How To Start A Financial Advisor Business

Start A Financial Advisor Business

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You've stumbled upon the idea to build a financial advisor business and now you're ready to take the next steps.

There's a lot to think about when building a business, so we put together a guide on how to get started, launch, grow and run your financial advisor business.

We also provide you with real-life case studies and examples of founders running successful financial advisor business (and how much💰 they're making today).

market size
$57.2B
avg revenue (monthly)
$491K
starting costs
$27K
gross margin
13%
time to build
12 months
average product price
$2000
growth channels
Word of mouth
business model
Consulting
best tools
Kajabi, YouTube, Slack
time investment
Side project
pros & cons
20 Pros & Cons
tips
6 Tips

💡 Introduction To Starting A Financial Advisor Business

Is Starting A Financial Advisor Business Right For You?

There are many factors to consider when starting a financial advisor business.

We put together the main pros and cons for you here:

Pros of starting a financial advisor business

• Flexibility

You can put as much time into the business as you'd like. If you like the work and have some initial experience, you can start small and manage all aspects of the business on your own.

• Ability to start your business from home

It's not necessary to have a physical storefront or office space to get your business started. You can do everything from the comfort of your own home, at least in the beginning!

• Scalable

With businesses and processes changing daily, there will always be demand for new features, products and services for your business. Additionally, there are several different business models and pricing tiers you can implement that will allow you to reach all types of customers.

• Meaningful business connections

You never know who you will meet as a financial advisor business. This could be the start of an incredible business opportunity!

• High customer retention rates

Once a customer invests in your product, they've invested their time and energy to utilize your product/service which is highly valuable to them. Typically, your product or service becomes indispensable to your customer.

• Quick build time

The average time it takes to build your product is quick - typically around 12 months. This will allow you to bring your product to market faster.

• Simple business model

A financial advisor business has the advantage of a simple business model, which makes launching and building the business more seamless.

• Greater Income Potential

With this business, the sky is the limit in regards to your income potential.

• You get to do something you truly love

With starting a financial advisor business, you get to put your energy into something you are truly passionate about! You'll find yourself devoting as much time and energy as possible into the business to make it successful.

• You can work from anywhere!

Not only can you start your financial advisor business from home, you can also run your business from anywhere in the world. This is the entrepreneur dream.

• You get to inspire others

Your business is one that encourages and inspires others, which in itself, can be very fulfilling.

• High Hourly Pay Rates

On average, the hourly pay rates are high for your financial advisor business - which means quality of clients is often superior to quantity of clients.

Cons of starting a financial advisor business

• Crowded Space

Competition is high when it comes to your financial advisor business, so it's important that you spend a good amount of time analyzing the market and understanding where the demand lies.

• Longer Sales Process

A financial advisor business can be a big time and money investment for your customer, so it's important you plan and predict a longer conversion funnel and stay in communication with potential customers.

• Time commitment

With starting a financial advisor business, all responsibilities and decisions are in your hands. Although this is not necessarily a negative thing, work life can take over at times. This can place a strain on friends and family and add to the pressure of launching a new business.

• Difficult to build trust with your customer

With starting a financial advisor business, there can be minimal face-to-face interaction, which means it can be a lot more difficult to establish trust with your customers. You'll need to go the extra mile with your customer to grab their attention and business.

• Impatient customers

You may offer an engaging user experience for your customer, but customers expect a lot and may be impatient if they aren't pleased with your product or service.

• You might struggle financially (at first)!

If you bootstrap your business or choose not to pay yourself (or pay yourself less than you were making at your corporate job), this can be financially taxing. It's important to adjust your lifestyle and set a plan for yourself so you don't find yourself in a stressful situation.

• Minimal physical activity

A big part of starting a financial advisor business is sitting at a desk for the majority of the day starting at your computer. Some may enjoy this, but others may struggle with sitting for the majority of your day without much physical activity.

• More challenging to earn passive income

It can be more of a challenge to make passive income in this business. Often times, the amount of revenue you bring in is limited by the amount of time you have in the day.

Players

Big Players

Small Players

Search Interest

Let's take a look at the search trends for financial services over the last year:

How To Name Your Financial Advisor Business

It's important to find a catchy name for your financial advisor business so that you can stand out in your space.

Here are some general tips to consider when naming your financial advisor business

  • Avoid hard to spell names: you want something easy to remember and easy to spell for your customers
  • Conduct a search to see if others in the space have the same name
  • Try not to pick a name that limits growth opportunities for your business (ie. if you decide to expand into other product lines)
  • As soon as you have an idea (or ideas) of a few names that you love, register the domain name(s) as soon as possible!

Why is naming your financial advisor business so important?

The name of your business will forever play a role in:

  • Your customers first impression
  • Your businesses identity
  • The power behind the type of customer your brand attracts
  • If you're memorable or not

It's important to verify that the domain name is available for your financial advisor business.

You can search domain availability here:

Find a domain starting at $0.88

powered by Namecheap

Although .com names are the most common and easiest to remember, there are other options if your .com domain name is not available. Depending on your audience, it may not matter as much as you think.

It's also important to thoroughly check if social media handles are available.

As soon as you resonate with a name (or names), secure the domain and SM handles as soon as possible to ensure they don't get taken.

Here's some inspiration for naming your financial advisor business:

  • Transaction Financial check availability
  • How Banking check availability
  • Social Finance Co check availability
  • The Native check availability
  • Independent check availability
  • PremedicalAdvisor check availability
  • Safe Direct Collective check availability
  • The Practical check availability
  • Consulting Place check availability
  • The Better check availability
  • Literary Consultant check availability
  • The Non check availability
  • ClearGuide check availability
  • True check availability
  • Counsel Spot check availability
  • Helpful Budgetary Trading Co check availability
  • Global check availability
  • The Global check availability
  • The Sure check availability
  • Economist check availability
  • The Introductory Guidebook check availability
  • Financial check availability
  • Comparative Economy Trading Co check availability
  • Best Conduct Place check availability
  • Fiscal Financier check availability
  • BriefGuide check availability
  • The Competent check availability
  • The Safe Pass check availability
  • Closest check availability
  • 271Financial check availability
  • TrustworthyGuide check availability
  • The Pro Banking check availability
  • Counsellor Co check availability
  • The Spiritual check availability
  • IndianGuide check availability
  • Sufficient Pathfinder Spot check availability
  • Budgetary Place check availability
  • Editorial Counselor Place check availability
  • Steer Co check availability
  • Advisors Advisor check availability
  • Fiscal Accounting Trading Co check availability
  • Stu Fiscal check availability
  • Registered Aide Collective check availability
  • Academic Assistant check availability
  • Literary check availability
  • Macro Financing Trading Co check availability
  • The Personal check availability
  • Expert Advisers Group check availability
  • The Excellent check availability
  • Consulting Trading Co check availability
  • Artistic Advice check availability
  • Usher Co check availability
  • The 27 1 Fiscal check availability
  • Investment Place check availability
  • MoralFinancial check availability
  • TwoFinancial check availability
  • Unofficial check availability
  • The Handy Direct check availability
  • Take Co check availability
  • The Friendly Direct check availability
  • General Guideline check availability
  • Faithful Pass check availability
  • Academic Counselor Trading Co check availability
  • Diplomatic Consulting Co check availability
  • Pro Economic Spot check availability
  • Economic Financing Co check availability
  • Adequate Direct Co check availability
  • The Civilian check availability
  • Scuba diver Advisor check availability
  • The Neutral Advisory check availability
  • Quick Pathfinder Pro check availability
  • The Industrial check availability
  • Commercial Financial check availability
  • The Unofficial check availability
  • The Key check availability
  • Take Place check availability
  • Emotional Budgetary Collective check availability
  • PartFinancial check availability
  • The Time Consultant check availability
  • Time Counselor Trading Co check availability
  • Good Governing check availability
  • Diplomatic Investment Spot check availability
  • Financial Advisers Group check availability
  • Usher Spot check availability
  • Economic Officer Spot check availability
  • Investment Pro check availability
  • The Musical check availability
  • Literary Advisory Pro check availability
  • Military Fiscal check availability
  • Cider Advisor check availability
  • Engine driver Advisor check availability
  • Flyer Advisor check availability
  • Convenient Guidebook Place check availability
  • Insider Advisor check availability
  • Excellent Scout check availability
  • HelpfulGuide check availability
  • Artistic Attache check availability
  • Necessary Economy Trading Co check availability
  • SurerGuide check availability
  • Regional Counsel Pro check availability
  • The Professional check availability
  • Poor Take Group check availability
  • The Academic check availability
  • Safest check availability
  • Fresh Financing check availability
  • Strategic Mentor Spot check availability
  • Artistic check availability
  • Indispensable Conduct Place check availability
  • Fiscal Fundraising check availability
  • Friendly Assistant Trading Co check availability
  • PracticalGuide check availability
  • Counsel Financial check availability
  • Fiscal check availability
  • Competent Consultant check availability
  • Counsel Collective check availability
  • The Expert Assistant check availability
  • Moral Monetary Group check availability
  • Only check availability
  • Two Banking check availability
  • Timer Advisor check availability
  • Essential Head check availability

Read our full guide on naming your financial advisor business ➜

How To Create A Slogan For Your Financial Advisor Business:

Slogans are a critical piece of your marketing and advertising strategy.

