We talked about the importance of market research and why you should get to know your potential clients in Step 1: Conducting market research. Today, however, we will dive into the nitty gritty of writing your very own business plan, which will provide a roadmap towards achieving your goals!
So, what is a business plan?
There are countless opportunities for a passionate Introducing Broker to succeed in the industry, but if you are really interested in making this into an actual business with consistent profits, you need a solid business plan.
Simply put, a business plan is nothing more than a game-plan in how you will set out to achieve your goals and what these goals are.
Your business plan can be as involved as you want it to be, but – truth be told – the more time you invest in developing a comprehensive business plan, the easier it will be for you track your progress, identify potential issues and opportunities in future.
Therefore, before even putting pen to paper, or fingers to keys for that matter, you should be able to briefly describe how your business will make money, what strategy will you adopt in order to achieve said profitability and what your short-term and long-term goals are.
In order for your business plan to be an effective tool that can help you build a successful business, it should at least be able to provide brief answers to the following questions:
- Business definition and objectives
- What is your business all about? What does it do?
- What is your role in all this? What do you bring to the table?
- What are your business’ USPs (unique selling points)
- What are your goals and how will you move towards accomplishing them?
- Marketing approach
- What’s your target market? Will you focus on attracting beginner, intermediate or experienced traders?
- What strategies will you employ for enticing them?
- Are there any restrictions or regulations in your region that you may need to consider?
- Will you focus on offline, or online marketing and which platforms do you think would best serve your audience?
- Will you need start-up capital to get started or for future expansions?
- Any operating costs or monthly expenses you should consider?
- How long will it take you to become profitable?
Sticking to the plan
If all this sounds a bit more complicated and daunting than you expected, don’t worry and most importantly, don’t be discouraged!
Developing a solid business plan is an ongoing process that may take time but save you lots of time down the road as well. So, while sticking to the plan is important, you should ensure that you always come back to update your business plan in order to address the everchanging landscape of the industry as well as the demands of your clients.
A simple outline of the main parts of the whole operation are more than acceptable in the beginning when you are just starting out and you can fill out the details as you go.
Your business plan should evolve as your business evolves, so you should make updates every time you reach milestones or change your objectives and modus operandi.
Don’t miss the next part!
Congratulations on finishing the second part of the series!
In the next one, we will look at what exactly goes into setting up a business as an Introducing Broker and if there are any start-up, or recurring costs that you need to consider before getting started.