sample business plan for palay trading

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Trading Business Plan

Starting a trading business can be challenging because you have to build contacts, negotiate, and whatnot. But amidst worrying about all these things, planning is the last thing you want to worry about.

While anyone can start a new business, you need a detailed business plan when it comes to raising funding, applying for loans, and scaling it like a pro!

Need help writing a business plan for your trading business? You’re at the right place. Our trading business plan template will help you get started.

Free Business Plan Template

Download our free business plan template now and pave the way to success. Let’s turn your vision into an actionable strategy!

• Fill in the blanks – Outline
• Financial Tables

How to Write A Trading Business Plan?

Writing a trading business plan is a crucial step toward the success of your business. Here are the key steps to consider when writing a business plan:

1. Executive Summary

An executive summary is the first section planned to offer an overview of the entire business plan. However, it is written after the entire business plan is ready and summarizes each section of your plan.

Here are a few key components to include in your executive summary:

Introduce your Business:

Start your executive summary by briefly introducing your business to your readers.

Market Opportunity:

Mention your product range:.

Highlight the product range of your trading business you offer your clients. The USPs and differentiators you offer are always a plus.

Marketing & Sales Strategies:

Financial highlights:, call to action:.

Ensure your executive summary is clear, concise, easy to understand, and jargon-free.

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2. Business Overview

The business overview section of your business plan offers detailed information about your company. The details you add will depend on how important they are to your business. Yet, business name, location, business history, and future goals are some of the foundational elements you must consider adding to this section:

Business Description:

Describe your business in this section by providing all the basic information:

Describe what kind of trading company you run and the name of it. You may specialize in one of the following trading businesses:

• Retail trading
• Wholesale trading
• Export-import
• Dropshipping
• Describe the legal structure of your trading company, whether it is a sole proprietorship, LLC, partnership, or others.
• Explain where your business is located and why you selected the place.

Mission Statement:

Business history:.

If you’re an established trading business, briefly describe your business history, like—when it was founded, how it evolved over time, etc.

Future Goals

This section should provide a thorough understanding of your business, its history, and its future plans. Keep this section engaging, precise, and to the point.

3. Market Analysis

The market analysis section of your business plan should offer a thorough understanding of the industry with the target market, competitors, and growth opportunities. You should include the following components in this section.

Target market:

Start this section by describing your target market. Define your ideal customer and explain what types of services they prefer. Creating a buyer persona will help you easily define your target market to your readers.

Market size and growth potential:

Describe your market size and growth potential and whether you will target a niche or a much broader market.

Competitive Analysis:

Market trends:.

Analyze emerging trends in the industry, such as technology disruptions, changes in customer behavior or preferences, etc. Explain how your business will cope with all the trends.

Regulatory Environment:

Here are a few tips for writing the market analysis section of your trading business plan:

• Conduct market research, industry reports, and surveys to gather data.
• Provide specific and detailed information whenever possible.
• Illustrate your points with charts and graphs.
• Write your business plan keeping your target audience in mind.

4. Products And Services

The product and services section should describe the specific services and products that will be offered to customers. To write this section should include the following:

Describe your products:

Mention the trading products your business will offer. This may include product categories, product range, product features, product sourcing, etc.

Describe each service:

Mention the trading services your business will offer. This may include:

• Logistics & shipping
• Warehousing & storage
• Distribution & fulfillment

Additional Services

In short, this section of your trading plan must be informative, precise, and client-focused. By providing a clear and compelling description of your offerings, you can help potential investors and readers understand the value of your business.

5. Sales And Marketing Strategies

Writing the sales and marketing strategies section means a list of strategies you will use to attract and retain your clients. Here are some key elements to include in your sales & marketing plan:

Unique Selling Proposition (USP):

Define your business’s USPs depending on the market you serve, the equipment you use, and the unique services you provide. Identifying USPs will help you plan your marketing strategies.

Pricing Strategy:

Marketing strategies:, sales strategies:, customer retention:.

Overall, this section of your trading business plan should focus on customer acquisition and retention.

Have a specific, realistic, and data-driven approach while planning sales and marketing strategies for your trading business, and be prepared to adapt or make strategic changes in your strategies based on feedback and results.

6. Operations Plan

The operations plan section of your business plan should outline the processes and procedures involved in your business operations, such as staffing requirements and operational processes. Here are a few components to add to your operations plan:

Staffing & Training:

Operational process:, equipment & machinery:.

Include the list of equipment and machinery required for trading, such as office equipment, warehouse equipment, transportation vehicles, packaging & testing equipment, etc.

Adding these components to your operations plan will help you lay out your business operations, which will eventually help you manage your business effectively.

7. Management Team

The management team section provides an overview of your trading business’s management team. This section should provide a detailed description of each manager’s experience and qualifications, as well as their responsibilities and roles.

Founders/CEO:

Key managers:.

Introduce your management and key members of your team, and explain their roles and responsibilities.

Organizational structure:

Compensation plan:, advisors/consultants:.

Mentioning advisors or consultants in your business plans adds credibility to your business idea.

This section should describe the key personnel for your trading business, highlighting how you have the perfect team to succeed.

8. Financial Plan

Your financial plan section should provide a summary of your business’s financial projections for the first few years. Here are some key elements to include in your financial plan:

Profit & loss statement:

Cash flow statement:, balance sheet:, break-even point:.

Determine and mention your business’s break-even point—the point at which your business costs and revenue will be equal.

Financing Needs:

Be realistic with your financial projections, and make sure you offer relevant information and evidence to support your estimates.

9. Appendix

The appendix section of your plan should include any additional information supporting your business plan’s main content, such as market research, legal documentation, financial statements, and other relevant information.

• Add a table of contents for the appendix section to help readers easily find specific information or sections.
• In addition to your financial statements, provide additional financial documents like tax returns, a list of assets within the business, credit history, and more. These statements must be the latest and offer financial projections for at least the first three or five years of business operations.
• Provide data derived from market research, including stats about the industry, user demographics, and industry trends.
• Include any legal documents such as permits, licenses, and contracts.
• Include any additional documentation related to your business plan, such as product brochures, marketing materials, operational procedures, etc.

Use clear headings and labels for each section of the appendix so that readers can easily find the necessary information.

Remember, the appendix section of your trading business plan should only include relevant and important information supporting your plan’s main content.

The Quickest Way to turn a Business Idea into a Business Plan

Fill-in-the-blanks and automatic financials make it easy.

This sample trading business plan will provide an idea for writing a successful trading plan, including all the essential components of your business.

After this, if you still need clarification about writing an investment-ready business plan to impress your audience, download our trading business plan pdf .

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Frequently asked questions, why do you need a trading business plan.

A business plan is an essential tool for anyone looking to start or run a successful trading business. It helps to get clarity in your business, secures funding, and identifies potential challenges while starting and growing your business.

Overall, a well-written plan can help you make informed decisions, which can contribute to the long-term success of your trading company.

How to get funding for your trading business?

There are several ways to get funding for your trading business, but self-funding is one of the most efficient and speedy funding options. Other options for funding are:

• Bank loan – You may apply for a loan in government or private banks.
• Small Business Administration (SBA) loan – SBA loans and schemes are available at affordable interest rates, so check the eligibility criteria before applying for it.
• Crowdfunding – The process of supporting a project or business by getting a lot of people to invest in your business, usually online.
• Angel investors – Getting funds from angel investors is one of the most sought startup options.

Apart from all these options, there are small business grants available, check for the same in your location and you can apply for it.

Where to find business plan writers for your trading business?

There are many business plan writers available, but no one knows your business and ideas better than you, so we recommend you write your trading business plan and outline your vision as you have in your mind.

What is the easiest way to write your trading business plan?

A lot of research is necessary for writing a business plan, but you can write your plan most efficiently with the help of any trading business plan example and edit it as per your need. You can also quickly finish your plan in just a few hours or less with the help of our business plan software .

About the Author

Upmetrics Team

Upmetrics is the #1 business planning software that helps entrepreneurs and business owners create investment-ready business plans using AI. We regularly share business planning insights on our blog. Check out the Upmetrics blog for such interesting reads. Read more

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Trading Business Plan

Published Mar.29, 2024

Updated May.04, 2024

By: Alex Silensky

Average rating 5 / 5. Vote count: 3

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Table of Content

According to a report, 13% of day traders maintain consistent profitability over six months, and a mere 1% succeed over five years. This is primarily due to inadequate planning and undercapitalization. A well-crafted trading business plan can help you avoid these pitfalls, and this article will guide you.

In this article, you’ll learn:

• The current trends and growth forecasts in the stock trading industry
• A breakdown of the costs involved in starting a trading company
• The key components of a trading business plan (with a trading business plan example)
• Strategies for securing funding and overcoming the barriers to entry

By the end of this article, you’ll understand what it takes to create a business plan for an investment company , positioning your trading business for long-term success in this lucrative but highly competitive industry.

Pros and Cons of Trading Company

Let’s explore the pros and cons associated with running a trading company before diving into the specifics of a trading site business plan. Understanding them will help you make informed decisions:

• Potential for significant profits.
• Flexibility in terms of time and location.
• Opportunity for continuous learning and skill development.
• High risk due to market volatility.
• Emotional stress and psychological pressure.
• Requirement for constant vigilance and discipline.

Trading Industry Trends

Industry size and growth forecast.

According to a report , the global stock trading and investing applications market size was at around $37.27 billion in 2022 and projects to grow at a CAGR of 18.3% from 2023 to 2030 (Source: Grand View Research). The following factors drive this growth:

• Increasing internet penetration
• Rising disposable income
• Growing awareness of investment opportunities.

(Image Source: Grand View Research)

The Services

As per our private equity firm business plan , a stock trading business offers various services, including:

• Facilitating Trades on behalf of clients
• Algorithmic trading services to automatically execute trades
• Market Insights (research reports, market analysis, and economic forecasts)
• Technical and Fundamental Analysis (price charts, historical data, and company fundamentals)
• Investment Recommendations
• Seminars and Webinars
• Online Courses
• Demo Accounts
• Portfolio Diversification
• Stop-Loss Orders
• Hedging Strategies
• Direct Market Access (DMA)
• Global Market Access
• Trading Platforms
• Mobile Apps
• High-Frequency Trading (HFT)
• Legal and Compliance Services
• Educate clients about Risk Disclosure

How Much Does It Cost to Start a Trading Company

According to Starter Story, you can expect to spend an average of $12,272 for a stock trading business. Some key startup costs include:

How Much Can You Earn from a Trading Business?

Earnings in the trading business can vary significantly and depend heavily on:

• Trading strategy and approach
• Market conditions and volatility
• Risk management techniques
• Capital allocation and leverage

While specific income figures are difficult to predict due to these factors. However, here are some statistics showing the earning potential of a stock trading business:

• According to Investopedia, only around 5% to 20% of day traders consistently make money.
• According to Indeed Salaries, the average base salary for a stock trader in the U.S. is $80,086 per year.
• 72% of day traders ended the year with financial losses, according to FINRA.
• Among proprietary traders, only 16% were profitable, with just 3% earning over $50,000. (Source: Quantified Strategies)

What Barriers to Entry Are There to Start a Trading Company

Barriers to entry into the stock trading business include:

• Regulatory Requirements: Obtaining necessary licenses and registrations from governing bodies like the SEC and FINRA is a complex and time-consuming process.
• Capital Requirements: Trading activities require significant capital to manage risks and leverage opportunities, which can be a substantial challenge for new or small firms.
• Technological Expertise: Developing or acquiring sophisticated trading platforms, algorithms, and data analysis tools is costly and requires specialized expertise.
• Market Knowledge and Experience: Gaining in-depth knowledge and practical experience in the complex and dynamic financial markets takes years of dedicated study.
• Competitive Landscape: Breaking into the highly competitive trading industry dominated by established firms and well-funded proprietary trading desks is challenging for new entrants.

You can overcome these barriers by developing unique strategies, leveraging innovative technologies, and offering competitive and specialized services to differentiate yourself in the market. Do check our financial advisor business plan to learn more.

Creating a Trading Business Plan

A well-researched stock trading business plan is crucial to start a trading business. A general trading company business plan is a comprehensive document that defines your goals, strategies, and the steps needed to achieve them. It helps you stay organized and focused and increases your chances of securing funding if you plan to seek investors or loans.

Steps to Write a Trading Business Plan

You can use a business plan template for a trading company or follow these steps to prepare a business plan for a personal trading business:

Step 1: Define Your Goals and Investment Objectives

Step 2: Conduct Market Research

Step 3: Develop Your Trading Strategy

Step 4: Establish Your Business Structure

Step 5: Develop a Financial Plan

Step 6: Outline Your Operational Procedures

Step 7: Create a Marketing and Growth Strategy

Step 8: Implement Risk Management

Step 9: Create an Exit Strategy

What to Include in Your Trading Business Plan

Executive summary, company overview.

• Market Analysis
• Trading Strategy and Risk Management
• Operations and Technology
• Financial Projections
• Management and Organization
• Appendices (e.g., research, charts, legal documents)

Here’s an online trading business plan sample of ABC Trading:

ABC Trading, a recently established stock trading firm, provides online trading services to individuals and institutional investors. Key highlights of our business include:

• Vision – Becoming a leading online trading platform with a wide range of trading products and services.
• Values – Our core focus is innovation, excellence, integrity, and customer satisfaction.
• Target market – Tech-savvy and risk-tolerant investors looking for alternative ways to invest their money and diversify their portfolios.
• Revenue model – Commissions and fees for each trade, as well as subscription fees for premium features and services.
• Financial goal – Break even in the second year of operation and generate a net profit of $1.2 million in the third year.

ABC Trading is seeking $500,000 seed funding to launch its platform, acquire customers, and expand its team.

Company Name: ABC Trading

Founding Date: January 2024

Location: Delaware, USA

Registration: Limited Liability Company (LLC) in the state of New York

Regulated By: Securities and Exchange Commission (SEC) and the Financial Industry Regulatory Authority (FINRA)

Our team comprises seasoned professionals with diverse finance, mathematics, computer science, and engineering backgrounds.

Marketing Plan

Marketing Strategy: We aim to leverage online channels, such as social media, blogs, podcasts, webinars, and email newsletters, to create awareness, generate leads, and convert prospects into customers.

Marketing Objectives:

• Reach 100,000 potential customers in the first year of operation
• Achieve a 10% conversion rate from leads to customers
• Retain 80% of customers in the first year and increase customer lifetime value by 20% in the second year

The customer profile of ABC Trading includes the following characteristics:

• Age: 25-65 years old
• Gender: Male and female
• Income: Above $100,000 per year
• Education: Bachelor’s degree or higher
• Occupation: Professionals, entrepreneurs, executives, or retirees
• Location: US or international
• Trading experience: Intermediate to advanced
• Trading goals: Income generation, capital appreciation, risk diversification, or portfolio optimization
• Trading preferences: Stocks, options, or both
• Trading style: Technical, trend following, or volatility trading
• Trading frequency: Daily, weekly, or monthly
• Trading risk: Low, medium, or high

Marketing Tactics:

• Create and distribute engaging and informative content on social media platforms
• Offer free trials, discounts, referrals, and loyalty programs
• Collect and analyze customer feedback and data to improve and personalize the customer experience
• Partner with influencers, experts, and media outlets in the trading and finance niche

Marketing Budget:

We will allocate $10,000 for our marketing campaign, which we will use for the following purposes:

Operations Plan

ABC Trading’s operations plan ensures the smooth and efficient functioning of the company’s platform and services and compliance with the relevant laws and regulations.

Operation Objectives:

• Maintain a 99% uptime and availability of the company’s platform and services
• Ensure the security and privacy of the company’s and customers’ data and funds
• Provide timely and professional customer support and service

Operation Tactics:

• Use cloud-based servers and services
• Implement encryption, authentication, and backup systems
• Hire and train qualified and experienced customer service representatives and technicians
• Monitor and update the company’s platform and services regularly
• Follow the best practices and standards of the industry and adhere to the applicable laws and regulations

Operation Standards:

Financial Plan

ABC Trading’s financial plan is to provide a realistic and detailed projection of the company’s income, expenses, and cash flow for the next three years, as well as the key financial indicators and assumptions that support the projection.

Financial Objectives:

• Achieve a positive cash flow in the second year of operation.
• Reach a break-even point in the second year of operation.
• Generate a net profit of $1.2 million in the third year of operation.
• Maintain a healthy financial ratio of current assets to current liabilities of at least 2:1.

Financial Assumptions:

• Launch its platform and services in the first quarter of 2024
• Acquire 10,000 customers in the first year, 20,000 customers in the second year, and 30,000 customers in the third year
• Average revenue per customer will be $50 per month, based on the average number and size of trades and the subscription fees
• Average operating expense per customer will be $10 per month, based on the average cost of salaries, rent, utilities, marketing, and legal fees
• Pay a 25% tax rate on its net income
• Reinvest 50% of its net income into the company’s growth and development

Projected Income Statement:

Projected Cash Flow Statement

Projected Balance Sheet

Fund a Trading Company

To successfully establish and operate a trading company, raising funds to finance daily operations and business expansion is crucial. There are different ways with their advantages and disadvantages:

1. Self-funding (Bootstrapping)

Self-funding, also known as bootstrapping, is when the founder or owner of the trading company uses their own personal savings, family business ideas , assets, or income to finance the business. This is the most common and simplest way to fund a trading company, especially in the early stages.

• Complete ownership and control
• Flexibility in decision-making
• Potential for higher long-term returns
• Limited access to capital
• Personal financial risk
• Slower growth potential

2. Debt Financing

Debt financing involves borrowing money from lenders, such as banks, credit unions, or microfinance institutions, to fund the trading company’s operations. The borrowed funds must be repaid with interest over a specified period.

• Retain ownership and control
• Potential tax benefits from interest deductions
• Disciplined approach due to repayment obligations
• Debt burden and interest payments
• Collateral requirements and personal guarantees
• Difficulty in securing financing for startups

3. Angel Investors

Angel investors are wealthy individuals who invest their own money into early-stage or high-potential trading companies in exchange for equity or convertible debt. Angel investors typically provide smaller funding than venture capitalists and offer mentorship, guidance, and access to their network.

• Access to capital and industry expertise
• Potential for additional mentorship and guidance
• Lower risk compared to traditional investors
• Dilution of ownership and control
• Potential for conflicting visions and expectations
• Limited resources compared to larger investors

4. Venture Capital (VC) Funding

Venture capital firms are professional investment firms that provide capital to high-growth startups in exchange for equity ownership. They typically invest large sums of money and are active in the company’s management and strategic direction.

• Access to substantial capital for growth
• Expertise and industry connections from the VC firm
• Validation and credibility for the business
• Significant dilution of ownership and control
• Intense pressure for rapid growth and return on investment

Depending on your business model, goals, and needs, you may also consider other options, such as grants, subsidies, partnerships, etc. Ensure to check for relevant documents, like the hedge fund private placement memorandum . The best way to fund your trading company is the one that suits your situation and preferences.

OGSCapital: Your Strategic Partner for Business Success

At OGSCapital, we specialize in professional business plans that empower startups, established companies, and visionary entrepreneurs. With over 15 years of experience, our seasoned team combines financial acumen, industry insights, and strategic thinking to craft comprehensive plans tailored to your unique vision. Whether you’re seeking funding, launching a new venture, or optimizing your existing business, we’ve got you covered.

If you have any further questions regarding how to write a business plan for your trading business, feel free to contact us. Our team at OGSCapital is here to support you on your entrepreneurial journey. You can also check our hedge fund business plan sample here.

Download Trading Business Plan Template in PDF

Frequently Asked Questions

What does a trading business include?

A trading business involves trading stocks and other financial instruments under a legal business structure. It includes:

• Market analysis
• Trading strategy
• Risk management

How does a trading company work?

A stock trading company facilitates the buying and selling of stocks (shares) on behalf of investors. These companies operate within stock exchanges, executing trades based on specific trading strategies.

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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Start a Rice Business in the Philippines: 3 Options You Can Do

I’ll try not to bore you with overused facts. You already know how rice is to Filipinos and that’s probably why you’re looking into how to start a rice business in the Philippines. I caught up with Bryan Dizon, my brother-in-law, farmer extraordinaire, and owner of  Javenri Harvest Farm   (“Javenri”), and asked the questions you may have on rice production and selling in our country. Though I suspect the lessons here apply to other countries, too. 

