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Start Your Financial Planning Practice Business in 9 Simple Steps

By alex ryzhkov, resources on financial planning practice.

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Opening a Financial Planning Practice: A Step-by-Step Guide to Success

Financial planning has become an essential service in today's complex economy, and with the increasing demand for reliable and unbiased advice, starting a financial planning practice can be a profitable endeavor. According to recent statistics, the global financial planning market is expected to reach a value of $6.29 billion by 2025, with a CAGR of 4.4%. This growth can be attributed to the increasing importance of financial planning for individuals and businesses alike.

However, opening a financial planning practice requires careful planning and execution to ensure success. In this guide, we will walk you through nine essential steps to help you launch your own financial planning practice and establish a strong foundation for long-term growth.

  • Conduct market research and identify target market: Before starting any business, it is crucial to understand the market and identify your target audience. Conducting thorough market research will help you better understand the needs and preferences of potential clients.
  • Develop a comprehensive business plan: A well-crafted business plan is the roadmap to success. It should outline your goals, target market, marketing strategies, financial projections, and other important aspects of your practice.
  • Create a financial model and identify funding needs: Determine the financial requirements of your practice, including startup costs, overhead expenses, and operating expenses. This will help you identify any fundraising needs and secure the necessary funding.
  • Secure necessary permits and licenses: Financial planning practices are subject to various regulatory requirements. Obtain the necessary permits and licenses to operate legally and ensure compliance with industry regulations.
  • Establish legal structure and register the business: Choose a legal structure for your practice and register it with the appropriate authorities. This will help protect your personal assets and ensure legal compliance.
  • Develop a marketing strategy and brand identity: Create a compelling marketing strategy to attract clients and establish your practice's brand identity. Utilize both online and offline marketing channels to reach your target audience effectively.
  • Hire and train qualified staff: Building a competent team is essential for the success of your financial planning practice. Hire qualified professionals and provide them with adequate training to deliver exceptional services to your clients.
  • Implement financial planning software and tools: Invest in reliable financial planning software and tools to streamline your practice's operations and enhance client experience. These tools can help you create customized financial plans, track investments, and monitor progress.
  • Launch a strong online presence and website: In today's digital age, having a strong online presence is imperative for any business. Create a professional website that showcases your expertise and provides valuable resources for potential clients.

By following these nine steps, you can lay a solid foundation for your financial planning practice and position yourself for long-term success in the ever-growing financial planning industry. Stay tuned for our upcoming blog posts, where we will dive deeper into each step and provide valuable insights to help you navigate the challenges of starting and running a financial planning practice.

9 Steps to Start a Financial Planning Practice Business: Checklist

Before starting a financial planning practice business, there are several crucial steps that need to be taken in order to ensure a successful launch. By following these steps, you can lay a solid foundation for your business and position yourself for long-term growth and profitability.

Conduct Market Research And Identify Target Market

Before diving into the world of financial planning practice, it is crucial to conduct thorough market research to understand the landscape and identify your target market. This step will lay the foundation for a successful business by helping you tailor your services to meet the needs and preferences of your ideal clients.

Market research involves gathering and analyzing relevant information about the financial planning industry, including current trends, competitors, and potential opportunities. Here are some tips to guide you through this process:

Tips for Conducting Market Research:

  • Define your target market: Clearly identify who your ideal clients are based on factors such as age, income, financial goals, and preferences. This will help you tailor your services to meet their specific needs.
  • Analyze the competition: Identify other financial planning practices in your area and study their offerings, pricing, and marketing strategies. This will help you differentiate yourself and find unique selling points.
  • Segment the market: Divide your target market into segments based on factors such as demographics, life stages, or financial goals. This will allow you to customize your marketing efforts and services for each segment.
  • Conduct surveys or interviews: Gather feedback from potential clients to understand their financial planning needs, pain points, and expectations. This firsthand information will guide the development of your services and ensure they meet market demand.
  • Stay updated on industry trends: Research industry publications, attend conferences, and connect with experts in the field to stay abreast of current trends, regulatory changes, and emerging opportunities. This ongoing research will help you adapt and innovate as the financial planning industry evolves.

By thoroughly conducting market research and identifying your target market, you will have valuable insights to develop a business plan, design marketing strategies, and ultimately position yourself as a trusted and preferred financial planning practice in your chosen market.

Develop A Comprehensive Business Plan

A comprehensive business plan is essential for launching a successful financial planning practice. It serves as a roadmap for your business, outlining your goals, strategies, and financial projections.

When developing your business plan, consider the following key elements:

  • Mission and Vision: Clearly define the purpose and direction of your financial planning practice. What unique value will you provide to clients?
  • Market Analysis: Conduct thorough market research to understand your target market, including demographics, competition, and industry trends. Identify niches or underserved segments where you can differentiate your services.
  • Service Offerings: Outline the range of financial planning services you will offer, such as retirement planning, investment management, tax planning, or estate planning. Consider the specific needs and preferences of your target market.
  • Marketing Strategies: Develop a comprehensive marketing plan to promote your services and attract clients. This may include digital marketing, networking, referral programs, or partnerships with other professionals.
  • Operations and Management: Define the organizational structure of your practice and outline the roles and responsibilities of each team member. Ensure that your systems and processes are efficient and compliant with industry regulations.
  • Financial Projections: Create realistic financial projections, including revenue, expenses, and profitability. This will help you determine your funding needs, pricing strategy, and break-even point.

Tips for Developing a Comprehensive Business Plan:

  • Research and study successful financial planning practices to learn from their strategies and approaches.
  • Seek feedback from industry experts or mentors to gain insights and refine your business plan.
  • Regularly review and update your business plan as your practice evolves and market conditions change.

By developing a comprehensive business plan, you will have a clear roadmap to guide your financial planning practice and increase your chances of success in the competitive industry.

Create A Financial Model And Identify Funding Needs

Creating a financial model is an essential step in launching a financial planning practice business. It involves developing a comprehensive understanding of your projected expenses, revenues, and profitability over a specific period. This financial model will serve as a roadmap to guide your financial decisions and help you identify the funding needs for your business.

To create a robust financial model, consider the following steps:

  • 1. Estimate your startup costs: Begin by calculating the initial expenses required to establish your financial planning practice. This may include office space, furniture, technology equipment, software licenses, marketing materials, and professional fees.
  • 2. Project your operating expenses: Determine your ongoing monthly costs, such as employee salaries, rent, utilities, insurance, marketing expenses, and software subscriptions. It's crucial to be realistic and consider potential fluctuations in expenses.
  • 3. Identify potential revenue streams: Evaluate how you plan to generate income within your fee-only financial planning practice. This may include financial planning fees, hourly consulting fees, or retainer fees. Ensure that these revenue streams align with your business goals.
  • 4. Determine pricing: Set your pricing strategy based on your target market, competition, and value proposition. Analyze industry standards and adjust your fees accordingly to ensure competitiveness and profitability.
  • 5. Perform a break-even analysis: Calculate the number of clients or revenue needed to cover your fixed and variable costs. This analysis will help you determine your breakeven point and assess your financial viability.
  • Consider consulting with an accountant or financial advisor who specializes in the financial planning industry to assist you in creating an accurate and comprehensive financial model.
  • Regularly review and update your financial model as your business evolves to ensure its relevance and accuracy.
  • When identifying funding needs, explore various options such as personal savings, loans from financial institutions, or seeking investments from partners or stakeholders.
  • Allocate a contingency fund within your financial model to account for unexpected expenses or fluctuations in revenue.

By carefully creating a financial model and identifying your funding needs, you will be better equipped to secure the necessary capital and make informed financial decisions as you launch your financial planning practice business.

Secure Necessary Permits And Licenses

Before you can officially open your financial planning practice, it is crucial to Secure Necessary Permits And Licenses in order to comply with legal and regulatory requirements. This step ensures that your business operates within the bounds of the law and establishes trust with potential clients. Here are some important considerations:

  • Research the specific permits and licenses required in your state or region for financial planning practices. Each jurisdiction may have different requirements, so it is important to understand the local regulations.
  • Contact the appropriate government agencies or regulatory bodies to inquire about the necessary permits and licenses for your financial planning practice. They will be able to provide specific information and guide you through the process.
  • Ensure that you meet all the eligibility criteria outlined by the regulatory bodies. This may include specific qualifications, certifications, or experience in the financial planning field.
  • Prepare the necessary documentation and applications required for obtaining the permits and licenses. This may include providing personal and professional information, financial statements, proof of insurance, and any other supporting documents required.
  • Submit your applications and pay any applicable fees. Be sure to keep copies of all documentation and proof of submission for your records.
  • Start the process of securing necessary permits and licenses as early as possible to avoid any delays in launching your financial planning practice.
  • Consider seeking assistance from a legal professional or consultant who specializes in regulatory compliance to ensure you have completed all the necessary steps correctly.
  • Stay up to date with any changes or updates to the regulations governing financial planning practices in your jurisdiction to maintain compliance and adapt accordingly.

Obtaining the necessary permits and licenses demonstrates your commitment to operating a legitimate and trustworthy financial planning practice. By following the appropriate procedures and completing all required steps, you can confidently move forward in the process of launching your business.

Establish Legal Structure And Register The Business

Choosing the right legal structure for your financial planning practice is a crucial step in setting up your business. Determining the appropriate structure will not only impact your liability protection but also your tax obligations and operational flexibility.

Here are some key considerations when establishing the legal structure of your business:

Consult with a lawyer or accountant:

Consider a limited liability entity:, determine ownership structure:, register your business:, obtain necessary permits and licenses:.

Establishing the legal structure and registering your business lays the foundation for your financial planning practice. It is crucial to ensure compliance with regulations and set the right framework for your operations. Consulting with professionals and understanding the legal requirements will help you make informed decisions and protect your practice's interests.

Develop A Marketing Strategy And Brand Identity

Developing a marketing strategy and brand identity is crucial for the success of your financial planning practice. It helps you establish a strong presence in the market and attract your target clients. Here are some key steps to consider:

  • Identify your target market: Determine who your ideal clients are based on factors such as age, income level, and financial goals. Tailor your marketing efforts towards reaching this specific audience.
  • Define your unique value proposition: Clearly articulate what sets your practice apart from competitors. Highlight the benefits and advantages that clients will receive by working with you.
  • Create a compelling brand identity: Develop a professional and visually appealing logo, website, and marketing materials that reflect your practice's values and desired image.
  • Establish your online presence: Build a user-friendly website that showcases your expertise, services, and client testimonials. Leverage social media platforms to engage with your audience and share valuable content.
  • Utilize content marketing: Develop a content strategy to educate your audience about financial planning and establish yourself as a thought leader. Produce blog posts, videos, or podcasts on relevant topics.
  • Network and build relationships: Attend industry events, join professional organizations, and connect with other professionals who can refer clients to you.
  • Regularly evaluate and adjust your marketing efforts based on feedback and results.
  • Consider offering educational workshops or webinars to position yourself as a trusted resource.
  • Ensure consistency in your branding across all marketing channels for a cohesive and professional image.
  • Track the return on investment of different marketing strategies to identify the most effective ones.

Remember, developing a comprehensive marketing strategy and brand identity takes time and effort, but it is essential for attracting and retaining clients in the competitive financial planning industry.

Hire And Train Qualified Staff

Building a successful financial planning practice requires assembling a team of qualified professionals who possess the necessary knowledge and skills to provide exceptional service to your clients. Here are some important steps to follow when hiring and training staff for your practice:

  • Define job roles and responsibilities: Clearly outline the specific roles and responsibilities you need your staff to fulfill. This may include financial planners, administrators, client service associates, and marketing personnel.
  • Identify desired qualifications: Determine the qualifications and certifications necessary for each role. Look for candidates with relevant educational backgrounds, industry certifications (such as Certified Financial Planner®), and experience in the financial planning field.
  • Advertise job openings: Promote your job openings through various channels, such as online job boards, industry associations, and local colleges or universities. Clearly communicate the skills, qualifications, and responsibilities required for each position.
  • Conduct thorough interviews: Screen candidates based on their resumes and conduct in-depth interviews to assess their skills, experience, and cultural fit with your practice. Ask behavioral and scenario-based questions to evaluate their problem-solving abilities and decision-making skills.
  • Provide comprehensive training: Once you have selected the right candidates, invest time in providing comprehensive training to ensure they are well-equipped to fulfill their roles effectively. This may involve internal training programs, mentorship, and external workshops or seminars.
  • Create a positive work environment: Foster a positive work culture that encourages collaboration, continuous learning, and professional growth. Offer competitive compensation and benefits to attract and retain top talent in the industry.
  • Consider hiring staff with different areas of expertise to provide a well-rounded service offering to your clients.
  • Regularly evaluate staff performance and provide constructive feedback to help them improve and grow in their roles.
  • Encourage ongoing professional development by sponsoring relevant industry conferences, seminars, or training programs.

By hiring and training qualified staff who share your commitment to providing exceptional financial planning services, you can build a strong foundation for success and establish a reputation as a trusted advisor in the industry.

Implement Financial Planning Software And Tools

Once you have assembled a qualified team of financial planners and established your business structure, it is important to equip them with the necessary software and tools to effectively serve your clients. The right financial planning software can streamline the process, improve efficiency, and enhance the overall client experience.

When selecting financial planning software, consider the following:

  • Research and compare different options: Take the time to research and compare different financial planning software available in the market. Look for software that aligns with your specific business needs, offers comprehensive features, and provides a user-friendly interface.
  • Consider integration capabilities: Choose software that integrates seamlessly with other tools you use, such as CRM systems, document management platforms, and customer portals. Integration can enhance efficiency and ensure a smooth workflow.
  • Ensure data security: Financial planning involves handling sensitive client data, so it is crucial to prioritize data security. Look for software that employs robust security measures, including encryption, secure data storage, and regular system updates.
  • Provide training and support: Once you have chosen the software, provide thorough training to your staff to ensure they can effectively utilize all its features. Additionally, ensure that the software provider offers reliable customer support to assist with any issues or questions that may arise.
  • Involve your financial planners in the software selection process to ensure their needs and preferences are considered.
  • Read user reviews and seek recommendations from industry peers to gain insights into the software's performance and reliability.
  • Regularly assess your software's performance and consider upgrades or updates to keep up with industry advancements.

By implementing the right financial planning software and tools, you can effectively manage client data, collaborate with your team, and deliver exceptional financial planning services.

Launch A Strong Online Presence And Website

In today's digital age, a strong online presence is essential for any business, and a financial planning practice is no exception. A well-designed and user-friendly website can serve as a valuable tool for attracting potential clients and building credibility in the industry.

To launch a strong online presence and website for your financial planning practice, consider the following steps:

  • 1. Define your brand: Before designing your website, it's important to have a clear understanding of your brand identity. Define your unique value proposition and incorporate it into your website's design and content.
  • 2. Optimize for search engines: Implement search engine optimization (SEO) strategies to ensure your website appears in relevant search engine results. Research keywords related to financial planning and incorporate them into your website's content.
  • 3. Create valuable content: Offer informative and educational content on your website to establish yourself as an industry expert. Consider including blog posts, articles, and resources that address common financial planning concerns.
  • 4. Enable online appointment scheduling: Streamline the process for potential clients to schedule appointments by integrating an online scheduling system into your website. This can save time for both you and your clients.
  • 5. Showcase client testimonials and case studies: Highlight the positive experiences of your satisfied clients to build trust and credibility. Include testimonials and case studies on your website to demonstrate the value you provide.
  • Invest in professional web design and ensure your website is mobile-friendly.
  • Include clear contact information and a prominent call-to-action to encourage potential clients to reach out.
  • Regularly update your website with fresh content to keep visitors engaged and coming back for more.

By launching a strong online presence and website, you can attract and engage potential clients, establish trust and credibility, and ultimately grow your financial planning practice.

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Home > Finance > How To Start A Financial Planning Business

How To Start A Financial Planning Business

How To Start A Financial Planning Business

Modified: December 29, 2023

Learn how to start a successful financial planning business with our comprehensive guide. Get expert tips and advice on launching your finance career today!

(Many of the links in this article redirect to a specific reviewed product. Your purchase of these products through affiliate links helps to generate commission for LiveWell, at no extra cost. Learn more )

Table of Contents

Introduction, step 1: define your services, step 2: determine your target market, step 3: develop a business plan, step 4: obtain necessary certifications and licenses, step 5: set up your office and infrastructure, step 6: build your team, step 7: establish your pricing and fee structure, step 8: create a marketing strategy, step 9: network and build relationships, step 10: provide excellent client service.

Welcome to the world of financial planning! Starting a financial planning business can be a rewarding and lucrative venture. As a financial planner, you have the opportunity to assist individuals and businesses in managing their finances, achieving their financial goals, and securing their financial futures. Whether you’re a seasoned professional in the finance industry or someone looking to make a career change, this article will guide you through the essential steps to start your own financial planning business.

Financial planning involves analyzing a client’s financial situation, developing strategies, and providing recommendations to help them achieve their financial objectives. This can include retirement planning, investment management, tax planning, risk management, estate planning, and more. As a financial planner, you will play a crucial role in helping your clients make informed decisions about their money and investments.

Before diving into the world of financial planning, it’s important to have a strong foundation in finance and a deep understanding of the industry. Finance knowledge, coupled with a passion for helping others achieve financial success, will set you on the path to building a successful financial planning business.

In this article, we will walk you through the essential steps to start your financial planning business. From defining your services and target market to developing a business plan and establishing a marketing strategy, we will cover everything you need to know to lay a solid foundation for your business.

So, get ready to embark on this exciting journey of starting your financial planning business. By following these steps and staying committed to providing excellent service to your clients, you can create a thriving business that not only helps others but also brings you financial success and personal fulfillment.

Before you start your financial planning business, it’s essential to clearly define the services you will offer to your clients. Financial planning encompasses a wide range of services, and having a clear understanding of what you can provide will help you attract the right clients and differentiate yourself from competitors.

Start by assessing your skills, expertise, and areas of interest within the finance industry. Consider whether you want to focus on personal financial planning, business financial planning , or both. Personal financial planning typically involves helping individuals with retirement planning, investment management, budgeting, tax planning, and estate planning. Business financial planning, on the other hand, focuses on assisting businesses with financial analysis, cash flow management, risk management, and strategic financial planning.

