call  800-275-1281 . The Charles Schwab Corporation provides a full range of brokerage, banking and financial advisory services through its operating subsidiaries. Its broker-dealer subsidiary, Charles Schwab & Co., Inc. 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Its banking subsidiary, Charles Schwab Bank (member FDIC and an Equal Housing Lender), provides deposit and lending services and products. Access to Electronic Services may be limited or unavailable during periods of peak demand, market volatility, systems upgrade, maintenance, or for other reasons. This site is designed for U.S. residents. Non-U.S. residents are subject to country-specific restrictions. Learn more about our services for non-U.S. residents. © Charles Schwab & Co., Inc, All rights reserved. Member SIPC . Unauthorized access is prohibited. Usage will be monitored. Our Company Citizenship, investor relations. Meet Our St. Louis Experts Allegra Biery Clint Zweifel John D. Fumagalli Caitlin Wysocki Kathy Burden Frequently Asked Questions Your trusted partner in st. louis, optimize your wealth plan. Wealth Planning Advisory Services Trust and Estate Services Banking Services Best Online Advisor for Low Fees  Best Online Advisor for Diversified Investing Best Online Advisor for 529 Plans Best Online Advisor for Financial Planning and Personal Development Best Online Advisor for Retirement Saving Why You Should Trust Us Best Online Financial Advisors 2024: Find the Right Fit for Your Needs Paid non-client promotion: Affiliate links for the products on this page are from partners that compensate us (see our advertiser disclosure with our list of partners for more details). However, our opinions are our own. See how we rate investing products to write unbiased product reviews. What Are Online Financial Advisors? A financial advisor is a catch-all term that includes financial planners and investment advisors. Most online advisors offer investment management — whether it's carried out by a human or a sophisticated computer algorithm — and financial planning services or tools. Types of Online Advisors The main types of online financial advisors are:  Robo-Advisors: Automated investment platforms (aka robo-advisors) use algorithms to generate a custom investment portfolio based on an individual's risk tolerance, goals, and time horizon. Robo-advisors typically offer low-cost ETFs as a cost-effective way to instantly diversify an investor's asset allocation and mitigate risk.  Human Advisors (Virtual): Financial advisors that offer personalized financial planning and investment advice online through virtual meetings, email, and other virtual communication channels.  Hybrid Models: Some online brokerages offer hybrid financial advice, combining automated investment advice and management through a robo-advisor and one-on-one consultation from a human advisor.  Benefits of Using Online Financial Advisors Online financial advisors allow you to ditch the in-person hassle and access expert financial guidance from your phone or home computer. Online financial advisors leverage investment technology and generally low-cost compared to traditional in-person consultants.   Not only does it make investing more affordable for many individuals, but clients can more easily adjust and monitor their investments on their own time. Robo-advisor and hybrid online advisors typically offer online dashboards and tools for convenient managing and monitoring.  Compare the Top Online Financial Advisors 2024 For this list, we didn't consider online advisors that match clients and advisors for comprehensive financial  planning services, such as Zoe Financial or Facet Wealth . Instead, we focused on tech-driven firms where you can access an automated and personalized portfolio and consult a professional for advice when needed. Here are our top picks for the best online financial advisors as picked by Business Insider editors in 2024. SoFi Automated: Best Online Advisor for Low Fees  SoFi Automated Investing supports individual investment accounts, joint accounts, traditional IRAs, Roth IRAs, SEP IRAs, and 401(k) rollovers. Check mark icon A check mark. It indicates a confirmation of your intended interaction. No account minimum or management fees to invest Check mark icon A check mark. It indicates a confirmation of your intended interaction. Goal planning and automatic portfolio rebalancing Check mark icon A check mark. It indicates a confirmation of your intended interaction. Range of other account options across SoFi website Check mark icon A check mark. It indicates a confirmation of your intended interaction. SoFi offers complimentary CFP access across all accounts con icon Two crossed lines that form an 'X'. No tax-loss harvesting con icon Two crossed lines that form an 'X'. No socially responsible portfolio options SoFi Invest is one of the best investment apps and the best investment apps for beginners. It's a great platform for US investors who are looking for an intuitive online trading experience, an open active or automated investing account, and assets like cryptocurrencies. Promotion: None at this time. Consider it if: You're new to investing and want to leave the trading decisions to professionals. SoFi Automated Investing offers individual and joint taxable brokerage accounts , traditional IRA, Roth IRA, and SEP IRA. SoFi stands out for its lack of advisory fees, free one-on-one consultations with CFPs, portfolio diversity, and goal-planning features. SoFi builds a personalized investment portfolio based on your risk tolerance, goals, and time horizon. Additional SoFi membership perks include loan discounts and career counseling.  