business plan for trades

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 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

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?

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

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Trading Business Plan

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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

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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

MAR.12, 2024

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:

• Test and verify the quality and reliability of the company’s platform and services before launching and after updating
• Document and report any issues, errors, or incidents that occur on the company’s platform or services
• Resolve any customer complaints or disputes in a timely and fair manner
• Maintain a record of the company’s operations activities and performance

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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How To Start Your Trade Business

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Trade Business Mastery

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Starting a trade business can be an exciting and rewarding venture, brimming with the potential for personal growth and financial success. With the right approach, strategic planning, and dedication, it can evolve into a thriving and profitable enterprise.

This comprehensive guide is designed to steer you through the intricate process of launching your trade business, from the initial stage of selecting a niche that aligns with your interests and expertise, to effectively setting up your operations and making your mark in the market.

Whether you’re contemplating a career as an electrician, plumber, construction expert, or welder, this guide will provide you with the essential steps and insights to turn your entrepreneurial dreams into reality, ensuring a smooth transition from concept to successful business launch.

Choosing the Right Trade for You

Before diving into the business world, it’s crucial to select a trade that aligns with your skills and interests. While most blue-collar workers may already have a profession before considering opening their own business, there are also individuals interested in joining the blue-collar industry who aren’t sure where to start.

Are you hands-on and enjoy fixing things? Perhaps becoming an electrician or plumber might be your calling. If you prefer constructing and building, then a career in construction or welding might be more suitable. Consider market demand and potential profitability to ensure your chosen trade offers sustainable opportunities.

Here are the key steps to choosing a trade:

• Assessing your skills and interests
• Popular trade businesses: electrician, welder, construction, plumbing
• Market demand and potential profitability

After pinpointing the trade that best suits your skills and interests, or if you’re already seasoned in a trade, the exciting journey of launching your own business awaits.

A Step-by-Step Guide to Starting Your Trade Business

Embarking on your entrepreneurial journey in the trade industry begins with developing a solid plan. Crafting a comprehensive business plan that outlines your objectives, market analysis, and financial projections is crucial for laying the foundation of a successful trade business . Additionally, deciding on the legal structure of your business—be it a sole proprietorship, partnership, or LLC—will significantly impact your taxes, liability, and operational framework. It’s also essential to choose a name that not only reflects your brand’s identity but is also memorable and resonates with your target audience.

The initial steps to launching a blue-collar business include:

• Crafting a business plan : Detailing your objectives, market analysis, and financial projections.
• Deciding on the legal structure of your business : Options include sole proprietorship, partnership, LLC.
• Naming your business : Consider tips and factors that make your name stand out and be memorable.

With a foundational understanding of your business plan and a name for your company in place, we’re ready to dive into the detailed step-by-step guide on starting your trade business.

Getting the Required Licenses and Permits

Compliance with local laws and regulations is non-negotiable for your trade business. Before you can officially open your doors, you must navigate the maze of legal requirements, identifying and securing the necessary licenses and permits specific to your trade. This step is not just about meeting legal standards; it’s about laying a foundation for your business’s integrity and reliability. Additionally, investing in the right insurance coverage is essential to safeguard your enterprise against liability and unexpected challenges, thereby securing its long-term stability and growth.

To ensure your business operates within the legal framework, consider the following critical steps:

• Identifying necessary licenses for your trade : Research and understand the specific licenses required for your trade to avoid legal complications and ensure smooth operations.
• Process of obtaining permits and registrations : Familiarize yourself with the procedures for obtaining the necessary permits and registrations, which can vary greatly depending on your location and the nature of your trade.
• Importance of insurance for liability and protection : Obtain appropriate insurance to protect your business from potential liabilities and risks, ensuring peace of mind and a stable operational future.

Setting Up Your Workspace and Tools

The physical foundation of your trade business lies in an optimal workspace and the right toolkit. Whether you choose to work from a home office, lease a commercial space, or operate a mobile service, the effectiveness of your workspace directly influences your business efficiency and customer satisfaction. An essential part of this setup is equipping yourself with the right tools and technology that are fundamental to the services you offer. Moreover, effective inventory management and a reliable network of suppliers are crucial to ensure you always have the necessary materials and equipment on hand.

Consider the following aspects to optimize your workspace and toolset:

• Choosing a location : Decide on a workspace that best fits your business model, whether it’s a home office for administrative tasks, a leased space for operations, or a mobile setup for flexible service delivery.
• Essential tools and equipment for your trade : Invest in high-quality, reliable tools and equipment that will allow you to perform your work efficiently and professionally.
• Managing inventory and suppliers : Develop a systematic approach to inventory management and cultivate strong relationships with suppliers to ensure you have a steady supply of necessary materials and components.

A well-organized workspace and the right tools not only streamline your operations but also reflect your business’s professionalism and commitment to quality service.

Small Warehouse Space for Blue Collar Industries

Small warehouse spaces are incredibly beneficial for blue-collar businesses, offering the flexibility to scale operations, manage inventory efficiently, and reduce overhead costs associated with larger commercial spaces. These compact warehouses provide a practical solution for storing tools, materials, and equipment, while also allowing room for small-scale production or assembly activities. WareSpace stands out as a prime option in this sector, offering small warehouse spaces with 24/7 security , onsite management, and inclusive pricing, making it an ideal choice for businesses looking to optimize their operational efficiency and cost-effectiveness .

For more details on how WareSpace can benefit your business, book a tour today !

Financing Your Business

Securing adequate funding and managing your finances effectively are cornerstone elements in the blueprint of your trade business. Navigating through the myriad of financing options, from loans and grants to tapping into personal savings, is crucial to covering startup costs and fueling your business’s initial growth phase. An in-depth understanding of these financial avenues, along with meticulous budgeting, will pave the way for a stable and prosperous business journey.

To ensure financial readiness for your business venture, focus on these fundamental areas:

• Overview of funding options : Explore various financing routes such as bank loans, government grants, or personal savings to determine which option best aligns with your business needs and goals.
• Budgeting for startup costs : Develop a comprehensive budget that accounts for all initial expenses, from equipment purchases to marketing investments, ensuring you have a realistic financial roadmap to follow.
• Financial management basics : Establish strong financial management practices from the outset, including record-keeping, cash flow monitoring, and financial forecasting to maintain control over your business’s economic health.

A strategic approach to financing will not only kickstart your business but also sustain its growth and development.

Building Your Brand and Online Presence

In the digital age, cultivating a robust brand and establishing a compelling online presence is indispensable for your trade business’s market visibility and customer engagement. A distinctive logo, cohesive branding materials, and a professional website form the core of your brand identity, making a lasting impression on potential clients. Furthermore, active and strategic social media engagement is essential to connect with your audience, build relationships, and promote your services effectively.

To effectively build your brand and online presence, consider these critical steps:

• Creating a logo and branding materials : Design a logo and branding materials that reflect your business values and resonate with your target audience, fostering brand recognition and loyalty.
• Developing a professional website : Launch a website that is not only visually appealing but also user-friendly, informative, and optimized for search engines, serving as a digital storefront for your business.
• Utilizing social media for marketing and engagement : Develop a social media strategy that enhances your online visibility, engages with your audience, and promotes your services, leveraging the power of digital platforms to grow your business.

A well-crafted brand and dynamic online presence are vital to your business’s success, enabling you to stand out in the competitive trade industry and connect with customers both locally and globally.

Tour a small warehouse space TODAY!

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Launching Your Business

The launch of your trade business is a pivotal moment that sets the tone for its future trajectory. Meticulous planning and strategic execution are paramount to ensure a smooth kickoff and to establish a solid foundation for sustained growth. Having a comprehensive checklist for launch day minimizes the risk of unforeseen issues, while robust launch strategies enhance your market entry impact. Additionally, building a strong network within the trade industry can open doors to valuable partnerships, client leads, and growth opportunities.

To guarantee a successful business launch, prioritize the following actions:

• Preparing for launch day : Compile a detailed checklist to cover all necessary preparations and contingencies, ensuring everything is in place for a smooth start.
• Effective strategies for a successful launch : Develop and implement launch strategies that highlight your unique selling propositions, engage your target audience, and generate buzz in the market.
• Networking and building relationships in the trade industry : Invest time in networking activities to forge connections with industry peers, suppliers, and potential clients, laying the groundwork for a robust business ecosystem.

Launching your business with clear objectives and a strategic approach will not only facilitate a successful debut but also drive long-term prosperity in the competitive landscape of the trade industry.

Managing Your Operations

Effective daily management is crucial for the success of your trade business, encompassing everything from workforce development to quality assurance and customer relations. Hiring the right talent is the first step, requiring robust recruitment strategies and comprehensive training programs to ensure employees not only meet the necessary skill levels but also align with the company’s values and work culture.

Beyond personnel, implementing stringent quality control measures is essential to maintain service standards and product quality, with regular monitoring, audits, and customer feedback playing key roles in continuous improvement.

Operational efficiency is another pillar of successful business management. Streamlining processes through workflow analysis and technology integration can significantly enhance productivity and reduce costs. Equally important is establishing effective customer service protocols to handle inquiries and complaints promptly and professionally, thereby fostering customer satisfaction and loyalty.

By addressing these critical aspects of business management, you can ensure smooth operations and create a strong foundation for sustained growth and profitability in your blue collar business.

Growing Your Trade Business

As your business matures, exploring growth opportunities will be key to continued success. Whether it’s expanding services, entering new markets, or enhancing marketing efforts, these strategies will help scale your business and increase profitability.

Starting your trade business is a journey filled with opportunities and challenges. By following these steps and continually adapting to the market, you can build a successful and sustainable business in the trade industry. Whether you’re an aspiring electrician, plumber, construction expert, or welder, the path to entrepreneurial success is within reach.

Blog Info: Author – Laura Johnson Category – Trade Business Mastery

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Businessing Magazine

Entrepreneuring     Christina DeBusk    January 22, 2018     8 min read

How to Create a Successful Skilled Trades Business

According to the Bureau of Labor Statistics’ (BLS) Occupational Outlook Handbook , not only are jobs in skilled trade industries—which include any business centered around electricians, carpenters, welders, bricklayers, plasterers, plumbers, masons, or any other skilled trade—growing, many are growing at an “as fast as average” or “much faster than average” rate.

Case in point: the average job growth rate for all industries from 2016 to 2026 is seven percent according to the BLS. Yet, carpenter occupations are expected to increase at a rate of eight percent during that 10-year timeframe. Electrician jobs are slightly higher at nine percent, and jobs in masonry and plumbing are even better yet, with 12 and 16 percent increases expected respectively.

This is great news for individuals who are considering establishing businesses within these categories of skilled trades. But just giving your company a name and setting up shop isn’t enough.

Ideally, you want to create a business that helps you pay your bills, save for retirement, and enjoy life a bit too. How do you do that? Here are three factors to consider.

Write a Business Plan

I know, I know. This is probably the last thing you want to do, but, as the U.S. Small Business Administration (SBA) says, “Your business plan is the foundation of your business.” It tells you where you are, where you want to go, and, perhaps most importantly, what you need to do to get there.

The SBA shares that there are two basic types of business plans: traditional and lean startup. The traditional plan is often preferred by individuals who are detail-focused and like to know exactly what steps they need to take.

This type of plan contains these eight sections:

• Executive Summary – a summary of your company and how it will be successful
• Company Description – a description of what problem or problems your business solves
• Market Analysis – an analysis of how you compare to other businesses within your market as well as industry-wide market trends
• Business Organization – the internal structure of your business and the hierarchy of its employees
• Products and Services – a list of the products and services you intend to sell and share how they will make your customers’ lives better, happier, easier, etc.
• Marketing and Sales –how you plan to market your goods and services to continue to increase your sales
• Funding – how much money you will need to start and grow your business, as well as which financial resources you intend to pursue
• Financial Projections – your business’s financial outlook for the next five years

If your business is “relatively simple” or you’re in a hurry to get it going, the SBA says that a lean startup business plan may be enough. This type of plan requires that you simply identify the key partnerships, activities, and resources needed to get your business going.

A lean plan also involves identifying who your customer base is and how they’ll interact with your business. It identifies your competitive advantage, states how you’ll handle initial and ongoing costs, and says what your revenue streams will look like.

Although both of these options can take a little bit of time to prepare, going through the process of creating a business plan helps you develop a clearer image of the company you want to create. It also forces you to look at it from many different viewpoints, making it easier to anticipate where your hardships will likely be and what you need to focus on to set yourself apart from your competitors.

Some small business owners tackle this planning task themselves, whereas others seek assistance from their employees, giving them a “wider view” of all of the issues that need to be addressed for greater levels of success. And if you’re really stuck, you may even consider hiring a professional writer to help you create a solid business plan. Because it is “the foundation of your business,” this could definitely be money that is well spent.

Create a Winning Hiring Strategy

Recent headlines indicate that this factor isn’t always easy. For instance, on December 4 th , 2017, CBS New York published a piece titled “ Nationwide Skilled Trade Shortage Creating Critical Need for Plumbers on Long Island .” Just a few months prior, on March 11 th of 2017, The Daily News in Memphis Tennessee reported a “ Shortage of Skilled Workers Creating a Crisis in Construction Industry .” Does this mean that, as a trades-based business owner, you’re going to struggle to find quality employees? One survey says yes.

In October of 2016, the ManpowerGroup revealed the results of their 2016/2017 U.S. Talent Shortage Survey , which included that 46 percent of the U.S.-based employers questioned said that they find it difficult to fill open positions. The absolute hardest ones to fill? Those related to skilled trades. Andrew Marshall, a business analyst, business expert and founder of the Biznovice.com , argues that in the end, the business plan should show how much money you need to start the project, when it will be self-sufficient, in what time it will be possible to return the invested funds and what profit can be expected.

Sadly, this isn’t new news. The ManpowerGroup goes on to explain that skilled trades have consistently held the top slot for hardest-to-fill jobs in the U.S. for seven consecutive years. Globally, it’s been number one five years in a row. What makes skilled trade workers so elusive that companies in this field are struggling to hire the number of people they need to fill their open positions?

Twenty-three percent of survey respondents indicated that the problem with finding enough trades workers was “a lack of available candidates.” Some expanded on this further by citing that lack of experience (18 percent) and lack of technical competencies (26 percent) were also to blame, as was the applicant wanting higher pay than they provided (16 percent).

In some cases (12 percent to be exact), it was the lack of soft skills that prevented the skilled trades business from finding suitable employees. Job search site Monster explains that soft skills are skills that are associated with communication, teamwork, adaptability, problem solving, critical observation, conflict resolution, and leadership—skills that don’t require a person’s handiwork, but are more centered around their ability to work well with others.

How do you overcome these hiring issues? ManpowerGroup says that many skilled trades businesses reported that they are implementing a variety of strategies to help them hire the best workers possible for their open positions. These include:

• Recruiting outside the talent pool (44 percent);
• Exploring alternative sourcing strategies (27 percent);
• Offering higher salary packages (22 percent) and/or more benefits (19 percent);
• Changing work models (17 percent); and
• Outsourcing the work (12 percent).

If you’re like I am, you’re looking at this list and thinking, “ Well, these are all great ideas, but most of them take money to implement (money that I really don’t have), so what am I supposed to do now? ” Fortunately, there are some agencies that can potentially help.

For instance, if your business is located within the State of Michigan, there’s something called the Skilled Trades Training Fund . This is a fund created to provide grants for business owners in these fields, to give them a hand financially when it comes to “training, developing and retaining current employees and individuals to be hired.”

From 2014 to 2017, this particular grant was awarded to 1,422 businesses, 712 of which have fewer than 100 employees on staff, qualifying them as small businesses. Furthermore, the average amount of the award was just under $34,000.

No matter where your business is located, check to see what types of financial resources are available in your area to potentially help offset these types of expenses. Research local, state, and national organizations and agencies to identify whether any of them provide grants or any other financial assistance that can help you create a top-notch staff.

Embrace Technology

When asked what changes have taken place within skilled trade industries within the last few years that can impact a company’s success, Chirag Ahuja, Head of Growth at Tradify —a company that offers software designed to help trades-based business owners schedule and manage jobs, quote projects, send invoices, and more—explains that “technology has had a massive impact on the trade industries in the last decade.”

Part of this arises from the way society as a whole has changed. “Customers are used to online shopping and instant service,” says Ahuja. “They want to see a quote the day they ask for it or they’ll have already found someone else. They want visibility and accountability.”

While some technology has made certain jobs or tasks no longer necessary, or obsolete, Ahuja shares that there is also a positive side to using this class of innovations within the trades. When trades professionals “adapt and embrace it, technology is improving business, enabling them to work faster and provide better results for clients,” says Ahuja.

Examples can be found across a variety of skilled trades, says Ahuja. For instance, locksmiths are using Amazon Key (a service that enables people to receive packages or let others into their homes without having to give them a key) and more and more builders are working with sustainable and recycled materials.

“One of our customers – a solar electrical company in Australia – uses drones to inspect solar panels from the air,” says Ahuja, “saving them hundreds of man hours.” That why Tradify takes an approach of “embracing technology to help them do their job better, build a reputation for producing high quality work, and – most of all – work hard to give their customers a professional, efficient service,” says Ahuja.

Currently, Tradify caters specifically to electricians, plumbers, and those with businesses within building, construction, and HVAC (heating, ventilation, and air conditioning). Regardless of what industry you’re in, it’s helpful to find technology created for your specific field, as it is more likely to have the features that you want, without a lot of the ones that you’d likely never use.

A Final Word on the Future of Skilled Trades

“No matter how advanced we get, we still need people who can unblock a toilet, install a light fitting, and build a house,” says Ahuja, adding that, “the more we live in a computer-driven world, the more prized those practical skills become.”

“Of course, some trades die out,” says Ahuja, as “there aren’t many coopers or blacksmiths left in the world. But new trades crop up.” Additionally, “because of the shortages and the fact that a university education doesn’t guarantee you a job any more, more and more schools and institutions are pushing the trades as a viable career choice for youth who have a practical mindset,” says Ahuja. “Trades are definitely here to stay.”

Christina DeBusk

Freelance writer, author, and small business consultant committed to helping entrepreneurs achieve higher levels of success.

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• How to start a trade business

Starting a trade business is an exciting opportunity to work for yourself and take complete control of the trade work you complete every day.

If you’re thinking about how to start a trade business and what you should do first, our guide will lead you through every step of the process and help you understand what you need to do and why.

Let’s get the basics out of the way first:

• What is a trade business?

The fact is that a modern trade business can be whatever you want it to be. It could be a one-person show, a small business with multiple types of tradesmen who work under you, or a specialist operation that bids on government contracts and uses highly skilled tradespeople to get the job done.  

If you are starting a trade business and want to know what form one commonly takes, you’ll find that many trade businesses follow four main structures:

• Sole trader
• Partnership
• Family Trust

Types of tradesmen

To get a decent idea of what type of tradesman you could be, think about who you’d need to build a house:  

Construction is a constant part of our lives, and so is the need for builders. Builders perform a vast range of tasks in their day-to-day work, and it’s a lot easier to research specific roles in the industry rather than read a list of them here. But for a brief synopsis, you’ll most likely see builders fall into either one or multiple of three industries:

• Residential

Electrician

Perhaps one of the most common types of tradies in business and for a good reason. Everything in our daily lives runs on electricity, and making sure that power goes where it needs to is the everyday life of an electrician. Skills in danger management and electrical engineering can make you one of the highest-paid types of tradesmen around, so definitely explore your options.  

Plumbers specialise in everything related to pipes, fittings and water supply. Many consider plumbing a dirty job, but constant advances in the field of digital plumbing installation, maintenance and repair have moved plumbers away from the pipes and closer to a diagnostic computer in recent years.

Doors, floors, furniture and walls, if it involves cutting, shaping or installing, you’ll find a skilled carpenter at work. Take note of the fact that many carpenters work with various materials other than just wood.

Don’t let anyone tell you that bricklaying is an easy job. Building something made of hundreds of different pieces and making it run straight and true is an art, and the best bricklayers make it look easy.

Painting and decorating is a trade that’s always in demand. Homeowners look at the paint on the walls every day, and if they want those walls looking their best, they call a tradesman who can paint top to bottom with no mistakes.

If you aren’t afraid of heights, you’ll be at home as a roofer, the job which gives you more fresh air than any other type of tradesman. Laying roofing materials and waterproofing buildings is a roofing professional’s bread and butter work.

A good plasterer has an eye for detail and can create a perfectly finished wall with no blemishes. Painters rely on plasterers’ work to give them a smooth surface to paint over, and great plasterers can always demand top dollar for their work.

You can’t have a house without a great garden and outdoor living space to compliment it. Landscapers design and install just about everything related to outdoor activities infrastructure. Working as a landscaper could see you in an urban environment or the middle of nowhere; it’s just a matter of how you choose to specialise. 

What makes a trades business successful?  

Setting big goals

Success comes in many ways and at many different times in the trade industry, so let’s talk about big goals. When you ask a tradesman what helped them measure their ongoing success, they’ll often list off the large milestones they set for themselves as they grew their business.  

Common goals include:

• Creating a profitable business structure
• Quality of life
• Continuous growth
• Getting off the tools

Measuring your success in between

Sometimes it can be hard to know if your trades business is a success at a glance, but there are lots of ways to dig deeper and check.

See how you’re doing by:

• Generating feedback and reviews
• Getting to know your financials better
• Seeing how you compare with industry developments and trade business profit averages
• Having a good night’s sleep – Seriously, if your trade business is running like clockwork, you should be resting easy, and if you aren’t, maybe there’s something you’ve been meaning to do but put off until now?

Two examples of successful trades business in Australia

New Plumbing Solutions (NPS)

With a 70 strong team and a great business model, New Plumbing Solutions is a fantastic example of a successful Australian trades business. Read more about them in this case study .

Online Air & Solar

No strangers to hard work, the 20+ team at Online Air & Solar have carved a niche as a successful Australian trades business working in domestic and commercial environments. Read more about them in this case study .

• Creating an effective trade business plan

Industry overview

You can always get to know your industry a little bit better, and there’s no better time than when you are just starting a trade business. Each trade business sector is unique , and you will need to thoroughly research the specifics of the one you want to get a start in.

Here are five simple steps to write an industry overview:

• Step 1:  Give a brief overview of the industry
• Step 2:  Review trends and growth patterns within the industry.
• Step 3:  Identify factors that influence the industry.
• Step 4:  Use data gathered through research to refine your overview.
• Step 5:   Describe what your business will do within the industry.

Vision statement

A vision statement is a document that states a businesses' current and future objectives. The idea behind a vision statement is to provide business structure through a set of underlying rules that its day-to-day and short-term running will follow. These goals and objectives should be achievable in the permitted time and regularly checked.

List services and prices

Creating a list of your services and prices for a trade business is about as straightforward as it sounds. Here’s a quick 5-point guide:  

• List all the products or services you have to offer.
• Ensure your list is one-to-one with your inventory list
• Decide on a price for each product or service and enter it into the list
• Group products and services into categories for ease of use.
• Check your list for any mistakes, additions or subtractions before using it.

You can easily create a service and price listing in Microsoft Excel; here’s a   nice clean template   you can download to make formatting your list easier.

Financial projections

We’ll start with what a financial projection is.

Simply put, a financial projection is an outline of what your business expects to happen in future. Having one helps you apply for bank loans and manage your money to get your new trade business off the ground.

Now how to write one

It’s quite a long process, and believe us when we say that paperwork like this is what will keep you up at night as a tradesman (literally). We promised you a ‘how to start a trade business’ guide, not a ‘how to write a financial projection’ guide, so   here’s a link   to a fantastic guide on how to create a financial projection. 

Sustainability and expansion strategy

Having a plan to break even and grow your business right out of the gates is very helpful, but it’s a formula you’ll likely develop along the way. A business sustainability plan helps you align your business to current financial, societal, and environmental best practices and the benefits of all three to help grow and expand your organisation.

Sales and marketing strategy

How you sell your products and services while marketing your tradie business will be unique depending on your business and your customer market. If you want to go the route of selling and marketing through your website,   we have a comprehensive article   you can use to get your site looking and working its best.

To create a marketing and sales plan, we recommend following these nine steps:

• Budget everything out
• Confirm your target audience
• Tailor your product and service descriptions to your audience
• Leverage what makes you different and better from competitors
• Organise your marketing campaigns
• Research online marketing and create a plan
• Document your sales process
• Document your marketing process
• Create ways to track your progress

Get your licences and permits  

Licences let government bodies and customers in the market know you’re the real deal and that they can trust the quality of service you provide. You’ll need to be fully qualified as a tradesman to operate a trade business if you intend to work alongside your employees or by yourself.

You’ll also need to register your trade business, get an ABN, and sort out all the relevant tax and financial documents before you can throw open the doors and start doing business.  

When you get that sorted, you’ll also need to get any industry permits or licenses required for safety or to comply with industry-specific laws.  

• How to promote & market your trade business

Know your competition

Understanding your competition is crucial to finding success as a trade business owner. 

Here’s what you need to know about your trade industry competitors as a group:

• Who are the major successful trade businesses in your area?
• How much of the customer pool do they take up?
• Are customers loyal to existing trade businesses, or would starting a new trade business give them a much-needed alternative?
• How are competitors bringing in new customers, and how are they keeping existing ones?
• How are they competing with each other?

Next, you need to understand four things about individual competing tradesmen in your area.

• What they’re doing better than you (and how you can improve).
• What business strategies and tactics work for them (and whether they might work for you).
• What mistakes they’ve made (so you can avoid them).
• What you’re doing better than them (so you can make the most of your strengths).

Gather this data, and you’ll have a clear view of your competitors’ strengths and weaknesses that you can use to ensure you start a trade business that can compete in its market.  

Execute a marketing plan based on your target market  

With your sales and marketing plan in hand, it’s time to get a campaign off the ground. You can hire outside help or manage it yourself, but make sure to do your research and know what you’re spending and where it’s going before you begin. You may think marketing and advertising come after you start a trade business, but you can have a website ready to launch and a marketing campaign in the works months before you open the doors of your new business.

Design logo, business cards and ads

Anything with your trade business name printed on it is marketing collateral. Come up with a design or hire an agency to create one for you, then get it stuck on everything from work uniforms to vehicles.

