Office Space Expenses

$0

$7,000

Employee & Freelancer Expenses

$151

$352

Website Costs

$223

$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

Total Startup Costs

$1,136

$25,886

Fidelity Investments

fidelity.com

363

Contrarian Thinking

contrarianthinking.co

560

Adam Mancini's S&P 500 (SPX/ES Futures) Trade Companion

tradecompanion.substack.com

572

Petition

https://petition.substack.com/about

572

Tic Toc Newsletter

tictoctrading.substack.com

572

SEC.gov

sec.gov

3,454

finra

finra.org

15,799

First Round Capital

firstround.com

25,832

FE International

feinternational.com

30,303

OpenView Venture Partners

openviewpartners.com

31,320

Independent Advisor Services, RIA Custodian

tdainstitutional.com

48,208

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.

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.