The role of your slogan is to help your customer understand the benefits of your product/service - so it's important to find a catchy and effective slogan name.

Often times, your slogan can even be more important than the name of your brand.

Here are 6 tips for creating a catchy slogan for your financial advisor business:

1. Keep it short, simple and avoid difficult words

A great rule of thumb is that your slogan should be under 10 words. This will make it easy for your customer to understand and remember.

2. Tell what you do and focus on what makes you different

There are a few different ways you can incorporate what makes your business special in your slogan:

  • Explain the target customer you are catering your services towards
  • What problem do you solve?
  • How do you make other people, clients, or your employer look good?
  • Do you make people more successful? How?

3. Be consistent

Chances are, if you're coming up with a slogan, you may already have your business name, logo, mission, branding etc.

It's important to create a slogan that is consistent with all of the above.

4. Ensure the longevity of your slogan

Times are changing quickly, and so are businesses.

When coming up with your slogan, you may want to consider creating something that is timeless and won't just fade with new trends.

5. Consider your audience

When finding a catchy slogan name, you'll want to make sure that this resonates across your entire audience.

It's possible that your slogan could make complete sense to your audience in Europe, but may not resonate with your US audience.

6. Get feedback!

This is one of the easiest ways to know if your slogan will be perceived well, and a step that a lot of brands drop the ball on.

Ask friends, family, strangers, and most importantly, those that are considered to be in your target market.

Here's some inspiration for coming up with a slogan for your financial advisor business:

Financial Is Crazy Good.

Work Hard, Consulting Harder

From Entirely To Function

Tunisium Is What We Do

We Don't Make Guide. We Make Guide Better.

Financial, Satisfies The Need.

Advisors With Case

Free Financial For All.

Play Financial, Start Living.

Consultancy Is What We Do

Financial Councilors Are What We Do

Advisors With Policy

Site Of The Monetary

Let's Advisor!

I Love Financial.

Financials With Economy

Take Two Bottles Into The Guide?

Senior Asesors Are What We Do

Helpful Carryings Are What We Do

Work Hard, Carrying Harder

The Consulting Business Model

When implementing a consulting business model, you have a number of approaches to choose from:

Here are a few of the most common consulting business models:

1. The Time-Based Model

This is one of the more traditional consulting business models - where your rate, terms, and scope of work are outlined at the very beginning of the project.

Typically, with this model you would choose a day rate or an hourly rate.

2. The Project-Based Model

With a project-based model, you and your client agree on the scope of work you will be performing for a set amount of money.

There is typically a contract in place which covers the deliverables and expectations from both parties.

3. The Retainer-Based Model

The retainer model involves providing ongoing service for your clients over a specific period of time.

You may not provide a specific deliverable for your client, but instead, a broad scope of work over a set period.

4. The Consulting-Firm Model

This model is becoming more and more popular. The consulting firm model involves hiring freelancers or employees to complete work for your clients on your behalf.

Typically, in this situation, you still manage the relationship with the client, but you delegate some or all of the work to your team.

Which model should you choose?

The best way to determine which business model you will choose is to research other entrepreneurs or agencies in your space that are offering the same or similar service.

This will allow you to identify your competition, set your pricing, and determine your target audience.

🎬 How To Start A Financial Advisor Business

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How Much Does It Cost To Start A Financial Advisor Business

If you are planning to start a financial advisor business, the costs are relatively low. This, of course, depends on if you decide to start the business with lean expenses or bringing in a large team and spending more money.

We’ve outlined two common scenarios for “pre-opening” costs of starting a financial advisor business and outline the costs you should expect for each:

