Starting a Financial Advisory Firm

Many want to know how to manage their money better. Many want to make more of their money and have enough money for their retirement. This provides for an excellent business opportunity called a financial advisory firm. This last economic crisis has left most people confused and reluctant to make big investment decisions. But with crisis there is always opportunity. If you have interest in economics, money and financial planning then this might be a good business opportunity for you.

Job Duties

starting a financial advisory firm
When starting a financial advisory firm you will be dealing with clients, both individuals and companies, seeking your advice on their financial strategies. Clients may meet with you to discuss their retirement plan, how to save for a big purchase such as a house, saving for a child’s college education and more. When starting a financial advisory firm you can decide to offer general financial advice or specialize in a particular niche such as risk management or retirement planning.

Financial advisors are no longer just for the rich. People from all walks of life can find themselves in need of financial advice; everyone from millionaires to the middle class to the struggling. Your job is to provide each client with a financial plan tailored made to their particular financial situation and goals. You will need analyzing and planning skills to customize each one of those strategic financial plans. You will need to help your clients formulate the best decisions for their unique situation. You will need to listen carefully to your customers and ask the right questions so you can accomplish the above duties. Educating the public will also be an important part of your business.

Starting a financial advisory firm is not a job for everyone. Make sure you know what you are getting into as one decision of your firm can make or break a person’s or a firm’s finances. The good thing about this business is that if you successfully deal with a financial situation for customers, they will come back to you again and again. In order for clients to understand and trust in your financial strategy you will need to present your financial strategy in an effective way that provides many details. When starting a financial advisory firm you will need the appropriate certification and coursework. You should have a good general knowledge about investments, insurance policies and tax laws.

Where will you work?

When starting a financial advisory firm you will be working in your own office. You may also need to meet with clients near or at their homes or work places. You might also travel to conventions and trade shows to expand your business.

Basic Costs

When starting a financial advisory firm the basic costs involve setting up a professional office, hiring employees if necessary, and marketing. Other basic costs include a good laptop computer for presentations. A projector and screen would also be good for large presentations if they are not available at the presentation site. You can start with just yourself, but you will need to hire employees as you grow. People and companies are willing to pay for good financial advice which is why you should be highly selective on the financial advisors you hire. They should be highly innovative and knowledgeable. Even if you are, principally, a one person operation, you will need to contract outside services such as accounting, auditing, etc. When starting a financial advisory firm you will also need to pay the necessary license fees. You will have to make a decision about whether you will need to lease office space or just meet clients on their own turf. Either way, you will need an auto budget.

Starting a Financial Advisory Firm Business Tips

  • Maintain a skilled task force– Skilled and knowledgeable workforce is the backbone of a financial advisory firm. Make sure that your employees are the best in the business.
  • Promotion– Market yourself well and try to establish great relations with each client of yours so customers will keep coming back.
  • Review your plans regularly– Suggest alternative plans if possible and also alter your plans periodically to optimize the financial situation of each customer.
  • Customer Service– Make your customer aware of the risks involved in each plan and let the customer choose his/her risk tolerance.
  • Financial Products– In addition to financial advice you can offer your clients other financial services such as making wills or investments management.
  • Get an Education– Even though a degree in business, finance, economics, law or related field is not necessary when starting a financial advisory firm it does help reassure clients that you know what you doing. Some universities offer courses and/or certification for financial advisors.

Advertising a Financial Avisory Firm

When starting a financial advisory firm, attracting new clients may be one of the more difficult aspect of this business. Choosing a location where this business is in demand helps. You will need to demonstrate to potential clients of the benefits of your services and how it can help them achieve their financial goals.
Here are several methods for advertising a financial advisory firm. Test various forms of advertising to see which are the most effective for your business in your location. Keep the advertising methods that are paying off and dump the ones that are not.

  • Financial Advisor Business Cards– Create business cards and hand them whenever an opportunity appears.
  • Seminars– Seminars and lectures are one way to establish yourself as an expert in the field. You should plan on giving many free financial planning seminars to promote your business.
  • Referrals– Referrals from accountants and lawyers are a great way to get the word out about your financial advisory firm. You can decide to form partnerships with them or join a business referral organization. In addition if you keep your clients happy they will often recommend your services to their friends.
  • Write articles– submit articles on financial advice and tips to local newspapers, financial magazines, financial websites. This will help establish you an an expert in the field and attract clients.
  • Website– You can decide to have a website to provide customers with general information about your financial advisory firm.
  • Yahoo Local Searches– If you include your business in the Yahoo Local Searches, when people search for your service in your local area your business will appear in the list. To add your business to Yahoo local search, enter the term “add business to yahoo local search” in and click on the first link.
  • Google Local Searches– Google has a local search as well. To add your business to Google local search, enter the term “add business to google search” in and click on the first link.

Not sure about starting a financial advisory firm? See a list of small business ideas

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