Customers prefer tradesmen in branded trucks and uniforms as it makes them feel confident in the professionalism of your business. Your branding also has a big impact on your marketing and can help you create a business identity all your own, so take the time to create something that makes your business unique.

Claim your Google Business listing

All you need is a google account, and you can claim the single most powerful piece of free online advertising for your tradie business. Google is a part of all our lives and having your business listed on the world’s biggest search engine makes it a lot easier for people to find you.

We have a very comprehensive guide on how to claim, set up and reap the financial benefits of Google My Business, and we recommend you read it step by step as you set up your listing.

Create an optimised website that draws in buyers.

We linked our comprehensive guide to using your website to attract customers earlier in this article, but   we’ll link it again   if you need it. We won’t waste time covering what is already in the article, but the main takeaway is this; If you set up a trade business, your website will eventually become one of your most powerful tools for bringing in and retaining customers.

Five trade business ideas and tips to help keep the ball rolling after you start a trade business

Use feedback and research to find new opportunities  

Your customers are more than just people who buy from you; they are precious sources of insight into how well your business meets their needs and where you should be aiming next.  

Use online reviews and in-person feedback to research your customer needs whenever you can, and you’ll find new opportunities to retain customers and bring in new ones before you know it.

Implement workflow/project management software

If there’s one thing we know about how to start a trade business, it’s that you need a proper digital system in your corner of the ring to compete in today’s market.

Job management software solutions like AroFlo help eliminate unnecessary paperwork and job handling, freeing you to focus on running a successful trade business rather than worrying about invoices and compliance forms.

You can still get a lot of mileage from simple job management software, so we recommend browsing your options if you find that AroFlo isn’t for you. The value in having software working behind the scenes in your business is that it eliminates a lot of employee busywork. This allows you to run a tighter ship and only have your teamwork on the business’s important parts.

Understand contracting and pitching

Contracts are the domain of tradesmen who have moved out of the initial phase of starting a trade business and are looking to lock in some serious long term financial stability. Government tenders are always on the go across a huge range of different trade skills. To get started, we recommend you check out the   tenders and contracts page   on the Australian Government Business website.

Pitching was once a crucial component of the contract tendering process, but as digital tendering took over from older methods, it has become less important in recent years. However, you should always know how to pitch, as it’s something you might have to do to get a deal inked if your trade business is one of two equally viable choices on paper. 

You need to explain why your business can do whatever needs to be done better and convince potential stakeholders that they can trust you to get the job done on time and within budget.

A small tip for digital pitching that many trade businesses miss is never sending generic correspondence to a tendering agency or government body. Always send documents and files that have been custom made for the tender in question. It makes all the difference when yours stands out amongst dozens of cookie-cutter tenders.

Identify new opportunities and growing industries 

We’ll spare you the long answer about marketing plans and industry analysis as you’ve already read about finding and conquering new opportunities throughout this ‘how to start a trade business’ guide.

We will say this: never stop looking for chances to upskill or jump into adjacent industries.

Some of the highest-paid tradies in Australia's trade industry are the ones who specialise heavily in their field or offer a comprehensive multi-trade service. Think of building and plumbing provided as a package deal. Or plastering and painting offered by the same tradesman. Customers will often pay more for the opportunity to roll two or more of the types of tradesmen they need to complete a job into one.  

Specialised tradesmen can make a great living by staying in their lane and becoming the best in the business at it. If your chosen field of expertise is a bit too niche, you may need to move to a location with more work or less competition. But if you can get over that, then there’s a whole world of specialist trade areas to explore when you’re done starting a trade business.

Get help when you need it

It doesn’t matter whether your trade business is a success or you’re still waiting for work to pick up; a little bit of help at the right time can make a huge difference to your future. There are numerous coaching, planning and financial streamlining services out there, and many of them are specialists in helping trade businesses thrive.

If you want to hear advice from other tradies rather than accountants, you can find lots of ex-tradies sharing their experience in the form of business mentoring. Our friends over at   Lifestyle Tradie   are a great example. They found success, and now they are sharing their knowledge with other trade business owners and helping them build stronger organisations and better professional skills.

That’s all there is to it. You’ve completed the how to start a trade business guide! Now it’s time to get out there and start a trade business that’s destined for success.

Signup to AroFlo by June 30 2022, and save 70% off our start-up costs.

• What makes a trade business successful?
• Two examples of successful trade businesses in Australia
• Getting your licensing and permits
• 5 tips for trade business success

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Our latest blogs, navigating seasonal slumps: strategies for year-round trade business success, harnessing remote work efficiency for tradies, workplace safety in trade businesses: a comprehensive guide, how to build a strong business plan for your trade business.

• 10 February, 2020
• Fayez Moussa

There’s nothing more exciting than taking charge of your career and starting your own trade business. You get control over the jobs you take, the people you work with, and the wages you’re paid. You’ve also likely worked as a tradie for years, so doing a great job and making clients happy should come easy.

However, mastering your trade doesn’t instantly guarantee business success. Much like new construction projects, you need to set a strong foundation for your business. Here’s what you have to do.

Formulate a detailed business plan

A carefully considered plan gives you a clear image of the company you want to establish. It even lets you anticipate challenges and determine what you need to meet your goals and outperform competitors. There are seven elements that must go into a business plan:

• Executive summary -a brief overview of your business plan, complete with general company details, mission statements, and services offered
• Summary of services – highlights the unique services you provide, their benefits to customers, the associated costs, and net revenue expected from a sale
• Market analysis – research on industry trends, customer demographics, and competitor performance
• Organisational structure – outlines the company’s internal framework, owner information, management team responsibilities, and description of departments
• Marketing and sales strategy – an explanation of how you’ll promote your business, acquire new clients, and increase sales
• Funding and projections – how much money you need to grow your business and a financial forecast for the next 5–10 years.

Keep in mind that you may need to hire trade business consultants for certain aspects of the plan. This is especially the case when it comes to finance and marketing. An expert perspective can help you set a reasonable budget and sustainably turn a profit with each job. Plus, they may have insights on the latest market trends, so you can update your service offerings and win more clients.

Understand your legal requirements

Tradies must have certain licenses and permits to run a business in Australia. A construction business, for example, needs a license for high-risk work and a building industry licence, among others. Note that licence and permit requirements will vary from state to state and the nature of your work. To find out which ones apply to you, go to the Australian Business Licence and Information Service (ABLIS) website.

In addition to licenses, you must have a clear grasp of the health and safety regulations governing your sector. Visit the Safe Work Australia website to ensure you’re up to date with the latest legal obligations.

Get the right tools

Never go to a job site without high-quality equipment. Evaluate your services and think about what tools you’ll need to do each job well. A universal toolbox should have a flat- and Phillips-head screwdriver, pliers, claw hammer, tape measure, level, torch, electric drill, and hacksaw. Also, take note of any special equipment requirements like refrigerant scales and bulldozers.

From there, consider your payment options. Universal tools are generally affordable enough that you can buy new ones off the rack. Expensive specialist tools, on the other hand, may need to be purchased secondhand or leased. If you’re a small business, take advantage of the instant asset write-off and claim a deduction for recently purchased equipment. Short-term loans are another option to finance your purchases, so there’s no excuse to be under-equipped for a job.

Insure your business

Regardless of your trade, it’s important you’re covered by the right insurance plans. For starters, you need public liability insurance to cover compensation for any bodily harm and property damage you may have caused to a third party. Workers’ compensation is required to pay for tradies who suffered a physical injury in the workplace. Other vital insurance plans include commercial motor, equipment, and income protection.

Develop a strong recruitment strategy

Skilled workers are the foundation of a successful business, but acquiring them can be a challenging task. One surefire way to find new talent is by posting job ads on popular recruitment sites like SEEK and Gumtree . You can also outsource work to subcontractors during busy periods to manage increased workloads.

Then, make sure your recruitment message resonates with potential workers. Does your company provide enough incentives and support to attract and retain skilled workers? Recent surveys found that boosting compensation, improving benefits, and providing training opportunities are keys to recruitment.

Streamline work with technology

Embracing advanced technology can set the tone for your company’s performance. For instance, cloud-based accounting platforms like Xero , QuickBooks , or MYOB Online make it easy to manage your books. Tradies can use these apps to generate and track invoices, offer various payment options, and create detailed expense reports.

The most important piece of tech every trade business must-have, however, is job management software like WorkBuddy. The platform is designed to help tradies schedule jobs, quote and bill projects, track expenses, and complete quality checks. It even has a centralised operational dashboard where you can monitor job progress and manage tasks. All this enables you to produce high-quality work and make clients happy.

Don’t underestimate the work that goes into setting up a trade business. It requires meticulous preparation, well-executed strategies, and first-rate tools. Install WorkBuddy today and build a foundation for your business that’s built to last. Contact us or book a free demo to learn more.

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Table of Contents

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.

Download the free ebook now

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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Analyzing Alpha

Setup a Trading Business: The Complete Guide

By Leo Smigel

Updated on October 13, 2023

Trading as a business involves trading stocks and other financial instruments under a legal business structure, such as a sole proprietor, partnership, or limited liability company (LLC).

Everyone wants to make money, and everyone wants to be free.

You can accomplish both if you’re a successful trader.

And you’re in luck because there’s one thing I know how to do exceptionally well – it’s trading as a business.

You might say, Leo, I don’t need to start a trading business – I’m a new trader. Well then, I’ve got a question: How many successful companies do you think started without a plan? Sure, there are some, but I would bet those with a sound plan faired better over the long run.

And trading is no different. Trading is most successful when it’s done most businesslike.

And for those who are already profitable and ready to go full-time, I’ve got some massive tax-saving tips for you, so stay tuned.

I’ve also sprinkled secrets about becoming a full-time trader that you’ll be hard-pressed to find elsewhere.

I will explain everything you need to know step by step and show you how to become a professional trader running your own successful trading company, whether you’re incorporated.

Before You Can Start Trading

Before creating any business, you need to start with a solid plan and understand where you fit in the market.

But before we jump into the nitty-gritty details of running your trading business, you need to answer five show-stopping questions.

1. What Is Your Why?

Why do you want to be a trader? Many traders start trading because they want to get rich.

Now, it’s possible to become rich trading; however, understand that if you’re not a profitable trader already, the chances of success are slim.

Most studies say that only 5% of traders become profitable. And according to the Small Business Association, this is in stark contrast to starting a business where 33% are still around after year ten.

In other words, if it’s money you’re after, it’s much easier to create an online business than to become a profitable trader.

And no matter how smart you are, trading will slap you around until you’re begging to quit.

You need more than the pursuit of money to keep you in this game.

You need an unwavering passion to play, and you need an advantage.

2. What’s Your Trading Edge?

A trading edge is an observation or approach that creates an advantage over the rest of the market players. Anything that can add a few points to the winning side of the equation builds an edge in your favor.

Most traders lose money in the financial markets because they lack an edge.

I’m also going to say something controversial here:

Risk management isn’t an edge – it’s just good trading – and I can prove it.

Let’s play the coin toss game. If you guess correctly, you get a dollar and lose a dollar if you don’t. You can play this game all day long and cut your losses short, but you’re never going to make a million dollars.

Why? Because you have no edge. The probabilities are not stacked in your favor.

You need an edge to make it full-time, and you need multiple to make it a career.

You need to be the casino – you need to have multiple edges that compound over time. Don’t be a gambler with the odds stacked against you.

So how do you find an edge?

Most edges come from a better understanding of market structure, faster execution speed, or better data and analysis.

For example, a market structure edge may be an exceptional ability to exploit the post-earnings announcement drift (PEAD) anomaly. Another may be the early identification of trends through sophisticated technical or data analysis.

You want to ensure you are on the right side of the stock market as much as you can.

And if you’re struggling to find an edge, I’ve got you covered.

I backtested Scot1and’s slingshot trading strategy at a high level to verify if it has an edge – which it does. If you’re not familiar with Scot1and, he’s a professional trader. He shares his trades publicly on Twitter and has multiple triple-digit years under his belt, with his highest being 305% and last year (2021) being 150%.

Scot1and wanted to find a way to get into solid stocks before the runup and invented the slingshot trading setup. That’s one of his many edges. And this setup can work for you, too, assuming it meshes with your market philosophy and psychological makeup – but more on that later.

Once you have successfully identified and defined your edge, or better yet, edges, it’s time to consider your risk tolerance.

3. What’s Your Risk Tolerance?

Risk tolerance refers to the degree of risk you’re able to take. And while there are multiple ways to define risk, we’ll consider volatility and drawdown for our purpose.

Since your comfort level with uncertainty determines risk tolerance, it can be challenging to be aware of your risk appetite until faced with a potential loss.

You should strive to gain a clear understanding of your risk appetite and your ability to stomach large swings in the value of your portfolio.

When traders trade above their risk tolerance levels, at best, they’ll lose sleep and make suboptimal decisions the next day, and at worst, they’ll sell out at the exact wrong time.

Risk tolerance is all about understanding yourself – a key characteristic you should possess as a flourishing trading business owner.

And let me tell you when you start a trading business, and it becomes your primary source of income, your risk appetite will change a lot – even for algorithmic traders.

Most traders’ greatest struggle in establishing a profitable trading business revolves around trading psychology.

Finding edges in the market isn’t difficult. I just showed you the slingshot strategy, which is a potential edge that you can incorporate into your trading.

What’s hard isn’t knowing what you should do; it’s doing what you should do – it’s trading like a business.

And risk tolerance is just one aspect of trading psychology.

Psychology And Trading

Trading psychology refers to the emotional aspects of an investor or trader’s decision-making process – it’s how emotions affect your trading, and trading affects your emotions.

There are some important considerations to make here.

Most traders fall into thinking they can achieve trading success with little thought of their psychological makeup.

Successfully aligning your trading strategy with your psychology implies you may need to give up on or change some of your values and beliefs.

For instance, do you value your need to be “right”?.

A trader who values being “right” is more likely to refuse to set a stop and take a slight percentage loss in case the trade goes haywire.

Do overnight moves keep you up at night?

Then perhaps day trading is a better style for you.

You need to find a trading style that suits your trading psychology and addresses your strengths and weaknesses.

This doesn’t mean a risk-averse person can’t adopt a swing-trading style. It also doesn’t mean that if you value being right, you’re perpetually wrong when following your stops.

It just means that traders need to understand why they’re embracing a trading approach and have safeguards against their deficiencies – often, you can flip a weakness on its head.

For example, let’s go back to someone struggling to stop out.

The first issue might be that they do not understand what they’re trading and why they’re trading it. If they’re trading specific mean reversion scenarios, they shouldn’t be using stops – position sizing is the key to risk management; however, let’s assume that the trader was a long-only swing trader.

If they’re a breakout trader not following their stops, likely, they don’t have a deep understanding of what a breakout is and how they work.

Now I could spend hours discussing breakouts, but for now, let’s understand two things:

• Roughly 70% of breakouts fail.
• Successful breakouts rarely retrace to the low of the day.

With this market knowledge, this trader that has to be right now understands that her win percentage should be between 25-35% and where to place their stop. Additionally, their understanding aligns with their market understanding allowing her to be correct and less likely to pull the cord on the stop.

I find deep understanding solves most trading psychology challenges – but just because you’ve got your edge and your psychology in order doesn’t mean you can trade like a business just yet.

4. What Are Your Return Assumptions?

Return assumptions refer to the returns a trader or investor expects to make from a particular investment or their trading activities via their trading efforts in the financial markets.

All active traders share one common goal: to utilize their trading capital to make as much money as possible while assuming a certain level of risk.

For that reason, it’s critical to set your expectations right and figure out a rough idea of what kind of return you might achieve before you kick off your trading endeavors.

So, how do you determine a reasonable rate of return?

Whether you’re a business or a trader, the answer is the same.

Look at you and your competition’s average annual returns per each different system or setup, and determine a number you think you can realistically achieve.

Target Compound Annual Growth Rate (CAGR)

This average annual return is the target compound annual growth rate or CAGR. It’s the average return or profit you make divided by your capital.

To keep the math easy, if you make $10,000 on a $100,000 account, your annual return is 10%.

You need to calculate an appropriate CAGR accurately as it flows through to all of your other business calculations, like how much money your trading business needs to generate each year to cover its expenses.

Without history to back it up, investors shouldn’t set their target CAGR above 15%, and traders shouldn’t set their CAGR above 40%.

And yes, good traders have the potential to compound their capital faster than investors due to the structural advantages of having less money to move.

Here are the top ten filers by 10-year annualized performance to give you context.

Now, I know for some of you, these CAGR numbers are tiny, but exceptional returns are the exception, not the rule.

Minimum Absolute Return

Understanding what you can likely achieve makes it time to figure out precisely what you need to succeed.

The absolute minimum return refers to the minimum return that a trader sets over a predetermined time frame.

This return needs to cover your business expenses, which I’ll cover shortly, and the owner’s draw. The draw is the salary you need for yourself and your dependent’s living expenses.

The minimum absolute return is typically your breakeven level. It’s not the target.

Target Absolute Return

The target is your target absolute return. This is the profit you want your trading business to create over the period, typically a year.

You calculate your target absolute profit target by multiplying your target CAGR by starting capital and subtracting fees, which we’ll cover shortly.

I would advise against creating a profit target and working backward since you may need to inflate your CAGR artificially.

The last thing you want to do is overestimate your trading income and underestimate your trading loss.

Maximum Drawdown

Maximum drawdown refers to your maximum downside risk over a period. It’s the maximum observed loss from a peak to a trough.

For instance, if your portfolio value is $100,000 and you lose $30,000, your drawdown would be ($30,000 – $100,000) / $100,000 = 30% or $30,000 in dollar terms.

It’s important to note that maximum drawdown only measures the extent of the most considerable loss, excluding the frequency of significant losses.

Maximum drawdown determines how much capital you’ll need to start your trading business, assuming you’ve included multiple market cycles in your analysis.

Capital Required

Armed with an understanding of your absolute minimum return and maximum drawdown, we can finally determine how much capital you’ll need to start your trading business.

Capital required refers to the amount of money a trader needs to carry out trading activities within the financial markets.

Consider your capital as the raw material that powers your trading activity in the stock market or any business.

So let’s go through the math.

If you need to generate $50,000 per year and expect your minimum CAGR to be 10%, you would need $50,000 / 10% = $500,000 without a drawdown.

Keep in mind if your CAGR return is that low, it’s likely you don’t possess enough of an edge, but I kept the numbers simple for explanation purposes!

But that’s not all. If your maximum drawdown is 20% or $200,000, you’ll also need to add that to your initial capital.

And with all businesses, you’ll need to put in a considerable amount of time.

5. Time Commitment

Time commitment refers to the number of hours per week applied to your new trading business.

It’s essential to treat and act “businesslike” at all times.

Only by approaching each trading day with full intent and purpose can you aspire to succeed.

This extends beyond just executing your trading strategies.

It also includes learning, studying, researching new strategies, and improving your mindset as a trader.

Can you fit it all into your schedule? Do you have enough time to make it work?

These are critical questions to ask yourself before starting your trading startup.

Let’s think about this a little more.

Understanding A Trading Business

Although different from the traditional brick-and-mortar business, a trading business’s anatomy can be broken down similarly.

Think of your trading strategies as your new products and services.

Through these strategies, you’ll be generating your trading income.

And just like how traditional businesses need to constantly improve their products and services based on customer and market feedback, you’ll be doing the same, which leads me to my next point…

Trading Losses Are Expenses

Trading losses are going to be inevitable. You want to take advantage of this market feedback to improve your product. Be sure to analyze each loss and learn from them. They will be your best teacher.

But at the same time, you simply want to treat your losses as a cost of doing business.

Think of the casino business and a game of roulette.

Of course, the casino makes money when the player loses.

But does the player always lose?

So, if we have a player who is always betting on the color red, they have an almost 50-50 chance of winning each time.

There will be times when the player hits lots of reds in the short-run, and the casino loses money.

However, the house always wins.

In the long run, given that the roulette contains a neutrally colored zero, the casino has the edge (remember, we spoke about the edge earlier).

Act like a casino; if you have an edge in the financial markets, you will win long-term.

Short-term losses are simply the cost of conducting business.

Capital Preservation

But continued losses should signal to the management team that it’s time to rethink the plans.

Intelligent management knows preserving your capital to live another day is more important than making more money in the short term.

New traders often have this backward.

The truth is that the only aspect of the trading process you have significant control over is how much money you will lose in a trade.

It’s critical to size your bets correctly.

And speaking of plans, let’s go over what your trading business plan should include.

Your Trading Business Plan

A trading business plan, similar to a typical business plan, is a document that details everything that you need to know to run your trading business. It includes your objectives, how you intend to make money, your edge, what you will trade and why, and how you will grow your business.

It’s time to address the actual birth of your business as a new independent trader.

What Is Your Company’s Mission Statement?

A company’s mission statement defines its culture, values, ethics, fundamental goals, and agenda. The statement outlines what the company does, how it does it, and why. Prospective investors may also refer to the mission statement to see if the company’s values align with theirs.

A well-crafted mission statement articulates the purpose of your business.

It helps to serve as a framework for your business. Outlining what your business stands for, along with your objectives and values.

What is your mission statement? Why are you doing this? Is it just for the money? What’s your driving purpose for embarking on a trading career?

It’s critical to understand the why because it empowers the how.

What Is Your Company’s Philosophy?

A company philosophy refers to “the way we do things around here.” Conventionally, it relates to the fundamental beliefs of the people and the organization.

Your company’s philosophy boils down to your market beliefs.

Do you believe that it is fundamentals or emotions that drive the markets?

Or is it the Fed?

Your trading edges come from a deep understanding of how you view the market. And you need this deep understanding to stick to your strategies during a drawdown.

The last thing you want to do is have a shaky market philosophy and jump ship at the wrong time.

So what is your market philosophy? These will guide your principles.

What Are Your Company’s Principles?

Company principles refer to the principles that a company abides by throughout its day. These could be building a great workplace culture, conservative cash flow use, or taking significant, calculated risks.

What principles does your company abide by throughout your trading day?

These should stem from your philosophy.

For instance, if you believe that the Fed moves the market, are you selling your positions if the Fed is not printing money?

If you’re a trend follower, do you implement Paul Tudor Jones’ rule of refusing to purchase any stock below its 200-day moving average?

Having the various principles aligned with your market philosophy and mission will help you maintain the necessary discipline with your trading.

It will also help you understand what assets to trade.

Your Trading Universe

This is the range of financial instruments that a trader plans to trade across the investable universe, including all tradable assets. In reality, most investors do not invest so broadly and have a narrower universe that could be constrained to event-driven biotech stocks.

This is your total addressable market, and your edge governs it.

Assuming the above, if biotech is in a long-term downtrend, do your edges still allow you to make a profit? If not, you may need to grow your edges and the total addressable trading universe.

What Are Your Company Rules?

Company rules refer to the established rules, in writing, made by the company’s higher level of authority and bound to follow by all employees and stakeholders.

Often these rules revolve around conduct, hours worked, and customer service levels. And larger trading organizations should define these; however, the rules I’m referring to for a trading business help you protect your capital and add discipline to your trading operations to boost profitability — essentially money management rules, which I like to think of in four distinct categories.

1. Portfolio Management Rules

Portfolio management entails building and overseeing a selection of investments or investment strategies that will meet the long-term goals set above.

Most investors take the approach of diversifying their assets, which is a reliable measure.

However, a superior alternative is implementing uncorrelated strategies within the same asset class.

For instance, buyers tend to reduce their leverage during sell-offs, which causes both stocks and bonds to drop, even though these two asset classes are generally uncorrelated.

Therefore, having a mix of long and short stock strategies can help you offset this risk.

What are your portfolio management rules?

An example would never be allocating more than 25% of capital to a single strategy.

2. Risk Management Rules

Risk management is the process of identifying, assessing, and controlling threats to an organization’s capital and earnings. These risks stem from various sources, including financial uncertainties, legal liabilities, technology issues, strategic management errors, accidents, and natural disasters.

Remember that the aspect of trading you have considerable control over is how much you’re willing to lose on any given trade.

So, always go into a trade knowing your pre-defined price targets to take profits and the price points you’re willing to get out for a small loss if the trade goes against you.

The worst thing you can do is hold on to a losing trade that invalidates your thesis, hoping it will eventually become a winner.

An example of a breakout strategy risk management rule would be to set your stop at the low of the day, invalidating the idea if it moves against you, but never more than the average daily range.

3. Position Sizing Rules

Position sizing refers to the size of a position within a particular portfolio or the dollar amount that an investor will trade. Investors utilize position sizing to determine how many security units they can purchase, which helps them control their risk and maximize returns.

How much you will earn or lose from your trades is directly tied to the size of your trading positions.

Your position size will also impact your ability to diversify your trading positions.

If too large a portion of your trading account is tied up in one trading position, you won’t have the necessary capital to open other trades.

We never know which of our positions will be the big winners.

There is no worse feeling than watching the market rally, and you are in 3-4 positions that decide to sit out the rally.

Keep in mind that even with proper position sizing, there is a risk that an active trader’s position loses more than their specified risk if a stock gaps below the stop-loss order.

This is why it’s essential to position size correctly, especially around earnings announcements, which you may want to avoid altogether.

A common position sizing rule is to never risk more than 25% of your account on any single trade.

4. Leverage Trading Rules

Leveraged trading, also known as margin trading, margin finance, or trading on margin, allows you to open a trading position with a broker using a small amount of capital to take a much larger position.

Suppose you commit $10,000 on a 10X leveraged financial instrument. You’ll be trading as if you had put in $100,000.

Thus, any capital gains you make have a tenfold effect, but the same applies to losses, so using leverage implies an element of risk.

If you’re taking on leverage, ensure that your edges are well defined and diversified, and you have a clear leverage rule.

I will never go above 500% leverage, and this scales down as the volatility of the instrument increases.

Leverage is extremely risky in almost all cases. But there is one exception to this:

When trading crypto, using leverage can help mitigate the risk of an exchange hack at the cost of margin interest fees.

SWOT Analysis

With your rules established, it’s time to perform a SWOT analysis.

SWOT stands for Strengths, Weaknesses, Opportunities, and Threats, and so a SWOT analysis is a technique for assessing these four aspects of your business.

SWOT analysis is a simple tool that can help you analyze what your company currently does best and devise a successful strategy for the future.