  • The estimated minimum starting cost = $7,466
  • The estimated maximum starting cost = $46,811
Startup Expenses: Average expenses incurred when starting a financial advisor business. Min Startup Costs: You plan to execute on your own. You’re able to work from home with minimal costs. Max Startup Costs: You have started with 1+ other team members.
Office Space Expenses
Rent: This refers to the office space you use for your business and give money to the landlord. To minimize costs, you may want to consider starting your business from home or renting an office in a coworking space. $500 $5,750
Utility Costs For Office Space: Utility costs are the expense for all the services you use in your office, including electricity, gas, fuels, telephone, water, sewerage, etc. $200 $1,150
WiFi & Internet: Whether you work from home or in an office space, WiFi is essential. Although the cost is minimal in most cases, it should be appropriately budgeted for each month! $50 $100
Total Office Space Expenses $750 (min) $7,000 (max)
Employee & Freelancer Expenses
Payroll Costs & Fees: Payroll cost means the expense of paying your employees, which includes salaries, wages, and other benefits. This number depends on if you decide to pay yourself a salary upfront and how many employees you have on payroll. At first, many founders take on all responsibilities until the business is up and running. You can always hire down the road when you understand where you need help. Keep in mind, if you do plan to pay yourself, the average salary founders make is $50K. $150 $250
Employee Hiring Expenses: Apart from payroll and benefits, there are other hiring employees costs. This includes the cost to advertise the job, the time it takes to interview candidates, and any other turnover that may result from hiring the wrong candidate. $1 $2
Employee Rewards: It's vital to acknowledge and reward workers, whether they hit their goals or do a great job. This does not have to be costly. In fact, simply taking workers out to a meal or giving a gift or bonus is among the many ways to show how the worker is valued! $0 $100
Total Employee & Freelancer Expenses $151 (min) $352 (max)
Equipment & Supply Expenses
Technology Office Equipment: This includes (but is not limited to) physical items such as: laptops, cameras, monitors, microphones, speakers, headsets. Technology needs grow as your company evolves, so to minimize costs, try and only purchase what is needed for you to run your business at the time. $500 $5,000
Total Equipment & Supply Expenses $500 (min) $5,000 (max)
Website Costs
Website Builder: The cost of your website will vary depending on which platform you choose. There are many website builders on the market, so it's important you choose the right one for your business and overall goals. To learn more about your options + how to build a great website, check out this article. $10 $500
Web Design: Web design includes several different aspects, including webpage layout, content creation, and design elements.If you have the skills and knowledge to design your website on your own, then outsourcing this to an expert may not be necessary. There are plenty of other ways you can design a beautiful website using design tools and software. $200 $6,000
A Domain Name: Your domain name is the URL and name of your website - this is how internet users find you and your website.Domain names are extremely important and should match your company name and brand. This makes it easier for customers to remember you and return to your website. $12 $200
Business Email Hosting Service: An email hosting runs a dedicated email server. Once you have your domain name, you can set up email accounts for each user on your team. The most common email hosts are G Suite and Microsoft 365 Suite. The number of email accounts you set up will determine the monthly cost breakdown. $1 $15
Website Hosting Costs: Server hosting is an IT service typically offered by a cloud service provider that hosts the website information and allows remote access through the internet. A hosted server can help you scale up and increase your business’s efficacy, relieving you from the hassles of on-premise operations. $80 $300
Website & Live Chat Tool: If your business values high-end customer service, you must consider utilizing a website chatbot. Website chatbots play a pivotal role in converting site visitors into long-term customers. Typically, there are different tiers of pricing and features offered by Live Chat service providers. $0 $200
Total Website Costs $303 (min) $7,215 (max)
Business Formation Fees
Small Business Insurance: Depending on which state you live in and the business you're operating, the costs and requirements for small business insurance vary. You can learn more here. $500 $2,000
Permit and License Fees: Depending on your industry, there are certain licenses and permits you may need in order to comply with state, local, and federal regulations. Here is an article that goes over all the permits and licenses you may need for your financial advisor business. $50 $700
Trademarking: Filing trademark registration will protect your brand and prevent other businesses from copying your name or product. USPTO has several different types of trademarks, so the cost to apply can vary (typically anywhere from $400-$700). $0 $700
Lawyer Fees: Although you may want to avoid attorney fees, it's important that your business (and you) are covered at all costs. This comes into play when creating founder agreements, setting up your business legal structure, and of course, any unforeseen circumstances that may happen when dealing with customers or other businesses. $0 $1,500
A Patent: Patents provide protection against others stealing or selling your idea.Securing a patent can be very valuable, but it's important that you are 100% sure this will be a smart business move for you, or if this is something to consider down the line.The process of securing a US patent can be both lengthy and pricey, and typically includes filing an application with the USPTO. $5,000 $15,000
Set up business: LLC & Corporations: The first step in setting up your business is deciding whether your business is an LLC, S Corp or C Corp. The cost for this depends on which state you form your business and which structure you decide on. We put together an article that goes over the 10 Steps To Setting Up A Business. $50 $500
Total Business Formation Fees $5,600 (min) $20,400 (max)
Training & Education Expenses
Online Learning Sites: With a financial advisor business, you and your team may not know all the steps for starting and growing a business. There are plenty of resources out there to help you, such as online courses or learning platforms, but they aren't always free! Starter Story is a great resource for case studies, guides and courses for starting your business. $0 $1,000
Total Training & Education Expenses $0 (min) $1,000 (max)
Software Expenses
Design Programs & Software: These programs might include the Adobe family of design tools: Photoshop, Illustrator, InDesign and others. This is typically a monthly subscription ranging from $10-$50/mo. $0 $50
Email marketing tool: If you plan to grow your email list and email marketing efforts, you may want to consider investing in an email marketing platform (ie. Klaviyo, MailChimp). We put together a detailed guide on all of the email marketing tools out there + the pricing models for each one here $0 $100
IT Support: IT support installs and configures hardware and software and solves any technical issues that may arise.IT support can be used internally or for your customers experiencing issues with your product/service.There are a variety of tools and software you can use to help with any technical issues you or your customers are experiencing. This is a great option for businesses that do not have the means to hire a team of professionals. $150 $2,000
Accounting & Invoicing Software: It's important to have an accounting system and process in place to manage financials, reporting, planning and tax preparation. Here are the 30 best accounting tools for small businesses. $0 $50
CRM Software: CRM (customer relationship management) software system is used to track and analyze your company’s interactions with clients and prospects. Although this is not a necessary tool to have for your business, implementing this, in the beginning, may set your business up for success and save you valuable time. $12 $300
Project Management Software: You may want to consider using a project management and collaboration tool to organize your day-to-day. This can also be very beneficial if you have a larger team and want to keep track of everyones tasks and productivity. For a full list of project management tools, check out this full list here. $0 $25
Internal Communication Tool: If you plan to have multiple members on your team, you may want to consider an instant message tool such as Slack or Telegram. The cost is usually billed per month (approx $5/user/month) or there are freemium versions available on many platforms. $0 $20
Social Media Management Tools: If you plan to do social media marketing for your financial advisor business, you should consider investing in a social media automation or publishing tool. This will save you time and allow you to track performance and engagement for your posts. Here is a list of 28 best social media tools for your small business. $0 $50
Payroll Software: The main purpose of payroll software is to help you pay your team and track each of those payments (so that you don't have to do it manually). If you do not have any employees or have a very small team, payroll software may not be necessary at this stage. Here are the 11 best payroll tools for small businesses! $0 $200
Online data storage: It's important to make sure the information for your financial advisor business is stored and protected should something happen to your computer or hard drive. The cost for this is affordable and depends on how much data you need to store. To learn more about the different options and pricing on the market, check out this article. $0 $299
Total Software Expenses $162 (min) $3,094 (max)
Advertising & Marketing Costs
Business Cards: A financial advisor business involves quite a bit of customer interaction, whether that is attending tradeshows, sales calls or simply having face to face interaction with prospective clients. Business cards are a great way to stay front of mind with your clients. $0 $50
Direct Campaigns, Printing and Mailing: Although it may sound old-school, traditional marketing methods can be a cost-effective way to drive awareness for your brand. This includes flyers, postcards, sales letters, coupons, special offers, catalogs and brochures. $0 $300
Influencer Marketing: Partnering with like-minded influencers is one of the most effective ways to grow your social media presence. Many small businesses simply gift a free item in exchange for an influencer post, or pay the influencer directly. $0 $750
Press: If your business and story is unique enough, press and media attention may come to you, but odds are, you may need to do your own outreach and budget for this. We put together a guide here that discusses different press opportunities (both free and paid). $0 $500
Google Ads: With Google Ads you have the ability to control how much you spend by simply setting a monthly budget cap. Additionally, with these ads you only pay for results, such as clicks to your website or phone calls! It's okay to start with a small budget at first and make changes accordingly if you see valuable returns. $0 $300
Facebook & Instagram Ads: With Facebook and Instagram ads, you set your budget and pay for the actions you want (whether that be impressions, conversions, etc).You can learn more about pricing based on your impressions here. $0 $350
Total Advertising & Marketing Costs $0 (min) $2,250 (max)
Other Expenses
Time!: Time is money! When starting a business, think about how much time you are spending on certain tasks that could be delegated to another team member or automated. Additionally, spending too much time on tasks that aren't associated with revenue is a hidden cost of running a business. $0 $500
Total Other Expenses $0 (min) $500 (max)
Total Starting Costs $7,466 (min) $46,811 (max)

Raising Money For Your Financial Advisor Business

Here are the most common ways to raise money for your financial advisor business:

Bootstrapping

You may not need funding for your financial advisor business.

In fact, many entrepreneurs take this approach when starting their own business, whether they have a little amount of cash or a substantial amount to get started.

So what exactly does the term "bootstrapping" mean?

This method essentially refers to self-funding your businesswithout external help or capital and reinvesting your earnings back into the business**

Bootstrapping means building your company from the ground up with your own, or your loved ones, personal savings and reinvesting all earnings back into the business

Here are some tips to consider when bootstrapping your business:

  • Use your savings as your capital - one of the best ways to bootstrap your business is to collect your savings and use them as startup capital. This will also help you avoid using your personal or business credit cards when getting started.
  • Determine exactly how much capital you need and how much capital you have to get your business off the ground. Generally, when bootstrapping your business, you may want to consider starting a business that involves less startup capital.
  • Consider starting a business that will generate immediate returns so you can put money back into the business
  • Be as lean as possible - this refers to cutting down expenses as much as possible, such as payroll, fancy software tools, unnecessary travel, renting an office, etc
  • Consider outsourcing instead of hiring - in the beginning, you may not need to hire someone permanently to help run your business. It tends to be much less expensive to outsource work to a freelancer and hire someone permanently down the road!

Want to learn more about bootstrapping your business? Check out this article

VC Funding

VC funding is a traditional and long process, but an effective way to raise money for your business.

The term "VC funding" refers to venture capital firms investing in businesses in exchange for equity.

The VC's (venture capitalists) are an individual or small group investing in your business and typically require substantial ownership of the business, with the hope of seeing a return on their investment.

VC's are typically the best approach for businesses with high startup costs - where it would be very difficult to raise the money on your own or through a loan.

When deciding whether to take this approach, it's important that you have a few things in place first, and know what you're getting yourself into:

Determine if your business is ready

Having an idea is not enough to get VC funding.

Typically, VC's will check to make sure you have these things in place prior to closing any deal:

  • An MVP (Minimal Viable Product)
  • A founding team with all proper documents in place (articles of organization, business formation)
  • A validated idea with actual customers buying your product/service

Get everything in place and build a pitch deck

A VC individual or firm will be expecting a fine-tuned presentation that gives an overview of your business.

Here's what you should consider including in your pitch deck:

  • Management team, their previous experience + current roles in the business
  • Market challenge and solution
  • Company financials - including a P&L statement, cash flow statement, and projections
  • Company progress
  • Investment amount - how much do you need and why?

Research the right VC to fund your business

Research the types of VC investors out there and what niche they focus on.

Then, put together a list of target VC's you want to approach and your strategy around setting up meetings.

Be sure you have everything in place (as discussed above) before setting up any meeting!

Make sure the terms and expectations are right for your business

Committing to VC funding is a big deal and a decision that should not be made lightly.

Although the money and experience from VC's can help your business quickly grow, you are also giving away a stake in the company, and the money comes with strings attached.

