Did you know that only 10% of startups fail within the first year? If fear of failure is stopping you from starting a finance company, think again.
The key to running a successful business involves getting a business off of the ground with the right steps. Read on to learn our best tips for those who want to start a financial planning company.
1. Consider the Start-Up Costs
When starting a finance company, you are going to experience the same start-up costs that any other business would need. If you have a new broker-dealer, you’ll need an earnest deposit.
Besides the deposit, the start-up costs will include utilities, rent, furniture, advertising, technology, and much more. For those who don’t already have a license and training, you’ll need to pay for that as well.
2. Get a License
Another tip on how to start a finance company involves getting the proper licensing. Those new to the industry entirely should consider going a step further by earning a professional designation like the Certified Financial Planner.
These credentials can show credibility and provides the necessary training needed to succeed in this industry.
If you have already been in the business for a while, you may not need licensing. However, if you are going into a new line of work with this financial planning company, licensing is a good idea.
3. Create a Business Plan
To gain funding for a financial services company, you’ll need to create a business plan. If you already have the necessary costs covered, a business plan can still benefit you in other ways.
A great business plan will include the following information:
- Business goals
- Strategies to achieve goals
- State of the financial market
- Clients and prospects demographics
- Competition analysis
- Marketing plan
- Probable costs
The last thing in a business plan is the time it will take to accomplish the objectives. Of course, this will just be an estimate.
4. Choose a Business Model
To start a wealth management business or any business, means choosing a business model. This choice involves outlining the services your company will provide.
For example, starting a loan business is one option. You should also figure out a method of compensation.
How will you be paid? On a commission basis or fee basis?
5. Build Relationships
When starting a finance company, you’ll appreciate what relationships can do for you. To start building a network, find an attorney to partner with.
You can also reach out to a mentor you’ve worked with before. This will be especially beneficial if you are new to the business.
As you start to establish professional relationships, you’ll be able to build a trusted team to help you become successful. This tip may be your biggest asset.
Thinking of Starting a Finance Company?
Let’s be honest, taking any business from the ground up is a challenge. The good news is that starting a finance company isn’t harder than building in other industries.
If wealth management is your passion, knowing how to get started can lead you to your dream. Use this guide as an outline of what you can do right now to get your business moving.
For more business related articles and posts about other topics, check out the rest of our blog.