What to look out for: SoFi doesn't have tax-loss harvesting features and limited portfolio diversity.  SoFi Invest review Betterment: Best Online Advisor for Diversified Investing Betterment offers individual or joint accounts, IRAs, trust accounts, and cash reserve or checking accounts. $0 to open, $10 to start investing ($100,000 for premium plan) $4 per month (or 0.25%/year) for digital plan; 0.40%/ year for premium plan; 1%/year for crypto portfolios Check mark icon A check mark. It indicates a confirmation of your intended interaction. No minimum for standard investing account Check mark icon A check mark. It indicates a confirmation of your intended interaction. Goal-based planning, tax-loss harvesting, charitable giving, and socially responsible investing available Check mark icon A check mark. It indicates a confirmation of your intended interaction. Access to certified financial planners Check mark icon A check mark. It indicates a confirmation of your intended interaction. Mobile app with external account syncing options con icon Two crossed lines that form an 'X'. You'll have to pay to consult a human advisor, unless you have the premium plan con icon Two crossed lines that form an 'X'. $4 monthly fee (or 0.25% annual fee) Betterment is best for hands-off investors who want to take advantage of professionally built, personalized ETF and cryptocurrency portfolios. The platform offers CFP access, so it could suit those in search of additional guidance from human advisors. App store rating: 4.7 iOS/4.5 Android Consider it if: You want access to robo-advice with multiple service levels. Betterment Investing offers individual and joint taxable brokerage, traditional IRA, Roth IRA, SEP IRA, inherited IRA, and trust. What stands out:  Betterment is a robust trading platform offering premium plans with unlimited access to CFPs through phone or email. Investors can use the platform's goal-setting feature, ESG investing, automatic rebalancing, and easy-to-use financial dashboard.  What to look out for:  Accounts with a $100,000 balance can upgrade to get advisor access, but the annual fee increases from 0.25% (an industry low) to 0.40% Betterment review Wealthfront: Best Online Advisor for 529 Plans Fund your first taxable investment account with at least $500 in the first 30 days of account opening and earn a $50 bonus. $1 ($500 for automated investing) $0 for stock trades. 0.25% for automated investing (0.06% to 0.13% for fund fees) Check mark icon A check mark. It indicates a confirmation of your intended interaction. Low annual fee for investment accounts; crypto trust investments available Check mark icon A check mark. It indicates a confirmation of your intended interaction. Tax-loss harvesting, portfolio lines of credit, 529 college savings plans available Check mark icon A check mark. It indicates a confirmation of your intended interaction. Cash account Check mark icon A check mark. It indicates a confirmation of your intended interaction. Mobile app and investing and retirement tools con icon Two crossed lines that form an 'X'. You need at least $100,000 to utilize additional investment strategies con icon Two crossed lines that form an 'X'. No human advisor access Wealthfront is one of the best robo-advisor options if you're in search of low-cost automated portfolio management, and one of the best socially responsible investing apps for features like tax-loss harvesting, US direct indexing, and crypto trusts. Consider it if: You're balancing several goals and want to streamline your finances. Promotion: Fund your first taxable investment account with at least $500 in the first 30 days of account opening and earn a $50 bonus. Wealthfront Investing offers individual and joint taxable brokerage, traditional IRA, Roth IRA, SEP IRA, trust, and 529 savings plan . Wealthfront is one of the best online financial advisors for college education savings and cryptocurrency trusts. You can borrow up to 30% of your investment balance at a low interest rate with a portfolio line of credit. Wealthfront also offers personalized recommendations with smart financial planning software.  What to look out for:  On-staff financial advisors don't offer personalized advice Wealthfront review Ellevest: Best Online Advisor for Financial Planning and Personal Development Ellevest offers two investing portfolios to fit your needs. $1 - $240 (varies by portfolio) $54 - $97 annually; $5 or $9/month Check mark icon A check mark. It indicates a confirmation of your intended interaction. Personalized, automated investment advice with a $0 minimum requirement Check mark icon A check mark. It indicates a confirmation of your intended interaction. Monthly plans include discounted access to certified financial planners Check mark icon A check mark. It indicates a confirmation of your intended interaction. Automated IRA accounts and 401(k)/403(b) rollovers available Check mark icon A check mark. It indicates a confirmation of your intended interaction. Private wealth management for individuals, families, and institutions who have at least $1 million to invest con icon Two crossed lines that form an 'X'. No active trading opportunities available; money is mainly invested in stock ETFs and bond ETFs con icon Two crossed lines that form an 'X'. You can only open individual investment accounts and retirement accounts; joint accounts or custodial accounts not available Ellevest is one of the best robo-advisors for goal-focused investing. It could be a good fit if you want automated investing and retirement accounts. Consider it if: You're looking for a one-stop shop for financial planning. Ellevest offers individual taxable brokerage, traditional IRA, Roth IRA, and SEP IRA (all held at Folio Investments). Ellevest is a comprehensive financial advisor and trading platform built around women's unique needs and challenges. Investors get access to an extensive library of content and advisor-led workshops. Additionally, Ellevest offers a socially responsible investment portfolio and monthly progress reports.  