1. What Are Your Strengths?

Strengths define what you excel at.

Perhaps you have a programming background, and you can create trading algorithms.

Perhaps you’re a decisive person who can make solid, carefully constructed decisions rather quickly.

Perhaps you’re able to stay calm and collected and perform under pressure.

For me, as you’ve probably guessed, it’s the first one that helps mitigate my weakness.

2. What Are Your Weaknesses?

Weaknesses prevent you from operating at your prime.

For instance, you may have difficulty dealing with market sell-offs and tend to get “sucked in” by the emotion of everyone else panicking.

The best way to mitigate this is to have a plan to take advantage of these opportunities.

The second best way is to reread your business plan and stay away from the news and social media on such days.

Plus, keep in mind that these sell-offs are often an opportunity in the market. Smart institutions often accumulate on sell-off days due to their liquidity constraints. If you’re a breakout trader, you should identify what stocks are acting stronger than the market.

As they say, one man’s misfortune is another man’s opportunity.

So, take note of your weaknesses and negative triggers. That way, you’ll be able to easily spot them and make logical decisions rather than emotional, irrational ones that will hurt your profitability.

My weakness?

I pay both my living and business expenses from my trading income. I would feel immense pressure to make money every day and override my trading systems in the early days.

I’m sure you can all guess what happened.

Understand what your weaknesses are, that they may change over time, and figure out how to mitigate them.

3. What Are Your Opportunities?

These refer to favorable external factors to grow your business or competitive advantage.

For instance, can your trading strategies be applied to additional trading instruments or different markets?

Crypto trading is attractive as an algorithmic trader as it trades 24/7 against relatively unsophisticated traders.

4. What Are Your Threats?

In contrast to opportunities, threats refer to factors that potentially harm your business.

Government measures towards reducing fossil fuel use towards energy production in favor of renewable energy sources pose a threat to any non-renewable energy sector business or energy stock in your portfolio.

And these types of risks apply to your trading business.

Changes in capital gains tax laws, crypto regulation, or even black swan events are threats.

Do you have proper hedging strategies in place?

With an understanding of your strengths, weaknesses, opportunities, and threats, it’s time to do some benchmarking.

Performance Measurement

Performance measurement is the process of collecting, analyzing, and reporting information regarding the performance of an individual, group, organization, system, or component.

They say what gets measured gets improved. And like other traditional businesses, trading businesses are no different.

To monitor your trading performance, you require data.

You can collect data manually from your trading platform and record it in a spreadsheet, but I highly recommend that discretionary traders use journal software that records the information.

Although there are hundreds of metrics you could track, you should track the following key performance indicators (KPIs) classified by market and strategy at a bare minimum:

• Profit & Loss
• Total number of trades
• Win percentage
• Average time in trade
• Largest winning trade
• Largest losing trade
• Average winner
• Average loser
• Maximum drawdown
• Profit factor
• Gain-to-Pain Ratio

Feel free to check out my website for definitions and example calculations for these metrics if you have questions.

Operating Costs

As promised earlier, we need to understand your trading business’s fixed and variable costs to determine the absolute minimum return.

Fixed costs are expenses that remain constant for a period of time irrespective of the level of outputs. Variable costs are expenses that change directly and proportionally to business activity level or volume changes.

So, what do these look like for your new trading business?

Fixed Costs

Here are some fixed costs trading businesses have at varying degrees:

• Computer & equipment
• Trading software
• Administration software
• Internet & telephone

You’re most likely already paying for the trading software, and the good news is that most of the home office expenses are relatively inexpensive.

But don’t forget to consider the most significant expense of them all — paying your managing member.

To understand your trading business’s true profitability, you need to track your monthly draw in your accounting software.

Variable Costs

Here are some variable costs involved with your trading business:

• Transaction fees
• Slippage costs
• One-time data costs

Office Location

Another aspect you also want to think about is if and where to set up an office.

As a trader, you can set up an office anywhere you like across the globe — granted, some time zones are more convenient than others.

You can set up your own home office.

You can also buy or rent your own business office.

A big driver of this decision is how well you can balance life and work while at home.

If you’ve got kiddos at home and cannot concentrate, the answer is typically straightforward.

Additionally, scaling to multiple employees is a little easier if you’re an algorithmic trader, as you can more easily separate roles.

These aspects determine whether it makes sense to stay at home or hang up a shingle somewhere outside of your personal space.

Regardless of where your office is, you’ll want to make sure you maximize the tax benefits.

Benefits For Incorporating

There are many benefits of incorporating your business, including asset protection through limited liability, corporate identity creation, perpetual life of the company, transferability of ownership, and an ability to build credit and raise capital and tax savings.

But if trading is your primary source of net income, you should consider incorporating it for tax purposes.

Securities are considered capital assets. The sales of these assets are taxable income considered as capital gains.

This can create massive tax liabilities on your trading operations, so it’s usually ideal for an active trader to incorporate as a company.

Additionally, trading is not considered a business activity by the IRS, so it is not possible to deduct business expenses as they are ineligible for tax deductions in this case.

This is noteworthy since costs such as software, internet access, and data access can be significant for most active traders.

However, you can receive similar tax treatment to other business owners by creating a separate business entity to conduct your trading activities.

You can form a sole proprietorship, partnership, or S-Corp, and file for trader tax status (TTS), which exempts you from the $3,000 capital loss limitation and wash sales adjustments.

A trader can form a single-member LLC to elect S-Corp trader status. The main tax benefits of creating an S-Corp are to arrange tax deductions for health insurance premiums and a retirement plan contribution.

In addition, an S-Corp does not pass through negative self-employment income (SEI), and the employee benefit deductions work tax efficiently.

C-Corps are not ideal for a trader status because the IRS might charge a 20% accumulated earnings tax and the 21% flat tax.

Before incorporating a company, ensure you qualify for it. The business must be eligible for claiming TTS.

While there’s no specific ruleset, we can look at prior court cases to determine eligibility guidelines.

As a trader, you need at least four trades per day. Trade executions on approximately four days per week. More than 15 trades per week, 60 per month, and 720 per year.

Your average holding period must be under 31 days.

Additional factors include having a material trading account size ($25,000 for pattern day trader designation on securities and $15,000 for other instruments).

Spending over four hours per day with the intention to run a business to make a living.

Plus, having trading computers, multiple monitors, and a dedicated home office.

Please keep in mind I’m not a lawyer or an accountant; please consult these professionals so they can understand your specific situation and tax law.

The Bottom Line

We’ve covered much of what you need to know for setting up your trading as a business.

It requires several moving parts, from determining your why, identifying an edge, creating your rules, and even getting into the nitty-gritty of incorporating a legal entity.

The exact, crystal clear method you specifically choose to become a successful trading business owner will not be drawn on a map for you.

Just kidding, there is a map.

It’s called Analyzing Alpha.

Be sure to subscribe to our newsletter below to receive exclusive email content that’s jam-packed with value to help you on your journey to becoming a truly successful and profitable trader.

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Course Overview

"He who fails to plan is planning to fail" -Winston Churchill

Traders who win consistently treat trading as a business. While there is no guarantee that you will make money, developing a trading plan is crucial if you want to become consistently successful and thrive in the trading game. Every trader—no matter your experience—needs a plan.

Why are you here?

• You want to know what constitutes a trading plan
• You realize you need a trading plan
• You want to be successful at futures trading

You’re in the right place for any those objectives. At the end of this course, you’ll understand why you need a trading plan and how to build one to support your success as a futures trader.

What is a trading plan?

A trading plan is a business plan for your trading career. Like any business plan, a trading plan is a working document in which you make assumptions about projected costs, revenues, and business conditions. Some of your assumptions may be right, some will surely be wrong. You wouldn't start a business without a business plan, so why would you start trading without a trading plan?

The real value in writing a trading plan is that it forces you to think about every part of your trading business, including confronting your strengths and weaknesses, and formulating reasonable expectations.

Any solid trading plan consists of the following five components. There are no shortcuts to developing a trading plan that will support your objectives. Take the time now to think about each of these components thoroughly and you will thank yourself later.

• Methodology
• Risk Management
• Trading Strategies

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The Ultimate Guide to Developing a Successful Business Trading Plan

Table of Contents

Introduction

A business trading plan is a comprehensive strategy that outlines a trader’s goals, objectives, and methods for trading in the financial markets. It’s a vital tool for managing risk, identifying potential trading opportunities, and achieving long-term success. In this article, we’ll provide a step-by-step guide to developing a successful business trading plan that aligns with your goals and objectives.

Defining Your Trading Goals and Objectives

Defining your trading goals and objectives is a crucial step in developing a successful business trading plan. It provides a clear direction for your trading activities and helps you stay focused on your long-term goals. Here are some tips for defining your trading goals and objectives:

• Determine your motivation: Ask yourself why you want to trade. Are you looking for financial freedom, a new career, or simply a way to supplement your income?
• Set realistic goals: Set realistic goals that align with your motivation and resources. For example, if you’re a new trader, your goal may be to achieve consistent profits over a certain period.
• Establish a timeline: Determine a timeline for achieving your goals. This can help you stay focused and motivated, and allow you to evaluate your progress.
• Prioritize your goals: Prioritize your goals based on their importance and feasibility. Focus on achieving your most important goals first.
• Review and adjust: Continuously review and adjust your goals based on your progress and changing market conditions. Be flexible and willing to adjust your approach as needed.

Conducting Market Analysis

To develop a successful business trading plan, it’s important to conduct a thorough analysis of the market. This includes identifying market trends and patterns, analyzing economic indicators and events, and identifying potential trading opportunities. Here are some tips for conducting market analysis:

• Identify market trends and patterns: Understand the market trends and patterns that influence your trading decisions.
• Analyze economic indicators and events: Keep an eye on economic indicators and events that can impact your trades.
• Identify potential trading opportunities: Look for trading opportunities that align with your goals and objectives.

Identifying and Evaluating Trading Strategies

Identifying and evaluating trading strategies is a crucial component of developing a successful business trading plan. An effective trading strategy should align with your goals and objectives, and provide a structured approach to your trading activities. Here are some steps to identify and evaluate trading strategies:

• Research different trading strategies: There are many different trading strategies available, such as swing trading , day trading, trend following, and scalping. Research the various strategies and determine which ones align with your goals and objectives.
• Test the strategies: Once you have identified potential strategies, test them on historical data or in a demo account to evaluate their effectiveness. This can help you determine which strategies work best for you and your trading style.
• Evaluate the risk and reward: Determine the potential risks and rewards associated with each strategy. Evaluate the strategy’s win rate, average profit, and average loss to determine whether it is a viable strategy.
• Determine your resources and knowledge: Consider your resources and knowledge when selecting a strategy. For example, if you have limited time to dedicate to trading, a long-term trend-following strategy may not be suitable.
• Continuously monitor and adjust: Once you have selected a strategy, monitor its performance and make adjustments as needed. Continuously evaluate its effectiveness and adjust your approach as needed.

Risk Management Strategies

Risk management is an essential component of successful trading, as it helps traders manage potential losses and preserve their trading capital. Effective risk management strategies enable traders to limit their exposure to risk while maximizing their potential for profits. Here are some key risk management strategies that traders should consider:

• Use stop-loss orders: A stop-loss order is an instruction to sell a security when it reaches a certain price, helping traders limit their potential losses.
• Manage position sizing: Position sizing involves determining the appropriate size of a trade based on risk and potential reward. Traders should manage their position sizing to limit their exposure to risk.
• Diversify your portfolio: Diversification involves spreading your investments across different asset classes or securities to minimize your overall risk exposure.
• Set realistic profit targets: Traders should set realistic profit targets that align with their goals and objectives.
• Monitor your trades: Traders should continuously monitor their trades and adjust their risk management strategies as needed.
• Use hedging strategies: Hedging involves using financial instruments to offset potential losses in other positions. Traders should consider using hedging strategies to limit their exposure to risk.
• Understand market volatility: Traders should understand the level of volatility in the markets they trade and adjust their risk management strategies accordingly.

Trading Psychology

Trading psychology is the mental and emotional state that a trader brings to the process of trading. It includes factors such as discipline, patience, focus, and emotional control. Mastering trading psychology is a crucial component of successful trading, as it enables traders to remain objective, avoid making impulsive decisions, and stay committed to their business trading plan. Here are some tips for developing a strong trading psychology:

• Manage your emotions: Emotions can cloud your judgment and lead to impulsive decisions. Practice emotional control by avoiding emotional trading and staying disciplined.
• Stay focused: Focus on your business trading plan and avoid getting distracted by external factors such as news, opinions, or market noise.
• Develop discipline: Trading requires discipline and adherence to a plan. Develop a disciplined approach to your trading and stick to your plan.
• Avoid overconfidence: Overconfidence can lead to poor decision-making and excessive risk-taking. Stay humble and objective in your analysis and decision-making.
• Maintain a positive mindset: A positive mindset can help you overcome challenges and setbacks. Stay optimistic and focus on your long-term goals and objectives.
• Practice patience: Patience is key to successful trading. Wait for the right opportunities and avoid rushing into trades without proper analysis and planning.
• Learn from mistakes: Every trader makes mistakes. Learn from your mistakes and use them as opportunities to improve your skills and knowledge.

Backtesting and Monitoring

Backtesting and monitoring are crucial components of any successful business trading plan. Backtesting involves testing a trading strategy against historical data to evaluate its effectiveness, while monitoring involves tracking trading performance in real-time to identify areas for improvement and make adjustments as needed. Here are some tips for effectively backtesting and monitoring your trading plan:

Backtesting

• Identify the right historical data: Use historical data that is relevant to the markets and trading instruments you plan to trade.
• Use the right backtesting tools: Choose a reliable backtesting tool that provides accurate data and insights.
• Test multiple scenarios: Test your trading strategy against multiple scenarios to evaluate its effectiveness in different market conditions.
• Keep track of your results: Keep track of your backtesting results and use them to identify areas for improvement.
• Track your trading performance: Keep track of your trades and performance metrics, such as profit and loss and win/loss ratio.
• Identify areas for improvement: Analyze your trading performance and identify areas for improvement, such as adjusting your risk management strategy or refining your trading plan.
• Make adjustments as needed: Use the insights gained from monitoring to make adjustments and refine your trading plan.

By incorporating backtesting and monitoring into your trading plan, you can identify areas for improvement and make adjustments to ensure long-term success. Additionally, keeping a trading journal or using specialized trading software can help you track and analyze your trading performance more efficiently. Remember that effective backtesting and monitoring require a disciplined approach and a commitment to continuous improvement.

Implementation and Execution

After developing a comprehensive business trading plan and thoroughly backtesting and monitoring it, the next step is implementing and executing your plan. Implementation and execution are critical steps that can make or break your success as a trader. Here are some tips for effectively implementing and executing your trading plan:

• Follow your plan: Stick to your trading plan and avoid making impulsive trades or deviating from your strategy.
• Keep track of your progress: Monitor your trading performance and keep track of your progress, both in terms of profits and losses and adherence to your plan.
• Evaluate your results: Continuously evaluate your trading results and make adjustments as needed based on your performance.
• Use proper risk management: Implement proper risk management techniques to minimize potential losses and preserve your trading capital.
• Stay disciplined: Maintain a disciplined approach to your trading and avoid letting emotions cloud your judgment.
• Learn from your mistakes: Analyze your mistakes and learn from them, rather than letting them discourage you or lead to further losses.
• Continuously improve: Continuously refine your business trading plan based on your results and the lessons learned along the way.

Developing a successful business trading plan is a crucial step for achieving long-term success in the financial markets. By defining your trading goals and objectives, conducting market analysis, identifying and evaluating trading strategies, implementing risk management strategies, developing a strong trading psychology, backtesting and monitoring your business trading plan, and implementing and executing your plan, you can create a comprehensive strategy that aligns with your goals and objectives. With this guide, you’re now equipped to develop a successful business trading plan and achieve your trading goals.

• Trading Basics

Having a Trading Plan: Treat Your Trading Like It’s a Business

Learn how to approach your trading like a business with these five essential components.

Key Takeaways

• Know the five components that should be part of any trading plan
• When creating a trading plan, make sure it aligns with your financial goals
• Having a trading plan and following it can help you avoid making emotional financial decisions

As Benjamin Franklin wisely said in the 1700s, “By failing to prepare, you are preparing to fail.”

Fast-forward to 2021 and apply this to your trading or investing approach. How much have you prepared?

Any small business owner knows a business plan is essential. No bank is likely to give you a loan without a business plan. The goal of trading is to potentially grow your wealth, similar to that of a small business investment. So, if you haven’t taken the time to write a trading plan, carve out some time this weekend. By the way, this is something you can share with your partner.

(Hint: Good communication with your significant other about trading plans can help keep everyone on board with the approach, desired goals, and time investment needed for successful trading.)

Five Essential Components of a Trading Plan

Set specific financial goals. Write down your specific objectives, but try to dig deeper than simply “saving for retirement.” This could be a dollar amount within a specific time frame. For example maybe you want to make a profit of $1,000 a month from your trading. Or it could be a specific percentage gain you want to see in your portfolio within a specific time period. The financial decisions you make should align with your objectives.

Determine your buy criteria. This could take weeks or months to refine and could evolve over time as market environments change. Spend time studying, learning, and developing an approach that works for you. Do you buy stocks based on fundamental or technical analysis, or a little of both? Are you a fundamental stock picker, but like to use charts to fine-tune entry points?

• Write down a specific fundamental criteria to look for in a stock. This could include P/E ratio, annual earnings increases, or rising dividends. It’s a good idea to know earnings and dividend dates ahead of time.
• What indicators do you use and what signals do you need for confirmation? Do you want to follow trends, or do you want to invest in specific asset classes? Develop a plan and paper trade it. Once you’re comfortable, write it down and adhere to it. This is an important step because you’re looking to get the necessary information that can help you make your investing decisions.

Know when to sell. One of the cardinal rules of successful trading is knowing where to exit before getting in to a trade . If the market starts moving against you, you should be prepared to take your losses and exit your position. So, it’s important to plan your exits. If you’re a technical trader, you could use potential resistance levels from long-term charts (think weekly or monthly) or chart pattern targets such as a break in a head and shoulders neckline. Make a plan for exiting profitable and losing trades, write it down, and automate an exit point. You could include the following:

• Stop orders. Sometimes markets can move against you by quite a bit. Placing a stop order at the time you place your entry can help protect your positions. Where you place the stop is related to how much you’re willing to lose on a trade. It could be a percentage or dollar amount. It’s a personal choice and could involve analyzing past price moves to find what works best for your comfort level.
• Trailing stop orders. These are a type of stop order that dynamically follows market prices and can be used to protect long and short open positions. For a long position, a trailing stop can be set at any value below market price, and for short positions, a buy-to-close order can be placed above market price. For example, say you want to buy a stock at $25 per share and would like to protect it with a trailing stop. You could place a trailing stop order of $2, which means the stop order will rise as the stock price rises, but if the stock price falls $2, the stop order becomes a market order to close the position.

Stop market orders do not guarantee an execution at or near the activation price. Once activated, they compete with other incoming market orders.

Plan for tomorrow by setting financial goals today.

Identify your trading or investing time frame.  Determine your trading time frame. Are you a short-term swing trader, looking for two- to three-day opportunities, or do you want to hold positions for multi-month moves? Maybe you do both, i.e., have some longer-term investments and some that are shorter term. Write it down.

Develop a risk management plan.  Trading is about taking risks, so it goes without saying that risk management is very important to successful trading and investing. Consider setting specific risk parameters that you’re comfortable with, such as when to protect your capital, when to take profits, and the size of your positions. Remember: You’re operating in an uncertain environment, which means you’re likely to have losses. The key is to minimize those losses, and that means you should be ready to take action when necessary. There are different ways to manage risk. Here are a few examples.

• Some traders look for a risk/reward ratio of about 1:3, which means they’re willing to risk $1 to potentially earn $3.
• Some traders follow the so-called 2% rule, which means they’ll never risk more than 2% of an entire portfolio in one trade.
• Some traders allocate specific percentages of their portfolio to different assets for better diversification.

How to Measure Trading Success

When it comes to trading, hard work can pay off. What’s work when it comes to trading? Keeping a trading journal and reviewing trades on a weekly or monthly basis can be helpful. Write down the five essential components of a trading plan and compare your trades against them. What went right? What went wrong? Did you risk too much? Are you following your trading plan, or did emotional trading take over? A review process can help keep you accountable and allow for adjustments as needed to help you pursue your goals and approach trading like a business.

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• The 7 Step Business Plan for Tradespeople

How To Create A Plan To Start A Trade Company

Want to grow your trade business but don’t know where to start?

Whether you want to be self-employed or grow a team there comes a time where most tradesmen dream of working for themselves, but most don’t know where to start.

If you’re considering setting up your own trade company but need a nudge in the right direction, you’re in the right place.

In this article we tell you how to turn in your dreams into plans and trust us it pays to plan.

Those who write a business plan are 16% more likely to succeed than those who don’t! 1

Why write a business plan?

Putting your ideas down on paper will guide you and help track your progress. We call that process writing a business plan. It doesn’t have to be a masterpiece, but it will help you turn your ideas into a business strategy! Plus, you’ll need one if you’re applying for finance!

If like most tradespeople you’re working a minimum of 40 hours a week on your tools, you’re probably thinking I don’t have time to write a business plan and why is it worth bothering with? You can trade without one, but it will limit your chance to grow…and we promise we’ll make it as easy as possible! See it like any job you do, spend the time to do it right and avoid the need to do it twice!

Writing a business plan will help you better understand who your competitors and customers are, document how much money you expect to make, see your ‘financial projections’ and set realistic targets, helping you see when you’re off track.

No time? No problem!

You don’t have to write a plan the minute you decide to go it alone. Research suggests that the sweet spot for writing a plan is when you’re talking to customers, getting the business ready to start trading and when you’re thinking about how you will advertise your services. If you get your plan down on paper when you’re doing all of these things, you’re increasing your chance of success by 27% 2 !

Even a one-page business plan to help you? It’s not going to help you get finance, but it will help gather your thoughts and stop your head from getting mashed!

How to write a business plan for tradespeople

Keep your business plan short and concise. Ensure details are specific, that you know your market and that all finance information is accurate.

Don’t worry if you get stuck there’s lots of help available and it’s the process of thinking of everything in the plan that’s most important.

What to include 3 :

• Executive summary (a summary of your business plan).
• Business Description.
• Market and Completion analysis.
• Sales and Marketing Plan.
• Operations and management plan.
• Financial factors.
• Supporting Evidence: include information such as your CV, accreditations, any permits and leases or licenses.

1. Executive summary

Write this section last. This part needs to grab the attention of the bank or the investor. It should be a summary of your business plan and why you’re going to be successful. It should include a summary of:

• What you do i.e. Your Service.
• What stage of development your business is currently at and why your business idea will be successful.
• Who your customers are.
• Summary of your plans for the future of the company.
• The strengths of your overall business plan including a summary of the financial information.

2. Business description

This bit covers things like your legal structure, history and start-up plans. You should include:

• Who owns the company.
• When you started trading and what progress the business has made to date. Include details of your personal background in the industry and what you have done so far towards launching the business.
• Details of all of your services.
• Who your customers are: list specific consumers or businesses you will serve.
• How your business will profit and what will make it be a success, such as its location, operation structure and industry expertise.
• Your mission statement or elevator pitch: A sentence explaining the business, it’s goals, how it will stand out from others and how will fit in the industry.
• Explain any key features of the industry including any special regulations or any major changes in technology.

3. Market and competition analysis 4

Here’s your chance to show that you know your industry and where your business is in the market aka who your customers are.

Top Tip: do a good old Google search for “Home Improvement, Trends & Statistics” to help with your research, include the relevant stats in your plan and add the report data to your appendix. Cheers Google! Just make sure you use the most recent reports from a reliable source.

In this bit:

• Describe your industry, the size, trends and the future outlook.
• Explain who your customers will be, how many are available in the area you’re targeting, the number of customers you expect to gain and how much your customers spend on your services each year.
• Include the characteristics of your customers, things like their homeowner status; age bracket; their needs; where they are located; and any seasonal or buying trends that might affect your trade business.

Understanding your competition. You’ll need to assess the local competition, look for themes and figure out:

• Who your competitors are; list them, their strengths and weaknesses and what you can offer that they can’t?
• Tactics that will give you an advantage. Why will customers want to come to you and not other companies offering similar services? Do you offer competitive pricing, quality services, guarantees for your work, are you accredited, does your location give you an advantage? Do you have years of experience or are you a specialist in a particular service?
• Explain any barriers that you could face i.e. lack of staff, experience, no tools, no work and how you’ll overcome this.

4. Sales and marketing plan 5

Things to include are:

• How customers find you and details of how you will advertise your services.
• What budget you will have to advertise, buy materials and for operational costs.
• How you will fund the business to the point where your business starts to experience a continuous income.
• Pricing structure and strategy: Profit margin and any discounts that you plan to use.

5. Operations and management plan

This is all about how your business will get things done, how it will function. It should include details like how your company will run and who will run it. Include:

• Services you offer: Explain the services you offer and how you’ll provide them to your customers. Include things like who carries out the work, is it you or your team – both? How do you get paid?
• Management Team: List your team and provide details of each person’s experience that will contribute to the success of the business. Include the management team’s responsibilities.
• Explain your operations structure. Include things like who is responsible for; taking customer calls, quoting jobs, buying materials, administration, labor, sales and marketing and what tasks each department has to handle. It may be that you handle everything – LUCKY YOU! That’s fine. Just write down when you intend to do each task i.e. if you’re out working all week, when will do your admin and how will you bring in more work etc.
• List any overheads and expenses related to your business operation, such as rent, salaries supplies, and equipment leases.

6. Financial factors

It’s all ‘bout the money! Let’s face it, all this plan needs to prove is that you’re going to make some CASH…so this is the important bit! To do this bit you’ll need details of your expenses; these come in two categories: your start-up expenses and your operating expenses.