Be sure you do your due diligence in finding the right investor - one that truly believes in the growth and success of your business.

What Skills Do I Need To Succeed In Starting A Financial Advisor Business?

As a financial advisor business, there are several essential skills and characteristics that are important to identify prior to starting your business.

Let’s look at these skills in more detail so you can identify what you need to succeed in your day-to-day business operations:

Resarch and Writing Skills

Research and writing skills are critical when starting a financial advisor business. Here's what this looks like:

  • Basic computer & technology skills (Microsoft office or Google sheets/docs knowledge, data input, and proficiency in typing)
  • Creativity & originality in your work and approach
  • Great communication skills and ability to meet deadlines
  • Understanding of SEO

Other skills that businesses find valuable include digital marketing skills, basic web design, and accounting abilities. Some employers may also look for a financial advisor business that has a bachelor's degree or formal education.

Additionally, you may want to consider putting together a portfolio of past work and experience. This includes samples of writing/research pieces, from school projects to internship work to career experience.

Business Savvy Skills

When starting a financial advisor business, there are a few fundamental business skills you will want to learn in order to be successful:

  • Leadership and training skills: A great team starts with YOU. Make sure you have all company policies and training procedures in place prior to hiring your team
  • Decisive and self-confident: Over the course of your career, you will need decisions that could impact your business significantly. It's important you are able to think clearly and rationally about these decisions.
  • Ability to understand the financials: You don't need to be an accountant, but it is important that you are able to clearly understand and define metrics such as expenses, revenue, profit, margins, COGS, etc.
  • Strategic Thinking: Setting clear goals and benchmarks, identifying opportunities, risks. Ability to effectively communicate these insights to your team.

These are a few of many business savvy skills you should have (or work on) when starting a financial advisor business.

For a full list, check out this article here.

Customer Service Skills

Friendly communication with customers and the ability to address service issues is a critical part of the job.

Here are some customer service skills you may want to consider prior to starting a financial advisor business:

  • Professionalism: The way you act, present yourself, and respond to situations all leave an impression on your customer. It's important to stay professional at all times when handling customer requests or issues.
  • Problem-solving: When issues arise, it's important that you are able to think quick on your feet and address the situation with a calm and clear solution
  • Friendly-manner: This is an obvious one, but customers truly appreciate someone that can respond in a quick, efficient, and friendly manner.
  • Proficient in writing: These skills include the ability to write well-crafted emails, service tickets, and any other programs used by the business (ie. chat functions, SMS texting)

Coaching Skills

Coaching and leadership skills are critical to have when starting a financial advisor business.

Here's what this looks like:

  • Empathy & Emotional Intelligence: The ability to identify and manage the emotions/needs of your clients is a critical part of the job
  • Motivation: Motivating and encouraging your clients to push themselves physically and often mentally. You will be holding them accountable!
  • Patience: Results don't happen overnight - it's important both you and your client are able to remain calm and patient throughout the process

Advice For Starting A Financial Advisor Business

We've interviewed thousands of successful founders at Starter Story and asked what advice they would give to entrepreneurs who are just getting started.

Here's the best advice we discovered for starting a financial advisor business:

Conor Delaney, founder of The Good Life Companies ($2M/month):

Starting a business teaches us so much about perseverance and personal growth.

Read the full interview ➜

-

AJ Stockwell, founder of Climb CFO ($/month):

Researching keyword traffic for interest in your product would be a completely free way to start validating your idea before putting too much time or money into it.

Read the full interview ➜

-

Denzel Rodriguez, founder of Builder To Contributor LLC ($20K/month):

I have learned that starting a business in the 21st century the fastest way to gain authority over a specific topic or skill is to simply document your experience through video.

Read the full interview ➜

-

David Civit Ferraro, founder of Agesem ($30K/month):

The future is the collaboration with autonomous entities that collaborate in the common good.

Read the full interview ➜

-

Ellie, founder of Money Therapy ($2.5K/month):

Consistency, reliability, and relationships. If you have these 3 things you have a very high likelihood that your business will be successful.

Read the full interview ➜

-

Write a Business Plan

Writing a business plan from the start is critical for the success of your financial advisor business.

Why?

Because this allows you to roadmap exactly what you do, what your overall structure will look like, and where you want to be in the future.

For many entrepreneurs, writing out the business plan helps validate their idea and decide whether or not they should move forward with starting the business.

You may want to consider expanding upon these sections in your business plan:

  • Executive Summary: Brief outline of your product, the market, and growth opportunities
  • Overviews and Objectives: Overview of your business, target customers, and what you need to run your business
  • Products and Services: Specifics on the products and services your business will provide
  • Market Opportunities: Analysis of customer demographics, buyer habits and if your product is in demand
  • Marketing: Outline of your marketing plan and how you plan to differentiate yourself from other customers
  • Competitive analysis: Analysis of your competition and the strengths and weaknesses therein
  • Operations: Hierarchal structure of the company and what it will take to run the business on the day-to-day
  • Leadership Team: Detailing roles and responsibilities of each manager based on their specific skill-set
  • Financial Analysis Understanding of all expenses, operating budgets, and projections for the future.

Learn more about how to write a business plan here

Determine Which Business Bank Account You Need

There are hundreds of banks out there, and it can be overwhelming to find one that's right for your business.

Here are some factors you may want to consider:

  • Location - Is your bank close enough that you can easily make deposits or get cash?
  • Low Fees - Make sure to understand any and all fees associated with setting up and maintaining your bank account. Ask for a list - banks usually try to keep this hidden and in the fine print.
  • Online Banking Services - Make sure you can easily navigate through your online portal and you have easy access to everything you need.
  • Line of Credit - What do your options look like (even if you don't need this now, you may need this down the road).
  • Every bank has something that differentiates them from the rest, so make sure whatever that is applied to your needs and values.

Check out this list of the 13 Best Banks for Small Business in 2020 and what makes them so unique.

Setting Up Your Financial Advisor Business (Formation and Legal)

When it comes to setting up your business, you may find yourself in a place where you have to make some financial and legal decisions.

The first thing you'll want to decide on is whether you want to be an LLC, S-Corp, or C-Corp.

These three options are found to be the most common when starting a small business, and all serve to protect your personal assets and also provide you with certain tax benefits.

  • LLC: All income and expenses from the business are reported on the LLC personal income tax return.
  • S corp: Owners pay themselves salaries + receive dividends from profits.
  • C Corp: C Corps are separately taxable entities that file a corporate tax return (Form 1120). No income tax is paid at the corporate level and any tax due is paid at the owners individual expense.

Depending on where you're conducting business, you'll also want to consider securing the proper permits, licenses and liability insurance.

Learn more about securing the right permits and licenses ➜

Need to start an LLC? Create an LLC in minutes with ZenBusiness.

How Do I Pay Myself As A Small Business Owner?

Most entrepreneurs start a business to do something they love- but at the end of the day, you still have bills to pay (maybe now more than ever).

But it's important to strike the right balance - if you pay yourself too much, you could be putting your business at risk.

There are two common ways to pay yourself as a business owner:

1. Owner's Draw

Many entrepreneurs pay themselves through an owner's draw. This means that you are technically sean as "self-employed" through the eyes of the IRS and are not paid through regular wages.

At the point that you collect money from the draw, taxes typically are not taken out - so make sure you are prepared to pay these taxes once you file your individual return.

As an owner who takes a draw, you can legally take out as much as you want from your equity.

This type of compensation is suited for Sole props, LLCs, and partnerships. If you’re an S corp, you can pay yourself through both a salary and draw if you choose.

2. Salary

If you decide to pay yourself a salary, you will receive a set and recurring amount. This will be taxed by the federal government and the state you reside in.

The reality is that it can be really complicated to set your own salary, so we have some tips for you to consider:

  • Take out a reasonable amount that allows you to live comfortably but also sets your business up for success
  • Consider the number of hours you are working weekly + the type of duties you are performing.
  • Set your salary based on your industry-standard, location, and profits (or projected profits)
  • Look at your P&L statement: Deduct your own pay from that amount. This is important so you can first tackle important business expenses, and then pay yourself from the amount leftover.
  • Pick a payroll schedule (and stick to it)! In the US, it's most common to pay yourself and employees twice a month.

https://media.giphy.com/media/xT0xeLTRncS90ptpfi/giphy.gif

To learn more about how to pay yourself and what is a reasonable amount, check out this article.

How To Price Your Financial Services

One of the most challenging aspects to starting a financial advisor business is determining how much to charge for your financial services.

