holdings company business plan example

Holding Company Business Plan Template

Written by Dave Lavinsky

Over the past 20+ years, we have helped over 1,000 entrepreneurs and business owners create business plans to start and grow their holding companies. On this page, we will first give you some background information with regards to the importance of business planning. We will then go through a holding company business plan template step-by-step so you can create your plan today.

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What is a Holding Company Business Plan?

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

Why You Need a Business Plan for a Holding Company

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

Sources of Funding for Holding Companies

With regards to funding, the main sources of funding for a holding company are personal savings, credit cards, bank loans and angel investors. With regards 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 confirm 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.

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How to write a business plan for a holding company.

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

Executive Summary

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

The goal of your Executive Summary is to quickly engage the reader. Explain to them the type of holding company you are operating and the status. For example, does your holding company include multiple startups or does it include established companies?

Next, provide an overview of each of the subsequent sections of your plan. For example, give a brief overview of the industry in which you’re competing. Discuss the businesses you are operating. Detail your direct competitors. Give an overview of your target customers. Provide a snapshot of your marketing plan. Identify the key members of your team. And offer an overview of your financial plan.  

Company Analysis

In your company analysis, you will detail the type of holding company you are operating.

For example, you might operate one of the following types of holding companies:

• Pure Holding Company : this type of holding company owns a controlling interest in one or more other companies but does not itself produce goods or services, or participate in any additional business operations.
• Mixed Holding Company: this type of holding company owns a controlling interest in one or more other companies and also operates its own business, providing goods or services.
• Immediate Holding Company: this type of business owns controlling interest in one or more other companies, and is itself controlled by another holding company.
• Intermediate Holding Company: this type of business owns controlling interest in one or more other companies, and is a subsidiary of a larger corporation.

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

Include answers to question such as:

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

Industry Analysis

While this may seem unnecessary, it serves multiple purposes.

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

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

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

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

• How big are the industry(ies) in which you’re competing (in dollars)?
• Is the market declining or increasing?
• Who are the key competitors in the market?
• Who are the key suppliers in the market?
• What trends are affecting the industry?
• What is the industry’s growth forecast over the next 5 – 10 years?
• What is the relevant market size? That is, how big is the potential market for your holding company? 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 holding company business plan must detail the customers you serve and/or expect to serve.

The following are examples of customer segments: individual businesses such as banks and restaurants, other holding companies and larger corporations.

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

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

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Competitive Analysis

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

Direct competitors are other businesses that provide the same products and services as your company.

Indirect competitors are other options that customers have to purchase from that aren’t direct competitors.

With regards to direct competition, you want to describe the other businesses with which you compete.

For each such competitor, provide an overview of their businesses 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 types of businesses do they control?
• 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 better services?
• Will you provide services that your competitors don’t offer?
• Will you provide better customer service?
• Will you offer better pricing?

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

Marketing Plan

For a holding company business plan, your marketing plan should include the following:

Product : In the product section, you should reiterate the type of holding company that you documented in your Company Analysis. Then, detail the specific products and services you will be offering.

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

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

• Advertising
• Partnering with applicable websites
• Social media marketing

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 businesses, including running individual businesses, scouting companies to buy interest in, meeting with potential clients, and managing any legal and financial responsibilities for the companies you currently control.

Long-term goals are the milestones you hope to achieve. These could include the dates when you expect to acquire your first and second controlling interests, or when you hope to reach $X in revenue. It could also be when you expect to expand your holding company to form multiple subsidiary companies or parent groups.  

Management Team

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

Ideally you and/or your team members have direct experience in managing holding or investment companies and individual operating companies. If so, highlight this experience and expertise. But also highlight any experience that you think will help your business succeed.

If your team is lacking, consider assembling an advisory board. An advisory board would include 2 to 8 individuals who would act like mentors to your business. They would help answer questions and provide strategic guidance. If needed, look for advisory board members with experience in managing holding and/or investment companies or successfully running legal or financial businesses.  

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 revenues 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 purchase controlling interest in one new company per quarter or per year? 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 $150,000 on acquiring a business, this will not give you immediate profits. Rather it is an asset that will hopefully help you generate profits for years to come. Likewise, if a bank writes you a check for $150,000, you don’t need to pay it back immediately. Rather, that is a liability you will pay back over time.

Cash Flow Statement

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

• Location build-out including design fees, construction, etc.
• Cost of equipment and supplies
• Payroll or salaries paid to staff
• Business insurance
• Taxes and permits
• Legal expenses

Attach your full financial projections in the appendix of your plan along with any supporting documents that make your plan more compelling. For example, you might include your office location lease or plans you are working on for controlling another business.  

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

Holding Company Business Plan FAQs

What is the easiest way to complete my holding company business plan.

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

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

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

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

OR, Let Us Develop Your Plan For You

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

Other Helpful Business Plan Articles & Templates

Holding Company Business Plan Template

Written by Dave Lavinsky

Holding Company Business Plan

You’ve come to the right place to create your Holding Company business plan.

We have helped over 10,000 entrepreneurs and business owners create business plans and many have used them to start or grow their Holding Companies.

Below is a template to help you create each section of your Holding Company business plan.

Executive Summary

Business overview.

Caldwell Corporation, located in Los Angeles, California, is a newly established holding company that was formed to be the controlling stockholder in other companies it has invested in. It will initially control the Caldwell Group (Caldwell Products, Caldwell Entertainment, and Caldwell Technology) but will invest in other companies in the future. Caldwell Corporation will own assets in both public and private companies, ranging from real estate and manufacturing to entertainment and technology. The company solely performs oversight and is not involved in managing or day-to-day operations.

Caldwell Corporation is run by Timothy Caldwell. He has founded and run all the companies in the Caldwell Group with tremendous success. He is starting the Caldwell Corporation to create a more central point of control over his businesses and make it easier to invest in companies that will support the overall Caldwell Corporation mission.

Caldwell Corporation will provide a number of benefits and services to its subsidiaries. Those benefits include risk mitigation, asset protection, tax minimization, central control, flexibility for growth and development, and succession planning.

The primary benefit for Caldwell Corporation is to minimize the risk for its subsidiaries that forming and operating a company entails. If the subsidiary were to be sued, the liability would not exist, as the holding company would assume the risk as it is a controlling shareholder. Risk management is enhanced by dividing its assets across multiple companies.

Customer Focus

The initial focus will be to control the companies in the Caldwell Group. After that, Caldwell Corporation will primarily serve small to midsize companies across the United States. The demographics of these companies are as follows:

• Must have profits of at least $3 million per year
• Must be in business for at least two years
• Must have a board of directors in place
• Must be in a growing industry
• Has not been audited by the IRS or SEC

Caldwell Corporation will target new and growing businesses that show a growing profit margin for its shareholders.

Management Team

Caldwell Corporation is led by Timothy Caldwell. Over the past ten years, Timothy has started and successfully led the Caldwell Group of companies: Caldwell Products, Caldwell Entertainment, and Caldwell Technology. Now, he wishes to create a holding company to develop a more central point of control over his businesses as well as any companies that he will invest in in the future. Since he has run these three companies himself for the past ten years, he has an in-depth knowledge of their operations and financials.

Timothy is assisted by his executive team that runs the Caldwell Group of companies: Taylor Fisher (CFO), Andy Carrell (COO), Shelby Smith (CMO), and Dave Reddings (CTO).

Success Factors

Caldwell Corporation will be able to achieve success by offering the following competitive advantages:

• Senior Leadership: Timothy Caldwell is an active player in the stock market and is adept at studying companies and assessing their financial volatility.
• Oversight: While Caldwell Corporation will not act as an official oversight of leadership of the companies it acquires, the company will be available and able to provide knowledge and expertise when requested.
• Tax Minimization: Caldwell Corporation is skilled at providing tax scenarios for its companies that are more beneficial to the shareholders. It involves moving corporate locations to tax-friendly states, finding loopholes, and maximizing available tax credits.
• Asset Protection: Caldwell Corporation will employ the best legal, tax, and accounting teams to ensure that all entities involved are not burdened with heavy tax fines, lawsuits, or bankruptcies.

Financial Highlights

Caldwell Corporation is seeking a total funding of $300,000 of debt capital to launch. The capital will be used for funding office buildout, legal fees, overhead expenses, and working capital.

• Office design/build-out: $50,000
• Legal fees and retainer: $50,000
• Three months of overhead expenses (payroll, rent, utilities): $150,000
• Working capital: $50,000

Company Overview

Who is caldwell corporation, caldwell corporation history.

Timothy Caldwell incorporated Caldwell Corporation as an S-Corporation on 1/10/2023. Soon after, he found an office location that will serve as the headquarters of the company.

Since its incorporation, Caldwell Corporation has achieved the following milestones:

• Found an office location and signed a Letter of Intent to lease it
• Developed the company’s name, logo, and website
• Engaged a legal and accounting team

Caldwell Corporation Services

Industry analysis.

Holding companies have fared well for decades and are expected to continue to perform well for the foreseeable future. Success will be driven by strong company leadership, robust and efficient operational models, and talent management.

Holding companies offer numerous benefits to their subsidiaries. These include risk mitigation, asset protection, tax minimization, central control, flexibility for growth and development, and succession planning. With so many benefits, numerous companies join or create holding companies every year.

Some of the most high-profile companies benefit from a holding company. Some examples include Google, which is controlled by Alphabet, and the high-profile companies (like Dairy Queen and Duracell) that are controlled by Berkshire Hathaway. With so many profitable companies benefiting from the arrangement, holding companies are bound to continue to succeed in the future.

Customer Analysis

Demographic profile of target market.

Caldwell Corporation will primarily serve small to midsize companies across the United States. There are numerous startup businesses or organizations that have been in business for at least two years that have already achieved profits exceeding at least $2 million. These companies are in industries such as entertainment, technology, and real estate.

Customer Segmentation

Caldwell Corporation will primarily target the following three customer segments:

• Technology companies
• Entertainment companies
• Real estate ventures

Competitive Analysis

Direct and indirect competitors.

The following businesses have the same business profile as Caldwell Corporation, thus providing either direct or indirect competition for customer clients:

Lithium Holdings

Lithium Holdings buys and grows mid-sized technology companies. Upon acquiring technology companies, Lithium Holdings delivers high-quality equipment along with janitorial and technology supplies. As a veteran-owned company, they are able to tap into the veteran and military-owned community. Lithium offers a much-needed layer of oversight for mid-sized technology companies that do not have the operational expertise or bank account for operational expenses. Lithium Holdings has the financial backing and creditworthiness to apply for small business loans for the technology companies it acquires. The company is able to provide a strategic growth plan for a technology company that it otherwise does not have. At this time, the company focuses on companies in the southwestern United States but may grow to other regions as their geographic footprint allows.