Once you have determined the scope of your services, it’s essential to establish your unique value proposition. What sets you apart from other financial planners? Is it your specialized knowledge in a specific area of finance? Is it your personalized approach to understanding your clients’ goals and providing tailored solutions? Clearly articulating your unique value proposition will help attract clients who resonate with your approach.

Additionally, consider how you will deliver your services. Will you offer in-person consultations, virtual meetings, or a combination of both? Will you provide ongoing financial management or one-time consultations? Will you offer comprehensive financial plans or specialize in specific areas? Defining your service delivery model will not only help you in planning your business operations but also in setting your pricing structure.

Remember, as a financial planner, your expertise is your greatest asset. It’s important to continually invest in your professional development and stay up to date with industry trends and changes. This will not only enhance your credibility but also enable you to provide the best possible advice and solutions to your clients.

By clearly defining your services, establishing your unique value proposition, and investing in your professional growth, you will be well-positioned to attract clients and build a successful financial planning business.

One of the key factors for success in the financial planning business is identifying and understanding your target market. Your target market is the specific group of individuals or businesses that you will focus on serving with your financial planning services. By narrowing down your target market, you can develop a more tailored approach to meet their unique needs and effectively market your services.

Start by conducting market research to identify potential clients who are most likely to benefit from your expertise. Consider demographics such as age, income level, occupation, and location. Think about the type of clients you feel most passionate about assisting and the specific financial challenges they may face.

For example, you may choose to focus on serving high-net-worth individuals who require comprehensive wealth management services, or you may specialize in helping young professionals navigate their early career financial decisions. Alternatively, you may decide to target small business owners who need assistance with financial planning for their businesses.

Once you have identified your target market, it’s important to conduct a thorough analysis of their needs, preferences, and pain points. This will help you tailor your services and marketing messages to resonate with your target audience. Consider the financial goals and objectives your target market is likely to have and the specific services they may require to achieve those goals.

Understanding your target market will also assist you in determining the most effective marketing channels to reach them. For example, if you are targeting millennials, utilizing social media platforms and digital marketing strategies may be more effective than traditional advertising methods.

Moreover, by narrowing down your target market, you can position yourself as a specialist in addressing their unique financial needs. This specialization can give you a competitive edge and help attract clients who are seeking expertise in their specific financial situation.

Keep in mind that your target market may evolve over time as your business grows and you gain more experience. It’s important to regularly reassess and refine your target market strategy to ensure you are consistently meeting the needs of your ideal clients.

By determining your target market and gaining a deep understanding of their needs, you will be able to tailor your services, marketing efforts, and value proposition to attract and serve clients who are the best fit for your financial planning business.

A solid business plan is crucial for the success of your financial planning business. It will serve as a roadmap, guiding your decisions and actions as you start and grow your business. A well-developed business plan will help you define your business goals, outline your strategies, and identify potential challenges and opportunities.

Begin by clearly defining the vision and mission of your financial planning business. What is the ultimate purpose of your business, and what values will guide your operations? Consider how you want to position your business in the market and what unique value you aim to provide to your clients.

Next, outline your business objectives and set measurable goals. These can include financial goals, such as revenue targets, as well as non-financial goals, such as the number of clients you aim to serve or the geographic reach you want to achieve. Make sure your goals are specific, realistic, and time-bound so that you can track your progress and make necessary adjustments along the way.

Once you have established your goals, develop strategies and action plans to achieve them. This may include marketing and branding strategies, client acquisition and retention strategies, pricing and fee structures, and operational plans. Consider the resources, technology, and infrastructure you will need to support your business operations and deliver exceptional service to your clients.

Additionally, assess the financial aspects of your business and create a detailed financial plan. This includes projecting your startup costs, estimating your revenue and expenses, and determining your pricing structure. Conduct a thorough analysis of the financial viability of your business and create contingency plans for potential risks or downturns in the market.

Remember to include a comprehensive marketing plan in your business strategy. Identify your target market segments, outline your marketing channels and tactics, and establish a budget for your marketing efforts. Your marketing plan should focus on raising awareness about your services, establishing your credibility, and attracting and retaining clients.

Regularly review and revise your business plan as your financial planning business progresses. Keep track of your goals and key performance indicators, analyzing your progress and making necessary adjustments. A business plan is a dynamic document that should evolve alongside your business.

Developing a business plan may require research, market analysis, and a deep understanding of the financial planning industry. Consider seeking guidance from a mentor, attending workshops or courses, or consulting with professionals to ensure your business plan is comprehensive and well-informed.

By developing a thorough business plan, you will have a clear roadmap to guide your financial planning business from its inception to its growth and success.

As a financial planner, it is essential to obtain the necessary certifications and licenses to operate legally and effectively. These credentials not only demonstrate your expertise and credibility but also ensure that you are providing sound financial advice and adhering to industry regulations. Here are some key certifications and licenses to consider:

  • Certified Financial Planner (CFP®): The Certified Financial Planner designation is one of the most recognized and respected certifications in the financial planning industry. To become a CFP®, you must fulfill educational requirements, pass a comprehensive exam, and meet experience and ethics requirements. This certification covers areas such as retirement planning, estate planning, investment management, tax planning, and insurance.
  • Chartered Financial Analyst (CFA®): The Chartered Financial Analyst designation is globally recognized and focuses primarily on investment analysis and portfolio management. Achieving the CFA® designation requires passing three levels of exams, meeting experience requirements, and adhering to a strict code of ethics.
  • Registered Investment Advisor (RIA): If you plan to offer investment advice to clients, you may need to register as an investment advisor with the appropriate regulatory authorities. This registration ensures that you are compliant with regulations governing investment advisory services and provides added credibility to your practice.
  • Insurance Licenses: If you will be offering insurance-related services, such as life insurance or long-term care insurance, you will likely need to obtain relevant insurance licenses. These licenses vary by state and product, so make sure to research the requirements in your area.

It’s important to note that the certifications and licenses required may vary depending on your location and the specific services you offer. Be sure to consult with industry associations, regulatory bodies, and legal professionals to ensure you are aware of the requirements applicable to your financial planning business.

In addition to professional certifications, consider joining professional associations and organizations in the financial planning industry. These memberships can provide valuable networking opportunities, continuing education resources, and access to industry updates and best practices. Some notable associations include the Financial Planning Association (FPA) and the National Association of Personal Financial Advisors (NAPFA).

Obtaining the necessary certifications and licenses demonstrates your commitment to professional standards and assures clients that you have the knowledge and expertise to provide quality financial planning services. It will also give you a competitive advantage in the industry and open doors to new opportunities and partnerships.

Take the time to research and understand the requirements for certifications and licenses in your jurisdiction. By investing in your professional development and ensuring compliance with industry regulations, you will establish yourself as a trusted and reliable financial planner.

Setting up your office and infrastructure is a crucial step in establishing a professional and efficient financial planning business. A well-designed and organized workspace will not only enhance your productivity but also instill confidence in your clients. Here are some key factors to consider when setting up your office:

  • Physical Location: Determine whether you will operate your financial planning business from a physical office or work remotely. If you choose a physical location, consider factors such as accessibility, proximity to your target market, and the overall image it projects. If you opt for a remote setup, ensure you have a dedicated workspace that is quiet, comfortable, and free from distractions.
  • Equipment and Technology: Invest in reliable and up-to-date equipment and technology to support your business operations. This may include computers, software for financial planning analysis, secure data storage, printers, and communication tools such as phones and videoconferencing software.
  • Data Security: Protecting your clients’ personal and financial information is paramount. Implement robust data security measures, including encryption software, firewalls, and secure password protocols. Consider hiring an IT professional to ensure your technology infrastructure is secure and regularly updated.
  • Professional Software: Utilize financial planning software to streamline your processes and provide accurate and comprehensive analysis for your clients. Choose software that aligns with your business needs and supports the services you offer, such as retirement planning, investment management, and tax planning.
  • Compliance and Documentation: Familiarize yourself with industry regulations and compliance requirements. Establish a system to maintain and organize client documents, correspondence, and agreements. Implement compliance measures to ensure you are adhering to legal and ethical standards in your financial planning practice.
  • Administrative Support: Determine whether you will handle administrative tasks yourself or hire support staff to assist you. Administrative tasks may include scheduling client meetings, managing paperwork, bookkeeping, and handling inquiries. Consider outsourcing certain tasks or utilizing virtual assistants to free up your time and focus on client-facing activities.

Remember, the goal is to create an environment that promotes professionalism, efficiency, and client trust. Ensure your office is well-organized and visually appealing, with a comfortable seating area for client meetings. Consider branding elements such as logos, signage, and marketing materials to create a cohesive and professional image.

Lastly, don’t forget about insurance considerations. Protect your business assets, data, and liability by obtaining appropriate insurance coverage, such as professional liability insurance and general business insurance.

By setting up a well-equipped and organized office, you will create an environment that supports your financial planning practice and instills confidence in your clients. Strive for professionalism and efficiency to deliver exceptional service and build a strong foundation for your business.

Building a talented and reliable team is essential for the growth and success of your financial planning business. While you may start as a solopreneur, as your business expands, you may need to bring in additional resources to meet client needs and scale your operations. Here are some considerations for building your team:

  • Identify Roles and Responsibilities: Determine the specific roles and responsibilities needed within your financial planning business. This may include financial planners, investment analysts, administrative staff, marketing professionals, and IT support. Clearly define the job descriptions and expectations for each role.
  • Recruitment and Hiring: Develop a recruitment strategy to attract top talent. Consider posting job openings on job boards, utilizing professional networks, and working with recruitment agencies. Conduct thorough interviews and assessments to ensure you find individuals who align with your company culture and possess the necessary skills and qualifications.
  • Training and Development: Provide ongoing training and professional development opportunities for your team members. This will ensure they stay up-to-date with industry trends, regulations, and best practices. Encourage continuous learning and offer incentives for professional certifications or advanced degrees.
  • Collaboration and Communication: Foster a culture of collaboration and open communication within your team. Encourage brainstorming sessions, regular team meetings, and an open-door policy. Utilize project management tools and communication platforms to facilitate collaboration, particularly if your team is working remotely.
  • Evaluate Performance: Establish performance metrics and conduct regular performance evaluations for your team members. Provide constructive feedback and recognition for achievements. Address any performance issues promptly and offer support and resources for improvement.
  • Delegate and Empower: Learn to delegate tasks and responsibilities effectively. Trust your team members to handle their assigned tasks and empower them to make decisions within their areas of responsibility. This will not only increase productivity but also foster a sense of ownership and accountability.

It’s important to note that as your team grows, you will need to establish policies and procedures to ensure consistency and professionalism in your services. This includes setting clear expectations, establishing workflows, and implementing quality control measures to maintain service standards.

Building a strong team requires careful planning, effective communication, and a commitment to nurturing talent. By assembling a capable and dedicated team, you will enhance your business’s capacity to serve clients, manage growth, and achieve long-term success.

Establishing a clear and competitive pricing structure is a crucial step in running a successful financial planning business. Your pricing strategy should align with the value you provide to clients, cover your costs, and position your business in the market. Here are some key considerations when setting your pricing and fee structure:

  • Market Research: Conduct market research to understand the pricing landscape in your area and within your target market. Analyze what other financial planners with similar services and expertise are charging. This will give you a benchmark for setting your prices. Keep in mind that pricing can vary based on factors such as location, clientele, and specialization.
  • Value-Based Pricing: Consider implementing a value-based pricing approach, where you price your services based on the value and outcomes you deliver to clients. Focus on the benefits and results your clients can expect to achieve through your financial planning expertise. This approach allows you to charge higher fees if you can demonstrate significant value to your clients.
  • Fee Structure: Determine the fee structure that best suits your business and client needs. Common fee structures in financial planning include hourly rates, flat fees, retainer-based fees, and percentage-based fees (based on assets under management or investment performance). Consider the pros and cons of each structure and decide which one aligns with your business model.
  • Transparency: Be transparent about your pricing and fee structure with clients. Clearly communicate your fees and the services included in each package. Provide a breakdown of your services and the benefits clients can expect to receive for the fees they pay. Transparency builds trust and helps clients understand the value they will receive in exchange for their investment.
  • Consider Your Costs: Take into account your business’s operating costs and the time you will spend delivering your services. Factor in expenses such as office rent, technology, software subscriptions, staffing, and marketing. Consider your desired income level and the profitability of your business when setting your prices.
  • Flexibility: Consider offering tiered pricing or customized service packages to cater to varying client needs and budgets. Some clients may require comprehensive financial planning services, while others may only need assistance with specific areas. Offering different pricing options allows you to accommodate a wide range of clients while maximizing your revenue opportunities.

Regularly evaluate and adjust your pricing strategy as needed. Monitor the market, assess client feedback, and review your profitability to ensure your pricing remains competitive and sustainable. Keep in mind that pricing can be a delicate balance between attracting clients and maintaining profitability, so be mindful of making any necessary adjustments.

Remember, pricing is not just about the numbers; it’s also about clearly communicating the value you bring to your clients’ financial lives. By establishing a fair and competitive pricing structure, you will not only position your business for success but also communicate your expertise and commitment to delivering exceptional financial planning services.

A well-crafted marketing strategy is key to attracting clients and growing your financial planning business. Developing a targeted and effective marketing plan will help you reach your ideal clients, differentiate yourself from competitors, and build your brand. Here are some essential steps to create a successful marketing strategy:

  • Define Your Target Audience: Identify your ideal clients and understand their needs, preferences, and pain points. Clearly define their demographics, such as age, income level, occupation, and location. This will allow you to tailor your marketing messages to resonate with your target audience.
  • Brand Positioning: Determine how you want your financial planning business to be perceived in the market. Develop a compelling value proposition that differentiates you from competitors. Consider the unique qualities, expertise, and approach that sets you apart and craft a brand story that connects with your target audience.
  • Online Presence: Establish a professional online presence through a user-friendly and visually appealing website. Optimize your website for search engines with relevant keywords and provide valuable content such as educational articles, blog posts, and client testimonials. Utilize social media platforms to engage with your target audience and share valuable insights.
  • Content Marketing: Create high-quality content that demonstrates your expertise and provides value to your target audience. This can include blog posts, videos, podcasts, and downloadable resources such as guides or ebooks. Share your content through your website, social media channels, and email marketing campaigns to establish yourself as a trusted resource in the financial planning industry.
  • Referral Program: Leverage the power of referrals to expand your client base. Develop a referral program that incentivizes your current clients, professional contacts, and partners to refer new clients to your business. Offer rewards or discounts to those who refer new business your way.
  • Networking: Attend industry events, join professional associations, and participate in networking opportunities to connect with potential clients and referral sources. Build relationships with other professionals, such as attorneys or accountants, who may refer clients to you. Consider giving presentations or educational sessions to establish your expertise and generate leads.
  • Client Testimonials: Request testimonials from satisfied clients and showcase them on your website, social media profiles, and marketing materials. Authentic and positive feedback from past clients can provide social proof and build trust with potential clients.
  • Track and Measure: Implement tracking mechanisms to measure the effectiveness of your marketing efforts. Monitor website analytics, track leads generated from different marketing channels, and assess the return on investment (ROI) of your marketing campaigns. Adjust your strategies based on the data and insights gathered.

Remember, consistency and persistence are key in marketing your financial planning business. Regularly evaluate and refine your marketing strategy based on market trends, client feedback, and your business goals. Stay up-to-date with digital marketing trends and changes in consumer behavior to ensure your marketing efforts remain relevant and impactful.

By creating a comprehensive marketing strategy, you will increase your visibility, attract your ideal clients, and position your financial planning business for long-term success.

Networking and building relationships play a vital role in the success of your financial planning business. By connecting with others in the industry and building a strong professional network, you can gain valuable insights, generate referrals, and expand your client base. Here are some key strategies for effective networking and relationship building:

  • Attend Industry Events: Participate in conferences, seminars, and workshops related to finance, investments, and financial planning. These events offer opportunities to learn from industry experts, stay updated on the latest trends, and connect with like-minded professionals.
  • Join Professional Associations: Become a member of professional associations such as the Financial Planning Association (FPA) or the National Association of Personal Financial Advisors (NAPFA). These associations provide networking opportunities, educational resources, and access to a community of financial planning professionals.
  • Volunteer: Offer your expertise and time to nonprofit organizations, community groups, or educational institutions. Volunteering not only allows you to give back to the community but also provides networking opportunities and helps you establish yourself as a trusted professional in the field.
  • Engage on Social Media: Utilize social media platforms to connect with industry professionals, share valuable insights, and engage with your target audience. Join relevant groups and participate in discussions to expand your network and visibility within the financial planning community.
  • Build Strategic Partnerships: Seek out professionals who complement your services, such as accountants, attorneys, or insurance agents. Establish mutually beneficial partnerships where you can refer clients to each other. This not only expands your network but also enhances your credibility and provides comprehensive solutions to your clients.
  • Host Workshops or Webinars: Organize educational workshops or webinars on financial planning topics to showcase your expertise. These events not only position you as a thought leader but also provide an opportunity to connect with potential clients and generate leads.
  • Nurture Relationships: Cultivate relationships with clients, professional contacts, and industry peers. Stay in touch with past clients through regular communication and periodic check-ins. Maintain a database of contacts and utilize customer relationship management (CRM) tools to manage and nurture your relationships.
  • Be a Resource: Offer value to your network by sharing helpful resources, information, and insights. Provide educational content through your blog, social media platforms, and email newsletters. By positioning yourself as a valuable resource, you will establish trust and credibility with your connections.

Networking and relationship building require genuine effort, time, and consistent engagement. Focus on building meaningful connections, rather than simply collecting business cards. Be authentic, listen actively, and show genuine interest in others.

Remember, successful networking is not just about what you can gain, but also about how you can contribute and add value to others. By fostering relationships within the financial planning industry, you will create opportunities for collaboration, professional growth, and business expansion.

