Pros & Cons

Start A Financial Advisor Business

Pros & Cons

Trying to understand the pros and cons of starting a financial advisor business?

Here are all of the pros and cons of selling financial services online:

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.
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 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.
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.