Business Idea

Start An Investment Advisory Business

About

Starting an investment advisory business requires a great deal of effort, dedication, and most importantly passion.

If you're interested in how to sell investment advisory, or selling investment advisory 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 an investment advisory business ➜

Key stats

market size
$93.8T
starting costs
$16.9K
gross margin
25%
avg product price
$250
time to build
9 months
growth
SEO
time investment
Side project
work from home?
Yes

About

Starting an investment advisory business requires a great deal of effort, dedication, and most importantly passion.

If you're interested in how to sell investment advisory, or selling investment advisory 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 an investment advisory business ➜

Key stats

market size
$93.8T
starting costs
$16.9K
gross margin
25%
avg product price
$250

 

time to build
9 months
growth
SEO
time investment
Side project
work from home?
Yes

Startup Costs

Min Startup Costs Max Startup Costs
Office Space Expenses $750 $7,000
Employee & Freelancer Expenses $151 $352
Equipment & Supply Expenses $500 $5,000
Website Costs $303 $7,215
Business Formation Fees $600 $4,700
Software Expenses $162 $3,069
Advertising & Marketing Costs $0 $2,550
Training & Education Expenses $0 $1,000
Other Expenses $0 $800
Total Startup Costs $2,466 $31,686

Successful Businesses

Business URL Rank
SEC.gov sec.gov #3,454
finra finra.org #15,799
Independent Advisor Services, RIA Custodian tdainstitutional.com #48,208
InvestmentNews investmentnews.com #77,285
ICI ici.org #335,484
Stout stout.com #433,777
Brown Advisory Incorporated brownadvisory.com #505,448
Parametric Portfolio Associates parametricportfolio.com #542,841
Investment Adviser Registration Depository iard.com #847,370
Adviser Investments adviserinvestments.com #1,400,545
Ivy Investments ivyinvestments.com #1,430,986

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!
Meaningful business connections You never know who you will meet as a investment advisory 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.
Pick & choose the clients you work with Investment Advisory Businesses have the ability to choose the clients they work with. You have the freedom to work with only a few loyal clients or with hundreds of clients!
Control of workload With starting an investment advisory business, you have the unique ability to choose how little or how much you want to work. You also have the freedom to decide which projects you want to work on, and can turn down the ones that do not interest you.
Cons Description
Motivation of employees If you plan to have a sales/content team on board, finding creative ways to motivate them can be a challenge. It's important that you're able to offer great incentives and a good work environment for your employees.
Low margins The gross margins for your investment advisory business are typically around 25%, which can make it more challenging to incur new expenses and maintain profitability.
Niche Market A niche business is not necessarily a bad thing, in fact, it can be the key to your success. However, it can be more challenging and time consuming to find the perfect niche market and target audience.
High overhead expenses With starting an investment advisory business, there are overhead expenses that come with selling a physical product. You will want to make sure you strategically budget for these overhead costs. We discuss this more in the startup costs section below.
Churn In this business, customers can cancel their membership or subscription for your services - which can make revenue forecasting challenging and unpredictable. It's important to focus on your churn rates and trends so that you can prevent this as much as possible.
Time commitment With starting an investment advisory 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.

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

    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.

  • 3

    Social Media Advertising

    Social media advertising is the use of social media platforms to connect with your audience with the objective to build your brand, increase sales, and drive website traffic.

    According to Oberlo, approximately 48% of the global population use social media, and the number is ever-growing.

    Therefore, social media allows brands access to cost-effective advertising by enabling them to interact with a large audience.

    Learn more about social media advertising ➜