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 ➜
|Min Startup Costs||Max Startup Costs|
|Office Space Expenses||$35||$3,250|
|Employee & Freelancer Expenses||$0||$5,500|
|Equipment & Supply Expenses||$500||$5,000|
|Business Formation Fees||$600||$4,700|
|Advertising & Marketing Costs||$0||$2,550|
|Training & Education Expenses||$0||$1,000|
|Total Startup Costs||$1,517||$32,319|
|Independent Advisor Services, RIA Custodian||tdainstitutional.com||#48,208|
|Welcome to the Investment Adviser Registration Depository||iard.com||#847,370|
|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.|
An affiliate program is a way to reward people outside your organization to share your product.
The most tried and true way to grow a investment advisory business is through word of mouth - some entrepreneurs would say it's more important than all social media.
Social media advertising is one of the leading ways to get the word out when it comes to investment advisory 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.