Thinking about opening a commodity futures brokers business? We tell you what you need to know to get started.
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Best Practices: Business Plans for Commodity Futures Brokers Businesses
In a startup commodity futures brokers business, there is no substitute for a high quality business plan. The effort you invest in the creation of your plan now will pay off later in lender responsiveness, investor attention and strategic confidence.
Business plans address a wide range of issues, including startup financials. The financial chapter of your business plan is one of the first places investors and lenders look, so it needs to contain forecasts and budgets that are rooted in business realities rather than your personal best case scenario.
As a result, we strongly recommend educating yourself in business plan financial basics before finalizing your business plan's financial chapter.
Look Over Competitors
Long before you open a commodity futures brokers business in your area, it's a good idea to determine what the competition looks like. Try our link below to generate a list of competitors nearby. Simply enter your city, state and zip code to get a list of commodity futures brokers businesses in your town.
Before you open up shop, make sure you know what you will offer to your customers that provides a significant advantage over your competition's offering.
Learning More About the Industry
After you've evaluated your local competitors, it's a smart move to talk to somebody who is already in the business. It's very unlikely that the local competition will talk to you. What's in it for them?
But, a person who owns a commodity futures brokers business on the other side of the country may be more than happy to give you a few tips, once they realize that you are not going to directly compete with them in their community. In that case, the business owner may be more than happy to discuss the industry with you. Our estimate is that you may have to contact many business owners to find one who is willing to share his wisdom with you.
Do you know how to find a commodity futures brokers business founder on the other side of the country to talk to?
Easy. Find them using our link below and start calling until you are successful.
Commodity Futures Brokers Business Acquisitions: Financial Considerations
Startup commodity futures brokers businesses carry a host of financial risks and concerns. Without an operational history, it's hard to predict how your startup will actually perform in the marketplace.
Financial risk management requires you to at least consider the possibility of setting your startup plans aside to explore acquisition opportunities. Many entrepreneurs buy an existing business for the sole purpose of tapping into the financial benefits of an established customer base.
Based on the acquisition target's financial records, you should be able to piece together a realistic forecast of your new company's financial picture for the first year and beyond. If you need assistance, we suggest talking to an accountant or professional business planning consultant.
Don't Rule Out Franchising
The probabilities on your achieving your top business goals increase if you decide to franchise rather than going it alone.
Before starting a commodity futures brokers business, you would be wise to assess whether franchising might alleviate your startup process.
The link below gives you access to our franchise directory so you can see if there's a franchise opportunity for you. You might even find something that points you in a completely different direction.
These additional resources regarding starting a business may be of interest to you.
If you currently own a commodity futures brokers business, these resources will come in handy:
If you sell to commodity futures brokers businesses, this isn't the right place for you. These resources are more appropriate for you:
If you are still exploring all of your options, please browse our directory of guides below.