This section includes 3 financial statements and a brief explanation / analysis of each. Those statements are:

• Profit and Loss statement which shows how your business will make money. It includes income (money) generated (or anticipated), cost of materials, gross profit margin, operating costs, net profit before and after taxes, and total expenses. It uses the formula. Income – Expenses = Profit/Loss.
• Cash flow forecast 6 : a statement of anticipated cash sales (i.e. money paid to you for work done), money owed to the business (receivables); total income, and costs for materials, overheads, and marketing and sales as well as salaries. It shows how much money will be needed to meet your business obligations, when it will be needed and where you will access it (i.e. if and when you’ll need funding). This statement is a great way to forecast and plan before plugging numbers into your income statement or balance sheet.
• Balance sheet 7 : provides a snapshot of what a company owns and owes at a specific date (rather than over a period of time like the other two reports). It provides a summary of all the financial information above. The balance sheet is made up of assets (what it owns), liabilities (what it owes) and equities (Capital). It uses the formula Assets = Liabilities + Equity.

Company accounts work like this…The company’s trading activity is recorded on the Profit and Loss statement. This records how much money has been made and how much has been spent running the company. This profit figure then gets adjusted to reflect the cash actually generated by the business through the Cash Flow statement. Once it emerges from the Cash Flow statement you can see how it turns up on the Balance Sheet.

How to forecast sales: Forecasting sales and creating cash flow projections is hard when you don’t have any operating history as a business. Investors/ banks will want to see that you’ve thoroughly thought of your numbers so here’s an example of a way to help you forecast 8 … Estimate how many households that need your services live within say, one mile? How much will they spend on the services you offer each year, and what percentage of their spending you will get, compared to your direct competitors? Do the same analysis for areas within five miles, using lower sales forecast figures, using distances that make sense for your location. For example:

Once you’ve set your business up the easiest way to produce these reports is through accounting software such as Xero or QuickBooks. Your accountant will be able to format the correct accounts to be submitted to Companies House. See our Accounting article for more info.

7. Supporting evidence

This is where you provide evidence of any data, reports and statistics that you’ve used in your business plan. Include copies of any leases, licenses, accreditations, insurance documents, your C.V and the C.V of other key employees or owners. Add in anything else referred to in your business plan including your market research of the industry and your competitors.

Well folks that’s it! You have a detailed structure to help you write a business plan for your trade company. For more support be sure to sign up to our growth tips where we provide advice on growing a trade business and other specialist topics for tradesmen including sample business plans and cash flow statements to help you get started.

Do a great job, this will give you a good reputation building repeat custom and free word of mouth advertising. Treat it as a business, be organised, do things by the book and then – take the plunge.

Putting your ideas down on paper will guide you and help track your progress plus, you’ll need one if you’re applying for finance!

Executive summary Business Description Market and Competition analysis Sales and Marketing Plan Operations and management plan Financial factors Appendix: include information such as your CV, accreditations, any permits and leases or licenses.

A business plan is simply getting your ideas down on paper. So, whether you just want to do a one-page document to help gather your thoughts or a full financial plan this article will guide you through the process and our downloads will help you along the way.

It’s not essential unless you’re applying for funding, but it will help your trade business succeed by helping to get an idea of anticipated income, expenses and estimating contingency costs as well as acting as reference guide to keep you on track.

Get those ideas down on paper. It doesn’t have to be a work of art but it will help you get ideas into a step by step plan.

By getting your ideas down on paper. Make a to do list, use this article as guidance. Plus, we have loads more on how to start a trade company to help you at each stage of the journey.

Whether you want to be self-employed or grow a team there comes a time where most tradesmen dream of working for themselves, but most don’t know where to start. We say spend a few minutes planning to avoid mishaps further down the line.

Better understand who your competitors and customers are, document how much money you expect to make, see your ‘financial projections’ and set realistic targets, helping you see when you’re off track.

Basically, it’s a summary of your business plan – the best bits if you like. Its purpose is to make sure the lender wants to read more so it needs to say why your idea will be successful and back it up with stats from your financials.

The purpose of the balance sheet is to reveal the financial status of a business as of a specific point in time. The statement shows what an entity owns (assets) and how much it owes (liabilities), as well as the amount invested in the business (equity).

It measures a company’s sales and expenses during a specified period of time. The categories include net sales, costs of goods sold, gross margin, selling and administrative expense (or operating expense), and net profit.

P&L is short for profit and loss statement. A business profit and loss statement shows you how much money your business earned and lost within a period of time.

It’s a statement of anticipated cash sales (i.e. money paid to you for work done or services offered), money owed to the business (receivables); total income, and costs for materials, overheads, and marketing and sales as well as salaries.

It’s research and proof of research to show that you’ve considered who your direct competitors are and what would make your customers come to you and not them.

It shows how your trade business will make money, it includes income generated (or anticipated), cost of goods/materials, gross profit margin, operating costs, net profit before and after taxes, and total expenses. Income – Expenses = Profit/Loss.

A balance sheet provides a snapshot of what a company owns and owes at a specific date (rather than over a period of time). It’s made up of assets (what it owns), liabilities (what it owes) and equities (Capital). It uses the formula Assets = Liabilities + Equity.

Antonia Mougkopetrou

• Harvard Business Review (2017). Research: Writing a Business Plan Makes Your Startup More Likely to Succeed - https://hbr.org/2017/07/research-writing-a-business-plan-makes-your-startup-more-likely-to-succeed
• Harvard Business Review (2018). When Should Entrepreneurs Write Their Business Plans? - https://hbr.org/2018/05/when-should-entrepreneurs-write-their-business-plans
• Entrepreneur (1997). Writing A Business Plan: Operations And Management - https://www.entrepreneur.com/article/20890
• HubSpot (2019). How to Do Market Research: A 6-Step Guide - https://blog.hubspot.com/marketing/market-research-buyers-journey-guide
• Inc. (2015). How to Write a Great Business Plan: Sales and Marketing - https://www.inc.com/jeff-haden/how-to-write-a-great-business-plan-sales-and-marketing.html
• Business Accounting Basics. (2020). Cash Flow Forecast - https://www.businessaccountingbasics.co.uk/cash-flow-forecast/
• Business Accounting Basics. (2020). Balance Sheet Template - https://www.businessaccountingbasics.co.uk/balance-sheet-template/
• The Balance Small Business. (2019). How to Write the Financial Section of a Business Plan - https://www.thebalancesmb.com/writing-the-business-plan-section-8-2947026
• The Balance Small Business. (2020). 3 Sales Forecasting Methods - https://www.thebalancesmb.com/sales-forecasting-methods-2948036

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8 Business Plan Templates You Can Get for Free

8 min. read

Updated April 10, 2024

A business plan template can be an excellent tool to simplify the creation of your business plan. 

The pre-set structure helps you organize ideas, covers all critical business information, and saves you time and effort on formatting.

The only issue? There are SO many free business plan templates out there. 

So, which ones are actually worth using? 

To help remove the guesswork, I’ve rounded up some of the best business plan templates you can access right now. 

These are listed in no particular order, and each has its benefits and drawbacks.

What to look for in a business plan template

Not all business plan templates are created equal. As you weigh your options and decide which template(s) you’ll use, be sure to review them with the following criteria in mind:

• Easy to edit: A template should save you time. That won’t be the case if you have to fuss around figuring out how to edit the document, or even worse, it doesn’t allow you to edit at all.
• Contains the right sections: A good template should cover all essential sections of a business plan , including the executive summary, product/service description, market/competitive analysis, marketing and sales plan, operations, milestones, and financial projections. 
• Provides guidance: You should be able to trust that the information in a template is accurate. That means the organization or person who created the template is highly credible, known for producing useful resources, and ideally has some entrepreneurial experience.
• Software compatibility: Lastly, you want any template to be compatible with the software platforms you use. More than likely, this means it’s available in Microsoft Word, Google Docs, or PDF format at a minimum. 

1. Bplans — A plan with expert guidance

Since you’re already on Bplans, I have to first mention the templates that we have available. 

Our traditional and one-page templates were created by entrepreneurs and business owners with over 80 years of collective planning experience. We revisit and update them annually to ensure they are approachable, thorough, and aligned with our team’s evolving best practices.  

The templates, available in Word, PDF, or Google Doc formats, include in-depth guidance on what to include in each section, expert tips, and links to additional resources. 

Plus, we have over 550 real-world sample business plans you can use for guidance when filling out your template.

Download: Traditional lender-ready business plan template or a simple one-page plan template .

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2. SBA — Introduction to business plans

The U.S. Small Business Administration (SBA) offers two different business plan templates along with a short planning guide. 

While not incredibly in-depth, it’s enough to help you understand how traditional and lean plans are structured and what information needs to be covered. The templates themselves are more like examples, providing you with a finished product to reference as you write your plan.

The key benefit of using these templates is that they were created by the SBA. While they may provide less guidance, you can be assured that the information and structure meet their expectations.

Explore: The SBA’s planning guide and free templates

3. SCORE — Planning workbook

SCORE’s template is more like a workbook. It includes exercises after each section to help you get your ideas down and turn them into a structured plan.

The market research worksheets are especially useful. They provide a clear framework for identifying your target market and analyzing competitors from multiple angles. Plus, they give you an easy way to document all the information you’re collecting.

You will likely have to remove the exercises in this template to make it investor-ready. But it can be worth it if you’re struggling to get past a blank page and want a more interactive planning method.

Download: SCORE’s business plan template

4. PandaDoc — A template with fillable forms

PandaDoc’s library offers a variety of industry-specific business plan templates that feature a modern design flair and concise instructions. 

These templates are designed for sharing. They include fillable fields and sections for non-disclosure agreements, which may be necessary when sending a plan to investors.  

But the real benefit is their compatibility with PandaDoc’s platform. Yes, they are free, but if you’re a PandaDoc subscriber, you’ll have far more customization options. 

Out of all their templates, the standard business plan template is the most in-depth. The rest, while still useful, go a bit lighter on guidance in favor of tailoring the plan to a specific industry.

Explore: PandaDoc’s business plan template library  

5. Canva — Pitch with your plan

Canva is a great option for building a visually stunning business plan that can be used as a pitch tool. It offers a diverse array of templates built by their in-house team and the larger creative community, meaning the number of options constantly grows.

You will need to verify that the information in the template you choose matches the standard structure of a traditional business plan. 

You should do this with any template, but it’s especially important with any tool that accepts community submissions. While they are likely reviewed and approved, there may still be errors.

Remember, you can only edit these templates within Canva. Luckily, you only need a free subscription, and you may just miss out on some of the visual assets being used. 

To get the most value, it may be best to create a more traditional planning document and transfer that information into Canva. 

Explore: Canva’s business plan gallery

6. ClickUp — The collaborative template

Out of all the project management tools that offer free business plan templates, ClickUp’s is the most approachable.

Rather than throwing you into all the features and expecting you to figure it out—ClickUp provides a thorough startup guide with resource links, images, and videos explaining how to write a plan using the tool. 

There’s also a completed sample plan (structured like an expanded one-page plan) for you to reference and see how the more traditional document can connect to the product management features. You can set goals, target dates, leave comments, and even assign tasks to someone else on your team. 

These features are limited to the ClickUp platform and will not be useful for everyone. They will likely get in the way of writing a plan you can easily share with lenders or investors. 

But this is a great option if you’re looking for a template that makes internal collaboration more fluid and keeps all your information in one place.

Sign Up: Get a free trial of ClickUp and explore their template library

7. Smartsheet — A wide variety of templates

I’m including Smartsheet’s library of templates on this list because of the sheer number of options they provide. 

They have a simple business plan template, a one-page plan, a fill-in-the-blank template, a plan outline, a plan grading rubric, and even an Excel-built project plan. All are perfectly usable and vary in visual style, depth of instructions, and the available format.

Honestly, the only drawback (which is also the core benefit) is that the amount of templates can be overwhelming. If you’re already uncertain which plan option is right for you, the lengthy list they provide may not provide much clarity.

At the same time, it can be a great resource if you want a one-stop shop to view multiple plan types.

Explore: Smartsheet’s business plan template library  

8. ReferralRock affiliate marketing business plan

I’m adding ReferralRock’s template to this list due to its specificity. 

It’s not your standard business plan template. The plan is tailored with specific sections and guidance around launching an affiliate marketing business. 

Most of the template is dedicated to defining how to choose affiliates, set commissions, create legal agreements, and track performance.

So, if you plan on starting an affiliate marketing business or program, this template will provide more specific guidance. Just know that you will likely need to reference additional resources when writing the non-industry sections of your plan.

Download: ReferralRock affiliate marketing business plan template

Does it matter what business plan template you use?

The short answer is no. As long as the structure is correct, it saves you time, and it helps you write your business plan , then any template will work. 

What it ultimately comes down to, is what sort of value you hope to get from the template. 

• Do you need more guidance? 
• A simple way to structure your plan? 
• An option that works with a specific tool?
• A way to make your plan more visually interesting?

Hopefully, this list has helped you hone in on an option that meets one (or several) of these needs. Still, it may be worth downloading a few of these templates to determine the right fit. 

And really, what matters most is that you spend time writing a business plan . It will help you avoid early mistakes, determine if you have a viable business, and fully consider what it will take to get up and running. 

If you need additional guidance, check out our library of planning resources . We cover everything from plan formats , to how to write a business plan, and even how to use it as a management tool . 

If you don’t want to waste time researching other templates, you can download our one-page or traditional business plan template and jump right into the planning process.

See why 1.2 million entrepreneurs have written their business plans with LivePlan

Kody Wirth is a content writer and SEO specialist for Palo Alto Software—the creator's of Bplans and LivePlan. He has 3+ years experience covering small business topics and runs a part-time content writing service in his spare time.

Table of Contents

• Qualities of a good template
• ReferralRock
• Does the template matter?

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A Guide For Starting a Fair Trade Business

Main Sections In This Post Steps To Starting A Fair Trade Business Points to Consider Knowledge Is Power Featured Video

Starting a fair trade business requires a step-by-step approach. This guide offers a detailed outline, examples, and samples for reference.

Use the “Knowledge Is Power” section for up-to-date information. These resources assist both during startup and after establishment.

Due to the depth of information, consider sharing and bookmarking this post for easy access.

Let’s get started with the steps.

Steps to Starting a Fair Trade Business

Below are the steps to starting a fair trade business.

Each step is linked to a specific section, allowing you to jump to your desired section or scroll to follow the steps in order.

• An Overview of What You’re Getting Into

Fair Trade Business Overview

• Researching Your Fair Trade Business
• Looking at Financials
• Choosing A Business Location
• Creating Your Mission Statement
• Creating A Unique Selling Proposition (USP)
• Choose a Fair Trade Business Name
• Register Your Company
• Create Your Corporate Identity
• Writing a Business Plan
• Banking Considerations
• Getting the Funds for Your Operation
• Software Setup
• Business Insurance Considerations
• Supplier and Service Provider Considerations
• Physical Setup
• Creating a Website
• Create an External Support Team
• Hiring Employees

1.  An Overview of What You’re Getting Into

Starting a Fair Trade Business: Is It for You?

Success in business hinges largely on you. Are you passionate about running a fair trade business?

Passion is vital because it propels you to find solutions during challenges. Without it, you may abandon ship at the first sign of trouble.

Evaluate your passion with this exercise: Imagine winning the lottery, buying all you desire, and aiding friends, family, and charities.

After three years, with ample funds still left, ask yourself: Would you still want to start a fair trade business?

If yes, it indicates genuine passion.

If not, reconsider your path. Success isn’t just about money; it’s about pursuing what you love.

For More, See How Passion Affects Your Business . Also, see, Considerations Before You Start Your Business to identify key points for a new business owner.

2. Gaining an Overview of Owning a Fair Trade Business

Next, let’s spend some time on key issues to give you an overview of what to expect from owning and running your business.

a.) A Quick Overview of Owning a Fair Trade Business

A fair trade business is committed to fostering equitable trade practices, prioritizing fair wages, improved working conditions, and sustainable development for marginalized workers in developing regions.

This involves connecting these producers to global markets while maintaining social and environmental standards.

Sourcing and Relationships

The day-to-day operations of managing a fair trade business encompass sourcing goods directly from disadvantaged artisans or farmers.

This entails building relationships with cooperatives or local communities, negotiating reasonable prices, and ensuring quality benchmarks.

Transparent Supply Chains

Maintaining transparent supply chains is critical.

Regular communication with suppliers, validating production conditions, and ensuring adherence to fair trade principles are ongoing activities to meet ethical standards.

Ethical Marketing

Marketing fair trade products involves crafting narratives around their origins and positive impacts, educating consumers about the value of supporting such ethically-driven enterprises.

Financial Diligence

Financial management is essential.

Tracking expenditures, revenues, and profit margins while guaranteeing fair wages for producers upholds the business’s ethical foundation.

Certification and Compliance

Continual certification and compliance efforts are necessary.

Fair trade businesses often pursue validation from reputable organizations, involving audits, paperwork, and demonstrating commitment to established standards.

Advocacy and Engagement

Additionally, advocating for fair trade policies and principles is vital.

Engaging with policymakers, NGOs, and other stakeholders helps promote fair trade as a sustainable economic model.

In Conclusion

In essence, running a fair trade business necessitates ethical sourcing, transparent supply chains, impactful marketing, financial diligence, adherence to standards, and active advocacy for equitable trade practices.

These combined efforts positively impact producers’ livelihoods and consumers’ conscientious choices.

b.) Fair Trade Business Models

Types of Fair Trade Business Setups and Their Business Models

Fair trade business setups come in various forms, each with distinct business models aligned with their goals.

Cooperative Fair Trade Enterprises involve local producers forming cooperatives to negotiate better prices and conditions collectively.

These co-ops often manage production and marketing collectively, ensuring equitable profit distribution.

Community Development Initiatives focus on socioeconomic growth in underserved areas.

They might establish workshops to train artisans, equipping them with skills to create marketable goods. These enterprises reinvest profits to fund community projects.

E-Commerce Fair Trade Ventures operate online platforms to connect global consumers with ethically-produced goods.

They source from artisans worldwide, highlighting stories behind products. E-commerce models enable broader market access for producers.

Choosing the Right Model

Choosing the right business model from the beginning is crucial, as switching your model later is more challenging.

Each model has distinct operational intricacies, supply chain dynamics, and target audiences.

Tailoring your model to your mission and resources enhances long-term sustainability.

Identifying a Profitable Niche

Identifying a profitable and high-demand niche for your fair trade business is essential.

Analyzing market trends and consumer preferences helps pinpoint underserved areas where ethical products resonate.

For instance, the demand for eco-friendly and artisanal goods is growing.

In fair trade, various business setups cater to diverse needs.

Cooperative Fair Trade Enterprises empower local communities, Community Development Initiatives foster holistic growth, and E-Commerce Fair Trade Ventures tap into the global market.

Evaluating your mission, resources, and market trends aids in selecting the optimal model.

Furthermore, identifying a profitable niche sets the stage for successful a fair trade business.

c.) Pros and Cons of Owning a Fair Trade Business

Every business has pros and cons. While owning and operating a business offers benefits, focusing solely on rewards can lead to overlooking challenges.

It’s crucial to assess these challenges to be prepared. Understanding potential issues allows proactive preparation and minimizes surprises.

For more, see Pros and Cons of Starting a Small Business.

d.) Challenges You Could Face When Starting and Operating a Fair Trade Business

Starting a fair trade business involves numerous challenges.

• Ethical Sourcing and Supply Chains: Sourcing ethically-produced goods at fair prices and establishing transparent supply chains can be daunting tasks.
• Consumer Education: Educating consumers about fair trade principles and the value of ethically-produced goods requires effort and effective communication.
• Certification Complexity: Navigating intricate certification processes to validate fair trade practices demands time and resources.
• Competition with Conventional Businesses: Competing with conventional businesses that might prioritize lower costs over ethical considerations can be tough.
• Quality Assurance and Fair Wages: Ensuring consistent product quality while upholding fair wages for producers is a delicate balancing act.
• Strategic Marketing: Standing out in a competitive market and carving a niche for the fair trade business necessitates strategic marketing efforts.

Overcoming these challenges demands determination, forging strong partnerships with producers, and maintaining a steadfast commitment to ethical practices.

e.) Questions You Need to Consider for Your Fair Trade Business

To ready yourself for potential challenges in launching a fair trade business, consider the following questions:

• Business Model: Have you determined the specific fair trade business model you plan to adopt, whether it’s a cooperative, community development initiative, or e-commerce venture?
• Workforce: Are you deciding between operating solo or hiring employees? Have you contemplated the need for a manager to oversee operations?
• Customer Acquisition: How will you attract your initial customers? What strategies will you employ to communicate your fair trade values effectively?
• Customer Retention: What approaches will you use to ensure your customers return? How will you build lasting relationships and deliver ongoing value?
• Partnerships: Are you considering collaborating with partners or seeking investors? How can these collaborations enhance your resources and expertise?
• Funding: Have you devised a clear plan for financing your startup expenses? Are you exploring options such as personal savings, loans, grants, or potential investor contributions?
• Profitability Timeline: Realistically, how long do you anticipate it will take for your fair trade business to become profitable? Are you prepared for the financial challenges of the initial phases?
• Early Stage Financial Support: What strategies will you use to support yourself financially during the challenging early stages of your business, when revenues might be limited?
• Product and Service Strategy: Have you defined the range of products or services your fair trade business will offer? Do they align seamlessly with fair trade principles?
• Market Demand: How well have you researched and understood the demand for your offerings? Are you confident that a viable market exists for the products or services you intend to provide?

As you address these questions, you’ll be better equipped to anticipate and navigate challenges, setting a sturdy foundation for the prosperity of your fair trade business.

3. Research

Inside information fair trade business research.

Conducting comprehensive research is paramount before embarking on any business endeavor.

Quality information lets you understand your venture’s landscape, preventing unexpected situations.

Engaging with experienced individuals in the field, particularly those who have successfully managed fair trade businesses, is invaluable.

Their insights are dependable and drawn from their extensive expertise and years of hands-on experience.

Interacting with these experts offers a priceless opportunity to glean insights and knowledge directly from their real-world encounters.

These interactions can provide valuable guidance and aid in avoiding pitfalls.

To identify and connect with the right people, a process beyond the scope of this post, an article has been prepared to guide you.

It provides strategies to locate suitable contacts and approach them respectfully and non-intrusively.

I strongly recommend reading the article in the link below for a comprehensive understanding of the fair trade business landscape.

It will empower you with insights and information crucial to making informed decisions as you embark on your fair trade business journey.

See An Inside Look Into the Business You Want To Start for all the details.

Target Audience

Understanding your target audience yields significant benefits.

When you comprehend your target market, you can tailor offers that resonate with fair trade business customers, delivering products and services aligned with their interests.

Target Market Ideas:

• Ethical consumers seeking socially responsible products
• Individuals passionate about supporting marginalized artisans and communities
• Eco-conscious buyers looking for sustainable and eco-friendly options
• Advocates of fair labor practices and workers’ rights
• Educated consumers valuing transparency and ethical supply chains
• Socially active individuals committed to making positive global impacts

For more, see How To Understand Your Target Market.

Product & Service Demand

Determining the demand for your fair trade business’s products and services before launch is pivotal.

Operating without this insight jeopardizes success, despite high quality and competitive prices. Without demand, sales stagnate, potentially leading to business failure and insurmountable debt.

To assess market demand effectively, consider these strategies tailored to your fair trade business’s location:

• Market Research: Conduct thorough research to comprehend your target audience’s preferences, needs, and purchasing behavior. Identify gaps in the market that your fair trade products could fill.
• Surveys and Focus Groups: Engage potential customers through surveys and focus groups. Gather their opinions on fair trade products, identifying whether they would embrace your offerings.
• Competitor Analysis: Analyze your competitors’ performance. Observe their offerings, pricing, and customer responses. Differentiate your fair trade products based on unique features.
• Local Partnerships: Collaborate with local organizations, NGOs, or community groups. Their insights can provide a deeper understanding of community needs and preferences.
• Pilot Testing: Launch a limited release or pilot of your products. Monitor sales and customer feedback to gauge initial demand and potential for growth.
• Online Presence: Leverage social media and online platforms to showcase your fair trade products. Analyze engagement metrics to gauge interest levels.
• Networking: Attend local events, fairs, and exhibitions related to fair trade or ethical products. Interact with attendees to gauge their interest and gather feedback.
• Feedback Loops: Establish channels for customers to provide feedback. Their insights can help refine your offerings based on real-time preferences.
• Local Media and Influencers: Collaborate with local media outlets or influencers to promote your products. Their audience response can indicate demand.
• Pre-Orders or Waitlists: Offer pre-order options or create waitlists for your products. The number of sign-ups can indicate interest levels.

By employing these strategies, you can gather valuable data on market demand, ensuring your fair trade business aligns with customer preferences and increasing the likelihood of success.

For more, see the Demand for Your Products and Services .

4. Looking at Financials:

Overview of Financial Considerations for Your Fair Trade Business

Understanding the financial aspects of your fair trade business is crucial for a successful start.

This section outlines startup costs, monthly expenses, revenues, and profits, ensuring a well-planned and informed venture.

Startup Costs:

Accurately estimating startup costs is vital for a smooth launch.

Underestimating might lead to funding shortages, delaying your opening.

Overestimating can label your operation as high-risk.

Costs depend on factors like size, location, staffing, equipment, and renting/leasing.

List needed items and gather prices, considering unexpected expenses that arise during research.

For more detailed information, refer to my article on Estimating Startup Costs.

Sales and Profit:

Your sales hinge on several factors: the quality of your customer service, the popularity of products/services, demand, and effective marketing to reach the right audience.

Profitability extends beyond per-sale earnings, encompassing rent, payroll, and overhead costs.

Generating enough sales to cover monthly expenses and provide a viable income is pivotal for success.

For More, See Estimating Profitability and Revenue.

Understanding the financial dynamics from startup to profit is essential in steering your fair trade business toward sustainability and growth.

Simple Sample: Financial Lists to Consider As a Starting Point

Note: Focus on the list items more than the numbers. The numbers are samples. Your estimates will differ due to how you set up your business, location, expenses, and revenues. 