When businesses under-price their product, this can be extremely detrimental to their bottom line and reputation.

Often times, businesses under-price their products to drive demand and volume, but that last thing you want is for customers to view your product/service as "cheap." Additionally, this can have a big impact on the type of customer you attract, which can be difficult to recover from.

On the other hand, when businesses over-price, this tends to be just as damaging to the business.

When customers buy, it's likely that they will explore the internet and look at other competitors to ensure they're getting the best value + deal. This is why it's so important that you research your competition and understand where you land in the marketplace.

Here are some factors to consider when pricing your product:

Understand your customer

It's important that out of the gates, you identify the type of customer you want to attract and how much they're willing to pay for your service. One great way to do this is by surveying your customers. Here are some important items you'll want to takeaway:

  • Customer demographic: Age, gender, location, etc.
  • Buying habits of your customer: What they buy + when they buy
  • Level of price sensitivity with your customer

All of these segments will help you identify the type of customer you're attracting and how to price your product accordingly.

Understand your costs

When pricing your financial services, it's critical that you first identify all of your costs and consequently mark up your financial services so you can factor in a profit.

The actual cost of your financial services may include things like:

  • The actual cost to make the product (ie. raw materials, supplies, manufacturer).
  • Shipping + overhead fees
  • Rent
  • Operating costs to run your business

You may want to consider creating a spreadsheet with every single expense involved in operating/owning your business. This will give you an idea as to what you need to generate in order to at the very least, break-even and will help you price your products to factor in a profit.

Create revenue goals

When determining the price of your financial services, you'll want to create goals for revenue + how much profit you want your financial advisor business to make.

This process is simpler than you may think:

  1. Think about your breakeven cost (by completing the above step).
  2. Create a revenue goal based on your break-even cost
  3. Evaluate the # of items you plan to sell in a given period (make sure this is a realistic number)
  4. Divide your revenue goal by the number of items you plan to sell

This figure will help determine your estimated price per product in order to meet your revenue goals.

Evaluate your competition

The last piece in determining how to price your financial services is by simply looking at your competition.

The best way to do this is by finding like-minded businesses that offer product(s) with similar perceived value. Then, you can compare prices of the different businesses and determine where your financial services fits best in the marketplace.

All of these factors play an equal part in pricing your financial services, so it's important you evaluate each one individually to come up with an accurate price that will help optimize your business from the start.

Rate Calculator: How to Calculate The Price For Your Financial Services Services

Our calculator is designed to be simple and easy to use.

The goal is to help you set realistic expectations and understand the hourly rate you should be charging to make your desired profit.

Please input below:

What Type Of Customers Will Buy Your Financial Services

It's important to first establish who you will be selling to, whether it's to businesses, consumers, or both!

Typically, in this industry, products are sold to both B2C markets and B2B markets

Let's break both of these down for your financial advisor business:

B2C

B2C (or business to consumer) is a transaction where businesses sell their products or services to the consumer directly.

In this market, consumer behavior is the primary driver for your business decisions - so it's important that you truly identify who your customer is, and what their buyer habits are when building your product/service.

The advantage

B2C is that you are able to cast a very wide net when targeting your customers. Your product may interest a large number of consumers or a specific niche.

The disadvantage

B2C is that consumers hold all the power - so if your website is not the most user friendly, or does not rank in the top search results on Google, chances are, your customer is going to shop elsewhere.

When building your financial advisor business for consumers, it's critical that you hone in on who your target audience is, and why they need your product over your competition.

B2B

B2B (or business to business) is a transaction where your financial advisor business sell's your product or service to other businesses to help them grow.

Business-to business industries typically includes SaaS products, B2B marketing firms, and other business supply companies.

Unlike B2C markets, the audience is not a consumer at all, but instead a business - so it's important to understand how to best market your product/services to that target audience.

With B2B, driving leads means understanding another company's business processes and creating a business strategy that will help their operation scale and grow.

Here are some tips to consider:

  • Your main focus when selling to other businesses is showing value to their business and overall return on investment
  • Focus on building relationships, rather than extending your brand awareness through social networks.
  • Marketing approach should include things like attending conventions, conferences, and optimizing your online presence (SEO, email outreach, etc)
  • Understand that the sales process may mean more effort educating your client, so it's important that you have a well-trained sales team that is knowledgable about the product

Identify Target Customer

A very critical piece in building financial advisor business is to identify your ideal target customer.

  • Develop a niche and create a consistent brand that reflects your target customer.
  • The colors, logo, content, and overall website should resonate with your target customer and should draw them in by helping them solve their specific "need".

Lydia Lee, founder of Screw The Cubicle identifies exactly the type of customer her services are curated for:

My core work focuses on helping corporate professionals transition their expertise and skills into an independent career where they choose a pathway like freelancing, consulting, and solopreneurship to earn a great living.

From self-guided courses like WorkReinvented to my 90 Day Launch program, the mission is to support passionate individuals to build the life they want with a business they can love.

Building an MVP (Minimal Viable Product)

When building a financial advisor business, it's critical that you first validate your product/service rather than rushing to build it right away.

This could save you months, if not years of building the wrong product/service.

If you're hoping to decrease any sort of risk that comes with launching your financial advisor business, designing a prototype can be a great way to de-risk your situation.

The point of your financial services prototype is that it doesn't have to be perfect.

In the beginning stages, it doesn't matter how rough V1 of your prototype is, it's more important to just get started and you can always refine from there based on feedback from your network and most importantly your customers.

How To Build A MVP

Here are several different ways of building a prototype/MVP:

  • Start by building a landing page to see if customers actually need your product and if they are willing to pay for it
  • Build a very basic version of your idea and ask for immediate feedback from potential customers
  • Present a problem and solution via Facebook/Instagram Ads and see what the response is like

Austin Belcak, founder of Cultivated Culture dives deep into the process of designing and prototyping their product:

I’d tried launching a bunch of products (which all failed) before my flagship course finally took off. The big difference was taking the time to validate up front.

I wanted to make sure people would buy what I was selling before investing time to create it.

I started by sending an email to my audience asking if anyone would be interested in beta testing a premium resource around job searching. That was my first point of validation, I wanted to see if people were even interested in the general idea.

After reaching a critical mass of replies (I aimed for 50), I used Google docs to create an outline of the course. It walked through:

  • Why it’s so hard to land jobs today (immediately addressing a pain point)
  • My story (qualifying myself)
  • Introduction of the course - what it is and what to expect
  • A module-by-module breakdown of what’s included-
  • Testimonials from people in the audience who had seen success
  • Pricing (with a 50% discount off the future “retail price” with a working payment link)

I also created a survey that asked people:

  • If they were interested in buying the course (yes/no)
  • What they loved about the course
  • What was missing from the course
  • What questions they had about the course
  • Then I replied to each interested person and asked them to read through the course outline and then fill out the survey.

Of the responses, I singled out people who said they would buy the course and encouraged them to pre-order using the payment link (offering a 50% discount and early beta access).

I read a lot about tiered pricing leading up to the course launch so I planned to launch with three sticker prices of $47, $147, $297. The first price was for a version of the course that allowed access to 2 out of the five modules. The second was for the full course, and the third was for the course along with a 30-minute coaching session.

Given the pre-order beta was an “MVP,” I only mentioned the middle price so it came in around $73 for beta users.

My goal was to get a 10%+ to sell-through rate. I had 50 people “interested” so I needed at least 5 buyers. I knew that if I could get 10% of people to put money down for something that didn’t exist yet, that was a good sign.

I ended up getting 20 pre-orders which validated the product and I spent the next two months building it!

Robert Harwood, founder of Harwood Financial Group dives deep into the process of designing and prototyping their product:

I was a full-time commercial airplane pilot, but I was almost never home and I decided it was time to change my career. Around that time, my father got sick and all my parents’ life savings were spent on medical bills. That experience made me want to help other people with their finances. I learned the business from the ground up. I already had a lot of knowledge about the financial field from previous job experience but had to learn more along the way. I also knew a financial advisor and he taught me a lot. The learning process took time and mistakes were made, but it was worth it!

I decided to help people with their finances with their retirement in mind. That has not changed over the years. We take on clients that have at least some money to invest and want to prepare for retirement. It doesn’t matter if they are young and have many more years to save money or if they are close to retirement. We help them put the best strategy in place to enjoy their retirement. A lot of our clients come to us although they already have a financial advisor. Getting a second opinion is always smart when it comes to planning your future. We present them with a strategy that makes sense for their future and sometimes that involves pointing things out that their current advisor has missed or didn’t advise them of. We offer complimentary first meetings, so potential clients don’t lose anything by getting a second opinion, but they might gain a lot.