Providing excellent client service is the cornerstone of a successful financial planning business. Satisfied and loyal clients not only become advocates for your services but also contribute to the long-term growth of your business through referrals and repeat business. Here are some key strategies to ensure you deliver exceptional client service:

  • Develop Strong Relationships: Build trust and rapport with your clients by establishing open and transparent communication channels. Listen attentively to their goals, concerns, and aspirations. Foster a personalized approach that demonstrates your genuine care for their financial well-being.
  • Understand Client Needs: Take the time to understand your clients’ unique financial situations and objectives. Conduct thorough fact-finding interviews and gather relevant information that allows you to tailor your financial planning services to their specific needs. Regularly reassess and adjust their financial plans as circumstances change.
  • Educate and Empower: Empower your clients by educating them on financial matters and explaining complex concepts in simple and understandable terms. Provide them with the knowledge and tools to make informed decisions about their finances. Foster a collaborative approach that involves them in the financial planning process.
  • Deliver Timely and Accurate Information: Be prompt and responsive in your communication with clients. Address their queries and concerns promptly, and follow up on action items in a timely manner. Provide accurate and transparent information in all client interactions.
  • Regularly Review Progress: Schedule regular meetings with your clients to review their financial progress and make necessary adjustments to their plans. Keep them informed about market trends, changes in regulations, and any potential impact on their finances. Provide performance reports and updates on the status of their financial goals.
  • Continuing Education and Professional Development: Stay updated with the latest developments in the financial planning industry. Pursue continuing education opportunities, attend seminars and conferences, and maintain relevant certifications. By expanding your knowledge and expertise, you can provide even better service to your clients.
  • Communicate Changes and Updates: Proactively communicate any changes in your services, fees, or business operations to your clients. Keep them informed about market updates, investment strategies, and any relevant regulatory changes that may affect them. Clear and transparent communication fosters trust and demonstrates your commitment to their financial well-being.
  • Solicit and Act on Feedback: Regularly seek feedback from your clients to assess their satisfaction and identify areas for improvement. Actively listen to their suggestions and concerns and take appropriate actions to address them. Regular client feedback surveys or informal feedback sessions can provide valuable insights for enhancing your client service experience.
  • Go the Extra Mile: Surprise and delight your clients by going above and beyond their expectations. Offer personalized touches, such as sending birthday or anniversary greetings, providing helpful resources, or organizing exclusive client events. Small gestures can make a big impact and reinforce your dedication to exceptional client service.

Remember, every client interaction is an opportunity to showcase your commitment to their financial success. By consistently delivering excellent client service, you will build long-lasting relationships, foster client loyalty, and position yourself as a trusted financial advisor.

Congratulations on completing the ten essential steps to start your own financial planning business! By following these steps, you have laid a strong foundation for success in the dynamic and rewarding field of financial planning. Remember, starting a business requires dedication, continuous learning, and a commitment to providing excellent service to your clients.

Throughout this journey, you have defined your services, determined your target market, developed a comprehensive business plan, obtained necessary certifications and licenses, set up your office and infrastructure, built a talented team, established your pricing and fee structure, created a marketing strategy, networked and built relationships, and committed to providing excellent client service.

As you embark on this new venture, remain adaptable and open to new opportunities and challenges. The financial planning industry is constantly evolving, and staying ahead requires a proactive approach and a commitment to ongoing professional development.

Continue to expand your knowledge, seek mentorship, and engage with industry peers. Embrace technology and leverage digital marketing channels to enhance your visibility and attract clients. Invest in building relationships, both within the industry and with your clients, as these connections will contribute to the growth of your business.

Remember, success doesn’t happen overnight. It requires dedication, perseverance, and a commitment to continuous improvement. Stay focused on delivering exceptional service, exceeding client expectations, and adapting to the changing needs of your clients.

With the right skills, expertise, and a passion for helping others achieve their financial goals, your financial planning business has the potential to thrive. By providing valuable insights, strategic guidance, and personalized financial solutions, you can make a significant impact on the lives of your clients and create a rewarding and fulfilling career for yourself.

Best of luck on your journey as a financial planner, and may your business flourish in the exciting world of financial planning!

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7 Things to Do Before You Launch Your Financial Planning Firm: What Would Arlene Say?

Arlene Moss

I talk to a lot of advisors who are gearing up to launch their firms. The world can never have enough fee-for-service financial planners, and I guarantee there are a fantastic group of clients out there just waiting for your unique planning style, personality, and experiences.

Unfortunately, not all financial planners feel prepared to strike out on their own.

Launching your own firm is exciting, but it can also be incredibly stressful. Putting some legwork in ahead of your launch can help prevent a lot of headaches once you get started.

You want to make sure you’re completely ready to hit the ground running, or at least as ready as anyone can be when they launch their own business.

These seven steps can help you start to lay the groundwork to successfully launch your own fee-for-service financial planning firm.

#1: Build Your Business Plan

Your business plan needs to have three things:

Your mission statement.

Your vision statement.

Your core values .

These three things will help guide you through the years and give you some inspiration to keep going, even when things are tough during your early days of business development.  

Through your mission, vision, and core values, you can start to put a plan in place for your business and turn your dream into a reality.

Mission Statement

What’s your core purpose? Why does your company exist? These are big questions, but your job is to sum them up in a clear, concise sentence (or two) for your company.

Your mission statement is internal and external. It will help keep you on course, inspire your future team, draw in prospective clients, and help you connect with referral sources.

In short, your mission statement needs to capture who you are so you can draw those into your business who are the best possible fit to either work with you or support you in your growth.

It’s not uncommon for advisors to hit a block  when putting together a mission statement. The thought of boiling down all of your hopes, dreams, and your purpose into a one-sentence elevator pitch seems pretty impossible.

Stick with these building blocks to get started:

Beneficiaries

Take the time to brainstorm as many of these building blocks as you can, then narrow it down to what truly represents you and your firm. Sometimes, a full-blown brain-dump is what it takes to get all of your ideas down on paper and figure out what sticks for you and your future vision for your business.

Remember, your mission statement should be short—no more than 15-20 words. It should also be written at an 8th, maybe 10th-grade reading level. Don’t use any jargon or industry slang.

You want your mission statement to resonate with your target clients, not other advisors (unless of course they are your target audience).

Vision Statement

This is similar to your mission statement, but it’s much more future-focused. Your vision statement is mostly used internally, although it can be helpful to talk to prospective clients about where you’re growing to as a firm.

Your vision statement should cover what you’re looking to accomplish in the mid- and long-term future, how you define success, and how the world will be different as a result of your work.

Again, just like with your mission statement, being concise is key here. You want 5-15 words total in your sentence. Stick with simple terms that are easy for everyone to wrap their heads around.

Core Values

What core values does your company operate under? Brainstorm all the words you believe describe you and your firm and determine which feel like the best fit. Skip any words that people expect any business owners to adhere to; people don’t need to know you’re responsible or hard-working. Your clients and future team members will expect that of you.

Instead, think of 5-6 words that really have an impact and set you apart. Feel free to list your core values separately or use them in a sentence.

Tired of trying to think of every last detail? We've compiled a checklist of  all the steps you'll need to take and the options you need to consider.  Download it for free

#2: Evaluate Your Pain Points and Strengths

It’s time for the next step in your firm launch strategy: conducting a SWOT analysis.  

S - Strengths

W - Weaknesses

O - Opportunities

T - Threats

If this concept seems a little intimidating, simplify things by looking at advantages and barriers. Everyone can think of their barriers pretty easily, so let’s start with the real challenge here: thinking of your advantages. Really let this settle in. Don’t sell yourself short!  

Your advantages might be your natural network. For example, if you left a former profession or industry to pursue financial planning, you might be a natural fit to serve employees still working in your ex-field of choice. You might have expertise in non-financial areas, or in specific areas of financial planning. Even your life experience can be a huge benefit.  

I spoke with someone recently who wasn’t sure what their advantages were before starting their firm. Then he told me his life story. He had faced every imaginable life challenge, from losing his parents, to growing up in poverty, to struggling with a wide range of personal tragedies throughout his young adult life.  

I wanted to shake him. His experience could help so many people through similar situations in ways that nobody else would be able to. His tragedy was going to help him have a positive impact on the lives of others, and he hadn’t ever thought about it that way.  

When it comes to thinking of your advantages, turn what you previously thought of as negatives into positives. Think about how the trials you’ve walked through can push you to better serve your clients.

Now, let’s talk about your barriers to entry.

Most advisors can think of a mile-long list of barriers. People almost always see the hurdles they face more clearly than the advantages they have.  

Don’t dwell on your barriers too long, but do list them out, and start to think about strategies you can use to break through them.

A few barriers to entry might be:

You’re new in a small town

You’re painfully shy

You have a number of larger, high-profile firms in your area

Every barrier can be overcome with a bit of creative thinking. Sometimes, you may be creating your own barriers because you’re unwilling to think outside of the box. The more you’re willing to tackle your barriers before you launch, the more likely you’ll be to move past them as a new RIA.

#3: Set a Budget

Most advisors have heard that it’s important to set a budget as a new RIA owner , but aren’t sure how to go about it.

Personally, I don’t believe you can feasibly plan past the first two years of business. Beyond that, there are so many unknowns, any plans you make will probably be irrelevant by the time you get there.

Instead, focus on planning as much as you can for your first two years. Ask yourself: what’s it going to cost to run for two years? Think about everything that goes into your practice—every expense.  

A few key tips here:

Be realistic. Don’t just assume you’ll run things on a shoestring budget, and don’t think that you’ll have enough revenue to start pulling a 6-figure salary in Month 3. Set realistic goals and expectations for yourself.

Have a safety net. There’s no telling how long it will take you to work through some initial hurdles in your launch, and you’ll need to pay the bills and, you know, eat. Don’t launch without a safety net built out! Figure out what you need in the bank to make your business happen for two years - both personally and professionally.

Be conservative in your spending . It’s easy to commit to a billion different software programs, shiny new tools, and hiring help with every part of your business that isn’t signing on new prospects. Unfortunately, you’re going to need to take on some of those tasks yourself in the first few years. Pick and choose what you want to outsource, and focus on building an efficient and streamlined tech stack to keep spending low.  

You can also start to plan for your first two years of business revenue. Again, the key here is to set conservative client growth goals for years one and two of your business.

You can do this two ways: you can either set goals for your total revenue or your revenue per client. The more you can realistically project these numbers, the more you can plan the timing for different purchases or investments in your business.

Your plan isn’t going to be perfect, but it’s certainly better than flying blind.

#4: Figure Out Your Service Offerings

Once you’ve built your business plan and estimated your budget, you need to figure out your service offerings . To decide the types of services you want to offer, you need to determine your target market, service offering, and fees. These three pieces fit together to create the full picture for your business. All three work together to help you grow your business.  

Start by thinking about who you want to work with. What does your niche need? How will your niche pay for your services? Typically, I recommend that you do the income sanity test. In general, people won’t pay more than 1-2% of their annual salary for your services. If you’re targeting new graduates and charging high fees, you may need to adjust.

It’s important you don’t mismatch client type with the wrong service offering. Once you determine who your ideal clients are, you can think about the type of services they need. Retirees need a different service model than millennial entrepreneurs. Build your service offerings according to what the people you want to serve need most. Then, think about the best fee structure to support those services.

#5: Estimate Client Growth Rate

This is a big part of your business’s launch plan, but it can be tough to estimate. Typically, I start by telling clients to stop the comparison game. It’s easy to see someone launch their firm and sign on 50 clients in the first three months of business, then put up a waitlist, and to feel completely deflated. The truth is that client growth rate depends on what you are doing, who you are serving, and how you’re serving them.

For some, planning is front-loaded, so their client growth rate will be slower. Say you’re signing on one or two new clients a month, but each of those clients takes a long time to get organized and kick off the planning process. Then, once they’re fully onboarded, their ongoing work switches into maintenance mode with occasional proactive planning that needs to happen. In this case, slow growth may be better! You don’t want to burn yourself out by signing on too many clients who all need a lot of hand-holding in the beginning few months of your relationship.

Figure out what numbers make the most sense for you and your unique service offering. It’s helpful to think about your service offering and ideal client before you think about client growth rate for this exact reason.

You need to set your growth goals based on your clients , not based on how big of a firm you want to build. This is a tough mental barrier to overcome, but if you can always set growth goals that are client-serving, your business will grow more successfully.

#6: Figure Out a Marketing and Sales Strategy

At this point, you’ve thought about your business plan, barriers and advantages, your budget, your services, and your growth goals. These are all of the elements you need to start thinking through your marketing and sales strategies .

You know your ideal audience, you know your values and mission, and you know your growth goals. Now you need to ask yourself some intentional questions:

How can I reach and connect with my ideal audience?

What’s the best way to communicate my value?

What sales strategies line up with my values and my mission?

What marketing tactics can help me reach my growth goals?

There are so many different ways to “sell”, or rather to market, your services. You can pursue content marketing, local marketing, webinars, in-person events, COI campaigns…the list goes on and on.

It’s easy for a new RIA owner to feel like they’re drowning in possibilities. Instead of trying to do everything at once, take the time before your launch to do some research.

Make a list of what marketing strategies feel comfortable for you, and what you think will reach and convert your ideal clients. You might start with one or two strategies that you feel confident about, such as:

Sharing your content on social media

Growing your referral network

Meeting with COIs in your area

Developing a lead magnet to grow your email list  

Next, mull over how you want your sales process to look. It can help to have a set system in place before your launch. For example, you may:

Start with a 15-minute coffee chat meeting.

Book an initial consultation if you mutually feel you’re a good fit.

Use this initial consultation as a discovery call.

Review your services and rates on the discovery call.

Book a final follow-up meeting if they have any questions or move them through the onboarding process if they’re ready.

#7: Get Your Registration Together

State registration is one of the most time-consuming and stressful parts of your launch plan, so it pays to be prepared.

To pass your state registration, you’ll likely need either:

To have passed your Series 66 or 7 exam

Have one of the following registrations in good standing: Certified Financial Planner® (CFP®), Chartered Financial Analyst (CFA), Chartered Investment Counselor (CIC), Chartered Financial Consultant (ChFC), or Personal Financial Specialist (PFS)  

You’ll also need:

A name for your firm

An established business entity

A bank account for your RIA

Clear contact information

Once you have these elements pulled together, it’s time to submit your FINRA SAA Form. In addition to everything here, you’ll need to know your services in order to register. This is why working through some of the initial legwork, brainstorming, and research in Steps #1-6 can be helpful before registering.

Ready to Launch?

The more you can project your future business development goals, the more you’ll set yourself up for success in the first two years of your business.  

As you work through this to-do list, keep in mind that you want to create a firm that both you and your ideal clients will love. If you build something you’re passionate about and that serves your niche well, then you’ve already won half the battle.

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opening your own financial planning business

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How to Launch a Wealth Management Firm

The independent wealth management industry has been a consistently growing segment of financial services over the past several years. According to PwC, there was $115.1 trillion in global assets under management by wealth managers in 2022. This figure has many financial professionals contemplating the idea of opening their own wealth management firm. In this article, we’ll take a look at some key tips independent financial advisors should keep in mind when opening their own wealth management firm.

Aspiring wealth management entrepreneurs have to ensure they’re following the rules and etiquette when leaving their current employer. In many cases, financial services employees have contractual obligations to their employers that prevent them from working on or for a competing firm and advertising outside services to clients. Some employees may also have non-compete clauses in their contracts that forbid them from working in the financial services industry for a period of time following their departure, although these contracts can often be broken under some circumstances. (For more, see: Don't Sign That Non-Compete Without Reading This .)

Entrepreneurs should carefully consider these contractual obligations to avoid being sued and adhere to common-sense etiquette. For instance, entrepreneurs should not work on their new business during business hours, shouldn’t contact clients until they have left their employer and should approach former clients tactfully after-the-fact to avoid any problems with their former employers.

Independent financial advisors that seek to build up their own practice are inevitably taking a lot of risk in the form of upfront costs. Unlike most small businesses, advisory firms must meet a number of complex regulatory requirements that can prove quite expensive. The first major expense incurred by a new business is compliance, including the setup of an ADV (client brochure) and a state licensure. In general, these services can often cost thousands of dollars with a recurring costs each year. Insurance costs, office expenses, letterheads, websites, banking costs, association costs, subscriptions and numerous other costs can easily add up to over tens of thousands of dollars. (For more, see: Start Your Own Financial Planning Firm .)

Financial advisors must also consider the opportunity cost of establishing their own independent practice, since a percentage of their existing clients are unlikely to follow them. In addition, many referrals may refuse to move over to a new practice and instead prefer to remain with a larger company. These costs can also amount to tens of thousands of dollars, but are offset by greater profitability on a per-client basis.

Most entrepreneurs have to hit the ground running as soon as they leave their former employers to make payroll and sustain their new enterprise. Often, the first step is reaching out to former clients while keeping the rules in mind. Before reaching this point, entrepreneurs should have a well-rehearsed pitch for these former clients that effectively communicates why they should move their accounts. Newly established businesses have no reputation (other than the owner’s) and a high level of risk in terms of solvency early on, which are challenges entrepreneurs must overcome when dealing with these former clients and trying to attract new clients. (For more, see: 4 Questions All Financial Advisors Need to Ask .)

The best pitches highlight the entrepreneur’s skill sets and competitive edge compared to larger institutions. For example, the new firm may specialize in using computer algorithms to identify the best opportunities. A new owner may also point out that smaller wealth management firms are able to provide more personalized client support given the smaller client base, ensuring more attention is paid to their account and maximizing their returns .

Setting up a new wealth management firm can be a complex and time-consuming process that involves extensive legal, regulatory and compliance work. While financial advisors may be familiar with many of these things, establishing them often requires professional assistance. The good news is a growing number of companies have been established to help financial advisors set up their own practice. In exchange, these companies may charge a consulting fee, percentage of assets or even take an equity stake in the new firm. Tru Independence, for example, handles everything from registered investor advisor (RIA)/broker-dealer registration and credit and lending facilities to office space selection and design for aspiring entrepreneurs.

In addition to a solid legal footing, independent financial advisors should consider investing in professional help when it comes to designing a professional-looking website, business cards and other marketing materials. Contractors can prove useful in avoiding the hiring of full-time employees to handle simple tasks like bookkeeping, accounting or even secretarial duties, which can help keep costs low early on without sacrificing quality. (For more, see: Becoming an Independent Financial Advisor .)