Sample Estimated Startup Costs for a Fair Trade Business in the USA:

• Product Inventory: $5,000 – $10,000
• Equipment and Supplies: $2,000 – $5,000
• Location/Space Rental: $1,000 – $3,000
• Licensing and Permits: $500 – $1,000
• Marketing and Promotion: $1,000 – $2,000
• Initial Staffing (if applicable): $2,000 – $4,000
• Website and E-commerce Setup: $500 – $1,000
• Miscellaneous (Contingency): $1,000 – $2,000

Total Startup Costs Range: $13,000 – $28,000

Sample Estimated Monthly Expenses for a Fair Trade Business in the USA:

• Rent/Lease: $1,000 – $3,000
• Employee Salaries: $3,000 – $6,000
• Utilities: $200 – $500
• Inventory Restocking: $1,000 – $3,000
• Marketing and Advertising: $500 – $1,000
• Loan Payments (if applicable): $500 – $1,000
• Insurance: $100 – $300
• Miscellaneous (Contingency): $500 – $1,000

Total Monthly Expenses Range: $6,800 – $16,800

Sample Profit Per Sale Examples:

• Handcrafted Jewelry : $10 profit per piece
• Artisanal Coffee: $5 profit per bag
• Organic Clothing: $15 profit per item

Your overall profit will depend on the monthly sales you can generate and your actual profit per sale.

These samples help you understand the considerations in planning your fair trade business. Adjusting costs and a slight shift in profit per sale on high-volume sales can significantly impact your overall profits.

Remember that new businesses often take time to become profitable due to building a customer base, reputation, and refining operations.

Your figures will differ based on unique factors like location and demand.

It’s advisable to research and seek professional advice for accurate calculations of startup costs, expenses, potential revenues, and profits.

5. Choosing The Right Business Location

The fate of your local brick-and-mortar business hinges on its location. Operating in an area lacking demand leads to inevitable failure, while high competition poses challenges in gaining market share.

Striking a balance between demand and competition is key.

Affordability matters too. A populous location offers exposure but must not outweigh expenses. A cheaper site needs enough customers for sustainability.

Online or non-physical models offer flexibility, but competition and demand assessment remain vital.

High competition hampers market share, and no demand renders opening useless.

Home-based startups suit online or minimally interactive businesses, allowing later transition to commercial spaces.

Choosing a location determines success—research thoroughly for an informed choice.

For more about business locations, see Choosing The Best Location for Your Business.

6. Create Your Mission Statement

A mission statement serves as a compass, clarifying your business’s purpose. It keeps you aligned and mindful of your core benefits to customers and the community.

Examples of Fair Trade Business Mission Statements:

• “Empowering Artisans Globally: We commit to providing ethically-produced, high-quality goods that empower artisans from marginalized communities, fostering sustainable growth and positive social impact.”
• “Sustainable Commerce for All: Our mission is to connect conscientious consumers with fairly-traded products, promoting sustainable livelihoods, environmental responsibility, and social equity.”
• “Crafting Change, Creating Impact: We’re dedicated to offering handcrafted products that support artisans’ fair wages, enabling them to thrive while enriching lives through artistry and ethical trade.”
• “Global Connections, Local Impact: Through our fair trade platform, we bridge artisans and buyers, promoting cultural diversity, ethical production, and shared prosperity.”
• “Empathy in Every Stitch: Our mission is to showcase the stories behind every product, honoring artisans’ skills and struggles, and contributing to a world where trade is synonymous with fairness and compassion.”

A well-crafted mission statement encapsulates the essence of your fair trade business, guiding its direction and resonating with customers who share your values.

For more, see, How To Create a Mission Statement.

7. Creating A Unique Selling Proposition (USP)

A Unique Selling Proposition (USP) aids in pinpointing what sets your business apart.

It helps you identify and craft a distinctive element that makes your business remarkable and appealing to customers.

Examples of USP for a Fair Trade Business:

• “Ethical Elegance”: Our fair trade business offers beautiful products and empowers artisans through ethical practices, allowing customers to support communities while owning unique creations.
• “Global Stories, Local Impact”: We stand out by curating fair trade items with rich cultural stories, fostering a connection between consumers and producers, and making every purchase a meaningful exchange.
• “Empowering Every Purchase”: Our USP lies in every purchase’s direct and significant impact. With fair wages and transparent supply chains, customers contribute to a more equitable world with every buy.
• “Artisanal Excellence, Ethical Heart”: Our fair trade products merge artisanal craftsmanship with ethical values, delivering quality and a commitment to social betterment, appealing to conscious consumers.
• “Sustainability in Every Stitch”: Our USP centers on sustainable practices, offering customers not just products but a chance to participate in sustainable living by supporting fair trade and eco-friendly goods.

A compelling USP amplifies your fair trade business’s identity and communicates its value proposition distinctly, attracting customers who align with your ethos.

8. Choose a Business Name

Choosing a business name requires careful consideration.

It should be catchy, appropriate to your industry, easy to pronounce, and memorable.

Since business names are relatively permanent, take your time and avoid rushing the process.

Additionally, securing a matching domain name for your online presence is crucial.

To avoid legal conflicts, it’s essential to ensure your desired name isn’t already registered by another business.

List of Sample Fair Trade Business Names:

• EthicalExchange Emporium
• GlobalHarmony Traders
• FairCraft Collective
• EquiTrade Treasures
• CompassionateGoods Hub
• UnityMarket Finds
• SustainableArtisan Emporium
• JustTrade Empowerment
• EquiGoods Junction
• FairBloom Connections
• ConsciousTrade Co.
• EthicalElegance Emporium
• FairGlobe Empowerment
• CompassCraft Collective
• HarmonyHaven Treasures
• EmpowerTrade Finds
• EcoEthics Hub
• FairCharm Traders
• ImpactfulGoods Emporium
• EquiReach Connections
• SustainCraft Co.
• EthicalEssence Emporium
• FairRoot Empowerment
• KindnessMarket Treasures
• EthosTrade Finds
• GlobeGoodness Hub
• BalanceCraft Collective
• HarmonyThreads Emporium
• FairFlourish Treasures
• UnityEra Traders

This list can serve as a starting point to ignite your creativity and craft an original, meaningful name that resonates with your fair trade business’s ethos.

For more, see the following articles:

• How To Register a Business Name
• Registering a Domain Name For Your Business

9. Register Your Company

Ensuring the legal standing of your fair trade business is paramount.

Consulting a professional is advisable to guarantee compliance, optimal tax structures, and liability protection.

Common Types of Registrations for a Fair Trade Business:

• Sole Proprietorship: A simple, individual ownership structure with minimal formalities but lacks separation between personal and business liability.
• Limited Liability Company (LLC): Offers liability protection for owners while maintaining flexibility in management and taxation.
• Cooperative: Suited for fair trade collectives, this entity allows members to manage and share profits collectively.
• Corporation: Provides strong liability protection, formal structure, and investment potential but involves complex compliance.
• Nonprofit Organization: For ventures focused on social impact, this structure has tax advantages but requires adherence to nonprofit regulations.

Permits and Licenses for a Fair Trade Business:

• Business License: A basic requirement for operating legally in your jurisdiction.
• Sales Tax Permit: Needed to collect sales tax on products sold.
• EIN (Employer Identification Number): Required for hiring employees and managing taxes.
• Home Occupation Permit: If running the business from home, zoning regulations may necessitate this permit.
• Health Department Permit: For businesses dealing with food or health-related products.
• Environmental Permits: If handling products with environmental implications.
• Import/Export Licenses: If your fair trade business involves international trade.
• Fair Trade Certification: For businesses adhering to fair trade principles, obtaining certification adds credibility.
• Special Industry Licenses: Depending on your specific products/services, specific licenses might be required (e.g., alcohol, textiles).

Ensuring proper legal standing involves the right registrations, permits, and licenses.

Seeking professional advice safeguards your business’s legality and helps you navigate the complexities.

Registration:

• How to Register Your Business
• How To Register a DBA
• How to Register a Trademark
• How to Get a Business License

Business Structures:

• How to Choose a Business Structure
• Pros & Cons of a Sole Proprietorship
• How To Form an LLC
• How To Register a Business Partnership
• How To Form a Corporation
• How To Choose a Business Registration Service

10. Create Your Corporate Identity

A Corporate Identity (Corporate ID) is a visual representation that embodies your business’s essence.

It encompasses diverse elements, including your logo, business cards, website, signage, stationery, and promotional materials.

This unified design creates a consistent and professional image, leaving a lasting impression on new and existing customers.

A well-crafted Corporate ID holds considerable significance. It visually communicates your brand’s values, distinguishing your business in a competitive market.

The logo symbolizes your business at a glance, while other components like business cards and stationery maintain a cohesive and polished appearance across various touchpoints.

In the digital age, an effective online presence is essential.

Your website should seamlessly align with your Corporate ID, offering a smooth experience for visitors and reinforcing your brand’s identity.

Whether in-person or online, maintaining a uniform and professional design reflects your commitment to quality and professionalism, fostering customer trust.

You can see our page for an overview of your logo , business cards , website , and business sign , or see A Complete Introduction to Corporate Identity Packages.

11. Writing a Business Plan

A business plan is a crucial document for securing financing and attracting investors. It serves as a roadmap, guiding you through startup and operational phases.

As you envision your fully operational business, crafting a business plan demands time and effort.

Planning and articulating details are essential, yielding a comprehensive guide for initiation and operations.

Creating a business plan offers various approaches: starting from scratch, hiring a professional, using templates, or employing business plan software.

Regardless of the method, active involvement is key to ensuring effective communication of your business’s nature and management strategies, particularly when hiring a professional.

Your business plan isn’t static; it can evolve with experience and operational shifts.

Regular review and optimization are prudent, adapting the document to market changes or shifts in your operations.

A well-constructed business plan ultimately empowers you with a clear vision for startup and operational success, serving as a strategic foundation for your fair trade business.

Business Plan Template for a Fair Trade Business

1. Executive Summary:

• Brief overview of your fair trade business.
• Mission statement and core values.
• Summary of key objectives and goals.

2. Business Description:

• Detailed explanation of your fair trade business concept.
• Explanation of fair trade principles and how they will guide your operations.
• Target market identification and analysis.

3. Market Analysis:

• In-depth analysis of your industry, including trends and market size.
• Competitor analysis highlighting their strengths and weaknesses.
• Customer analysis with demographics and preferences.

4. Marketing and Sales Strategy:

• Overview of marketing tactics, including online and offline strategies.
• Sales approach and methods.
• Pricing strategy based on market and competition analysis.

5. Product and Service Line:

• Detailed descriptions of the fair trade products/services you’ll offer.
• Explanation of the ethical and sustainability aspects of your offerings.
• Potential for product expansion or diversification.

6. Operations and Management:

• Organizational structure and key roles.
• Overview of sourcing and supply chain processes adhering to fair trade principles.
• Location and facilities details if applicable.

7. Financial Projections:

• Startup costs estimation, broken down by category.
• Detailed monthly expense projection.
• Revenue forecasts based on market research and projected sales.

8. Funding Request and Use of Funds (if applicable):

• Explanation of how much funding you need and its purpose.
• How you plan to allocate the funds received.

9. Implementation Timeline:

• A detailed timeline outlining key milestones from startup to operational phases.
• Major tasks, responsibilities, and deadlines.

10. Risk Assessment:

• Identification of potential challenges and risks.
• Strategies for risk mitigation and contingency plans.

11. Exit Strategy (if applicable):

• Outline potential exit options, such as selling the business or scaling operations.

12. Appendix:

• Supporting documents, market research data, permits/licenses, and other relevant information.

This comprehensive business plan template serves as a framework to articulate your fair trade business concept, operations, and strategies in a detailed and professional manner.

Customize each section with specifics unique to your venture.

For information on creating your business plan, see, How to Write a Business Plan.

12. Banking Considerations

Opting for a local bank with a strong small business orientation can offer substantial benefits.

Opening a dedicated business account facilitates clear demarcation between personal and business transactions.

This separation streamlines expense tracking, ensuring accurate reports and seamless tax filing.

Cultivating a professional rapport with your banker proves advantageous.

They can provide financial advice and services, simplifying applications and processes. Your banker becomes a valuable partner in your business journey.

A merchant account or online service is equally crucial to accept credit and debit card payments.

This practice enhances sales and customer convenience.

By offering multiple payment options, you create a smoother transaction experience, fostering customer loyalty and boosting revenue.

Choosing the right financial partners and tools ensures smooth business operations, financial clarity, and an enhanced customer experience.

For more, see, How to Open a Business Bank Account. You may also want to look at, What Is a Merchant Account and How to Get One.

13. Getting the Funds for Your Operation

Securing Financing for Your Fair Trade Business:

If you require a loan to kickstart your fair trade business, these tips can guide you through the process.

There are several avenues to fund your fair trade business, including traditional lenders, private loans, seeking investors, or leveraging your assets for capital.

Meeting with a Loan Officer: Considerations:

• Research lenders that specialize in small businesses or ethical ventures.
• Understand your credit score and financial history to gauge eligibility.
• Prepare a clear business plan demonstrating your venture’s viability and potential for growth.
• Be ready to discuss how the borrowed funds will be used and how you plan to repay.

Documents Needed to Apply for a NEW Business Loan:

• Business plan outlining your fair trade concept, market analysis, and financial projections.
• Personal and business credit history.
• Income tax returns for the previous few years.
• Financial statements, including balance sheets and income statements.
• Collateral documentation if required (property, assets, etc.).
• Legal documents such as licenses, permits, and registrations.
• Personal identification (driver’s license, passport).
• Business legal structure details (LLC, corporation, etc.).

Preparing these documents and considering the lender’s perspective can enhance your chances of securing the necessary funds to launch and grow your fair trade business.

See, Getting a Small Business Loan for more.

14. Software Setup

Selecting Software for Fair Trade Business Management:

Researching and choosing the right software is crucial, as transitioning to a new system after data integration can be complex. Consider these pointers to ensure a wise software choice:

• Long-Term Suitability: Opt for software you can build on, as starting from scratch is easier than later transitions.
• Established Providers: Choose a reputable company with a history, ensuring future support and updates.
• Try Before Buying: Utilize demos to test functionality and compatibility before committing.
• Learn from Others: Software reviews and forums provide valuable insights into user experiences.
• Financial Tracking Software: Look into solutions for expense tracking and financial document preparation, consulting your bookkeeper or accountant for guidance.

Types of Software for Fair Trade Business:

• Accounting Software: Streamline financial tasks, track expenses, manage invoices, and generate financial statements.
• Inventory Management: Monitor stock levels, product movement, and orders to ensure smooth operations.
• Customer Relationship Management (CRM): Maintain customer data, interactions, and communication, enhancing customer engagement.
• E-commerce Platforms: For online fair trade businesses, platforms to manage product listings, online sales, and customer orders.
• Point of Sale (POS) Systems: For physical stores, streamline sales transactions, inventory updates, and customer management.
• Project Management Tools: Organize fair trade initiatives, collaborations, and projects efficiently.
• Sustainability Tracking Software: To uphold transparency, monitor and report on fair trade and sustainability practices.
• Marketing Automation: Manage marketing campaigns, social media, and outreach strategies effectively.
• Document Management: Organize contracts, agreements, and business documentation securely.
• Analytics and Reporting: Analyze sales trends, customer behavior, and business performance for informed decision-making.

Choosing the right software can significantly improve your fair trade business’s efficiency, customer experience, and overall success.

Check out Google’s latest search results for software packages for a fair trade business.

15. Get The Right Business Insurance

Essential Insurance for Your Fair Trade Business:

Having the right insurance is vital, as incidents can occur at any time. Here’s what you need to know:

• Comprehensive Coverage: Consider insurance that safeguards customers, employees, your property, and anyone on your premises. This includes liability insurance to protect against accidents and injuries.
• Professional Liability Insurance: Protect yourself from potential lawsuits arising due to errors or omissions in your professional services or products.
• Interruption Insurance: This coverage can prove crucial in case of an incident that forces your business to shut down involuntarily, providing financial support during downtime.
• Home-Based Business Insurance: If you operate or manage your fair trade business from home, notify your home insurance agent. This step prevents your business activities from nullifying your existing home insurance policy.
• Expert Guidance: Rely on a competent insurance broker to navigate the complexities of insurance options and ensure your business has adequate coverage.

Safeguarding your fair trade business with the right insurance shields you against unforeseen challenges and provides peace of mind, allowing you to focus on running and growing your venture.

For more, see What to Know About Business Insurance . You can also browse the latest Google search results for fair trade business insurance .

16. Suppliers, Service Providers and Inventory

Selecting Fair Trade Suppliers and Effective Inventory Management:

Choosing ethical suppliers and managing inventory effectively are critical to a successful fair trade business.

Selecting Fair Trade Suppliers:

• Verify fair trade certifications and commitment to ethical practices.
• Seek suppliers with transparent supply chains for accountability.
• Investigate fair wages, safe working conditions, and community contributions.
• Opt for eco-friendly practices and sustainability alignment.
• Ensure consistent quality and consider long-term partnership potential.
• Evaluate fair pricing and prioritize open communication.

Effective Inventory Management:

• Prioritize ethically-sourced raw materials and products.
• Opt for sustainable packaging materials and reliable shipping services.
• Maintain a variety of products to cater to diverse customer preferences.
• Balance inventory levels to avoid excess stock tying up funds.
• Stay vigilant about expiry dates, avoiding products nearing expiration.
• Develop a strong rapport with suppliers for a mutually beneficial partnership.
• Treat suppliers with respect and consider financial benefits for healthy relationships.

Selecting ethical suppliers and managing inventory wisely contribute to a thriving and principled fair trade business.

For More See, How To Choose a Supplier.

17. Physical Setup

Layout and Setup of a Fair Trade Business (Online and Offline):

Efficiently organizing the layout of your fair trade business, whether online or offline, plays a pivotal role in its success. Here’s how to optimize both setups:

Online Business Setup:

• Website Structure:  Design an intuitive and user-friendly website layout.
• Product Categorization:  Organize products logically for easy browsing.
• Mobile Responsiveness:  Ensure a seamless experience across various devices.
• Secure Checkout:  Implement a user-friendly and secure checkout process.
• Branding Continuity:  Maintain a consistent logo and design for brand identity.
• Contact Information:  Make contact details easily accessible.
• Clear CTAs:  Use clear call-to-action buttons for prompt actions.

Offline Business Setup:

• Interior Layout:  Arrange products logically, promoting ease of navigation and browsing.
• Aesthetics:  Create an inviting atmosphere that reflects fair trade values through decor and design.
• Signage:  Install clear and visible signage for easy wayfinding and product location.
• Checkout Area:  Place the checkout counter conveniently, with space for queuing.
• Displays:  Use displays to highlight fair trade products, educating customers on their significance.
• Comfort:  Provide comfortable seating areas for relaxation and discussion.
• Accessibility:  Ensure the layout is accessible for all customers, including those with disabilities.
• Safety:  Implement safety measures and emergency exits, prioritizing customer well-being.

Signage Placement:

• Main Business Sign:  Install a clear and visible sign indicating your fair trade business.
• Directional Signs:  Add signs to guide customers to parking lots, exits, and special areas.
• Professional Appearance:  Well-designed signs reflect professionalism.

Office Setup for Efficient Management:

• Dedicated Workspace:  Designate an organized area for administrative tasks.
• Equipment:  Equip your office with computers, high-speed internet, and necessary software.
• Ergonomics:  Choose ergonomic furniture to enhance comfort during work hours.
• Clutter-Free Environment:  Maintain a tidy space to minimize distractions.
• Supplies: Ensure you have all the required materials to manage your business effectively.

Whether your fair trade business operates online or offline, an optimized layout contributes to customer satisfaction, productivity, and a positive business image.

A well-structured setup, both in the virtual and physical realms, fosters success and facilitates smooth operations.

See, Here are Considerations for The Setup of Your Office, for tips and ideas to make your office work for you. Also, have a look at our article About Company Signs.

18. Creating a Website

The Importance of Having a Website for Your Fair Trade Business:

A website serves as a cornerstone for your fair trade business, offering numerous advantages that set it apart from other online platforms. Here’s why having a website is essential:

Central Point of Contact:

• Your website becomes the primary hub for potential customers to learn about your fair trade business.
• It provides a comprehensive overview of your mission, values, products, and services.

Ownership and Control:

• Unlike social media accounts, a website is a platform you own and control.
• Registering a domain name and hosting ensures your digital presence is secure and under your authority.

Marketing Tool:

• Your website is a powerful marketing tool, enabling you to showcase your fair trade offerings.
• Share success stories, highlight products, and convey your brand identity effectively.

Content and Expertise:

• Incorporate a blog section to share industry insights, tips, and valuable content.
• Addressing customer pain points and offering solutions can build trust and establish your expertise.

Customer Trust and Authority:

• Consistent blogging and informative content can position you as an industry expert.
• This boosts customer trust, making them more likely to choose your fair trade products.

For more, see How to Build a Website for Your Business .

19. Create an External Support Team

Building an External Support Team for Your Fair Trade Business:

Creating a network of external professionals is crucial for fair trade business success . Here’s why and how to build such a team:

Dependable Expertise:

• An external support team offers advice and services you can rely on.
• These professionals aren’t on your payroll but provide valuable insights.

Varied Utilization:

• Engage team members for specific projects, tasks, contracts, hourly consultations, or on a retainer basis.
• This flexible approach optimizes costs and expertise utilization.

Recognizing Significance:

• Viewing these individuals as a team highlights their importance in your business’s growth.
• Understanding their roles enhances collaboration and business development.

Growing Over Time:

• Start with individuals you already collaborate with and gradually expand your network.
• Cultivate professional relationships to ensure dependable support.

Essential Team Members:

• Accountant: Manages financial matters and ensures compliance.
• Lawyer: Provides legal counsel and handles contracts and agreements.
• Financial Advisor: Offers guidance on financial decisions and investments.
• Marketing Specialist: Assists in promoting your fair trade offerings.
• Technical Advisors: Provide expertise in technology and operations.
• Consultants: Offer specialized advice tailored to your industry.

Building and nurturing a robust external support team ensures you have the right professionals to address various business needs.

This collaborative approach contributes to the growth and success of your fair trade business.

For more, see, Building a Team of Professional Advisors for Your Business.

20. Hiring Employees

Scaling Your Fair Trade Business: Managing Staff and Essential Roles

Initial Solo Operation:

• Running the business alone initially helps control costs.
• A manageable workload can be handled efficiently without hiring.

Growth and Hiring:

• As the business expands, managing it alone becomes challenging.
• Hiring employees becomes necessary to handle increased tasks and demands.

Strategic Hiring:

• Hire qualified individuals with strong work ethics .
• Select candidates who align with your business values and goals.

Key Considerations:

• Determine the right positions to hire based on business needs.
• Build a team that covers essential roles for smooth operations.

List of Essential Job Roles for a Fair Trade Business:

• Operations Manager:  Oversee daily activities and ensure efficient operations.
• Marketing Specialist:  Develop and implement marketing strategies to promote products.
• Customer Service Representative:  Handle customer inquiries and provide support.
• Sales Representative:  Drive sales through effective communication and relationship-building.
• Supply Chain Manager:  Manage product sourcing, inventory, and logistics.
• Accountant:  Handle financial matters, track expenses, and ensure compliance.
• Graphic Designer:  Create visually appealing branding and marketing materials.
• Web Developer:  Maintain and enhance the business’s online presence.
• Social Media Manager:  Manage social media platforms and engagement.
• Product Development Specialist:  Innovate and expand the product line.

Hiring the right team members and defining essential roles as your fair trade business grows contributes to its success, ensuring efficient operations and continued growth.

For more, see, How and When to Hire a New Employee.

Points To Consider

Hours of operation:.

Fair Trade Business Hours and Workload:

Determining your fair trade business hours is vital.

You’ll likely spend additional hours before opening and after closing to manage operations, including inventory, customer inquiries, and planning.

Balancing business hours and behind-the-scenes work ensures a seamless customer experience and business success.

A List of Equipment and Supplies to Consider for a Fair Trade Business:

Setting up your fair trade business requires the right equipment to ensure smooth operations. Here’s a comprehensive list of items you may need:

General Office Setup:

• Computers and Laptops
• Printers and Scanners
• Telephone System
• Furniture (Desks, Chairs, Shelves)
• Stationery (Pens, Paper, Notepads)

Point of Sale (POS) System:

• Cash Registers or POS Software
• Barcode Scanners
• Receipt Printers

Inventory Management:

• Shelving and Racks
• Storage Containers
• Inventory Management Software

Display and Presentation:

• Display Racks and Stands
• Lighting Fixtures
• Mannequins or Display Models

Packaging and Shipping:

• Packaging Materials (Boxes, Bags, Wrapping)
• Shipping Labels and Supplies
• Weighing Scale

Technology and Online Presence:

• Website and Hosting Services
• High-Speed Internet Connection
• Digital Cameras for Product Photography

Security and Surveillance:

• Security Cameras and Monitoring System
• Alarm Systems

Customer Service:

• Customer Service Counter
• Feedback Forms or Kiosks

Payment Processing:

• Credit Card Terminals or Readers
• Cash Handling Equipment

Environmental Considerations:

• Recycling Bins
• Energy-Efficient Lighting

Remember, the specific equipment you need will depend on the nature of your fair trade business.

As you plan and set up, ensure you have the tools to facilitate smooth and efficient business operations.

Key Points To Succeeding in a Fair Trade Business

Success Strategies for Operating a Fair Trade Business:

Operating a successful fair trade business requires a combination of strategic approaches and dedication to core principles. Here are essential points to ensure your business thrives:

• Build a Customer Base: Establishing a customer base is challenging in the startup phase. Focus on targeted marketing and engagement to attract and retain customers.
• Nurture Relationships: Foster strong relationships with customers, suppliers, and employees. These connections are the backbone of your business.
• Offer Desired Products and Services: Provide products and services aligned with customer preferences and values. Understanding your market ensures relevance and demand.
• Act on Customer Feedback: Customer feedback is invaluable. Address credible concerns and suggestions that enhance your operation and benefit most customers.
• Prioritize Customer Service: Your customers are central to your business. Prioritize exceptional customer service to build loyalty and positive word-of-mouth.
• Deliver Value: Consistently provide value through fair trade products, transparent practices, and meaningful engagement.
• Build the Right Team: Hiring skilled and motivated individuals is essential. The right team contributes to overall success and operational excellence.
• Effective Staff Management: Treat staff respectfully, creating a healthy work environment that fosters retention and productivity.
• Cash Flow Management: Maintain a solid grip on cash flow to sustain business operations and growth.
• Cost Efficiency: Balance cost management with quality and customer service, ensuring a lean operation without compromising standards.
• Adapt to Change: Embrace industry, process, and technological changes. Adapting ensures relevance and competitiveness.
• Handle Revenue Fluctuations: Prepare for revenue fluctuations and implement contingency plans to manage variations.
• Compete Effectively: Navigate competition by highlighting your fair trade values and unique offerings to stand out.
• Strategic Marketing: Effective marketing is pivotal. Leverage both traditional and digital platforms to raise awareness and attract customers.