Deer Holdings

In business for over 50 years, Deer Holdings has acquired, invested in, grown, and sold companies across various industries. Today, Deer Holdings invests in businesses that operate within the real estate, infrastructure, and financial services space. Deer’s real estate companies are specifically focused on infrastructure assets, single-family rentals, federal and state low-income housing, tax credits, large living communities, mixed-use communities, development, and military communities.

Deer’s financial services companies focus on providing debt capital to owners of multifamily, senior housing, office, retail, technology, and self-storage properties through proprietary loan products as well as products offered through Fannie Mae, Freddie Mac, and FHA. They also focus on companies that deliver high-quality investment ideas and investment banking services to institutional investors and corporate clients. In addition to real estate and banking, Deer has invested in a multitude of companies that are within the energy and utility industries. One of their most successful companies is an electrical contractor and owner of utility systems that specializes in the provision of services to the military under privatization contracts.

Greenfield Companies

Greenfield Companies is a multinational conglomerate that operates in the United States. Headquartered in Los Angeles, Greenfield prefers to invest in companies in long-term investments in publicly traded companies and has recently begun to invest in wholly-owned subsidiaries. Their diverse range of businesses includes confectionery, retail, railroads, home furnishings, home products, jewelry, retail clothing, and several regional electric and gas utilities.

Greenfield was established over a hundred years ago when it got its start investing in textile manufacturers and railroads. The company was one of the few large shareholder companies that were able to survive the Great Depression, despite it being a freshman company at the time. Throughout the decades, Greenfield has maintained being a family-led company, with the great great great grandson of Benjamin Greenfield now at the company’s helm.

Greenfield Companies is a major player in the stock market and is often studied as a model of how to ride market volatility during recessions and instability in the national economy.

Competitive Advantage

Caldwell Corporation enjoys several advantages over its competitors. Those advantages include the following:

Marketing Plan

Caldwell Corporation seeks to position itself as a premier holding company in the Los Angeles area. Subsidiaries can expect to place their interests in the companies’ hands so they can focus on providing the specific products and services that it intends to specialize in.

Brand & Value Proposition

The Caldwell Corporation brand will focus on the company’s unique value proposition:

• Proven leadership
• Complete asset protection
• Beneficial tax scenarios
• Oversight and accountability
• Knowledgeable team of experts

Promotions Strategy

Caldwell Corporation expects its target market to be companies operating in certain industries. The company’s promotion strategy to reach these companies includes:

Industry Publications

Caldwell Corporation will invest in strategically placing ads in industry publications such as newsletters, magazines, and journals. The target audience for these publications usually includes the decision-makers in their companies.

Social Media

Caldwell Corporation will invest heavily in a social media advertising campaign. The brand manager will create the company’s social media accounts and invest in ads on social media. It will use targeted marketing to appeal to the target demographics. It will focus mainly on LinkedIn social media accounts rather than other social media channels like Facebook and Instagram.

Website/SEO

Caldwell Corporation will invest heavily in developing a professional website that displays all of the benefits the holding company has to offer. It will also invest heavily in SEO so that the brand’s website will appear at the top of search engine results.

Industry Conferences

Caldwell Corporation will participate in all of the industry conferences and tradeshows to network with decision-makers of certain companies. This will be done to increase brand awareness and recognition.

Operations Plan

The following will be the operations plan for Caldwell Corporation.

Operation Functions:

• Timothy Caldwell will be the CEO of Caldwell Corporation. He will continue to run his other companies while handling the general operations of Caldwell Corporation.
• Taylor Fisher has been Tim’s CFO for several years and will take on this role for Caldwell Corporation. He will handle all the concerns related to finances, investments, and taxes.
• Andy Carrell is the COO of Tim’s other companies and will assist Caldwell Corporation with the operations and administrative aspects of the business.
• Shelby Smith has been Tim’s CMO for several years and will expand her role to help with the marketing efforts for Caldwell Corporation.
• Dave Reddings has been Tim’s CTO for several years and will handle all the major decisions and actions relating to technology.

Milestones:

The following are a series of steps that lead to our vision of long-term success. Caldwell Corporation expects to achieve the following milestones in the following six months:

4/202X            Finalize lease agreement

5/202X            Design and build out Caldwell Corporation

6/202X            Hire and train initial staff

7.202X            Kickoff of promotional campaign

8/202X            Launch Caldwell Corporation

9/202X            Reach break-even

Financial Plan

Key revenue & costs.

Caldwell Corporation’s revenues will come primarily from its stockholder distributions. The company will acquire various subsidiaries. It will position itself to be the majority stockholder and will receive quarterly and annual distributions.

The office lease, office equipment, supplies, and labor expenses will be the key cost drivers of Caldwell Corporation. The major cost drivers for the company’s operation will consist of salaries, equipment, lease, taxes, and overhead expenses. Ongoing marketing expenditures are also notable cost drivers for Caldwell Corporation.

Funding Requirements and Use of Funds

Caldwell Corporation is seeking a total funding of $300,000 of debt capital to open the holding company. The capital will be used for funding office buildout, legal fees, overhead expenses, and working capital.

Key Assumptions

Below are the key assumptions required in order to achieve the revenue and cost numbers in the financials and to pay off the startup business loan.

• Annual office lease: $20,000

Financial Projections

Income statement.

Balance Sheet

Cash Flow Statement

Holding Company Business Plan FAQs

What is a holding company business plan.

A holding company business plan is a plan to start and/or grow your holding company business. Among other things, it outlines your business concept, identifies your target customers, presents your marketing plan and details your financial projections.

You can easily complete your Holding Company business plan using our Holding Company Business Plan Template here .

What are the Main Types of Holding Companies?

There are a number of different kinds of holding companies , some examples include: Pure Holding Company, Mixed Holding Company, Immediate Holding Company, or Intermediate Holding Company.

How Do You Get Funding for Your Holding Company Business Plan?

Holding Company businesses are often funded through small business loans. Personal savings, credit card financing and angel investors are also popular forms of funding.

What are the Steps To Start a Holding Company Business?

Starting a holding company business can be an exciting endeavor. Having a clear roadmap of the steps to start a business will help you stay focused on your goals and get started faster.

1. Develop A Holding Company Business Plan - The first step in starting a business is to create a detailed holding company business plan that outlines all aspects of the venture. This should include potential market size and target customers, the services or products you will offer, pricing strategies and a detailed financial forecast. 

2. Choose Your Legal Structure - It's important to select an appropriate legal entity for your holding company business. This could be a limited liability company (LLC), corporation, partnership, or sole proprietorship. Each type has its own benefits and drawbacks so it’s important to do research and choose wisely so that your holding company business is in compliance with local laws.

3. Register Your Holding Company Business - Once you have chosen a legal structure, the next step is to register your holding company business with the government or state where you’re operating from. This includes obtaining licenses and permits as required by federal, state, and local laws.

4. Identify Financing Options - It’s likely that you’ll need some capital to start your holding company business, so take some time to identify what financing options are available such as bank loans, investor funding, grants, or crowdfunding platforms.

5. Choose a Location - Whether you plan on operating out of a physical location or not, you should always have an idea of where you’ll be based should it become necessary in the future as well as what kind of space would be suitable for your operations.

6. Hire Employees - There are several ways to find qualified employees including job boards like LinkedIn or Indeed as well as hiring agencies if needed – depending on what type of employees you need it might also be more effective to reach out directly through networking events.

7. Acquire Necessary Holding Company Equipment & Supplies - In order to start your holding company business, you'll need to purchase all of the necessary equipment and supplies to run a successful operation. 

8. Market & Promote Your Business - Once you have all the necessary pieces in place, it’s time to start promoting and marketing your holding company business. This includes creating a website, utilizing social media platforms like Facebook or Twitter, and having an effective Search Engine Optimization (SEO) strategy. You should also consider traditional marketing techniques such as radio or print advertising.

Holding Company Business Plan PDF Template (Free Download)

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Last Updated on January 4, 2024 by Arif Chowdhury

In the fast-paced and ever-evolving world of business, a well-crafted business plan is crucial for holding companies looking to thrive. A holding company business plan serves as a roadmap, guiding your organization toward its goals and ensuring strategic decision-making.

It provides a comprehensive overview of your corporation, including an executive summary, operational plan, income statement, platform company details, balance sheet projections, and more.

Crafting a compelling holding company business plan involves carefully outlining the key components that will drive your success. From providing a brief yet informative summary of your business plans and business strategy to describing the unique value proposition it offers, each section of your company analysis plays a vital role in capturing investors’ attention and securing partnerships to achieve your business goals.

With a clear roadmap in place, you can navigate the complex landscape of holding companies with confidence.

Here is the download link of your Holding Company Business Plan PDF Template.

Business History and Services Offered by Holding Companies

Holding corporations, also known as parent companies, have come a long way in the business world, evolving and growing over time. The company structure of holdings has played a significant role in their success.

These business entities, such as corporations, have become an integral part of various industries, offering a diverse range of services to their subsidiaries. This business overview is important to understand the role of these entities within their parent company.

Let’s delve into the fascinating history of holding companies and explore the wide array of services they provide to further their corporation’s business plan and mark their presence in the market.

Evolution and Growth of Holding Companies

Holding companies have witnessed significant evolution throughout history. Originally, they emerged as a means for wealthy individuals or families to consolidate their assets under one entity.

This consolidation allowed the corporation to exercise control over multiple businesses in their holdings while minimizing risk and maximizing profits. Over time, holding companies expanded their holdings beyond individual businesses, venturing into new industries and sectors. The corporation’s scope grew as it explored different sections of the market.

Today, holding companies such as Berkshire Hathaway led by Warren Buffett, and Alphabet Inc., the parent corporation of Google, are recognized as powerful players in the business world. These successful holding companies have achieved remarkable growth through strategic investments, mergers, acquisitions, and diversification into various sectors. The company business and corporation holdings have played a significant role in their success.

Diverse Range of Services Provided by Holding Companies

One of the key advantages offered by holding corporations is their ability to provide a wide range of services to their subsidiaries and holdings. By leveraging their expertise and resources across multiple businesses, holding companies facilitate collaboration and synergy among different entities within their portfolio.

Holding companies, also known as corporations, play a crucial role in fostering collaboration and synergy among the various entities they hold.