Page Contents

The Rice Value Chain and Players

When we say rice business or  bigasan , the most common interpretation is that of a retailer or wholesaler. But there are several ways you can get into the industry. Here’s a list of your options as a business. We’ll also talk about the profit margins you might expect per business type. 

All of the succeeding data are from the  Philippine Statistics Authority  (PSA) as presented by the  Department of Agriculture  (DA) in their training for trainers. 

A lot of functions also overlap and may be carried out by a single player. For example, farmers may go directly to millers or even retailers. Skipping a few steps may mean more profit but also at the expense of more work. 

Growers or farmers

The value chain starts with the farmers or growers. In terms of profit per kilogram, they have the highest at Php4.33/kg.

Keep in mind though that this is over the course of the entire process. That’s until harvesting or about 3 months in total. We’re not even mentioning the labor-intensive nature of a grower’s business. 

Traders get the fresh unhusked rice ( palay ) and dry them ready for milling. As the middlemen between farmers and retailers, they’ve been given a bad rap for a few reasons (e.g., hoarding). But as long as farm-to-market roads are unavailable, traders have an important role to fill. 

Wholesalers and retailers

For people who want to start, the most popular rice business option is selling because it is a straightforward process. You look for a good location, apply for the relevant business permits and licenses ( BIR , DTI/SEC,  NFA ), buy the necessary equipment and assets, set up your management system, and so on.  

What high demand means to you as a business

The good news is, demand for rice in the Philippines is high. As a country, we’re consistently in the  Top 10 Rice Consumers in the World . Here’s the bad news: High demand doesn’t automatically imply large profits. 

That’s a common misconception prevalent in the industry. I got this quote from one of the top results in Google.

Sorry, but NO! This approach fails to see the other side of the same coin,  supply . If both supply and demand are high, then it’s a wash. There may even be billions or trillions of rice sacks demanded, but if supply is as widespread as demand, then that just means smaller margins for you, and potentially a losing business. 

Let’s get back to the dealership example in the quote. If it’s that easy to enter the market as a dealer, then you’re most likely going up against entrepreneurs who want the same pie. The low barriers to entry mean more players, and ultimately smaller profits per dealer (and occasionally losses).

The point here being profit margins are dictated by more than just demand . There’s supply, which is partly determined by barriers to entry, and there are other economic factors to consider. 

( Related: See Blue Ocean Strategy )

Understanding this is crucial when assessing the expected returns that follow. 

Expected returns per business type

The expected profits mentioned in the following texts are also from the PSA, presented by the DA. The margins per business model are also presented in this table. 

According to the dataset from the Philippine Statistics Authority: 1. Farmer (fresh palay) = 27.8% 2. Palay trader (dry palay) = 2.7% 3. Miller trader (milled rice) = 6.7% 4. Wholesaler (milled rice) = 1.6% 5. Retailer (milled rice) = 2.8%

Keep in mind that the returns are based on PSA’s sales and profit figures, and do not consider external economic and non-economic factors. That is, you may be getting less per kilogram as a trader, but also consider that it takes less effort and risk. When choosing a rice business type, capital, business plan complexity, and niche are also factors to think about. And of course, your risk tolerance and preferences should be taken into account.

Consider these tradeoffs when choosing a rice business model to pursue. 

( Related: 3 Easy Steps to Assess Business Viability )

Movement towards Mechanization 

In 2019, the Rice Tariffication law ( RA 11203 ) was signed, allocating Php10 billion per year towards the mechanization, training, credit, and other initiatives for the betterment of the Philippine rice industry. 

This has some implications for you as a business player in the rice industry. 

One example is the  potential for higher gains due to the mechanization , and lower overhead, of operations. This has been a contentious act though due to the lost jobs for farmers. But the idea, at least in economic theory, is they’ll eventually shift jobs to more productive uses. The change in work enhances the overall productivity of the economy. 

It’s a short-term problem with a long-term gain. 

Other aspects to take note of the excess tariff are financial assistance, land titling, crop insurance, farm diversification. The gist is this: We’re making strides to increase the competitiveness of the Philippine rice industry relative to our ASEAN neighbors.  Riding this wave as an entrepreneur might not be a bad idea. 

People wanting to start rice businesses in the Philippines should know that there are opportunities other than rice selling as retail or wholesale rice suppliers . Your 3 options are as a (1) grower/farmer, (2) trader, and (3) wholesaler/retailer.

PSA statistics are of great help, but keep in mind the economic tradeoffs per business model. Higher earnings usually come at the cost of more work and risks. 

If you’re interested in starting a rice business, or maybe want to ramp up your existing rice production through training sessions and consultations, you may get in touch with Bryan at Javenri’s Facebook page . Javenri Harvest Farm is a certified training school in the Farmer Field School in Rice Production, a TESDA-sponsored training program . 

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Bigasan Business 2024: How To Start, Capital, Profit (Plus, Tips To Succeed)

Rice has been a staple of the Filipino diet since time immemorial . Therefore, opening a bigasan business or a rice retail business in the Philippines can be a profitable venture for you if the conditions are right.

As with any other food business, there are two ways to make this happen. Either start your own rice retailing business or franchise an already-established brand .

Each has pros and cons, so you should weigh your options carefully before venturing into this type of business.

Let this short article be your guide.

Table of Contents

What is a bigasan or rice retail business.

A bigasan is a retail store that sells a variety of rice. In the Philippines, this is typically done through a simple storefront where bags of rice are opened as a display for customers. The name of the variety of rice and the corresponding price are shown on each bag.

Customers need only tell the store’s staff what variety and how much rice they buy. The staff will then put the requested amount in a bag and weigh it before the customer. After the customer pays for it, then the transaction is complete.

There are specialized rice businesses that sell only rice, but there are also retail outlets, such as sari-sari stores , that carry rice as part of their selection of products.

Bigasan Business at a Glance

How much capital you need to start a bigasan business depends on your business model. Capital investment may start from ₱50,000 (retailer) to ₱300,000 (franchise).

2. Customers

Residences, restaurants, hotels, and other establishments that sell rice meals.

3. Competitors

Usually, just other rice businesses. The supermarkets have a different client base since rice from supermarkets is usually at least 50% more expensive.

4. Who Is It For?

People who prefer to run a simple retail store with an already established market.

5. Pros & Cons

• Steady demand since Filipinos eat rice every day
• It requires minimal marketing because consumers are already familiar with the product
• Straightforward business with the potential to make a living out of it
• Rice is vulnerable to pest attacks, especially if stored improperly
• The quality of rice deteriorates after three months; it spoils easily
• Challenging to be different from competitors aside from the price

How Does a Bigasan or Rice Business Make Money?

Rice businesses typically buy their rice bags from a wholesaler. They then add a markup or “patong” to the cost of the rice. After that, they decide the price per kilogram to sell the rice to their customers. Whatever they earn from selling the rice becomes the income from the rice business.

Note that having a sizable margin is challenging unless you buy in bulk. That’s why it’s typical for a rice business to have a high capital requirement.

Where Can I Find a Rice Supplier?

If you are not getting a franchise, you must find a rice supplier yourself. This could be a wholesaler, a rice mill, or a farmer. You are more likely to know the best places to get rice if you search your area. However, here’s a quick list of well-known rice suppliers in the Philippines:

• DanJethro Grains by A&V Rice Mill – an independent rice mill in Mapandan, Pangasinan, operating since 1993.
• Wil-Lys Cereal Trading Corporation – located in Solana, Cagayan. They sell many varieties, including export-quality rice.
• JDL Nueva Ecija Rice Dealer – also known as Jorem Palay Buying Station, this supplier has been selling farm-fresh rice from Lupao, Nueva Ecija, for 30+ years.
• Primavera Rice Mills – selling quality rice for 46+ years now; among the top rice suppliers for restaurants and fast-food chains in Metro Manila. They are located in Guiguinto, Bulacan .
• RMR Rice Mill – is a popular wholesaler among rice retailers. They are located at Wakas Intercity, an agricultural bagsakan , in Bocaue, Bulacan.

If there is no viable rice supplier in your area, you may want to look for a franchise instead. Here’s a quick list of rice retail franchises you can contact:

• GRAINSMART – has more than 800 franchise branches nationwide. Aside from rice, they also have gas and water refilling business franchise packages. Their head office is located in Quezon City, Metro Manila.

Update: Bigasanko.com has been removed from the list due to an inactive social media page.

How To Start a Bigasan Business in the Philippines: 9 Steps

1. research your market and competitors.

You can’t expect to start a bigasan or rice retail business and succeed right away. You first need to know about your area’s potential customers and competitors.

Find out the typical kinds of rice people in your area buy. How much do they pay for it? If you do start a rice business, then can you also sell it at the same or a cheaper price?

Next, you need to learn any information you can about your competitors. How many are there, and where are they located? If there are too many rice retailers, you may want to rethink starting one yourself.

2. Choose a Location Frequented by Your Target Market

Find a location where it’s convenient for your customers to buy from you. Examples would be groceries or wet markets ( “palengkes” ) where people are already conditioned to buy rice.

You also have to ensure enough space to store and display the sacks of rice in your chosen location. It’s also ideal that you can keep the rice there safely so the product will be protected from heat, pests, and even floods.

3. Choose the Right Rice Supplier

With your research in hand, you now have to find a supplier for the rice typically bought in your area.

You have the option to:

• Find a wholesaler or rice mill that can deliver to your area
• Become a rice business franchisee

List all available suppliers and cultivate a long-term relationship with them. This way, you can avail of discounts when buying in bulk and provide your customers with a wide variety of rice.

Your goal is to get a price to remain competitive in your area. If you can find an excellent supplier, starting a rice retail business will be much cheaper than becoming a franchisee.

However, becoming a rice business franchisee has benefits that justify the additional cost. They already have an established way of getting a rice supply, so getting started’s much easier. You can also learn how to run a successful bigasan from them.

4. Secure a License From the National Food Authority (NFA)

Once confident that you can successfully run a rice retail business in your chosen area, you must start with government compliance .

The law states that the National Food Authority (NFA) must approve every corn or rice business in the Philippines, whether commercial or NFA rice/corn.

If you plan to open numerous outlets, you need one license for your primary/principal store. All other outlets will be considered as branches.

To get the license, go to the NFA office that has jurisdiction over where you plan to establish the rice business in the Philippines.

Get the application form from the licensing officer (LO).

Submit the accomplished form and pay the application fee of ₱100. The license fee varies depending on your capital.

5. Ensure That You Have the Required Equipment and Facility To Start the Rice Business

An NFA personnel will personally visit your store to check for the following:

• Calibrated weighing scale
• Price tags (the price of the rice per kilogram)
• White-painted rice boxes
• Signboard (45 cm wide and 75 in long) showing your business name, NFA control number, and the words “Licensed Grains Retailer” or “Wholesaler”
• Classification, variety, and grade of the rice grains you’re going to sell

Once approved, the NFA inspector will issue you a notice of inspection. Bring this with the official receipt and proof of compliance with deficiencies (if any) to the NFA office to get the license.

For franchisees of Grainsmart , you don’t need to file for a license because it’s already included in their packages. The downside is that you need to shell out higher capital to start the franchise business –a minimum of ₱298,000 for Grainsmart.

6. Register Your Business

Register the bigasan business with the Department of Trade and Industry (DTI) if you’ll operate it as a sole proprietorship or the  Securities and Exchange Commissions (SEC) for rice businesses run by a partnership or corporation.

You must also register with the BIR and get a business permit from your municipal or city hall. After that, your business registration is complete. Just note that you must file monthly, quarterly, and annual taxes . You also have to pay fees to your LGU quarterly or annually.

7. Set Up Your Bigasan & Store Your Rice Properly

Taking care of your rice starts from the supplier and ends only when your customers buy it. When transporting rice, separate it from other goods and make sure they’re all appropriately covered. 

Otherwise, prolonged sun exposure will cause the rice to lose moisture and shrink by up to 3%. The insufficient covering may also expose it to flying weevils ( bukbok ), especially if the transport vehicle passes by rice fields.

Once it arrives at your store, handle it with care. Don’t throw the rice bags, or the grains might break.

Keep the storage space clean and sanitized to prevent infestation of rats, molds, weevils ( bukbok ), and other pests.

Use the “first-in, first-out” inventory method to ensure that every sack of rice sold is high-quality and doesn’t exceed its shelf life. Remember, rice quality decreases significantly after three months. Any rice that spoils will dramatically impact the profitability of your rice business.

8. Promote Your Bigasan

You should know what’s essential for your customers when choosing a bigasan. Communicate that you can deliver that critical benefit.

You can be as creative as possible when promoting your bigasan locally and online. Talk to your neighbors—partner with other businesses. Join chat groups for the local community. 

There are many ways to promote a bigasan business. As long as your target customers are there, you should also promote there.

9. Be Strict With Your Inventory & Records

A common reason why a rice retail business might fail is because of poor inventory and record management. A few kilograms of lost or damaged rice can wipe out more than a day’s worth of your income.

So make sure to be very strict in taking care of your inventory. You should also record everything that goes in and out of your store. 

If you don’t know how to do your records correctly, you can use the template for the sari-sari store inventory and sales record provided here . It’s the same concept, but you only have to list down your rice’s different varieties, brands, and weights.

Tips & Warnings

• Set aside a regular budget for the rice supply. Some dealers won’t deliver rice to retailers unless they order a minimum amount of rice from them.
• Try to avoid selling any rice on credit, especially for residential clients. It might be unavoidable for business clients; however, deal only with reputable businesses. Bad debts can severely impact your operations.

Go back to the main article: Best Small Business Ideas in the Philippines with High Profit 

Written by Rod Michael Perez

in Business and Finance , Juander How

Last Updated May 3, 2024 11:34 AM

Rod Michael Perez

Rod Michael Perez is a freelance writer with over 7 years of experience in writing long-form articles, ad copy, and SEO content for local and foreign clients. He is also an aspiring startup founder and believes that the Philippines could be the next hub for startup culture. He takes care of his dog, a poodle-Shih Tzu hybrid, in his spare time.

Browse all articles written by Rod Michael Perez

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Rice Farming Business Plan [Sample Template]

By: Author Tony Martins Ajaero

Home » Business Plans » Agriculture Sector

Are you about starting a rice farm? If YES, here is a complete sample rice farming business plan template & feasibility report you can use for FREE .

In the United States of America and of course in most parts of the world, rice is one of the stable foods that is consumed by every household. This goes to show that there are loads of business opportunities that revolve around rice and one of such opportunities is commercial rice farming business.

One good thing about this business is that if you can combine rice farming and rice processing, then your market will not be limited to just the united states of America but the rest of the world.

Although there are some states in the US that naturally support the cultivation of rice, but with latest technological advancement in the agriculture industry, you can successfully cultivate rice in most parts of the United States and not only around coastal regions.

A Sample Rice Farming Business Plan Template

1. industry overview.

Rice farming cum processing is an important sector of the economy of the United States. Amongst the US row crop farms, rice farms are the most capital-intensive, and have the highest national land rental rate average. In the United States, all rice acreage requires irrigation.

For instance, between 2000 and 2009 approximately 3.1 million acres in the US were under rice production, while an increase is expected in the next decade to approximately 3.3 million acres. It is on record that California rice is grown on approximately 500,000 acres, with the annual crop valued at approximately $780 million.

The commercial rice farming industry contributes half a billion dollars every year to the economy of the state of California. It is the base for highly skilled, living wage jobs in California and, through exports, all across various countries of the world.

Commercial rice farming is indeed one of many businesses that an entrepreneur who is interested in going into commercial farming can major in.

As a matter of fact, there are several commercial rice farms cum rice production companies scattered all around South American and costal states in the United States of America. This is so because rice easily grow and thrive pretty well in water – logged areas.

Establishments in the commercial rice farming industry primarily grow rice, which is then sold to millers for processing. The product is generally then sold to retailers, wholesalers, food processors and food-service establishments to reach the final consumer.

Statistics has it that farming (most especially commercial farming) of which rice farming is a part of employs more than 24 million American workers (which is roughly17 percent of the total workforce in the United States). For example, in 2006, the average American commercial farmer grew enough food for about 144 other people and also in 1940, the average farmer grew food for about 19 other people (which was close to enough food).

Records has it that in 2007, just 187,816 of the 2.2 million farms in the United States of America accounted for 63% of sales of agricultural products, marking a trend toward the concentration in agricultural production. Agricultural efficiency has increased over the past century from 27.5 acres/worker in 1890 to 740 acres/worker in 1990.

The performance of the Commercial Rice Framing industry depends to a larger extent on favorable farming conditions, with industry revenue fluctuating in line with production. It is a known fact that rice is a water-intensive crop and decreasing annual rainfall over the past five years negatively affected the cultivation cum harvest of rice hence decline in revenue generation for the industry.

In addition, reduced irrigated water allocations for commercial rice farmers, due to other agricultural industries, have caused production to decline following strong performances in the early stages of the last half – a – decade. Lastly, with the recent advancement in technology, farmers can now comfortably grow crops such as rice in regions where such crops can hardly survive and in places where there are low rainfalls – many thanks to the irrigation.

2. Executive Summary

Darren Pitcher® Commercial Rice Farms, LLC is a world class and registered commercial rice farm that will be based in the outskirt of Tallahassee, Florida – United States. We have done our detailed market research and feasibility studies and we were able to secure a well – situated and suitable farm land to start our commercial rice farming business.

Our commercial rice farming business is a going to be standard commercial rice farm hence will be involved in both commercial rice cultivation and processing and packaging of rice. We will be involved in both organic commercial rice farming and non – organic commercial rice farming.

We have put plans in place that will help us launch a standard and world – class rice processing and packaging plant within the first three years of officially running Darren Pitcher® Commercial Rice Farms, LLC. We will process and package rice and ensure that they flood the market both in the United States and in other countries of the world.

We want to compete with the best in the industry which is why aside from the fact that we’ve secured the required farming land and most of the farming equipment and machines, we have also hired some key employees who are currently undergoing training so as to be able to fit into the ideal picture of the 21 st century commercial rice farming and rice processing and packaging workforce that we want to build.

We are in the commercial rice farming business because we want to leverage on the vast opportunities available in the commercial farming industry, to contribute our quota in growing the U.S. economy, in national food production, raw materials production for industries, to export agriculture produce from the United States to other countries and over and above to make profit.

Darren Pitcher® Commercial Rice Farms, LLC is well positioned to become one of the leading commercial rice farms in the United States of America, which is why we have been able to source for the best hands and farm machineries to run the farm with.

We have put process and strategies in place that will help us employ best practices when it comes to commercial rice farming and rice processing and packaging as required by the regulating bodies in the United States of America.

Darren Pitcher® Commercial Rice Farms, LLC is a family business that is owned by Mr. Darren Pitcher and his immediate family members. The farm will be fully and single handedly financed by Darren Pitcher and his immediate family members.

Before starting Darren Pitcher® Commercial Rice Farms, LLC, Darren Pitcher has worked with some of the leading commercial farms and food processing plants in the United States of America; he has a degree (B.Sc.) in Agriculture Science from the University of California.

3. Our Products and Services

Darren Pitcher® Commercial Rice Farms, LLC is a world class commercial farm that is committed to cultivating both organic and non – organic rice for the United States’ market and the global market (processed and packaged rice). We are in business to produce food and raw materials for people and industries in commercial quantities.

We will also ensure that we operate a standard rice processing and packaging plant as part of our complimentary business.

We are in this line of business to make profits, and we will ensure that we do all that is allowed by the law of the United States of America to achieve our business goals and objectives. These are the areas we will concentrate on in our commercial rice farming business. If need arises we will definitely cultivate related crops;

• Cultivation of short-grain rice, medium-grain rice and long-grain rice (organic and non – organic)
• Standard rice processing plant (rice production and packaging)

4. Our Mission and Vision Statement

• Our Vision is to become one of the leading commercial rice farms and rice processing and packing brand not just in the United States of America but also on the global stage.
• Darren Pitcher® Commercial Rice Farms, LLC is a world class commercial rice farms that is in business to cultivate rice in commercial quantities both organic and non – organic and process and package rice for both the United States market and the international market.
• We want our well – packaged rice to flood every nooks and crannies of the United States and other countries of the world.

