Financial planning firms are on the rise! Why? Well, recent adjustments to pensions have created greater freedoms, while legislative changes to taxes have created greater complexity. With this in mind, experts believe that the next decade is set to record a
But what do you need to know in order to create your own successful financial planning firm?
Have a solid business plan
As a prospective firm owner, you should have a set figure in mind to cover immediate start-up costs. While you should never pay over the odds, you should also certainly avoid skimping – it would be very ironic for your financial planning business to fail because you struggled with your finances! Money Marketing reports that , and that around 8-10% of this figure should be used to fund an office space and set up any basic technology services.
Of course, the ability to plan for costs elsewhere is a little trickier, even more so with COVID-19 creating global economic instability and Brexit continuing to bring uncertainty. As well as this, current advisors warn that client requests are unpredictable; therefore, a solid insurance policy is recommended.
Include a hiring process within that business plan
For many financial advisors, setting goals is a huge focus when creating a business plan. This is all well and good, but try not to focus wholly on yourself – be sure to map out a hiring process! The majority of planning firms don’t consider hiring a second employee until they’re desperate, and when that happens, if you’re underprepared, you’re far more likely to hire the wrong person and make mistakes along the way.
Side with the like-minded
As you start your venture, set out to find like-minded advisers, as doing so will allow you to help build your practice and refine your skills. You may have that “do it all by yourself” mentality but by teaming with other individuals in the field, you will save yourself time, energy and money. It’s also very possible to be a solo entrepreneur without actually flying solo.
That last point fits in well here; you can use likeminded advisers as accountability partners. You’re going to encounter (and overcome!) a lot of obstacles if the firm you’re planning is to be successful, and it’s important to remain intact when the going gets tough. Call yourself out when things are hard but don’t hesitate to celebrate any small victories.
Find the right office
Working remotely is increasingly growing in popularity, however, some potential clients will be far more attracted to a brick-and-mortar office. Having one will help to prove your credentials, and can increase productivity and reduce stress levels. Alongside this, it’s also important to consider which technology you wish to set up and if you will need any help in doing so.
Fellow advisers recommend risk profiling tools and everything else that may help build a decent rapport. From My Protein to Amazon, regardless of the nature and size of your business, credentials are everything. That’s precisely why you may consider serviced offices in the City of London from BE Offices to help your new financial planning firm to present the most favourable image and win clients from the outset.
Founder Dinis Guarda
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