Succeeding in a fair trade business involves aligning your operations with customer needs, maintaining a strong team, and adapting to evolving business landscapes.

You can establish a thriving fair trade business by prioritizing relationships, value, and adaptability.

Making Your Fair Trade Business stand out

In a competitive market, distinguishing your fair trade business is essential for attracting customers and driving growth.

Here are innovative ideas to set your business apart:

• Authentic Storytelling: Share your fair trade business’s unique journey and mission. Authentic narratives resonate with customers who value transparency and purpose.
• Community Engagement: Actively participate in local events and initiatives, building a strong community presence aligned with fair trade values.
• Impactful Branding: Develop a memorable and visually appealing brand identity that reflects your fair trade principles. Consistent branding creates recognition and trust.
• Educational Workshops: Host workshops, seminars, or webinars that educate customers about fair trade practices, ethical sourcing, and sustainability.
• Collaborative Partnerships: Collaborate with other fair trade businesses or complementary industries to cross-promote and enhance your offerings.
• Sustainable Packaging: Implement eco-friendly and creative packaging solutions that reflect your commitment to sustainability.
• Personalized Customer Experience: Tailor your interactions to individual customers, creating a personalized experience that fosters loyalty.
• Fair Trade Certification: Highlight your fair trade certification prominently, assuring customers of your ethical practices.
• Innovative Products: Introduce innovative and unique fair trade products that captivate customers’ interest.
• Social Media Engagement: Maintain an active and engaging social media presence, sharing stories, updates, and behind-the-scenes insights.
• Limited-Edition Collections: Release limited-edition fair trade collections to create a sense of urgency and exclusivity among customers.
• Charitable Initiatives: Partner with nonprofit organizations or support social causes that align with your fair trade values.
• Interactive Experiences: Offer interactive experiences in-store or online, such as virtual tours or interactive product demonstrations.
• Loyalty Programs: Reward loyal customers with exclusive discounts, offers, or access to special events.
• Artisan Showcases: Highlight the stories and craftsmanship of artisans through events, exhibitions, or online profiles.
• Transparency Reports: Share detailed reports on your fair trade practices, sourcing, and impact to build trust and transparency.
• Fair Trade Education: Create resources or guides that educate customers about the benefits and importance of fair trade.

Add on Ideas for a Fair Trade Business

• Eco-Friendly Subscription Boxes: Curate subscription boxes featuring a mix of fair trade products, regularly delivering sustainable surprises to customers.
• Virtual Workshops: Offer online workshops on topics related to fair trade, sustainability, and ethical living.
• Ethical Travel Experiences: Organize eco-friendly travel experiences that connect customers with fair trade producers and their communities.
• Customization Services: Customers can customize fair trade products to their preferences, adding a personal touch.
• Fair Trade Tours: Arrange guided tours of your fair trade business premises, providing an immersive experience for customers.
• Social Impact Events: Host events that showcase the positive social impact of fair trade practices on artisans and their communities.
• Corporate Partnerships: Collaborate with businesses to provide fair trade products for corporate gifting and employee appreciation .
• Eco-Friendly Packaging Services: Extend your sustainability commitment by offering eco-friendly packaging solutions for other businesses.
• Online Learning Platform: Develop an online platform offering courses on fair trade, sustainability, and ethical business practices.
• Artisan Workshops: Organize workshops that teach customers artisanal skills, allowing them to appreciate the craftsmanship behind fair trade products.
• Fair Trade Cafes or Lounges: Combine your fair trade business with a cafe or lounge that serves ethically sourced refreshments.
• Collaborative Product Collections: Partner with well-known designers or influencers to create unique fair trade product collections.
• Ethical Consultation Services: Offer consulting services to guide other businesses in adopting fair trade practices.
• Charity Fundraising Initiatives: Develop initiatives that donate a portion of proceeds to charitable causes, aligning with fair trade values.
• Upcycling Workshops: Organize workshops that teach customers to upcycle and repurpose items, promoting sustainable practices.
• Artisan Empowerment Programs: Establish programs directly empowering artisans by providing training, education, and support.

By implementing these strategies and add-ons, your fair trade business can stand out in a competitive market and make a lasting impact on both customers and the communities you serve.

Marketing Considerations

Attracting Customers to Your Fair Trade Business:

Customer acquisition is essential for the success of your fair trade business.

Especially in the initial stages, attracting customers can be challenging due to your new presence in the market.

Here’s how to effectively draw customers to your business:

• Build Reputation: Establish a strong reputation for your fair trade business by consistently delivering quality products and ethical practices. Positive word-of-mouth recommendations can boost customer trust.
• Time and Experience: As your business gains experience and credibility over time, attracting customers becomes easier. Your accumulated marketing knowledge will also aid in reaching your target audience effectively.
• Ongoing Marketing: Marketing is not a one-time effort; it’s an ongoing process. Regularly invest in marketing strategies to keep your business visible and relevant.
• Effective Marketing Investment: Allocate resources to proven marketing techniques. The more you invest in effective strategies, the higher your revenue potential.
• Self-Marketing: While you don’t always need a marketing agency, you can seek expert assistance when necessary. Match your business needs with the right marketing resources.

Simple Methods to Promote Your Fair Trade Business:

• Social Media Platforms: Utilize platforms like Facebook, Instagram, and X to share updates, engage with customers, and showcase fair trade values.
• Local Events and Markets: Participate in local fairs, farmers’ markets, or community events to introduce your fair trade products to a wider audience.
• Networking: Attend industry-related events and connect with fellow entrepreneurs, suppliers, and customers to expand your business network.
• Online Blogging: Start a blog on your website to share insightful articles about fair trade practices, sustainability, and industry news.
• Collaborations: Partner with other businesses or influencers in related fields to cross-promote and reach new audiences.
• Email Marketing: Build an email list and send out regular newsletters with updates, special offers, and engaging content.
• Word of Mouth: Encourage satisfied customers to share their experiences with friends and family, leveraging the power of word-of-mouth marketing.
• Local Media Coverage: Contact local newspapers, magazines, or radio stations to share your fair trade story and initiatives.
• Loyalty Programs: Implement a loyalty program that rewards repeat customers and encourages them to spread the word.
• Google My Business: Set up and optimize your Google My Business listing to improve your online visibility and local search results.
• Public Speaking: Offer to speak at local events, workshops, or seminars about fair trade, positioning yourself as an industry expert.
• Free Workshops: Host free workshops or webinars related to fair trade practices, educating your audience while showcasing your expertise.
• Online Directories: List your business on online directories specific to your industry, making it easier for potential customers to find you.
• Volunteer Initiatives: Engage in community service or volunteer initiatives that align with your fair trade values, promoting your business’s commitment to ethical practices.
• Referral Programs: Introduce a referral program that rewards customers who bring in new business, encouraging them to promote your brand actively.

Using these simple yet effective methods, you can raise awareness about your fair trade business, attract customers, and establish a strong foundation for growth and success.

See, How To Get Customers Through the Door and our marketing section to provide ideas to help you bring awareness to your business.

Strategic Business Partnerships for Referrals:

Collaborating with other businesses can be mutually beneficial, driving referrals and enhancing customer experiences.

You can establish fruitful partnerships that contribute to both parties’ growth by offering referral incentives.

Here are some businesses you could approach:

• Local Cafes or Restaurants: Partner with cafes or restaurants to cross-promote each other’s businesses. You could offer fair trade products for their customers, and they could recommend your products to their patrons.
• Eco-Friendly Retailers: Collaborate with eco-friendly retail stores to create a synergy between your fair trade products and their sustainable offerings.
• Wellness and Yoga Studios: Establish a partnership with wellness centers or yoga studios that align with your ethical values, offering their clients fair trade goods as part of a holistic lifestyle.
• Artisan Markets: Connect with local artisan markets or craft fairs where you can showcase your fair trade products and build relationships with potential customers.
• Ethical Fashion Brands: Partner with ethical fashion brands that share your commitment to sustainable practices. Collaborate on joint promotions or events.
• Online Eco-Marketplaces: Join online platforms focusing on eco-friendly products and fair trade practices, expanding your reach to a larger audience.
• Green Initiatives: Approach organizations or businesses focused on environmental sustainability, offering fair trade products as part of their initiatives.
• Educational Institutions: Partner with schools, colleges, or universities emphasizing social responsibility. Your fair trade products could align with their values.
• Community Organizations: Collaborate with nonprofit organizations that work towards social causes, offering fair trade products to support their missions.
• Corporate Sustainability Programs: Engage with companies with sustainability programs, providing fair trade options for employee benefits or corporate gifting.
• Eco-Tourism Agencies: Connect with eco-tourism agencies that value responsible travel, offering fair trade products as part of travel packages.
• Online Influencers: Collaborate with ethical and sustainability-focused influencers who can introduce your fair trade products to their engaged audiences.
• Social Enterprises: Partner with other social enterprises that share your commitment to positive impact, amplifying each other’s efforts.
• Cultural and Art Centers: Approach cultural centers or art galleries that align with your values, offering fair trade products inspired by cultural traditions.
• Green Workshops: Collaborate with workshops or events centered around eco-friendly living, where your fair trade products can be showcased.
• Charitable Foundations: Connect with foundations that support causes related to fair trade, offering your products for fundraising events.

When approaching these businesses, emphasize how the partnership can benefit both sides.

You could offer their clients referral commissions, joint marketing efforts, or exclusive discounts. Building meaningful relationships with strategic partners can increase referrals, brand exposure, and a shared commitment to ethical practices.

Leveraging Your Skill Set for Fair Trade Success:

Focusing on your skill set is crucial when starting and running a fair trade business.

Your abilities and competencies play a significant role in ensuring efficient operations and sustainable growth.

Evaluating whether you possess the right skills is essential for your business’s success.

Skill Enhancement or Delegation:

If you identify any gaps in your skill set, there are two strategic paths to consider:

• Skill Enhancement: If you lack a necessary skill, you can learn and develop it. Taking courses, attending workshops, or self-study can equip you with new capabilities vital to running your business effectively.
• Hiring: Alternatively, hiring someone with the required proficiency is a wise move if a particular skill is critical but outside your expertise. This ensures you have the right talent to address crucial aspects of your business.

Essential Skills for a Fair Trade Business Owner:

As a fair trade business owner, possessing various skills contributes to your business’s success. Here are some essential skills to cultivate or acquire:

• Entrepreneurial Spirit: A strong drive, innovative thinking, and willingness to take calculated risks are essential traits for any business owner.
• Ethical Awareness: A deep understanding of fair trade principles and ethical business practices is fundamental to your venture’s core values.
• Communication: Effective communication ensures you can convey your business’s values, engage customers, and build relationships with partners and employees.
• Marketing: The ability to develop a marketing strategy, promote your products, and reach your target audience is vital for business growth.
• Financial Management: Understanding basic financial concepts, budgeting, cash flow management, and analysis ensures your business’s financial health.
• Negotiation: Negotiating deals with suppliers, partners, and clients require effective negotiation skills to achieve favorable terms.
• Problem-Solving: Staying at identifying challenges, analyzing situations, and implementing effective solutions contributes to smooth operations.
• Time Management: Efficiently allocating time, prioritizing tasks, and managing deadlines are critical to maintaining productivity.
• Adaptability: The business landscape can change rapidly. Being adaptable enables you to navigate shifts and make informed adjustments.
• Leadership: If you plan to manage a team, leadership skills are essential to inspire, motivate, and guide your employees.
• Customer Service: Providing excellent customer service builds loyalty and positive word-of-mouth recommendations.
• Networking: Building and nurturing a network of industry contacts, suppliers, and potential partners can open doors for collaboration and growth.
• Technical Savvy: Basic technological skills are essential for managing online presence, e-commerce platforms, and digital marketing.
• Creativity: Creative thinking helps in product innovation, unique marketing strategies, and addressing challenges in novel ways.
• Cultural Sensitivity: Understanding diverse cultures and communities is important when dealing with fair trade products from various regions.
• Conflict Resolution: The ability to handle conflicts and disagreements effectively promotes a harmonious work environment.

Evaluating and enhancing your skill set empowers you to confidently and competently lead your fair trade business, ensuring your venture thrives while staying aligned with ethical and sustainable values.

Knowledge Is Power if You Use It!

Harness knowledge for empowerment.

Explore industry insights in the provided links to effectively inform your fair trade business’s startup and operational journey.

Trends and Statistics

Staying informed about industry trends and statistics empowers fair trade businesses to make informed decisions, anticipate shifts, and adapt for sustainable growth.

See the latest search results for trends and statistics related to the fair trade industry.

Fair Trade Associations

Trade associations provide insights into industry updates and foster valuable networking, benefiting fair trade businesses staying informed and connected.

See the search results related to fair trade associations and look at the benefits of Joining the Chamber of Commerce.

The Top Fair Trade Businesses

Analyzing successful fair trade businesses can spark innovation, reveal gaps for a competitive edge, and uncover overlooked opportunities, enhancing your strategic approach.

See the latest search results for the top fair trade businesses.

The Future of the Fair Trade

Researching the industry’s future equips aspiring fair trade entrepreneurs with foresight, guiding informed decisions, adaptation, and alignment with upcoming trends and demands.

See the search results for the future of the fair trade industry.

Researching pricing at the outset of a fair trade business enables competitive and sustainable pricing strategies, optimizing profitability while meeting customer expectations.

See the latest fair trade product prices.

Fair Trade Businesses for Sale

Benefits of Buying an Established Fair Trade Business:

• Immediate revenue from takeover.
• Bypassing the startup phase.
• Assured business viability.
• Clear insight into revenue, profit, and expenses.
• Existing customer base.
• Established business reputation.

Disadvantages of Buying an Established Fair Trade Business:

• Higher cost due to goodwill.
• Potential customer loss with operational changes.
• Inherited reputation, both positive and negative.

See the latest search results for a fair trade business for sale and others closely related.

Franchise Opportunities Related to a Fair Trade

A fair trade franchise has merits and drawbacks, warranting investigation before startup.

Exploring franchise options might reveal unconsidered fair trade-related opportunities.

Pros of Fair Trade Franchise Ownership:

• Utilize a proven corporate business model.
• Leverage existing brand reputation and marketing.
• Comprehensive understanding of the business beforehand.
• Corporate support.

Cons of Fair Trade Franchise Ownership:

• High initial costs.
• Limited autonomy for significant changes.
• Restricted to approved products/services.
• Adherence to the franchise agreement.
• Ongoing franchise fees.

While direct fair trade franchise matches might be limited, explore related industry franchises through this link.

See the latest search results for franchise opportunities related to this industry.

Customer Expectations

Analyzing customer expectations for fair trade products offers insight and the opportunity to surpass them.

It unveils unforeseen aspects, enhancing preparedness and overall offering.

See the search results related to customer expectations for fair trade products.

Expert Tips

Examining expert tips enhances skills for both novices and experts.

New perspectives aid experts, while novices gain insights to refine skills and knowledge.

See the latest search results for fair trade products  to gain tips and insights.

Fair Trade Business Insights

Exploring tips and insights sparks innovative ideas, prevents pitfalls in fair trade business, and enriches industry knowledge for sustainable growth.

See the latest search results about insights into running a fair trade business.

Fair Trade Publications

Publications are vital for staying current on fair trade business insights and trends, offering valuable updates to navigate the industry effectively.

See the search results for fair trade business publications.

Fair Trade Forums

Engaging in fair trade forums fosters networking and discussions.

These platforms provide insights into customer perspectives, aiding in better customer understanding and relationship-building.

See the latest search results related to fair trade forums.

Online or local courses enhance skills and knowledge for fair trade business success, offering valuable insights and continuous improvement opportunities.

See the latest courses that could benefit a fair trade business owner . Also, see our management articles for tips and insights for managing your business.

Fair Trade Blogs

Subscribing to fair trade blogs yields ideas and industry updates. Curate a valuable collection by subscribing and filtering based on relevance and value.

Look at the latest search results for fair trade blogs to follow.

Fair Trade News

News sources update fair trade-related media coverage, offering insights into industry developments and trends for informed decision-making.

See the latest results for fair trade news.

Explore YouTube’s videos for valuable fair trade business insights.

Spend time browsing to uncover priceless information and stay informed effectively.

Fair Trade business and related YouTube videos.

Privacy Overview

8 Tips for Building a Trade Show Business Plan

by Cardinal Expo | Nov 2, 2022 | Blog Posts | 0 comments

If you’re hoping to exhibit at multiple trade shows in a given year, or you want to get more involved in your industry’s trade show circuit, you’ll want to develop a trade show business plan. Also known as a “program,” a trade show business plan involves creating plans and strategies for exhibiting at multiple trade shows and conferences over a period of time. Programming is all about finding ways to ensure that you stay organized, intentional, and prepared throughout your exhibition experience. 

Here are 8 key tips to developing an effective trade show business plan:

• Plan Your Budget
• Set Your Goals Early
• Do Research on Shows and Exhibitor Requirements
• Put Together Your Dream Team
• Order Materials and Book Exhibit Space
• Make a Before, During, and After Plan
• Pack Smarter, Not Harder
• Manage Your Booth Logistics

Trade shows are an essential opportunity for businesses to show off their products, advertise their services, and make vital network connections. Planning ahead for your exhibit appearances—even up to a year in advance—gives your business ample time to set objectives and develop strategies to make the most of your time on the trade show floor.

1. Plan Your Budget

Planning your budget should be the first thing on the agenda for any organization looking to organize their next trade show program. There can be many unexpected costs and challenges associated with bringing your team and show booth to a new location. Getting a head start on the costs you can control will help minimize risk and maximize your spending potential.

Break Down the Costs

Breaking down the cost of your next expo appearance will help you figure out your spending potential in the long run. A brief estimated cost breakdown of an average event appearance is:

• Exhibiting space: 10% of budget
• Staffing and travel: 25% of budget
• Exhibit design: 40% of budget
• Show services and premiums: 25% of budget

Of course, this is subject to your unique circumstances. For example, if you’re reusing the same booth across multiple shows, you may spend less on exhibit design, shipping costs, and storage costs. Or if you’re exhibiting close to home, you might not need to spend as much on staffing, transportation, lodging, or meals.

Once you have your budget broken down, your decisions regarding your trade show business plan will become infinitely more efficient and cost effective. If you’re looking for even more tips, check out our blog post about trade booth design on a budget .

Plan for Multiple Shows

Is your team planning on exhibiting at multiple trade shows in a short time period? If so, you should plan ahead and use this to your advantage.

• Consider your exhibit itself. Think about the size and dimensions you’re allotted for your upcoming trade shows. With these in mind, you should seek to rent a trade show booth that can be used for multiple shows. This will save you large amounts of money on design, construction, and other fees.
• Optimize your shipping. Shipping can quickly become more costly than you expect. To reduce this cost, plan your shipping and logistics to be as streamlined as possible. Try to ship your materials directly from one trade show to the next, rather than back to your business or a warehouse. Not only will this cut back on storage costs, but it also significantly reduces your shipping time and costs.
• Use variable branding. If you’re going to multiple trade shows, chances are that they won’t represent the exact same subject matter, culture, and attendee demographic. But rather than making completely separate exhibit designs and branded materials for each show, consider which designs can be kept the same and which should be customized to each event. When possible, prioritize the designs that will remain the same in more prominent areas of your exhibit that are harder to switch out. That way, you can make the most of your designs while streamlining the process to swap out any custom elements.

2. Set Goals Early & Develop Strategies

Before officially registering for any given trade show or convention, you’ll want to determine the goals you most want to achieve as an exhibitor. There are a few questions you may want to reflect on when setting your exhibition goals:

• How will exhibition opportunities best serve your overall marketing plan? 
• Are there any areas of emphasis you want to focus on as an exhibitor? (For example, product sales, networking, etc.) What metrics will help you best track your goals?
• What exhibiting environments are most popular or available within your industry? (For example, trade shows, professional association conventions, etc.) How might each potential show environment serve your business?
• How does exhibiting factor into your business or marketing budget? 

Setting these objectives in advance helps businesses develop realistic budgets, determine achievable goals, and create clearer strategies for trade show success. By stating these expectations outright, your team will have a better understanding of what they hope to achieve during the show and why it is so important to the company. You can also have a plan in place for how to measure trade show effectiveness and ROI before, during, and after a show.

3. Do Research on Shows and Exhibitor Requirements 

Creating a robust trade show business plan requires you to research the shows you’re most interested in participating in. Determine the timing and geographic distance between each show to help you decide which shows you could easily attend, and which you may need to miss. 

You’ll also want to know what each specific trade show or convention requires in terms of booth sizing and shipping, exhibitor deadlines, and venue regulations. Each show has its own policy about times for transporting booth displays and materials, and you also want to comply with the venue’s booth size limitations . You don’t want to order a booth that is too big, or have your display arrive late. 

Once you understand the exhibition requirements of your intended shows and venue, you can adapt your trade show business plan to those expectations. For example, if you want to be able to demonstrate how your products work in real time for exhibit attendees, you may want to consider your options for larger booth spaces and displays .

4. Put Together Your Dream Team

In-house staff.

Your trade show team can make or break your success at the exhibition, so put together an expo team that showcases the best your business has to offer. Developing a strong, well-prepared exposition team will help your business maintain a consistent presence at trade shows now and into the future. 

Before any given show, confirm that your chosen team members will be able to attend the show, and make the travel arrangements ahead of time to save money. When prepping your show team, ensure that your chosen team members are well versed in not just all aspects of your products and services, but also your trade show business plan.

The more closely your employees understand the purposes of your business’ role at this trade show, the better equipped they’ll be to help you meet these objectives and focus on what matters at the expo. It’s best to invest in training for internal staff to make sure they’re well-prepared, since trade show sales are a different skill set than other sales.

Third-Party Staff

There’s more to building your dream team than just your employees. To have a successful exhibit at a trade show, you should consider how much third-party support you’ll need to assist your team to perform their best.

Most businesses will need to outsource the design and build of their booth to professional trade show designers like us. At Cardinal Expo, we also handle all the logistics, shipping, planning, budgeting, and other tasks associated with your booth, taking significant management work off your plate.

You may also want to consider hiring an outside sales team to help handle the influx of visitors you could receive at a trade show. They’ll have the skills needed to attract people at a trade show, but you’ll need to educate them on your products and sales process. It often works best to staff some of your own team members at the booth as well, so the outside sales staff can pass any customers along who require more in-depth knowledge of your company and offerings.

5. Book Exhibit Space and Order Materials 

Designing and ordering your trade show displays is one of the most exciting parts of any trade show business plan. However, only order your display materials after finalizing your trade show strategy and finalizing your exhibit space with your trade show. To get your first choice of booth space , try to secure your spot as early as possible.

Your trade show materials can include smaller items like giveaway prizes and promotional merchandise , to your booth display and design features. Designate a lead team member to fill out event registration forms and keep an eye on when space registration times open. Some trade show service partners can help guide you through the paperwork for your show and venue.

6. Make a Before, During, and After Plan

For exhibitors, there are many different stages to a trade show. To keep track of all your teams’ responsibilities during this process, create pre-show, day-of-show, and post-show timelines and checklists for your crew members. Keep regular track of these timelines and checklists to help hold you and your team accountable to your responsibilities, and update these documents whenever any changes are made or items are completed. 

To make sure there are no surprises and that every team member knows their designated role, determine who will be working event set-up, out on the floor , and material breakdown. As your team gains more experience in the expo circuit, you might also consider developing trouble-shooting guidelines that outline the best course of action your team has developed for when things don’t go exactly to plan. 

7. Pack Smarter, Not Harder

Between product samples, company literature, stands and other organizational elements, and more, it can be easy to overpack. Develop a packing list and plan that clearly outlines the exhibiting materials you’ll be bringing to the show, whether they’ll be shipped or brought in by your team, and any other relevant details.

To make sure your team isn’t rushing to transport materials at the last minute, plan outbound shipping in advance, especially if the show is far out from your location. Many trade shows provide exhibitors with instructions for packing up displays, so familiarize yourself with any materials provided by the expo or venue. 

When packing, be sure to avoid overpacking your bags or boxes, since your materials could easily be damaged under the strain. Invest in quality packing materials like padding and bubble wrap to transport delicate or expensive materials. And try your best to leave some additional room in your bags for the trip home—you’ll likely receive a lot of materials during the show, as well.

8. Manage Your Booth Logistics

Shipping a trade show exhibit has more steps to it than a singular package delivery. Additional steps should be taken to ensure everything arrives at the exhibition safely:

• Inform the carrier of unloading deadlines for the trade show, allowing a buffer of time for possible delays.
• Create a detailed list of all items being shipped. Include how many items, boxes, pallets, etc. are included in your shipment.
• Inform the carrier of the total dimensions and weight of the shipment to ensure they have the appropriate accommodations.
• List the trade show, the venue address, and booth number in your shipping description.
• Make sure all parties have a record of move-in and breakdown dates to ensure quick and easy installation and cleanup. 
• Consider insuring your exhibit materials. Most carriers will only pay for a small portion of exhibit value if it gets damaged without insurance. Many carriers offer coverage policies, or the business can purchase cargo insurance . All-risk policies ensure the materials are covered on a “all risks”, including external physical loss or damage while in standard transit. 

Though it may cost a few extra dollars, paying shipping services to track deliveries is another vital step in reducing stress as a trade show approaches. Tracking helps exhibitors see when packages are in transit, who is transporting them, and where it is delivered. 

No Trade Show Business Plan is Complete without Cardinal Expo 

Need a hand executing your trade show program? Cardinal Expo can help. We’ve been working in the trade show industry for 28 years and are happy to offer our expertise to exhibiting newcomers and veterans, alike. We offer a variety of trade show services , from booth rentals and custom products to supportive staff to help you from planning to display breakdown. Contact us today to see how we can help you level up your expo experience.

Contact Us Today

We at Cardinal Expo are here to answer any questions you may have, provide you with additional information, and create an effective solution for your exhibit needs.