Our Business Structure

Darren Pitcher® Commercial Rice Farms, LLC is a commercial rice farm that intend starting small in Tallahassee – Florida, but hope to grow big in order to compete favorably with leading commercial rice farms in the commercial farming industry both in the United States and on a global stage.

We are aware of the importance of building a solid business structure that can support the picture of the kind of world class business we want to own which is why we are committed to only hiring the best hands in and around Florida.

At Darren Pitcher® Commercial Rice Farms, LLC, we will ensure that we hire people that are qualified, hardworking, dedicated, customer centric and are ready to work to help us build a prosperous business that will benefit all the stake holders (the owners, workforce, and customers).

As a matter of fact, profit-sharing arrangement will be made available to all our senior management staff and it will be based on their performance for a period of five years or more as agreed by the management of the farm. In view of the above, Darren Pitcher® Commercial Rice Farms, LLC have decided to hire qualified and competent hands to occupy the following positions;

• Chief Operating Officer

General Farm Manager

Administrator / Accountant

Rice Cultivation Manager / Supervisor

• Rice Processing and Packaging Manager
• Sales and Marketing Executive
• Field Employees
• Front Desk Officer

5. Job Roles and Responsibilities

Chief Operating Officer:

• Increases management’s effectiveness by recruiting, selecting, orienting, training, coaching, counseling, and disciplining managers; communicating values, strategies, and objectives; assigning accountabilities; planning, monitoring, and appraising job results; developing incentives; developing a climate for offering information and opinions; providing educational opportunities.
• Creates, communicates, and implements the organization’s vision, mission, and overall direction – i.e. leading the development and implementation of the overall organization’s strategy.
• Responsible for fixing prices and signing business deals
• Responsible for providing direction for the business
• Responsible for signing checks and documents on behalf of the company
• Evaluates the success of the organization
• Responsible for the planning, management and coordinating all farm activities across the various sections on behalf of the organization
• Supervise other section managers (rice cultivation manager and rice production manager)
• Ensures compliance during project executions
• Providing advice on the management of farming activities across all section
• Responsible for carrying out risk assessment
• Uses IT systems and software to keep track of people and progress of the growth of rice
• Responsible for overseeing the accounting, costing and sale of farm produce after harvest
• Represents the organization’s interest at various stakeholders’ meetings
• Ensures that farming goals desired result are achieved, the most efficient resources (manpower, equipment, tools and chemicals et al) are utilized and different interests involved are satisfied.
• Responsible for preparing financial reports, budgets, and financial statements for the organization
• Responsible for overseeing the smooth running of HR and administrative tasks for the organization
• Handles all financial transactions for the company
• Defines job positions for recruitment and managing interviewing process
• Carries out staff induction for new team members
• Responsible for training, evaluation and assessment of employees
• Oversees the smooth running of the daily farming activities across the various farming sections.
• Responsible for financial forecasting and risks analysis.
• Responsible for developing and managing financial systems and policies
• Responsible for administering payrolls
• Ensures compliance with taxation legislation
• Serves as internal auditor for the company
• Responsible for managing the rice cultivation section of the commercial rice farm
• Supervises other workers within the department
• Works closely with the General Manager to achieve the organizations’ goals and objectives

Rice Production Manager / Supervisor

• Responsible for managing the rice processing and packaging(rice production) section of the commercial rice farm

Sales and Marketing Officer

• Identifies, prioritizes, and reaches out to new partners, and business opportunities et al
• Identifies development opportunities; follows up on development leads and contacts; participates in the structuring and financing of projects; assures the completion of relevant projects.
• Writes winning proposal documents, negotiate fees and rates in line with company policy
• Responsible for handling business research, marker surveys and feasibility studies for clients
• Responsible for supervising implementation, advocate for the customer’s needs, and communicate with clients
• Develops, executes and evaluates new plans for expanding increase sales
• Documents all customer contact and information
• Represents the company in strategic meetings
• Helps to increase sales and growth for the company

Field Workers / Contract Staff

• Responsible for preparing farm lands for rice cultivations
• Responsible for watering the rice crop
• Handles weeding or fertilizer and/or pest control application
• Handles farm implements and machines as instructed by the section manager / supervisor
• Assists in harvesting of rice
• Carries out task in line with the stated job description
• Assists in transport working tools and equipment from the farm and back to the designated store room
• Handles any other duties as assigned by the line manager

Client Service Executive / Front Desk Officer

• Welcomes guests and clients to the farm by greeting them in person or on the telephone; answering or directing inquiries.
• Ensures that all contacts with clients (e-mail, walk-In center, SMS or phone) provides the client with a personalized customer service experience of the highest level
• Through interaction with clients on the phone, uses every opportunity to build client’s interest in the company’s products and services
• Manages administrative duties assigned by the manager in an effective and timely manner
• Consistently stays abreast of any new information on the company’s products, promotional campaigns etc. to ensure accurate and helpful information is supplied to clients
• Receives parcels / documents for Darren Pitcher® Commercial Rice Farms, LLC
• Distributes mails in JB Michaels Commercial Farms, LCC

6. SWOT Analysis

Darren Pitcher® Commercial Rice Farms, LLC do not intend to launch out with trial and error hence the need to conduct a proper SWOT analysis.

We know that if we get it right from the onset, we would have succeeded in creating the foundation that will help us build a standard commercial rice farm that will favorably compete with leading commercial rice farms in the United States of America and in the rest part of the world.

As a world – class commercial rice farms and rice processing and packaging company, we look forward to maximizing our strength and opportunities and also to work around our weaknesses and threats. Here is a summary from the result of the SWOT analysis that was conducted on behalf of Darren Pitcher® Commercial Rice Farms, LLC;

Our strength as a commercial rice farm is the fact that we have healthy relationships with loads of major players (agriculture merchants who deal in rice) in the commercial farms industry; both suppliers and buyers within and outside of the United States.

We have some of the latest commercial rice farming machines, tools and rice processing equipment that will help us cultivate rice in commercial quantities with less stress. Aside from our relationship (network) and equipment, we can confidently boast that we have some the most experienced hands in Tallahassee – Florida in our payroll.

Our weakness could be that we are a new commercial rice farms in the United States, and perhaps the fact that we decided to diversify our farming activities could count against us initial. We are aware of this and from our projection will overcome this weakness with time and turn it to a major advantage for the business.

• Opportunities:

The opportunities that are available to us cannot be quantified; we know that there are loads of individuals who consume both organic and non – organic rice in different forms both in the United States of America and other parts of the world. We will ensure that we maximize the opportunities available to commercial rice farmers.

Some of the threats and challenges that we are likely going to face when we start our own commercial rice farm are global economic downturn that can impact negatively on household spending, bad weather cum natural disasters (draughts, epidemics), unfavorable government policies and the arrival of a competitor (a commercial farm that cultivates same crop) as our farms within same location.

There is hardly anything we can do as regards this threats and challenges other than to be optimistic that things will continue to work for your good.

7. MARKET ANALYSIS

• Market Trends

One of the common trends in the commercial rice farming line of business is that most players in the industry are no longer concentrating only on non – organic rice farming. They are now finding it easier to run both organic rice cultivation and non – organic rice cultivation. It is fact that despite that organic food are expensive, the sale for organic food is on the increase and it is indeed profitable.

In spite of the fact that commercial rice farming has been in existence since time immemorial, which does not in any way make the industry to be over saturated; commercial rice farmers are exploring new technology to continue to improve the cultivation processes and also rice processing and packaging processes; mechanized farming has indeed increased the tons of food produced by farmers.

The fact that there is always a ready market for rice makes the business highly thriving and profitable. Lastly, it is a common trend to find standard commercial rice farmers run a rice processing and packaging plant alongside their farm. It is a means of maximizing profits in the business.

With this, it is easier for them to expand the scope of their market beyond the United States of America to other countries of the world.

8. Our Target Market

It is a known fact that the target market of those who are the end consumer of rice in any form and also those who benefits from the business value chain of commercial rice farming industry is all encompassing; it is far – reaching.

Almost every household consumes rice. In essence, a commercial rice farmer that also run a rice processing and packaging plant should be able to sell his or her farm produce to as many people as possible including hotels, restaurants and dormitories et al.

We will ensure that we position our business to attract consumers of rice not just in the United States of America alone but also other parts of the world which is why we will be exporting our rice produce either in raw form or processed form to other countries of the world.

Our competitive advantage

The truth is that, it is easier to find entrepreneur flocking towards an industry that is known to generate consistent income which is why there are more commercial farmers in the United States of America and of course in most parts of the world.

For example, Statistics has it that there were 2.2 million farms in the United States of America, covering an area of 922 million acres. These goes to show that there are appreciable numbers of farmers in the United States of America but that does not mean that there is stiffer competition in the industry.

As a matter of fact, entrepreneurs are encouraged by the government to embrace commercial farming. This is so because part of the success of any nation is her ability to cultivate her own food and also export foods to other nations of the world.

Darren Pitcher® Commercial Rice Farms, LLC is fully aware that there are competitions when it comes to selling commercial farm produce including rice all over the globe, which is why we decided to carry out thorough research so as to know how to take advantage of the available market in the United States and in other parts of the world.

We have done our homework and we have been able to highlight some factors that will give us competitive advantage in the marketplace; some of the factors are effective and reliable rice farming processes that can help us sell our rice at competitive prices, good network and excellent relationship management.

Another competitive advantage that we are bringing to the industry is the fact that we have designed our business in such a way that we will operate an all – round standard commercial rice farms that will be involved in the production of rice i.e. rice processing plant. With this, we will be able to take advantage of all the available opportunities within the industry.

Lastly, our employees will be well taken care of, and their welfare package will be among the best within our category (start – ups commercial rice farms) in the industry meaning that they will be more than willing to build the business with us and help deliver our set goals and achieve all our aims and objectives.

9. SALES AND MARKETING STRATEGY

• Sources of Income

Darren Pitcher® Commercial Rice Farms, LLC is in the commercial rice farming business for the purpose of maximizing profits hence we have decided to explore all the available opportunities within the industry to achieve our corporate goals and objectives.

In essence we are not going to rely only on the sale of our rice to generate income for the business. Below are the sources we intend exploring to generate income for Darren Pitcher® Commercial Rice Farms, LLC;

10. Sales Forecast

We conducted a thorough market survey and feasibility studies and we were able to discover that the sales generated by a commercial farm depends on the size of the farm, the nature of the commercial farm (whether cattle rearing, poultry farming, fish farming and crops cultivation et al).

We have perfected or sales and marketing strategies and we are set to hit the ground running and we are quite optimistic that we will meet or even surpass our set sales target of generating enough income / profits from the year of operations and build the business from survival to sustainability.

We have been able to critically examine the agriculture industry cum commercial rice farm line business and we have analyzed our chances in the industry and we have been able to come up with the following sales forecast. The sales projections are based on information gathered on the field and some workable assumptions as well with respect to the nature of commercial rice farm that we run.

We will be running a standard rice processing plant with a capacity to export well – branded and packaged rice to other countries of the world. Below are the projections that we were able to come up with for the first three years of running Darren Pitcher® Commercial Rice Farms, LLC;

• First Fiscal Year-: $350,000
• Second Fiscal Year-: $600,000
• Third Fiscal Year-: $1.2 million

N.B : This projection is done based on what is obtainable in the industry and with the assumption that there won’t be any major economic meltdown that can impact negatively on household spending, bad weather cum natural disasters (draughts, epidemics), and unfavorable government policies. Please note that the above projection might be lower and at the same time it might be higher.

• Marketing Strategy and Sales Strategy

We are quite aware that in order to expand our market scope, we should go beyond just rice cultivation to rice processing and packaging. In view of that, we decided to set up a standard rice processing plant to help us maximize profits.

Our sales and marketing team will be recruited based on their vast experience in the industry and they will be trained on a regular basis so as to be well equipped to meet their targets and the overall goal of the organization. We want to build a standard and world – class commercial rice farms and rice processing and packaging company that will leverage on word of mouth advertisement from satisfied clients (both individuals and rice merchants).

Over and above, we have perfected our sale and marketing strategies first by networking with agriculture merchants and businesses that rely on the supply of rice as part of their menu. In summary, Darren Pitcher® Commercial Rice Farms, LLC will adopt the following strategies in marketing our commercial rice farm produce;

• Introduce our business by sending introductory letters alongside our brochure to stake holders in the agriculture industry, rice merchants, hotels and restaurants and rice processing plants et al.
• Advertise our business in agriculture and food related magazines and websites
• List our commercial rice farms on yellow pages’ ads
• Attend related agriculture and food expos, seminars, and business fairs et al
• Leverage on the internet to promote our business
• Engage in direct marketing
• Encourage the use of Word of mouth marketing (referrals)

11. Publicity and Advertising Strategy

Any business that wants to grow beyond the corner of the street or the city they are operating from must be ready and willing to utilize every available means (both conventional and non – conventional means) to advertise and promote the business. We intend growing our business which is why we have perfected plans to build our brand via every available means.

We know that it is important to create strategies that will help us boost our brand awareness and to create a corporate identity for our commercial rice farm business. Below are the platforms you can leverage on to boost our commercial rice farm brand and to promote and advertise our business;

• Place adverts on both print (newspapers and magazines) and electronic media platforms
• Sponsor relevant community based events / programs
• Leverage on the internet and social media platforms like; Instagram, Facebook, twitter, YouTube, Google + et al to promote our product
• Install our Bill Boards on strategic locations all around Tallahassee – Florida
• Engage in road show from time to time in targeted neighborhoods
• Distribute our fliers and handbills in target areas
• Contact hotels, restaurants, agriculture produce merchants and residence in our target areas by calling them up and informing them of Darren Pitcher® Commercial Rice Farms, LLC and the farm produce we sell
• List our commercial rice farms in local directories / yellow pages
• Advertise our commercial rice farms in our official website and employ strategies that will help us pull traffic to the site.
• Ensure that all our staff members wear our branded shirts and all our vehicles and trucks are well branded with our company logo et al.

12. Our Pricing Strategy

Some of the factors that will help you sell your rice at the right price that will guarantee that you make profits is dependent on your strategy while some of the factors are beyond your control.

For example, if the climatic condition is unfavorable and if there are natural disaster in the location where you have your commercial rice farm, then it will directly affect the harvest of plantain and also the prices of your farm produce.

Over and above, if you want to get the right pricing for your farm produce, then you should ensure that you choose a good location for your commercial farm, choose a good breed / seeds that will guarantee bountiful harvest, cut the cost of running your farm to the barest minimum and of course try as much as possible to attract buyers to your farm as against taking your farm produce to the market to source for buyers.

With this, you would have successfully eliminate the cost of transporting your harvest to the market and other logistics. We are quite aware that one of the easiest means of penetrating the market and acquiring loads of customers for rice is to sell them at competitive prices hence we will do all we can to ensure that the price of our rice are going to be what other commercial rice farmers would look towards beating.

One thing is certain, the nature of commercial farming makes it possible for farmers to place prices for their farm produce based on their discretion without following the benchmark in the industry. The truth is that it is one of the means of avoiding running into loss. The easier you sell off your harvested rice the better for your business.

• Payment Options

The payment policy adopted by Darren Pitcher® Commercial Rice Farms, LLC is all inclusive because we are quite aware that different customers prefer different payment options as it suits them but at the same time, we will ensure that we abide by the financial rules and regulation of the United States of America.

Here are the payment options that Darren Pitcher® Commercial Rice Farms, LLC will make available to her clients;

• Payment via bank transfer
• Payment with cash
• Payment via online bank transfer
• Payment via check
• Payment via mobile money transfer
• Payment via bank draft

In view of the above, we have chosen banking platforms that will enable our client make payment for farm produces purchase without any stress on their part. Our bank account numbers will be made available on our website and promotional materials to clients who may want to deposit cash or make online transfer for our rice and processed rice (well – branded and packaged rice).

13. Startup Expenditure (Budget)

When it comes to calculating the cost of starting a commercial rice farm with rice processing plant, there are some key factors that should serve as a guide. Factor such as the capacity of rice processing plant you want to own and the size of the commercial rice farm.

Besides, in setting up any business, the amount or cost will depend on the approach and scale you want to undertake. If you intend to start a world – class commercial farm, then you would need a good amount of capital as you would need to ensure that your employees are well taken care of, and that your farm is conducive enough for workers to be creative and productive.

This means that the start-up can either be low or high depending on your goals, vision and aspirations for your business. The tools and equipment that will be used are nearly the same cost everywhere, and any difference in prices would be minimal and can be overlooked.

As for the detailed cost analysis for starting a commercial rice farm; it might differ in other countries due to the value of their money. Below are some of the basic areas we will spend our start – up capital in setting up our commercial rice farm;

• The Total Fee for incorporating the Business in United States of America – $750.
• The total cost for payment of insurance policy covers (general liability, workers’ compensation and property casualty) coverage at a total premium – $9,400
• The amount needed to acquire / lease a farm land – $50,000
• The amount required for preparing the farm land – $70,000
• The cost for acquiring the required working tools and equipment / machines / fencing et al– $10,000
• The amount required for purchase of the first set of rice seedlings et al – $50,000
• The amount required to set up a standard rice processing plant within the farm facility – $100,000
• Operational cost for the first 3 months (salaries of employees, payments of bills et al) – $40,000
• The Cost of launching an official website – $600
• The amount required for payment of workers for a period of 3 months – $100,000
• Additional Expenditure (Business cards, Signage, Adverts and Promotions et al) – $2,000

Going by the report from detailed research and feasibility studies conducted, we will need an average of $500,000 to start a standard commercial rice farming with rice processing plant business in the United States of America. These are some of the equipment that we would need to fully launch our commercial plantain farm,

• Soil cultivator
• Harrow (e.g. Spike harrow, Drag harrow, Disk harrow)
• Stone / Rock / Debris removal implement (e.g. Destoner, Rock windrower / rock rake, Stone picker / picker)
• Broadcast seeder (alternatively: broadcast spreader, fertilizer spreader, or Air seeder)
• Plastic mulch layer
• Transplanter
• Sprinkler system irrigation
• Wheel Barrow

Basically, the nature of commercial rice farms does not require an office space; most people that run commercial farms operate directly from their farms. But we have decided to open a small liaison office; a place where administrative jobs will be carried out on behalf of the business.

Generating Funds / Startup Capital for Darren Pitcher ® Commercial Rice Farms, LLC

No matter how fantastic your business idea might be, if you don’t have the required money to finance the business, the business might not become a reality. Finance is a very important factor when it comes to starting a business such as commercial rice farming and rice processing and packaging plant business.

No doubt raising startup capital for a business might not come cheap, but it is a task that an entrepreneur must go through. Darren Pitcher® Commercial Rice Farms, LLC is a family business that will be owned and managed by Darren Pitcher and his immediate family members.

They are the sole financial of the firm, but may likely welcome other partners later which is why they decided to restrict the sourcing of the start – up capital for the business to just three major sources. These are the areas where we intend sourcing for fund for Humphrey GT & Family Farms Ltd;

• Generate part of the start – up capital from personal savings and sale of his stocks
• Generate part of the start – up capital from friends and other extended family members
• Generate a larger chunk of the startup capital from the bank (loan facility).

N.B: We have been able to generate about $100,000 ( Personal savings $80,000 and soft loan from family members $20,000 ) and we are at the final stages of obtaining a loan facility of $400,000 from our bank. All the papers and document has been duly signed and submitted, the loan has been approved and any moment from now our account will be credited.

14. Sustainability and Expansion Strategy

The future of a business lies in the numbers of loyal customers that they have the capacity and competence of the employees, their investment strategy and the business structure. If all of these factors are missing from a business (company), then it won’t be too long before the business close shop.

One of our major goals of starting Darren Pitcher® Commercial Rice Farms, LLC is to build a business that will survive off its own cash flow without the need for injecting finance from external sources once the business is officially running.

We know that one of the ways of gaining approval and winning customers over is to sell our farm produce ( processed and well – packaged organic and non – organic rice ) a little bit cheaper than what is obtainable in the market and we are well prepared to survive on lower profit margin for a while.

Darren Pitcher® Commercial Rice Farms, LLC will make sure that the right foundation, structures and processes are put in place to ensure that our staff welfare are well taken of. Our organization’s corporate culture is designed to drive our business to greater heights and training and retraining of our workforce is at the top burner of our business strategy.

