Bank business plan template

It has explanations of the terms and definitions. It lets you add your own thoughts and comments. Industry Overview. Thank you for downloading this business plan template. Please feel free to delete this page after you have read the instructions below. Detailed guidance on completing the various sections of this business plan template can …. Business Plan for a Startup Business.

The business plan consists of a narrative and several financial worksheets. The narrative template is the body of the business plan. It contains more than questions divided into several sections. Work through the sections in any order that you want, except for the Executive Summary, which should be done This template has been used by universities such as Princeton and Babson to teach entrepreneurs how to start businesses. The business in detail. Process is the second most important element of our bank.

We have made sure cutting-edge research will be provided in support of our portfolio management process. We at AIB LLC understand that the key to marketing an investment product is to create a successful and attractive product, develop a pattern of success, and show that pattern can be repeated in the future. After that, successful products should be aggressively marketed if capacity to manage additional assets exists.

Although a three to five-year period tend to seem like a century compared to the technology world, it is really quite reasonable considering the fact that private equity investors in limited partnership vehicles are generally satisfied with a year waiting period that exists prior to a return of their capital investment. Technological advancements also permit for other economically feasible distribution channels such as separately managed portfolios for large account sizes.

We believe that our primary income at AIB LLC will come from providing our clients with investment packages, securities underwriting and advisory services in regards to mergers and acquisitions. AIB LLC will earn substantial fees for the equity and debt instruments that it underwrites and then resells to the general public. We also believe that we will engage primarily in debt instruments among middle market companies that will be sold on a best efforts basis.

This will place minimal risk on our capital reserve. We will also earn substantial per hour management and deal fees regarding advisory services for mergers and acquisition operations. We also plan to make investments directly into marketable securities and hedge funds that specialize in specific areas of trading.

We plan to engage in a covered call strategy that would allow the fund to assure return on investment for securities that are held for an extended period of time. We strongly believe that this is consistent with an average holding period of three years. We understand the importance of creating a good publicity plan that will boost our brand and help us stay consistent in the industry.

That is why we contacted Advertising Experts called Kinks Global, to help us create publicity and advertising strategies that will help us at AIB LLC to attract and keep our target audience interested. Listed below is the summary of strategies detailed by Kinks Global for our Bank. Firms in this industry get funds from investors who are interested in investing, and charge them for assisting them in investing their funds over a period of time as agreed by both parties.

Even though investment banking is a very risky venture, it is still profitable, hence there is an agreement between the investment bank and the client as it relates to the commission they are expected to make from the deal. We believe that in the coming years and as we progress, that we can decide to improvise or adopt any business process and structure that will guarantee us good return on investment ROI , efficiency and flexibility.

We plan to make sure we provide our clients with a wide variety of payment options for our services. We understand the diverse platforms people prefer and we plan to provide a suitable platform that will suit all equally. We have noted that banks are expected raise their initial capital from investors after completing regulatory processes before they can open.

In the industry, all insured banks must comply with the capital adequacy guidelines of their primary federal regulator. The guidelines require a bank to demonstrate that it will have enough capital to support its risk profile, operations, and future growth even in the event of unexpected losses.

Successful capital generation in these amounts is generally the result of a well formulated and executed plan for developing local and other investors in the bank. We have analyzed our needs and we plan to spend our startup funds judiciously. John Thomas. Our founders plan to become the very first financiers of the business, although we have plans of selling shares and stocks as the business matures.

Due to less constraint in financing, we have outlined the few ways we can acknowledge funding. These ways may include;. Our primary goal of the first full quarter of operation February- May is to secure funding from outside sources. One can easily see that even modest points beyond this break-even level can be highly lucrative. It is also important to note that excess cash will be re-deployed into the business once a level of sustainability in revenue has been reached.

We also believe that a word of note is also warranted as it relates to the cash flow statement of our bank. Have it in mind that one appealing feature of the investment industry is that collection of fees i. That is the more reason why revenue certainty is very high and is directly related to the amount of assets under management. Also note that common practice in the investment industry is to bill at each quarter-end.

We believe that the demographic, economic, political and social evidence supporting these projections make this industry one of the most attractive industries due to the high degree of certainty in the estimates. We at AIB LLC believe that the certainty coupled with the above average growth rate differentiates this opportunity from other venture investments. Also have it in mind that our conservative estimates outline a plan-to-profitability over a period much shorter than typical venture investments that sometimes need up to ten years to make profits.

Toggle navigation ProfitableVenture. Table of Content Why Start a Bank? Industry Overview 2. Additional sections include a description of management and organization, breakdown of products and services, marketing plan, sales strategy, request for funding, and financial projections. As the name suggests, your commercial bank business plan should have the executive summary section.

This should be the first section of your plan. Though this is the usual pattern, it is written last. It should be a page or two at most. To provide your reader with an enjoyable presentation of what your commercial bank business is about, it should follow a basic format;.

Questions that will need to be answered here include what your commercial bank business is about, how it fits into the marketplace, and the problem it solves.

One of the common problems it solves involves reaching the unbanked population with basic as well as innovative commercial banking services. What is the cost of starting a commercial banking business and how much financing do you need? The investor s is interested in how their investments plus interest will be recouped. So, what is the return on investment like?

Your vision and mission statements must be added including how the ownership structure of your commercial bank operations is. A detailed description of your commercial bank business must be provided under this section.

Important information must be provided here including your goals, as well as your target market. There should be a discussion of how your banking operations will stand out from the rest. Also, you must state how your services and products if any will be helpful to clients or your target market.