holding company business plan pdf

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.

Download our Ultimate Business Plan Template here >

What Is a 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

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

In your industry analysis, you need to provide an overview of the holding company industry.

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

Your cash flow statement will help determine how much money you need to start or grow your business, and make sure you never run out of money. What most entrepreneurs and business owners don’t realize is that you can turn a profit but run out of money and go bankrupt.

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?

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

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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.

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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 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 Template [Updated 2024]

Holding Company Business Plan Template

If you want to start a Holding Company or expand your current Holding Company, you need a business plan.

The following Holding Company business plan template gives you the key elements to include in a winning business plan. It can be used to create a real estate holding company business plan, an intermediate holding company business plan, or a mixed holding company business plan

You can download our business plan template (including a full, customizable financial model) to your computer here.

Below are links to each of the key sections of a successful holding company business plan. Once you create your plan, download it to PDF to show banks and investors.

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

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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

Holding Company Business Plan Template

Download this Holding Company Business Plan Template Design in Word, Google Docs, PDF, Apple Pages Format. Easily Editable, Printable, Downloadable.

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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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.

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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Business Plan for an Investment Company

DEC.20, 2022

1. Investment company Business Plan For Starting Your Own Business

The sample business plan for an investment company outlines the creation of an investment company. The company’s mission is to provide clients with access to a wide range of investment opportunities, including stocks, bonds, mutual funds, and alternative investments. The company will also provide financial planning and wealth management services, including portfolio design, asset allocation, and risk management strategies.

The Investment Company’s business plan includes strategies for marketing and advertising, financial projections, and a detailed description of the company’s services and fees. This is the business Plan for Investors who want to invest in a company with a significant probability of success.

2. Sources Of Financing For Investment Firms

In writing a business plan for an investment company, the sources of financing for investment firms typically include private investors, venture capital firms, angel investors, crowdfunding, and debt capital. Private investors are individuals or groups who invest in the company in exchange for equity or a portion of the profits. Venture capital firms provide financing and advice to companies in exchange for equity. Angel investors are wealthy individuals or groups who invest in companies in exchange for equity. Crowdfunding involves the collection of small amounts of money from a large group of people. Debt capital is a loan secured by the company’s assets and must be repaid with interest.

The most common sources of financing for investment firms are debt financing, equity financing, and derivatives. Debt financing involves loans from banks, other lending institutions, or private investors. Equity financing involves the issuance of stock to raise capital. Derivatives are contracts between two parties that derive their value from an underlying asset or benchmark.

The most important source of financing for an investment company in the business plan investment company is the capital that the company brings in from its own operations.

3. Executive Summary Of Investment Company Business Plan

The business.

The new investment company business plan for an Investment Company is designed to provide an overview of our company’s mission and objectives. We are a full-service investment firm that specializes in providing comprehensive financial advice and services to individuals, families, and business owners. We aim to maximize investment returns and increase our clients’ net worth.

We plan to provide a wide range of services, including portfolio management, asset allocation, retirement planning, estate planning, tax planning, and general financial planning.

Management Of Investment Company

The investment company business plan outlines the management team of experienced financial and legal professionals committed to providing the highest quality of investment management services. Our goal is to create a fully integrated, world-class investment company that provides our clients with a range of innovative and tailored investment solutions.

Customers Of Investment Company

In the investment company business plan template, the customers of our investment company will be individuals, small businesses, and institutions that are looking for a trusted financial partner to help them manage and grow their wealth. We will offer our clients a wide range of services, including portfolio management, retirement planning, estate planning, tax planning, and philanthropic planning. Our goal is to provide our clients with the best advice, products, and services to help them meet their financial goals.

Business Target

The business target for our investment company is to create long-term capital appreciation and wealth for our investors by making prudent investments in start-up and established businesses. Our goal is to be a reliable and trusted partner for our investors and maximize their investment return.

4. Investment Company Summary

Company owner.