As a matter of fact, profit-sharing arrangement will be made available to all our management staff and it will be based on their performance for a period of five years or more as determined by the management of the organization. We know that if that is put in place, we will be able to successfully hire and retain the best hands we can get in the industry; they will be more committed to help us build the business of our dreams.

Check List / Milestone

• Business Name Availability Check: Completed
• Business Incorporation: Completed
• Opening of Corporate Bank Accounts various banks in the United States: Completed
• Opening Online Payment Platforms: Completed
• Application and Obtaining Tax Payer’s ID: In Progress
• Application for business license and permit: Completed
• Purchase of All form of Insurance for the Business: Completed
• Leasing of farm land in Tallahassee – Florida: Completed
• Conducting Feasibility Studies: Completed
• Start – up Capital Generation: Completed
• Writing of Business Plan: Completed
• Drafting of Employee’s Handbook: Completed
• Design of The Company’s Logo: Completed
• Graphic Designs and Printing of Packaging Marketing / Promotional Materials: Completed
• Recruitment of employees: In Progress
• Building /construction of cages and fence et al: In Progress
• Purchase of the needed working tools, machines and equipment: Completed
• Creating Official Website for the Company: In Progress
• Creating Awareness for the business (Business PR): In Progress
• Farm land Treatment, Health and Safety Arrangement: In Progress
• Establishing business relationship with vendors and key players in the industry ( agriculture farm produce merchants, fertilizer suppliers and transporter / haulage companies et al ): Completed

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• Vertical Farming Business Plan [Sample Template]
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Trading Business Plan Template

Written by Dave Lavinsky

Trading Business Plan

Over the past 20+ years, we have helped over 500 entrepreneurs and business owners create business plans to start and grow their trading companies.

If you’re unfamiliar with creating a trading business plan, you may think creating one will be a time-consuming and frustrating process. For most entrepreneurs it is, but for you, it won’t be since we’re here to help. We have the experience, resources, and knowledge to help you create a great plan.

In this article, you will learn some background information on why business planning is important. Then, you will learn how to write a trading business plan step-by-step so you can create your plan today.

Download our Ultimate Business Plan Template here >

What is a Trading Business Plan?

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

Why You Need a Business Plan for a Trading Company

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

Sources of Funding for Trading Companies

With regards to funding, the main sources of funding for a trading company are personal savings, credit cards, bank loans, and angel investors. When it comes to bank loans, banks will want to review your 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 ensure 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. Personal savings and bank loans are the most common funding paths for trading companies.

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How to write a business plan for a trading company.

If you want to start a trading business or expand your current one, you need a business plan. The guide below details the necessary information for how to write each essential component of your trading business plan.

Executive Summary

Your executive summary provides an introduction to your trading 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 kind of trading company you are running and the status. For example, are you a startup, do you have a trading business that you would like to grow, or are you operating a chain of trading companies?

Next, provide an overview of each of the subsequent sections of your plan.

• Give a brief overview of the trading industry.
• Discuss the type of trading business you are operating.
• Detail your direct competitors. Give an overview of your target customers.
• Provide a snapshot of your marketing strategy. Identify the key members of your team.
• Offer an overview of your financial plan.

Company Overview

In your company overview, you will detail what type of trading business you are operating.

For example, you might specialize in one of the following types of trading businesses:

• Retail trading business: This type of business sells merchandise directly to consumers.
• Wholesale trading business: This type of business sells merchandise to other businesses.
• General merchandise trading business: This type of business sells a wide variety of products.
• Specialized trading business: This type of business sells one specific type of product.

In addition to explaining the type of trading business you will operate, the company overview needs to provide background on the business.

Include answers to questions 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, the number of products sold, and reaching $X amount in revenue, etc.
• Your legal business Are you incorporated as an S-Corp? An LLC? A sole proprietorship? Explain your legal structure here.

Industry Analysis

In your industry or market analysis, you need to provide an overview of the trading industry.

While this may seem unnecessary, it serves multiple purposes.

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

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

The third reason 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:

• How big is the trading industry (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 target market for your trading business? 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 must detail the customers you serve and/or expect to serve.

The following are examples of customer segments: individuals, schools, families, and corporations.

As you can imagine, the customer segment(s) you choose will have a great impact on the type of trading business you operate. Clearly, individuals would respond to different marketing promotions than corporations, for example.

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

Psychographic profiles explain the wants and needs of your target customers. The more you can recognize 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 trading businesses.

Indirect competitors are other options that customers have to purchase from that aren’t directly competing with your product or service. This includes other types of retailers or wholesalers, re-sellers, and dropshippers. You need to mention such competition as well.

For each such competitor, provide an overview of their business 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 type of trading business are they?
• What is their pricing (premium, low, etc.)?
• 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 make it easier for customers to acquire your product or service?
• Will you offer products or services that your competition doesn’t?
• 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

Traditionally, a marketing plan includes the four P’s: Product, Price, Place, and Promotion. For a trading company, your marketing strategy should include the following:

Product : In the product section, you should reiterate the type of trading company that you documented in your company overview. Then, detail the specific products or services you will be offering. For example, will you sell jewelry, clothing, or household goods?

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

Place : Place refers to the site of your trading company. Document where your company is situated and mention how the site will impact your success. For example, is your trading business located in a busy retail district, a business district, a standalone facility, or purely online? Discuss how your site might be the ideal location for your customers.

Promotions : The final part of your trading marketing plan is where you will document how you will drive potential customers to your location(s). The following are some promotional methods you might consider:

• Advertise in local papers, radio stations and/or magazines
• Reach out to websites
• Distribute flyers
• Engage in email marketing
• Advertise on social media platforms
• Improve the SEO (search engine optimization) on your website for targeted keywords

Operations Plan

While the earlier sections of your 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 trading business, including answering calls, scheduling shipments, ordering inventory, and collecting payments, etc.

Long-term goals are the milestones you hope to achieve. These could include the dates when you expect to acquire your Xth customer, or when you hope to reach $X in revenue. It could also be when you expect to expand your trading business to a new city.  

Management Team

To demonstrate your trading business’ potential 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 trading businesses. 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 as mentors to your business. They would help answer questions and provide strategic guidance. If needed, look for advisory board members with experience in managing a trading business.  

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 revenue 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 charge per item or per pound and will you offer discounts for bulk orders? 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 $50,000 on building out your trading 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 lender writes you a check for $50,000, 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 ensure you never run out of money. What most entrepreneurs and traders don’t realize is that you can turn a profit but run out of money and go bankrupt.

When creating your Income Statement and Balance Sheets be sure to include several of the key costs needed in starting or growing a trading business:

• Cost of equipment and supplies
• Payroll or salaries paid to staff
• Business insurance
• Other start-up expenses (if you’re a new business) like legal expenses, permits, computer software, and equipment

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 facility location lease or a list of your suppliers.  

Writing a business plan for your trading business is a worthwhile endeavor. If you follow the template above, by the time you are done, you will truly be an expert. You will understand the trading industry, your competition, and your customers. You will develop a marketing strategy and will understand what it takes to launch and grow a successful trading business.  

Trading Business Plan Template FAQs

What is the easiest way to complete my trading business plan.

Growthink's Ultimate Business Plan Template allows you to quickly and easily write your trading business plan.

How Do You Start a Trading Business?

Starting a trading business is easy with these 14 steps:

• Choose the Name for Your Trading Business
• Create Your Trading Business Plan (use a trading business plan template or a forex trading plan template)
• Choose the Legal Structure for Your Trading Business
• Secure Startup Funding for Trading Business (If Needed)
• Secure a Location for Your Business
• Register Your Trading Business with the IRS
• Open a Business Bank Account
• Get a Business Credit Card
• Get the Required Business Licenses and Permits
• Get Business Insurance for Your Trading Business
• Buy or Lease the Right Trading Business Equipment
• Develop Your Trading Business Marketing Materials
• Purchase and Setup the Software Needed to Run Your Trading Business
• Open for Business

What is a Trading Business?

There are several types of trading businesses:

• Retail trading business- sells merchandise directly to consumers
• Wholesale trading business- sells merchandise to other businesses
• General merchandise trading business- sells a wide variety of products
• Specialized trading business- sells one specific type of product

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

OR, Let Us Develop Your Plan For You

Since 1999, Growthink has developed business plans for thousands of companies who have gone on to achieve tremendous success.   Click here to see how Growthink’s business plan advisors can give you a winning business plan.

Other Helpful Business Plan Articles & Templates

Trading Plan Template & Examples: Step-by-Step Guide to Creating a Solid Trading Plan

Bonus Material:

Trading plans are an important part of any trader’s toolkit. The problem is, most traders don’t actively lay out a plan before they begin trading.

The result? They lose money and wonder why . Furthermore, many traders don’t know how to create a trading plan , or what to include.

Successful traders understand that trading plans are crucial to profiting consistently. In this article, I’ll walk you through creating your own plan, step-by-step, plus you can get a head start by using my free trading plan template, download below :

What is a trading plan?

A trading plan is an integral part of a trader’s strategy, outlining how trades are executed. It establishes rules for buying and selling securities, position sizing, risk management, and tradable securities. By following this plan, traders maintain discipline, consistency, and leverage proven strategies.

Why you should create a trading plan

Ask a new trader what they intend to do before the trading day and then ask them what they did at the end of the day. They almost certainly didn’t follow their plan. 

Trading plans are there for us to follow. Trading plans mean we take trades that are consistent with our rules and risk, and it means we remove a lot of emotion and discretion . This is important because humans are not rational agents and outsourcing this work means we can achieve a better P&L and make more money. 

A trading plan should resemble a business plan. A trader’s capital is their business and so we need to include everything that might be useful, but it should always cover the below.

What to include in your trading plan

• The time required to spend on your trading

Your trading goals and targets

• Your risk tolerance and risk management rules

Available capital for trading

Specific markets you wish to trade, the trading strategies you’ll use, your motivation for trading.

Read more information on what to include in your trading plan (with examples) below, and download your free template here:

The time required for trading

We need to define the time we need in order to trade successfully. For example, if you’re in full-time employment, then it’s unrealistic to spend six hours a day trading the market.

For example: Here is a part of my trading plan…

“To trade the UK stock market on a full-time basis I realistically need to spend at least 8-10 hours per day in order to take advantage of intraday opportunities and manage open positions in real time”.

It’s important to set realistic targets in trading. Once you have a target, you can reverse engineer how to achieve it.

For example: A target of increasing a trading account by 20% is an achievable target. To do that, we need to look at our trading capital and work out which trading strategies we’ll use.

Using breakouts to trend follow is a strategy I have had much success with, and I explain how I do this in my guide to breakouts.

There are several trading styles:

• Swing trading: This is a common strategy that attempts to capture moves over several days or weeks. Swing traders look for shorter term trends and then move onto the next trade.
• Momentum trading: This is a trend-following strategy based on upward movement and momentum. It can be a successful strategy over months and years as the stock continues to move higher. This is often coupled with increasing fundamental strength and accelerating earnings.
• Scalping or intraday trading (also known as ‘day trading’): Intraday strategies refer to trades placed and closed within the same trading session. 

Your risk tolerance and risk management rules 

Risk management is the most important part of trading. Position sizing is the first and last line of defence in our trading accounts.

If you take position sizes with 20% of your account, then that means you are risking 100% of that position every time it is risked in the market. Even if the chances are 99%, then eventually that 1 in 100 chance of the stock going to 0p and losing 100% of the position will happen.

Whilst a 20% drawdown on the trading account isn’t fatal, the law of compounding means that we will now need to gain 25% of our account just to get back to where we started. 

Never underestimate the numbers here – a 33% drawdown requires a near 50% gain just to get back to where we started. 

It’s important to put in place risk management rules that will protect the account and prevent us from taking on too much risk.

Only you will know how much risk you’re willing to take, but if you put yourself in a position where you could do yourself material damage, then eventually that outcome will be presented.

If taking a loss hurts, then it means you are trading too large. Most traders blow their accounts due to overexposure. I’ve never heard of a single trader who blew their account due to continuously taking small losses. Position sizing and risk management is covered in detail in my trading handbook.

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Enter your email to receive my free UK stock trading handbook, packed with professional techniques to manage risk and consistently profit on AIM stocks.

Traders should always be clear about what money should be used for trading and what money should stay in their bank accounts. 

Far too many traders have drawdowns in their trading accounts and decide to top up their account with a bank transfer.

Unfortunately, they end up putting far too much money into their account and do not keep track of their losses.

You should never trade with money you can’t afford to lose. I’ve had emails from people asking me what to do because they’ve lost the deposit for their house and they haven’t told their partner. Sadly, there is little that can be done at that point because the money is already lost.

In your trading plan you should be clear about how much is going into your trading account and how much you will top this up each month if that is going to be your strategy to grow your account further. 

However, the best way of growing your trading account is by making money trading successfully in the market. Once you can consistently do this, then it makes sense to increase your funds and scale up. 

A trading plan should also include the specific markets you wish to trade. Do you plan on trading UK stocks, US stocks, foreign exchange (forex), or cryptocurrencies? Once you’ve picked a market, you still need to drill deeper. 

For example: If you pick UK stocks will you trade all of these, or just AIM, or just the Main Market? Will you trade only small cap stocks? Will you trade both SETS and the SETSqx platforms ? 

In my case, I trade all UK stocks, and don’t discriminate between any of them. However, my focus is on smaller stocks under £500 million market cap. 

Your trading strategies are the ways you are going to make money. This part of the trading plan is important because by defining your strategies it will be clear to follow.

For example: I want to trade small-cap stocks that have momentum behind them, and I will find this momentum through technical breakouts and positive RNS announcements.

I will trade gaps and also place orders into the auctions in order to get better fills. I will use various brokers for different types of execution. I will take secondary raises that have news catalysts that can potentially drive the shares higher.

What is your why? What are your goals, and what is your motivation? Trading is hard and there are ups and downs – it’s easy to motivate yourself when the going is good and you’re making lots of money. But it can be harder when you’re suffered several losses in a row, and you keep seeing your account grind lower or flat for weeks on end. 

Writing down your why will make it easier to stay focused and commit to the long-term process and improvement.

For example:

• I want to trade because I enjoy the challenge and I also want to be my own boss.
• I want the freedom that comes with the lifestyle of a full time trader and I want to be around my wife and future children as they grow up.
• I want to offer my family a better life, and by continuing to work on my skillset is putting me closing towards my goals.

Good trading plan example

How do you write a trading plan?

• Know your trading playbook
• Manage your risk 
• Have a realistic profit target

1. Know your trading playbook

You should have a playbook of trades that you know how to execute in the market. A playbook is a list of trades, each with step-by-step instructions on how to trade the pattern. 

If you don’t know what you should trade in your trading plan then building a playbook of trades is a good place to start. 

2. Manage your risk

Risk management is a crucial skill for any trader. I’ve written an in-depth article on trading risk management for further information.

The reason risk management is so important is that without it we would blow up our accounts. Nobody would think about driving a car with no brakes because it would obviously crash – risk management is the brakes and safety system for our trading accounts.

Everyone has different risk profiles. Some are happy to take on high amounts of risk accepting that they may take hefty losses in order for the possibility of excess return. 

Full-time traders like myself tend to be more cautious knowing that if they lose too much capital, they may have to go back to work. 

You should include in your trading plan how much you’re prepared to risk on particular trades in your playbook and how much in your account overall.

3. Have a realistic profit target

Having an idea of a profit target will mean that you don’t end up falling into the trap of never selling. Far too many traders watch a stock rise, see it pullback, then immediately regret not nailing down profit into strength.

By setting out clear take profit targets this avoids indecisiveness and will ensure you execute ruthlessly. 

Bonus tip: Trade the stocks in play

Trading is about being in stocks that are moving. Volatility is the lifeblood of a trader, and a dead stock means dead money. 

The stocks ‘in play’ are the stocks that have moved or are moving in recent sessions, and the stocks we should be immediately keeping tabs on. Stocks can cycle in and out being in play, and so we need to keep track of those that offer the greatest volatility to trade.  

Download my free one-page trading plan template

My opening plan trading template has everything you need to begin the trading day. It forces you to check and review your open positions, so you’re always knowing what to do. 

It also suggests to list the current stocks in play, and how you can trade them, and in what size. Additionally, it asks “What can happen?” so a trader using this template will never be caught out.

By thinking ahead about potential scenarios and how to trade them, this gives the trader an advantage over others who do not put the work in. Traders who punt around their money without a clue or a plan are commonly referred to as “liquidity”.

To download the free template, click the button below and follow the instructions.

About The Author

Michael taylor.

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550+ Business Plan Examples to Launch Your Business

Need help writing your business plan? Explore over 550 industry-specific business plan examples for inspiration.

Find your business plan example

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Business plan template: There's an easier way to get your business plan done.

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View all sample business plans

Example business plan format

Before you start exploring our library of business plan examples, it's worth taking the time to understand the traditional business plan format . You'll find that the plans in this library and most investor-approved business plans will include the following sections:

Executive summary

The executive summary is an overview of your business and your plans. It comes first in your plan and is ideally only one to two pages. You should also plan to write this section last after you've written your full business plan.

Your executive summary should include a summary of the problem you are solving, a description of your product or service, an overview of your target market, a brief description of your team, a summary of your financials, and your funding requirements (if you are raising money).

Products & services

The products & services chapter of your business plan is where the real meat of your plan lives. It includes information about the problem that you're solving, your solution, and any traction that proves that it truly meets the need you identified.

This is your chance to explain why you're in business and that people care about what you offer. It needs to go beyond a simple product or service description and get to the heart of why your business works and benefits your customers.

Market analysis

Conducting a market analysis ensures that you fully understand the market that you're entering and who you'll be selling to. This section is where you will showcase all of the information about your potential customers. You'll cover your target market as well as information about the growth of your market and your industry. Focus on outlining why the market you're entering is viable and creating a realistic persona for your ideal customer base.

Competition

Part of defining your opportunity is determining what your competitive advantage may be. To do this effectively you need to get to know your competitors just as well as your target customers. Every business will have competition, if you don't then you're either in a very young industry or there's a good reason no one is pursuing this specific venture.

To succeed, you want to be sure you know who your competitors are, how they operate, necessary financial benchmarks, and how you're business will be positioned. Start by identifying who your competitors are or will be during your market research. Then leverage competitive analysis tools like the competitive matrix and positioning map to solidify where your business stands in relation to the competition.

Marketing & sales

The marketing and sales plan section of your business plan details how you plan to reach your target market segments. You'll address how you plan on selling to those target markets, what your pricing plan is, and what types of activities and partnerships you need to make your business a success.

The operations section covers the day-to-day workflows for your business to deliver your product or service. What's included here fully depends on the type of business. Typically you can expect to add details on your business location, sourcing and fulfillment, use of technology, and any partnerships or agreements that are in place.

Milestones & metrics

The milestones section is where you lay out strategic milestones to reach your business goals.

A good milestone clearly lays out the parameters of the task at hand and sets expectations for its execution. You'll want to include a description of the task, a proposed due date, who is responsible, and eventually a budget that's attached. You don't need extensive project planning in this section, just key milestones that you want to hit and when you plan to hit them.

You should also discuss key metrics, which are the numbers you will track to determine your success. Some common data points worth tracking include conversion rates, customer acquisition costs, profit, etc.

Company & team

Use this section to describe your current team and who you need to hire. If you intend to pursue funding, you'll need to highlight the relevant experience of your team members. Basically, this is where you prove that this is the right team to successfully start and grow the business. You will also need to provide a quick overview of your legal structure and history if you're already up and running.

Financial projections

Your financial plan should include a sales and revenue forecast, profit and loss statement, cash flow statement, and a balance sheet. You may not have established financials of any kind at this stage. Not to worry, rather than getting all of the details ironed out, focus on making projections and strategic forecasts for your business. You can always update your financial statements as you begin operations and start bringing in actual accounting data.

Now, if you intend to pitch to investors or submit a loan application, you'll also need a "use of funds" report in this section. This outlines how you intend to leverage any funding for your business and how much you're looking to acquire. Like the rest of your financials, this can always be updated later on.

The appendix isn't a required element of your business plan. However, it is a useful place to add any charts, tables, definitions, legal notes, or other critical information that supports your plan. These are often lengthier or out-of-place information that simply didn't work naturally into the structure of your plan. You'll notice that in these business plan examples, the appendix mainly includes extended financial statements.

