Hello, I am considering starting up my own financial advisory business. What are the first steps I should take?
I saved up some money and want to help people specifically millennials manage their finances. Where is the first place for me to start? I have a few people who are on boat with me and I am in the process of creating a business plan.
Chase.. what type of financial advisory firm?
To start an FA firm, you need licenses. And I'd recommend that you before a CFA.
To be a consultant who goes into firms to help them with their P/L, expenses, etc. that's a different story.
And then there is the type of consultant you may mean :)
Can you say more about what you're looking to do, so that I can provide more of an answer?
The first thing I recommend for anyone who is starting a business is to go to the library and get a book. It's called "starting a business in ___your state here___
You should have expertise, and Plan what products needed in Market , multi resources
Everyone has made great points on this. It is highly important to check out the regulations surrounding your industry first and obtain the proper certification if required. I worked for a firm that did debt management and it was a nightmare. It seemed every month they were losing their license in a different state and then getting it back in which it was a rollercoaster ride. I blame that on poor management structure and lack of substantial knowledge of those in charge. Needless to say I left that firm.
Reputation is EVERYTHING when it comes to financial businesses. A bad move or name can be greatly detrimental. Focus on the core needs and what you and your team needs to have to enter into this jungle. Good luck and let us know how it goes!
As consultants you should know these things already, if you do not know what you have to do under the financial services legislation, I do not think you should even begin
Do you have a degree in accountancy and/or law?
No one will look at you without a track record
I am sorry to be so blunt but to even have to ask these questions you are totally unprepared and deifinately not equipped to provide this service at all
First, make a decision of what financial products you will offer and which firms such as Scott Trade, Edward Jones etc. Next, whether you will be both Commision based or fee to client based if so you can join www.napfa.org
If you are selling Insurance as well as financial products then you can join www.naifa.org I recommend incorporating what type of firm or a mission statement in your business plan as well as which Consumer firms you will represent and definitely a Marketing plan within your Business Plan . Make Amendment to your Plan as need arise to adapt to any changing times.
1) do a market research
2) identify the market segment you wish to develop- pensioners/ middle class/ salaried/ entrepreneurs etc
3) Develop how will position your services- Marketing Mix.
4) Invest into Communication
I agree with Joseph on seeking legal advice. You can do it affordably by purchasing a legal service plan. Plans are available for business owners with 1-99 employees.
First of all I would get the proper designations for the financial industry so you will be perceived as an expert. (CFP). If you don't have any experience in the industry, I would suggest that you work for an existing Financial Planning Company to gain the knowledge before you go out on your own. Once you decide to go solo, then Tina Weber has given you excellent advice from a marketing standpoint. From the business side, your business plan will help you get organized. Good luck with your business launch.
you can be a broker dealer or a hedge fund we can help you become a hedge fund .
you can buy a broker dealer or you can create a new one