Our investment company, JS Investment Group, is owned and operated by John Smith. John Smith is a highly experienced investor and entrepreneur who has successfully founded and managed several small investment company business plans. He deeply understands the investment industry and is passionate about helping others achieve success through strategic investments.

Why The Investment Company Is Being Started

The primary reason for starting an investment company in an investment company business plan sample is to provide clients with a safe and secure place to invest their money. With a wide range of investment options available, our team of experienced financial professionals can help clients make informed decisions about their investments. We also plan to provide clients with up-to-date market analysis and research.

How The Investment Company Will Be Started

The company will seek to raise capital through debt and equity financing. Equity financing will come from the founders and outside investors. The company will also seek to raise capital through debt financing, which will be used to fund the startup costs and ongoing operations of the company. In the business plan for the investment holding company, the company will focus on providing quality investment advice and services to its clients.

The Investment company owner John Smith estimates startup costs based on assets, investments, loans, and expenses in collaboration with financial experts.

JS Investment Group’s start-up requirements include total startup expenses, total assets, total start-up funding, total funding requirements, total assets, total liabilities, total planned investment, total capital, total liabilities, and total funding.

5. Services of Investment Company

The product description section in a business plan for an investment banking company includes services. However, below are the all services offered by our investment company include:

• Investment Advisory: Providing tailored advice and strategies to meet individual, business, and corporate clients’ investment goals.
• Investment Management: The business plan for an investment banking company provides services of designing, constructing, and managing bespoke portfolios for clients, as well as providing ongoing monitoring and rebalancing services.
• Mutual Fund Management: The business plan for an investment management company offers selecting and monitoring mutual funds for clients, as well as providing risk management and portfolio diversification services.
• Estate Planning: Developing strategies for both tax and non-tax-related estate planning objectives.
• Retirement Planning: Assisting clients with the creation of retirement plans and investments to meet their retirement income needs.
• Financial Planning: Helping clients to prepare for their financial future by creating strategies that integrate their investment, tax, insurance, and estate planning goals.
• Risk Management: Identifying and managing investment risks to help clients reach their financial goals.
• Portfolio Analysis: Examining and evaluating portfolios to ensure they are in line with the client’s investment objectives.
• Tax Planning: Developing strategies to minimize the client’s tax liability and maximize after-tax returns.
• Asset Allocation: Designing and implementing asset allocation strategies to help clients meet their long-term financial goals.

6. Marketing Analysis

A marketing analysis is an important part of a sample business plan for an investment company. This analysis provides information on the market in which the company operates, including the size and growth of the market, the competition, and potential growth opportunities.

The investment company market is highly competitive, as investors have a wide range of options when it comes to deciding where to invest their money.

The company will face competition from both traditional and online investment companies. Traditional investment companies offer services such as portfolio management and financial planning. Online investment companies offer services such as stock trading and portfolio management.

In addition to traditional investment companies, investors can choose from online brokers, mutual funds, and other alternative investments. As a result, it is important for an investment company to differentiate itself from the competition and to create a strong value proposition for its customers.

The investment industry is expected to continue to grow as people become more aware of the need for financial planning and the importance of investing.

Market Trends

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In order to compete effectively in the investment company market, it is important to understand the current market trends and identify areas of opportunity.

In the investment company business plan example, one of the most important trends to consider is the shift towards more technology-driven investment strategies. This trend is driven by advancements in technology and increased access to data, which has enabled more sophisticated portfolio management techniques.

Additionally, many investors are increasingly looking to alternative investments such as cryptocurrency, venture capital, and private equity as a way of diversifying their portfolios. Furthermore, an increasing number of investors are turning to online trading platforms as a way of managing their investments. Finally, it is important to consider the potential impact of environmental, social, and governance (ESG) investing on the industry, as ESG-focused investments are gaining traction in the financial markets.