Types of business plans explained

While all business plans cover similar categories, the style and function fully depend on how you intend to use your plan. To get the most out of your plan, it's best to find a format that suits your needs. Here are a few common business plan types worth considering.

Traditional business plan

The tried-and-true traditional business plan is a formal document meant to be used for external purposes. Typically this is the type of plan you'll need when applying for funding or pitching to investors. It can also be used when training or hiring employees, working with vendors, or in any other situation where the full details of your business must be understood by another individual.

Business model canvas

The business model canvas is a one-page template designed to demystify the business planning process. It removes the need for a traditional, copy-heavy business plan, in favor of a single-page outline that can help you and outside parties better explore your business idea.

The structure ditches a linear format in favor of a cell-based template. It encourages you to build connections between every element of your business. It's faster to write out and update, and much easier for you, your team, and anyone else to visualize your business operations.

One-page business plan

The true middle ground between the business model canvas and a traditional business plan is the one-page business plan . This format is a simplified version of the traditional plan that focuses on the core aspects of your business.

By starting with a one-page plan , you give yourself a minimal document to build from. You'll typically stick with bullet points and single sentences making it much easier to elaborate or expand sections into a longer-form business plan.

Growth planning

Growth planning is more than a specific type of business plan. It's a methodology. It takes the simplicity and styling of the one-page business plan and turns it into a process for you to continuously plan, forecast, review, and refine based on your performance.

It holds all of the benefits of the single-page plan, including the potential to complete it in as little as 27 minutes . However, it's even easier to convert into a more detailed plan thanks to how heavily it's tied to your financials. The overall goal of growth planning isn't to just produce documents that you use once and shelve. Instead, the growth planning process helps you build a healthier company that thrives in times of growth and remain stable through times of crisis.

It's faster, keeps your plan concise, and ensures that your plan is always up-to-date.

Download a free sample business plan template

Ready to start writing your own plan but aren't sure where to start? Download our free business plan template that's been updated for 2024.

This simple, modern, investor-approved business plan template is designed to make planning easy. It's a proven format that has helped over 1 million businesses write business plans for bank loans, funding pitches, business expansion, and even business sales. It includes additional instructions for how to write each section and is formatted to be SBA-lender approved. All you need to do is fill in the blanks.

How to use an example business plan to help you write your own

How do you know what elements need to be included in your business plan, especially if you've never written one before? Looking at examples can help you visualize what a full, traditional plan looks like, so you know what you're aiming for before you get started. Here's how to get the most out of a sample business plan.

Choose a business plan example from a similar type of company

You don't need to find an example business plan that's an exact fit for your business. Your business location, target market, and even your particular product or service may not match up exactly with the plans in our gallery. But, you don't need an exact match for it to be helpful. Instead, look for a plan that's related to the type of business you're starting.

For example, if you want to start a vegetarian restaurant, a plan for a steakhouse can be a great match. While the specifics of your actual startup will differ, the elements you'd want to include in your restaurant's business plan are likely to be very similar.

Use a business plan example as a guide

Every startup and small business is unique, so you'll want to avoid copying an example business plan word for word. It just won't be as helpful, since each business is unique. You want your plan to be a useful tool for starting a business —and getting funding if you need it.

One of the key benefits of writing a business plan is simply going through the process. When you sit down to write, you'll naturally think through important pieces, like your startup costs, your target market , and any market analysis or research you'll need to do to be successful.

You'll also look at where you stand among your competition (and everyone has competition), and lay out your goals and the milestones you'll need to meet. Looking at an example business plan's financials section can be helpful because you can see what should be included, but take them with a grain of salt. Don't assume that financial projections for a sample company will fit your own small business.

If you're looking for more resources to help you get started, our business planning guide is a good place to start. You can also download our free business plan template .

Think of business planning as a process, instead of a document

Think about business planning as something you do often , rather than a document you create once and never look at again. If you take the time to write a plan that really fits your own company, it will be a better, more useful tool to grow your business. It should also make it easier to share your vision and strategy so everyone on your team is on the same page.

Adjust your plan regularly to use it as a business management tool

Keep in mind that businesses that use their plan as a management tool to help run their business grow 30 percent faster than those businesses that don't. For that to be true for your company, you'll think of a part of your business planning process as tracking your actual results against your financial forecast on a regular basis.

If things are going well, your plan will help you think about how you can re-invest in your business. If you find that you're not meeting goals, you might need to adjust your budgets or your sales forecast. Either way, tracking your progress compared to your plan can help you adjust quickly when you identify challenges and opportunities—it's one of the most powerful things you can do to grow your business.

Prepare to pitch your business

If you're planning to pitch your business to investors or seek out any funding, you'll need a pitch deck to accompany your business plan. A pitch deck is designed to inform people about your business. You want your pitch deck to be short and easy to follow, so it's best to keep your presentation under 20 slides.

Your pitch deck and pitch presentation are likely some of the first things that an investor will see to learn more about your company. So, you need to be informative and pique their interest. Luckily we have a round-up of real-world pitch deck examples used by successful startups that you can review and reference as you build your pitch.

For more resources, check out our full Business Pitch Guide .

Ready to get started?

Now that you know how to use an example business plan to help you write a plan for your business, it's time to find the right one.

Use the search bar below to get started and find the right match for your business idea.

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10 Elements of a Winning Trading Plan

Mar 18, 2019

Written by: Al Hill

Ask 100 traders if they can send you a copy of their sample trading plan and I guarantee you it will be the highest rejection level event of your life.

Unlike business owners who generally have a business plan in order to provide a strategic vision to employees and to stay focused on their primary line of business, most traders never take the time to create a business, a.k.a trading plan.

What is a Trading Plan?

A trading plan is your roadmap for what you are going to do in the markets. It’s something that you have to create and is not optional.

The trading plan can be whatever works for you, but it needs to be written down. For me, at times it has been illustrations, while other times it has been a technical manual of sorts.

You want the plan to be a page. Now, I’m not suggesting you over complicate your strategy, but you should have a detailed idea of what you are doing. This should go beyond the standard trading setup and needs to touch on items like money management, trading discipline and your overall purpose for trading.

Now, let’s dive into how to create a trading plan using the 10 elements of a winning trading plan you can create to help improve your performance.

#1:  How Many Trades will You Use to Evaluate Your Performance?

How Many Trades?

In most lines of business, time is the main driver for evaluating performance.  Companies report on a quarterly basis to the street, which fundamental analysts then feverishly work through the data to assess a company’s future growth potential.

Well, how long should you wait to evaluate your trading performance …yearly, monthly, daily?

The answer to this question is very simple.  Base your evaluation period on the number of trades placed and not by the amount of time passed.

Time is irrelevant in the world of trading.  Trading is one of the few areas in this realm, where the space-time continuum are of no relevance.

Those of us that have been trading for some time know that one-year’s stellar trading performance can lead to a 2-month binge of destruction, which can easily eradicate everything you’ve worked so hard to create.

The way to address the tracking of your performance is to create a set number of trades that you will evaluate against key performance metrics, which we will touch upon next.

You will need to identify the right number of trades for you to evaluate, but this number needs to be high enough that you have a decent sample set, but low enough where it prevents you from going on a destructive trading binge.

For me, that number is 10 trades.  This applies to both my swing trading and day trading activities.  On average, it will take me approximately 3 months to place 10 swing trades and about 4 days to place 10-day trades.  I only mention the time element so you can see how long it takes me to place that number of trades based on my trading style , but you can easily perform the same math in your head.

So, what is the number of trades you will use when evaluating your trading activity?

#2:  Identify Your Key Performance Metrics

Performance Metrics

I use the KISS method or Keep It Simple, Stupid (for those new to the term) for measuring my trading performance.   To that aim, I only care about the following two metrics:

This is a ratio of your profitable trades divided by your losing trades.  Over a 10 trade cycle, I would take, for example, $15,000 (winners)/$5,000 (losers), which would equal an R of 3.  This essentially translates to the fact I profit three times more than I lose.  You will want to measure R over every cycle.  There is no set minimum or maximum R value; however, you will want to track your performance over time and quickly identify when you are below your historical average.

• This is the lowest intraday dollar value of your account within a trading cycle. Most max drawdowns require a new high to take place in order to mark the drawdown.  I, however, feel this is not the right approach, because it could take you a series of trading cycles before you hit a new portfolio high.  I recommend that you determine how low your account has gone from the starting point of the cycle in percentage terms. For example, if I have a starting portfolio value of $100k for a 10-sprint cycle and my account value hits $80k, then my max drawdown was 20%.  Just like R, there is no hard and fast rule on maximum drawdown.  Over time, you should aim to reduce your drawdowns, as this will ultimately lead to a portfolio balance that continues pointing up and to the left, with very little pullbacks.

#3:  What Time of Day will You Trade?

For my day traders, I highly recommend you limit your trading activity.

For me, I trade from 9:50 am – 12:00 pm. Any trade activity occurring before or after this zone, I am purely a spectator on the sideline.

#4:  Define Your Trading Edge

Similar to the times of day you will trade; keep your trading edge down to one or two setups when starting out.  The more strategies you hope to master, the more difficult it will become to consistently make money in the market.

Below are the details of my trading edge:

• Early Range Breakouts
• High Volume
• Tight Spreads
• Consolidation prior to the breakout
• Only enter new positions between 9:50 am and 10:10 am

That’s it.  If you feel your list bubbling up to 20+ criteria, you will drive yourself crazy trying to respect all of your rules

#5: Identify Stocks to Trade

Develop a standard methodology for identifying plays. You will have to first ask yourself the question, what is my time horizon for this trade? Day traders will want to focus on stocks in the news, while long-term traders will want to focus on stocks that are developing new business models that show the potential for multi-year growth. Whatever your trading style, make sure you identify the plays that have the highest odds of profitability.

For day traders, you will want to focus on the market movers.  This provides you with the greatest opportunity for locating stocks that are trending hard with high liquidity.  Within TradingSim, our market movers component provides you the top list of gainers and losers in real-time.  This way you don’t have to navigate through hundreds of charts manually.

TradingSim – Market Movers

Once you have found a stock you like, you will need to add the stock to your watchlist, so you can keep an eye on the security.

TradingSim – Watchlist

#6:  Place Your Stop Loss

Stop losses are not a negative thing; they are what keep you in business over the long haul

My stop loss is once the position goes against me by 2%.  The 2% threshold is based on the volatility of the stocks I trade and may not be suitable for your trading style.  The point here is just to make sure you have a stop loss.  If you find your stop is consistently being hit, then you need to take a deeper look into the volatility of the stocks you are trading .

#7:  When to Exit

You have heard all the market wizards say, “Let your winners run”.  Well, once you figure out what that means please let me know.

The greed in you will prevent you from closing your winning trades, even after you hear that little voice in your head tell you the run has come to an end.  The way to avoid this scenario is to have a clear exit strategy.

Again, keep it simple.  The exit strategy should be as simple as when the stock crosses below a moving average or the VWAP.

If you would like more insight into my own exit strategy for swing trading please take a look at the article I wrote titled ‘ How to Let Your Winners Run – 7 Tips for Success’ .

#8: How Much Money Can I Use per Trade?

Without money management, you will not stand a chance of making it in the business of trading.  For me, the amount of money I can use per trade largely depends on how well I am performing.  If I am going through a rough patch and my key performance indicators are down, then I use less money to minimize the damage to my account balance.

However, for keeping it simple in this article, I only use 10% of my available day trading buying power per trade.  For example, if I have $250,000 cash, this would translate to $1,000,000 in day trading buying power; hence, I would use $100,000 per trade.

#9:  When to Take Breaks

Take a Break from Trading+

This is something you will not see in other trading plans on the web.  When will you take a break from trading?  Sounds like a no-brainer, but you will be surprised how many traders I talk to that never take breaks.  Whether the trader has just had the best series of trades or an all-out massacre of their account, the vast majority of traders just keep placing trades, day after day.

I take a break after I have placed 100 trades.  I will take a day off just to give myself time to relax and reflect on my trading activity.  You could be asking yourself; couldn’t I just take a break on the weekend or over federal holidays?  Very true, but taking a self-imposed break goes back to discipline and exercising my control of the market.  While the market is always there, I don’t always have to respond to her every move.

#10: Limit Up/Limit Down

The major exchanges and prop firms think in terms of limit up and limit down.  This concept of curbs in was originally created after the 1987 crash and like everything else has become so complicated, it’s not worth trying to explain in less than 5,000 words.

For prop firms, their risk management rules will closely monitor how much a trader is up or down for the day.  Once a trader reaches a particular extreme based on their past trading performance, this trader is not allowed to place any additional trades for the day.

Why do we as traders not think in terms of limit up or limit down?

For me, if I lose 2% of my trading capital at any point of the day, I need to exit all positions and go fishing.  Conversely, if I make 7.5% of my trading portfolio in one day, it is time to go fishing.

Have you ever thought in terms of limit up/limit down?  What are your limit up/limit down targets?

Sample Trading Plan

Now that we have covered the 10 inputs of a trading plan, below is a sample trading plan for your review.  While this is a sample trading plan for day trading, you can simply change the parameters and apply them to any trading period for success.

Beach Photo by Trish Hartmann

Time Photo by Sean MacEntee

Performance Metrics by Alan O’Rourke

Tea Cups by Clyde Robinson

Tags: Day Trading Basics

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Here is a free business plan sample for an import/export company.

If you're considering entering the dynamic world of international trade but are unsure how to start, you've landed on the right page.

In the content that follows, we will present to you a comprehensive sample business plan tailored for an import/export company.

As you might be aware, a meticulously developed business plan is a cornerstone of success for any entrepreneur. It serves as a roadmap, enabling you to outline your business objectives, strategies, and the intricate details of your operations.

To streamline your planning process and get started on a solid foundation, you can utilize our import/export business plan template. Additionally, our team of experts is available to review and refine your plan at no extra cost.

How to draft a great business plan for your import/export company?

A good business plan for an import/export company must be tailored to the intricacies of international trade.

To start, it is crucial to provide a comprehensive overview of the global market you intend to operate in. This includes analyzing trade volumes, growth trends, and the economic climate, similar to what we have outlined in our import/export business plan template .

Your business plan should clearly articulate your company's vision, define your target markets (such as specific countries or regions), and describe your unique value proposition (competitive pricing, specialized products, etc.).

Market analysis is paramount. You need to thoroughly understand the regulatory environment, tariffs, and trade agreements that affect your business, as well as the competitive landscape and demand in your chosen markets.

For an import/export business, it is essential to detail your product or service offerings. Explain what you are importing or exporting, the benefits of these products or services, and how they fulfill the needs of your target market.

The operational plan should cover your logistics and supply chain strategy, including the selection of freight forwarders, customs brokers, and methods of transportation. It should also outline your approach to managing international payments and currency risks.

Quality control, compliance with international standards, and adherence to trade regulations are critical points to emphasize in your business plan.

Marketing and sales strategies must be adapted to the international context. Discuss how you will build relationships with foreign distributors, utilize trade shows, and leverage digital marketing to reach a global audience.

Given the digital age, having a robust online presence, including a professional website and active engagement on relevant B2B platforms, is indispensable.

The financial section should include your startup costs, projected revenues, cost of goods sold, and operational expenses. It is also important to analyze the financial risks associated with exchange rate fluctuations and international transactions. For assistance with this, consider using our financial forecast for an import/export business .

Compared to other business plans, an import/export business plan must pay special attention to international market analysis, logistics, customs regulations, and currency management.

A well-crafted business plan will not only help you clarify your strategy and operations but also serve as a tool to attract investors or secure loans.

Lenders and investors will be looking for a comprehensive understanding of international markets, a solid financial plan, and a clear operational strategy for managing the complexities of global trade.

By presenting a thorough and substantiated plan, you showcase your expertise and dedication to the success of your import/export venture.

To streamline the process and ensure you cover all necessary aspects, you can start with our import/export business plan template .

A free example of business plan for an import/export company

Here, we will provide a concise and illustrative example of a business plan for a specific project.

This example aims to provide an overview of the essential components of a business plan. It is important to note that this version is only a summary. As it stands, this business plan is not sufficiently developed to support a profitability strategy or convince a bank to provide financing.

To be effective, the business plan should be significantly more detailed, including up-to-date market data, more persuasive arguments, a thorough market study, a three-year action plan, as well as detailed financial tables such as a projected income statement, projected balance sheet, cash flow budget, and break-even analysis.

All these elements have been thoroughly included by our experts in the business plan template they have designed for an import/export company .

Here, we will follow the same structure as in our business plan template.

Market Opportunity

Market overview and statistics.

The import/export industry is a critical component of global trade, facilitating the movement of goods across international borders.

According to recent data, the global import/export market is valued in the trillions of dollars, highlighting its immense scale and impact on the world economy. In the United States alone, the total value of imports and exports amounted to over 5 trillion dollars in recent years.

This industry is vital for connecting producers and consumers worldwide, allowing for the distribution of a diverse range of products, from raw materials to finished goods.

These statistics underscore the significant role that the import/export sector plays in global commerce and its potential for lucrative business opportunities.

Industry Trends

The import/export sector is influenced by several key trends that shape the way trade is conducted.

Globalization continues to drive the expansion of international trade, with businesses sourcing products from and selling to markets around the world. E-commerce is also transforming the industry, as more companies leverage online platforms to reach global customers and streamline their operations.

Supply chain optimization is a major focus, with companies investing in logistics and technology to improve efficiency and reduce costs. Additionally, there is a growing emphasis on sustainability, as businesses seek to minimize their environmental impact and meet consumer demand for eco-friendly practices.

Trade agreements and regulatory changes also play a significant role in the industry, affecting tariffs, trade barriers, and market access.

These trends highlight the dynamic nature of the import/export business and the need for companies to stay informed and adaptable to succeed.

Key Success Factors

Success in the import/export industry hinges on several critical factors.

First and foremost, a deep understanding of international markets and regulations is essential. Companies must navigate complex trade laws and customs procedures to ensure compliance and avoid costly delays.

Building strong relationships with reliable suppliers and customers is also crucial for establishing trust and securing repeat business.

Strategic location and logistics capabilities are vital for efficient transportation and distribution of goods. Proximity to major ports, airports, and transportation networks can provide a competitive edge.

Exceptional customer service and communication are important for managing transactions and resolving any issues that may arise during the import/export process.

Lastly, effective risk management and the ability to adapt to changing market conditions are key to maintaining profitability and growth in the face of economic fluctuations and trade disputes.

The Project

Project presentation.

Our import/export company project is designed to bridge the gap between global markets and local businesses by providing a reliable and efficient trade channel. Strategically located to access major shipping routes and transportation hubs, our company will specialize in the import and export of high-demand commodities such as electronics, consumer goods, agricultural products, and textiles.

We will leverage advanced logistics, customs expertise, and a deep understanding of international trade regulations to ensure smooth and timely delivery of goods. Our services will cater to small and medium-sized enterprises (SMEs) looking to expand their market reach without the complexities of global trade.

Our import/export business aspires to be a trusted partner for companies aiming to navigate the complexities of international trade, thereby fostering global business growth and diversification.

Value Proposition

The value proposition of our import/export company lies in our ability to connect businesses with international markets, providing a seamless and cost-effective solution for trading goods across borders.

Our commitment to reliability, transparency, and customer service offers our clients peace of mind, knowing their international trade needs are managed by experts. We aim to simplify the import/export process, allowing businesses to focus on their core operations while we handle the intricacies of global logistics.

We are dedicated to empowering businesses to reach new markets, offering tailored solutions that align with their strategic goals, and contributing to their growth and success in the global marketplace.

Our company strives to be a catalyst for international trade, enabling businesses to leverage global opportunities and driving economic development in the communities we serve.

Project Owner

The project owner is an experienced entrepreneur with a robust background in international trade and logistics.

With a track record of successful trade negotiations and a vast network of global contacts, he is well-equipped to establish an import/export company that stands out for its efficiency, reliability, and customer-focused approach.

Driven by a vision of connecting markets and facilitating global commerce, he is committed to providing top-tier import/export services that support the growth of businesses and contribute to the dynamism of the global economy.

His dedication to excellence and his strategic insight into the world of international trade make him the driving force behind this project, aiming to create new opportunities for businesses and enhance the flow of goods across international borders.

The Market Study

Market segments.

The market segments for this import/export company are diverse and cater to various industries and consumer needs.