The process is to create a detailed map of finances for a prospect and then a plan to get them to their financial goals. All prospects must meet with us three times, and each meeting has key objectives that must be met. If we cannot meet them or are missing information, we hold the meeting again until it’s done right.

We do this because of the responsibility we are taking on for our clients. Many of our clients are retirees or about to retire. The margin for error here is low. Therefore, we would rather do it right than rushed.

how-i-started-a-400k-month-financial-advisor-firm

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Robert Harwood, on starting Harwood Financial Group ($400,000/month) full story ➜

🚀 How To Launch Your Financial Advisor Business

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Build A Website

Building a website is imperative when launching your business, and with the right tools in place, this can be a simple task to check off the list (without having to hire someone).

  1. Pick a domain name that's easy to remember and easy to type
  2. Choose a Web Hosting Plan (ie. Shopify, Squarespace)
  3. Make sure you choose the right theme and design
  4. Implement the proper page structure (ie. about page, contact page, pricing etc)

To learn more about how to build a stellar website with little stress, we give you all the details on this step-by-step guide.

Best Website Platforms To Use For Your Financial Advisor Business:

There are a variety of websites platforms out there, and it's important to choose the right one that will set you up for success.

Here's everything you need to know about the two most common platforms for your financial advisor business:

WordPress

Free and open-source content management system based on PHP and MySQL.

Free to use/open source but you will need to pay for the hosting.

Businesses using WordPress:

348 successful businesses are using WordPress ➜

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Get WordPress ➜

Squarespace

The all-in-one solution for anyone looking to create a beautiful website.

  • Personal Plan: $12/month
  • Business Plan: $18/month
  • Basic: $26/month
  • Advanced: $40/month

  • Pricing: Freemium

  • Twitter: @squarespace

  • Website: squarespace.com

Businesses using Squarespace:

70 successful businesses are using Squarespace ➜

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Get Squarespace ➜

Web Design

Once you have chosen the domain, web hosting, and platform, it's time to get started with the design phase.

Themes are a great way to produce the fundamental style and identity of your website - this includes everything from your font design to your blog post styles.

One of the best ways to get started is to simply explore the various themes (free or paid depending on what you're looking for) and test them on your site.

If web-design really isn't in the cards for you, you may want to consider outsourcing a web designer to help bring your vision and brand to life.

Traditional Launch Strategies For Your Financial Advisor Business:

There are various different ways you can launch your financial advisor business successfully.

Here are a few different strategies to get customers excited about your financial advisor business:

  • Set up a Facebook page for your business. This is a great way to establish an online presence
  • Host an event in a fun location with drinks & food. This is a great way to get exposure in the local community.
  • Get Press! Pitch your story to the media and you may just land in an amazing publication
  • Live sales to get customers excited
  • Send a hand-written letter in the mail with a discount on your services to the local community/neighborhoods.

Conor Delaney, founder of The Good Life Companies dives deep into the process of launching the business:

We are in a unique industry where we could not inform clients, colleagues, or managers we were going to be leaving our prior firm to start our own. My wife was seven months pregnant and my partner, Courtnie, was four months pregnant. We took our spouses out to dinner and told them we would be leaving the firm we started and built a successful practice in order to launch our own dream.

With their support, we did a significant amount of due diligence to find a custodial partner that would allow us to scale the business as we grew.

The entire launch of our business was self- funded. We searched for office space, furnished the space, and outfitted the office with the necessary technology to launch the business. With two babies on the way, we really had no time to waste or any room for error transitioning our clients over.

On February 2, 2012, we made the move to our new custodian, and Good Life was born. We furiously began calling and seeing as many clients as possible, all while prior colleagues were contacting our clients giving them incorrect information about our departure. We worked from very early in the morning seeing clients before their workday, late into the evening.

In just five weeks we were able to move around 500 accounts over to the new firm.

Once the transition was complete, we felt a personal obligation to share our experience and expertise with other advisors who found themselves trapped in a firm that no longer embodied the beliefs they had professionally and personally. When a firm is dictating the client experience which does not align with your core values, it makes it difficult to stay working with that firm.

During our first few years, our team found ourselves wearing nearly every hat as a business owner along with being a financial advisor to our clients. From being the portfolio designer to the technology department to managing the accounting, and overseeing the services we needed to run the office, we knew we had to invest our resources back into adding key personnel and professional partners who could support our mission.

Once we laid out all the internal procedures for setting up and running the office, we began significant marketing efforts along with partnering with recruiters who could help us quickly grow our advisor base.

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Conor Delaney, on starting The Good Life Companies ($2,000,000/month) full story ➜

🌱 How To Grow Your Financial Advisor Business

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Social Media Advertising

Social Media Advertising is one of the leading ways to get the word out when it comes to financial advisor business.

There are various different Social Media platforms available to you. Some may be more critical for your marketing efforts than others, however, it's important to have an understanding of what's out there and available to you.

Let's talk about a few of the main platforms and what makes them unique:

  • Facebook Advertising - more than 2 billion monthly users. Facebook is the best for lead generation + capturing email addresses for e-commerce businesses.
  • Instagram Advertising - approximately 500 million monthly users and has a higher audience engagement rate than any other platform. Instagram ads are best for linking to a product page or landing page and reaches the 18-29 age group most effectively.
  • Twitter Advertising- Small businesses typically use twitter ads to drive brand awareness, but the platform is meant more for organic engagement (and is not as heavily used for paid advertising)
  • Pinterest Advertising - 175 million monthly users and most effectively reaches the female audience. Pinterest is great for promoting products without "promoted". The promoted pins have a way of blending right in.
  • LinkedIn Advertising - 227 million monthly users and is geared towards the B2B market and generates the highest quality leads. Great platform for recruiters, high-end products and services that will help businesses

It's important to first define your goal/objective so that you don't waste time and money into the wrong platform:

Here are some different questions to ask yourself as it relates to your goals:

  • Do I want to simply drive brand awareness?
  • Do I want to drive users to my website to gather information?
  • Do I want to increase sales and get my customer to take action?

From there, choose the platform that targets your audience best and start experimenting!

Learn more about social media advertising ➜ here.

Founder Andy Hayes talks about mastering FB ads and the pixel:

The biggest bang for your buck will likely be mastering Facebook and it’s platform - which we all know is pay for play, so you’ll have to come up with a small amount of budget to start for marketing.

We’ve spent countless hours (and paid numerous coaches) before we cracked the code that works for us on Facebook, but it is working really well for us now.

Some of the most important things to know when it comes to FB Ads:

  • Start with retargeting (that’s showing ads to people who already know you but did not purchase). Master this - and start building information on your Facebook Pixel - before you do anything else
  • Once you have that down, try working with the 1% “Lookalike” audience to prospect for new customers. This may take awhile because your pixel audience is small, so try layering on interests - 1% Lookalike and your largest competitor, for example. Don’t use interest-only targeting until you master this.
  • Great photography and videography is key, as is smart copy. Research what’s out there in your industry and constantly test - what works for one company may not work for other people.
  • Make sure you have good offers. For example, we have a $5 trial for our subscription, which converts affordably - if we promoted our subscription with the standard $30 front charge, it wouldn’t be as cost-effective.
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Andy Hayes, on starting Plum Deluxe Tea ($75,000/month) full story ➜

Grow Your Email List

The more engaged list of emails, the more engaged customers, which ultimately leads to more sales.

One of the best ways to start growing your list is by providing your customer with something free (or discounted) in return.

This could also be anything from:

  • Ebook
  • Fascinating case study
  • Video series
  • Free week of the product
  • Discount on the product

Learn more about how to grow your email list and improve email marketing ➜ here.

Dylan Jacob, founder of Brumate states their email collection tactic that is proven to work:

We use Spin-a-Sale for this (you spin a wheel for a discount code in exchange for subscribing to our email list). This has been the best email-collecting tool we have found because the customer truly feels like they won a prize rather than just a coupon code.

Even if a customer doesn’t convert right away, if we have their email we have a 19% chance of converting them into a future customer whether that is through future promotions, new releases, or simply just sending an email at the right time for a purchase to finally make sense for them.

We also have a return customer rate of over 14%, so one out of every 6 people we convert will end up buying from us again with an average order value of over $60.00.