Marketing Segmentation

In the private investment company business plan, the company will target a wide range of potential customers, including individual investors, high-net-worth individuals, family offices, and institutional investors. Each of these customer segments will require different strategies and services, so the company will tailor its marketing and services accordingly.

For individual investors, the company will focus on providing personalized services that are tailored to the specific needs and investment goals of each client. The company will also provide educational resources and tools to help clients make informed decisions about their investments.

For high-net-worth individuals, the company will focus on providing personalized portfolio construction and asset management services.

We plan to target high-net-worth, individuals and institutional clients who are looking for a more personalized approach to investing. We will use a combination of traditional and alternative investment strategies to provide our clients with the best return on their investments. We plan to use our extensive network of banks and other financial institutions to secure the most attractive terms for our clients.

We have identified three key areas of focus when it comes to our business plan. First, we plan to build a strong customer base by offering superior customer service and customer education. Second, we plan to develop our own proprietary financial products and services to offer our clients. Finally, we plan to focus on developing relationships with banks and other financial institutions to ensure that we can offer the best terms for our clients.

Product Pricing

JS Investment Group will use a combination of fixed fees and performance-based fees for our services. For our portfolio management and asset allocation services, we will charge a flat fee of 1% of the total assets under management. For our investment research and risk management services, we will charge a fixed fee of $250 per hour.

For our performance-based fees, we will charge a 20% fee on any profits earned by our clients. This fee will be applied on a quarterly basis and will be calculated based on the performance of the portfolio during that period.

7. Marketing Strategy Of Investment Company

Competitive analysis, eb5 business plan.

The business plan for an investment company covers the company analysis in which the company’s competitive landscape is large and diverse. There are a number of large and well-established firms that have been in the industry for many years. Additionally, there is a large number of small, independent firms that have emerged in recent years.

Sales Strategy

Our sales strategy is to target potential customers through a variety of outlets, including direct mail, email marketing, social media campaigns, and online advertising. We will focus our efforts on targeting potential customers who are likely to be interested in our services, such as high-net-worth individuals, small business owners, and those with an interest in investing. We will also work to build relationships with local financial advisors and other industry professionals in order to develop a strong referral network.

Sales Monthly

The company’s primary source of revenue will be from the sales of investment products, with a focus on monthly sales. The company will also offer financial advice and portfolio management services, for which it will charge a fee. Experts predict the following sales each month for our company.

Sales Yearly

The JS Investment Group will generate revenue by selling various services. Experts predict the following sales yearly for our company.

Sales Forecast

Our sales forecast for the next three years predicts a steady increase in revenue. Below is a forecast of sales for our company:

8. Personnel Plan Of Investment Company

Company staff.

The Company Staff will be responsible for the overall management and operation of the investment company. They will be responsible for recruiting and managing a team of qualified and experienced professionals to ensure the success of the business.  The JS Investment Group operations will require the following employees:

The management staff includes:

• Marketing Manager
• Operation Manager
• Investment Manager

The operational team includes:

• Front Desk Coordinator
• Investment Advisor
• Security Guards

Other Staff includes:

• Administrative Assistant
• Tax Planner
• Receptionist

Average Salary of Employees

The investment holding company business plan includes the average salary of employees, which varies according to the role of employees and services. We will offer competitive salaries to all our employees to ensure we attract and retain the best talent. The average salary of our employees will be approximately $40,000 per year.

9. Financial Plan For Investment Company

In collaboration with financial experts, John Smith assessed the company’s financial needs and developed a financial plan for sample of investment company business plan. A three-year financial plan outlines the company’s development.

Important Assumptions

The following are important assumptions for the financial plan of the investment company:

Deviations, however, are expected to be limited to levels that do not impact the investment company’s major financial goals.

Brake-even Analysis

The following is a breakdown of the investment company’s fixed and variable costs:

The following table shows an analysis of monthly break-evens of an investment company

Projected Profit and Loss

The following is the projected profit and loss for an investment company.