Here are some common services that holding companies offer:

• Financial Management: Holding corporations excel at managing finances across all subsidiaries under their holdings. They optimize capital allocation strategies, streamline financial reporting processes, and ensure efficient use of resources.
• Strategic Planning: Developing long-term plans for every subsidiary in their holdings and corporate portfolio is a critical function of holding companies. They evaluate the holding company’s market trends, spot business growth prospects, and create all-encompassing plans that will propel the organization to success.
• Operational Support: From supply chain management to human resources support, holdings corporations provide operational assistance to individual businesses within their network. This support helps subsidiaries optimize their operations, enhance efficiency, and achieve economies of scale.
• Technology Integration: Technology integration and investments are common areas of expertise for holding firms. These holdings make them a major player in the tech sector because they frequently concentrate on technology integration and investments. The company uses its experience to deploy state-of-the-art technologies among its various subsidiaries, facilitating innovation and smooth cooperation among its holdings.
• Industry Expertise: Holding companies contribute expertise and experience unique to their industry. For example, a holding firm or other technology-focused corporation can offer its tech industry subsidiary companies insightful advice and assistance.

Examples of Successful Holding Companies

Several prominent holding companies, including corporations, have achieved remarkable success in various industries. Let’s take a look at two notable examples:

• Berkshire Hathaway, a renowned corporation led by investor Warren Buffett, is a prime example of a successful holding company. With diverse holdings ranging from insurance corporations (GEICO) to consumer goods corporations (Coca-Cola), Berkshire Hathaway exemplifies the power of vertical integration and strategic investments.
• Alphabet Inc., the influential corporation and parent company of Google, has transformed multiple industries through its subsidiaries such as YouTube, Waymo (self-driving cars), and Verily (life sciences). Alphabet Corporation’s focus on innovation and technological advancements has propelled its subsidiaries to great heights.

Recommended Reading: Handyman Business Plan PDF Template (Free Download)

Quick Note: Unlocking synergies and amplifying growth, joint business plans (JBPs) offer a dynamic roadmap for holding companies. By fostering collaboration among subsidiaries, JBPs streamline strategies, synchronize goals, and leverage collective strengths. This cooperative approach enhances innovation, bolsters market presence, and optimizes resources, magnifying the overall success of a holding company’s diverse portfolio.

Market Analysis and Competitive Analysis for Holding Companies

To create a solid business plan for your holding corporation, it’s crucial to conduct thorough market research and analyze the competition within the industry. This will help your corporation identify opportunities for growth and gain a competitive edge in the market.

Understanding market trends and customer preferences is also essential in determining the focus areas of your corporation.

Conducting thorough market research to identify opportunities for growth

Market research plays a vital role in developing an effective business plan for your corporation. By conducting comprehensive research, you can gather valuable insights about your target market, including their needs, preferences, purchasing behavior, and how it relates to your corporation.

This information will guide your corporation in identifying potential growth opportunities and developing strategies to capitalize on them.

During the market research process, consider gathering data on key aspects such as demographics, psychographics, geographic location, and corporation of your target audience.

Explore factors like market size, growth rate, and any emerging trends that could impact your corporation’s operations.

Analyzing competition within the industry to gain a competitive edge

Analyzing your direct competitors, including corporations, is essential in understanding how they operate and what sets them apart from others in the industry. By evaluating the strengths and weaknesses of your corporation, you can identify areas where your holding company can excel or differentiate itself.

Start by identifying who your main competitors are – those offering similar services or targeting similar markets. Analyze their business models, pricing strategies, marketing efforts, and customer satisfaction levels.

This analysis will provide valuable insights into what works well in the industry and help you determine how to position your holding company effectively.

Understanding market trends and customer preferences about holding companies

Keeping up with current market trends is crucial for any successful business. The same applies to holding companies. Stay informed about changes happening within the industry that may affect customer preferences or alter the demand for specific services.

For example, if there is a growing trend towards sustainable investing or increased interest in technology-focused holdings, it’s important to adapt your business plan accordingly. By aligning your services with market trends and customer preferences, you can position your holding company as a relevant and attractive option for potential clients.

To stay updated on market trends, consider subscribing to industry publications, attending conferences or webinars, and engaging with experts in the field. This will help you gain insights into the latest developments and make informed decisions for your holding company’s growth.

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Sales Strategies and Revenue Streams for Holding Companies

To succeed as a holding company, it is crucial to develop effective sales strategies tailored specifically to the unique needs and challenges of this business model.

Exploring various revenue streams available to holding companies can greatly contribute to their financial success.

Developing Effective Sales Strategies

One must consider the diverse portfolio of subsidiary businesses under its umbrella. Each subsidiary may have its target customers, products or services, and marketing approach.

The holding company needs to understand the individual strengths and weaknesses of each subsidiary to leverage cross-selling opportunities effectively.

Here are some key considerations when developing sales strategies for a holding company:

• Identify target customers : Analyze the market segments that each subsidiary serves and identify potential synergies among them. This will help in identifying new customer segments that can benefit from multiple offerings within the holding company structure.
• Leverage conglomerates strategy : Utilize the power of a diversified portfolio by cross-promoting products or services across subsidiaries. This can create additional value for customers and increase revenue streams by tapping into existing customer bases.
• Invest in marketing : Develop a comprehensive marketing plan that highlights the unique selling propositions of each subsidiary while also showcasing the benefits of being part of a larger holding company. This will help build brand awareness and attract potential customers who value the stability and expertise offered by a well-established conglomerate.
• Explore potential acquisitions : As a holding company, actively seek out potential acquisitions that align with your overall business strategy. Acquiring complementary businesses can not only expand your product or service offerings but also provide access to new markets or customer segments.

Exploring Revenue Streams

Holding companies have various avenues through which they generate revenue beyond simply owning shares in their subsidiaries. Understanding these revenue streams is essential for creating an effective business plan.

Here are some common revenue streams for holding companies:

• Dividends : Holding companies can earn income through dividends paid by their subsidiary businesses. This is a direct result of the holding company’s ownership stake in these subsidiaries.
• Capital gains : Selling shares in subsidiary companies at a profit exceeds the holding company’s initial investment, allowing the holding company to make money. Gains in capital can have a major impact on a holding company’s overall profitability.
• Management fees : Some holding companies provide management services to their subsidiaries in exchange for fees. These fees can be based on a percentage of revenue or profit generated by the subsidiary, providing an additional source of income for the holding company.
• Exit strategy : Restructuring subsidiaries into distinct organizations or selling them as a whole through initial public offerings (IPOs) are two more exit methods that holding companies may use to make money. This enables the holding company to produce significant returns on investment and monetize the assets it has produced.

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Funding Options and Financial Planning for Holding Companies

To ensure the smooth operations and future growth of a holding company, it is crucial to have a solid financial plan in place. This involves identifying various funding options that can support the company’s expansion plans and mitigate financial risks.

Creating a comprehensive financial plan that accounts for both short-term goals and long-term sustainability is essential.

Identifying Different Funding Options

There are several funding options available. It’s important to explore these options to determine which ones align with the company’s objectives and requirements.

Some common funding options include:

• Equity Financing: This involves raising capital by selling shares of the holding company to investors. It provides an opportunity for investors to become partial owners of the business while providing funds for expansion or acquisitions.
• Debt Financing: Holding companies can also secure loans from banks or other financial institutions to finance their operations or investment opportunities. Debt financing allows companies to access capital without diluting ownership but comes with interest payments and potential debt obligations.
• Internal Cash Flow : Utilizing internal cash flow generated from existing holdings can be an effective way to fund new investments or cover overhead expenses within the holding company.
• Asset Sales : Selling underperforming assets or non-core businesses within the holding’s portfolio can generate funds that can be reinvested in more lucrative opportunities.

Creating a Comprehensive Financial Plan

A robust financial plan is vital for any holding company as it helps guide decision-making processes, manage resources effectively, and ensure long-term sustainability.

Here are some key elements that should be included in a comprehensive financial plan:

• Financial Projections: Developing realistic projections based on historical data and market trends helps estimate future revenues, costs, and profitability. These projections serve as benchmarks for tracking performance against targets.
• Balance Sheets and Income Statements : Regularly reviewing balance sheets and income statements provides insights into the financial health of the holding company. It helps identify areas of improvement, assess liquidity, and monitor profitability.
• Diversification Strategies : Holding companies can mitigate financial risks by diversifying their holdings portfolio across different industries or asset classes. This strategy helps reduce dependence on a single investment and provides opportunities for growth in various sectors.
• Asset Protection Measures : Implementing appropriate asset protection measures safeguards the holdings from potential risks or legal liabilities. This may involve establishing separate legal entities for each investment to limit liability exposure.

Mitigating Financial Risks

Financial risks are inherent in any business, including holding companies. However, some strategies can be employed to mitigate these risks and protect the company’s financial stability:

• Risk Assessment : Conducting thorough risk assessments allows holding companies to identify potential threats and develop contingency plans accordingly.
• Cost Control : Monitoring overhead expenses and implementing cost control measures help optimize cash flow and improve profitability.
• Capital Structure Analysis : Analyzing the optimal capital structure ensures that the right mix of debt and equity is utilized to minimize financing costs while maintaining financial flexibility.

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Organizational Structure and Management Team in Holding Companies

To run a successful holding company, it is crucial to design an efficient organizational structure that aligns with the goals and objectives of the company.

This structure serves as the foundation for managing subsidiary businesses effectively and ensuring smooth operations across all divisions.

Designing an efficient organizational structure

Careful consideration must be given to its legal structure, horizontal integration, and overall company operations. The goal is to create a framework that allows for central control while providing autonomy to individual subsidiaries.

One approach is to divide the company into different sections or divisions based on industry or business type. Each division can then have its management team responsible for overseeing the operations within its specific area.

Another option is to establish an advisory board consisting of key members from each subsidiary. This board can provide guidance and strategic direction while ensuring collaboration between different parts of the organization.

Having a central office that oversees overall operations, finance, and governance can help maintain consistency and coordination among subsidiaries.

Building a strong management team

A strong management team is essential for the success of any holding company. It should consist of individuals with diverse skill sets who can effectively oversee subsidiary businesses and drive growth.

Key members of the management team should possess expertise in areas such as finance, marketing, operations, and strategy. This ensures that all aspects of the business are well-managed.

The team should also have individuals who excel in leadership roles and can inspire and motivate employees within each subsidiary.

By carefully selecting individuals with complementary skills and experiences, a well-rounded management team can be formed that brings together different perspectives and fosters innovation.

Establishing clear lines of communication

Effective communication is vital within a holding company as it connects subsidiaries, management teams, stakeholders, and investors. Clear lines of communication ensure transparency, facilitate decision-making processes, and enable timely dissemination of information.