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Dylan Jacob, on starting BrüMate ($12,000,000/month) full story ➜

Add an exit-intent popup to your online store

A great way to double, or even triple, your email opt-in rate and to grow your list is to add an exit-intent popup to your site, and offering a discount or content upgrade for subscribers.

Here's an example of what that might look like:

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One thing that I spent years NOT doing, that I now kick myself about, is adding an "exit intent pop-up" to our site, which lets people enter a sweepstakes to win a Xero Shoes gift certificate.

That one idea has added over 100,000 subscribers to our email list, which is one of our most effective marketing channels.

-  
Steven Sashen, on starting Xero Shoes ($1,500,000/month) full story ➜

Improve Your Email Marketing

Different types of emails

Here are the most common types of email campaigns you can send to your customers and their benefits:

  • Welcome emails - the perfect way to provide information from the start with a clear CTA. Make sure to tell your customer everything they need to know about your product or service.
  • Newsletters - a great way to give customers updates or send out your latest content
  • Product launch emails - the quickest (and easiest) way to increase sales is by selling to current customers. Make sure they're the first on the list to know about your new product
  • Promotional emails - promote discounts, deals coupons etc. Try and make this feel exclusive and for a limited time only
  • Abandoned cart emails - give your customers a reason to complete their purchase!

Here's a great resource for finding curated email designs, for all types of email campaigns!

Abandonded Cart Flow

The abandoned cart workflow is one of the most effective strategies for turning your lead into a customer, and a powerful tool to have if you're an e-commerce business.

Think about all the times that you went on a shopping frenzy only to add items to your cart and then either forget or realize nows not the right time to pull the trigger.

Then, minutes later you receive an email saying "Hurry up! Your cart is waiting - and we want to provide you with 20% off your order."

Maybe that's the special touch (and discount) you needed to pull that trigger.

Implementing this workflow can automatically trigger this for your business every time a customer abandons their cart.

Here's a great example of an abandoned cart email from Brooklinen:

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Things they do well:

  • Showcase 5-star reviews from other customers
  • Offer a small discount + free shipping
  • Great design + clear call to actions!

Improve your SEO

SEO is not just about driving traffic to your site, it's about driving the RIGHT traffic to your site, and ultimately, converting leads into customers.

One of the most important aspects of SEO is understanding what your customers are searching for, otherwise known as "keyword research."

Here are some tools that can help you choose the right keywords for your financial advisor business.

Publish Great Content

Finding keywords is an important piece of the puzzle, but Google also ranks your site based on the actual content you produce, as this is what your customers are reading and engaging with.

There are various different "forms" of content that you may want to consider diversifying on your sites, such as blog posts, articles, studies, and videos.

So let's discuss what google considers "good content:"

  • Length - This will vary depending on the page, however, generally having a sufficient amount of content helps search engines recognize that your site is a good source for a specific topic
  • Engagement - The longer people stay on your website to read your content, the higher Google will rank your website. It's important to have informative and "thick" content that keeps people reading
  • Avoid Duplicating Content - Google will recognize this and may consider your content to have low value
  • Ensure pages load quickly - This will also help with engagement and time spent on your website
  • Shareability - Create content that people want to share, and is easy for them to share, especially to their social media accounts (ie. "click to tweet" is a great example of this).

Another element of creating good content is creating consistent content.

If (and hopefully you are) publishing content frequently, it's important to stick to a schedule - this helps build brand trust and easy user experience with your customers.

Planning out your content with a content calendar is key to staying consistent.

Here are a few great content calendar tools that can help you:

  • Trello
  • Airtable
  • If you prefer to keep it simple, your average spreadsheet is just as useful!

Backlinks

Backlinks are an important piece to SEO, as they allow for other websites to link to your content.

Search engines recognize that other sites are essentially "verifying" your content and essentially rank you higher because of this.

Of course, some links are more valuable than others and can affect your site in different ways.

For example, if a highly valuable and credible site like the New York Times links to a page on your website, this could be remarkable from an SEO perspective.

Aside from organically getting mentioned from other sites, there are other ways that you can increase and earn backlinks:

  • Create infographics with relevant data that people want to share
  • Promote your content on different sites/look into "guest blogging"
  • Contact influencers/journalists/bloggers and ask them to mention you!
  • Write testimonials for other sites in exchange for a backlink
  • Leverage existing business relationships

Learn more about the fundamentals of SEO ➜ here and check out Neil Patel's 3 Powerful SEO Tips below

Build A Blog

One of the most effective ways to build brand awareness and grow your business is through consistently blogging.

We've outlined some useful tips for you to consider when creating content:

Consistency and Quantity

Quality is important, but it should be the standard for any content you publish.

What’s more important is consistency and quantity.

Consistency is as simple as committing to publishing and sharing a certain number of posts per week. For me, that’s three per week right now.

This kind of commitment is key, because one day, a random post will blow up, and you will have never expected it.

Oversaturation

The easiest mind trap is to think "I’m posting too much", and “I need to give my readers/audience/this platform a break”.

This is nonsense.

There is no such thing as oversaturation. Well, there is, but it is just someone else’s opinion.

For every person that tells you you are posting too much, there is another person that wants even more of your content.

You should ignore people’s opinions on how much you post.

Patience & Persistence

Keep posting, keep trying, and keep putting out good content on the regular. Your time will come, and when it does, it will change everything.

The only thing you have control over is your content.

You can’t control how people will react to it. You can’t control pageviews, likes, or shares.

So the only metric you should focus on is how much content you can put out in a week, month, etc.

Where to share your blog content

Mailing List

I know it sounds obvious, but the best places to share your content is on your mailing list. It is guaranteed traffic and it is a great way to get rapid feedback from your most loyal readers.

Send newsletters often. I have done once a week since starting, and I’m moving to twice a week soon.

Work on increasing your mailing list as well. Look into ways to increase your conversion rate to your mailing list. I added a flyout popup thing to my site and now I’m collecting ~30 emails per day.

An email newsletter is one of the most powerful assets you can have and it is worth its weight in gold.

Reddit

Reddit is one of my favorite places to promote content.

It is a very scary place because you will often get banned or heckled, but it can really pay off.

Create social media accounts for your blog, the main ones I use:

Twitter Facebook Instagram LinkedIn

Set up Buffer and share all of your blog posts to all of your accounts. All of these little shares really do add up.

Automate this as much as possible. I automated all of my social media for Starter Story.

Facebook Groups

When I started out, I put together a spreadsheet of relevant Facebook groups for my niche, and I would post to these groups whenever I had a big story I wanted to share.

Experiment With Pay Per Click Ads (PPC)

Pay-per-click (PPC) is a performance-based marketing method that allows you to show specific ads for services or products oriented to a very defined target, with the goal that the user visits your website or landing page.

Here are some tips to consider:

  • Consider connecting the ad to your corresponding landing page so that the audience receives the necessary information after clicking on the ad.
  • Conversion Tracking: When running PPC campaigns, be sure to run the ads with conversion tracking.
  • Focus on quality keywords, even if there are few as this will save you time and money. When assessing the performance of a keyword, it's important to track the expense, conversion, and cost per conversion, as well as the ROI.

PPC advertising can be a very important lead generator as long as it's done properly. Your PPC campaign is intended to drive traffic to your website and help the business scale.

Additionally, if the campaign is not having the desired results, you can make the necessary changes immediately to improve them.

Ryan Schortmann, founder of Display Pros talks about their investment in PPC Ads:

My name is Ryan Schortmann and I’m the founder of Display Pros. We are a custom trade show display booth company offering easy to use portable display “kits” for small and medium businesses wanting to get into the trade show game.

It did not take long to come to the realization that to compete at any reasonable level, we were going to need to take the plunge and invest in Pay Per Click ads and display.

From experience, I know that it is important to give Google’s hivemind some time to settle in before each campaign starts seeing consistent results (this is largely dependent on budget).

A certain amount of PPC budget must be viewed as a “marketing research” expense and then you can look at the analytics data and make informed decisions on where to refine, tweak or plain scrap an idea.

Google Shopping was an entirely new concept for me. You can’t assign keywords to products so at first, I was asking myself “How the hell do you refine these?”. Then I found some good reading material and courses and learned of some advanced methods that the pros are using. It turns out you can utilize negative keyword lists combined with the priority setting on each shopping campaign to “shape” the keywords that are coming in and how much you are spending on them.

To learn more about PPC Ads and Google Shopping, check out this video to learn everything you need to know!