Profit Monthly

Profit Yearly

Gross Margin Monthly

Gross Margin Yearly

Projected Cash Flow

The following column diagram shows cash flow projections.

The following table shows the pro forma cash flow of an private equity firm business plan . The cash flow statement includes cash received from operations, cash received from operations, and general assumptions.

Projected Balance Sheet

Below is a projected balance sheet of an investment holding Company Business Plan that shows data about the pro forma balance sheet, total current assets, total long-term assets, total assets, current subtotal liabilities, total liabilities, total capital, and total liabilities.

Business Ratios

The following table shows business ratios, ratio analysis, and total assets.

10. Get the Expertise to Create a Winning Business Plan!

“Start Your Investment Company with Professional Assistance: Get the Support of OGS Capital’s Expert Team!”

At OGS Capital, our experienced consultants provide professional assistance to help you start and grow your investment company. Our team has in-depth knowledge and expertise in launching businesses, and we understand the complexities of the investment industry. We can provide expert advice and guidance to help you create and execute a custom sample business plan for investment holding company that will ensure your investment company’s success.

We can help you with the entire process of developing your business, from crafting a comprehensive financial plan to finding appropriate funding sources. With our knowledge and resources, we can help you create a detailed business plan that will serve as a roadmap for your business.

• What is the main business of an investment company? The main business of an investment company is to manage investments and provide financial advice and solutions to their clients. They may provide services such as portfolio management, asset allocation, retirement planning and financial planning. They may also offer a variety of other services such as stock and bond trading, insurance, estate planning and tax planning.
• Can I create my own investment company? Yes, you can create your own investment company. The process involves registering the company with the SEC, registering with the state in which you will be doing business, setting up the necessary accounts and paperwork, and finding clients. You should also consult a qualified accountant, lawyer, and financial adviser to ensure you have all the appropriate information and documents in place.
• How much does it cost to start an investment firm? The cost of starting an investment firm will vary depending on the type of firm you are looking to establish and the services you plan to provide. Typically, startup costs can range from $5,000 to $50,000, depending on the complexity of the business. Costs may include office equipment, legal and accounting fees, licensing fees, technology costs, marketing costs, and other miscellaneous costs.

Download Investment Company Business Plan Sample in pdf

OGSCapital’s team has assisted thousands of entrepreneurs with top-rate business plan development, consultancy and analysis. They’ve helped thousands of SME owners secure more than $1.5 billion in funding, and they can do the same for you.

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• Business Templates
• Sample Plans

FREE 4+ Holding Company Business Plan Samples in MS Word | Google Docs | Apple Pages | PDF

A holding company is some sort of like parent business entity. Usually a corporation or LLC. While it doesn’t manufacture or sell anything, the overall purpose of this venture is to hold the current stock or membership interests of other companies. The main holding company just oversees these operations, while most of its subsidiary companies actually sell, manufacture, or conduct their own business operations. Other subsidiaries of a holding company hold real estates , intellectual properties , vehicles, equipment, or anything else that the holding company might view as valuable. Holding companies typically exist to better take advantage of a market. It’s like a joint venture but bigger. If multiple subsidiary companies are under one holding company, then they have the ability to share and pool resources, as well as communicate with each other to see how better they can work together.

Holding Company Business Plan

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Businesses are incredibly difficult entities to manage, much more if your company is a larger company operating multiple subsidiary companies. And trying to make that venture successful is a whole another different level of difficulty, especially if the competition is high and overly centralized. It can be too overwhelming to keep track of every component of your business, making sure everything is taken into account. That is why it is necessary for companies big and small to come up with a comprehensive layout for a plan, regardless if their business is a startup ,  or a huge holding company such as in this case. A well-laid out plan helps keep everybody on the loop, especially those who are a part of the managerial department of a company like managers and supervisors, to make sure that they know how to handle everything that may or may not be encountered for the entire duration of the company. A well written and well drafted business plan does really well in tying the concept altogether. It keeps business operations smooth, and mostly without any problems along the way.