Venture capitalist Marc Andreessen once said “software is eating the world,” which means technology is rapidly changing the way entire industries operate.   While financial services have been slow to adopt new technology, it’s becoming an increasingly important part of the ecosystem. There are many different tools that independent advisors can use to improve their client services and optimize their profitability. (For more, see: How Technology Is Changing Financial Advice ,)

Technology can also be used to reduce costs in other areas of the business, such as payroll, accounting or marketing. For example, do-it-yourself services like Gusto can help keep payroll costs down relative to hiring an internal accountant, while automated phone systems by companies like Grasshopper can avoid the need for a dedicated secretary. These types of services may not be advisor-specific, but can certainly help improve profitability.

Opening a wealth management firm is a complex process, but with the right help and tools in hand, it can be very rewarding for entrepreneurs. By keeping these basic rules in mind, financial advisors can increase the odds of success and avoid costly lawsuits and other difficulties associated with moving away from the corporate world and into their own practice.

PwC. " One in Six Asset and Wealth Management Companies Will Be Swallowed Up or Fall by the Wayside in the Next Five Years: PwC Global Asset & Wealth Management Survey ."

Investor.gov. " Investment Advisers ."

Andreessen Horowitz. ' Why Software Is Eating the World ."

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Start your own Financial Planning Firm

Navigating the Journey of Entrepreneurship: Guide to Establishing Your Own Financial GPS

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How to Start a Financial Planning Business from Scratch

Home » Business ideas » Financial Service Industry » Financial Advisory Business

Be you a veteran financial planner looking to get out from under an over demanding boss, or a young individual just out of college, the dream of starting your own financial services venture is probably an aspiration that gets you out of bed on even the rainiest of days. Things like money, autonomy, convenient office hours and recognition within the community all come as part of the package, at least in our thoughts. But in the real world, starting a financial planning venture is a lot of hard work.

A lot of people who fail are often those who fail to plan. Financial planners work with individuals, families and businesses to invest their money wisely. These professionals also called financial advisors are knowledgeable financial experts with the ability to differentiate profitable investment opportunities from poor performers. They match clients with a customized mix of products that protect their assets while earning a profitable return.

A lot of things have moved us to believe that the 2008 financial crisis made the job market an increasingly competitive place, one of the few careers estimating growth and relevance is that of a financial planner. We believe that the age of your average financial planner/advisor is increasing along with the ages of his or her client base.

This is the reason why more planners are leaving their practices and more potential clients are entering their retirement years. Also we believe that this changing of demographics in the American population is rapidly opening up new areas of specialization, such as long-term care and alternative investments.

18 Steps to Starting a Financial Planning Business from Scratch

1. understand the industry.

This industry is made up of businesses that provide financial planning, financial advice and wealth management to people and business clients. Businesses in this industry also offer advice in conjunction with other activities such as portfolio management, protection planning and brokerage services.

The rise in the financial planning business has compounded swiftly over the past five years. Prior to the current five-year period, increased unemployment and falling disposable income negatively impacted new and recurring advice fees. Analysis has shown that since consumers had less available income, they prefer to save money or pay off debts instead of capitalizing on investments.

But the return to economic growth and employment reversed this trend. Research believes that over the five years to 2022, revenue is expected to continue to increase as financial markets improve. Experts forecast that the growing number of affluent households and rising equity markets will aid grow total Assets Under Management (AUM) for the industry and raise revenue generated from fees charged on the value of AUM.

Also within the 10 years to 2022, industry value added which measures an industry’s contribution to the economy, is expected to grow at an annualized rate of 6.0%, which is above the expected 2.0% annualized growth of US GDP during the specific period. This has led us to believe that the financial planning industry is in a mature phase of its life cycle.

The industry’s rapid expansion after over the 10 year period accelerated contribution to overall economic growth, but the declining state of establishment and wage growth has muted the industry’s role in other facets of the economy. We believe that the big US banks and broker-dealers are increasing their share of the financial planning industry as the industry has experienced an increased rate of consolidation and it is expected to keep rising.

2. Conduct Market Research and Feasibility Studies

  • Demographics and Psychographics

We strongly believe that this business is perfect for seasoned business owners or upper level managers who are looking for a career change. A financial planner must be experienced in financial and business management, marketing, team building and management.

To survive in the industry, you must also understand how to generate revenue from a wide range of businesses and expand existing streams of income. Day-to-day activities of a financial planner include meeting with clients in person, via video conferencing applications or services, and making recommendations to their clients. A lot of financial planners spend majority of their days building financial plans for clients and giving advice on finances.

Scheduling and project management is a major part of the job also. Businesses that provide financial planning need to be able to coordinate multiple schedules since even small businesses can have several officers who need to be present for all meetings. We believe that a financial planning venture makes money by charging a fee for advice or for financial plan construction. This fee can be either a flat fee, hourly fee or a revenue-share fee.

3. Decide Which Niche to Concentrate On

When starting this business, you should know that financial planning should cover all areas of the client’s financial needs and should result in the achievement of each of the client’s goals. The scope of planning would usually include the following mentioned below and they can also serve as a niche to choose from or you can decide to provide financial planning services to a particular segment of the population.

  • Risk Management and Insurance Planning
  • Managing cash flow risks through sound risk management and insurance techniques
  • Investment and Planning Issues
  • Planning, creating and managing capital accumulation to generate future capital and cash flows for reinvestment and spending, including managing of risk-adjusted returns and to deal with inflation
  • Retirement Planning
  • Planning to ensure financial independence at retirement including 401Ks, IRAs etc.
  • Tax Planning
  • Planning for the reduction of tax liabilities and the freeing-up of cash flows for other purposes
  • Estate Planning
  • Planning for the creation, accumulation, conservation and distribution of assets
  • Cash Flow and Liability Management
  • Maintaining and enhancing personal cash flows through debt and lifestyle management

The Level of Competition in the Industry

The value of Assets under Management (AuM) worldwide, an indicator of demand for financial planning and investment advice services is about $70 trillion. The global AuM is forecast to exceed $100 trillion by 2022, with nearly half residing in North America.

In North America AuM is expected to grow at a compound annual rate of 5.1% through 2022 to more than $49 trillion (from a 2012 total of $33.2 trillion), exceeding expected AuM for Europe, Asia/Pacific, and the Middle East and Africa combined.

From our research, we have been able to note that the US industry includes about 16,000 establishments (single-location companies and units of multi-location companies) with combined annual revenue of about $37 billion. We also believe that demand in the industry is driven by consumer income, wealth and demographics. The profitability of individual ventures rest solely on effective marketing.

Bigger companies in the industry have some advantages in providing expertise in a wider range of investment options, and they may be able to charge lower fees. While smaller companies can compete successfully by providing better service and advice. The US industry is concentrated: the 50 largest companies account for about 55% of industry.

4. Know Your Major Competitors in the Industry

  • Stancorp Investment Advisers Inc.
  • Cambridge Investment Research Advisors Inc.
  • Moneta Group Investment Advisors LLC
  • Oxford Financial Group Ltd.
  • Sontag Advisory LLC
  • Plante Moran Financial Advisors
  • Ronald Blue & Co. LLC
  • Edelman Financial Services LLC
  • Clarfeld Financial Advisors Inc.
  • 1st Global Advisors Inc.
  • GW & Wade LLC
  • Harris SBSB
  • M. Davis Inc.
  • Homrich Berg

Economic Analysis

If you are a veteran in this business trying to go independent, you are probably tired of the constant sales pressure, office politics and other corporate restrictions placed upon you now. But then at this particular point in your life, you have probably developed your own personal investment philosophy that may differ from the methods espoused by your current employer.

There is also a possibility that you may also be concerned about managing your book of business and feel that your clients would be better served in a more independent setting. Indeed having an established client base is a huge advantage for anyone starting their own financial planning business, but it also creates its own set of issues such as retention and service of key customers when moving those accounts from one company to another.

In this industry, newcomers will face much bigger obstacles on the path to success. In addition to the normal start-up issues that must be dealt with, rookies must also build up a client list from scratch, as well as learn the mechanics of the business. Note that just like many entrants into this field; you may see financial planning as a way to make a real difference in other people’s lives.

Some will also be enticed by the possible prestige, freedom and high compensation enjoyed by many financial planners. Have it mind that irrespective of your background or motives, building your own financial planning business will likely be one of the most difficult – and satisfying – things you have ever done in your adult life.

5. Decide Whether to Buy a Franchise or Start from Scratch

We strongly believe that with the recent pension freedom and other legislative changes creating greater complexity around pensions, tax and general financial planning, the consensus is that the next ten years and more are likely to be a boom time for financial planning businesses.

All these forecast and the excitement of owning your own company, mean that whether you’re a seasoned adviser looking to go it alone or a newcomer to the industry, the prospect of starting up your own financial planning business can look appealing.

But then building a business from scratch is no mean feat and the ever-increasing costs and changing regulatory landscape can make it an uphill struggle especially in the financial planning business. Careful planning, research and determination are all key ingredients to building a successful business, and failing to plan could, quite literally, be planning to fail. Starting from the scratch will sure favour some entrepreneurs. But for the sake of starting this business buying a franchise is sure the best route of entry into this business.

6. Know the Possible Threats and Challenges You Will Face

A lot of entrepreneurs dream of setting their own work hours, maximizing their income and becoming their own boss. There can never be a better time or moment to start a financial planning business, but there are few challenges and barriers to starting your financial planning business and they may include…

  • Deciding what sort of financial planning business you want to start
  • Choosing an entry strategy for your financial service business
  • Constructing a business plan for your financial planning business
  • Incorporating and marketing your practice
  • Learning the policies that govern the financial aspects of your target market

7. Choose the Most Suitable Legal Entity (LLC, C Corp, S Corp)

For you to able to make this very important decision intelligently, you must be knowledgeable about the alternatives from which you may choose. Note that a business can be structured in several ways; however, the law classifies businesses so that most fall into one of three legal forms. They are: sole proprietorship, General Partnership and Corporation.

There are also variations on some of these basic legal forms — the S corporation, the limited partnership, and the Limited Liability Company (LLC), a relatively new form of business organization which has gained legal status in a majority of states. But for the sake of this article, the LLP is the best legal entity for a financial planning business. The reasons are:

It gives you Liability Protection

Indeed all participants in the general partnership legal structure are personally responsible for the actions of the company. This includes debts, liabilities and the wrongful acts of other partners. But limited liability partnership offers you liability protection.

This type of partnership structure protects individual partners from personal liability for negligent acts of other partners or employees not under their direct control. This simply means that partners are not personally responsible for company debts or other obligations.

It gives you an immense Tax Advantage

Forming the partnership simply means that all partners are normally liable for filing personal income taxes, self-employment taxes and estimated taxes for themselves, according to the Internal Revenue Service. But the partnership itself is not responsible for paying taxes.

We believe that the credits and deductions of the company are passed through to partners to file on their individual tax returns. But then the credits and deductions are divided by the percentage of individual interest each partner has in the company, which can be very beneficial for partners who have a limited interest in the company or special tax requirements due to their interests in other businesses.

It offers you business Flexibility

You might not know that limited liability partnerships offer participants flexibility in business ownership. It simply means that partners have the authority to decide how they will individually contribute to business operations. Managerial duties can be divided equally or separated based on the experience of each partner. Also partners who have a financial interest in the company can elect to not have any authority over business decisions but still maintain ownership rights based on their percentage interest in the company.

8. Choose a Catchy Business Name

  • Mascot financial planners
  • Spiral finance
  • Success advisors
  • Main gate financial consults
  • Afterlife advisors
  • Manny planners
  • Access funds
  • Estate advisers
  • Sole finance LLP
  • Arthur financial associates
  • Becky and partners

9. Discuss with an Agent to Know the Best Insurance Policies for You

Note that in this business, you are responsible for your client’s financial health. Also have it in mind that your clients look to you for stability and assistance in achieving financial goals, whether it is buying a home, managing their retirement fund, or simply improving household cash flow.

But what if something went wrong? Indeed a downturn in the economy or miscalculation could mean your client’s financial situation is suddenly at risk, and you could be facing a lawsuit that alleges you failed in your professional duties. And CFPs face more than just professional liabilities. There is a possibility that you could be sued for property damage, injuries, or workplace accidents. Your risk management plan will also have to account for basic business risks.

  • Business Owner’s Policy
  • Professional Liability Insurance Coverage (E&O)
  • Computers & Media Insurance Coverage
  • Data Breach Insurance Coverage
  • Valuable Papers & Records Insurance Coverage
  • Business Income for Off-Premises Utility Services Coverage (OPUS)
  • Workers’ Compensation Insurance
  • Commercial Auto Insurance
  • Home-Based Business Solutions

10. Protect your Intellectual Property With Trademark, Copyrights, Patents

You need to understand that your financial planning business competitive edge and its future value may rest on the way you protect assets such as trademarks, patents, copyright and industrial designs. You need to start by understanding the rules about trademarks, patents and copyright so that you can protect your venture’s works and innovation and safeguard them from potential legal difficulties.

Intellectual property (IP) rights play an important role in monetizing innovation—if you make it easy for competitors to copy ideas, you can ultimately destroy the venture’s success. Have you ever considered how many people have access to your IP during the tax preparation, review and audit process? In order to adequately protect your business, you need to,

  • Use a non-disclosure agreement liberally
  • Be proactive in protecting your IP
  • Invest in universal IP protection, where possible
  • Discover your business advantage

11. Get the Necessary Professional Certification

The Certified Financial Planner (CFP) which is the most popular and renowned certification in this industry is a mark of financial planners conferred by the Certified Financial Planner Board of Standards (CFP Board) in the united states, and by 25 other organizations affiliated with Financial Planning Standards Board (FPSB).

For individuals to be able to get the authorization to use the designation, they must have met education, examination, experience and ethics requirements, and pay an ongoing certification fee. Other certifications may include;

  • FPSC Certification
  • Certified Corporate FP&A Professional
  • CISI Certification

12. Get the Necessary Legal Documents You Need to Operate

Almost every state and country have laws about what sorts of businesses need to be regulated by the government. This is why it is strongly advised that you check with your local laws to determine if you will be required to get a license for your financial planning business before you begin. These are some of the documents you might need;

  • Business license
  • Preparer Tax Identification Number (PTIN)

13. Raise the Needed Startup Capital

Every business that wants to be successful requires outside funding, but many entrepreneurs don’t know where to find it, or how much to ask for it. Be it loans, small business grants, angel investors, venture capital, crowd funding, or investments from friends and family, you can greatly improve your chances of securing business capital. Ways of financing your financial planning business may include;

  • Personal savings
  • Angel investor
  • Partnership
  • Venture Capital
  • Loans and grants
  • Alternative funding source like Crowdfunding

14. Choose a Suitable Location for your Business

When you are preparing to start this business, you sure will have noted financial businesses in your area. They are easy to spot. It is tough to come across a strip mall that does not have one of these guys already in it, but you should ask yourself: why do they choose these locations? You can be rest assured they have done their homework.

We believe that these ventures choose their locations because of population density, average adjusted gross income (AGI) in that surrounding area and proximity to their target market. We strongly advice that you use the same factors when considering locations for your financial planning business.

Note that you are familiar with the specific area you are considering, and you probably have a pretty good idea of how many people have access to that location, what income level they belong to, and you can do a survey of competitors by driving around. We believe there are specific demographical and socioeconomic reports that provide specific details relating to these topics. You should consider all these before settling for a location.

A lot of businesses in this industry use their homes as business locations. Indeed the clear advantage is saving money on overhead expenses. However, some business owners choose to operate from commercial offices because it conveys a professional image to clients. If your funds are limited, you may want to consider starting your business in your home, then eventually moving into a commercial space once you earn a profit.

15. Hire Employees for your Technical and Manpower Needs

The financial Planning business requires almost the same start-up costs as any other business. The costs would go into furniture, rent, advertising, technology, utilities and perhaps an earnest deposit with the new broker-dealer (if one is to be used). Licensing and training costs must be counted for those who need them as well. Individuals well versed in the industry will also need to factor in any possible loss of revenue resulting from the changeover to a new company.

You also need to decide on what kind of financial planning practitioner you will be, and this is an important decision. We believe that this choice involves both the type of services you will provide your clients as well as your method of compensation. Note that financial planners who work on commission tends to earn much more (on average) than fee-based planners.

Have it mind that clients in this business who specifically desire unbiased advice, usually seek out fee-based planners. Indeed your personality type may play a role in making this choice; if you have an analytical mind and don’t enjoy high-pressure sales, you may feel more at home with just running numbers and making recommendations.

On the other hand, if you are a Type-A personality who likes working with people, then you may have more success using a sales-based approach. The type of Business model you decide to employ may also determine which licenses you will need to obtain.

We also recommend that you create professional relationships, especially one without an established book of business. Finding an attorney or CPA who is willing to partner with you may be the best thing you could do for your business.

Note that having a mentor can be equally important, particularly for newcomers to the business. You need to have someone to ask advice of who can guide you through the difficult early stages. You need to make sure that all of these pieces fit correctly, and they will sure take some time and adjustment, but the end result should be a streamlined business.

The Service Delivery Process of the Business

Your success in any business is your ability to get all the members of your team on the same page at all times. As the chief executive officer or president of the consulting venture, it is you responsibility to give direction to the business. You need to be able to understand how the industry works and all loopholes to avoid. The service process of financial planning is summarized into six simple steps, they include;

  • Establishing and defining the client and personal financial planner relationship
  • Gathering client data and determining goals and expectations
  • Analysing and evaluating the client’s financial status
  • Developing and presenting the financial plan
  • Implementing the financial planning recommendations
  • Monitoring the financial plan and the financial planning relationship

16. Write a Marketing Plan Packed with ideas & Strategies

Marketing your financial planning is best done through direct mail, online direct marketing and referral marketing. We recommend that you buy a mailing list of companies that have already used financial planning or consulting services within the last 30 to 90 days.