Firstly, there are businesses seeking to import goods and raw materials that are not readily available in the local market, such as specialized machinery, electronics, or unique consumer products.

Secondly, domestic manufacturers and producers looking to expand their market reach by exporting goods to international markets form another significant segment.

The market also includes retailers and e-commerce platforms that require a steady flow of imported products to satisfy consumer demand for variety and quality.

Finally, trade consultants and logistics companies can be key partners, as they may require the services of an import/export company to facilitate their operations.

SWOT Analysis

A SWOT analysis of this import/export company project reveals several aspects.

Strengths include a robust network of international suppliers and buyers, expertise in logistics and customs regulations, and the ability to offer competitive pricing due to economies of scale.

Weaknesses might involve currency exchange risks, dependency on international trade policies, and the challenge of maintaining quality control across borders.

Opportunities can be found in the increasing globalization of trade, the rise of e-commerce, and the potential to enter emerging markets with high demand for imported goods.

Threats could include geopolitical tensions affecting trade routes, sudden changes in import/export regulations, and the volatility of international shipping costs.

Competitor Analysis

Competitor analysis in the import/export industry indicates a highly competitive environment.

Direct competitors include other import/export companies, both large multinational corporations and smaller niche firms.

These competitors strive to establish strong relationships with suppliers and buyers, offer cost-effective solutions, and ensure timely delivery of goods.

Potential competitive advantages include a comprehensive understanding of market trends, superior customer service, and the agility to adapt to changing trade environments.

Understanding the strengths and weaknesses of competitors is crucial for carving out a unique market position and for strategic planning.

Competitive Advantages

Our import/export company's competitive edge lies in our extensive global network and our commitment to providing personalized service to each client.

We have established strong partnerships with reliable suppliers and logistics providers to ensure a seamless supply chain from source to destination.

Moreover, our expertise in navigating complex trade agreements and customs regulations allows us to minimize delays and reduce costs for our clients.

We are dedicated to transparency in our operations, providing clients with real-time updates on their shipments and ensuring that all transactions comply with international trade laws.

You can also read our articles about: - the customer segments of an import/export company - the competition study for an import/export company

The Strategy

Development plan.

Our three-year development plan for the import/export company is designed to establish a strong foothold in the international trade market.

In the first year, we will concentrate on building a robust network of suppliers and buyers, focusing on high-demand products and ensuring compliance with trade regulations.

The second year will be dedicated to expanding our market reach by entering new territories and diversifying our product portfolio to cater to a broader audience.

In the third year, we aim to solidify our presence in the industry by enhancing our logistics, customer service, and exploring strategic partnerships with local and international businesses.

Throughout this period, we will prioritize efficiency, customer satisfaction, and adaptability to the dynamic global market conditions to secure our growth and success.

Business Model Canvas

The Business Model Canvas for our import/export company targets businesses seeking reliable access to international markets for their products, as well as those looking to source goods from abroad.

Our value proposition is centered on providing seamless trade solutions, competitive pricing, and ensuring product quality and compliance.

We conduct our operations through direct sales channels, online platforms, and through partnerships with local distributors, utilizing our key resources such as our global trade network and logistics expertise.

Key activities include market research, negotiation, logistics management, and customer support.

Our revenue streams are generated from service fees, commissions on transactions, and margins on products traded, while our costs are mainly associated with logistics, operations, and marketing.

Access a comprehensive and editable real Business Model Canvas in our business plan template .

Marketing Strategy

Our marketing strategy is built on establishing trust and demonstrating expertise in the import/export field.

We aim to educate potential clients about the advantages of our services and the efficiency of our trade processes. Our approach includes targeted online campaigns, participation in trade shows, and the creation of informative content on international trade regulations and trends.

We will also develop partnerships with industry leaders to enhance our credibility and reach.

Additionally, we will leverage social media and professional networking platforms to connect with businesses worldwide, while emphasizing our commitment to providing exceptional trade services.

Risk Policy

The risk policy of our import/export company is designed to mitigate risks associated with international trade, such as currency fluctuations, compliance with trade laws, and supply chain disruptions.

We employ rigorous due diligence procedures, engage in hedging strategies to manage currency risks, and maintain strong relationships with logistics providers to ensure supply chain reliability.

Regular audits and compliance checks are conducted to adhere to international trade regulations. We also maintain a conservative financial strategy to manage operational costs effectively.

Furthermore, we have comprehensive insurance coverage to protect against unforeseen events and liabilities. Our priority is to conduct secure and efficient trade operations while safeguarding the interests of our clients and our business.

Why Our Project is Viable

We envision establishing an import/export company that serves as a bridge between markets, facilitating the flow of goods and contributing to global commerce.

With our strategic approach to market entry, commitment to service excellence, and adaptability to market trends, we are confident in our ability to thrive in the competitive world of international trade.

We are excited about the opportunity to foster global business connections and drive growth for our clients and our company.

We remain open to innovation and strategic shifts to navigate the complexities of global trade, and we look forward to the prosperous future of our import/export venture.

You can also read our articles about: - the Business Model Canvas of an import/export company - the marketing strategy for an import/export company

The Financial Plan

Of course, the text presented below is far from sufficient to serve as a solid and credible financial analysis for a bank or potential investor. They expect specific numbers, financial statements, and charts demonstrating the profitability of your project.

All these elements are available in our business plan template for an import/export company and our financial plan for an import/export company .

Initial expenses for our import/export company include setting up a robust logistics network, securing partnerships with reliable suppliers and distributors, obtaining the necessary licenses and permits for international trade, investing in a customer relationship management (CRM) system, and costs related to brand creation and launching targeted marketing campaigns to establish our presence in the market.

Our revenue assumptions are based on a comprehensive analysis of global market trends, the demand for specific products in various regions, and the potential for competitive pricing.

We anticipate a steady increase in trade volume, starting conservatively and expanding as our network and reputation in the import/export industry grow.

The projected income statement indicates expected revenues from our trading activities, cost of goods sold (including freight, tariffs, and insurance), and operating expenses (office rent, marketing, salaries, etc.).

This results in a forecasted net profit essential for assessing the long-term viability of our business.

The projected balance sheet reflects assets specific to our business, such as inventory, accounts receivable, and liabilities including debts and anticipated operational expenses.

It shows the overall financial health of our import/export company at the end of each fiscal period.

Our projected cash flow statement details incoming and outgoing cash flows, allowing us to anticipate our cash needs at any given time. This will enable us to effectively manage our finances and avoid liquidity issues.

The projected financing plan lists the specific financing sources we plan to use to cover our startup and operational expenses.

The working capital requirement for our import/export company will be closely monitored to ensure we have the necessary liquidity to finance our daily operations, including purchasing inventory, managing supplier payments, and covering overhead costs.

The break-even point specific to our project is the level of sales needed to cover all our costs, including startup expenses, and begin generating a profit.

It will indicate when our business will become financially sustainable.

Performance indicators we will track include the gross margin on our traded goods, the inventory turnover ratio to assess the efficiency of our stock management, and the return on investment to measure the profitability of the capital invested in our business.

These indicators will help us evaluate the financial health and overall success of our import/export company.

If you want to know more about the financial analysis of this type of activity, please read our article about the financial plan for an import/export company .

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Palay production costs top P47,000 per hectare in 2020

THE average cost to produce palay, or unmilled rice, rose 1.7% in 2020 to P47,089 per hectare (/ha), according to the Philippine Statistics Authority (PSA).

The PSA said in a report that rice farmers absorbed costs during wet season cropping of P47,196/ha compared to the dry season cost of P46,650/ha.

The PSA said the average production cost of rice farmers on a per kilogram (/kg) basis was P11.52/kg in 2020, up 0.6%.

“By region, the average cost of producing palay was highest in Ilocos Region at P64,776/ha. Likewise, the region entailed the biggest cost during the dry season cropping at P66,336/ha. Cagayan Valley recorded the biggest cost at P66,580/ha during wet season cropping,” PSA said.

“Bangsamoro Autonomous Region in Muslim Mindanao (BARMM) listed the lowest cost of producing palay at an average of P37,271/ha. In both seasons, the region also registered the lowest of P38,610/ha during the dry season and P35,197/ha during the wet season,” it added.

According to the report, the average farmgate price of palay in 2020 was P16.76/kg, down 1.1%.  

The PSA said the average net return of palay farmers dropped 3.7% to P21,430/ha in 2020.

Asked to comment, Federation of Free Farmers National Manager Raul Q. Montemayor told  BusinessWorld  via mobile phone that the interventions under Republic Act No. 11203 or the Rice Tariffication Law have not posted significant results.

“These results indicate that the interventions of (the Department of Agriculture) … in terms of reducing costs of production and improving yields have not had any significant result. As a result, farmers ended up with significantly less income due to lower farmgate prices,” Mr. Montemayor said.

President Rodrigo R. Duterte signed the law in 2019, allowing private parties to import rice more freely in exchange for the payment of a 35% tariff on Southeast Asian grain.

The law also created the Rice Competitiveness Enhancement Fund (RCEF), which seeks to modernize the rice industry. It is to be provided P10 billion a year between 2009 and 2024 from rice tariffs.

“The results for the first two years show that we are still a long way off the targets of improving yields by and reducing costs of production, despite the billions in RCEF and other supplemental funds poured into the rice sector,” Mr. Montemayor said.

Jayson H. Cainglet, Samahang Industriya ng Agrikultura executive director, said in a mobile phone interview that the PSA report validates the data on the ground.

“From the perspective of the producers, the bottom lines are lower cost of production, increase in the farmgate price, and affordable basic food. On all three counts, the government has failed as PSA data would show,” Mr. Cainglet said. — Revin Mikhael D. Ochave 

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Hello, Is their someone here could share their experiences related to the Topic? Papaano po kayo nagsimula sa ganitong business? How did you succeed po? 1.2M budget Less 650k to erect storage building, could this be enough? Regards.

Originally Posted by cristian ZDN Hello, Is their someone here could share their experiences related to the Topic? Papaano po kayo nagsimula sa ganitong business? How did you succeed po? 1.2M budget Less 650k to erect storage building, could this be enough? Regards. are you going to be buying different variety of rough rice? if you only deal with one variety, just have a rodent resistant silo for the grains. invest in a grain moisture meter. the grains are most stable and less prone to breakage when milled at this moisture content. anything higher will spoil. if you over dried them it tends to recover in moisture content. for walls of the storage area, one of the most affordable panels would be the fiber reinforced cement board. use steel for framing, wood is expensive, bends or deforms easy, not rodent resistant and combustible. in vest in a platform scale too.

Originally Posted by mina_nuka are you going to be buying different variety of rough rice? if you only deal with one variety, just have a rodent resistant silo for the grains. invest in a grain moisture meter. the grains are most stable and less prone to breakage when milled at this moisture content. anything higher will spoil. if you over dried them it tends to recover in moisture content. for walls of the storage area, one of the most affordable panels would be the fiber reinforced cement board. use steel for framing, wood is expensive, bends or deforms easy, not rodent resistant and combustible. in vest in a platform scale too. Hello Ma'am Thank you for your Reply. 1. I will deal maybe with different varieties coming freshly from thresher at the farm fields. 2. For the Building Construction it is a 12m x 10m Floor area and a 4m height, for the trusses i'm still choosing bet steel or just wood- plan to make this concrete floors and walls- Is there any disadvantages if i will use concrete materials? 3. I'll take your advice of getting Grain Moisture Meter and Flatform Scale : ) thank you 4. Base from your measures - what are the example variety of your Palay and their respective standard moisture Ma'am? what should be the moisture so we can say that it is already dried and ready for storage? and what should be the moisture content so we can say that this is ready for milling? - please share even the basic ones ma'am. 5. How did you control those pest from your storage ma'am Mina? 6. What could be the best timing to dispose or to sell ma'am base on your method? So much Thank you po.

different classes of rice should not be mixed to maximize finished rice recovery. long grain usually have 66-68% recovery(44 kgms of rough rice X 66%=28.8 kgms of polished rice). if you mix short and long grain, there will be a lot of grain breakage. for the building, you have a capacity between 8000-9000 bags. use steel for framing and cement fiber board panels or long span metal roofing. just provide for ventilation at the top. concrete floor is the most advisable. it is easier to recover the grains that may have spilled. grains are stable at 14% moisture content. however, if you over dried them, give it about 12 hours for it to recover to 14% m.c. as for rodent control, use ultrasonic pest repeller or a couple of cats heh heh heh or if you don't mind the snakes they do a good job putting the rats and mice under control. do not stock the grains too long. rotate your grains. buy during harvest and dispose of during lean months. the by product of milling, sell them as animal feeds.

ZCT1 Mini Rice Mill Plant + Packing System

Originally Posted by mina_nuka different classes of rice should not be mixed to maximize finished rice recovery. long grain usually have 66-68% recovery(44 kgms of rough rice X 66%=28.8 kgms of polished rice). if you mix short and long grain, there will be a lot of grain breakage. for the building, you have a capacity between 8000-9000 bags. use steel for framing and cement fiber board panels or long span metal roofing. just provide for ventilation at the top. concrete floor is the most advisable. it is easier to recover the grains that may have spilled. grains are stable at 14% moisture content. however, if you over dried them, give it about 12 hours for it to recover to 14% m.c. as for rodent control, use ultrasonic pest repeller or a couple of cats heh heh heh or if you don't mind the snakes they do a good job putting the rats and mice under control. do not stock the grains too long. rotate your grains. buy during harvest and dispose of during lean months. the by product of milling, sell them as animal feeds. Wow thank you for this, a big help po, next month will be the ground breaking po. if you don't mind, can i still seek advises and opinions from you in the near future? Thank you for the link to where i can buy a Milling Machine - i already shoot them an email inquiring the price of your recommended machine. : ) One more thing Sir, how about of getting a truck, what would you recommend? 2nd hand? brandnew? and where maybe i get po? Salamat.

Tibayan mo loob mo. Kasi kung hindi, baka maawa ka sa mga magsasaka, eh malulugi ka.

Originally Posted by Lew_Alcindor Tibayan mo loob mo. Kasi kung hindi, baka maawa ka sa mga magsasaka, eh malulugi ka. Isa din yan sa Dilemma ko pero business is business, magiging maayos din ang proseso sooner sa day to day na learning. kahit maliit ginansya as long as tuloy tuloy lang, hopefully maka sustain.

Originally Posted by cristian ZDN Hello, Is their someone here could share their experiences related to the Topic? Papaano po kayo nagsimula sa ganitong business? How did you succeed po? 1.2M budget Less 650k to erect storage building, could this be enough? Regards. Hi po, its our line of business. Kung mag start kapalang aralin mu muna lahat, wag muna kuha ng cono. Important for me is ung bodega and bilaran(solar drier) Specially sa mga farmer kayu bibili ng palay mostly is sariwa pa yun. Need pa patuyuin before i ibyahe or ipa bigas. What is your exact plan pala? U buy from the farmers and dry it then sell it? Or u dry it and plan to stock it? I dont recommend this na stock nyu since baguhan kapalang sa ganito negosyu? Matutulog lang ang puhunan mo then you dont know the price kung bigla baba or bigla taas? Just give u idea po or message mo ako too many to mention kasi. Hehe You need a truck kahit elf muna estimated price 500-800k for a descent second hand. U can choose brand new for the price of more than 1m. Think of it na u need to built your bodega and bilaran po. In your case depende sa location nyu, sa amin kasi my mga bakante na budega and bilaran na for rent, not a bad idea naman kung mag rent muna. One more thing pala u need to have mga tauhan na taga bilad and buhat po, think of it kung per day mo sila sahuran or per cavan? A lot if things po but once you know how to deal in evrything, Im telling you its really worth. You need to be carefull sa mga ibang ahente pala need mo sila maging friends[emoji3][emoji106] Sent from my iPhone using Tapatalk

Originally Posted by erdiedizon Hi po, its our line of business. Kung mag start kapalang aralin mu muna lahat, wag muna kuha ng cono. Important for me is ung bodega and bilaran(solar drier) Specially sa mga farmer kayu bibili ng palay mostly is sariwa pa yun. Need pa patuyuin before i ibyahe or ipa bigas. What is your exact plan pala? U buy from the farmers and dry it then sell it? Or u dry it and plan to stock it? I dont recommend this na stock nyu since baguhan kapalang sa ganito negosyu? Matutulog lang ang puhunan mo then you dont know the price kung bigla baba or bigla taas? Just give u idea po or message mo ako too many to mention kasi. Hehe You need a truck kahit elf muna estimated price 500-800k for a descent second hand. U can choose brand new for the price of more than 1m. Think of it na u need to built your bodega and bilaran po. In your case depende sa location nyu, sa amin kasi my mga bakante na budega and bilaran na for rent, not a bad idea naman kung mag rent muna. One more thing pala u need to have mga tauhan na taga bilad and buhat po, think of it kung per day mo sila sahuran or per cavan? A lot if things po but once you know how to deal in evrything, Im telling you its really worth. You need to be carefull sa mga ibang ahente pala need mo sila maging friends[emoji3][emoji106] Sent from my iPhone using Tapatalk Thank you for Your Share Sir ErDie, Bodega(12m x 10m x4mh) will be constructed by next month hopefully, may bilaran nadin galing sa Pamana Organization which is nasa lupa namin, sabi ng PAMANA priority na magbilad ng palay ay ung nag pahiram ng lupa sa kanila for 20 years, after 20 yrs ung bilaran ay magiging sa amin na. So kaya i took the advantage of building a bodega dahil may Bilaran na, so pwede na un dahil priority naman kami na may ari ng lupa na magbilad ng Palay : ) Opo yan ang balak ko, buy sacks of palay galing sa anihan then patuyuin then stock muna sa bodega after sometime deal to palengke then milled it. siguro dahil sa baguhan palang i would sell it small higher than the time na binili ko sa anihan. Sir more likely how do you pay the prson who works for you? halimbawa sa pagbilad ng palay as pagbuhat? per sack ba bayad mo?how much naman po? saan ako makakatipid sa cavan or per sack? Sir can you share how to compute if bibili ako ng sariwang palay mga palagay natin 100sacks at 44kls per Sack at 17pesos per kilo? how much will it cost per kilo after mabilad po? Maraming Salamat

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Creating a Winning Trading Plan: A Comprehensive Guide (FREE Template)

Author - TradeZella Team

As traders, we all want to be successful and achieve our financial goals. But the reality is that many traders fail to achieve the level of success they desire.

One of the main reasons for this is the lack of a solid trading plan.

A trading plan is essentially a roadmap for your trading journey. It helps you to stay focused, stay disciplined, and make better trading decisions.

Without a plan, you're likely to become easily swayed by your emotions, and you'll be more prone to making rash and unwise decisions.

In this article, we'll go over the importance of a trading plan and how you can create one that works for you.

We'll also discuss the role of discipline and consistency in trading, as these are key factors in your success.

We've also included a FREE downloadable Trading Plan template at the end of this article to help you get started!

The Importance of a Trading Plan

As mentioned earlier, a trading plan is essential to your success as a trader.

It provides you with a systematic approach to finding, executing, and managing trades. It's like a playbook that you can refer to no matter what the market throws at you.

Having a plan in place helps you to trade objectively, with less emotional involvement. It also gives you confidence, knowing that you have a predetermined response to different market scenarios.

But perhaps the most important benefit of a trading plan is that it helps to keep you focused and disciplined.

Trading can be a stressful and emotional pursuit, and it's easy to get caught up in the excitement of it all. A trading plan helps to ground you and keep you on track.

Before we jump into how to create a trading plan, you might want to check out our trading plan template . It’s a spreadsheet trading journal that’ll help take your trading to the next level without having to invest in any trading software.

How to Create a Trading Plan in 5 Steps

Discipline and consistency are essential qualities for any successful trader.

Without these, you'll struggle to stick to your plan and make consistent profits.

To be successful in trading, you need to be able to follow your plan even when things aren't going your way.

This means being disciplined enough to stick to your rules, even when it's tempting to deviate from them.

Consistency is also key.

If you're inconsistent in your approach, you'll find it difficult to build a track record of success.

You need to be consistent in your execution, risk management, and trade review process to ensure that you're continually improving and moving closer to your goals.

So, how do you develop discipline and consistency in your trading?

One way is by creating a pre-market routine. This is a set of activities that you perform every day before you begin trading.

It could be something as simple as making your bed, or as involved as reviewing economic data and key support and resistance levels.