• Regular meetings , both within the management team and between subsidiaries, should be scheduled to discuss progress, challenges, and opportunities.
• Utilizing technology platforms such as project management tools or collaboration software can enhance communication efficiency.
• It is important to establish open channels for feedback and encourage a culture of open dialogue within the organization.

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Writing an Effective Business Plan for a Holding Company

To ensure the success of your holding company, it is crucial to have a well-structured and comprehensive business plan. This will serve as a roadmap for your company’s growth and provide a clear direction for its operations.

Structuring Your Business Plan

There are several key elements that you should address:

• Executive Summary : Begin with a concise summary of your holding company’s purpose, goals, and unique value proposition. This section should provide an overview of your entire business plan.
• Market Analysis : Conduct thorough research on the industries in which your subsidiary companies operate. Identify market trends, competitors, and potential growth opportunities.
• Financial Projections : Include detailed financial projections for both the holding company and its subsidiaries. This should cover revenue forecasts, expense budgets, cash flow analysis, and any potential risks or challenges.
• Management Team : Highlight the qualifications and experience of your management team members who will be overseeing both the holding company and its subsidiaries.
• Subsidiary Companies : Provide individual profiles for each subsidiary within your holding company structure. Include information about their products or services, target markets, competitive advantages, and growth strategies.

Professional Language with Clarity

While writing your business plan, it is important to strike a balance between using professional language and maintaining clarity and conciseness:

• Use industry-specific terminology where appropriate but avoid jargon that may confuse readers who are not familiar with the industry.
• Clearly articulate your vision, mission statement, and core values in simple terms that can be easily understood by anyone reading the plan.
• Break down complex financial information into digestible sections with clear explanations so that stakeholders can easily comprehend the financial projections.

Additional Tips

Here are a few additional tips to consider when crafting your holding company’s business plan:

• Keep it concise: Aim for a document that is clear, concise, and easy to navigate. Avoid unnecessary fluff or lengthy paragraphs that may overwhelm readers.
• Use visuals: Incorporate charts, graphs, and tables to present data and financial information in a visually appealing manner. This can help readers grasp complex information more easily.
• Seek professional assistance: If you are unsure about certain aspects of writing the business plan or need guidance, consider seeking assistance from professionals such as consultants or mentors who have experience in the field.

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Key Takeaways

Well done on finishing the portions of your business plan for your holding company! You’ve made a lot of progress in laying the groundwork for your business.

You are well on your road to success if you have defined your organizational structure, identified revenue streams, and conducted a market analysis. It’s time to put everything together now and create a strong business plan that will attract investors and direct your expansion.

Don’t forget to highlight your holding company’s unique value proposition in your business strategy. Emphasize how your services are unique from those of your rivals and the advantages that clients will experience from working with you.

Use real-life examples and success stories to demonstrate how you can help businesses thrive in today’s competitive landscape. Ensure that your financial projections are realistic, and backed by thorough research and analysis.

Frequently Asked Questions (FAQs)

What should i include in my holding company business plan.

In your holding company business plan, be sure to include sections such as an executive summary, a description of services offered by holding companies, market analysis, sales strategies, funding options, organizational structure, management team details, and financial projections.

These elements provide a comprehensive overview of your business model and demonstrate its potential for success.

How can I make my holding company stand out from competitors?

To differentiate your holding company from competitors, focus on developing a unique value proposition. Identify what sets you apart in terms of services offered or target market specialization.

Emphasize the benefits clients will gain by choosing you over other options available in the market.

What are some effective sales strategies for holding companies?

Effective sales strategies for holding companies include building strong relationships with potential clients through networking events or industry conferences. Providing exceptional customer service is also crucial in retaining existing clients and attracting new ones.

Leveraging digital marketing techniques like content creation and social media engagement can help generate leads and increase brand visibility.

How do I determine the right funding options for my holding company?

When determining the right funding options for your holding company, consider factors such as your financial needs, risk tolerance, and long-term goals.

Explore traditional options like bank loans or seek out investors who align with your business vision. Crowdfunding platforms can also provide an alternative avenue for raising capital.

What should I look for in a management team for my holding company?

When assembling a management team for your holding company, seek individuals with diverse skill sets and experience in relevant industries.

Look for leaders who are adaptable, strategic thinkers, and possess strong communication skills. A well-rounded team will help ensure effective decision-making and drive the success of your holding company.

Holding Company Business Plan: the Ultimate Guide for 2024

Pro Business Plans

Last Updated: 12/17/2023

Starting a holding company is a complex process that requires careful planning and preparation. Like any business, a holding company needs a well-developed business plan to outline its objectives and the steps required to achieve them. A good holding company business plan considers factors such as the company’s purpose, services, financials, and target market.

Why You Need a Holding Company Business Plan

A holding company business plan is essential for success because it provides a roadmap for the company to follow. It helps ensure the company achieves its goals and allows it to track its progress. A solid plan can also help attract investors and partners by demonstrating the company’s potential. For any new holding company, a business plan is a must.

Need a Holding Company Business Plan? Create a custom business plan with financial projections and market research in minutes with ProAI’s business plan generator.

How to Write a Holding Company Business Plan

Here are the main sections to include in a holding company business plan:

Executive Summary

The executive summary provides an overview of the key points of the business plan. It should include the company’s mission and goals, proposed strategy, projected costs and returns, company history, and other relevant details. The purpose of the executive summary is to give readers a quick understanding of the company’s plans without reading the full document.

Company Overview

This section provides an overview of the company, including its purpose, goals, management team, services, ownership, financial position, and projections. Discuss the company’s legal structure, licenses, and permits. Describe the services offered and their pricing. Summarize the company’s current financials and future outlook.

Market Analysis

The market analysis examines the industry, competitors, and target market. Discuss industry trends, key players, and their strategies. Evaluate competitors’ strengths and weaknesses. Explain how your company will differentiate itself. Discuss your target market and marketing strategies to reach them. Consider demographic, psychographic, and other characteristics. Explain how you will build customer relationships.

Define the services you will offer and how you will provide them. Create service packages and pricing structures for your target market. Consider in-person, online, and hybrid approaches. Your pricing should be competitive while allowing you to be profitable. Discuss how you will market and promote your services.

Financial Overview

Provide a financial overview including start-up costs and funding sources. Include sales and profit projections for three years. Discuss financial statements from any current or previous businesses. Include a cash flow analysis outlining income, expenses, and timelines. Discuss how you will use funding and remain financially secure.

Target Market

Identify your target market in detail. Consider age, gender, income, location, interests, and other attributes. Discuss how you will reach your target market through digital marketing, traditional marketing, or a combination of both. Explain how you will build and maintain relationships with customers.

Marketing Plan

Develop a marketing plan identifying your target audience and strategies to reach them. Consider paid media (ads), earned media (PR), owned media (your channels), and shared media (influencers, guest posts). Decide which channels to focus on and how much to invest in each. Determine metrics to measure success. A strong plan will help you reach your audience and maximize ROI.

Operational Plan

Create an operational plan outlining daily operations, policies, resource needs, timelines, and budgets. Discuss your legal structure, risks, and risk mitigation. Identify any business partners or vendors and your relationships with them. The operational plan shows how you will manage the business and comply with laws.

Financial Plan

The financial plan is the foundation of your business plan. Outline costs to launch and operate the company and provide a operating budget. Include revenue projections from investments and other income. Do a break-even analysis to show when you will become profitable. The financial plan demonstrates your knowledge of the resources and funding required to start and run the company.

Exit Strategy

Discuss how you will unwind investments and liquidate assets to exit the business. Provide timelines and projected ROI. Include contingency plans if you cannot exit as expected. Explain how you will distribute profits to investors and transition management responsibilities. The exit strategy shows you have considered how to end the business in an organized fashion.

Holding Company Financial Forecasts

Startup expenses, monthly operating expenses, revenue forecast.

Q: What is a holding company?

A: A holding company is a company that owns other companies as its primary business. It provides organization, management, and financial benefits to the subsidiaries it owns. Holding companies allow business owners to diversify investments without diluting ownership.

Q: What are the benefits of a holding company?

A: The main benefits of a holding company include:

• Tax savings: Assets and income can be shifted between subsidiaries to minimize taxes.

• Limited liability: The holding company reduces legal liability exposure from subsidiaries. Creditors can only pursue holding company assets.

• Centralized management: The holding company can oversee and support multiple subsidiaries efficiently. It can provide shared services like HR, accounting, and legal to subsidiaries.

• Flexibility: The holding company structure makes buying, selling, merging or liquidating subsidiaries easier. It provides more flexibility than directly owning multiple companies.

• Diversification: The holding company allows investors to diversify investments across many subsidiaries and industries to reduce risk. Losses in one subsidiary may be offset by gains in another.

Q: What types of holding companies are there?

A: The main types of holding companies are:

• Diversified holding companies: Own subsidiaries in unrelated industries to diversify investments. Examples are Berkshire Hathaway and General Electric.

• Conglomerate holding companies: Own subsidiaries in many unrelated industries. Examples are Koch Industries and Cargill.

• Pipeline holding companies: Own subsidiaries that are related through a supply chain or production process. The outputs of one subsidiary become the inputs of another. Examples are petroleum and natural gas pipeline companies.

• Hub-and-spoke holding companies: Own central subsidiaries that support smaller satellite subsidiaries in a shared corporate function like HR, IT or accounting. The hub subsidiaries provide services to the satellite subsidiaries.

• Family holding companies: Often own controlling interests in private family-owned operating companies to preserve family ownership and control across generations. Very common for private family businesses.

• Investment holding companies: Primarily holding equity positions in other companies. The focus is making investments for financial gain instead of operational control. Berkshire Hathaway is also an example.

• Shell holding companies: Have few or no assets or operations. They are used primarily as a legal entity to own subsidiaries. Often used for tax planning purposes.

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Holding Business Plans

Financial holding company business plan.

Domino Comptech Holdings purchases profitable existing businesses with a history of strong revenue production. DCH provides the management, marketing, and financial expertise to assist in continuing to maintain a strong and steady growth pattern.

Holding Company Business Plan

JTB Technologies is the holding company for 3 related sub-corporations, doing technology, catalog sales, and manufacturing for multiple industries.

Are you looking to expand your business holdings into owning stock in other organizations? You may want to consider establishing a holding, or parent company to do so. While it may not produce or sell goods or services, it is still beneficial to have a solid business plan in place in order to succeed. Check out our holding company and financial holding company sample plans to get started.

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Holding Company Business Plan Sample

Published Jul.30, 2018

Updated Apr.23, 2024

By: Noor Muhammad

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Table of Content

Do you want to start holding company?