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Ryan Schortmann, on starting Display Pros ($30,000/month) full story ➜

Build A Facebook Community

Building a community is a great way to grow your network and your business.

There are several different ways of building a community, one of the most effective (and simplest) ways is to build a Facebook group

Setting up the group page takes less than 10 minutes, and we've outlined ways the top 5 ways to create an engaging and successful group:

  • Make the group exclusive. This may sound counter-intuitive, however, this ensures privacy and that the group will feel comfortable posting and engaging with members.
  • Try to be warm and welcoming. A great way to do this is by having a "Member Monday" where you welcome new members and ask them to introduce themselves in the group
  • Use polls/surveys. This is a great way to know your audience and see what people want more of in the group (more business tips, networking opportunities, etc).
  • Include influential people & conduct AMA's (ask me anything). This is a great way to get members engaged
  • Host an in-person (or virtual) event with members in the group. This will create stronger relationships and build a strong community.

Mike Doehla, founder of Stronger U, an online nutrition company noticed that his customers needed a little motivation and sense of community:

Most diets are lonely so we wanted to give support and a community.

I think many people fail diets because there is no one to talk to and no accountability.

You can by a book, or google a meal plan but who’s going to keep you on track? We will. The entire SU community.

We give our members access for life to our Facebook community filled with people around the world who are looking out for everyone’s success.

Most diets make up arbitrary rules and we thought they just didn’t make sense. Meal timing, Cutting carbs, butter in coffee, sugar being the devil? Ehh no need to overthink that stuff.

We’ll give you the science behind of what we do and show you what actually matters based on real research.

Luckily we have a PhD at our disposal to educate our staff and members so everyone is getting the most up to date information out there.

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Mike Doehla, on starting Stronger U ($500,000/month) full story ➜

🏃🏼‍♀️ How To Run Your Financial Advisor Business

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How To Retain Customers For Your Financial Advisor Business

Retaining customers is one of the most effective ways to grow your financial advisor business.

Oftentimes, it's easy to find yourself focusing on generating new customers, vs retaining your current ones.

Look at it this way - you are 60-70% more likely to sell a new product to an existing customer than you are a new customer.

That's not to say that finding new customers and revenue streams is not important, however, the easiest (and most inexpensive) source of new revenue is right there in front of you.

Here are some ways you can retain customers for your financial advisor business:

  • Responding to comments on social media
  • Send discounts (or freebies) to loyal customers
  • Provide valuable content, for free
  • Write a hand written thank you note
  • Provide awesome customer service and build relationships with customers

To find out more tips and tricks on retaining customers, check out this article ➜ here

Conor Delaney, founder of The Good Life Companies dives deep into the process of attracting and retaining customers:

In order to attract advisors, we developed several different services that allowed them to an affiliate in many different ways. We have been very nimble and creative to close business, instead of trying to force advisors to fit into a “one size fits all model”.

In the beginning, we only took on advisors who needed help transitioning. We then made a pivot and took on advisors who also needed real estate. Due to regulations and complexities of not being a formalized Registered Investment Advisors, the first couple of years we mainly were a service organization.

Once we had enough advisors and revenue coming in from the service organization, we then filed with the SEC (Securities and Exchange Commission) to become a federally Registered Investment Advisor (RIA). Being an RIA increases the firm value significantly while forming an even tighter allegiance with our advisors. It also allowed advisors to affiliate with us for RIA or compliance purposes and tap into some of our services we offer that did not include real estate. It allowed us to be more of an a la carte RIA and allowed us to increase our potential advisor base.

Some advisors want to assume their own real estate expense or perhaps work from home. In the old model before becoming an RIA, there was no need for Good Life. By developing the RIA and subsequent services, we have been able to take “no” off the table.

Marketing is the key to any successful business. Like any other “start-up” it requires patience, testing, failing, and re-evaluating which can be costly. In the beginning, everything is more or less an experiment, especially when you are disrupting an industry the way we have. Our team has gone through several iterations of websites and technology tools paired with marketing strategies. Through all of this, we learned a lot and had some expensive projects we implemented that were ultimately not working the way we had planned. We are in a very fast-paced, ever-changing industry.

Good Life is always focused on innovating to stay ahead of our competition. This includes launching new services, restructuring our pricing, developing new marketing techniques internally as a firm, and for our advisor base, along with shifting our focus from being a compliance firm to being a service organization that strives to meet all identifiable needs for our advisors. Listening to the needs of our advisors along with following where they are spending their hard-earned dollars to support their own practice has allowed us to continuously increase our revenues year over year.

One of the biggest attractions locally, which also allowed for significant personnel expansion, was the construction of our headquarters. Due to the unique design and build-out of our corporate headquarters, several local and national publications picked up our story. This has given a significant presence to the local advisors in our home office to gain retail business. In addition, it has allowed our team the ability to grow by hiring additional team members in each department. By adding additional team members, we have been able to expand our service offering and support additional advisors.

We have several legs in our marketing strategy. One of those includes referrals from existing advisors. When they have a good experience with our firm, they share that experience with their former colleagues. We also have several recruiting relationships with recruiters whose sole purpose is to recruit financial advisors to our organization. Good Life has its own business development team and we are organically cultivating our own leads to recruit financial advisors.

Our business development team heavily uses LinkedIn and Facebook to share our stories and our culture. We have a tight allegiance with a local PR firm that has helped us share our success in bringing advisors over, along with sharing the story of our rapid growth.

Good Life recently engaged with a second public relations firm to generate interview opportunities with large media outlets including television and print publications. Due to our significant growth, Good Life was named on several lists of Fastest Growing Companies Nationwide including Financial Times, Inc 5000, and many local publications such as the Philadelphia Business Journal. All of these strategies have helped boost Good Life in becoming a leader in the industry and a true disrupter in our marketplace.

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Conor Delaney, on starting The Good Life Companies ($2,000,000/month) full story ➜

Diversify Your Product Line

Adding new products to your business is a great way to expand into new markets and grow your business.

It's important to note that adding new products and diversifying may not be in the cards for you right this moment, and that's okay. You can always consider it down the road.

Here are some reasons you may want to considering adding/diversifying your product

  • Meeting the needs of your customers
  • Establish yourself as a top provider in your industry and stay ahead of the game with competition
  • Resistance to downturns/trends fading
  • Create new revenue streams

How To Crush The Sales Process For Your Financial Advisor Business

You may find yourself in a spot where you're ready to hire a few (or many) salespeople to support the sales conversion process.

Regardless if you have one or thirty salespeople, it's critical that you assign them specific roles and responsibilities to nurture the client and provide excellent support.

Mike Korba, co-founder of User.Com walks us through the entire sales process and which teams are responsible for what:

User.com Sales Process

Each user and account is qualified with a specialist. For business leads, they are handled by the sales team, and if they are qualified we give them a demo, more than often at the end of their fourteen-day trial. If they’re happy they’ll add a payment, and get an account manager, so a customer support and success team who will help implement the solution and to use the technology.

Sometimes, users will convert naturally on their own, after using the freemium product and finding it to be something that they will find beneficial.

After they convert, we help with onboarding, give them some personalized tips for their specific business or industry to grow plus all kinds of support, for whatever they need - something we take huge pride in.

The team is right now more than 30 people, with more than half working on the IT and product side, and the rest are in three teams: Support, Marketing, and Sales who all work together very closely.

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Mike Korba, on starting User.com ($100,000/month) full story ➜

Word of Mouth

The most tried and true way to grow a financial advisor business is through word of mouth - some entrepreneurs would say it's more important than all social media.

Why you should focus on word of mouth:

  • Consumers trust word of mouth above all other forms of marketing
  • 92% of consumers believe recommendations from friends and family over all forms of advertising
  • 64% of marketing executives indicated that they believe it is the most effective form of marketing

Learn more about word of mouth in our guide: 30 Ways Founders Grow Their Business ➜

Build a Referral Program

Word of mouth is one of the best ways to get the word out about your business and acquire new customers. Especially when you are starting out, it’s important to build a solid referral program to encourage existing customers to help you find new ones.

A great way to do that is by offering a reward (ie. credit on your service or cash) to customers that refer you to their friends and family.

A fantastic referral program will help with clout, credibility, and establishing yourself in the space.

Resources

We put together the best resources on the internet to help you start your financial advisor business.

Tools

Books

Web Resources

Videos

Case Studies

Pat Walls,  Founder of Starter Story

Want to start your own business?

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