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Trade up, trade down or stay put in 2024 NFL Draft: The best plan for all 32 teams in the first round

Which clubs are best suited to move around the board.

The 2024 NFL Draft is just around the corner, and the order for all 257 picks is set. Except it really isn't, because draft day often brings a flurry of movement from most of the league's 32 teams. Plenty of early first-round selections could stay in place as quarterback-needy clubs look to fill the most important position, but just as many could be moved via trade.

Which teams are best suited to trade up, trade down or simply stay put? Here's our proposal for every squad:

1. Bears -- Stay put

With Justin Fields jettisoned, everything hinges on their ability to secure a difference-maker at quarterback. And all indications are that Caleb Williams can be that guy. Having another top-10 pick helps offset the appeal of a spicy trade down.

2. Commanders -- Stay put

They need a quarterback as badly as anyone, but even if they're mildly sold on more than one prospect not named Caleb Williams, it doesn't pay to get cute with a move down. Get your guy and live with your decision.

3. Patriots -- Stay put

This is the rare draft where each of the top three teams clearly need quarterbacks and clearly have top-three talents from which to choose. The Pats need to ace the rest of their draft to support their new signal-caller, however.

4. Cardinals -- Trade down

Odds are they'll have the first crack at the top wide receivers of this class, and Kyler Murray sorely needs a weapon. But in such a rich crop of pass catchers, they can afford to increase their draft haul by dropping a few slots.

5. Chargers -- Trade down

Securing a top tackle or wideout would be nice. Bolstering draft capital to replenish a lineup that lost key veterans due to financial constraints would be even nicer. Jim Harbaugh needs to restore Justin Herbert's foundation.

6. Giants -- Trade down

New York is in a tough spot of probably needing another quarterback while also needing to fill a slew of other holes. If they're truly sold on, say, J.J. McCarthy and he's on the board, maybe it's worth the gamble. Otherwise, they just need more dart throws.

7. Titans -- Stay put

After a surprisingly splashy offseason of veteran spending, the Titans could now use a blue-chip building block, be it a bookend to keep Will Levis upright or a corner to pair with L'Jarius Sneed . They should be able to find one here.

8. Falcons -- Trade down

Kirk Cousins ' arrival means Atlanta is focused on winning sooner rather than later, so standing pat may seem most logical. But their top needs -- wideout, edge, corner -- could all be filled with a slight move down that also nets an additional swing.

9. Bears -- Trade down

Walking away with two top-10 prospects would be just fine, especially if it means pairing a new signal-caller with an elite pass-catching option like Rome Odunze. But they only have four picks total , and a slight move down could easily improve that.

10. Jets -- Stay put

They're in a weird position of needing to capitalize on the Aaron Rodgers window while also considering a post-2024/Rodgers world. The best way to do it is probably sitting tight and getting the best lineman or pass catcher available.

11. Vikings -- Trade up

There's a case to be made they could stay put and still end up with bona fide starting quarterback (see: Michael Penix Jr.). But they added an extra Day 1 pick to have flexibility. They might as well make sure they get their Kirk Cousins successor.

12. Broncos -- Trade up

You're gonna notice a trend here, among these quarterback-needy clubs just outside the top 10: All of them are squarely in the market for a signal-caller, and yet not all of them can afford to sit around. Denver's perhaps most desperate.

13. Raiders -- Trade up

Could they stand pat and wait to address quarterback on Day 2, if the board falls unfavorably? Sure. But even a move up for a top-ranked corner or tackle prospect would be worthwhile under new full-time coach Antonio Pierce.

14. Saints -- Trade down

No one refuses to rebuild like the Saints, but that doesn't mean they shouldn't be forward-thinking here. It's very possible they could drop a few slots and still address needs like tackle and edge rusher.

15. Colts -- Stay put

A splashy move up for another weapon to help Anthony Richardson would be fun, but the practical play is probably to let the board unfold and get the best perimeter player available, be it at wideout or corner.

16. Seahawks -- Trade down

Seattle could be a sneaky candidate to move up or even sit tight and use this pick on a Geno Smith successor at quarterback, but with no second-rounder in their possession, they could stand to field calls about a bump down the order.

17. Jaguars -- Trade up

The time is now to act in Jacksonville, with the rest of the AFC South loading up for what figures to be a tightly competitive 2024 race. Getting inside the top 15 might help them secure one of the top wideouts or cover men still available.

18. Bengals -- Stay put

Any team in "win-now" mode could be justified as a trade-up candidate, but this is right around the point in the first round where the Bengals should be able to patiently lock in an interior defender, if not another tackle or wide receiver prospect.

19. Rams -- Stay put

The one spot they could really stand to address is edge rusher, but this year's class isn't necessarily bound to fly off the board early, so they should have options. They do have an extra third-rounder in the event they need to jump up.

20. Steelers -- Stay put

A trade up could be necessary to prevent a top tackle or corner from escaping their grasp, but they could also find good value at one of those spots, or another area of need like guard or receiver, by waiting it out.

21. Dolphins -- Stay put

Interior line should be a focus, and most of the top prospects there should still be available by this point in the first. With no Day 2 picks at their disposal, they also can't be willy-nilly about a move way up the first-round board.

22. Eagles -- Trade up

Howie Roseman loves to wheel and deal on draft day, and once again it makes sense. The Eagles are trying to get back to the big game, and while they don't have a ton of glaring needs, a splashy investment at corner, tackle or edge could help.

23. Vikings -- Stay put

This pick is of course totally dependent on what goes down with their No. 11 selection. Odds are it'll be moved to another team if Minnesota looks to swing into the top 10 or even top five for a new quarterback.

24. Cowboys -- Stay put

A trade up might be nice, considering Dallas has done surprisingly little to upgrade its one-and-done lineup from last season. But they're also not overflowing with extra draft capital. Shoring up the O-line here seems like the right move.

25. Packers -- Trade up

Green Bay is an upstart contender after a strong finish to 2023 under new starting quarterback Jordan Love . Why not get aggressive to aid his defensive support -- or fortify the trenches -- in anticipation of a deeper playoff run?

26. Buccaneers -- Trade up

The Bucs are running it back with Baker Mayfield and the gang. But they haven't necessarily made major upgrades on either side of the ball. A move up could help them land a difference-making pass rusher or cover man.

27. Cardinals -- Stay put

This is another scenario where everything depends on their previous pick -- in this case, No. 4 overall. If Arizona stays put up top, this would be a prime spot for a trade. Otherwise, why not walk away with two first-round talents?

28. Bills -- Trade up

A trade down is just as feasible, considering Buffalo dumped so many proven veterans to cut costs this offseason. But they need some juice after stripping Josh Allen of weapons. A move up for a new wideout would help provide that.

29. Lions -- Trade down

Moving up is certainly possible considering they're in title-contention mode, but with zero picks for a long stretch between Rounds 3-5, a slight drop could help them add a Day 2 selection and round out spots like corner and pass rusher.

30. Ravens -- Stay put

As with most of the teams on the back end here, a trade up would also make sense, if they've got a specific playmaker in mind. Either way, it'd be nice to get Lamar Jackson another outlet considering the question marks at wide receiver.

31. 49ers -- Stay put

Perhaps no team enjoys a more complete, balanced roster, even coming off a Super Bowl defeat. By standing pat, they could still end up with quality depth up front or in the secondary, where they could use some added corner/safety depth.

32. Chiefs -- Trade up

All of a sudden, even after Marquise Brown's arrival, they might need another investment out wide, with Rashee Rice facing legal trouble. There's also corner, where L'Jarius Sneed's exit leaves a vacancy opposite Trent McDuffie .

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Govt Unveils New Plan to Link Traders to World Market

I nvestment and Trade CS Rebecca Miano has launched the Karibu Business Support Center to support budding and established traders, entrepreneurs and investors in Kenya.

Speaking during the launch on April 15, Miano said the Center will bring together the 20 scattered state agencies in the ministry under one roof hence easing service delivery.

She said part of the plan is to expose the local business owners to the regional and global markets.

“Facilitation of business enterprise access to the regional and global market. This will offer you (local entrepreneurs) trade facilitation services in one stop arrangement and after care services,” Miano said.

Besides, the Center will promote business linkages between the government and private sector, as well as business to business.

Miano explained that the Center will offer advisory services on manufacturing, investment, and trade.

According to the CS, Karibu Business Center will also facilitate the collection and dissemination of business information to entrepreneurs.

“We launch one of the support initiatives geared towards achieving our main objective of promoting and facilitating domestic and foreign investment, improving trade, and increasing exports,” the CS said.

How Karibu Business Support Center Promotes Ministries’ Goals

Miano emphasized that the Center aligns with the objectives of her ministry which includes facilitation of both domestic and foreign direct investments.

She added that the Center will also increase the contribution of domestic trade and manufacturing to Gross Domestic Product (GDP).

“Kenya’s aspiration of attaining the status of a newly industrialized country by the year 2030 is premised on the creation of cumulative and sustainable trade, investments, and industrial activities,” she said.

“This calls for efforts to create a conducive environment for business and investment opportunities to be conceived and grown as viable entities.”

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The CS said President William Ruto recognizes the pivotal role played by businesses in driving the country’s economic growth of Kenya.

Miano stated that the government also recognizes the need for an efficient and streamlined service provision that facilitates business establishment and growth.

She explained that complex web of business regulations and procedures required to do business in Kenya pose a challenge to entrepreneurs and investors.

Online Portal & Location of Centers

According to Miano, the Center will offer a solution to these challenges by providing a one stop shop for all business needs.

“The Centre is not just mere brick-and-mortar establishments; it’s a symbol of our commitment to facilitating the ease of doing business in Kenya,” she said.

The Centre will simplify, streamline, and expedite investors’ business journey and their activities.

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“We understand that not everyone has the resources to travel long distances for assistance therefore, we launch a physical walk-in business support centre at the ministry’s headquarters, NSSF building on the 16 th building. Kisumu, Eldoret, Mombasa and Kariobangi South in Nairobi,” she added.

The Centers will be staffed with personalized government experts who will provide answers to trader’s questions and address their business concerns.

CS Miano also launched the Karibu business support online portal that will enable traders to access comprehensive business information online.

It will also offer seamless contact with government agencies on matters of investment, industry and trade, ensuring timely resolution of your questions and concerns.

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The White House 1600 Pennsylvania Ave NW Washington, DC 20500

U.S-EU Joint Statement of the Trade and Technology   Council

Leuven, Belgium

I. Introduction

The sixth ministerial meeting of the Trade and Technology Council (“TTC”) took place in Leuven, Belgium, on 4 and 5 April 2024. It was co-chaired by European Commission Executive Vice President Margrethe Vestager, European Commission Executive Vice President Valdis Dombrovskis, United States Secretary of State Antony Blinken, United States Secretary of Commerce Gina Raimondo, and United States Trade Representative Katherine Tai, joined by European Commissioner Thierry Breton, and hosted by the Belgian Presidency of the Council of the European Union.

The meeting took place against the backdrop of significant geopolitical developments and challenges, including Russia’s unprovoked and unjustified war of aggression against Ukraine and the escalation of violence in the Middle East, that have shaken the international rules-based order to which we are jointly committed. The United States and the European Union remain unwavering in our long-term political, financial, humanitarian, and military support to Ukraine.

There has been a buildup of global economic pressure through extensive non-market policies and practices. This accentuates excessive and possibly high-risk dependencies of strategic supplies, tilts the level playing field, and poses a threat to our economic security, our prosperity, and the well-being of our firms, workers, and citizens.

The acceleration of the digital transformation creates unprecedented opportunities for growth and innovation but also raises numerous risks and challenges that call for accelerating our efforts to establish joint leadership and continue robust coordination on our approaches for creating rules of the road for emerging technologies, such as artificial intelligence (AI), quantum technologies, and 6G wireless communication systems. We aim to foster interoperability and support our common democratic values and the protection of human rights, while also promoting innovation. We are also dedicated to continuing to equip our workforce with the skills necessary to meet the needs created by rapidly changing technology, including AI.

The cooperation between the United States and the European Union continues to be the bedrock for dealing with such global challenges, and the TTC has played a vital role in shaping a forward-looking dialogue and facilitating unprecedented coordination and quick responses to key trade and technology related issues and developments, not least in the context of Russia’s continued aggression against Ukraine. We therefore reaffirm the importance of the TTC and will continue to refine and adapt this forum to advance our shared objectives.

We have used the TTC to address global trade challenges, strengthen our economic and trade ties, accelerate the transition to climate-neutral economies, and boost our economic security. With the Transatlantic Initiative on Sustainable Trade (TIST), the TTC is contributing to the creation of a stronger, more sustainable, and more resilient transatlantic marketplace and facilitating environmentally responsible trade in goods and technologies. We have increased cooperation on interoperability of digital trade tools as well as standardisation of critical and emerging technologies to reduce the costs of trading across the Atlantic. To boost our economic security, we continue to cooperate through the TTC to diversify strategic supply chains, including solar panels, semiconductors, and critical raw materials, and to reduce vulnerabilities, including those caused by other countries’ non-market policies and practices. We have also deepened our dialogue and cooperation on export controls and investment screening.

Working with stakeholders, we continue to use the TTC to advance the governance of critical and emerging technologies, such as artificial intelligence, quantum technologies, semiconductors, biotechnology, and online platforms, including by supporting the development of rights-respecting international technical standards, codes of conduct, principles, and guidance. In particular, we call upon online platforms to ensure their services contribute to an environment that protects, empowers, and respects their users and the general public. We are working together to advance public interest research on online platforms, including to address particular societal risks, such as technology-facilitated gender-based violence. We will continue to combat foreign information manipulation and interference and to protect human rights defenders online, including in the context of elections.

We intend to continue our trade and technology cooperation as set out below.

II. Key Outcomes of the Sixth TTC Ministerial Meeting

A. Advancing Transatlantic Leadership on Critical and Emerging Technologies Artificial Intelligence

The United States and the European Union reaffirm our commitment to a risk-based approach to artificial intelligence (AI) and to advancing safe, secure, and trustworthy AI technologies. The dedicated coordination under the TTC continues to be instrumental to implementing our respective policy approaches which aim to reap the potential benefits of AI while protecting individuals and, society against its potential risks, and upholding human rights.

Our exchanges confirm our joint understanding that transparency and risk mitigation are key elements to ensure the safe, secure, and trustworthy development and use of AI, and we will continue to coordinate our contributions to multilateral initiatives such as the G7, the OECD, G20, Council of Europe, and UN processes to advance the responsible stewardship of AI. We encourage advanced AI developers in the United States and Europe to further the application of the Hiroshima Process International Code of Conduct for Organizations Developing Advanced AI Systems which complements our respective governance and regulatory systems.

With a view to ensuring continued and impactful cooperation on AI, leaders from the European AI Office and the U.S. AI Safety Institute have briefed one another on their respective approaches and mandates. These institutions today committed to establishing a Dialogue to deepen their collaboration, particularly to foster scientific information exchange among their respective scientific entities and affiliates on topics such as, benchmarks, potential risks, and future technological trends.

This cooperation will contribute to making progress with the implementation of the Joint Roadmap on Evaluation and Measurement Tools for Trustworthy AI and Risk Management , which is essential to minimize divergence as appropriate in our respective emerging AI governance and regulatory systems, and to cooperate on interoperable and international standards. Following stakeholder consultations, we have further developed a list of key AI terms with mutually accepted joint definitions and published an updated version .

We are also united in our belief of the potential of AI to address some of the world’s greatest challenges. We applaud the United Nations General Assembly Plenary Resolution “Seizing the Opportunities of Safe, Secure and Trustworthy Artificial Intelligence Systems for Sustainable Development,” that has solidified a global consensus around the need to manage the risks of AI while harnessing its benefits for sustainable development and the protection and promotion of human rights.

We are advancing on the promise of AI for sustainable development in our bilateral relationship through joint research cooperation as part of the administrative arrangement on artificial intelligence and computing to address global challenges for the public good. Working groups jointly staffed by U.S. science agencies and European Commission departments and agencies have achieved substantial progress by defining critical milestones for deliverables in the areas of extreme weather, energy, emergency response, and reconstruction . We are also making constructive progress in health and agriculture.

We will continue to explore opportunities with our partners in the United Kingdom, Canada, and Germany in the AI for Development Donor Partnership to accelerate and align our foreign assistance in Africa to support educators, entrepreneurs, and ordinary citizens to harness the promise of AI.

The United States and the European Union established a Quantum Task Force to address open questions on science and technology cooperation between the United States and the European Union on quantum technologies. Its primary objective is to bridge gaps in research and development (R&D) between the United States and the European Union, thereby harmonizing efforts in quantum technology advancements. This includes the establishment of a shared understanding and approach to technology readiness levels, development of unified benchmarks, identification of critical components in quantum technology, and advancement of international standards.

The task force continues work to address key questions that are necessary to reach an agreement on launching joint actions for science and technology cooperation in quantum, such as reciprocity in openness of quantum research programs and in intellectual property rights regimes.

Post-Quantum Cryptography Coordination

The United States and the European Union affirm the importance of the rapid mobilization to secure our digital communication networks against the threats posed by the potential for a future cryptanalytically-relevant quantum computer. Our joint work in Post Quantum Cryptography (PQC), feeding into the U.S-EU Cyber Dialogue, enables U.S. and EU partners to share information to understand activities in PQC standardization and in the transition to PQC.

The Road to 6G

The United States and the European Union share the belief that advanced connectivity can  facilitate a more inclusive, sustainable, and secure global economy. We concur on shared principles for the research and development of 6G wireless communication systems, and we recognize that by working together we can support the development of technologies and global technical standards for tomorrow’s critical digital infrastructure that reflect shared principles and values. We support open, global, market-driven, and inclusive multi-stakeholder approaches for the development of technical standards for secure and interoperable telecommunications equipment and services. On the road to 6G, in a geopolitical environment increasingly marked by tension and conflict, the growing requirement for security and resilience of key enabling communications technologies and critical infrastructure highlights the need to rely on trusted suppliers, to prevent vulnerabilities and dependencies, with potential downstream effects on the entire industrial ecosystem.

We delivered a 6G outlook in May 2023. In addition, the two main industry associations on each side of the Atlantic jointly developed a 6G Industry Roadmap in December 2023. The roadmap affirmed the commitment of the stakeholders to collaborate on the development of 6G networks and proposed a comprehensive set of critical strategic reflections and recommendations from academia and industry. On 26 February 2024, ten countries, including some EU Member States concluded a joint statement on 6G .

These milestones have contributed to shaping the joint “ 6G vision ” that we are adopting today. This vision focuses on technology challenges and research collaboration including on microelectronics; AI and cloud solutions for 6G; security and resilience; affordability and inclusiveness, sustainability and energy efficiency; openness and interoperability; efficient radio spectrum usage; and the standardisation process.

Having decided on this 6G vision, the United States and the European Union will strengthen cooperation between their research and innovation funding agencies, notably through an Administrative Arrangement signed between the U.S. National Science Foundation (NSF) and the Directorate‑General for Communications Networks, Content and Technology (DG Connect) of the European Commission covering collaboration in the field of 6G and Next Generation Internet technologies.

Considering the importance of developing a common vision to 6G and cooperating in the global standardisation process through standardisation organisations such as ETSI/3GPP, we also intend to develop an outreach plan with likeminded partners to support and advance the development of 6G networks.

Semiconductors

The coordination on our respective efforts to build resilient semiconductor supply chains remains crucial to the secure supply of semiconductors, which are indispensable inputs to an ever-growing range of key industry sectors, and to ensure leadership in cutting-edge technologies.

We have been cooperating fruitfully under two administrative arrangements:

• A joint early warning mechanism aimed at identifying (potential) supply chain disruptions and enabling early action to address their impacts, which has already proven useful in monitoring developments in the gallium and germanium markets; and
• A transparency mechanism for reciprocal sharing of information about public support provided to the semiconductor sector.

We intend to extend the two administrative arrangements for a period of three years to enable further coordination and to establish synergies between our support for investments in the semiconductor sector taking place under the EU Chips Act and the U.S. CHIPS Act.

The United States and the European Union share concerns about non-market economic policies and practices that may lead to distortionary effects or excessive dependencies for mature node (“legacy”) semiconductors. On the side of the fifth TTC ministerial meeting, which took place on 30 January 2024 in Washington, D.C., we held a joint roundtable with high-level industry representatives dedicated to legacy semiconductor supply chains. Both the United States and the European Union are committed to continuing to engage closely with industry on the issue. We plan to convene further government-to-government discussions with like-minded countries on this topic in the near future. In January 2024, the United States launched an industry survey to assess the use of legacy chips in supply chains that directly or indirectly support U.S. national security and critical infrastructure. The European Union is also gathering information on this issue. We intend to, as appropriate, continue to collect and share non-confidential information and market intelligence about non-market policies and practices, commit to consult each other on planned actions, and may develop joint or cooperative measures to address distortionary effects on the global supply chain for legacy semiconductors.

We plan to continue working to identify research cooperation opportunities on alternatives to the use of per- and polyfluorinated substances (PFAS) in chips. For example, we plan to explore the use of AI capacities and digital twins to accelerate the discovery of suitable materials to replace PFAS in semiconductor manufacturing.

Biotechnology Cooperation to Promote the Bioeconomy and Address Global Challenges

The bioeconomy is supported by the use of foundational and widely-applicable tools and technologies (including emerging biotechnologies), which have the potential to drive innovation to address global challenges. .These tools and technologies also represent an opportunity to begin developing a common international understanding of the bioeconomy and future efforts to evaluate, measure, and grow the global bioeconomy as a whole. A crucial component of this effort is establishing a shared understanding of some of the risks and vulnerabilities associated with the bioeconomy, including economic and security considerations, alongside a simultaneous commitment to enabling the safe, secure, sustainable, and responsible use of tools and technologies for bioeconomic development.

We look forward to cooperating on shared research, development, and innovation priorities through the U.S.-EU Joint Consultative Group that will push bioeconomic development forward in ways that address the most pressing global challenges we all face.

We acknowledge the significant promise and risks associated with the integration of advanced biotechnology with other technological disciplines such as AI, information technology, nanotechnology, neurotechnology, chemistry, and medicine, which will drive innovation and have significant implications for academia, industry, and economic security. To address the potential risks associated with the convergence of these technologies, we are committed to work toward mechanisms to safeguard dual-use advanced biotechnology items and equipment.

Transatlantic Cooperation on Standards for Critical and Emerging Technologies and Clean Energy Transition

The United States and the European Union share an interest in recognizing mutually compatible technical standards as a way to expand transatlantic approaches for the deployment of critical and emerging technologies that reflect our shared values.

We plan to continue to exchange information on international standardisation activities for critical and emerging technologies via the “Strategic Standardisation Information (SSI)” mechanism, as established at the second U.S-EU TTC ministerial meeting. Our deepened cooperation enables us to cooperate on global standards. In order to strengthen collaboration with the private sector, we organised a joint stakeholder workshop in Washington D.C. on 17 November 2023, which identified relevant areas for transatlantic collaboration.

Together with standards development organisations and stakeholders, we have endeavoured to work towards mutually compatible standards and best practices in areas of strategic interest with the objective of avoiding unnecessarily burdensome technical trade barriers, without prejudice to the specificities and needs of our respective legal systems.

Over the last two years, our cooperation has led to tangible outcomes. We have facilitated commonly recognised international standards for the rollout of megawatt charging systems for heavy-duty vehicle charging points, and joint work of U.S. and EU standardisation bodies on plastics recycling and additive manufacturing since the start of the TTC. Our work continues to facilitate the development of mutually recognised and compatible standards to enhance new opportunities for cooperation within our respective standardisation systems.  

Following a successful round of government-to-government technical exchanges, the European Commission and U.S. government released a Digital Identity Mapping Exercise Report Digital Identity Mapping Exercise Report which provides the results of an initial mapping centred on the definitions, assurance levels, and references to international standards included across Revision 3 of the NIST Digital Identity Guidelines ( Special Publication 800-63, Revision 3 ) and European Regulation  (EU) No 910/2014  on electronic identification and trust services for electronic transactions in the internal market. The next phase of this project will focus on identifying potential use cases for transatlantic interoperability and cooperation with a view toward enabling the cross-border use of digital identities and wallets.

The United States and the European Union intend to continue to identify emerging technology standards that are enablers of the clean energy transition for transatlantic collaboration. B. Promoting Sustainability and New Opportunities for Trade and Investment 

Transatlantic Initiative on Sustainable Trade 

The Transatlantic Initiative on Sustainable Trade (TIST) work programme, which we launched at the fourth U.S-EU TTC ministerial meeting in May 2023, has advanced our cooperation on actions to accelerate the transition to climate-neutral economies in the United States and the European Union in a mutually beneficial way. The United States and the European Union have been making progress on the different work strands under the TIST work programme and will continue to advance this work.

Building a Transatlantic Green Marketplace

Building on our strong economic links to accelerate the green transition while creating new business opportunities for our firms and good employment opportunities for our citizens is a key objective of the TIST.

On 30-31 January 2024, the United States and the European Union jointly organised the “ Crafting the Transatlantic Green Marketplace ” event in Washington, D.C. The event brought together representatives from the U.S. and EU business, civil society, and labor communities to engage in a series of thematic stakeholder-led discussions that focused on identifying opportunities for transatlantic collaboration to promote the transition to a more sustainable and climate-neutral economy on both sides of the Atlantic. The United States and the European Union thank the participants for their time and input. We are currently analysing the various proposals for cooperation received from the stakeholders to assess their potential to be taken forward.

In addition, the United States and the European Union will continue various efforts under the TIST umbrella, including exploring potential avenues of cooperation on conformity assessment.

Green Public Procurement

The United States and the European Union underscore that, by achieving a common understanding on green public procurement practices, we can accelerate the uptake of more sustainable and greener solutions to achieve our common environmental and climate goals.

To this end, we have issued a Joint U.S.-EU Catalogue of Best Practices on Green Public Procurement . It will contribute to advancing sustainability objectives by identifying and promoting policy tools for accelerating the deployment of publicly financed sustainability projects in the United States and the European Union.