What to look out for:  Financial coaching costs extra (but members get 30%- 50% off). Access to retirement account management requires an upgrade. Ellevest review Ameriprise Financial Investments: Best Online Advisor for Retirement Saving Ameriprise Financial Services has been operating for 130 years Ameriprise Financial Services is licensed in all 50 states but only has 10 physical locations throughout the US; it's currently headquartered in Minneapolis, Minnesota Varies by account $500 annual advisory fee, 2% AUM Check mark icon A check mark. It indicates a confirmation of your intended interaction. Access to personal finance research and investment tools Check mark icon A check mark. It indicates a confirmation of your intended interaction. Fiduciary financial advisor access Check mark icon A check mark. It indicates a confirmation of your intended interaction. Various account and investment options con icon Two crossed lines that form an 'X'. High account minimums con icon Two crossed lines that form an 'X'. Difficult to navigate website con icon Two crossed lines that form an 'X'. Complex fee structure Ameriprise Financial Services is a brokerage and financial advisory firm best for experienced, passive investors interested in using the site's financial planning services, wealth management tools, and fiduciary advisor access. Ameriprise Financial Investments offers three managed account options that can be opened as an individual brokerage account, traditional IRAs, Roth IRAs, Simple IRAs, SEP IRAs, 401(k)s, 403(b)s, 529 plans, and Coverdell education savings accounts (CESA).  Ameriprise Financial Investments is one of the largest registered investment advisors in the US and is best for experienced investors looking for advanced charting and investing features. You'll get access to fiduciary financial advisors for consultations or account management.  What to look out for: Ameriprise 's managed account fees are high, and it has a complex fee structure.  Ameriprise Financial Services review How Much Do Online Financial Advisors Cost? Financial advisors providing financial advice often charge by the hour, typically between $100 to $300. Advisors creating a comprehensive financial plan tend to charge a flat rate between $1,000 and $3,000.  If you hire an advisor to manage your investment portfolio, you'll be charged a percentage of your account balance, typically between 1% and 3% annually. In comparison, that's much higher than the fees that the best robo-advisors charge; you get the added benefit of building a relationship with a trusted source who can adjust your strategy as needed, provide personal recommendations, and answer questions when they arise. How to Choose the Best Online Financial Advisors The best online financial advisor for you depends on your goals, risk tolerance, investments, and time horizon. If you're a new investor interested in passive investing, an online robo-advisor is likely a good place to start. On the other hand, if you're looking for professional insight and a customized financial plan, you're better off with access to a human advisor through phone or video calls.  You can also meet with an expert in person for financial guidance. So if you prefer to meet face-to-face, here are some tools to find some in your area: This is a database of all CERTIFIED FINANCIAL PLANNER™ professionals who are authorized to use their CFP® marks by the CFP® Board and are accepting new clients. Using the advanced search function, you can choose from over 40 focus areas you're looking to get help with and include your current amount of investable assets. Click here to visit the CFP Board website . This database helps connect young professionals — those in generations X and Y (millennials) — with individual advisors. Every advisor holds the CFP® certification, is a fiduciary , does not require a minimum net worth to take on new clients, and does not earn commissions. Click here to visit XY Planning Network . This platform maintains a database of fee-only financial advisors, not specifically CFP® certificates, who commit to a fiduciary oath once a year.  You can filter by location to see a list of advisory firms in your area. Click here to visit the National Association of Personal Financial Advisors website . Online financial advisors are generally trustworthy. The best advisors follow the fiduciary rule, meaning they operate in their clients' best interest and are fee-only. This means client fees are their only compensation, and they don't earn a commission when they invest in certain funds or buy financial products. Not everyone needs a robo-advisor, but beginners or passive investors looking for a hands-off approach to stock trading may prefer how cost-effective and convenient robo-advisors are. Affordable financial advisors can be hard to come by, so robo-advisors are a great alternative for many people. However, a financial advisor may be better if you need specific advice on your finances or investment strategy or if you're too overwhelmed or confused by your money to plan for retirement or invest in the stock market.  The cost of an online financial advisor varies from platform to platform and advisor to advisor. The cost largely depends on the services, licensing, account balance, and complexity. Robo-advisors typically charge lower fees than human advisors.  