Are you planning to start a holding company? In the corporate world, mergers and acquisitions are part of doing business and for any holding company to succeed, it must strategize itself to tap into existing business opportunities. The key role of a holding company is buying and owning shares or stocks in other companies with an aim of obtaining returns on their investment and controlling company corporate affairs. This is a highly strategic business and to succeed, a good holding company business plan that clearly outlines your acquisition strategy should be put in place. A large financial base and a team of experienced investment experts are key for business success.

Executive Summary

2.1 the business.

The business holding company will be registered as Benton Holdings and will have its headquarters in downtown Manhattan, New York. The business is owned by Mark Ford who is an experienced Investment Expert.

2.2 Management Team

Mark Ford, the owner of Benton Holdings is an experienced investment expert with in-depth knowledge of the U.S merger and acquisitions industry. He boasts of over 15 years of experience in the investment industry and has worked for various top blue chip U.S. companies.

2.3 Customer Focus

With his caliber of experience, Mark has extensive technical and industry knowledge on investment having worked in numerous holding companies as an advisor. With these skills, he has the right customer segment in perspective.

2.4 Business Target

Mark Ford has been in the industry for long and knows how acquisitions for investment are handled and the best strategies to use to reach out to the appropriate business targets.

Company Summary

3.1 company owner.

Mark Ford is an experienced investment analyst whose career has spanned almost two decades. In the course of his career, Mark worked for numerous top brands such as JP Morgan Chase, Citigroup and NYSE (New York Stock Exchange) among others.

3.2 Aim of Starting the Business

Corporates take various strategic decisions to help advance their course towards profitability and achieving financial goals. Mergers and acquisitions happen for various reasons and holding companies have a good opportunities to capitalize on these arrangements to generate revenue. A holding company business plan also doesn’t offer any products or services, its mandate is to simply find opportunities to invest in other businesses. Mark is aware of the dynamics and knows how to start a holdings company .

3.3 How the Business will be started

Benton Holdings will be started based on a careful market research to identify opportunities available for the holding company. Mark has the technical and business skills but has sought help from financial gurus to craft a detailed comprehensive analysis.

Services for Customers

Benton holdings is being formed purposely to scout for investment opportunities and find the best areas for the company to purchase stocks or shares with a view of making profits and getting revenue. Opening a holding company is a fairly straightforward process but the key is to have the right strategies in place to generate revenue. In order to get the best deals on the market, Mark aims to have the best team in place and a great financial base for Benton Holdings to successfully focus on its services and realize its objectives. For a business holding company to enjoy a good market share, in-house acquisition strategies must take precedence to get the right results. Benton Holdings will be launched to deal with the following areas/ services.

• Securities dealing which involves acquisition of stocks and shares from companies drawn from various economic sectors.
• Merchant banking services which involves provision of capital to new companies in exchange for share ownership
• Investment advisory services
• Security underwriting

Marketing Analysis of Holding Company

We are living in an era where mergers and acquisitions have become a common phenomenon in the corporate world. Businesses including established entities are increasingly looking for strategic partnerships which creates a good opportunity for Benton Holdings to do business and gain revenue. In this business plan for holding company, emphasis has been put on doing an extensive market analysis in order to find markets that are ready for consolidation.

5.1 Market Segment

For Benton Holdings to meet its financial objectives, the company has to identify the right target market and come up with measures to reach out to the intended groups. Acquisitions do not happen on a daily basis and a great amount of skill is required to point out potential acquisitions and how they will be beneficial to a company. How to start your own holding company and run it successfully depends on having a strategic plan to identify the best opportunities.

Business plan for investors

5.1.1. real estate and construction.

There is a real estate boom in New York considering it’s the largest city in the United States. For this reason, some companies both new and established are consistently looking for strategic partners to drive their corporate ambitions. Benton Holdings is well positioned in a city with immense merger and acquisition opportunities to search and find potential acquisitions, carry out a risk analysis and proceed if the deal looks good.

5.1.2 Energy

The world depends on energy to get many things done and this is definitely a lucrative industry for Benton Holdings to look for investment opportunities. Shares in companies within this sector are always on high demand and therefore, Benton Holdings company must adopt the right marketing strategies to demonstrate why they would be the best choice for a company looking for investors. Whether new companies or established entities, this is a great industry with massive revenue potential for Benton Holdings. With the increasing demand and reliance on energy, this is a key industry to focus on when starting a holding company .

5.1.3 Aviation and Automobile

The transport industry is a major economic driver because people have to travel from one place to another on a daily basis. Coincidentally, there are numerous mergers and acquisitions that take place among industry stakeholders with an aim of boosting operations and gaining a greater foothold of the market. New York is a global transport and aviation hub which means there could be investment opportunities that Benton Holdings could explore.

5.1.4 Finance and Information Technology

Every industry now relies on technology to run its operations and achieve business goals. The increasing demand for IT and financial services including the diversification of technology makes this industry lucrative for potential investors to business plan such as Benton Holdings.

5.1.5 Food Manufacturing and Catering

This is a thriving industry with potential to generate good revenue for Benton Holdings if the company can successfully identify the best opportunities to invest in companies in the food industry.

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5.2 Business Target

Benton Holdings plans to offer professional services given the advantage New York City has as a global corporate and financial capital. Despite similar holding companies doing business, Benton Holdings strongly believes there are unexplored opportunities and intends to operationalize this holding company business plan template to realize an annual revenue increase of between 12%-15%.

5.3 Product Pricing

Benton Holdings has varied pricing structures depending on the deal at hand. However, pricing has been determined after carefully studying the market and what competitors are doing to be successful.

Benton Holdings intends to use cost-effective yet highly efficient marketing strategies to generate revenue and successfully venture into new markets. The company intends to put in place strategies that will help identify the right acquisition opportunities. How to start a holding company and have it run successfully depends on a good understanding of mergers and acquisitions.

6.1 Competitive Analysis

Benton Holdings has carried out an intensive market research and identified how to creatively go about any potential acquisitions to beat competitors. It’s all about having an attractive acquisition plan that would make a company want to sell their stake to you.

6.2 Sales Strategy

For Benton Holdings to penetrate the market and handle numerous acquisition plans, the sales strategy below will be helpful in advertising the business.

• Prepare introduction letters and as well as company materials such as brochures and portfolio. Benton Holdings has to find a strategy to distribute these materials to key decision makers especially in industries prone to mergers and acquisitions.
• Take part in high-profile business forums and exhibitions that will help the holding company business plan mingle with other industry stakeholders.
• Have an opening party and ensure invited guests come from targeted market segments. This is an incredible way to create awareness about the business.
• Keep high standards of customer service and have a follow-up structure to ensure all emerging issues and queries are handled effectively
• Use digital media channels such as Google Ads, Twitter and Facebook for marketing

6.3 Sales Forecast

For Benton Holdings to achieve its goals, the holding company has come up with a detailed sales forecast to guide the business on a path towards success.

Personal Plan

Benton Holdings cannot achieve its mandate without having extremely skilled staff to coordinate various kinds of investment portfolios. How to create a holding company business plan must include a well-thought personnel plan.

7.1 Personnel Plan

For Benton Holdings to efficiently carry out its operations, the following staff shall be employed to work in various departments. Mark Ford who is the owner will manage the business on a day-to-day basis as the Chief Executive Officer. The following staff will be hired to work in the holding company business plan.

• Deputy Chief Executive Officer
• Merger and Acquisitions Manager
• Marketing Manager
• 2 Marketing Executives
• 2 Customer Service Executive
• 2 Investment Advisors
• 2 Risk Analysts

7.2 Average Salaries

Benton Holdings intends to pay its staff the following salaries within the first three years of operations.

Financial Plan

Benton Holdings has formulated a comprehensive financial plan that will guide the holding company on how to achieve success and reflect the true state of the company’s financial books. When starting a holding company business plan, it is critical to find out where your capital will come from. In this case, Mark Ford will use his savings, bring on board two investors and fund the remaining budget deficit with a bank loan. The following is a financial breakdown for various parameters for Benton Holdings.

8.1 Important Assumptions

The financial forecast for Benton Holdings is based on the assumptions below.

8.2 Brake-even Analysis

Benton Holdings brake-even analysis is shown in the graph below.

8.3 Projected Profit and Loss

Profit and loss information for Benton Holdings as calculated on a monthly and annual basis is indicated below.

8.3.1 Monthly Profit

8.3.2 Yearly Profit

8.3.3 Monthly Gross Margin

8.3.4 Yearly Gross Margin

8.4 Projected Cash Flow

Below is a summary of Pro forma cash flow, subtotal cash received, subtotal cash spent, subtotal cash from operations and subtotal cash spent on operations.

8.5 Projected Balance Sheet

Below is a Projected Balance Sheet for Benton Holdings that indicates assets, liabilities, capital, long term assets and current liabilities.

8.6 Business Ratios

The following is the Ratio Analysis, Business Ratios and Business Net Worth for Benton Holdings.

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Holding Company Business Plan Template

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Holding companies aim to get returns from their investment by buying and owning stocks or shares of other companies. That’s why these companies are often regarded as investment vehicles for investors. If you’re planning to start your own holding company, an effective business plan is what you need to ensure your success in the field. Get started with our Holding Company Business Plan Template you can rely on to optimize your business process. This template is easy to edit, fully customizable, and just as easy to customize and print! Save yourself the hassle and get more done with this Holding Company Business Plan Template today!

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Holding Company Business Plan Template [Updated 2024]

I. Executive Summary

This Section's Contents

Business Overview

Customer focus, management team, success factors, financial highlights.

[Company Name], located in [insert location here] is a newly established holding company that was formed to be the controlling stockholder in other companies it has invested in. [Company Name] will own assets in both public and private companies, ranging from real estate and manufacturing, to retail and pharmaceutical. The company solely performs oversight and is not involved in managing or day-to-day operations.

[Company Name] will provide a number of benefits to its subsidiaries. Those benefits include risk mitigation, asset protection, tax minimization, central control, flexibility for growth and development, and succession planning.

The primary benefit for [Company Name] is to minimize the risk for its subsidiaries that forming and operating a company entails. If the subsidiary were to be sued, the liability would not exist, as the holding company would assume the risk as it is a controlling shareholder. Risk management is enhanced by dividing its assets across multiple companies.

[Company Name] will primarily serve small to midsize companies across the United States. The demographics of these companies are as follows:

• Must have profits of at least $3 million per year
• Must be in business for at least 2 years
• Must have a Board of Directors in place
• Must be a growing industry
• Has not been audited by the IRS or SEC

[Company Name] will primarily target new and growing businesses that show a growing profit margin for its shareholders.

