How do I write a business plan for a prop firm?
Quick answer
A prop firm business plan should cover your target traders, product and pricing, expected pass and payout rates, customer acquisition plan and cost, technology and payment providers, legal structure, team, monthly costs, a payout reserve policy and a 12-month financial model with best, expected and worst cases.
Detailed answer
Useful sections:
- Market and audience: who your traders are, where they live and what they trade.
- Product: account sizes, prices, rules, payout terms and add-ons.
- Unit economics: fee per challenge, assumed pass rate, assumed payout per funded trader, platform cost per account, payment fees.
- Acquisition: channels, affiliate terms and expected cost per sale.
- Operations: support, KYC, payouts, risk review.
- Technology and vendors: platform, payment processors, KYC provider, website.
- Legal and compliance: company location, target countries, terms and advice taken.
- Financials: monthly revenue, payouts, costs and reserve for 12 months.
Run the model with pessimistic payout assumptions. If the plan only works when almost every trader fails, it is fragile. Per-account platform pricing makes the model simpler, because the platform cost scales with accounts sold rather than arriving as a fixed monthly bill.
Keep it alive
Update the plan monthly with real figures. The first version is mostly assumptions; within three months you will have actual sales, pass rates and support volumes, and the plan becomes a management tool rather than a forecast.
PropExecutor team · Updated