These companies are most likely to want to hire another planner. Be sure to ask your list broker for average dollar amount spent on services and filter the list to include only buyers (called a “buyer’s list”). You should also consider printing flyers and business cards and hand them out to local businesses. You may not get much work this way, but it gets your name out there. Ways to market your financial planning business is simply outlined below;

  • Bring in a dedicated marketing resource
  • Implement a referral strategy
  • Visit your existing clients systematically
  • Build events
  • Build alliances with other referrers of work

17. Develop Iron-clad Competitive Strategies to Help You Win

Just like we must have stated so many times in this article, the financial planning industry is filled with huge competition. Bigger ventures have in-house marketing and PR teams to take care of business development. Small ventures, however, need to be strategic in their marketing efforts.

  • Most financial services venture often make two common mistakes when approaching their marketing strategy: They become bogged down in a flurry of marketing activities without stopping to evaluate the tangible benefits of those tactics, and they fail to adequately employ existing marketing assets.
  • Businesses that want to initiate or revitalize their marketing program should start by scrutinizing existing marketing activities and determining the value that each activity brings to the venture.
  • Get rid of activities that aren’t delivering payoff for the venture. Instead, focus on marketing activities that will bring value to your venture through business development and building client loyalty.
  • Avoid seeing tactical results such as media exposure, website traffic, email click-through rates, and social media “Likes” and “Followers” for tangible business outcomes such as lead generation, conversion rates, and acceptance of new service offerings among existing clients.
  • Make use of intellectual capital to get a foot in the door with prospective clients. For example, when a venture member presents at a conference, use that opportunity to reach out to related target audiences following the event by leveraging on the presentation’s content as a hook to engage prospects in a meaningful conversation.
  • Understand how to sell “intrinsically” to demonstrate your venture’s expertise on a first-hand basis and establish greater trust with prospective clients. Effective marketing facilitates the engagement of prospective clients in a substantive discussion of their specific situation, challenges and goals.

18. Develop Strategies to Boost Brand Awareness and Create a Corporate Identity

Understand that making your financial planning business more profitable is a simple matter of specialization and differentiation. It is your duty to make your firm stand out. Never charge the lowest fees. In this industry, the higher the fee, the more competent you appear to prospects. At the same time, your advice and work must be worth the price.

  • Attract and engage your target market
  • Enhance and reinforce your brand
  • Position yourself as a trusted advisor and go-to resource
  • Generate and identify leads for more business
  • Develop more profitable relationships with clients, prospects and referral sources

Related Posts:

  • Financial Advisor Business Plan [Sample Template]
  • How to Become a Financial Advisor for Professional Athletes
  • 10 Insider Secrets of the Most Successful Financial Advisors
  • How to Become a Certified Financial Advisor Without a Degree
  • How to Start a Financial Coaching Business
  • What is the Job Description of a Financial Advisor Intern?
  • A Sample Financial Advisor Marketing Plan Template

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Setting Up An RIA And Starting A New Financial Planning Practice On Less Than $10,000

September 17, 2013 07:02 am 54 Comments CATEGORY: Practice Management

Executive Summary

Taking the leap to start your own financial planning practice can be a scary proposition. Not only is there the stress of starting up the business and figuring out how to market and find your own clients, but there's also the responsibility of making a huge number of key decisions about the business model and companies and services to engage, and just the outright cost of setting it up in the first place.

In this guest post, financial planner Sophia Bera shares what she went through in recent months in going out on her own and setting up her own independent RIA financial planning firm from scratch, and managing the expenses to keep them at only $5,000 in start-up costs and another $5,000 in ongoing costs in her first year (which is important, given the lack of startup funding for advisory firms !). Sophia also shares some of her own thoughts about why she decided an entrepreneurial path was right after spending years as a financial planning employee, and other tips she's found useful in helping to facilitate her early success.

If you've been thinking about what it costs to go out on your own - or to make a transition into financial planning for the first time - and wondering what the key issues and decisions are to consider, I hope you find today's guest post to be helpful!

Bera Small Headshot

Author: Sophia Bera

Sophia Bera, CFP® is the Founder of Gen Y Planning  and is the top Google search for “Financial Planner for Millennials.”  She works virtually with people in their 20s and 30s across the U.S. She is a contributor for  AOL’s Daily Finance  website and has been quoted on various websites and publications including Forbes, Business Insider, Yahoo, Money Magazine, InvestmentNews, Financial Advisor magazine, and The Huffington Post. Sophia is a sought after speaker and presenter and in her free time enjoys performing as an actor/singer while traveling the world as a digital nomad.  You can view Sophia’s  LinkedIn  profile or follow her on Twitter  @sophiabera . If you’re interested in setting up a business coaching call with Sophia, go to:  Clarity.fm/sophiabera .

In April 2013, I quit my job at a start-up and launched my own RIA, Gen Y Planning .   By the end of May, I was a Registered Investment Advisor (RIA) in the state of Minnesota and started working with clients.  At the beginning of July, my website launched.  Now, I have a dozen clients across the country that are in their 20s and 30s.  A lot of financial planners have been contacting me to ask me how I did it.  This is all quite new for me, but I’ve learned a lot in the past few months.  This is one of the best things I’ve ever done, and I have never been happier.  It’s been a roller coaster ride, but that’s how I work: my life is filled with extremes.  You don’t get the highest highs without the lowest lows.  So if that makes you want to vomit, then you might want to keep your desk job.  However, if you know that your talent isn’t being maximized at your current company and you are willing to pull yourself up by your bootstraps to live the life you’ve envisioned, then hang on!  Today, I will give you an inside look at what I did to launch my own firm, including the costs associated with my choices.  I’ll also tell you how I think I could do an even better job, and how technology has made it much more affordable to launch a business than ever before.

This year I spent $5,038 in one-time start-up costs to launch my RIA Gen Y Planning .  In addition, I spend about $224 in monthly recurring costs and $4,241 in annual costs to set up and run my RIA.  For 2013, my total business expenses will come in right around $10,000.  (This doesn’t include any conferences, travel costs, or food costs related to business).  If we project these costs forward they would be around $7,000 annually, but I plan on hiring a Virtual Assistant next year so they’ll likely be higher.  Plus, I’d like to add a video to my website and I’m considering paying for a co-working space.

Envision Your Ideal Life

Before you set off on your own, spend some time dreaming.  Remember what that is?  It’s that thing you used to do when you were 10 years old.  Take some time to really think about what your ideal life would look like.  How would you structure your time?  Where would you live?  Who is in your life?  These things are all important because they shape the way you design your business.  For example, I love working remotely. I like opening my laptop and being at work.  I like working in yoga pants instead of a suit and heels.  I want to make enough money so my husband can be a stay at home dad when we decide to start a family.  We want to spend at least one month a year traveling.  We want to be based in Minnesota because that is where our families are, but ultimately two weeks of vacation time a year wasn’t cutting it.  I knew I wanted to spend more time seeing my friends and family.  I also wanted to start singing again.  Just like I used to do when I was 10 years old.

Why Entrepreneurship Works for Me

This totally shaped why I wanted to leave my old company and how I wanted to structure my new company.  It also made me realize that I didn’t want to go back to working at a local financial planning firm.  I knew that I wanted more time to travel, more time away from the computer, more time with my friends and family, and I needed more time to be creative.  Therefore, I wanted to build a practice working with Gen Y clients across the country rather than just working with clients locally.  I don’t ever want to pay for a permanent office space.  It’s just not my style, and it’s also expensive.  Yes, I am a financial planner without an office.  If you do need a meeting space, I encourage you to look at co-working spaces which are much more affordable than a private office.

Choose a Niche

Your advisor niche should be something that comes very naturally to you and that you’re great at.  Think of the client meetings that end and you think, “Wow, I wish I had 100 clients just like that!” because you had so much fun!  Yep, I said fun!  You should enjoy working with the niche that you choose.  I have always LOVED working with clients in their 20s and 30s.  Why?  Because I can relate to them!  I’m really good at helping Gen Y organize their finances to reach multiple goals so that they can achieve their dreams.  Plus, I try to keep it fun!  Why?  Because there are a lot of boring financial planners out there, and just by being interesting, I set myself apart.  The clients that tend to want to work with me are single businesswomen, entrepreneurs, and young couples because I can relate to them.

Find Your Special Sauce

Maybe you’re awesome at working with families, helping people through transitions, or working with people in the medical profession?  If you’re having trouble figuring out what makes you unique, Derek Halpern from Social Triggers suggests answering these questions:  How do you help people?  What do you give them?  What is your secret ingredient?  What is your special story?

I know that most financial planners are “generalists.”  They use phrases like “wealth manager” and “retirement specialist,” therefore, if you choose a niche, you will set yourself apart from 99% of financial planners.  (How’s that for a quick way to make it into the top 1%?!?)  Here’s the thing, if you don’t choose a niche, how will other people know what type of clients to send to you?  They won’t.  Therefore, most people won’t send you any clients.  I am very clear about who I work with, and this has been a huge benefit.  This will also help you gain recognition in the media, and press is a great way to build your brand.  I’m now seen as a “Gen Y Expert” because I’ve made my focus Gen Y.  I gear my content towards this demographic and I learn as much as I can about millennials so I can stay up to date on what is important to my niche.

The Details You’ve Been Waiting For On How I Set Up My RIA

Ria compliance and setting up the business.

Choose a Business Name:   I did a variety of different searches to ensure that no one else had my business name or anything close to it.  See if you can also do a trademark search in case you decide to trademark your business name, logo, and tagline at a later date.

Determine Your Business Structure:  I formed an LLC in the state of MN for $155.  I was also advised to file a Doing Business As (DBA) in the state of MN for $50.  Find out what business licenses you need in your city, county, and state.

Set Up a Business Checking Account: Once you’ve determined your business structure and received your Tax ID number (if needed), then you can sign up for a business checking account.  I also decided to get a business credit card.

Get Your  IARD  Number: It takes two weeks, so do this early in the process.  That way you can work on other business items while you’re waiting for this.

Hire an RIA Compliance Company: I made an early decision to hire a company to file my initial compliance documents.  This was one of the biggest expenses in my initial start-up costs.  This can cost between $1,800-$3,000 depending on your state, the size of your firm, the type of firm you’re creating, and you are going to think you are smart enough to do this yourself.  After staring at the forms for a week, I finally bit the bullet after a strong recommendation from Blair Hodgson DuQuesnay, and I hired  Comprehensive Securities Compliance Solutions , better known as CS2 (another alternative is Jim Cullen of WB Compliance at [email protected] ).  It was the best money I spent.  Let me repeat: this saved me time and money!  If you only take away one piece of advice, let it be this: pay someone who specializes in this to set up your compliance docs (especially if you’re in the state of California and it takes them 54 days to even look at your initial application.  No joke).  This cost me $1,800 and saved me a ton of headaches.  Keep in mind that you also have to pay for yearly compliance costs.

A few things to note:

  • Once your information is sent to the state, it can be anywhere from 2 weeks to 3 months before you are registered.  It took me just over two weeks.
  • You may be required to buy a surety bond.  A $25,000 surety bond is required in the state of MN, and the cost was $386.25 through Professional Liability Consultants, which was a recommendation from CS2.

Choose an RIA Custodian:  I decided to go with  Scottrade because they have low fees for my clients and no minimum assets under management required for advisors.  (FYI: Schwab and Fidelity have $10M AUM minimums).

Update Your Info:  Update all your information on the  CFP Board website ,  FPA ,  NAPFA , and any other organizations that you’re a part of.  I’m a part of FPA which costs $399 per year.  In addition, I pay $325 per year for my CFP® dues.

Buy E&O Insurance:  I decided to go with  Calsurance because it was affordable and I could purchase it online.  The policy was $1,250 plus taxes for a total of $1,323.25.  It provides $1M in coverage and has a $5,000 deductible.  You can often get a discount through your custodian or the associations you’re a part of.

Decide on Invoicing and Accounting Software:  I’m currently using  WaveApps  because it’s free, but I might switch to  Quickbooks Online  because the starter package is only $12.95 a month and it would be easier to outsource at a later date.  I also allow my clients to pay through  PayPal and I can send invoices through PayPal, which I love!  PayPal also allows you to set up buttons for recurring payments.  Just call their customer service number if you need help setting this up.  It was easy to do and you can even email your client a link to set up the recurring payment if you don’t want to have it directly on your website.

Write It Down: Develop processes and procedures so that as you grow, you are also able to scale your practice.  (I’m working on getting better at this).  In addition, this will make your life much easier once you decide to hire an intern, Virtual Assistant, or Para-Planner to join your firm.  Start documenting and tracking things in your CRM so that others will understand your notes.  I also recommend having a standard “notes template” so that you document notes in the same order for each client.

Technology (Part 1): RIA Hardware & Tools

Tools of the Trade: I bought a new MacBook Pro.  It was expensive, but I love it.  I paid $1,708.97 including Apple Care.  I am entirely Mac-based, and it works great for me.  You might not need to buy a new computer but I had to return my work computer, so this was one of my biggest expenses.  I also bought a DoxieGo , which is a portable scanner with wi-fi and a case so that it fits easily in my laptop bag.  This combo cost $217.86 from Amazon.com.

Cell Phone: I bought a new iPhone 5 for $221.81 and traded in my iPhone 4.  I also pay about $125 a month for cell phone service and a data plan.  You can get a discount on your cell phone plan through FPA.  All of my prospect calls are via phone rather than Skype.

Back Up Your Computer: I chose Crash Plan Pro for Business so that my computer is backed up in the cloud daily for $9.99 a month.

Protect Your Network: I work from a lot of coffee shops, which is why I set up Private Wi-Fi which encrypts my data on open wi-fi networks for $9.95 a month.

Buy Your Business Domain Name: I bought my domain name from GoDaddy.com for $17.51 for three years.  I also decided to keep it private so I don’t get a ton of spam and that’s an additional $9.99 a year.  Total cost for 3 years: $47.48.  You also need to get web hosting.  One year of web hosting was included with my web designer so I didn’t have to purchase it initially but I am now switching to WpEngine , which is supposed to provide excellent security in addition to being able to deal with large spikes in traffic and costs only $29 a month.

Technology (Part 2): RIA Software Essentials

Free Stuff:  I use  Skype  to have meetings with my clients in other states.  I use  Dropbox to create a shared folder with a client, and then the client can upload his or her statements.  I then upload the statements to my CRM system.  I have  Google Alerts  set up for my name and my business name.  Some planners also do this for their clients’ names as well.  I also use  LastPass  for my password encryption.

Sign Up for PreciseFP: This is an online data gathering tool that allows me to send my clients a link to a secure questionnaire.  This costs $239.40 per year.

Financial Planning Software: I decided to forgo financial planning software until something better comes on the market for Gen Y.  Right now, planning software is either cashflow-based or goal-based, but they are still geared towards Baby Boomers and beyond.  I did have a friend build me a one-page retirement projection in Excel (I paid him $75).  I write my 5-page financial plans in plain English in Pages and then print them to Adobe.  I’ve found that nobody wants 50 pages of charts and graphs that they don’t understand.

Choose a CRM: I chose  Less Annoying CRM because it is exactly what it sounds like.  After years of using Junxure and other robust systems that had too many fields, I really like the simplicity of LACRM with the attention to functional design.  It’s like the Mac of CRMs and since I’m a Mac girl, I heart it. It allows me to easily store client emails as well for compliance purposes.  Did I mention it’s $10 a month and comes with amazing customer support?  Shout out to Michael!  ( [email protected] ).  Tell him I sent you!

Online Scheduling System:  I’m in a free trial with  TimeTrade to see if I want to use this for prospects and client meetings.  It’s $49.99 per year.  I like that I can send an email from the system with times that I’m available or add it to my website and have people click on a time to schedule a prospect call.

Electronic Signature: I’m still debating which eSignature I want to use, so I have done a few free trials.  A few popular ones are EchoSign  for $14.95 a month and  Docusign  for $25 a month (or $180 if you pay yearly).

Google Apps and Google Vault: Alan Moore, CFP®  already wrote a great  guest post about these items, and together they cost $10 a month.  Need I say more?  I also added  Boomerang for Gmail, which is an additional $4.99 a month or $49.99 for the year.  In my opinion, this is the only way to get your email inbox to zero without forgetting to follow up with items later.

Build a Kick-Ass Website in WordPress:   Have you looked at a financial planning website lately?  Did it suck?  Seriously, if you have a halfway decent website, you are setting yourself apart from most financial planners.  Start working on your website during the time you are waiting for approval from your state registration.  Pay a bad-ass web designer to do your website for you.  Don’t be one of those people who does their own to save money unless you have been running your own successful blog on the side for the past few years and your undergrad degree was in graphic design and computer engineering.  This is the first thing that people see to decide if they want to work with you.  This is one area where most financial planners do not spend enough time and money investing their resources.

Marketing & Branding As An Independent RIA

Ditch Your Bland Brand:  Consider hiring a web designer who is also a graphic designer and can do your logo and branding for you.  I am absolutely thrilled with how my website turned out and I have the lovely, Hannah Loaring from Further Bound , to thank.  She’s lovely to work with and affordable.  I call her my “website fairy.”  She will probably be twice as expensive a year from now, and you should still use her because she’s that good.  Her current rates are $1,200 for a basic blog to $2,200 for an amazing package.  Contact her today ( [email protected] ) because she’s booked out for the next few months.  She also does branding, business cards, Twitter backgrounds, Facebook covers, PDF Design, and newsletter design for email marketing.  You can use her for all of these things and she will make your branding seamless.  You want a clear flow from social media, to print, to your biz cards.   She prepared a business card template for me and recommended that I order them from Moo.com .  I paid $69.99 for 200 cards plus shipping and handling.

