It can be tough to start a business, especially in industries with a lot of competition. Operating a business requires discipline and persistence for when times get tough. Business owners who have been able to survive the tough times of the development stages of their businesses have garnered a lot of satisfaction from building their own businesses. There are many lessons that have to be learned by financial advisors who wish to start their own advisement firms. These are a few tips that independent financial advisors can use to effectively develop their own companies.
Owning a business is different from being an employee for a company. The finances of the business are now in the hands of the former employee rather than in the hands of an employer. Financial advisors who are attempting to become independent advisors should have enough capital to cover their living expenses during their businesses’ development. Meg Bartelt, the founder of Flow Financial Planning, believes that two to three years worth of living expenses is more than enough for a new business owner to survive off of.
Develop a Business Plan
A business plan is crucial when developing a company. The plan provides guidance for what a person wants to accomplish with their business and the steps that they will take to get there. When times get difficult, a business plan will create a path for steps to take in order to overcome the tough times. Eric Clarke, the Chief Executive Officer of Orion, believes that independent financial advisors should aim to have at least $100 million in assets to help bypass a variety of additional steps.
Find Clients, Keep Clients
Financial advisors need clients in order to build sustainable businesses. Advisors that currently have clients should reach out to their existing clients to explain that they are leaving their firms. Additionally, these advisors should do their best to retain their clients so that they have foundations to build from. It is possible to start fresh, however, but it will make the business development process more difficult.
Build a Team
A business can’t be sustained alone. An independent financial advisor will need to build a team around themselves for support, guidance, and additional clients.