Case Study Of Group Capital: Assumption And Contingency Planning

2240 Words 9 Pages
Group Capital: Assumption and Contingency Planning
In the two years since our formation, Group Capital spent an inordinate expanse of time researching the market on plotting the path of success while considering the potential roadblocks and planning within the equity crowdfunding arena. In essence, the Jumpstart Our Business Startups (JOBS) Act of 2012 provides investors and entrepreneurs choices not previously available on a large-scale model vis a via equity crowdfunding. In fact, Group Capital, a Securities and Exchange Commission (SEC) and Financial Industry Regulatory Authority (FINRA) registered broker-dealer, intends to mitigate our risk of failure through prudent planning and realistic projections and avoid the pitfalls of initial
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Consequently, our sales number propose the same trend in figure two. In the 2015 Crowdfunding Industry Report, the industry reached the $34.4 billion mark (2015CF-The Crowdfunding Industry Report, n.d.). As a result, we believe these numbers are the worst-case scenario. If the industry performs as expected, Group Capital has a contingency plan established to hire more sales agents and inside sales representative. In the interim, we plan to hire inbound and outbound sales agents in work from home position to aid in outreach and customer satisfaction. In the end, Group Capital can adhere to an embellished or minimalist approach providing our internal and external stakeholders a superior experience and …show more content…
After the Great Depression, regulations, such as the Insider Trading Act, the Dodd-Frank Act, and Sarbanes-Oxley Act of 2002 (SOX), enhanced protection and eradicated unethical business practices (Laws That Govern the Securities Industry, n.d.). At the same time, these rules mitigate the risk and are onerous on a broker-dealer such as Group Capital. Kaal (2013) indicated a sense of urgency around rule-making, yet it may not allow a full evaluation of the effect on a broker-dealer. Moreover, these decisions evaluate the economic, political, and legal costs on society and neglect the impact on Group Capital. Regulators need to balance consumer protection without stifling business development or being punitive towards the financial industry. As a result, Group Capital must assume supplementary rules and edicts loom. We plan to minimize the possible impact of collecting additional data, analyzing risk, and reporting our information will have on the

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