Trying to run a business without a business plan is generally not a good idea. And it’s not encouraged like, at all, anywhere, since it would usually mean that you are operating a business without following a clear path. Only setting yourself up for failure. And that’s  why for holding companies, a business plan can be extremely beneficial since you’re basically handling multiple companies. And you would want to make sure that those subsidiary companies and your holding company itself is going down the right path. But before you begin writing your own holding company business plan, you have to get to know the document first to get the best out of it. Check out these holding company business plan samples that we have listed for you down below. Once you’ve acquainted yourself aptly with the document, feel free to use these samples as guides or even as templates for when you want to begin drafting your own business plan.

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A business plan is simply a document that enumerates and describes how a business would want to define the steps that its own management will take to reach the goals that they have set for themselves. A business plan is like a roadmap, or a guideline of sorts, that the entire company can follow depending on how the different departments of the company work with it. Departments like marketing, financial, and operational. Aside from that, business plans can also be used to attract potential business partners and investors even before your company has been fully established. Certainly a good way to secure additional funds and support in the earliest stages of your business. Despite the benefits of the document being more helpful for startup businesses and new companies, every company and organization should be able to come up with their own comprehensive business plan. Properly doing so will give you a tool that you can change and adapt over time, as well as inspect how close you are to reaching your goal. A well written business plan is a document that is able to outline the projected costs of the venture and its estimated outcomes.  As well as inspect the potential pitfalls that every decision made by the management will come with. Even though it’s prominently and widely used in the corporate and business industry, it is still pretty rare to see two business plans from different companies to be completely identical. That is because  a lot of these companies prefer to deal with their problems on their own unique way. And more often that not they do have more unique problems than the same ones.

The length of a business plan varies heavily depending on the nature and the scope of the business that which your plan will cover. But it is pretty common for business plans to be as long as 15 to 20 pages at most. And while it is true  that no two business plans are completely alike, they still do operate with the same elements. These elements are listed and will be discussed in more detail down below.

Your business plan should begin with an executive summary that highlights what the company is and what is stands for. It should present details regarding your mission-vision values, company leadership, employees and employee operations, as well  as where the company is located.

It should then present the products and the services that the company is offering. It should include a list of prices, product lifespan, duration of services, as well as the number of benefits a customer may gain once that have engaged with your business. You can also include details like manufacturing and production processes, as well as patents and proprietary technology, though that is really up to you.

A company needs to have a perfect understanding of its target customer base and their respective demographics. An  aspect that is ramped up to eleven now that you want to be a holding company, which means that you will be operating with an even wider target market. Proper market analysis will give you an idea of who or what the current competition is and how to stay ahead of the competition. It would also outline the expected consumer demand and how difficult it would be to capitalize over that.

After ample market analysis, try to identify the strategies that you will put in place to attract the larger customer base and have them continuously engaged with your business operations. You would want a constant stream of clients and customers, so figure out how you plan to  achieve that. Talk about how you plan to reach your market by highlighting a clear distribution channel that revolves around your marketing and advertising campaigns, and where these campaigns will be disseminated through.

A well laid out financial plan can be very appealing to investors and potential business partners who wish to operate within a company that has the ability to return a good investment. So make sure that your financial planning section reflects just that. Financial statements, balance sheets, and other necessary financial information must be present.

Each company needs to have a proper budget set up and in place. Budget planning should include the costs, manufacturing, development, marketing, as well as the expenses that your business will be a part of.

A holding company can be an LLC at the same time since it’s simply an entity that holds other companies or subsidiaries as well as their assets.

Holding company laws generate a corporation or a business formed only to hold stock shares for other businesses or companies.

To maximize the protection of your assets, you can opt to form two LLCs, one a holding company, and one an operating company.

One last important thing to remember about a business plan is that the document is not supposed to be static. It’s ‘live’, meaning that the document has to be checked and updated regularly to see your business’ progress in real time.

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