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Launching Your First Financial Advisory Business

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Launching Your First Financial Advisory Business

Whether you are someone right out of college or a veteran financial planner who is looking to go your own way in business, a financial advisory business may be one of the best options for you to use.

There are so many benefits of starting this kind of business. You can help others out, choose your own hours once the business gets off the ground, and make good money all in one. There are different steps that you will need to follow to launch your first business though.

Let’s take a closer look at some of the steps that you can take when ready to launch your first financial advisory business.

1. Think of the Costs

If you want to start a financial advisory business, you must think about some of the costs to begin the business. This is similar to starting any new endeavor. You will need to pay for advertising, rent, furniture, technology, utilities, and any earnest deposit to get started.

You may need to pay for special training and licensing to get started. The specific types of licensing that you will need depends on your state and local laws. The more training that is needed, the higher the costs.

Make a list of the different costs that you will have and find a way to budget for them or find the necessary financing.

2. Licensing and Training

You must be licensed in your state before you become a financial advisor. As a beginner starting out with your own business, you may want to add in one or two professional designations. A Certified Financial Planner is a good option to use or a Chartered Life Underwriter.

These credentials will give you more credibility in the industry. If you are a veteran with experience in the industry, some of these licenses may not be as important, unless you are changing lines of work. Think about what you need to prove your knowledge.

Think about the way that you want to serve your customers and any special services that you would like to offer. You can work from there to determine which type of training and licensing you should go for to make sure you can do that kind of work.

3. Create a Business Plan

All new businesses need to have a business plan. This helps to direct your business and should include the strategies and goals of the business. Some of the things that should be in a business plan include:

  • The goals of the business
  • The strategies to help achieve these goals
  • How the current financial markets are doing
  • The demographics of current and potential clients.
  • How you plan to differentiate your firm.
  • A marketing plan with some flexibility
  • The probable costs, listed out well.
  • A realistic estimate of the time it may take to accomplish the objectives of the plan.

4. Business Model and the Services You Plan to Offer

Decide the types of services that you plan to offer to your customers. You should also think about the method of compensation you plan to use as well. Financial planners who use a commission structure often earn more, but you will need to consider the work that goes with that.

Sometimes customers will go for a fee-based planner because they want advice that is unbiased. You will need to consider the type of advice you want to offer and how you would like to meet with your customers.

5. Build Up Your Network

Build Up Your Network

As you get into the world of financial planning, it is important to build up your network and build up some professional relationships. All professionals in the area will be important but think of the people who may be able to help you the most.

Find a mentor who can give you advice, for example. An attorney or a CPA who is willing to partner with you can help get your business off the ground. These professionals will help you find some of the customers you need as they recommend you to others.

Some financial advisors find that they need to have an amazing support team around them. As you start, that team may only be an assistant, but it could grow to be a big team over time. Make certain the team is there to support you and provide you with all the help you need.

6. Know all the Liabilities and Risks

Any business that you start will have some risks. You have to worry about whether you can make enough profit to survive and there are additional liability and fiduciary responsibilities to consider.

Financial advisors should get Errors and Omissions insurance to help practice against malpractice suits. But you do need to follow all rules and regulations in this industry as well. If there are any complaints, handle them in a professional manner too.

7. Market and Advertise Yourself

To help find some of the clients that you need to grow your business, you need to market and advertise your financial advisory services. Not every type of marketing technique will work to your advantage and some can be a waste of money.

Consider a way to set yourself apart from the competition. And then find the right marketing avenues to help you get that done. Whether it is print, social media, flyers, radio, billboards, or another method, find the way that you can reach your potential clients the best.

8. Reap the Rewards

As you grow your business, more clients will come in the door thanks to referrals. Successful planners are able to enjoy high compensation, convenient office hours that they can choose, and even recognition in their own community.

Sometimes though, the best reward of being a financial planner is a sense of accomplishment when you can help a client handle their finances and achieve the peace of mind that they need.

Getting Started with Your Business

Getting Started with Your Business

Starting a financial advisory company is a great way to help others, use some of your financial knowledge, and control your own career. Follow the steps above, and you can start a company that is successful while helping others!


Kossi Adzo is the editor and author of He is software engineer. Innovation, Businesses and companies are his passion. He filled several patents in IT & Communication technologies. He manages the technical operations at

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