[Company Name] is led by [Founder’s Name], a venture capitalist who has been investing in the stock market for over 40 years. He has worked at hedge funds, venture capital firms, and investment banks throughout his long career. As an investor with all of the necessary trading experience, certifications, and licenses, he has decided to move on to the next phase of his career and pursue a holding company. [Founder] has made a lucrative career in investment management and analyzing the growth and profitability of various companies and industries. With money to invest and a strong legal team behind him, [Founder] will be forming a holding company.

[Company Name] is uniquely qualified to succeed due to the following reasons:

• The company will be led by a seasoned investor and business strategist.
• The company will conduct its proper due diligence on the profitability and viability of each subsidiary it plans to hold.
• The company has a strong legal team behind it to perform the necessary risk mitigation.
• The holding company will allow its subsidiaries to operate without their interference.
• [Company Name] will also decrease the subsidiaries’ tax liability by strategically basing certain parts of its businesses in jurisdictions that have lower tax rates.

[Company Name] is seeking a total funding of $100,000 of debt capital to open the holding company.

• Office design/build-out: $50,000
• Legal fees and retainer: $25,000
• Salary for Founder: $25,000 to pay for the first three months of salary until the first shareholder distribution is made

Top line projections over the next five years are as follows:

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Holding Company Business Plan Home I. Executive Summary II. Company Overview III. Industry Analysis IV. Customer Analysis V. Competitive Analysis VI. Marketing Plan VII. Operations Plan VIII. Management Team IX. Financial Plan

Sample Holding Company Business Plan

Do you need help starting an investment holdings company? If YES, here is a sample holding BUSINESS PLAN SAMPLE.

They say failing to plan is planning to fail. It is about a similar matter that we seek to draw your attention to. Many times, businesses fail due to a lack of proper planning. We will focus on a holding company with this holding company business plan sample.

A holding company is a parent company that may not produce and advertise goods and services of its own but has the sole purpose of owning authorized financial assets of other private companies to form a single entity.

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

The parent company operates by holding enough voting assets or stock to predominate subsidiary companies by influencing the management of the companies. Subsidiary companies can be corporations, Limited Liability Companies, Partnerships, or sometimes government or state owned enterprises.

HOLDING COMPANY BUSINESS PLAN SAMPLE

A holding company performs only investing, financing, and managing activities other business activities such as purchasing of goods and services are carried out by the operating company.

Starting up a holding business is an easier task if you do it right.

Here is a sample business plan for starting a holding company.

• Analyze your Business Needs

Reduction of taxes and assets security are the two most common benefits of a holding company. A holding company can provide assets security of highly valuable assets of subsidiary companies, you should consider the benefits you want to gain from starting up a holding company. The holding company also loans assets to subsidiary companies to perform their operating functions.

• Decide your Business Structure

Holding companies are mostly of two structures, a corporation or a Limited Liability Company (LLC). To provide assets with maximum security and for more profitable taxation you may decide to form two Limited Liability

Companies in different states, a holding company, and a subsidiary company.

The holding company would not be held responsible for the drawbacks of the subsidiary companies if you register and operate them as two individual entities. A limited liability company is not a corporation as it is the combination of the flow-through income of a sole proprietorship and the fixed liability of a corporation.

• Register your Holding Company

Make sure your holding company conforms with all laws and tax regulations of setting up a holding company in your state.

After deciding your business structure, you will need to register your business with your state by providing details such as; business name, agent’s name, and an article of incorporation or article of association which contains important business information such as the purpose and goals of the business and officers or agent’s names and address.

You’ll need a unique name for your business , most holding companies have ‘holding’ attached to their company names.

• Finance your Business

The subsidiary or operating companies need affirmation from your holding company that they are not at risk.

Financing of the holding company is very important, you may seek financing from partners or other sources as you will need funds to start up a holding company.

The valuables of subsidiary companies are stored with the holding company, you should create separate company accounts for the parent and subsidiary companies and store all funds to be used for your holding company in its account.

• Keep Records of your Company

Records should be kept on business dealings between your holding company and its subsidiary companies, the records of your holding company should be kept aside from that of the subsidiary company, employees working under the subsidiary company should also be paid by it as the holding company would only concern itself with the general control of the subsidiary.

Employ the services of an accountant who would keep tabs on transactions between the holding company and subsidiary company. The accountant would manage the cash flow and present accounting records from time to time.

Importance of keeping records;

• To supervise the development of your holding company.
• To prepare income and expenses statement and balance sheet.
• Monitor tax returns.
• To explain items on cash returns.

Sales of goods and services are categorized as an operating activity; these activities should be carried out by subsidiary companies. Holding companies should not carry out operating activities as they will not be held for creditors of the companies. The only condition where a holding company would be held responsible for the debts of its subsidiary is when the two companies are so entwined.

When starting up a holding company, most of the cash in the holding and operating companies should be kept in the holding company. The subsidiary company can receive loans from the holding company when it’s needed, but the holding company should not be subjected to the drawbacks of the subsidiary company.

• Taking up Subsidiary Companies

You may have decided to set up your holding company to hold the shares of your operating company, but if not, you should take up smaller upcoming companies.

As named, the main function of a holding company is to hold. You may decide to set up a holding company for your smaller companies for its added benefits. Plan your business properly, take down business strategies, goals, and objectives as well as business information for a successful holding company.

INVESTMENT HOLDING COMPANY BUSINESS PLAN EXAMPLE

This article will make this sample available for entrepreneurs having challenges in putting together a good plan for their holding businesses.

All you need to do is to read through this sample to get a better understanding of how it should be done. Keeping it simple is an effective way to avoid common mistakes. It is also necessary to state that a feasibility study is vital to the success of your plan.

• Executive Summary

Veritable holdings are the holding company for two major insurance corporations. These are Gateway Insurance and Hedge Secure. We own the outstanding stocks of these corporations. This allows for a significant reduction of risks of our two clients; Gateway Insurance and Hedge Secure.

We are not in any way involved in the production of goods. We are a service-oriented business that serves only the interests of our clients.

• Our Services

Our services are client-specific. We are in business to provide holding services for outstanding stocks. We are looking at expanding our corporate group to include more corporations. Through our services, we eliminate risks to varying degrees.

By owning the major shares of these businesses, usually 80%, we enable these businesses to claim tax-free dividends.

The holding services provided by Veritable Holdings are tailored to fit the most important needs of our partners.

Through the adoption of global best practices, we will have a business model that is highly effective and efficient.

• Our Mission

Our mission is not only to provide the best holding services to businesses within our corporate group but to also provide the same and even better-improved services to future partners.

Our financing will be sourced mainly through borrowed funds. The loan application process has begun in earnest.

We seek to raise the sum of $12,000,000.00 payable in 20 years. This has an interest rate of 2%.

• SWOT Analysis

This is crucial to how effective our services are in the long run. We have commissioned a reputable business solutions services company to handle this aspect. The findings have given us a better perspective on what needs to be done.

These are shown as follows;

We have identified areas of our strength to be our understanding of how the holding industry works. The strength of our business lies in our partnerships. We have a strong sense of commitment to the ideals of excellent service delivery and client satisfaction.

A good number of our hired professionals have worked with major and successful holding firms in the past. The experience gained has been immense and will be greatly beneficial to our smooth take-off.

We are coming in at a time when the stock market is at its lowest ebb. The recent crash in stock prices has made the stock market less attractive to investors. This was mainly caused by a recession experienced in the economy. There are clear signs of recovery but it is very slow in picking up. The slower it takes, the more we will be exposed to risks.

However, we have set a defined risk level beyond which we will activate our due diligence by pulling our stops until when conditions improve.

• Opportunities

The opportunities ahead are far more than the likely risks we may face. As a reputable holding company in the making, we will be providing exceptional services as a strategy to build confidence in our business partners as having the ability to deliver. We will position ourselves as the preferred holding partners for future business relationships.

Threats are in the form of negative regulatory policies that may be introduced at any point before or during the commencement of business operations. An additional and more sinister threat presents itself in the form of a global economic recession. Its effects are ravaging! Although this does not happen often, it still is a threat we are faced with.

• Profit Projections

Profitability is an important aspect of doing business. We have been careful to measure our level of profitability relating to current demands for our services. A reputable business solutions provider was commissioned to conduct this analysis.

The findings have been positive as it has shown steady growth in profits as summarised in the chart below;

• First Financial Year.        $9,000,000.00
• Second Financial Year.   $15,000,000.00
• Third Financial Year.       $30,000,000.00
• Competitive Advantage

Our competitive advantage arises from our exceptional services driven by excellence and a strong desire to make our clients happy.

To ensure that our team of professionals put in their best, we commit to providing the best working conditions that promote productivity. This is in addition to the creation of an attractive remuneration package which is purely for motivation.

• Marketing Strategy

Our marketing strategy is geared towards doing business with the right kind of people. We have a world-class marketing team that will design and coordinate all our marketing activities and efforts.

There you go! Our holding company business plan sample provides you with the help you need in writing yours. Before writing your plan, you need to have learned as much as is necessary for your business through your feasibility study. This will make your plan more accurate and precise.

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Holding Companies & Conglomerates Strategy Template

What is a Holding Companies & Conglomerates Strategy? 

A Holding Companies & Conglomerates Strategy outlines the goals and actions for a holding company or conglomerate, which is a company that owns a diverse portfolio of businesses in various industries. It helps leaders and teams align their efforts towards achieving specific objectives and maximizing value for the organization.

What's included in this Holding Companies & Conglomerates Strategy Template?

• 3x Focus Areas
• 9x Objectives
• 9x Projects

Who is this Holding Companies & Conglomerates Strategy Template for?

This Holding Companies & Conglomerates Strategy Template is designed for leaders and teams from holding companies and conglomerates, as well as organizations looking to diversify their holdings and increase efficiency, innovation, and profitability.

How is this Holding Companies & Conglomerates Strategy Template relevant to your organization?

If your organization is a holding company or conglomerate, or if you are looking to diversify your holdings and grow your business, this template can provide a framework for developing a comprehensive strategy that addresses key areas such as diversification, efficiency, and innovation. It includes a range of objectives, actions, and measures that can help guide your efforts and track progress towards your goals. Whether you are looking to increase your holdings in non-core industries, streamline operations, or launch new products and services, this template can help you develop a clear and actionable plan to drive success.

1. Define clear examples of your focus areas

A focus area is a particular viewpoint that groups certain requirements set out by an organization. A recommendation from the Cascade team would be to create 4-5 key focus area which you feel are most important to address when creating your Holding Companies & Conglomerates Strategy. The next step would be to ask yourself: Why is this focus area important to me? What is the benefit of focusing on this viewpoint from a customer's perspective? And, of course, What is the monetary benefit of investing in such a focus area? This process is useful in identifying the key area which needs prioritization which in turn can become focus areas of the strategy.

