Business plan- wealth management

BUSINESS PLAN “WEALTH MANAGEMENT”

Seeders Investments Pvt ltd

EXECUTIVE SUMMARY

Seeders Investment Pvt ltd is a financial service company focus on wealth management.. The firm conducts in depth investment research to provide recommendations to its clients.

What we do?

WEALTH MANAGEMENT

FINANCIAL ADVISING

What makes us different?

OBJECTIVE

THE BUSINESS

To create a service-based company whose primary goal is to exceed customer's expectations.

To become the premier in financial advising wealth management

Attract more people into investment arena

To increase the number of clients served by at least 20% per year through superior performance and word-of-mouth referrals.

To develop a sustainable financial management company that generates value for their customers.

FORM OF OWNERSHIP A private company

PROPOSED HEADQUARTERS Hyderabad

THE FUNDING REQUIREMENT

DEBT:

Seeders attempt to find 30% of its fund through a loan from HSBC bank at the rate of 10% per annum

EQUITY Promoter- Lightbox Ventures: 40% Owners: 25 %Directors: 5%

THE PRODUCT/ SERVICE

Description of productAs a wealth management company our product portfolio includes;

Financial advising

Wealth management

GROWTH FUND

BALANCED FUND

DEBT FUND

CURRENCY FUND

SECTOR SPECIFIC FUND

Comparative analysis with similar productsThere are many wealth management firms already in the market and the commanding firms hold 80% of the market share.

Licensing agreements License from SEBI and stock exchanges Franchises: at the second phase of expansion we will lease out our franchisees

THE PLAN

MARKET DEMOGRAPHY: Potential customers can be divided into

Upper Middle Class

Upper Class

High Net Worth Individuals

NRI’s

FII’s

SWOT analysis

Strength New mode of investment Promotion Social network marketing Targeted customers Increasing awareness about portfolio

management

Weakness New to the investment sector Presence of tradition business groups Financial crises in EU and US Increased competition

Opportunities

Increasing awareness in investment Dematerialization Rise of per capita income

Threat Rules and regulations of SEBI RBI rules Financial crisis Unstable financial market

Seeders will be a private company. The organization plan and structure is determined on the bases of capital employed by the partners involved.Those partners who are mainly involved are Promoters Owners Directors

ORGANIZATION PLAN

BOARD OF DIRECTORSThe board of directors are selected among the promoters, owners, and directors by the percentage of capital invested by them.

CHIEF EXECUTIVE OFFICERChief executive officer is the main person who represents the company and he is the person who is selected by the BOD.

CHIEF FINANCIAL OFFICERAs an investment firm Chief financial officer have many roles to play regarding the financial activities and issues.

MANAGERSManagers will be selected from qualified directors and owners the one who is capable to manage the day to day operations.

EMPLOYEESEmployees are recruited through Outsourcing.

THE FINANCIAL PLAN

Assumptions

Item Year 1 Year 2 Year 3 Year 4 Year 5

Tax rate 30 % 30 % 30 % 30 % 30 %

Rate of Investment 8 % 8 % 12% 12% 12%

Interest rate (Debt) 10 % 10 % 10 % 10 % 10 %

Depreciation 0 0 0 0 0

Particulars Year 1

Year 2 Year 3 Year 4 Year 5

REVENUES

Return on Investment 42 60 110 125 135

Brokerage 5 10 25 32 40

EXPENSES

Salary 5 5 5 5 5

Marketing Expense 2.5 2.5 2.5 2.5 2.5

Dividend 16.8 24 52.8 60 64.8

others 0.5 0.5 0.5 0.5 0.5

EBIT 22.2 38 74.2 89 102.2

Tax 6.66 11.4 22.26 26.7 30.66

Interest 2.94 2.94 2.94 2.94 2.94

NET PROFIT 12.6 23.66 49 59.36 68.6

PROFIT AND LOSS A/C SEEDERS PVT LTD

PARTICULARS Year 1 Year 2 Year 3 Year 4 Year 5ASSETSLand and building 50 50 50 50 50Office equipment 10 10 10 10 10Furniture and fittings 15 15 15 15 15Vehicle 10 10 10 10 10Preliminary expenditure 13 13 13 13 13Cash in hand 15 15 15 15 15InvestmentsShort term 130 160 200 220 230Long term 80 140 240 280 310Total 323 413 553 613 653EQUITYShare capital 68.6 68.6 68.6 68.6 68.6LIABILITYGeneral reserve 15 15 15 15 15Long term loan 29.4 29.4 29.4 29.4 29.4Accounts payable 210 300 440 500 540Total 323 413 553 613 653

BALANCE SHEET SEEDERS PVT LTD

Operational plan

We will buy land and construct building Hyderabad. Why Hyderabad? Hyderabad is among the global centers of information technology and financial service for which it is known as Cyberabad. Hyderabad is well known for its IT hub and financial services companies.The location is supports by excellent infrastructure in terms of good roads adequate power supply and good broadband and telecom services. Equipment’s required are computers; air conditioners, Servers, Furniture’s and we need Vehicles for transportation purposes.

CRITICAL RISK INVOLVED

Governance

Regulatory complexity

Trust and transparence

Human capital

EXIT STRATEGY

Sell the assets and liabilities and pay off full debt and remaining amount will be distributed among the people who bought the capital to business.

Investors will be paid by selling the long term and short term investments