Starting financial adviser business

Personal loan can be used for multiple purposes therefore people often use such financing for setting up a small business. You can either start from a home office or go for a cheap office location to meet with clients. To start your career as a financial adviser you must have a background in finance studies and its far better that you hold a professional certification like ACCA, CFA, or CIMA.

Due to an increase in public awareness about the financial decision making process, the trend for hiring a professional for financial advice is increasing day by day. Before this service was only used by wealthy people however, now it is widely used by middle class for different purposes. One must possess few characteristics if looking for starting financial adviser business;

  • Always be updated with latest technical developments and expertise, to cope with upcoming needs and demands from clients.
  • Good listening & communication skills to build relationships with clients
  • Excellent presentation skills to convey your message so that you can convince others

Steps to setting up a business as financial adviser

  1. Think about a name with which are going to start a financial adviser business. Typically people often use their personal names to start financial adviser business. But if looking to scale your business in future, then it is better to start your business with a generic name i.e. James Financial Advisory LLC.
  2. Register your business name with ‘secretary of the state’ with all supported documentation. Next you have to register your financial business with state department of business & financial regulation as it is mandatory for finance category.
  3. Hunt for a cheap but reasonable office space where you can carry out the necessary meetings with your clients. You will need a license from SEC if operating alone, however if working with another firm then they will share it with you.
  4. Make a plan for your business, identify the market segments to target, make goals for coming few months and then start following your plan.
  5. Start pitching different companies in market and making contacts with them by requesting information and then giving your point.
  6. Setup a marketing strategy and possible ways of doing so. Setup a website and ensure your online presence to engage clients and providing information about your services & expertise. You must focus on convincing your clients about ‘why they should work with you’ beside to general information topics.
  7. People often like to work with professionals to get the best in the market. Therefore it will be a continuous effort to keep your knowledge updated and may require to opt for any latest certification for building credibility.

Final Thoughts

All the above procedures are not very expensive except one, which is getting an office on rent. However, with proper planning and expert searching one can find a cheap place to start with. A personal loan amount can go up to $50,000 at max. people often use it as a source of financing for small business. Starting financial adviser business with such a small budget is considered as effective because there is no need to buy any inventory. In fact inventory is your skill and you just have to provide your expertise as services to your clients.