I highly recommend that you spend a bit of time developing a brand and marketing strategy:

  • Have a professional design your logo.
  • Figure out a tagline that speaks to your target market.
  • Decide your pricing and fee structure.
  • If you are not an excellent writer, consider hiring a professional copywriter.
  • Develop a social media strategy.  Figure out which social media tools you are going to use, then pay a company to archive your social media.  Arkovi and Archive Social are two to check out.  I chose to go with Arkovi because it was less expensive ($39 versus $49), and it didn’t limit the number of social media accounts I could have, and I can archive my blog posts.  I also like that you can schedule content.
  • Blog at least once a week and send out a newsletter.  (Hint: while your website is being built, have your web designer set up a landing page with an email sign up for your newsletter.  This way you can start building a list before you even have a website).  I blog every Wednesday, and the Gen Y Planning Newsletter goes out every other Friday. I am using the free version of MailChimp for my newsletter.
  • Sign up for Help a Reporter Out ( HARO ) and start answering reporters' requests.  I try to answer at least 3 HARO requests each week so that I can get my name out there.  This is FREE publicity.  You are your best agent.
  • Write guest posts for other sites.  I try to do this twice a month.
  • Consider having an intro video on your website or try video blogging. Videos are an excellent way to communicate with potential clients. (I’m not currently using video, but I should be. I would like to create a marketing video through Show & Tell Stories in 2014).

Time for New Photos: You need new professional headshots, preferably from someone who has experience taking actors' headshots and doesn’t just work at the mall.  Danielle Barnum took mine, and she shoots in Minnesota, Seattle, L.A., and New York.  So if you’re in one of those places, I highly recommend her.  Her business is called DB Inspired Arts .  Her rates start at $275, which is an absolute steal!  Feel free to email her directly: [email protected] .

Other Tips For Success When Starting Your RIA

Focus on Helping People: Help your friends and they’ll become your clients.  Help your clients and they’ll send you their friends and family.  Help reporters and they’ll quote you in the press.  Here’s another one: help other financial planners.  We’re not reinventing the wheel here.  The only reason I was able to accomplish as much as I did as quickly as I did was because of the help of other people who were already running their own successful practices that helped me out.  Individual planners and mentors passed along the following information to me: the compliance company that they used, the CRM system they recommended, which E&O insurance to buy, and now I’m passing along all of these things to you J.  Here’s a secret: some of them have even passed along prospects to me.  In addition, I refer my prospects to other planners when they don’t fit my target market, so remember to be nice to each other and help each other when we can.  Like Zig Ziglar said, “You can get anything you want in this life if you spend enough time helping other people get what they want.”

Keep Learning: Go to conferences outside of the industry.  You can learn a lot from other people that are outside of financial planning.  Check out some conferences that have to do with something you’re interested in and you will meet great people and maybe even gain a few clients.  I went to Portland to attend the World Domination Summit this summer (not as scary as it sounds).  The whole theme of the conference was, “how do we live a remarkable life in a conventional world?”  I ended up landing two clients who were other attendees, plus I had a fantastic time!

Give Back: Help young planners gain entry into this industry.  We need more great people to carry the torch.  There are many ways to help out whether it’s mentoring another planner, volunteering through FPA, or taking a board position.  Also, consider working with a partner charity so that as your business grows, so too does the charity.  I’m incredibly passionate about financial education and I decided to partner with BestPrep , which is a local organization that I’ve been volunteering with for the past few years.  Their mission is, “to prepare Minnesota students with business, career, and financial literacy skills through experiences that inspire success in work and life.” For each new client I bring on in 2013, I’m donating $50 to BestPrep .  Now that you’re an entrepreneur and can create your own schedule, I encourage you to make time to volunteer.  It helps keep us grounded and realize that even though we help people with their money every day, there are more important things than money.

The Abundance Mentality: I ascribe to the abundance mentality, rather than the scarcity mentality because I think that there are millions of people that would like to work with a financial planner and I will only be able to work with 100-150 of them.  I’m really not worried about competition.  My closest friends in financial planning have businesses that are very similar to mine.  Therefore, I need your help.  Now you have the tools needed to launch your own RIA, and you know the exact costs associated with doing it.  What’s stopping you from launching your own firm?  Are you terrified of entrepreneurship?  If so, maybe you need to read my post on Why Entrepreneurship is the New Job Security for Gen Y .  If I can do this, you can too!  Envision your ideal life, find your special sauce, and go out there and launch your new biz!  We need your unique skills in this world.  Are you up for the challenge?

(Michael's Note: If you enjoyed this guest post on becoming an RIA, you might want to check out Financial Advisor's Guide To Establishing A Next Generation Financial Planning Firm as well!)

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How to Start a Financial Consulting Firm

A financial consulting firm helps individuals and small businesses manage and grow their wealth. You are more likely to service individuals than large corporations, but your small business should be prepared to do both. Clients will look to you for detailed financial information, informed financial forecasting, and ways to invest to achieve their short-term and long-term goals.

You may also be interested in additional online business ideas .

Learn how to start your own Financial Consulting Firm and whether it is the right fit for you.

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Start a financial consulting firm by following these 10 steps:

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  • Get the Necessary Permits & Licenses for your Financial Consulting Firm
  • Get Financial Consulting Firm Insurance
  • Define your Financial Consulting Firm Brand
  • Create your Financial Consulting Firm Website
  • Set up your Business Phone System

We have put together this simple guide to starting your financial consulting firm. These steps will ensure that your new business is well planned out, registered properly and legally compliant.

Exploring your options? Check out other small business ideas .

STEP 1: Plan your business

A clear plan is essential for success as an entrepreneur. It will help you map out the specifics of your business and discover some unknowns. A few important topics to consider are:

What will you name your business?

  • What are the startup and ongoing costs?
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How much can you charge customers?

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Choosing the right name is important and challenging. If you don’t already have a name in mind, visit our How to Name a Business guide or get help brainstorming a name with our Financial Consulting Firm Name Generator

If you operate a sole proprietorship , you might want to operate under a business name other than your own name. Visit our DBA guide to learn more.

When registering a business name , we recommend researching your business name by checking:

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It's very important to secure your domain name before someone else does.

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Business name generator, what are the costs involved in opening a financial consulting firm.

The costs of opening this business are somewhat deceptive. Once you have the appropriate license, there is virtually no cost to opening this business: many financial planners start out working from home and meet clients at their place of work, their homes, or other venues. On the other hand, a four-year degree is mandatory for most certifications, and that has an average cost of $40,000 for the degree alone (for in-state, public colleges). If your college coursework was not already Board-certified, then you may spend between $1,000 and $4,000 to take additional classes for a certification like the CFP, and an additional $595 to take the exam. Because of its importance, many people opt to take review classes or buy review materials, and this cost can range from $400 to $1400. After passing, you need to work full-time in a relevant field before you can meet the experience requirement of the CFP. Thus, while the costs of opening the actual consulting business is almost nothing, the education and certification required can easily be $90,000 or more, and there is the significant time investment working for someone else before you can work for yourself.

What are the ongoing expenses for a financial consulting firm?

If you work from home, then your ongoing expenses for this position are virtually non-existent. Most of your actual financial planning is conducted via the computer that you already have, and you do not need to pay for expensive overhead or utilities. Your most regular fees will be the gasoline cost of meeting with clients and the cost of meetings such as business lunches, both of which are potential tax write-offs for you.

Who is the target market?

Younger clients, such as those who are completing college degrees and/or coming into their inheritances, may be curious about financial planning for the first time. They are more likely to be open-minded about the advice you give and, if they like the results you deliver, may actually become lifelong clients.

How does a financial consulting firm make money?

Two ways that financial consultants make money are to take a percentage of the sales charge (basically, a commission) made by the client when they invest and to receive a “trail” from some of the operating expenses of an investment such as a mutual fund. Other consultants are paid by certain fees they charge clients, and some consultants become fee-only advisors.

How much you charge clients depends on your payment model. If you are being paid via fees, then it is reasonable to charge them between .75% to 2% of the collective assets that you manage. Commission costs have a greater range, ranging from 1% to 8.5%. With both fees and commissions, you typically charge lower percentages for higher amounts on transactions. It should be noted that many clients, firms, and consultants have become wary of commission-based models, as there is always the possibility of an advisor encouraging and investment that is good in the short term for the advisor but not in the long term for the client.

How much profit can a financial consulting firm make?

The Bureau of Labor Statistics estimates that the median pay of this job is over $90,000 a year. Your actual profit may be higher or lower based on your payment model and number of clients.

How can you make your business more profitable?

Make sure that you are reading relevant trade publications and other sources that let you keep your finger on the pulse of industry changes. Make sure that you show genuine interest in the lives of your clients whenever you speak—this makes their time with you feel more like a valued relationship. Finally, always volunteer with professional organizations when you have the time—it's great networking, great PR, and a great learning opportunity.

Want a more guided approach? Access TRUiC's free Small Business Startup Guide - a step-by-step course for turning your business idea into reality. Get started today!

STEP 2: Form a legal entity

The most common business structure types are the sole proprietorship , partnership , limited liability company (LLC) , and corporation .

Establishing a legal business entity such as an LLC or corporation protects you from being held personally liable if your financial consulting firm is sued.

Form Your LLC

Read our Guide to Form Your Own LLC

Have a Professional Service Form your LLC for You

Two such reliable services:

You can form an LLC yourself and pay only the minimal state LLC costs or hire one of the Best LLC Services for a small, additional fee.

Recommended: You will need to elect a registered agent for your LLC. LLC formation packages usually include a free year of registered agent services . You can choose to hire a registered agent or act as your own.

STEP 3: Register for taxes

You will need to register for a variety of state and federal taxes before you can open for business.

In order to register for taxes you will need to apply for an EIN. It's really easy and free!

You can acquire your EIN through the IRS website . If you would like to learn more about EINs, read our article, What is an EIN?

There are specific state taxes that might apply to your business. Learn more about state sales tax and franchise taxes in our state sales tax guides.

STEP 4: Open a business bank account & credit card

Using dedicated business banking and credit accounts is essential for personal asset protection.

When your personal and business accounts are mixed, your personal assets (your home, car, and other valuables) are at risk in the event your business is sued. In business law, this is referred to as piercing your corporate veil .

Open a business bank account

Besides being a requirement when applying for business loans, opening a business bank account:

  • Separates your personal assets from your company's assets, which is necessary for personal asset protection.
  • Makes accounting and tax filing easier.

Recommended: Read our Best Banks for Small Business review to find the best national bank or credit union.

Get a business credit card

Getting a business credit card helps you:

  • Separate personal and business expenses by putting your business' expenses all in one place.
  • Build your company's credit history , which can be useful to raise money later on.

Recommended: Apply for an easy approval business credit card from BILL and build your business credit quickly.

STEP 5: Set up business accounting

Recording your various expenses and sources of income is critical to understanding the financial performance of your business. Keeping accurate and detailed accounts also greatly simplifies your annual tax filing.

Make LLC accounting easy with our LLC Expenses Cheat Sheet.

STEP 6: Obtain necessary permits and licenses

Failure to acquire necessary permits and licenses can result in hefty fines, or even cause your business to be shut down.

State & Local Business Licensing Requirements

Certain state permits and licenses may be needed to operate a financial consulting firm. Learn more about licensing requirements in your state by visiting SBA’s reference to state licenses and permits .

Most businesses are required to collect sales tax on the goods or services they provide. To learn more about how sales tax will affect your business, read our article, Sales Tax for Small Businesses .

Services Contract

Financial consulting firms should require clients to sign a services agreement before starting a new project.  This agreement should clarify client expectations and minimize risk of legal disputes by setting out payment terms and conditions, service level expectations, and intellectual property ownership. Here is an example of one such services agreement: (try to make this industry/business specific)

Certificate of Occupancy

A financial consulting firm can be run out of an office. Businesses operating out of a physical location typically require a Certificate of Occupancy (CO).  A CO confirms that all building codes, zoning laws and government regulations have been met.

  • If you plan to lease a location :
  • It is generally the landlord’s responsibility to obtain a CO.
  • Before leasing, confirm that your landlord has or can obtain a valid CO that is applicable to a financial consulting firm.
  • After a major renovation, a new CO often needs to be issued. If your place of business will be renovated before opening, it is recommended to include language in your lease agreement stating that lease payments will not commence until a valid CO is issued.  
  • If you plan to purchase or build a location :
  • You will be responsible for obtaining a valid CO from a local government authority.
  • Review all building codes and zoning requirements for your business’ location to ensure your financial consulting firm will be in compliance and able to obtain a CO.

STEP 7: Get business insurance

Just as with licenses and permits, your business needs insurance in order to operate safely and lawfully. Business Insurance protects your company’s financial wellbeing in the event of a covered loss.

There are several types of insurance policies created for different types of businesses with different risks. If you’re unsure of the types of risks that your business may face, begin with General Liability Insurance . This is the most common coverage that small businesses need, so it’s a great place to start for your business.

Another notable insurance policy that many businesses need is Workers’ Compensation Insurance . If your business will have employees, it’s a good chance that your state will require you to carry Workers' Compensation Coverage.

FInd out what types of insurance your Financial Consulting Firm needs and how much it will cost you by reading our guide Business Insurance for Financial Consulting Firm.

STEP 8: Define your brand

Your brand is what your company stands for, as well as how your business is perceived by the public. A strong brand will help your business stand out from competitors.

If you aren't feeling confident about designing your small business logo, then check out our Design Guides for Beginners , we'll give you helpful tips and advice for creating the best unique logo for your business.

Recommended : Get a logo using Truic's free logo Generator no email or sign up required, or use a Premium Logo Maker .

If you already have a logo, you can also add it to a QR code with our Free QR Code Generator . Choose from 13 QR code types to create a code for your business cards and publications, or to help spread awareness for your new website.

How to promote & market a financial consulting firm

This is a job where you are mostly rooted in your own local community, so it is wise to advertise via certain traditional means such as newspapers and radio, especially when you are first getting started. Increasingly, though, clients are finding their advisors online, which makes it important that you have clean and professional-looking accounts on things like Facebook, Twitter, and LinkedIn. You should also have a professional-looking website. Once you get comfortable doing so, online venues are a great way to showcase your personality (such as a quirky sense of humor) which can help you stand out from the pack.

How to keep customers coming back

Now that you know how to meet clients, how do you get their business and keep them? One way is to speak their language. Most clients don't want you to throw tons of jargon and special terms at them. They want to know key terms and facts, and they want them explained in an accessible way. Don't forget to leverage networking—communities are built on connections, and the simple fact that so-and-so is your colleague or close friend may make a client feel instantly more connected with you. Retaining clients after this is arguably the easy part: this is a results-oriented business, so as long as you are helping their wealth grow, they will continue to use your services.

STEP 9: Create your business website

After defining your brand and creating your logo the next step is to create a website for your business .

While creating a website is an essential step, some may fear that it’s out of their reach because they don’t have any website-building experience. While this may have been a reasonable fear back in 2015, web technology has seen huge advancements in the past few years that makes the lives of small business owners much simpler.

Here are the main reasons why you shouldn’t delay building your website:

  • All legitimate businesses have websites - full stop. The size or industry of your business does not matter when it comes to getting your business online.
  • Social media accounts like Facebook pages or LinkedIn business profiles are not a replacement for a business website that you own.
  • Website builder tools like the GoDaddy Website Builder have made creating a basic website extremely simple. You don’t need to hire a web developer or designer to create a website that you can be proud of.

Recommended : Get started today using our recommended website builder or check out our review of the Best Website Builders .

Other popular website builders are: WordPress , WIX , Weebly , Squarespace , and Shopify .

STEP 10: Set up your business phone system

Getting a phone set up for your business is one of the best ways to help keep your personal life and business life separate and private. That’s not the only benefit; it also helps you make your business more automated, gives your business legitimacy, and makes it easier for potential customers to find and contact you.

There are many services available to entrepreneurs who want to set up a business phone system. We’ve reviewed the top companies and rated them based on price, features, and ease of use. Check out our review of the Best Business Phone Systems 2023 to find the best phone service for your small business.

Recommended Business Phone Service: Phone.com

Phone.com is our top choice for small business phone numbers because of all the features it offers for small businesses and it's fair pricing.

TRUiC's Startup Podcast

Welcome to the Startup Savant podcast , where we interview real startup founders at every stage of the entrepreneurial journey, from launch to scale.

Is this Business Right For You?

This business is best for someone who understands finance inside and out. Prior experience working as a consultant for another firm is ideal, but any experience in investment and wealth management is helpful. A formal education in subjects such as finance can give you a solid knowledge base to work from, and certifications in particular kinds of financial advising will help you further your skills.

Want to know if you are cut out to be an entrepreneur?

Take our Entrepreneurship Quiz to find out!

Entrepreneurship Quiz

What happens during a typical day at a financial consulting firm?

There are several daily activities in the life of a financial consultant. You may spend time prospecting for new clients, helping your existing client base (which ranges from reviewing their portfolios to meeting with them in person), filing paperwork (such as compliance reports and the records of your clients) and using various software and other methods to conduct financial planning.

What are some skills and experiences that will help you build a successful financial consulting firm?

For better or for worse, most of the skills you need will come from your formal education. Becoming a financial consultant typically means getting a particular certification, such as the CFP (Certified Financial Planner). Getting something like a CFP requires a four-year degree followed by additional certification training and the successful completion of a Board Exam. After you have completed this rigorous training, however, you will have all of the necessary preparation and skills to get started.

What is the growth potential for a financial consulting firm?

The growth potential for this business is immense. The Bureau of Labor Statistics projects this field to grow by thirty percent between 2014 and 2024, aided in part by rising life expectancy and the increased need for financial planning.

Not sure if a financial consulting firm is right for you? Try our free Business Idea Generator and find your perfect idea.

TRUiC's YouTube Channel

For fun informative videos about starting a business visit the TRUiC YouTube Channel or subscribe to view later.

Take the Next Step

Find a business mentor.

One of the greatest resources an entrepreneur can have is quality mentorship. As you start planning your business, connect with a free business resource near you to get the help you need.

Having a support network in place to turn to during tough times is a major factor of success for new business owners.

Learn from other business owners

Want to learn more about starting a business from entrepreneurs themselves? Visit Startup Savant’s startup founder series to gain entrepreneurial insights, lessons, and advice from founders themselves.

Resources to Help Women in Business

There are many resources out there specifically for women entrepreneurs. We’ve gathered necessary and useful information to help you succeed both professionally and personally:

If you’re a woman looking for some guidance in entrepreneurship, check out this great new series Women in Business created by the women of our partner Startup Savant.

What are some insider tips for jump starting a financial consulting firm?