The Joint Catalogue presents a collection of policies, practices, and actions used across all stages of the procurement process, from the strategic planning to pre-procurement, procurement, and post-contract award stage, and addresses all types of environmental and climate challenges, such as reduction of greenhouse gas emissions, energy efficiency or promoting circular economy approaches. It can serve as an inspiration for policymakers and suppliers, as well as provide ideas for the uptake of green solutions in public procurement globally.

The United States and the European Union will continue to work together on how to use the Joint Catalogue and maximise its impact.

Secure and Sustainable Supply Chains for the Clean Energy Transition

The United States and the European Union reaffirm that secure and sustainable transatlantic supply chains are key for a solid and steadfast transition towards a net zero economy and will help reduce excessive dependencies in strategic economic activities. We intend to continue to cooperate on strategic supply chains, such as solar, to help us increase secure supply of clean energy. The United States and the European Union share common challenges in the solar sector and reaffirm the importance of a dedicated workstream that explores ways to jointly support our photovoltaic manufacturing capacity (including equipment) and to diversify and de-risk this supply chain.

The United States and the European Union also continue efforts to promote transparency and traceability to improve social standards and environmental protections across supply chains that support the green transition. In this context, we are planning a workshop with stakeholders to present ongoing initiatives to promote innovative solutions in the management of sustainable supply chains, including a focused session on solar.

U.S-EU Clean Energy Incentives Dialogue

The United States and the European Union share a strong commitment to tackling the climate crisis. We want to further the growth of the global clean energy economy while establishing resilient, secure, and diverse clean energy supply chains. By strengthening and expanding clean energy industries and investing in future-oriented sectors, we generate jobs, ignite a positive cycle of innovation, and decrease costs for clean energy technologies.

Through the U.S-EU Clean Energy Incentives Dialogue, we continue to work in a transparent and mutually reinforcing manner, to avoid zero-sum competition, subsidy races and distortions in transatlantic trade and investment flows that could arise from our respective policies and incentives. In this way, we strive to maximise clean energy technology deployment that creates jobs and does not lead to windfalls for private interests. To further enhance transparency, we intend to share specific information about our respective public incentive programs starting with one sector as a pilot with the possibility to extend this to further sectors in the future and will explore putting in place a reciprocal mechanism for consultations.

We share concerns about a range of third country non-market policies and practices. We have discussed thoseused by certain third countries to attain a dominant global position in clean energy sectors, and recognise the value of continuing to exchange information on such non-market policies and practices. We will continue to explore policy tools and possible coordinated action to address harm caused by these policies and practices. including by fostering supply chain diversification, reducing dependencies, and building resilience to economic coercion.

Critical Minerals

The United States and the European Union affirm their close collaboration on diversifying global critical minerals supply chains. We welcome the launch of the Mineral Security Partnership ( MSP) Forum , which we will co-chair. The MSP Forum will formalize and expand its existing engagements with minerals producing countries, with a particular focus on advancing and accelerating individual projects with high environmental protections and social governance and labor standards and promoting discussion of policies that contribute to diverse and resilient supply chains.

Continuing our well-established cooperation on critical raw materials, a workshop on “Developing the permanent magnets value chain” resulted in valuable exchanges focussing on rare earth magnets. We plan to continue these exchanges in the future.

To promote a green transition, enhance economic security, and strengthen environmental protections and labor rights in international critical minerals supply chains, the United States and the European Union are advancing negotiations toward a Critical Minerals Agreement.

Transatlantic E-Mobility Cooperation

We welcome the successful completion of the Electro-mobility and Interoperability with Smart Grids workstream with the publication of the U.S-EU joint technical recommendations for “ Future Public Demonstrations of Vehicle-Grid Integration (VGI) Pilots ”. Devised in consultation with industry experts and stakeholders, the recommendations propose the development of best practices to prepare for large-scale VGI demonstrations, educate potential customers, and incorporate requisite customer-related factors in demonstration programme designs, and aim at supporting communication and coordination between the United States and the EU.

The recommendations complement the “ Transatlantic Technical Recommendations for Government Funded Implementation of Electric Vehicle Charging Infrastructure ,” which were presented at the fourth TTC ministerial meeting in May 2023 in Luleå, Sweden.

Together, the two sets of recommendations can benefit companies and end users, and transatlantic trade and investment, by supporting the expansion of e-mobility as well as the realization of U.S. and EU clean energy and de-carbonization commitments.

Enhancing eInvoicing Interoperability between the United States and the European Union

As part of our efforts to increase the use of digital tools that enhance trade, Electronic Invoicing (eInvoicing) has emerged as a transformative tool in modern business, offering efficiency gains, cost savings, and trade benefits. The continued cooperation and efforts towards compatible eInvoicing between the United States and the European Union. offer a spectrum of advantages, with the potential to significantly reshape cross-market transactions and the dynamics of transatlantic trade. Even though most of the eInvoicing technical specifications and profiles are highly aligned, there are differences between our respective eInvoicing systems. We intend to continue to cooperate and coordinate for greater compatibility, particularly in terms of business and technical interoperability, as outlined in the declaration annexed to this Joint Statement.

Trade and Labor in the Green Transition

Today, the United States and the European Union held their third session of the tripartite Transatlantic Trade and Labor Dialogue (TALD). This session brought together TTC principals and senior representatives from labor, business, and government from both sides of the Atlantic and continued the joint transatlantic work with social partners on the promotion of sustainable and responsible supply chains with strong protections for labor rights. Building on the discussions during the workshop on the “ Promotion of Good Quality Jobs for a Successful, Just and Inclusive Green Transition ” on 30 January 2024, the TALD meeting provided the opportunity to dive deeper and hear views from labor and business stakeholders on the topic of the green transition, with specific focus on the green transition and other challenges, and the future of TALD.

In addition, the United States and the European Union reaffirmed their commitment to cooperate to eliminate forced labor from global supply chains, as called upon in the labor and businesses stakeholders’ May 2023 joint recommendations, and they expressed the intention to continue technical dialogue to exchange information, as well as share best practices regarding the implementation of their forced labor policies, including with regard to research and risk assessment.

C. Trade, Security, and Economic Prosperity

Trade for Economic Security

Strengthening our economic security is a fundamental pillar of the transatlantic partnership. The TTC has helped provide a better understanding of our respective approaches to economic security. We intend to continue cooperation under the TTC to address common challenges using relevant trade and technology tools, bilaterally and in relevant fora, including the G7 and the World Trade Organization. We reaffirm shared concerns about the challenges posed to our economic security by, among other issues, economic coercion, the weaponization of economic dependencies, and the use of non-market policies and practices by third countries. We share the objective of continuing efforts to de-risk and diversify our trade and investment relations, including by reducing critical and excessive dependencies and strengthening the resilience of strategic supply chains.

Cooperation on Export Controls and Sanction-Related Export Restrictions

We continue to recognise the important role played by the TTC in supporting the European Union, the United States, and other international partners in their unprecedented cooperation on measures against Russia and Belarus. Such cooperation has helped bring about a continuous alignment of our regulations and a consistent application of export restrictions targeting Russia and Belarus through, for example, regular exchanges of information about authorisation and denial decisions. It has also supported coordination to counter the circumvention of our measures, such as through the creation and update of a common list of high priority items (CHP) and our outreach to industry.

We will continue to work to further align U.S. and EU priorities on Russian export restrictions and coordinated international messaging on those priorities to combat circumvention and improve efficiency and effectiveness of domestic controls. As regards the implementation of export restrictions against Russia, both sides welcome the setting up of the platform for the exchange of licensing information and plan to continue to exchange information on outreach activities, including to third countries and industry.

Both sides have also decided to continue work on facilitating secure high-technology trade and reducing administrative burdens in areas covered by export controls by developing a common understanding of respective rules and mapping out measures that would help streamline this trade, while maintaining a well-functioning and effective export control regime. For example, the United States has expanded licencing exceptions to EU Member States.

We welcome the impulse the TTC has given to coordinated action by the United States and the European Union in reaching out to other countries and supporting them in strengthening their export controls, for example, through the provision of secure software for the processing of licenses.

Investment Screening

We reiterate the importance of having effective foreign direct investment (FDI) screening mechanisms in place aimed at addressing national security risks in the United States and addressing threats to security and public order in the European Union. We welcome the progress in this regard and will continue to support the development and implementation of these mechanisms, while promoting an open and attractive investment environment.

We have carried out joint work to identify certain best practices on foreign direct investment screening with the intention to eventually bring these to the attention of screening authorities and stakeholders more broadly. We will soon launch of a joint repository that will provide additional resources to U.S. and EU Member State investment screening professionals. We have deepened our cooperation on investment screening through hosting a public stakeholder event and conducting outreach to like-minded partners in the Western Balkans to support their development of effective FDI screening mechanisms and intend to continue such outreach in 2024.

We will continue our cooperation on investment screening through technical exchanges, including on investment trends impacting security risks related to specific sensitive technologies to provide a better understanding of similarities and differences in approach.

Outbound Investment Security

We recognize the importance of investment, innovation, and open economies. At the same time, we are also attentive to concerns regarding potential security threats and risks to international peace and security that may arise from certain outbound investments in a narrow set of critical technologies. Against this background, the United States and the European Union will continue to exchange information on the security risks, risk analyses, and on our respective approaches around this issue, and how to address this new challenge.

Addressing Non-Market Policies and Practices

The United States and the European Union remain concerned about the persistent use of other countries’ non-market policies and practices and the challenge they pose both to our workers and businesses and to other third-country markets. We continue to exchange on the risks that non-market policies and practices, including non-market excess capacity, pose in certain sectors and to engage with partners where appropriate.

We engaged with other countries who share our concerns about China’s non-market policies and practices in the medical devices sector, and conveyed these concerns directly to China. The United States and the European Union will continue to monitor developments in the medical devices sector.

D. Defending Human Rights and Values in a Changing Geopolitical Digital Environment

Protecting Information Integrity in a Pivotal Year for Democratic Resilience

The United States and the European Union reiterate our unwavering commitment to support democracies across the world. We are determined to defend human rights and will continue to call out authoritarianism. In a year marked by democratic elections around the world, we call upon all actors including governments, industry, journalists, human rights defenders, and civil society to protect and defend information integrity both online and offline.

We express our strong support for the role of free, pluralistic, and independent media in protecting information integrity. Independent media should serve as a public watchdog and a key pillar of democracy, as well as an important and dynamic part of our economy. We recognize its indispensable role informing public opinion, fact-checking, and holding those in power accountable.

We are witnessing rapid technological advancements which provide opportunities to enhance information integrity but also create new risks. The United States and the European Union share the concern that malign use of AI applications, such as the creation of harmful “deepfakes,” poses new risks, including to further the spread and targeting of foreign information manipulation and interference (FIMI). We call upon technology companies and online platforms to uphold information integrity, including in the run-up to elections across the world.

In the European Union, the Digital Services Act (DSA) requires designated very large online platforms and search engines to assess and mitigate societal risks emanating from their services, including negative effects on civic discourse and electoral processes and recommends specific measures, including on generative AI content.

 Cooperation on Online Platforms

The United States and the European Union reaffirm their view that online platforms should exercise greater responsibility in ensuring that their services contribute to an online environment that protects, empowers, and respects their users. We reiterate that online platforms should take appropriate actions to address the impact of their services on the mental health and development of children and youth.

The United States and the European Union also reaffirm that urgent action is needed to address technology-facilitated gender-based violence, which disproportionately impacts women and girls, who often experience multiple and intersecting discriminations and oppressions. We developed a set of joint principles on combatting gender-based violence on online platforms that complement further the joint high-level principles on the protection and empowerment of children and youth and facilitation of data access from online platforms for independent research, which were released at the fourth TTC ministerial meeting. 

In addition to releasing these principles, we are also publishing a status report on mechanisms for researcher access to online platform data, which builds upon efforts undertaken by the academic and research community. The aim of this work is to disseminate information about the new and improved possibilities now available to study and understand systemic risks related to online platforms. We call on online platforms to expand and improve access for researchers, particularly on societal risks.

To deepen this work, in the margins of this Ministerial Meeting, we organized a joint workshop on access to platform data and using this data to combat technology-facilitated gender-based violence. We invited, and continue to encourage, the research community to analyse these data access mechanisms, and to explore how they can contribute to a better understanding of the functioning of – and the potential risks emanating from online platforms with regard to areas such as the mental health and development of children and youth, and technology-facilitated gender-based violence.

We share the commitment to the highest appropriate standards of protection in these areas for users in both the United States and the European Union.

Protecting Human Rights Defenders Online

The United States and the European Union recognise the key role human rights defenders (HRDs) play in defending human rights and fundamental freedoms, and we are committed to the protection of HRDs online and offline. We are working together to address human rights risks stemming from the misuse of digital technologies, including combatting internet shutdowns, unlawful surveillance, and the targeting of HRDs online. Elevating the critical role of HRDs and supporting and protecting them in doing their work safely is not only a shared foreign policy priority for the United States and the European Union, but an imperative for advancing human rights for all.

Following the commitment made at the fourth TTC ministerial meeting, we have published joint Recommended Actions for Online Platforms on Protecting Human Rights Defenders Online . This document sets out ten recommendations that online platforms can take globally to prevent, mitigate, and provide remedy for attacks against HRDs online.

These recommendations reflect commitments we made with global partners through the Declaration of the Future of the Internet and reflect key principles of U.S. and EU legislation, initiatives, and policies to safeguard human rights online. They were informed by extensive stakeholder consultations organized by the United States and the European Union from January 2023 to February 2024. The United States and the European Union intend to take further actions to address the needs of HRDs around the world. We will engage with all relevant stakeholders to promote the recommended actions and facilitate their implementation. We will also facilitate further exchanges and cooperation between the European Union- and United States-based emergency mechanisms on support strategies which seek to prevent, curb, mitigate, and eliminate online attacks, including the use of arbitrary and unlawful surveillance targeting HRDs.

Foreign Information Manipulation and Interference in Third Countries

The United States and the European Union consider foreign information manipulation and interference (FIMI) to be geopolitical and security challenges. We share the aim of addressing this threat and enhancing the resilience of democracies. Against this background, we have taken a number of actions to increase transatlantic cooperation to proactively address FIMI, including disinformation, while upholding human rights and fundamental freedoms. We will continue to work together to address FIMI through the TTC and other multi- and bilateral contexts.

We will continue to jointly use and further advance the common analytical methodology to identify, analyse and detect FIMI decided at the fourth TTC ministerial meeting. We are engaging with other international partners on a quarterly basis to familiarise them with this methodology. Expanding the network of partners familiar with this methodology will enhance our common understanding of the threat and allow us to jointly identify, analyse, and counter FIMI globally.

The European Union, the United States, and the Western Balkan partners share the same vision for an open, reliable, and secure Internet, as evidenced by their joint endorsement of the Declaration for the Future of the Internet. We will coordinate our efforts in order to support the Western Balkan partners by launching a coordination mechanism to address FIMI threats more effectively in the region. This is in line with the European Union’s and like-minded partners’ initiatives to increase their capabilities to further identify, assess, and counter FIMI. Our support will reduce third countries’, and in particular Russia’s and other actors’, including China’s, ability to effectively employ FIMI campaigns in the region. We will help our partners in the Western Balkans to develop capacity in five key action areas: the development of national strategies and policies, the creation of dedicated governance structures and institutions, increasing human and technical capabilities, protecting and supporting the role of independent media, academia, and civil society, and multilateral engagement.

Secure and Trusted Digital Infrastructure and Connectivity in Third Countries

The United States and the European Union reiterate the importance of and support for secure, trusted, and resilient digital connectivity and information and communication technology and services (ICTS) supply chains in third countries, provided by trusted suppliers.

We commend the decisions taken by partner countries towards trusted ICT ecosystems by ensuring high cybersecurity and resilience standards for connectivity solutions and networks, including by restricting or excluding high-risk suppliers from their national networks and using trusted vendors and services providers for maintenance and repair.

We will continue to reach out to partners across the world to understand the needs and challenges around securing digital infrastructure and explore how we can best collaborate to support the digitalisation goals of emerging economies. We continue to engage emerging economies through technical discussions and high-level roundtables to increase interest in secure digital connectivity. We also remain committed to continued exchanges with relevant industry actors such as mobile network operators and trusted equipment suppliers.

We are delivering on our commitments to support to secure and resilient connectivity projects in Costa Rica, Jamaica, Kenya, and the Philippines, including through mechanisms like the Global Gateway, the Partnership for Global Infrastructure and Investment, and technical exchanges, including third counties sharing experiences to accelerate secure connectivity in other parts of the region.

The United States and the European Union are supporting Tunisia’s goal of establishing secure digital connectivity and infrastructure by relying on trusted vendors through collaborative advocacy, technical assistance and by exploring financing, coordination, and policy alignment. This includes providing training programs to targeted Tunisian government agencies, IT professionals, and businesses, and promoting the development of cybersecurity standards and frameworks, in particular for 5G. The United States and the European Union are advancing discussions with relevant financial institutions for the mobilisation of support for secure digital connectivity infrastructure projects with trusted vendors.

We aim to continue our actions to support secure and resilient digital connectivity in third countries. Following the earlier signing of a memorandum of understanding between the European Investment Bank (EIB) and the U.S. International Development Finance Corporation (DFC), the United States and the European Union intend to augment their actions by furthering cooperation between the EU Member State and United States financing agencies. In 2023, the Export-Import Bank of the United States (EXIM) signed co-financing memorandums of understanding with the Swedish EKN and Finnish Finnvera respectively to facilitate joint support for export projects, and has enabled direct support to trusted suppliers from both sides.

We are committed to exploring options to act strategically, cooperatively, and efficiently to provide attractive incentives to partner countries to choose trusted suppliers for the development of their connectivity networks.

Secure and Resilient International Connectivity

The United States and the European Union recall the economic and geostrategic importance of cooperating on trust and security in the entirety of ICT infrastructure, including maintenance and repair. To this end, we continue to seek ways to advance cooperation on international connectivity with trustworthy, secure, and resilient networks. This could include trans-oceanic routes including through the Arctic and Pacific regions.

III. Building the Transatlantic Partnership Together with Stakeholders We remain committed to high levels of transparency and the close involvement of the transatlantic stakeholder community at large in the work of the TTC, including businesses, labor organisations, non-profit organisations, environmental constituencies, and academics.

We have therefore extensively reached out to stakeholders and given them the possibility to be involved and to provide input and receive feedback through the organisation of events, roundtables, and workshops and the establishment of dedicated websites like Futurium . With the support of the EU-financed Trade and Technology Dialogue, several high-level events have taken place and stakeholders have been consulted on topics such as sustainable trade, standardisation, AI, connectivity, and semiconductors.

In addition to these activities, we have also engaged with relevant stakeholders in more structured formats such as the Transatlantic Trade and Labor Dialogue, the Talent for Growth Task Force, and with small and medium-sized enterprises (SMEs) in a series of webinars on the topic of SME access to and use of digital tools.

Talent for Growth

The Talent for Growth Task Force, launched in April 2023 with a one-year mandate, has served both as a platform for best practices and a catalyst for innovative skills approaches that promote economic growth and create opportunities for workers in the technology sector. The Task Force brought together leaders from government, business, labor unions, and organisations that support training from the United States and the European Union. The Task Force identified, mapped, and disseminated implementable models and ideas in four critical areas: t raining workers to meet business needs, including women and underrepresented groups in technical jobs, Moving to a skills-first culture, and micro-credentials. The Task Force endorsed a statement featuring key messages stemming from these discussions.

The discussions in this group have confirmed the critical role talent plays for the sustainable growth of our economies and the well-being of our societies in an age of rapidly changing technology. It examined the acceleration of change brought about by AI. The Task Force has established bilateral relations between Task Force members which have catalysed private-sector initiatives and will last beyond the timeframe of the Task Force. The European and the United States remain dedicated to continuing to equip our workforces with the skills necessary to meet the needs created by rapidly changing technology, including AI.

Small and Medium-Sized Enterprises (SMEs)

The United States and the European Union recognise the use of digital tools as a key enabler for SMEs to innovate, grow, and compete and are continuing their work to promote the uptake of digital technologies by SMEs.

Several webinars and outreach activities where SMEs shared their needs and experience were held during the last two years. After an analysis of these stakeholder exchanges, we have developed a common set of recommendations for U.S. and EU policymakers to implement measures to help SMEs to accelerate access to these technologies.

The recommendations focus on the topics of digital-related trainings; transatlantic exchange programmes; information-sharing on cyber-security, intellectual property, and standards; and access to finance. To continue the work, we intend to develop an implementation process for these recommendations, including measures such as a webinar on access to finance and the publishing of cross-referenced U.S. and EU websites with practical information for SMEs. IV. Conclusion and Next Steps Since its inaugural meeting on 29 September 2021, the TTC has realized substantial progress and achievements across all workstreams. These results have enabled the United States and the European Union: to explore how to create new trade and investment opportunities, notably to contribute to the green transition; to advance our shared leadership in emerging technologies, such as 6G, quantum, and biotechnology so that democracies can remain at the vanguard of these developments; to provide a robust joint response to Russia’s war of aggression against Ukraine; to cooperate on economic security measures to reduce economic dependencies; to continue to develop a shared understanding of the non-market policies and practices and the risks they pose or our workers, businesses and markets globally; to jointly enhance supply chain resilience while promoting transparency and cooperation on our industrial policy approaches in key sectors, including semiconductors and clean energy; to exchange information on best practices in eliminating forced labor from our global supply chains; to advance and reinforce interoperability between AI governance frameworks based on our shared democratic values to achieve our common vision for safe, secure, and trustworthy AI globally ; to advance the resilience and security of our ICT infrastructures; and to finance and promote secure connectivity with trusted suppliers around the world.

These achievements demonstrate the enduring ties between the United States and the European Union and the importance of maintaining an operational forum for cooperation on strategic trade and technology issues of common interest and geopolitical relevance. As the United States and the European Union enter their respective electoral processes, the work we do under the TTC will remain relevant, strategic, and timely, while allowing for the necessary flexibility to adapt to changing circumstances.

Building on the lessons learned from our cooperation so far, we intend to use the remainder of 2024 to engage with U.S. and EU stakeholders to learn their views on the future of the TTC.

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Trump Media shares plunge after company files to issue additional DJT stock

Shares of  Trump Media  plunged more than 13% on Monday after the company filed to issue millions of additional shares of stock.

Trump Media’s dramatic slide came as  Donald Trump  headed to a Manhattan court to begin jury selection for his criminal trial on  hush money -related charges. Trump is the majority stakeholder in the company.

Trump Media, which created the Truth Social app and trades under the stock ticker DJT on the Nasdaq,  fell nearly 20%  last week.

The company’s intent to issue more common stock was made public Monday morning in a “preliminary prospectus”  filed  to the Securities and Exchange Commission. The shares cannot be issued until a registration statement with the SEC goes into effect.

The filing describes a plan to offer more than 21.4 million shares of common stock, issuable “upon the exercise of warrants,” the filing shows. Stock warrants give their holder the ability to buy shares at a predetermined price within a certain time frame.

Trump Media predicted in the filing that it will receive “up to an aggregate of approximately $247.1 million from the exercise of the Warrants.”

The closing price of Trump Media’s warrants was $13.69 as of Friday, according to the filing. The warrants are being traded on the Nasdaq under the ticker “DJTWW.” That ticker was down more than 8% before the market opened Monday.

The company also seeks to offer the resale of up to 146.1 million shares of stock from “selling securityholders,” 114.8 million of which are held by Trump himself. Trump owns 78.8 million shares of the company, and stands to obtain 36 million “earnout shares” if the stock stays above a certain price for enough trading days.

Trump’s current stake in the company was worth more than $2.2 billion at Monday morning’s share price. Trump is not allowed to sell his shares until a monthslong lockup period expires.

Trump, whose social media following was massively diminished after he switched to Truth Social following his suspension from Twitter and Facebook in 2021, has tried to encourage his followers to flock to the fledgling app. But it is unclear if they have heeded Trump’s call. The company has not publicly released key performance indicators, including the number of active Truth Social users.

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US lawmakers plan extension of AGOA trade pact with Africa until 2041

US senators have introduced a bill to extend the country's African Growth and Opportunity Act (AGOA) trade program with sub-Saharan African nations until 2041.

• US senators have  introduced a bill  to extend the country's African Growth and Opportunity Act (AGOA) trade program with sub-Saharan African nations until 2041.
• Initially passed in 2000, AGOA is scheduled to expire in 2025.
• Presently, about  12 African countries , including Uganda, South Sudan, and Niger are ineligible for U.S. AGOA trade in 2024.

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The legislation, introduced by Senators Jim Risch and Chris Coons seeks to extend duty-free access to the United States for about 40 sub-Saharan African nations. Initially passed in 2000, AGOA is scheduled to expire in 2025.

What the Senate said:

“AGOA plays a significant role in U.S.-sub-Saharan Africa trade and investment, as well as in U.S. foreign policy... I encourage my colleagues to swiftly reauthorize AGOA and the next administration to pursue a broader, two-way strategy with Africa that goes beyond trade preferences and meets the needs of the 21st century,” Risch said.

Coons shares a similar sentiment stating that “Over the past 24 years, AGOA has created jobs and economic growth in one of the fastest-growing regions of the world and created investment opportunities for American businesses.”

DON'T MISS THIS: African countries ineligible for U.S. AGOA trade in 2024

“The AGOA Renewal and Improvement Act is necessary to support continued economic development on the continent while further strengthening ties between the United States and partners in sub-Saharan Africa.”

The Senate Foreign Relations Committee said in a statement that the AGOA Renewal and Improvement Act is necessary to support continued economic development on the continent while further strengthening ties between the United States and partners in sub-Saharan Africa.

"The extension would offer businesses the certainty they need to increase investment in sub-Saharan Africa at a time when many firms are looking to diversify their supply chains away from China,” it said.

Sub-Saharan Africa is home to the world’s youngest population and many fast-growing economies, and AGOA has played a critical role in advancing economic development and strengthening US economic engagement in the region.

President Joe Biden terminated the eligibility for the benefits of the act for four nations last year due to their failure to meet Congress's requirements regarding human rights and democracy.

Presently, about 12 African countries , including Uganda, South Sudan, and Niger are ineligible for U.S. AGOA trade in 2024

The legislation would modify AGOA’s rules of origin to allow inputs from North African nations that are members of the African Continental Free Trade Area.

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