Why You Should Trust Us: Our Methodology We Reviewed the best online financial advisors using Business Insider's methodology for rating investment platforms . We compared a long list of Registered Investment advisors (RIAs), considering fees, investment selection, access, ethics, and customer service. The best online advisors have top marks in all five categories. Investment platforms are given a rating between 0 and 5. Credit cards Investing apps Retirement savings Cryptocurrency The stock market Retail investing Main content 241 IMAGES Create a Winning Banking Business Plan Business Plan For Banking Industry Powerpoint Presentation Slides Business Plan Template FREE How to Build a Business Plan That Actually Works [ 9+ Samples ] Bank Business Plan 5 Year Strategic Plan For Banking Business VIDEO PNB Fixed Deposit Monthly Income Plan 2024 I Write Business Plans and Help Businesses Determine if a Business Plan is Necessary Doubt Clearing & Counselling Session By KP Sir A business account in just a few days! What is Business Banking: 5 Things You Need to Know 📚📚@Daily routine of banking aspirant 📚📚#bankexams#dailyroutine #dailyvlog COMMENTS How to Write a Business Plan to Start a Bank in 2024 The following is a bank business plan template that operates in the USA. This bank business plan example is regarding ABC Bank, and it includes the following sections: Executive Summary. ABC Bank is a new bank for California's SMBs and individuals. We offer convenient banking services tailored to our customers' needs and preferences. 10 Steps for Crafting an Effective Business Plan for Your Bank Customer insights are invaluable for shaping your planning. 7. Financial Assessment. Evaluate your bank's financial performance, including key metrics such as profitability, liquidity, and asset quality. Determine how well your current plan aligns with your financial goals and identify areas for improvement. 8. How To Write A Successful Bank Business Plan + Template Your plan should be laid out, including the following 4 Ps. Product/Service: Detail your product/service offerings here. Document their features and benefits. Price: Document your pricing strategy here. In addition to stating the prices for your products/services, mention how your pricing compares to your competition. Bank Business Plan Template [Updated 2024] Marketing Plan. Traditionally, a marketing plan includes the four P's: Product, Price, Place, and Promotion. For a bank business plan, your marketing strategy should include the following: Product: In the product section, you should reiterate the type of bank company that you documented in your company overview. Master the Art of Banking Business Plans: 9 Essential Steps! Highlight how your banking services offer easy, accessible, and user-friendly experiences through online and mobile banking platforms. Offer unparalleled customer support: Exceptional customer service can be a strong USP. Ensure that your business plan includes strategies for providing prompt, personalized, and reliable support to your customers. How To Write a Business Plan for Bank in 9 Steps: Checklist In this article, we will guide you through the essential steps to create a compelling business plan that banks will find irresistible. Step 1: Conduct market research and analysis. Step 2: Determine the target market and customer profile. Step 3: Identify and analyze potential competitors. Step 4: Perform a feasibility study. PDF Business plan template You should describe the products or services offered within your industry and state your boundaries. Here, you may include a brief statement about the size, growth, challenges, and outlook of your industry. Detailed description of customers. Your customer analysis is a comprehensive understanding of your customer base. How To Write a Business Plan for Banking in 9 Steps: Checklist Before starting a business plan for a banking venture, it is crucial to conduct thorough market research. This step will provide you with valuable insights into the industry, current trends, and the needs and demands of potential customers. When conducting market research, you should start by identifying the target market for your banking services. Writing a business plan in 9 steps Discover all the doors a solid business plan can help open for you, including business banking accounts, ... Chase Business Banking has solutions and services that work for you. Retirement Plans. Help your employees plan, save, and invest for their future with 401(k) plan solutions. J.P. Morgan's low cost retirement plans are built for you ... Writing a Bank Business Plan The best way to increase your chances of success is to write a business plan that outlines all aspects of opening and running a bank. This document should include market analysis, organizational structure, financial projections, and more. Our team has extensive experience helping entrepreneurs open banks. How to Write a Business Plan for a Small Business How to write a business plan in 11 steps. This step-by-step outline will make it easier to write an effective business plan, even if you're managing the day-to-day demands of starting a new business. Creating a table of contents that lists key sections of the plan with page numbers will make it easy for readers to flip to the sections that ... How to start a business plan A business plan gives you direction, helps you qualify your ideas and clarifies the path you intend to take toward your goal. Four important reasons to write a business plan: Decision-making: Business plans help you eliminate any gray area by writing specific information down in black and white. Making tough decisions is often one of the ... Bank Business Plan [Sample Template] A Sample Bank Business Plan Template. 