Having a pre-market routine helps to set the tone for your trading day and get you in the right mindset . It also helps to build discipline and consistency, as you're following the same routine every day.

Step 1: Premarket Routine

Creating a pre-market routine is an important step in developing discipline and consistency in your trading.

It helps to set the tone for your trading day and get you in the right mindset to tackle the markets.

But what should this routine consist of? It really depends on your individual needs and preferences.

Some traders like to start their day with physical exercise, while others prefer to spend time reviewing economic data and key support and resistance levels.

Here are a few examples of activities that you might include in your pre-market routine:

Neatly making your bed :

This may seem like a small and insignificant task, but it can actually have a big impact on your mindset. A neatly made bed gives you a sense of accomplishment and sets the tone for a productive day. Plus, it just feels good to start your day off with a clean and organized space.

Brushing your teeth :

This is a no-brainer, but it's still worth mentioning. Taking care of your personal hygiene is important for both your physical and mental well-being. Plus, it's just plain gross to trade with dirty teeth (not to mention, bad for your breath).

Doing a 15-minute stretch and workout :

Physical activity has been shown to improve cognitive function and boost mood. Plus, it's a great way to start your day off on a healthy note. You don't have to do a high-intensity workout – even a quick stretch or some yoga poses can make a big difference.

Preparing a snack for the day :

Trading can be mentally and emotionally draining, so it's important to fuel your body with healthy snacks. This can help to keep your energy levels up and your mind sharp. Some good options might include nuts, fruits, or protein bars.

Showering :

Again, this seems like a basic task, but it's important for both your physical and mental well-being. Taking a shower can help to wake you up, refresh your mind, and boost your mood. Plus, it's just plain nice to start your day feeling clean and refreshed.

Reviewing yesterday's trade journal :

It's important to reflect on your trades and learn from both your successes and your mistakes. By reviewing your trade journal, you can identify patterns and areas for improvement. This will help you to become a better trader over time.

Viewing economic numbers for the day :

Knowing what economic events are coming up can help you to make informed trading decisions. By reviewing the economic calendar, you can get a sense of what's likely to impact the markets and how you should position your trades accordingly.

Reading your trade plan :

This might seem obvious, but it's important to actually read and review your trade plan before you start trading. It will help you to get clear on your goals and your rules for finding and executing trades.

Notating key support and resistance levels :

Knowing where key support and resistance levels are can help you to identify potential entry and exit points for your trades. By noting these levels before you start trading, you can be more prepared to take advantage of opportunities as they arise.

Remember, the key is to find activities that help you to get focused and prepared for the day ahead.

You might want to experiment with different activities to see what works best for you.

Step 2: The Trader's Vow

Once you've developed your pre-market routine, it's time to take the next step and make a commitment to your trading plan. This is where the "vow" comes in.

The vow is essentially a promise that you make to yourself to follow every rule in your trade plan. It's a way of reinforcing your commitment to your goals and your plan.

Here's an example of a vow that you might make:

Making this vow is a powerful way to reaffirm your commitment to your trading plan and to your success as a trader.

It helps to keep you focused and motivated, even when things get tough.

Remember, trading can be a challenging pursuit, and there will be times when you're tempted to deviate from your plan.

Having a vow in place can help you to stay on track and stay committed to your goals.

It's also important to note that your vow should be personal and meaningful to you.

Don't just copy someone else's vow – take the time to write your own, using your own words and motivations.

This will make it more powerful and meaningful to you.

So, take same time to think about what your vow might be.

Write it down and keep it somewhere visible, like on your computer or on a post-it note on your desk.

This will help to keep you focused and motivated as you work towards your trading goals.

Step 3: Set your Trading Goals

When it comes to trading, it's important to have specific and measurable goals in place. These goals should be aligned with your overall financial and lifestyle goals, and should help to keep you motivated and focused.

Here are a few examples of trading goals that you might want to consider:

Create the lifestyle you want :

For some traders, the goal of trading is to create a lifestyle that allows them to turn work off when they're done and enjoy everyday life. This might involve achieving financial independence, or having the freedom to travel or spend more time with family and friends.

Provide for your family and loved ones :

For other traders, the goal might be to provide for their family and the people they care about. This could involve saving for your children's education, or creating a comfortable retirement for yourself and your spouse.

Enjoy your career and find fulfillment in your work :

For some traders, the goal might be to find fulfillment and enjoyment in their work. Trading can be a rewarding and exciting career, and setting this as a goal can help you to stay motivated and engaged in your work.

Achieve financial independence :

For many traders, the ultimate goal is financial independence – the ability to live off the profits from their trading. This can be a challenging goal to achieve, but it's certainly possible with the right mindset and approach.

It's important to note that these are just a few examples, and your goals will likely be unique to you.

Take some time to think about what your goals are, and how trading can help you to achieve them.

Plan Your Trade - The Importance of Clear and Defined Rules

In addition to having specific goals in place, it's also important to have clear and defined rules for finding and executing trades.

These rules should be based on your trading strategy and should help you to stay disciplined and consistent in your approach.

Here are a few examples of trade rules that you might want to consider:

Only enter trades that meet your criteria :

It's important to have a clear set of criteria that you use to identify potential trades. This might include factors such as trend, price action, volume, and/or technical indicators. By only entering trades that meet your criteria, you can increase your chances of success.

Use stop loss orders :

Stop loss orders are an important risk management tool that help you to limit your potential losses. By setting a stop loss order, you can protect yourself from large losses if the market moves against you.

Trade with a plan :

Before you enter any trade, it's important to have a clear plan in place. This should include your entry and exit points, as well as any risk management measures you will take. By having a plan in place, you can trade with more confidence and reduce the chances of making impulsive decisions.

Only trade with capital you can afford to lose :

Trading carries inherent risk, and it's important to only trade with capital that you can afford to lose. This will help to prevent you from taking on too much risk and potentially jeopardizing your financial stability.

Be willing to cut your losses short :

No one likes to take a loss, but sometimes it's necessary in order to protect your capital. By being willing to cut your losses short, you can prevent small losses from turning into bigger ones.

Let your profits run :

On the other hand, it's also important to let your profits run when they're in your favor. This means not taking profits too early and giving your trades room to grow. By letting your profits run, you can maximize your returns.

Remember, these are just a few examples of trade rules that you might want to consider.

It's important to customize your rules to fit your individual trading strategy and goals.

Step 4: Risk Management

Risk management is an important aspect of trading, and it's essential to have clear and defined risk management measures in place.

These measures should help you to protect your capital and reduce the chances of large losses.

Here are a few examples of risk management measures that you might want to consider:

As mentioned earlier, stop loss orders are an important risk management tool that help you to limit your potential losses. By setting a stop loss order, you can protect yourself from large losses if the market moves against you.

Set position size limits :

It's also important to have limits in place for how much you're willing to risk on any given trade. This can help you to prevent overtrading and protect your capital.

Use diversification :

Diversification is a risk management technique that involves spreading your capital across a variety of different assets. This can help to reduce the impact of any one asset on your overall portfolio.

Have a plan for managing your emotions :

As a trader, it's important to have a plan in place for managing your emotions. This might involve setting aside time to review your trades, or finding a mentor or accountability partner to help you stay on track.

By implementing these risk management measures, you can help to protect your capital and reduce the chances of large losses.

Remember, risk management is an ongoing process, and it's important to continuously review and adjust your measures as needed.

Step 5: Trade Review Process

Continuous improvement is key to success in trading, and an important part of this process is regularly reviewing and analyzing your trades.

By reviewing your trades, you can identify patterns and areas for improvement, and make adjustments to your approach as needed.

Here's an example of a trade review process that you might want to consider:

Set aside time each week to review your trades :

It's important to carve out dedicated time to review your trades. This might be once a week, or once a month, depending on your trading frequency.

Use a trade journal to record your trades :

A trade journal is a valuable tool for tracking and analyzing your trades. It should include details such as the date, instrument, entry and exit points, and any notes on the trade.

Identify patterns and areas for improvement :

As you review your trades, look for patterns and areas for improvement. For example, are you consistently taking too large of a position size? Are you missing key entry points? By identifying these patterns, you can make adjustments to your approach as needed.

Seek feedback from a mentor or accountability partner :

It can be helpful to get feedback from someone else on your trades. This could be a mentor, accountability partner, or even a group of fellow traders. By getting an outside perspective, you can gain valuable insights into your approach and identify areas for improvement.

By regularly reviewing your trades and making adjustments as needed, you can improve your performance over time and become a more successful trader.

Conclusion: The Value of a Solid Trading Plan

In conclusion, a solid trading plan is essential to your success as a trader.

It helps to provide clarity and objectivity in your approach, and can help you to trade with confidence and less emotional involvement.

A good trading plan should include a pre-market routine, a vow to follow your plan, specific goals, clear rules for finding and executing trades, risk management measures, and a trade review process.

By following these guidelines, you can increase your chances of success and improve your performance over time.

If you're interested in taking your trading to the next level, we invite you to sign up for early access to TradeZella, a powerful trade journal platform that helps you to create, backtest, and optimize your trading strategies. With TradeZella, you can take control of your trading and achieve your financial goals.

Sign up for access today and start building the ultimate trading plan for your success.

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The Ultimate Trading Plan Template

A proper Trading Plan is essential to your success as a trader.

Anyone thinking of starting a business wouldn’t begin without a plan, if they do, they probably won’t like the end results. Day trading is no different than any other business.

As they say, “If you fail to plan, then you’ve already planned to fail.”

You’re about to learn the same process I’ve used for the past 20 years. It’s also what I currently teach our students.

After completing this post, you should be confident in your ability to write a rock solid trading plan. To speed up the process, I provided a link to our Trading Plan template at the end.

Let’s get into it…

What is a Trading Plan?

A Trading Plan defines a trader’s goals, expectations, routines, risk management, and trading strategies. A successful plan will include the logic underlying the strategies and processes a trader deploys.

Elite traders already know they have won the game before placing a single trade for two reasons.

First, they have a well defined edge that’s repeatable. 

The primary goal of your trade plan is to precisely define your processes and strategies, with the end of goal of creating a repeatable process.

Second, elite traders fully understand there is a random distribution between wins and losses for any given set of variables that define an edge , resulting in flawless execution.

First, you need to focus on developing your process. You will work on developing the mindset of winning trader and the ability to think in probabilities (versus P&L) when you begin backtesting and simulated trading.

A simple google search and you will find endless styles and formats for trade plans.

For me, my plan acts as the CEO of my business. defining the big picture items such as rules, processes, routines, analytics, theories and goals.

A lot of traders include their trading strategies in their trade plan, but I prefer defining them in a separate Playbook. I do this for several reasons…

First, I’ve been trading for over two decades, in that time I’ve developed and traded a lot of different strategies.

I’ve always found it beneficial to have all my strategies broken down individually. This becomes extremely valuable as you get more into strategy development.

A lot of the strategies I’ve built were a result of combining the different tools, theories and processes from other strategies I’d previously traded in my career.

Second, I think a Trade Plan that focuses solely on the macro level picture will help you in your review.

When I began my career I was surrounded by elite traders every day. My mentor and the owner’s of the firm kept me in line and made sure I was following their processes. If I was trading poorly, they held me accountable.

Accountability Partner

If you haven’t already chosen someone as an accountability partner, it should be the first thing you do after reading this post.

Your trade plan will be shared with your Accountability Partner in order to review your progress.

Your playbook will be used in strategy development and shared with your peers for trade review.

Obviously your accountability partner can play both roles if they have a trading background.

However, it’s more important your accountability partner is someone your close to that is committed to helping you achieve goals.

A good accountability partner will call you out and question you when you’re not following your rules, and due to your respect for the individual it should sting a little.

For the remainder of this post we’re going to focus solely on your trade plan.

Once you’ve completed your plan, I have you covered on your playbook as well. (link to Playbook Guide at the end)

Why You Need a Trading Plan

Good trading should be effortless. The preparation is where the hard work comes.

Imagine two runners, on one hand someone completely out of shape trying to run 1 mile in 10 minutes versus a world-class runner. The process looks effortless for the world-class runner, and it is. They put all of the hard work into their preparation, resulting in a process that is effortless.

Your Trade Plan and Playbook are part of your preparation.

The objectivity and clarity that a solid plan provides is essential in a market that requires split second decision making to capitalize on opportunities.

It will empower you to trade objectively, with confidence and less emotional involvement.

Let’s take a look at some categories you will want to include in your plan.

Trading Plan Outline

This outline is a strong base to get you started. You can use this plan for all markets, including Stocks, Forex, Futures, Options, and/or Crypto.

Remember, there’s no formal rules so get creative!

1. Premarket Routine

Developing routines in our lives helps us to stay on track and reach goals. 

By analyzing our current routines and making adjustments, we’re able to form new habits. A skill that is rewarded in this business.

Here’s a great video on the importance of simple routines, especially when starting your day.

Try it, what do you have to lose?

Outline the tasks you will perform prior to trading each day.

Examples: -Read trading plan -Review a personal journal entry twice a week and reflect -Read prior day’s trade journal -Review prior day’s trades -Check economic numbers -Read playbook -Mirror reflection -Pre-market Analysis

2. Visualization/Mantras

Visualization and Mantras are great tools to include in your morning routines.

Examples: -Visualize yourself taking a trade and going through all the steps outlined in your Playbook -I accept that I have no idea what the outcome of any individual trade will be -I accept that today could be a negative day -I accept the loss of my next  trade financially -I accept I will get stopped out on trades that reverse and rip in the direction of the setup

3. Hard Rules

You want to get very specific with some macro rules for your trading business. They should be reviewed with your accountability partner on a monthly basis at minimum. I recommend meeting weekly or daily if you’re a new trader or not yet profitable.

Examples: -3 losing trades switch to SIM remainder of session -Take a random trade, switch to SIM remainder of session -Two max loss days back to back, SIM for remainder of week -No trading outside RTH

4. Risk Management

You don’t need to over complicate your risk management. Below is what I recommend to my students.

Example: -1% max per trade -3% max per day -5% max per week -15% max per month -Adjust trade size on Monday mornings

IMPORTANT! You should never trade real money until you have proven your ability to be profitable on a simulated account!

I promise, if you can’t make money on a simulated account, you won’t do it on a live account.

Don’t start trading a live account until you’ve proven you have acquired the necessary skills to make money on SIM.

5. Aftermarket Routine

All traders make mistakes. The question is whether or not you will analyze those mistakes to learn from them?

When the trade day ends, you still have work to do.

You should do some journaling and reflection on your execution for the day.

Keeping a  trade journal of all your trades as well as grading every trade is essential for growth. Make sure to take screenshots of your trades as well so you can go back and review them.

Here’s a few more examples: -Complete Scorecard for ever trade taken that day -Complete journal entry discussing market conditions for the day and reviewing your execution -Input trades into spreadsheet or whatever you’re using for analytics -Meditate -Workout

Trading can be emotionally challenging at times. There’s not many professions where you go to work and perform your best yet at the end of the day you leave with less money than you started.

Keeping mentally fit is imperative in this business. It’s important you incorporate some stress relieving activities, such as meditating or working out, into your aftermarket routine.

6. Weekend Routine

On Sunday evenings I have a routine to prepare myself for the upcoming week.

-Read trade journal entries from the past week -Review trades from the past week -Check sizing -Goals for upcoming week -Meet with Accountability Partner

7. Monthly Routine

On a monthly basis you should perform a thorough analysis on your trading business.

Examine your processes and trading analytics, looking where you can improve.

Examples: -Review trade analytics and make adjustments to strategies -Backup everything -Check risk management and sizing -Write main goals for upcoming month

8. Goals/Achievements

The markets are always changing and presenting new opportunities as well as challenges. Even after 20 years, I still find myself learning new things.

Reflecting on why you started trading in the first place is important. Don’t ever lose sight of your goals.

Keep track of your goals and achievements in your trade plan as you progress as a trader. You will find it encouraging as you start to see your progress.

Examples: -Zero random trades for a week -Average trade score of X for the month -First chop comma ($1,000 net day)

While I think all these categories should be included in your own plan, remember to get creative and include anything you feel could potentially improve your trading.

Maybe include some pictures to motivate you.

Free Trade Plan Template (Download)

I created a template in Google Sheets with the categories and examples covered in this post to get you started on your trade plan.

If you would like the template and some other cool trading tools,  become a JT Insider. It’s free.

I also recommend you check out this guide “How to Become A Day Trader – (Here’s how I did it…)”. I share with you how I overcame my trading failures by developing an Objective Edge.

Final Thoughts

Whenever a student comes to me struggling, I ask them for their trade plan. The struggles typically lead back to a rule or set of rules they have outlined in their Trade Plan that they’re consistently breaking.

It’s an essential tool when reviewing your trading with your accountability partner. Remember to select someone close to you must be completely transparent with them or you’re only cheating yourself.

Don’t make trading more difficult than it already is. Write a solid plan and work on having the discipline to follow it.

Anything not mentioned you like to include in your plan? Leave a comment below!

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Trading Plan Template for 2024 [Free PDF | Sheets Download]

• 7 mins read ●
• Published: 11 May 2022
• Last Updated: 1 April 2024

Needless to say, having a plan before you start trading is essential to your success as a trader. Every experienced trader will tell you that when you enter the markets, you risk your money and, more importantly, your ego and confidence in yourself.

• A well-thought-out trading plan is crucial for forex trading success, safeguarding both finances and self-confidence.
• While many traders are naturally skilled, creating a clear trading plan can still be challenging.
• Using a trading plan template can streamline your strategy and increase chances of consistent profits.

This article will help you with everything you need to know about developing a trading plan . We’ll also include a trading plan PDF, a trading plan Excel template , and a Word document that you can download and use in your trading journey.

• What is a Trading Plan Template

Trading Plan Template FREE Downloads

• How to Build Your Own Trading Plan Template?

1. Set Your Goals – Financially and Emotionally

2. get familiar with trading jargon and analysis methods, 3. develop a trading strategy, 4. set a risk reward ratio, 5. always learn and grow, 6. make an organized trading track record.

• BOONUS: Trading Plan Infographic

What is a Trading Plan Template?

As the name implies, a trading plan is a set of rules and guidelines that a trader follows to execute a trade. Besides that, a trading plan might include suggestions for a healthy trading daily routine and tasks, hence a trading checklist , that will help you manage your account and control your emotions.

For example, with a trading plan, you can define your:

• trading goals
• strengths and weaknesses
• risk management strategy
• trading strategy
• entry rules
• daily routine
• and much more

“Plan your trade and then trade your plan.”

In this section, we have created trading plan templates that you can use for free in the format of your preference. 

• Trading Plan Template PDF
• Trading Plan Template Google Sheets
• Trading Plan Template Word

How to Build Your Trading Plan Template in 6 Easy Steps

So, now that you understand what a forex trading plan is, you need to create a specific plan that matches your style and personality. Personally, while working as a trader in a proprietary trading firm , I remember every trader had a different method, routine, tasks, and rules.

For example, some traders like adding sticky notes on their desktops while others prefer a clean table. Some traders enter hundreds of trades in one trading day while others enter one or two trades in a day. So, it’s up to you to define your own plan and trading strategies .

Nonetheless, based on my knowledge and experience, there are some must-have steps you need to consider to develop a successful trading plan .

You can download our trading plan template below and check the steps on how to develop your trading plan later in this article.

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First and foremost, you must define your goals. In other words, you will need to know what you plan to achieve from your trading experience.

To help yourself, ask these questions :

• Is it an additional income only? Your main income?
• Do you plan to get rich from trading?
• What is the trading capital you are willing to risk and what is your profit target?
• How many hours a day do you plan to spend on trading?

In that aspect, you’d be surprised to know that many people who become professional successful traders do not necessarily do it to make money.

Instead, some traders do it for fun, a hobby, or a competitive game. So consider these factors as well. If this is the case for you, then you need to know it before you start trading. Maybe it can give you an advantage over other participants in the forex market .

Before you make your first trade in the forex market, you first must understand the trading jargon and the different analysis methods.

If needed, take a quick trading course to learn how the forex or the stock market works, read articles, books, financial sites, etc. Additionally, you better explore the two methods to analyze financial assets – technical analysis and fundamental analysis . 

Then, find the best way for you to analyze the markets and read Forex charts. It’s up to you to decide whether you want to use line, bar, or candlestick charts and, more importantly, what technical indicators you want to use.

