Business Idea

Start A Financial Advisor Business

About

Starting a financial advisor business requires a great deal of effort, dedication, and most importantly passion.

If you're interested in how to sell financial services, or selling financial services online, you can use this page as a guide for everything you'll need to know.

Want to learn more? You can check out our full guide on how to start a financial advisor business ➜

Key stats

market size
$57.2B
revenue (monthly)
$491K
starting costs
$27K
gross margin
13%
avg product price
$2000
time to build
12 months
growth
Word of mouth
business model
Consulting
time investment
Side project

About

Starting a financial advisor business requires a great deal of effort, dedication, and most importantly passion.

If you're interested in how to sell financial services, or selling financial services online, you can use this page as a guide for everything you'll need to know.

Want to learn more? You can check out our full guide on how to start a financial advisor business ➜

Key stats

market size
$57.2B
revenue (monthly)
$491K
starting costs
$27K
gross margin
13%
avg product price
$2000

 

time to build
12 months
growth
Word of mouth
business model
Consulting
time investment
Side project

Startup Costs

Min Startup Costs Max Startup Costs
Office Space Expenses $10 $2,250
Employee & Freelancer Expenses $0 $5,500
Equipment & Supply Expenses $500 $5,000
Website Costs $232 $6,500
Business Formation Fees $5,600 $20,400
Training & Education Expenses $0 $1,000
Software Expenses $162 $3,094
Advertising & Marketing Costs $0 $2,250
Other Expenses $0 $500
Total Startup Costs $6,504 $46,494

Successful Businesses

Business URL Rank
Edward Jones edwardjones.com #14,865
Merrill Edge merrilledge.com #17,172
Investing Services, Financial Advisors wellsfargoadvisors.com #37,493
TimeTap: Enterprise grade schedule for businesses timetap.com #61,231
AXA.com axa.com #140,454
StoneX stonex.com #157,395
Ameriprise Advisors ameripriseadvisors.com #165,823
International Livestock Research Institute ilri.org #171,648
CFP Board cfp.net #178,723
DWS dws.com #228,475
TPG tpg.com #252,628

Pros & Cons

Pros Description
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.
Cons Description
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.

Marketing Ideas

  • 1

    Affiliate program

    Affiliate marketing is a great way to bring in a new revenue stream, especially when you don't sell products or services.

    Simply put, an affiliate program is an agreement where a business pays another business or influencer ("the affiliate") a commission for sending traffic and/or sales their way.

    The affiliate typically gets a unique link where clicks and conversions can be tracked.

  • 2

    Direct sales

    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.

  • 3

    Word of mouth

    Word of mouth is when a consumers reflects their interest in a company’s product or service in their daily dialogues.

    Therefore, word of mouth advertising is essentially a free advertising triggered by the customers experience.

    According to Nielsen, 92% of people trust recommendations from friends and family.

    Therefore, in today’s hyper-connected world, a single recommendation through a word of mouth can have a huge impact to your business.