Executive Summary
Harrison Investment Solutions is an investment company based in Austin, Texas. We provide investment and other financial services such as financial advisory, accounting, compliance, and recordkeeping services to our clients.
Our target market is high-net-worth individuals that are moving to Austin. This migration trend has opened an opportunity for new customers who need a go-to investment firm. We run an investment fund that benefits start-up technological companies, which are becoming increasingly popular in Austin.
The city is developing into a business and financial hub. Businesses and individuals are taking advantage of the investment opportunities while the cost of living and barriers to entry are still low.
The business is owned by Jeremias Harrison. Jeremias himself moved to Austin in 2015 when he realized that a trend was going to occur. He set up his businesses there and sold what he didn’t need in California to fund the establishment of Harrison Investment Solutions in 2018.
Our primary objective for this year is to increase our AUM by $20 million. This will bring us to an AUM of $60 million. We then aim to further increase this to $80 million next year.
Harrison Investment Solutions is seeking $250,000 in start-up or growth capital to fund operations, marketing, and staffing in the first 12 months.
Financial highlights:
| Metric | Year 1 | Year 2 | Year 3 |
|---|---|---|---|
| Revenue | $380,000 | $640,000 | $980,000 |
| Gross margin | 78% | 78% | 78% |
| Net profit / (loss) | $97,000 | $194,400 | $324,800 |
Company Overview
Harrison Investment Solutions is an investment company based in Austin, Texas. The business was founded to serve the growing pool of technological start-ups and incoming wealth.
Austin is an emerging technological hub filled with potential. The current low costs compared to other financial hubs make it an attractive location for businesses and investors alike.
Harrison Investment Solutions offers various financial management services to businesses and individuals in and around Austin, Texas.
The business was founded by Jeremias Harrison, a financial analyst turned businessman and investor. Harrison Investment Solutions was established in 2018. The business was still green during the COVID-19 pandemic, and we weren’t optimistic, but we made it through, and now we are a thriving name in the Austin wealth management market.
We have an office in the business district in Austin. Our clients prefer having an office to come to, though we did attempt working remotely for some time. We now offer the option to busy clients.
Harrison Investment Solutions is registered as a C-Corp. We aim to expand our growth rapidly over the next few years by seeking outside investment. This registration type affords us that opportunity.
Legal structure: LLC
Mission: To deliver exceptional investment company services to clients in Austin, Texas, USA, building long-term relationships through quality, reliability, and deep expertise.
Objectives:
- Year 1: Establish operations, reach initial revenue target of $380,000, and build a loyal client base
- Year 2: Expand service capacity, grow revenue to $640,000, and hire additional staff
- Year 3: Achieve operational profitability, strengthen market position, and evaluate expansion opportunities
Market & Customer Analysis
The US Investment Market is valued at an estimated $197 billion. This figure is expected to experience a CAGR of 4.3% and be $243 billion by 2029.
An investment company collects and pools money from investors, and they collectively share the profits and losses. Investment companies either have fixed rates or take a commission on profits. There are advantages and disadvantages for each model, and it's up to the business to determine their pricing strategy.
Financial services have long been an in-person affair. However, as times and the needs of consumers change, online investment companies are becoming more popular.
The boost in investments can be attributed to the growth of online investment companies. Taking investments online and making them customizable makes investing more accessible to the general public.
The investment company industry is highly competitive. Companies compete with traditional banks, securities brokerage firms, and online investment platforms.
An investment company primarily aims to invest pooled funds into market securities. However, most investment companies also offer other financial services such as investment advisory, portfolio management, tax management, accounting, and recordkeeping services.
There are three types of investment companies.
Closed-end funds have a fixed number of shares distributed to be traded on the stock exchange. The supply of shares does not increase, only the demand. This balance determines the price of shares on the stock market.
Open-ended funds allow people to buy and sell shares whenever they please. Unlike closed-ended funds, this type of fund has an unlimited number of shares available.
A unit investment fund is an investment with a fixed portfolio invested for a specific time frame.
Customer analysis:
There are many potential customers for an investment company. We have chosen to focus on the influx of wealthy individuals moving to Austin and startup companies in Austin. Our customer analysis revealed the following.
Demographic segmentation of wealthy individuals moving to Austin.
These individuals range between 30 and 55 years old. Their income is typically higher than $200,000. Most of their net worth is tied to considerable funds from investments or asset sales.