Additionally, you can learn how to read popular chart patterns and use them to find trading opportunities. Once again, you have to try before you know it.

No one is born a great Trader, one gets great by learning

There are no two traders that are precisely the same. Therefore, you must find your trading strategy and trading style. This is a result of trial and error. It might take weeks or months until you get to the point where you have established a successful trading strategy, and there’s no way to escape this step.

When you make your first step in the trading world, you’ll get familiar with the different trading strategies – position trading, swing trading, day trading, and scalping trading. Moreover, you can try different strategies such as the naked trading strategy or the 5-3-1 forex trading strategy .

Keep in mind that there are many trading strategies to choose from, but you’ll have to find your unique trading style and strategy within time. For that matter, you need to use a trading plan at the beginning of your journey to find the right strategy that matches your personality.

Trading risk management is a predefined strategy to minimize losses and maximize profits. There are lots of tools and risk management rules a trader can use to protect themselves from losses and effectively manage their trading account.

Having said that, there’s one tool used by many traders, which is the most basic and the most effective of all – That is the risk-reward ratio .

In simple terms, a risk-reward ratio is a method to calculate the potential profit of a trade/day/week/month to a potential loss. In other words, it is a method to define your trade risk, that is how much risk you are willing in a trader, or in a day (the method is particularly for day trading).

For example, if you decide to use a risk-reward of 2:1, you are essentially willing to risk $1 for each trade to earn $2.

Trading is not like most professions. The markets always change, the technology evolves, and even the dynamic of the markets is constantly changing. Trust me, financial markets are not the same as they used to be fifteen years ago, and most likely, they will change again in the future.

I mean, the cryptocurrency market is one good example of the unpredictable nature of the trading world and financial markets.

This way or the other, you must read trading books and articles, watch trading movies , and listen to trading podcasts – everything you can do to increase your knowledge. Yes, knowledge is power, but in trading, knowledge is essential.

“An investment in knowledge always pays the best interest.” Ben Franklin

In the final step, make sure you analyze your trading past performance and keep track of your winning and losing trades. Yes, it’s an annoying task, especially when you have a losing day.

Writing down your losing trades is a punch to your ego, but it will help you improve your performance and trading decisions in the future. By doing so, you can learn your worst-performing days of the week, hours, financial instruments, etc. 

Luckily, in most retail investor accounts, you can enter your trading platform and extract your daily/weekly/monthly performance. So, in the words of Forrest Gump: “One less thing to worry about”.

BONUS: Trading Plan Action Plan Infographic

Here is an infographic with 6 action steps for your trading plan.

You can also check our blog post about using a trading journal template [free Google Sheets and Excel spreadsheets included]

Over to You

In a nutshell, every trader must have a well-defined solid trading plan . Developing an organized trading system is the first step in becoming a professional and successful forex trader and will increase your chances of success over the short and long term.

For now, you can use our free Forex trading plan template to start with. Then, add notes, tasks, or any other inspirational quotes you think will help you to trade better.

Risk Disclosure: The information provided in this article is not intended to give financial advice, recommend investments, guarantee profits, or shield you from losses. Our content is only for informational purposes and to help you understand the risks and complexity of these markets by providing objective analysis. Before trading, carefully consider your experience, financial goals, and risk tolerance. Trading involves significant potential for financial loss and isn't suitable for everyone.

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Disclaimer: The information on the HowToTrade.com website and inside our Trading Academy platform is intended for educational purposes and is not to be construed as investment advice. Trading the financial markets carries a high level of risk and may not be suitable for all investors. Before trading, you should carefully consider your investment objectives, experience, and risk appetite. Only trade with money you are prepared to lose. Like any investment, there is a possibility that you could sustain losses of some or all of your investment whilst trading. You should seek independent advice before trading if you have any doubts. Past performance in the markets is not a reliable indicator of future performance.

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Trucking Business Plan Ultimate Guide + Free Example

July 6, 2023

Adam Hoeksema

If you are looking to start a trucking company and need financing, you are likely to be asked to provide a business plan by your potential lender or investor.  If you plan to start as a one-person trucking company this may really seem like overkill, do you really need a full business plan if you simply plan to buy a truck and drive it yourself?  

The reality is that whether it is overkill or not, if your lender requires a business plan, perhaps because it is an SBA loan requirement, then you just have to get it done.  My hope with this blog post is to cover the following questions:

What should a trucking business plan include?

Trucking business plan outline, what kind of trucking business should i get into, where can i find customers for my trucking business, spot freight vs. dedicated routes.

• Should I lease or buy my semi-truck?
• How to create financial projections for a trucking business?
• Trucking example business plan
• Trucking business plan FAQs

With that in mind as the path forward, let’s dive in. 

A trucking business plan should include a market analysis, list of services offered, marketing and sales strategy, operations plan, financial projections, organization and management and risk analysis section. You can see our detailed outline below. 

I. Introduction:

II. Market Analysis:

III. Services Offered:

IV. Marketing and Sales Strategy:

V. Operations Plan

Acquisition and Management of Trucks

Hiring and Training of Drivers

Dispatch and Logistics

Regulatory Requirements and Compliance Measures

VI. Financial Projections

Startup Costs, Funding Sources, and Future Financing Needs:

Financial Summary

Annual Sales, Gross Profit and Net Profit

Key Financial Ratios

Income Statement

Balance Sheet

Cash Flow Statement

VII. Organization and Management

Organizational Structure

Roles and Responsibilities of Key Stakeholders

Legal and Compliance Requirements

VIII. Risk Analysis

Potential Risks

Contingency Plans

IX. Conclusion

Your business plan will differ based on the type of trucking business you plan to get into.  There are several different types of trucking businesses, each with different business and financial models.  For example, we have developed financial models for the following types of trucking businesses: 

• General Freight Trucking
• Moving Truck

Each type of trucking business will have different pros and cons, different startup costs, different work schedules, and ultimately different earning power.  

Finding customers for your trucking business involves proactive networking, marketing, and understanding where your potential clients might be. Here are several strategies to attract more customers:

Networking Events: Attend industry-related networking events, seminars, and trade shows. They can be a great way to meet potential customers as well as partners.

Online Directories and Load Boards: Online freight and load boards can be useful. Some popular options include Truckstop.com, DAT Load Board, and Freightos. Customers needing freight services often use these platforms to find providers.

Use a Freight Broker: Freight brokers act as intermediaries between shippers and carriers. They can bring you new business, but they will take a commission.

Social Media & Online Marketing: Platforms such as LinkedIn, Facebook, Instagram, and Twitter can be useful to connect with potential clients. You can also use Google Ads and SEO to increase your online visibility to potential customers who are looking for trucking services.

Local Businesses: Reach out to local businesses that might need your services. Manufacturers, wholesalers, and companies with distribution needs are all potential customers.

Develop a Website: If you don't already have one, create a professional website outlining your services, rates, and contact information. Having a digital presence can greatly enhance your business visibility.

Referrals: Encourage your current clients to refer your trucking business to other potential customers. You can incentivize this process by offering a referral discount or another type of reward.

Cold Calling and Emailing: Identify potential clients, prepare a solid sales pitch, and reach out directly via phone or email.

Partnerships: Consider creating partnerships with other businesses that complement your trucking services. For instance, a partnership with a storage or warehouse company can be beneficial.

Each approach to running a trucking business has its own advantages and disadvantages. Here are some of the main pros and cons of having a dedicated route versus picking up loads on load boards:

Dedicated Routes

Consistent Work: With a dedicated route, you have a reliable and predictable schedule. You'll know in advance where you're going, when you need to be there, and what you're hauling.

Predictable Revenue: Having a consistent schedule also means you'll have consistent revenue. You'll know what you're earning each week or month, making it easier to plan your business finances

Established Relationships: Over time, you'll build relationships with the businesses along your route. These relationships can lead to more business and better working conditions.

Reduced Wear and Tear: With a dedicated route, you're often driving the same roads and conditions, which can help reduce wear and tear on your equipment.

Less Flexibility: With a dedicated route, your schedule is mostly fixed. You may have less time for other business opportunities or personal matters.

Risk of Dependency: If your dedicated client's business goes down or they decide to change providers, it can significantly impact your income.

Potential for Lower Pay: Depending on the agreement, dedicated routes can sometimes pay less per mile than what you could get from a high-demand load on a load board.

Load Boards

Flexibility: Load boards offer the flexibility to choose your loads and routes. You can decide when to work, where to go, and what to haul.

Potential for Higher Pay: Some loads, especially urgent or last-minute ones, can pay very well. If you're in the right place at the right time, you can earn more than you might on a dedicated route.

Variety: Using load boards provides a variety of work. You're not limited to the same route or cargo, which can make your work more interesting.

Inconsistent Work and Pay: Load boards can be unpredictable. Some days, you might find lots of high-paying loads; other days, there might be very little work available.

Competition: Load boards are open to all truckers, which means you're competing with everyone else for the best loads.

Lack of Personal Relationships: Load boards often don't give you the opportunity to build strong relationships with shippers, which might affect the quality of your working conditions and business opportunities.

Broker Fees: Many load boards work through brokers, who take a commission on the load. This can reduce your overall earnings.

It's worth noting that many trucking businesses use a combination of dedicated routes and load boards to balance out the pros and cons of each approach. This hybrid model can provide both consistency and flexibility.

Should I lease or buy my semi-truck? 

Choosing whether to buy or lease a semi-truck for your trucking business is a significant decision that can have long-term impacts on your business's financial health and flexibility. Here are some pros and cons of each option:

Buying a Semi-Truck

Ownership: Once you've paid off the truck, it's yours. You can modify it to suit your needs and sell it when you want to upgrade or exit the business.

No Mileage Restrictions: Unlike with leasing, there are no penalties for high mileage when you own your truck.

Possible Cost Savings: Depending on the terms of the purchase and the life of the truck, it may be more cost-effective in the long run to buy a truck outright.

High Upfront Costs: Buying a semi-truck requires a significant initial investment, which might be challenging for some businesses, particularly start-ups.

Maintenance and Repair Costs: As the owner, you're responsible for all maintenance and repair costs. These costs can be unpredictable and expensive.

Depreciation: Trucks depreciate over time. When you decide to sell, you might not recoup much of your initial investment, particularly if the truck has high mileage or is in less than excellent condition.

Leasing a Semi-Truck

Lower Initial Costs: Leasing a truck usually requires a smaller initial investment compared to buying.

Flexibility: Leasing can offer more flexibility. You can upgrade to newer models more frequently, and you're not tied down to a long-term commitment if your business needs change.

Less Maintenance Responsibility: Depending on your lease agreement, some or all maintenance and repairs might be covered by the leasing company, reducing unexpected costs and downtime.

No Equity: When you lease, you're essentially renting. You're not building equity in the truck, and at the end of the lease, you don't own anything.

Mileage Restrictions: Leasing contracts often have mileage limits. If you exceed these limits, you could end up paying significant penalties.

Lack of Customization: When you lease, there may be restrictions on how much you can modify or customize the truck.

Potential for Higher Long-Term Costs: Over the long term, the total cost of leasing can end up being more than the cost of buying a truck outright.

When deciding between buying or leasing, it's important to consider the specific needs and financial situation of your business. You should factor in your cash flow, the amount of driving you expect to do, the importance of owning your truck, and the impact of potential repairs and maintenance. Consulting with a financial advisor can be very beneficial in making this decision.

How to Create Financial Projections for a Trucking Business Plan

Just like in any industry, the trucking business has its unique factors that impact financial projections, such as fuel costs, maintenance expenses, and client contracts. Utilizing a trucking financial projection template can simplify the process and enhance your confidence. Creating accurate financial projections goes beyond showcasing your trucking company's ability to cover expenses; it's about illustrating the financial roadmap that leads to profitability and the realization of your transportation goals. To develop precise projections, consider the following key steps:

• Estimate startup costs for your trucking business, including vehicle acquisition or leasing, insurance, licenses, and permits
• Forecast revenue based on projected client contracts, rates per mile, and anticipated volume of shipments.
• Project variable driving costs like fuel, vehicle maintenance, repair expenses, as well as driver pay
• Estimate operating expenses like insurance premiums, permits and licenses renewal fees, tolls, salaried employees, and administrative costs.
• Calculate the capital needed to open and operate your trucking business, covering initial expenses and providing working capital for sustained operations.

While financial projections are a critical component of your trucking business plan, seek guidance from experienced professionals in the industry to refine your projections. Adapt your plan based on real-world insights, leverage industry resources, and stay informed about market trends and regulatory changes to ensure your financial projections align with your goals and set the stage for a successful trucking venture.

Example Trucking Business Plan

Below you will find the text of our example trucking business plan. You can also download a Google Doc version of this trucking business plan template here , which allows you to modify it and personalize it to your own needs. You can also follow along in this video walkthrough, designed to help you customize the business plan to suit your specific trucking business model.

Table of Contents

I. executive summary.

The name of our bar and grill is "Cheers & Grub". Cheers & Grub is a casual dining establishment that specializes in American-style cuisine with a focus on juicy burgers, delicious wings, and refreshing beers on tap. Our target market is young professionals and families in the downtown area who are looking for a casual and relaxed atmosphere to enjoy good food and drinks.

We aim to differentiate ourselves from our competitors by offering a unique and enjoyable dining experience. Our menu will feature a variety of classic American dishes, made with fresh and locally-sourced ingredients. Our bar will offer a wide selection of domestic and craft beers, as well as a variety of specialty cocktails. We will also host weekly events such as trivia nights and live music performances, to keep our customers engaged and entertained.

Our projected startup costs are $500,000, which includes the cost of leasehold improvements, equipment, and operating capital. Our projected first-year sales are $1.2 million, with a net profit margin of 7%. We anticipate steady growth in sales and profits over the next five years.

II. Business Concept

Cheers & Grub is a casual dining establishment that offers a relaxed and friendly atmosphere, combined with great food and drinks. Our menu will feature classic American dishes, such as burgers, wings, sandwiches, and salads, made with fresh and locally-sourced ingredients. Our bar will offer a variety of domestic and craft beers, as well as a selection of specialty cocktails.

The ambiance of our establishment will be modern and comfortable, with a touch of vintage charm. We will feature a spacious dining area, a full-service bar, and a cozy lounge area for customers to relax and enjoy live music performances. Our target market is young professionals and families in the downtown area who are looking for a casual and relaxed atmosphere to enjoy good food and drinks.

III. Market Analysis

The restaurant industry has been growing steadily in recent years, with an estimated market size of $899 billion in 2020. The demand for casual dining establishments like Cheers & Grub is particularly high, as consumers seek out convenient and affordable options for their dining needs. Our target market consists of young professionals and families in the downtown area who are looking for a casual and relaxed atmosphere to enjoy good food and drinks.

In terms of competition, there are several established bar and grill establishments in the downtown area. However, we believe that we can differentiate ourselves by offering a unique and enjoyable dining experience, made with fresh and locally-sourced ingredients. Our bar will also offer a wide selection of domestic and craft beers, as well as a variety of specialty cocktails, to appeal to a wider range of customers.

IV. Competition Analysis

The main competition in the downtown area consists of established bar and grill establishments, such as "The Local" and "Grill Master". The Local is known for its casual atmosphere and selection of domestic beers, while Grill Master is known for its specialty cocktails and live music performances.

We believe that we can differentiate ourselves from our competitors by offering a unique and enjoyable dining experience. Our menu will feature a variety of classic American dishes, made with fresh and locally-sourced ingredients, and our bar will offer a wide selection of domestic and craft beers, as well as a variety of specialty cocktails. In addition, we will host weekly events such as trivia nights and live music performances, to keep our customers engaged and entertained.

V. Marketing Strategy

Our marketing strategy will focus on reaching our target market through a variety of channels, including online advertising, social media, and local promotions. We will also leverage our unique selling points, such as our fresh and locally-sourced ingredients, our selection of domestic and craft beers, and our weekly events, to attract and retain customers.

Online Advertising: We will utilize social media platforms, such as Facebook and Instagram, to reach our target audience. This will include paid advertising, such as sponsored posts and ads, as well as organic content, such as pictures and videos of our menu items and events.

Social Media: We will create a strong presence on social media by regularly posting pictures, videos, and updates about our menu items, events, and promotions. This will help to engage our followers and build a loyal customer base.

Local Promotions: We will participate in local events and promotions, such as food festivals and charity events, to increase visibility and build brand awareness. We will also offer special deals and promotions, such as happy hour discounts and loyalty programs, to incentivize customers to visit Cheers & Grub.

VI. Menu and Kitchen Operations

Our menu will feature a variety of classic American dishes, made with fresh and locally-sourced ingredients. This includes juicy burgers, delicious wings, sandwiches, and salads. Our bar will offer a wide selection of domestic and craft beers, as well as a variety of specialty cocktails.

In terms of kitchen operations, we will have a fully-equipped kitchen. Our kitchen staff will be trained in food safety protocols, and we will have strict sanitation procedures in place to ensure the safety and quality of our food.

VII. Service and Hospitality

At Cheers & Grub, we will strive to provide exceptional service and hospitality to our customers. Our staff will be trained in customer service and will be equipped with the necessary skills to provide a welcoming and friendly atmosphere.

Our dining area will feature table service, while our bar will offer full-service bar service, including the preparation of specialty cocktails. We will also have a lounge area for customers to relax and enjoy live music performances.

VIII. Financial Plan

Our projected startup costs are $350,000, which includes the cost of leasehold improvements, equipment, and operating capital. Our projected first-year sales are $1 million, with a net profit margin of 26%. We anticipate steady growth in sales and profits over the next five years, with a focus on expanding our menu offerings and hosting more events to attract and retain customers.

All of the unique financial projections you see below were generated using ProjectionHub’s Trucking financial projection template . Use PH20BP to enjoy a 20% discount on the template. 

Startup Costs:

Projected Financial Summary:

Annual Sales, Gross Profit and Net Profit:

Key Financial Ratios:

Watch how to create financial projections for your very own bar and grill:

Income Statement:

Balance Sheet:

Cash Flow Statement:

IX. Organizational Structure

Cheers & Grub will be owned and operated by [Name], an experienced restaurateur with a passion for good food and drinks. [Name] will also serve as the manager, responsible for day-to-day operations, including menu development, kitchen operations, and staffing.

In terms of staffing, we will have a team of highly-skilled and trained employees, including a head chef, kitchen staff, servers, and bartenders. We will also have a human resources manager to handle employee relations and benefits.

X. Conclusion

In conclusion, Cheers & Grub is a casual dining establishment that offers a relaxed and friendly atmosphere, combined with great food and drinks. With a focus on fresh and locally-sourced ingredients, a wide selection of domestic and craft beers, and weekly events, we believe that we have the necessary elements to succeed in the competitive restaurant industry. Our financial projections are positive, and we are confident in our ability to achieve steady growth and profitability in the coming years.

Trucking Business Plan FAQs

How do i start a trucking business.

To start a trucking business, you'll need to obtain the appropriate commercial driver's license (CDL), register your business, secure necessary permits and licenses, acquire or lease trucks, establish relationships with clients or freight brokers, and ensure compliance with safety regulations.

How can I find freight and clients for my trucking business?

To find freight and clients, consider partnering with freight brokers or load boards, networking within the industry, attending trade shows or logistics events, leveraging online freight marketplaces, and building relationships with shippers or manufacturers.

What types of insurance do I need for my trucking business?

Insurance coverage for a trucking business may include primary liability insurance, cargo insurance, physical damage insurance for your vehicles, and general liability insurance. Consult with an insurance professional to determine the specific coverage you need.

How can I optimize fuel efficiency in my trucking operations?

To optimize fuel efficiency, consider maintaining regular truck maintenance, training drivers on fuel-efficient driving techniques, investing in aerodynamic equipment for trucks, monitoring tire pressure, using GPS technology to plan efficient routes, and adopting technologies that help optimize fuel usage.

What are the compliance requirements for the trucking industry?

Compliance requirements for the trucking industry include adhering to hours-of-service regulations, maintaining accurate records and logs, conducting regular vehicle inspections, following weight and size restrictions, and complying with licensing and registration requirements.

About the Author

Adam is the Co-founder of ProjectionHub which helps entrepreneurs create financial projections for potential investors, lenders and internal business planning. Since 2012, over 50,000 entrepreneurs from around the world have used ProjectionHub to help create financial projections.

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