Two related tips are to figure out your own niche and to figure out your best audience. For instance, you may have more success focusing only on portfolios, or only on wealth advising. This allows you to become a true authority in one area rather than trying to do it all. Similarly, you need to identify a target audience: someone focusing primarily on retirement will primarily serve older clients, and it's important to understand their concerns and values. Finally, don't neglect traditional networking: attend as many trade shows and other professional events as you can.

How and when to build a team

Most consultants prefer to work on their own because it significantly reduces the overhead, allowing them to functionally work from home and on the road as opposed to leasing a separate office. If, however, you've successfully built your brand and have more prospective clients than you can handle, it may be time to take on a small team and to eventually build a firm. However, both sharing clients and paying for this lease and utilities will cut into your profits, so it's important to make sure that you will profit from this move.

Useful Links

Industry opportunities.

  • International Association of Registered Financial Consultants
  • Learn about more Online Business Ideas
  • The National Association Of Personal Financial Advisors
  • Financial Industry Regulatory Authority
  • Discover more Consulting based Business Ideas

Real World Examples

  • Fineberg Wealth Management
  • Independent Financial Planner

Further Reading

  • What Do Financial Advisors Do?
  • Financial Consultant Job Description
  • Financial Consultant Certification and Degree Programs Information
  • 4 Things Small Business Owners Want from a Financial Advisor
  • How To Become a Certified Financial Planner (CFP)

Have a Question? Leave a Comment!

opening your own financial planning business

Financial Planning Career Paths: Joining a Firm or Starting Your Own

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When you picture the next months, years, or decades in your financial planning career, what do you think about? Are you running your own firm? Or are you working your way up the ladder at a big, established company ? Both are equally viable financial planning career paths, but they each offer unique pros and cons.

How do you know which one is right for you? It all depends on what you want your work and personal life to look like. Let’s look at some of the details, advantages, and disadvantages of each option. You can use this information to help you decide which direction you want to go in your financial planning career.

Financial Planning Career Option #1: Joining a Firm

A “conventional” career approach is to join an existing financial planning firm and work your way up the ladder. Of course, you don’t have to stick with the same firm throughout your career — you may end up with several different employers over the course of your career. 

Pros of Joining a Firm

There are several potential advantages of working in an existing financial planning firm:

  • Working with a team of colleagues
  • Access to mentoring opportunities
  • An established career growth path
  • Consistent income and access to a full client list 
  • Employee benefits like 401(k), health insurance, PTO, etc.

opening your own financial planning business

Working in an established firm can give you a stable income and a clear path forward to grow your career. You might also have access to on-the-job training or mentorship and traditional employee benefits like paid vacation and retirement programs.

Cons of Joining a Firm

However, working in an established company isn’t the right call for everyone. There are some possible disadvantages:

  • Fewer opportunities to choose your own clients
  • May not be able to use a unique approach or planning model
  • Competing with coworkers for promotions and opportunities
  • Less control of your work schedule

Consider these cons carefully when deciding whether to continue working in an existing firm. If this list includes deal-breakers for you, it might be better to consider opening your own practice.

Financial Planning Career Option #2: Starting Your Own Firm

If you’re an independent person who likes a lot of career freedom, you might consider opening your own financial planning firm. This option can be challenging, but it can also be very rewarding for the right person.

Pros of Starting a Firm

opening your own financial planning business

Here are some of the advantages you might experience if you choose to strike out on your own:

  • Complete control over the financial planning processes and models you use
  • The chance to choose your clients and coworkers
  • More flexibility with schedule and work location
  • The chance to create positions/opportunities for new financial planners

Running your own firm gives you much more freedom and flexibility than working for someone else. However, it can also be more challenging.

Cons of Starting a Firm

Any entrepreneur will tell you that “being your own boss” isn’t without its difficulties:

  • Unstable income, especially when starting out
  • Difficulties building a reputation and attracting clients
  • Final responsibility for every aspect of your business
  • Financial costs of starting your own business
  • Taking time off requires more preparation

If you know for certain that you want to have your own firm, it can be easier to overcome these challenges. However, they can be overwhelming if you’re starting your own practice simply because you feel like you “should.”

Mapping Out Your Financial Planning Career

Some financial planners know from the very beginning of their careers whether they want to work in an established firm or start their own. But others need more time to figure out what’s right for them.

opening your own financial planning business

And that’s OK. You don’t have to know right away — and you can change your mind if you realize that the path you originally chose isn’t the right one. 

The most important thing is staying true to your values and priorities. What matters most to you when it comes to your work/life balance ? How do you want to show up for your clients — and how much flexibility do you want to have in choosing who you work with?

Neither choice makes you a “better” financial planner. What makes you a great financial planner is making the career decisions that allow you to stay true to your personal priorities and your professional values.

Get Career Advice and Support

You might not know yet how you want your financial planning career to look. In that case, it’s important to do some research and find out as much as you can about the options that you have. The more you know, the easier it can be to figure out which path is right for you.

One of the best ways to learn more about all your financial planning career options is to connect with others in this profession. A subscription to Amplified Planning allows you to network with other planners in various niches and stages of their careers. 

opening your own financial planning business

You’ll get access to an online forum, educational resources, and hands-on training exercises to build your skills. Learn more about Amplified Planning subscriptions and join today !

If the financial arguments are constant or start veering into conflicts about other issues, you may want to encourage them to see a counselor — but use this approach cautiously. Many people are sensitive about their personal relationships and might not appreciate that kind of advice coming from their financial planner.

Want to see real-life examples of handling conflict in a client meeting? Subscribe to Amplified Planning CORE. You’ll get to watch recordings of client meetings and see how an experienced financial planner handles tough conversations and emotional discussions about money. Find out more and join today !

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Sample Coffee Shop Business Plan

opening your own financial planning business

Writing a business plan is a crucial step in starting a coffee shop. Not only does it provide structure and guidance for the future, but it also helps to create funding opportunities and attract potential investors. For aspiring coffee shop business owners, having access to a sample coffee shop business plan can be especially helpful in providing direction and gaining insight into how to draft their own coffee shop business plan.

Download our Ultimate Coffee Shop Business Plan Template

Having a thorough business plan in place is critical for any successful coffee shop venture. It will serve as the foundation for your operations, setting out the goals and objectives that will help guide your decisions and actions. A well-written business plan can give you clarity on realistic financial projections and help you secure financing from lenders or investors. A coffee shop business plan example can be a great resource to draw upon when creating your own plan, making sure that all the key components are included in your document.

The coffee shop business plan sample below will give you an idea of what one should look like. It is not as comprehensive and successful in raising capital for your coffee shop as Growthink’s Ultimate Coffee Shop Business Plan Template , but it can help you write a coffee shop business plan of your own.

Example – BeanBrews Corner

Table of contents, executive summary, company overview, industry analysis, customer analysis, competitive analysis, marketing plan, operations plan, management team, financial plan.

At BeanBrews Corner, we’re proud to introduce our community-focused coffee shop located in the heart of the city’s bustling downtown area. Our mission is to serve high-quality, artisanal coffee and a selection of gourmet pastries and sandwiches, catering to both the early morning rush and the leisurely afternoon crowd. Our establishment is not just about serving great coffee; it’s a place where patrons can feel at home, whether they’re grabbing a quick takeaway or settling in for a few hours of work or relaxation. With our prime location and commitment to excellence in every cup, BeanBrews Corner aims to become a beloved staple in our local community, offering a warm, welcoming atmosphere that coffee lovers will cherish.

Our journey at BeanBrews Corner has been marked by several key success factors and accomplishments. Our focus on high-quality ingredients, coupled with our staff’s expertise in coffee brewing, has allowed us to offer a distinctive selection of coffee blends and drinks that stand out in the market. Our location has also played a crucial role in our success, providing us with high foot traffic and visibility. To date, we’ve successfully fostered a loyal customer base through our exceptional service and inviting atmosphere. Additionally, our engagement with the local community through events and partnerships has strengthened our brand presence and contributed significantly to our growth.

The coffee shop industry is experiencing a period of robust growth, driven by increasing consumer demand for specialty coffee and a rising culture of coffee appreciation. This industry is characterized by its high competitiveness and the importance of location, product quality, and brand differentiation. There is a significant trend toward sustainability and ethical sourcing of coffee beans, as well as an increasing preference for unique and customizable coffee experiences. Given these trends, BeanBrews Corner is positioned to thrive by focusing on quality, sustainability, and creating a unique customer experience that resonates with the values and preferences of today’s coffee enthusiasts.

Our target customers range from busy professionals seeking a quick coffee fix to students and remote workers looking for a cozy place to spend several hours. We also cater to coffee aficionados who appreciate the art of coffee making and seek unique blends and brewing techniques. Recognizing the diverse needs of our clientele, we’ve designed our product offerings and store layout to create a welcoming environment for everyone. Our approach to customer service is tailored to make every visit memorable, ensuring that BeanBrews Corner becomes a preferred destination for a wide range of coffee lovers in our community.

Java Joe’s: A chain with a wide selection of coffee and quick service. The Grind: Known for its cozy atmosphere and strong community engagement. Café Artisan: Focuses on high-end, specialty coffee offerings.

Our competitive advantages lie in our commitment to quality, our prime location, and our strong community ties. Unlike our competitors, we balance the convenience of quick service with the experience of enjoying artisanal coffee in a welcoming environment, making us a go-to spot for a broad customer base.

Our product line includes a wide variety of artisanal coffees, gourmet pastries, and sandwiches, with a focus on quality and uniqueness. Our pricing strategy is competitive, aimed at offering value for premium products. To promote BeanBrews Corner, we leverage social media, local events, and word-of-mouth, emphasizing our community involvement and unique offerings. We plan to introduce loyalty programs and seasonal promotions to encourage repeat business and attract new customers.

At BeanBrews Corner, our daily operations are centered around ensuring excellence in every aspect of our service. This includes meticulous inventory management, strict quality control, outstanding customer service, maintaining cleanliness and hygiene, efficient order fulfillment, effective financial management, strategic staff management, proactive marketing and promotion efforts, attentive feedback collection, and responsible energy and resource management. Our operational milestones include achieving consistent customer satisfaction, expanding our product offerings, and implementing sustainable practices across all operations.

Our management team at BeanBrews Corner brings together individuals with a passion for coffee and a wealth of experience in the hospitality industry. Led by our founder, a seasoned barista and entrepreneur, our team includes experts in operations, marketing, and customer service. Together, we share a commitment to creating an unrivaled coffee experience for our customers, fostering a positive work environment for our staff, and contributing to our community’s vibrancy. Our collective expertise and dedication are the driving forces behind our success and growth.

Welcome to BeanBrews Corner, a fresh and vibrant coffee shop nestled in the heart of Charlotte, NC. As a local coffee shop, we pride ourselves on filling a much-needed gap in the area—a high-quality, local coffee experience. Our passion for coffee, combined with a commitment to our community, drives us to serve not just a drink, but an experience.

At BeanBrews Corner, our menu boasts a wide range of offerings designed to cater to diverse tastes and preferences. Our coffee beverages stand out for their quality and variety, ensuring every coffee lover finds their perfect cup with us. For those who prefer a different kind of warm comfort, our tea selection offers both classic favorites and unique blends. But we don’t stop at drinks; our pastries and bakery items are the perfect companions to our beverages, made fresh daily. For those looking for something more substantial, we offer a selection of sandwiches and snacks, ideal for a quick lunch or a leisurely afternoon treat. And for those special occasions or simply to indulge, our specialty drinks provide a unique BeanBrews Corner experience.

Our location in Charlotte, NC, is no accident. We chose this vibrant city to be close to our customers, understanding their needs and being part of the community we serve. It’s not just about serving coffee; it’s about creating a space where people can gather, share, and connect.

BeanBrews Corner’s potential for success is rooted deeply in several key factors. Our founder brings invaluable experience, having previously run a successful coffee shop. This experience guides our vision and operations, ensuring we understand the intricacies of creating a beloved coffee destination. Furthermore, our commitment to quality sets us apart; we confidently claim to make better coffee than our competition, supported by our extensive variety of coffee and tea options. This combination of experience, quality, and variety positions us uniquely in the market, ready to become a favorite among the coffee-loving community of Charlotte.

Since our founding on January 6, 2024, we’ve made significant strides as a Limited Liability Company. Our journey began with the essentials: developing a company name that resonates with our vision, designing a logo that reflects our brand, and securing a great location that meets the needs of our customers and our business. These accomplishments are just the beginning of our story—one that we are excited to continue writing with our community in Charlotte.

The Coffee Shop industry in the United States is currently a thriving market, with an estimated size of over $45 billion. This figure reflects the growing popularity of coffee culture and the increasing demand for specialty coffee beverages among consumers. With a steady increase in coffee consumption over the years, the industry is expected to continue its growth trend in the coming years.

One of the key trends in the Coffee Shop industry is the shift towards customization and personalization. Consumers are looking for unique and personalized experiences when it comes to their coffee choices, driving the demand for specialty coffee shops like BeanBrews Corner. With a focus on providing high-quality, customizable coffee options, BeanBrews Corner is well-positioned to capitalize on this trend and attract a loyal customer base in Charlotte, NC.

Furthermore, the increasing preference for convenient, on-the-go coffee options has also been a driving force in the industry. With more consumers opting for quick and efficient coffee solutions, BeanBrews Corner can leverage this trend by offering fast service and grab-and-go options for busy customers. By aligning its offerings with the current market trends, BeanBrews Corner can establish itself as a competitive player in the Coffee Shop industry in Charlotte, NC.

Below is a description of our target customers and their core needs.

Target Customers

BeanBrews Corner will target a diverse range of customers, with local residents forming the core of its clientele. These individuals, seeking convenience along with quality coffee and a comfortable space to relax or work in, will find BeanBrews Corner especially appealing. The shop will tailor its offerings to meet the preferences and needs of this group, ensuring a steady flow of patrons from the surrounding neighborhoods.

Commuters and professionals working in or near Charlotte will also constitute a significant customer segment for BeanBrews Corner. The shop will provide a quick and efficient service for those in need of a morning coffee fix or a casual meeting spot. By offering Wi-Fi and work-friendly spaces, BeanBrews Corner will cater to the demands of this busy demographic, establishing itself as a go-to spot for both convenience and quality.

Moreover, BeanBrews Corner will also attract students and young adults looking for a cozy place to study, socialize, or enjoy artisan coffee. This segment values atmosphere as much as the quality of the coffee, and thus, the shop will create a welcoming and vibrant environment. Special promotions and events aimed at this demographic will further ensure their loyalty and frequent visits.

Customer Needs

BeanBrews Corner provides high-quality coffee that meets the expectations of residents with a discerning taste. Customers can savor an array of expertly crafted beverages, ensuring that their desire for premium coffee is fully satisfied. This commitment to excellence sets the foundation for a loyal customer base that values superior taste and quality.

In addition to serving top-tier coffee, BeanBrews Corner creates a welcoming atmosphere where individuals and groups can gather, work, or relax. The shop offers comfortable seating and complimentary Wi-Fi, catering to the needs of remote workers, students, and casual meet-ups. This environment encourages customers to spend time enjoying their coffee, fostering a sense of community and belonging.

BeanBrews Corner understands the importance of convenience for its customers. The coffee shop provides options for quick service, including online ordering and a mobile app for fast pick-ups. This ensures that even the busiest customers can enjoy their favorite beverages without significant delays, meeting the modern need for efficiency and time management.

BeanBrews Corner’s competitors include the following companies:

Summit Coffee – SouthPark:

Summit Coffee – SouthPark offers a wide variety of coffee blends and specialty drinks, as well as a selection of baked goods and light bites. Their price points cater to the mid-range consumer, providing a balance between affordability and premium quality. The revenue generated by Summit Coffee – SouthPark signifies a strong presence in the Charlotte market, with growth reflecting a loyal customer base and effective marketing strategies.

Summit Coffee – SouthPark operates primarily in the SouthPark area, serving a diverse clientele that includes young professionals, families, and students. Their key strength lies in their commitment to sustainability and community involvement, which resonates well with their customer segment. However, their location, while advantageous for reaching a specific demographic, may limit their geographical reach compared to competitors with multiple outlets.

Mugs Coffee:

Mugs Coffee is known for its cozy atmosphere and a broad selection of coffee and tea options, alongside a variety of sandwiches, pastries, and vegan options. They position themselves at a competitive price point, appealing to budget-conscious consumers without compromising on quality. The revenue of Mugs Coffee suggests a steady flow of regular customers and a positive reception in the local market.

With its location in a bustling neighborhood, Mugs Coffee attracts a mix of students, freelancers, and local residents looking for a comfortable place to work or relax. One of their key strengths is the welcoming environment and free Wi-Fi, making it a popular spot for work and study. A potential weakness for Mugs Coffee is the limited seating capacity, which can deter larger groups or peak-hour customers.

Thousand Hills Coffee:

Thousand Hills Coffee prides itself on its direct trade coffee, offering a premium range of single-origin coffees and artisanal blends. Their price points are on the higher end, targeting coffee connoisseurs and those willing to pay a premium for ethically sourced beans. The revenue trends for Thousand Hills Coffee indicate a niche but growing market share, benefiting from the increasing consumer interest in sustainable and ethical consumption.

Thousand Hills Coffee serves the greater Charlotte area, with a particular focus on the upscale market segment, including professionals and ethically conscious consumers. Their key strength is their commitment to quality and ethical sourcing, which distinguishes them from competitors. However, their premium pricing and niche focus could limit their appeal to a broader audience, potentially impacting their market reach.

Competitive Advantages

At BeanBrews Corner, our commitment to quality sets us apart in the vibrant Charlotte coffee scene. We pride ourselves on making better coffee than our competition, a claim rooted in our meticulous selection of beans and our perfected brewing techniques. Our baristas are artisans, trained in the craft of coffee making, ensuring each cup exceeds our customers’ expectations. This dedication to quality is not just a promise but a reality that can be tasted in every sip. Our customers come back not just for the coffee, but for the assurance of excellence that comes with every visit.