For example, the focus areas in this Holding Companies & Conglomerates Strategy Template are: Diversification; Efficiency; and Innovation.

2. Think about the objectives that could fall under that focus area

A strategic objective usually has to be specific and measurable to cause enough impact and effectively explain what you want to achieve.

An example objective that could fall under the focus area of Diversification could be: Increase holdings in non-core industries.

3. Set yourself measurable targets (KPIs) to tackle the objective

A KPI is a key performance indicator that is measurable and evaluates the success rate of an organization in relation to the task at hand. KPIs can be very industry-specific or broad and applicable across multiple industries.

An example of a KPI in this Holding Companies & Conglomerates Strategy Template associated to the objective Increase holdings in non-core industries could be: Increase number of acquisitions in non-core industries from 0 to 2.

4. Implement related projects to achieve the set KPIs

Projects are ways in which the objective can be achieved, but more so, closely tie in with ways in which organizations can make sure they are working towards their KPIs.

A project example for the objective Increase holdings in non-core industries could be: Research and acquire companies in complementary industries.

5. Utilize Cascade Strategy Execution Platform to see faster results from your strategy

Make sure your strategy is front and center with Cascade. You can plan, execute, measure and adapt your strategy in one easy-to-use platform and make sure your strategic plan is connected to on-the-ground execution.

Use this Holding Companies & Conglomerates Strategy Template and launch your strategy in Cascade; it's $0 forever.

• Hywin Holdings-stock
• News for Hywin Holdings

Hywin Holdings Announces Updates on Strategic Business Transformation Plan

SHANGHAI, June 28, 2024 (GLOBE NEWSWIRE) -- Hywin Holdings Ltd. (the “Company”) (NASDAQ: HYW) today announced updates on its plan for strategic business transformation. Reference is made to the announcement made by the Company on March 27, 2024 (the “Announcement”) where the Company announced its plan for strategic business transformation. The Company has continued to assess ongoing changes in its operating environment, and today announced further updates to transform its businesses, including: (i) completely exit the wealth management and asset management businesses by terminating the China VIE Agreements (as defined below), (ii) shift its business focus towards the technology sector, and (iii) change the Company’s name to Santech Holdings Limited.

• Exit from the Wealth Management and Asset Management Businesses

The Company has decided to cease its wealth management and asset management businesses by terminating the contractual arrangements (the “China VIE Agreements”) with Hywin Wealth Management Co., Ltd. (“Hywin Wealth Management”), a variable interest entity in China currently controlled by Hywin Enterprise Management Consulting (Shanghai) Co., Ltd., a wholly owned subsidiary of the Company. Following such termination, Hywin Wealth Management will cease to be a consolidated entity of the Company. Hywin Wealth Management will be owned and controlled by Mr. Han Hongwei, who has indicated that he will continue to lead Hywin Wealth Management and will remain fully committed to resolve ongoing redemption issues for its affected Chinese clients.

• New Business Focus in Technology

The Company plans to become a technology company. In particular, the Company plans to seek new, innovative opportunities in the technology sector, including, among others, new retail, social e-commerce, and metaverse industries. The Company may seek to expand into the technology sector organically by incubating new technology models, or by forming strategic partnerships with third parties, or both.

In addition, the Company will further assess its remaining assets and operations in its health management services and may consider alternatives with respect to such assets and operations.

• Change of the Company’s Name

To align with the Company’s new business focus, the Company proposes to change its English name from Hywin Holdings Ltd. to Santech Holdings Limited and to adopt and register the Chinese name of 三合智能控股有限公司 as its dual foreign name. An extraordinary general meeting will be held by the Company in due course to pass a special resolution to effect such name change.

The board of directors of the Company approved the above business transformation plan on June 28, 2024.

While the Company believes its business transformation plan will open up new opportunities for the Company and bring about sustainable growth in the long run, it cautions investors about the risks associated with investing in the Company’s American Depositary Shares (“ADSs”). As with any change, there are inherent uncertainties associated with such restructuring. The Company anticipates that it will experience a significant reduction in both operational and revenue scales in the short term, during which it may not achieve its historical profit level. As a result, the Company’s business, financial condition and results of operations could be materially and adversely affected. The Company warns investors to be cautious when investing in its ADSs.

About Hywin Holdings Ltd.

Hywin Holdings Limited, to be renamed Santech Holdings Limited, is a consumer-focused technology company. The Company historically served a large number of high net-worth clients in China in financial services and health management, and accumulated a large customer base. The Company has exited or disposed of its historical businesses in financial services and is actively exploring innovative new opportunities in technology, including but not limited to new retail, social e-commerce and metaverse. For more information, please visit https://ir.hywinwealth.com.

Safe Harbor Statement

This press release contains statements that may constitute “forward-looking” statements pursuant to the “safe harbor” provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as “anticipate,” “estimate,” “forecast,” “plan,” “project,” “potential,” “continue,” “ongoing,” “expect,” “aim,” “believe,” “intend,” “may,” “should,” “will,” “is/are likely to,” “could” and similar statements. Statements that are not historical facts, including statements about the Company's beliefs, plans, and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. Further information regarding these and other risks is included in the Company’s filings with the SEC. All information provided in this press release is as of the date of this press release, and the Company does not undertake any obligation to update any forward-looking statement, except as required under applicable law.

Investor Contact: Hywin Holdings Ltd. Email: [email protected]

Media Contact: ICR, LLC Edmond Lococo Phone: +86 138-1079-1408 Email: [email protected]

Hywin Holdings News MORE

Related Stocks

Hywin Holdings Announces Updates on Strategic Business Transformation Plan

June 28, 2024 05:00 ET | Source: Hywin Holdings Ltd. Hywin Holdings Ltd.

SHANGHAI, June 28, 2024 (GLOBE NEWSWIRE) -- Hywin Holdings Ltd. (the “Company”) (NASDAQ: HYW) today announced updates on its plan for strategic business transformation. Reference is made to the announcement made by the Company on March 27, 2024 (the “Announcement”) where the Company announced its plan for strategic business transformation. The Company has continued to assess ongoing changes in its operating environment, and today announced further updates to transform its businesses, including: (i) completely exit the wealth management and asset management businesses by terminating the China VIE Agreements (as defined below), (ii) shift its business focus towards the technology sector, and (iii) change the Company’s name to Santech Holdings Limited.

• Exit from the Wealth Management and Asset Management Businesses

The Company has decided to cease its wealth management and asset management businesses by terminating the contractual arrangements (the “China VIE Agreements”) with Hywin Wealth Management Co., Ltd. (“Hywin Wealth Management”), a variable interest entity in China currently controlled by Hywin Enterprise Management Consulting (Shanghai) Co., Ltd., a wholly owned subsidiary of the Company. Following such termination, Hywin Wealth Management will cease to be a consolidated entity of the Company. Hywin Wealth Management will be owned and controlled by Mr. Han Hongwei, who has indicated that he will continue to lead Hywin Wealth Management and will remain fully committed to resolve ongoing redemption issues for its affected Chinese clients.

• New Business Focus in Technology

The Company plans to become a technology company. In particular, the Company plans to seek new, innovative opportunities in the technology sector, including, among others, new retail, social e-commerce, and metaverse industries. The Company may seek to expand into the technology sector organically by incubating new technology models, or by forming strategic partnerships with third parties, or both.

In addition, the Company will further assess its remaining assets and operations in its health management services and may consider alternatives with respect to such assets and operations.

• Change of the Company’s Name

To align with the Company’s new business focus, the Company proposes to change its English name from Hywin Holdings Ltd. to Santech Holdings Limited and to adopt and register the Chinese name of 三合智能控股有限公司 as its dual foreign name. An extraordinary general meeting will be held by the Company in due course to pass a special resolution to effect such name change.

The board of directors of the Company approved the above business transformation plan on June 28, 2024.

While the Company believes its business transformation plan will open up new opportunities for the Company and bring about sustainable growth in the long run, it cautions investors about the risks associated with investing in the Company’s American Depositary Shares (“ADSs”). As with any change, there are inherent uncertainties associated with such restructuring. The Company anticipates that it will experience a significant reduction in both operational and revenue scales in the short term, during which it may not achieve its historical profit level. As a result, the Company’s business, financial condition and results of operations could be materially and adversely affected. The Company warns investors to be cautious when investing in its ADSs.

About Hywin Holdings Ltd.

Hywin Holdings Limited, to be renamed Santech Holdings Limited, is a consumer-focused technology company. The Company historically served a large number of high net-worth clients in China in financial services and health management, and accumulated a large customer base. The Company has exited or disposed of its historical businesses in financial services and is actively exploring innovative new opportunities in technology, including but not limited to new retail, social e-commerce and metaverse. For more information, please visit https://ir.hywinwealth.com .

Safe Harbor Statement

This press release contains statements that may constitute “forward-looking” statements pursuant to the “safe harbor” provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as “anticipate,” “estimate,” “forecast,” “plan,” “project,” “potential,” “continue,” “ongoing,” “expect,” “aim,” “believe,” “intend,” “may,” “should,” “will,” “is/are likely to,” “could” and similar statements. Statements that are not historical facts, including statements about the Company's beliefs, plans, and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. Further information regarding these and other risks is included in the Company’s filings with the SEC. All information provided in this press release is as of the date of this press release, and the Company does not undertake any obligation to update any forward-looking statement, except as required under applicable law.

Investor Contact: Hywin Holdings Ltd. Email: [email protected]

Media Contact: ICR, LLC Edmond Lococo Phone: +86 138-1079-1408 Email: [email protected]

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How to write a restaurant business plan + free template (2024)

By Homebase Team

Whether you’re living the dream of opening your own restaurant or reworking your existing concept, a restaurant business plan template takes a ton of stress out of writing a business plan.

With prompts for every section you’ll need, we’ve created our free restaurant business plan template to be your operational foundation (you’re welcome!). Something you can download, customize, and come back to whenever you make business decisions for your restaurant.

But first, let’s go through all the ways a written business plan helps shape your restaurant, and why it boosts your business’s chance of success.

What is a restaurant business plan?

A restaurant business plan is a written document that lays out an overview of a restaurant, its objectives, and its plans for achieving its goals.

It’s needed across all kinds and sizes of restaurants, and can be a handful of pages long or much more detailed. A well-written restaurant business plan not only helps you organize your ideas, it’s also a key part of getting investor funding .

Starting a restaurant? Here’s why you need a business plan. 

Creatively, opening a new restaurant can be incredibly exciting. But it’s also super complicated. From licenses, to equipment, to building a team, each phase needs a lot of attention to detail.