There are two prevalent family structures in this group. The first is single professionals looking to start their life in a new city. The other is married individuals with children looking for a higher quality of life for their family.
These individuals are highly educated, with most holding an undergraduate degree or higher. They hail from other financial and technology hubs, such as Los Angeles and New York.
Psychographic segmentation of wealthy individuals moving to Austin.
People moving to Austin value innovation, growth, and community. They are attracted to the cost of living and lifestyle Austin has to offer.
They are interested in investing in tech startups, which aligns perfectly with our other group of interest.
These individuals require investment and financial planning services, which is why they are our target market.
Competitor analysis:
| Competitor | Strengths | Weaknesses |
|---|---|---|
| Merrill Lynch Wealth Management | Established brand, wide reach | Higher price point, less personalised |
| Raymond James Financial | Strong marketing, national presence | Generic offering, less specialist focus |
| Edward Jones | Competitive pricing | Lower service quality, limited expertise |
Harrison Investment Solutions's competitive edge: Specialist expertise, personalised service, and a clear focus on the underserved segment of the market set us apart from the established players listed above.
SWOT analysis:
| Positive | Negative | |
|---|---|---|
| Internal | Strengths: Specialist expertise; experienced founder; strong client relationships; differentiated positioning | Weaknesses: Limited brand recognition as a new entrant; single location; reliance on founder capacity in early years |
| External | Opportunities: Growing market demand; underserved niche segments; digital marketing reach; referral network growth | Threats: Established competitors with greater resources; economic downturn reducing discretionary spend; regulatory changes |
Sales & Marketing Plan
Harrison Investment Solutions provides investment and other financial services to newcomers in Austin. These include investment advisory, portfolio management, tax management, accounting, and recordkeeping services.
We operate in Austin but coordinate with clients across the country. Our target market is wealthy individuals who relocate to Austin, and they often seek us out before their move to enquire about our services.
Our sales efforts differ throughout the year. In Q1, we focus on marketing the brand and setting up the pipeline to acquire new clients. By the end of Q1, we aim to have 5 new clients. In Q2, we focus on increasing our active clients to 20. This is also when we aim to reach our first sales goal.
Q3 is focused on more growth. This is when we use various client acquisition methods to increase our number of clients to 35. We also encourage referrals during this period by offering a referral bonus. Q4 is focused on reaching our final sales goals for the year.
Our primary sales goal is to have an AUM of $20 million. We split this goal into two biannual goals of $10 million. The two-year AUM goal is $70 million. We anticipate a client roster of 75 clients is the key to achieving this.
Pricing strategy: Pricing is set to be competitive within the Austin, Texas, USA market while reflecting the quality and specialist nature of the services delivered. All pricing is reviewed annually against market benchmarks.
Marketing channels:
- Digital presence (website + SEO) — professional website with content marketing to attract organic search traffic from clients searching for investment company services in Austin, Texas, USA
- Social media — active presence on relevant platforms to build brand awareness and engage prospective clients
- Referral programme — incentivised referral programme for existing clients; target 30% of new clients via referral by end of Year 2
- Local networking and partnerships — attendance at industry events and partnerships with complementary businesses in Austin, Texas, USA
- Google Ads — targeted paid search campaigns for high-intent keywords during launch phase
Marketing budget Year 1: $34,200 (9% of projected revenue)
Additional marketing notes:
Our annual marketing budget is $57,600. We split the funds between a few marketing activities across four marketing categories.
The first marketing category Harrison Investment Solutions uses is digital marketing. 40% of our marketing budget goes towards digital marketing and is split in the following way:
- Website $2,304 (4)
- SEO: $3,456 (6)
- Pay Per Click Advertising: $5,760 (10)
- Social Media Advertising: $6,912 (12)
- Email Marketing: $2,304 (4)
- Content Creation: $2,304(4)
20% of our marketing budget goes toward traditional marketing and is allocated as follows:
- Print advertising: $3,456(6)
- Business cards and flyers $2,304(4)
- Networking events: $5,760 (10)
10% of our marketing budget goes toward public relations and is allocated as follows:
- Charity and donations: $2,304(4)
- Brand partnerships: $3,456 (6)
The 5% of the marketing budget is allocated for miscellaneous costs. The remaining 25% goes toward the marketing team’s performance bonus.