1. Industry Overview. According to global banking industry reports, part of the broad financial services market, bank credit remain the leading market segment, with around 60% of the overall market in terms of value. Statistics has shown that the EU is the largest regional market, with over 57% of the ... 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Start with an executive summary of the key points and purpose of the plan. Use charts if relevant and include business or product literature as an appendix. How To Write A Business Plan (2024 Guide) Describe Your Services or Products. The business plan should have a section that explains the services or products that you're offering. This is the part where you can also describe how they fit ... Business Plan A business plan is a document that contains the operational and financial plan of a business, and details how its objectives will be achieved. It serves as a road map for the business and can be used when pitching investors or financial institutions for debt or equity financing. A business plan should follow a standard format and contain all ... The Inside Scoop: What Banks Look for in a Business Plan Here's what banks look for when making business lending decisions: The purpose of your loan. Your business model. Your repayment source. Your plans and vision for your business's future. Your budget and financial projections forecast. How your business may be impacted by current economic conditions. Your reputation and history. How to Write a Business Plan Create a financial plan. Now that you've laid out the research, goals and planning, you can use that information to forecast revenue and build a financial plan. Use any past revenue or sales ... Plan a Business write a business plan. The purpose of a business plan is to serve as a roadmap for the present and a vision of the future. It can also help to attract investors for your business. The SBA and Small Business Development Centers can help you to create a business plan. There are many books and Web sites on the subject. Writing a Small Business Plan in 7 Steps Financial summary: Develop your financial plan. The financial summary, which includes details about your company's funding sources, existing debt, any grants, as well as financial analysis, are crucial areas to lay out in detail. Explain the amount of funding your business needs and provide supporting financial data as well as financial ... Sample Commercial Bank Business Plan Sample Commercial Bank Business Plan. September 1, 2022 by Olaoluwa. Here is how to write a commercial bank business plan. The financial services sector of any economy can never be complete without the services offered by commercial banks. Commercial and private banks are profit-based. How to Write a Business Plan: Step-by-Step Guide A one-page business plan is a simplified version of the larger business plan, and it focuses on the problem your product or service is solving, the solution (your product), and your business model (how you'll make money). A one-page plan is hyper-direct and easy to read, making it an effective tool for businesses of all sizes, at any stage ... Ensuring Resilience: Business Continuity ... A well-documented business continuity plan can help your organization anticipate evacuation procedures, response team, and react timely so you can resume normal business operations. One of the first steps in developing such a plan is to conduct a detailed review of operations and document all cash flow-related processes and how a disaster would ... Individual 401(k) Plan Personal Defined Benefit Plan FAQs; Business 401(k) Plan; Company Retirement Account; Individual 401(k) Plan: Traditional and Roth ... (Member SIPC), and its affiliates offer investment services and products. Its banking subsidiary, Charles Schwab Bank, SSB (member FDIC and an Equal Housing Lender), provides deposit and lending services and ... Tim Welsh to leave U.S. Bank; Arijit Roy promoted to expanded role Succession plan allows for smooth transition and continued focus on consumer and business banking clients U.S. Bancorp (NYSE: USB), parent company of U.S. Bank, announced today that Tim Welsh, vice chair of Consumer and Business Banking, intends to leave the organization after seven years to focus on his many community activities and additional career interests. "During the course of nearly ... Schwab Announces Its Summer Business Update About Charles Schwab The Charles Schwab Corporation (NYSE: SCHW) is a leading provider of financial services, with 35.5 million active brokerage accounts, 5.3 million workplace plan participant accounts, 1.9 million banking accounts, and $9.21 trillion in client assets as of May 31, 2024. Through its operating subsidiaries, the company Northern Trust St. Louis Northern Trust Corporation (Nasdaq: NTRS) is a leading provider of wealth management, asset servicing, asset management and banking to corporations, institutions, affluent families and individuals. Founded in Chicago in 1889, Northern Trust has offices in the United States in 19 states and Washington, D.C., and 20 international locations in ... Top Online Financial Advisors 2024: Reviews & Comparisons Small Business Banking ... or a sophisticated computer algorithm — and financial planning services or tools. ... comprehensive financial plan tend to charge a flat rate between $1,000 and $3,000 assignment business plan essay writing homework paper writing research paper review writing