Before you jump in, it’s important to shape your plan of attack, organizing your business ideas into a clear, concise narrative that an outsider could easily understand. A business plan is an essential part of this—and here’s why.

Your business plan helps you:

Set short and long-term goals.

A restaurant business plan not only shows how your business will operate in its early stages, it also shows what steps it’ll need to follow as time goes by. Setting both your short and long-term goals at the outset makes you more likely to achieve them.

Understand your resource needs.

Going through the exercise of writing a restaurant business plan is as important as having the finished document in front of you. As you organize your thoughts, your resource needs—from the amount of capital you need to raise all the way down to the equipment you need to find—will take shape. 

Reduce potential risks.

Sadly, some 60% of restaurants fail within the first year of opening. One of the main reasons? A failure to plan. Your business plan will help you plan for most challenges at your restaurant before they come up, keeping you on the right side of that number.

Develop a marketing strategy.

As you do your market analysis and figure out who your customers are likely to be, the ways you’ll promote your business will get clearer. The more specific you are with your market research, the easier and more effective your marketing efforts will be.

Build your team.

Your business plan helps you see who you’ll need on your team and which roles you’ll need to fill first . For investors, it’s a document showcasing everyone’s collective experience, personalizing your restaurant in their eyes and packing a professional punch.

Share your vision.

Whether you’re using your business plan to secure startup funding or need additional capital after you’ve already opened, your restaurant business plan shows an investor or lender exactly why they should get behind you. 

The 9 elements of a strong restaurant business plan.

Your restaurant business plan will be unique to your vision. But all good business plans hit standard points, and whoever reads yours will expect them. As you develop and finalize your ideas, here are nine key elements you should include. 

1. Executive summary

A strong restaurant business plan begins with a strong executive summary. This is a sharp, concise overview of your restaurant and your opportunity to grab people’s attention.

Here’s where you communicate, in a nutshell, what kind of restaurant you want to run. Which demographic will you be targeting? Why is your business something the community wants or needs? Especially if you’re asking for financing, include a snapshot of your financial information and growth plan as well. 

Your executive summary should briefly lay out:

• Your mission statement. Why are you starting this restaurant now, in this location? 
• Your idea. What’s the concept of this restaurant?
• Your plan of execution. What are your key steps to making this concept work?
• Your potential costs. What are your expected expenses?
• Your anticipated ROI. How much do you expect your restaurant to make?

Many investors will make a split-second decision off of the executive summary alone—it might be all they’re going to read, so make every word count.

2. Company description

Now it’s time to let your creativity out and give your restaurant concept life. Give a more detailed description of your concept that lets your passion for what you’re creating come through. 

Flesh out all the other details of your proposed restaurant, including your restaurant’s:

• Style of cuisine and any unique selling points or differentiators that will make customers choose you
• Service style
• Restaurant name (or at least ideas)
• Size, seating style, and capacity
• Location ideas or the location you’ve scouted or secured
• Ambiance ideas including décor, lighting, and music
• Operating hours
• Other service offerings like whether you’ll offer delivery or takeout, delivery guarantees, catering, and any retail products you plan to sell
• Legal structure (e.g. sole proprietorship, LLC) 
• Existing management and their roles, including yours
• Experts or advisors you’ve brought on board

3. Market analysis

Present the research you’ve done on your target market. Make a couple of buyer personas to represent your future customers, explaining:

• Where your target customers live
• Their income levels
• Their dining-out and/or ordering-in pain points (e.g. lack of late opening hours, lack of family friendliness)
• How often they dine out or order in

Go through which other restaurants already have a customer base in your area, then explain why people will choose your restaurant over others. 

4. Sample menu

Even at the business plan stage, menu engineering is crucial. The specific menu items you’re likely to serve—the biggest thing that will set you apart—should shine through with descriptions that are short, clear, and evocative. If you have an executive chef already, this is a great area for them to add input.

Use language that will get people excited about trying your offerings. Hire a designer or use an online program to create your own mockup using the same colors, fonts, and design elements as the rest of your branding. 

5. Business structure

Dive deeper into your business structure (sole proprietorship, partnership, LLC, etc.) and organizational management. Show what your different employee positions will be (co-founders, managers, servers) to give a sense of your team’s makeup. An organizational chart can be helpful here.

Investors won’t expect you to have your entire team on board at this stage, but you should have at least a couple of people firmed up. For the roles that are already filled, including your own, summarize your collective experience and achievements. Bullet points work well, or some people choose to go into more detail with full resumes for the executive team or critical team members.

6. Restaurant design and location

Long before you sign a lease, make sure that your new offering will outshine existing ones nearby. In this section of your business plan, explain why your chosen location, or the ones you’re narrowing down, are going to be an effective space for your target market.

Consider things like:

• Neighborhood demographics
• Foot traffic
• Labor costs
• Accessibility

Hand in hand with location, your restaurant’s interior design—both in its floor plan and its ambiance—is also crucial to your business’s viability. Come up with a captivating restaurant design that communicates your theme and matches your cuisine, creating a memorable customer experience. Decide how many tables you’ll be serving, and plan out any outdoor seating.

Touch on things like:

• Team uniforms
• Flatware and glassware

7. Marketing strategy

How do you plan to market your restaurant? Your plan for grabbing customers’ attention is vital to getting diners through the door, especially at the beginning before word-of-mouth advertising has taken off.

What kind of offers will you provide? Will you have promotional events, direct mail, or a social media strategy ? Go through your planned marketing campaigns and explain how each of them will help secure your target market. 

8. Takeout and delivery options

If you’ve decided to have takeout and delivery at your restaurant—pretty important for most target markets—decide whether you’ll use your own drivers or a professional fleet like Uber Eats or DoorDash.

Show how you’ll provide the smooth digital experience your customers will expect. Decide if and how your website will come into play, bearing in mind that in 2023, 40% of consumers preferred to order directly from the restaurant website .

9. Financial projections

Your restaurant’s projected budget need to be solid, especially if you’re using your business plan to get startup funds. Without this, investors have no way of knowing if your business is a good investment or when it will become profitable.

Hire an experienced accountant with expertise in running restaurants and write down your market research, your planned costs , and your projected income. Show how investor funds will be used and whether you’ll be putting up collateral to get a loan. Give a sales forecast, usually for the first five years, and make sure to give a break-even analysis.

Get started with our free restaurant business plan template.  

As the team behind Homebase , we know how much there is to consider when you’re starting a new restaurant. We’re proud to be an all-in-one partner for thousands of restaurants large and small—helping make everything from staffing, to scheduling, to team communication easier for business owners.

And we know that your restaurant business plan is a high-stakes document. That’s why we created our free restaurant business plan template to make sure nothing gets overlooked.

Check out our free, downloadable template to get your ideas into shape, get started on your restaurant journey—and get investors excited to jump on board with you. 

Download your restaurant business plan template for free: Restaurant business plan + free template (2024)

Stop chasing down phone numbers with our built-in team communication tool. Message teammates, share updates, and swap shifts — all from the Homebase app.

Restaurant business plan template FAQs

What is the basic planning document for a successful restaurant.

The basic planning document for successful restaurants is a restaurant business plan. A restaurant business plan lays out a restaurant’s long and short-term goals and its plans for achieving those goals. Restaurant planners use it both to finetune their ideas and to secure investor funding.

How to write a restaurant business plan.

When writing a restaurant business plan, include an executive summary, a detailed restaurant description, market analysis research, a sample menu, a breakdown of your business structure, the design and location of your restaurant, your planned takeout and delivery options, your marketing strategy, and your financial projections.

What makes a business plan template for restaurants different from a standard business plan?

A restaurant business plan template differs from a standard business plan by including things like menu engineering, interior design, kitchen operations, front-of-house management, takeout and delivery offerings, and location analysis, which are unique to the food service industry.

Remember:  This is not legal advice. If you have questions about your particular situation, please consult a lawyer, CPA, or other appropriate professional advisor or agency.

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the middlemen

The Opaque Industry Secretly Inflating Prices for Prescription Drugs

Pharmacy benefit managers are driving up drug costs for millions of people, employers and the government.

Credit... Photo illustration by Jens Mortensen for The New York Times

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By Rebecca Robbins and Reed Abelson

This is the first article in a series about how pharmacy benefit managers prioritize their interests, often at the expense of patients, employers and taxpayers.

• June 21, 2024

Americans are paying too much for prescription drugs.

It is a common, longstanding complaint. And the culprits seem obvious: Drug companies. Insurers. A dysfunctional federal government.

But there is another collection of powerful forces that often escape attention, because they operate in the bowels of the health care system and cloak themselves in such opacity and complexity that many people don’t even realize they exist.

They are called pharmacy benefit managers. And they are driving up drug costs for millions of people, employers and the government.

The three largest pharmacy benefit managers, or P.B.M.s, act as middlemen overseeing prescriptions for more than 200 million Americans. They are owned by huge health care conglomerates — CVS Health, Cigna and UnitedHealth Group — and are hired by employers and governments.

The job of the P.B.M.s is to reduce drug costs. Instead, they frequently do the opposite. They steer patients toward pricier drugs, charge steep markups on what would otherwise be inexpensive medicines and extract billions of dollars in hidden fees, a New York Times investigation found.

Most Americans get their health insurance through a government program like Medicare or through an employer, which pay for two different types of insurance for each person. One type covers visits to doctors and hospitals, and it is handled by an insurance company. The other pays for prescriptions. That is overseen by a P.B.M.

Biggest P.B.M.s Dominate

Each P.B.M.’s estimated share of prescriptions filled in the United States.

CVS Health’s

UnitedHealth’s

Cigna’s

Express Scripts

Express Scripts/

Cigna merger

“I t ’ s just

nuts.”

Joseph Kaplan

A Modern Health Care Conglomerate

CVS Caremark

CVS Pharmacy

Mail-order pharmacy

CVS Specialty

Group purchasing

organization

Drug marketing

Group purchasing organization

Drug marketing partner

Fees Paid by Drug Manufacturers Doubled

What drug manufacturers paid in fees to P.B.M.s or their associated G.P.O.s.

$3.8 billion

“ W e were

ripped off.”

K ent McKinley

Overcharging for a Cancer Drug

CVS Caremark charged Oklahoma far more than the wholesale cost for everolimus.

Price charged by

$138,000 per year

Wholesale cost for

a local pharmacist

P.B.M.s Charge Inflated Prices

Two P.B.M.s charged two different clients much more than the wholesale cost of abiraterone acetate, a cancer drug.

What CVS Caremark

charged Blue Shield

$3,000 per month

What Express Scripts

charged Hyatt

Price available

from a wholesaler

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