Operating Plan
Objective Activity Responsible Party Timeline Implement company strategy and deliver organizational growth. Develop business vision and goals. Management team. Ongoing. Increase brand awareness and client acquisition. Develop and implement the marketing plan. Sales and Marketing Team. Ongoing. Attract wealthy individuals moving to Austin. Develop and execute targeted client acquisition strategy. Sales manager and Marketing Team. Monthly. Have a high client retention and satisfaction rate. Manage client relationships and regularly review portfolios. Client Relations Manager. Quarterly.
Staffing plan:
| Role | Year 1 | Year 2 | Year 3 |
|---|---|---|---|
| William Harrison (Owner / Director) | Full-time | Full-time | Full-time |
| Operations / Senior Staff | Part-time | Full-time | Full-time |
| Support / Junior Staff | — | Part-time | Full-time |
Legal & compliance:
- All required licences and permits for investment company operations in Austin, Texas, USA
- Professional liability and general liability insurance
- Data protection compliance in accordance with applicable laws
- Health & safety policies and risk assessments in place before trading begins
Management Team
Chief Executive Officer, Jeremias Harrison.
Jeremias sets the business strategy. He is the first point of contact with investors and major stakeholders. He has a bachelor’s degree in finance. Jeremias is a certified financial analyst and businessman with 20 years of experience.
Chief Operating Officer, Brandon Cole.
Brandon is responsible for overseeing the daily business operations, creating harmony between departments, aligning organizational behavior and goals, and implementing organizational policy and procedure.
Brandon has worked in wealth management operations for 15 years. He has a degree in Finance, but most of his work experience has been in operations. His education and experience make him the perfect candidate to be the chief operating officer of our investment company.
Chief Financial Officer, Kyra Urie.
Kyra oversees and manages Harrison Investment Solutions' financial strategy. She is a certified financial analyst with 10 years of experience in the investment industry.
Chief Investment Officer, Blanco Hind.
Blanco manages the business' investment portfolio. He researches the best funds to invest in and determines the yearly investment schedule to present to our clients. He has a bachelor’s degree in finance and a master’s degree in economics, and he is also a certified financial analyst. He has 10 years of experience in portfolio and asset management.
William Harrison — Founder & Director
Advisory support: The business will engage an experienced accountant and a business mentor through the local enterprise support network to provide financial oversight and strategic guidance during the first three years of trading.
Financial Plan
Projected Profit or Loss Statement
Year 1 Year 2 Year 3 Sales $90,000 $170,000 $300,000 Direct Cost of Sales $20,500 $30,000 $82,000 Production Payroll $0 $0 $0 Other $0 $0 $0 Total Cost of Sales $20,500 $30,000 $82,000 Gross Margin $69,500 $140,000 $218,000 Gross Margin % 77% 82% 73% Operating Expenses
Sales and Marketing Expenses
Sales and Marketing Payroll $20,000 $40,000 $40,000 Advertising/Promotion $800 $1,000 $1,000 Travel $0 $0 $0 Miscellaneous $500 $500 $500 Total Sales and Marketing Expenses $21,300 $41,500 $41,500 General and Administrative Expenses
General and Administrative Payroll $20,000 $40,250 $100,250 Sales and Marketing and Other Expenses $0 $0 $0 Depreciation $1,000 $1,000 $1,000 Dues and Subscriptions $200 $200 $200 Professional Fees $300 $300 $300 Rent $2,000 $2,000 $2,000 Software Purchases $0 $15,000 $0 Insurance $2,000 $2,000 $2,000 Telephone and Internet Access $2,000 $2,000 $2,000 Utilities $400 $400 $400 Miscellaneous $0 $0 $0 Payroll Taxes $500 $1,200 $3,000 Other General and Administrative Expenses $0 $0 $0 Total General and Administrative Expenses $28,400 $64,350 $111,150 Other Expenses:
Other Payroll $0 $0 $0 Consultants $0 $0 $0 Contract/Consultants $0 $0 $0 Total Other Expenses $0 $0 $0 Total Operating Expenses $28,400 $64,350 $111,150 Profit Before Interest and Taxes $19,800 $102,840 $225,410 EBITDA $19,800 $103,860 $226,430 Interest Expense $800 $3,632 $2,957 Taxes Incurred $0 $24,802 $56,540 Net Profit $19,000 $34,150 $65,350 Net Profit/Sales 21% 20% 22%
Projected Cash Flow Statement Cash Received Year 1 Year 2 Year 3 Cash from Operations
Cash Sales $90,000 $170,000 $300,000 Cash from Receivables $0 $0 $0 Subtotal Cash from Operations $90,000 $170,000 $300,00 Additional Cash Received
Sales Tax, VAT, HST/GST Received $0 $0 $0 New Current Borrowing $20,000 $0 $0 New Other Liabilities (interest-free) $0 $0 $0 New Long-term Liabilities $0 $0 $0 Sales of Other Current Assets $0 $0 $0 Sales of Long-term Assets $0 $0 $0 New Investment Received $0 $0 $0 Subtotal Cash Received $110,000 $170,000 $300,000 Expenditures
Expenditures from Operations
Subtotal Spent on Operations $48,900 $94,350 $111,150 Additional Cash Spent
Sales Tax, VAT, HST/GST Paid Out $800 $0 $0 Principal Repayment of Current Borrowing $10,000 $10,000 $0 Other Liabilities Principal Repayment $0 $0 $0 Long-term Liabilities Principal Repayment $0 $0 $0 Purchase Other Current Assets $0 $0 $0 Purchase Long-term Assets $0 $0 $0 Dividends $0 $0 $0 Subtotal Cash Spent $59,700 $104,350 $193,150 Net Cash Flow $50,300 $65,650 $106,850 Cash Balance $19,000 $34,150 $65,350 Projected Balance Sheet Assets Year 1 Year 2 Year 3 Current Assets
Cash $90,000 $170,000 $300,000 Accounts Receivable $0 $0 $0 Other Current Assets $0 $0 $0 Total Current Assets $90,000 $170,000 $300,000 Long-term Assets $10,000 $9,000 $8,000 Accumulated Depreciation $1,000 $1,000 $1,000 Total Long-term Assets ($1,000) ($1,000) ($1,000) Total Assets $100,000 $179,000 $308,00 Liabilities and Capital
Current Liabilities
Accounts Payable $0 $0 $0 Current Borrowing $20,000 $10,000 $0 Other Current Liabilities $0 $0 $0 Subtotal Current Liabilities $20,000 $10,000 $0 Long-term Liabilities $0 $0 $0 Total Liabilities $20,000 $10,000 $0 Paid-in Capital $30,000 $30,000 $30,000 Retained Earnings ($20,000) ($30,000) $41,000 Earnings ($12,000) $44,000 $160,000 Total Capital ($2,000) $44,000 $231,000 Total Liabilities and Capital $18,000 $54,000 $231,000 Net Worth $80,000 $169,00 $308,000
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3-year profit & loss projection:
| Year 1 | Year 2 | Year 3 | |
|---|---|---|---|
| Revenue | $380,000 | $640,000 | $980,000 |
| Compliance, regulatory and advisory costs | $83,600 | $140,800 | $215,600 |
| Gross profit | $296,400 | $499,200 | $764,400 |
| Gross margin | 78% | 78% | 78% |
| Salaries and wages | $106,400 | $179,200 | $274,400 |
| Marketing and advertising | $34,200 | $57,600 | $88,200 |
| Rent and utilities | $36,000 | $36,000 | $37,800 |
| Other operating costs | $22,800 | $32,000 | $39,200 |
| Total operating expenses | $199,400 | $304,800 | $439,600 |
| Net profit / (loss) | $97,000 | $194,400 | $324,800 |
Break-even analysis:
- Estimated fixed monthly costs: $13,800
- To cover fixed costs, Harrison Investment Solutions needs to generate approximately $17,700 in monthly revenue
- Break-even is projected to be reached in Month 5 of trading
Key financial assumptions:
- Revenue growth of 68% in Year 2 and 53% in Year 3 based on planned capacity expansion and marketing investment
- Compliance, regulatory and advisory costs estimated at 22% of revenue throughout the forecast period, consistent with industry benchmarks
- Staffing costs set at 28% of revenue, scaling incrementally with new hires in Year 2 and Year 3
- Marketing budget fixed at 9% of revenue; reviewed quarterly and adjusted based on channel performance
- No bad debt assumed; payment terms enforced from day one
Funding requirements:
Harrison Investment Solutions is seeking $250,000 to fund the following:
| Use of funds | Amount |
|---|---|
| Equipment and fit-out | $100,000 |
| Working capital (6 months) | $87,500 |
| Marketing launch | $37,500 |
| Legal, licences, and professional fees | $25,000 |
| Total | $250,000 |