Furthermore, our variety is unmatched. We offer an extensive range of coffee and tea varieties, catering to the diverse preferences of our community. Whether a customer seeks the comfort of a classic espresso or the adventure of trying a new, exotic blend, we have something to satisfy every palate. This extensive selection allows us to provide a unique experience for each customer, making BeanBrews Corner a destination for both coffee aficionados and casual drinkers alike. Our variety extends beyond beverages; our cozy, welcoming space is designed to suit a range of needs, from a quiet spot for studying to a comfortable venue for social gatherings.

In addition to our superior coffee and wide variety, our location offers an added advantage. Situated in a convenient spot in Charlotte, we are easily accessible to both locals and visitors, making us a popular choice for anyone in search of quality coffee in a comfortable setting. This strategic location, combined with our commitment to excellence and variety, positions BeanBrews Corner as a leading coffee shop in the area, inviting more customers to discover the unique experience we offer.

Our marketing plan, included below, details our products/services, pricing and promotions plan.

Products and Services

At BeanBrews Corner, customers can indulge in a variety of meticulously crafted coffee beverages. The coffee menu encompasses everything from the classic espresso to more contemporary concoctions, ensuring there’s something for every coffee enthusiast. With an average price point of $3 for a basic coffee to around $5 for more intricate beverages, patrons can enjoy high-quality coffee without breaking the bank.

Aside from coffee, BeanBrews Corner offers a broad selection of teas to cater to non-coffee drinkers or those simply in the mood for something different. From traditional black and green teas to herbal and fruit-infused blends, the tea selection is designed to satisfy a wide range of palates. Prices for tea beverages are generally in the range of $2 to $4, making it an affordable option for tea lovers.

Complementing the beverage options, BeanBrews Corner also boasts an assortment of pastries and bakery items. Whether customers are in the mood for a sweet treat or a savory snack, the bakery section offers fresh, daily-made options including croissants, muffins, and scones, with prices averaging between $2 and $5. These bakery items are perfect for pairing with a cup of coffee or tea.

For those seeking a more substantial meal, the coffee shop also serves a variety of sandwiches and snacks. From gourmet sandwiches to wraps and salads, there’s something to satisfy any appetite. These menu items are ideal for lunch breaks or a quick, healthy snack, with prices ranging from $5 to $8, offering both value and quality.

Last but not least, BeanBrews Corner prides itself on its specialty drinks menu, which includes a range of unique and seasonal beverages. These specialty drinks are a testament to the creativity and passion of the baristas, showcasing flavors and combinations that can’t be found elsewhere. With an average price of $4 to $6, these specialty drinks offer a unique experience for those looking to try something new and exciting.

In summary, BeanBrews Corner caters to a wide range of tastes and preferences with its extensive menu of coffee and tea beverages, pastries, sandwiches, and specialty drinks. With its focus on quality, affordability, and variety, it’s the perfect spot for anyone looking to enjoy a delicious beverage or snack in a welcoming atmosphere.

Promotions Plan

BeanBrews Corner embraces a comprehensive promotional strategy to attract a vibrant customer base. At the heart of its efforts lies a robust online marketing campaign. The coffee shop leverages social media platforms such as Instagram, Facebook, and Twitter to engage with potential customers. By posting captivating content, including high-quality images of their coffee and pastries, BeanBrews Corner will build a strong online presence. Moreover, the shop will utilize targeted ads to reach coffee enthusiasts within Charlotte, NC, ensuring that their marketing efforts resonate with the local community.

In addition to online marketing, BeanBrews Corner will implement several other promotional tactics. The coffee shop will initiate a loyalty program to encourage repeat business. Customers will accumulate points with every purchase, which they can redeem for discounts or free items. This program not only incentivizes frequent visits but also fosters a sense of belonging among customers.

Furthermore, BeanBrews Corner will harness the power of local partnerships. By collaborating with nearby businesses and community organizations, the shop will gain exposure to a broader audience. These partnerships could include coffee pop-ups at local events or offering exclusive discounts to employees of partner organizations. Such collaborations will bolster BeanBrews Corner’s visibility and reputation within the community.

Email marketing will also play a crucial role in BeanBrews Corner’s promotional efforts. By collecting email addresses both in-store and online, the shop will send out regular newsletters. These newsletters will feature new products, special promotions, and upcoming events, keeping customers informed and engaged.

To cap off its promotional strategy, BeanBrews Corner will host a grand opening event. This event will not only serve as a celebration of the shop’s launch but also as an opportunity to showcase its offerings to the community. Live music, free samples, and special deals will attract a large crowd, generating buzz and excitement around the brand.

In summary, BeanBrews Corner employs a multifaceted promotional strategy encompassing online marketing, loyalty programs, local partnerships, email marketing, and a grand opening event. By executing these tactics, BeanBrews Corner will attract and retain a loyal customer base, establishing itself as a cherished destination for coffee lovers in Charlotte, NC.

Our Operations Plan details:

  • The key day-to-day processes that our business performs to serve our customers
  • The key business milestones that our company expects to accomplish as we grow

Key Operational Processes

To ensure the success of BeanBrews Corner, there are several key day-to-day operational processes that we will perform.

  • Inventory Management: We continuously monitor our stock levels to ensure we have all necessary ingredients and supplies, such as coffee beans, milk, and paper cups. This enables us to serve our customers without delay.
  • Quality Control: Daily checks are performed on our coffee machines and grinders to maintain the highest quality of coffee. We also taste our coffee throughout the day to ensure consistency in flavor.
  • Customer Service: Our staff engages with customers in a friendly and helpful manner, taking orders accurately and providing recommendations when asked. We ensure a welcoming atmosphere for all customers.
  • Cleanliness and Hygiene: Regular cleaning schedules are maintained throughout the day to ensure the shop, including the kitchen and seating areas, is clean and hygienic. This also includes sanitizing surfaces and equipment regularly.
  • Order Fulfillment: We efficiently manage the queue and prepare orders promptly while ensuring that every coffee served meets our quality standards. This minimizes wait times and improves customer satisfaction.
  • Financial Management: Daily sales are tracked, and expenses are monitored to manage the shop’s budget effectively. This includes performing cash handling duties and preparing deposits.
  • Staff Management: We schedule staff shifts to ensure adequate coverage during peak hours and manage the workload effectively. Staff training sessions are also conducted regularly to improve service quality.
  • Marketing and Promotion: We engage with our customers on social media platforms to promote our daily specials and upcoming events. This helps in building a community around our brand and attracting new customers.
  • Feedback Collection: We encourage customers to provide feedback on their experience and suggestions for improvement. This information is used to make necessary adjustments to our service and offerings.
  • Energy and Resource Management: We implement measures to reduce energy consumption and waste, such as using energy-efficient appliances and recycling, to ensure our operations are sustainable.

BeanBrews Corner expects to complete the following milestones in the coming months in order to ensure its success:

  • Securing a Prime Location : Identify and secure a lease for a location that is visible, accessible, and situated in a high-traffic area within Charlotte, NC, to ensure a steady flow of potential customers.
  • Obtaining Permits and Licenses : Successfully navigate the local regulatory environment to obtain all necessary permits and licenses required to legally operate a coffee shop in Charlotte, NC. This includes health department permits, business licenses, and any other local requirements.
  • Building Out the Coffee Shop : Complete the interior design, purchase, and installation of all necessary equipment and furniture to create a welcoming and efficient space for customers. This also includes ensuring the space meets all health and safety standards.
  • Hiring and Training Staff : Recruit, hire, and thoroughly train a team of baristas and support staff who are passionate about coffee and customer service. This team will be crucial in creating a positive customer experience and building a loyal customer base.
  • Marketing and Promotional Activities : Implement a strategic marketing plan that includes a grand opening event, social media campaigns, and local community engagement to generate buzz and attract customers to the shop.
  • Launch Our Coffee Shop : Officially open BeanBrews Corner to the public, ensuring that all operational, staffing, and marketing elements are in place for a successful launch.
  • Establishing Supplier Relationships : Secure relationships with high-quality coffee bean suppliers, local bakeries, and other necessary vendors to ensure a consistent and premium product offering.
  • Implementing a Customer Loyalty Program : Develop and launch a loyalty program or system to encourage repeat business and build a dedicated customer base.
  • Monitoring and Adapting Operations : Regularly review operational efficiency, customer feedback, and financial performance to identify areas for improvement and adapt strategies accordingly.
  • Get to $15,000/Month in Revenue : Reach the critical financial milestone of generating $15,000 in monthly revenue, which indicates a growing customer base and operational success. This will involve continuously optimizing the menu, pricing strategies, and marketing efforts to increase sales.

BeanBrews Corner management team, which includes the following members, has the experience and expertise to successfully execute on our business plan:

Benjamin Taylor, CEO

With an impressive track record in the coffee shop industry, Benjamin Taylor brings a wealth of experience to his role as CEO of BeanBrews Corner. His previous success in running a coffee shop demonstrates his deep understanding of the business, from operations to customer satisfaction. Benjamin’s leadership skills, combined with his passion for coffee and commitment to excellence, make him uniquely qualified to lead BeanBrews Corner towards lasting success. His experience not only in managing day-to-day operations but also in strategic planning and execution, places BeanBrews Corner in capable hands.

To achieve our growth goals, BeanBrews Corner requires a strategic investment in marketing, product development, and further establishment of our community presence. This investment will support our expansion plans, including enhancing our existing location, extending our product range, and implementing innovative marketing strategies to attract a broader customer base. Our financial strategy is designed to ensure sustainable growth while maintaining our commitment to quality and community engagement.

Financial Statements

Balance sheet.

[insert balance sheet]

Income Statement

[insert income statement]

Cash Flow Statement

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Coffee Shop Business Plan Example PDF

Download our Coffee Shop Business Plan PDF here. This is a free coffee shop business plan example to help you get started on your own coffee shop plan.  

How to Finish Your Coffee Shop Business Plan in 1 Day!

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How to Start Your Own Small Business?

M any people try their luck in business. This industry is enormous and offers a wide range of options for development. Many smart people can start their small businesses without being educated. There are multiple ways to enjoy success in this industry.

For example, you may use the assistance of the small business management software . It can control and carry out various processes. Of course, you need more than simply using smart technology. Thus, the experts from Vcita have prepared this comprehensive guide. It highlights the most effective tips to start your small business.

Determine Your Business Concept

The first task is to figure out what exactly you want to do. You may have plenty of ideas. Refine them to define the best option for you. It’s necessary to ask definite questions, such as:

  • What do you like?
  • What do you hate? (to avoid this niche)
  • Is there anything that can make things run easier?
  • What are your best skills?
  • What spheres are you good at?
  • Is there something you always wanted to do?

Ask these questions to define the best business concept for you. For example, you may sell service based business ideas . This is a vast branch of business. It includes a skilled service or person, expertise, or a physical product. So, you will surely have a lot of interesting perspectives. Here are some of the most popular concepts you can start:

  • Online writing
  • Photography
  • Landscaping
  • Vending machine business, etc.

Of course, you can choose other ideas too.

Conduct Marketing Research

Although you may find a standpoint that seems to be perfect, don’t haste! Your idea may have little chance of success. You need to carry out marketing research to find it out. Your main goal is to find out how perspective the selected niche can be.

To enjoy success with this task, undertake several steps. Make allowances for them here below:

  • Primary research. This method uses the opinion of your direct customers. It takes the forms of questionnaires, surveys, polls, or interviews. You ask potential customers to get honest and direct answers.
  • Secondary research. This method involves ways of finding, studying, and analyzing data from various sources.
  • A SWOT analysis. Strengths, weaknesses, opportunities, and threats are behind the abbreviation. It helps to find out all the pros and cons, potential benefits and drawbacks in the direction.

Remark! Do not forget to study your direct competitors. It’s vital to learn from their successful cases. Yet, you can learn from their failures too. You will understand what mistakes you can avoid.

Have a Business Plan

Once you have the direction and data, create a business plan . This is the core of your campaign and future business. It includes important peculiarities you must check and follow. These are as follows:

  • Executive summary. It highlights your business, and what you propose, and outlines the goals of your company.
  • Company description. This one clarifies the issues your product or service can solve. It also convinces your customers that what you offer is the best for them.
  • Market analysis. This point states how you stand against your competitors. It should include all possible positions. It includes segmentation analysis, market size, growth rate, and so on.
  • Organization and structure. This section outlines your risk strategies and what experts you need to make things run.
  • Mission and aims. This one states your mission, outlines the main wishes, and how you can achieve them.
  • What do you sell? You should outline the product or service you’re selling. Discover its main benefits and values.
  • Background summary. A comprehensive analysis of all possible factors that may impact your business.
  • Marketing plan. This section determines the main characteristics of your product or service. You need to add to it strategies of promotion, comparison with competitors, budget, etc.
  • Finance plan. This section shows how much money you need to run your business. It also includes hidden expenses.

Make sure all these sections are written properly!

Choose the Structure

Think of a structure your business will acquire. An LLC, LLP, corporation, or sole proprietorship are there. Each comes with its pros and cons. Pay attention to how many taxes will be charged. Besides, what your daily operations will be, and if your employees are put at risk.

Choose the Name and Register It

You should choose the name of your business. Make sure it is unique and no one else uses the same name. Register it according to the laws of your region to make it legal.

Open a Bank Account

You need to bring your finances to order. You surely require the capital that can guarantee that your company can be launched. Or, it can survive the competition. To ensure that, open a bank account. If you don’t have enough funds, you can borrow them.

It may be necessary to hire a bookkeeper. A professional expert will help to maintain your budget to use it wisely. An alternative solution is to use good software.

Use Technology

Don’t forget that technology is your friend. If you use it properly, it will surely provide a lot of benefits for your small business. A lot of apps and software provide tips, and examples, comprehensive analysis. Here are the best ones that suit small business:

Look for other tools if you need something else.

Fund Your Business

You surely have to find money to launch your business. There are various ways of getting the required money. People divide them into internal and external funds.

Internal funding:

  • Personal savings
  • Credit cards
  • Funds from friends and family

External funding includes:

  • Small business loans
  • Small business grants
  • Angel investors
  • Venture capital
  • Crowdfunding

You can combine both funding sources.

Get Insurance

The business industry is tricky. You need to apply for business insurance too. Thus, you’ll be able to protect your investments and the entire company.

It’s not too difficult to establish and run your own small business. You can use the tips we have provided above, as well as hire a few competent experts. This combination will help to launch it smoothly and enjoy the desired outcomes.

Many people try their luck in business. This industry is enormous and offers a wide range of options for development. M

After a 5-month-long 401(k) rollover process, a financial professional told me I should've asked 2 questions before even starting — and explained when it makes sense to keep your money separate

  • Consolidating your retirement money can be a smart financial move.
  • However, before initiating a 401(k) rollover, there are two important factors to consider.
  • CFP Brent Weiss says it's important to look at the plan's investment options and fees.

Last fall, I decided to roll over a 401(k) from a previous employer into my current plan.

About four years' worth of savings was in an account with Fidelity, while another two were in an account with Vanguard, and I wanted my money to be together in one place.

I struggled with the process, to say the least. The rollover contribution form was confusing, and two five-figure checks I mailed to Vanguard were lost in transit. From start to finish, it took me five months to combine my retirement money into one account.

I wrote about the saga and asked certified financial planner Brent Weiss to weigh in. What went wrong? Was my experience an anomaly? Why am I receiving physical checks in the mail from one financial institution and then resending them to another — in a day and age when I can transfer money to someone on the other side of the country in minutes via Zelle?

Weiss answered all of my questions and then some. 

It turns out that the process is archaic for a reason: There's no incentive for a 401(k) provider to invest in the technology to allow you to easily move your money off of their platform. After all, “the way they make money is based on how much money is on their platform," explained Weiss, adding: “Follow the money, follow the incentive.”

And while my five-month-long case may have been a little on the extreme side, he assured me that I'm far from the only person to have struggled with a 401(k) rollover: “The instructions to get this done on your own is wildly confusing.” Even for financial planners, it can be "a pain in the backside.”

He also told me that doing a 401(k) rollover is not necessarily the smartest financial move for everyone. That was news to me. I assumed consolidation was always the right choice.

He said it typically is: "When all of a sudden you have two plans and then you change jobs and you have three or four plans, you inevitably forget about two of the three or three of the four, and that's not a good thing for your money. Consolidation can be a great decision if it's going to help you take action in your plan and make sure you're monitoring and reviewing it."

However, he pointed out that there are two important factors to consider before even initiating a rollover.

1. What are the investment options?

Before moving your retirement money, consider the investment options at your current plan (or plans if you have multiple accounts) and the new plan.

“The average 401(k) plan only has about 15 to 20 investment options, so we want to look at those options: ‘Are they good? Do we want to have our money in this?’” said Weiss. “At the end of the day, when your accounts get to a certain size, you really want to make sure you have the ability to invest well and be broadly diversified.”

I told him my money was invested in a target-date retirement fund, which he approved: “For people without a financial advisor, I think target-date funds are great because you're getting a fully diversified strategy. If you pick the right retirement date or target date, it should be risk-appropriate for you, and it's low cost and automatically rebalances. All you have to do is contribute to the plan, and everything else is taken care of.”

2. What are the fees?

The next question to ask about your new plan is, what are the fees? 

High fees can be devastating to your 401(k) savings over a long period of time. The main ones to look into are plan administration fees, individual service fees, and investment fees.

Figuring out your fees requires a little bit of digging. Your employer is required to provide you with information on the company 401(k) plan, including the fee structure. You also can check your plan's prospectus online.

It’s worth looking into your plan fees even if you’re not doing a rollover. In some cases, high fees can outweigh the benefit of using a retirement account instead of a standard investing account.

While I didn’t ask either of these questions before initiating a rollover, I lucked out.

"Since you're with Vanguard — they're one of the lower-cost providers and they also give you some really good investment options — my guess, without seeing your account or understanding your plan, is yes, it was a great move," Weiss told me. "But it is plan-specific when I say 'yes' or 'no' to rolling the money into a new 401(k)."

If my old plan had lower fees or more favorable investment options than the new one, I would have been better off leaving my money there, he said.

opening your own financial planning business

Watch: Mark Cuban explains why a 401(k) is a no-brainer

opening your own financial planning business

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