We know that starting your own financial advice firm is super exciting, but taking the leap from employed to self-employed can be just a little bit scary.
A successful business is within reach, but unfortunately it doesn’t just happen overnight – or by accident. Careful planning, clear positioning and strong operational foundations can be the difference between a financial advice firm that flops, and one that’s built to last.
Starting your own business gives you the freedom to shape your own client experience, build a brand you believe in and create long-term value, but how do you get there?
We have 5 top tips for how to start an advice firm:
Plus, a final bonus tip fledgling advice firms are turning to more and more. Let’s dive in!
One of the biggest mistakes that new financial advice firms make is trying to attract everyone. This can make your service proposition and marketing strategies vague and ultimately reduce the number of people that engage with your advice firm.
The most successful financial advice firms focus on a specific target audience or area of expertise to differentiate themselves from competitors. To start to narrow it down, ask yourself:
Once you’ve answered these questions, you’ll start to form a clearer picture of your niche and ideal clients. Examples include ‘financial planning for legal professionals’, ‘retirement planning for business owners’ and 'investment advice for young professionals'.
A clear niche will help you stand out from the crowd as your client proposition will be directly targeted towards your niche meaning better client outcomes (extremely important under Consumer Duty), and your marketing will be more effective when aimed directly towards your target audience.
When you start your financial advice firm, you’re starting a business. A solid, clear business plan will help you to stay focussed on what matters in the short-term and make better decisions as you grow.
Your business plan should (at minimum) include the following:
Even if your business plan is flexible and evolves over time, a solid roadmap will give you the confidence and clear direction in the early stages of running your own advice firm.
When you’ve just started up your own financial advice firm (and likely working solo!), technology can make or break the efficiency of your business. Choosing the right tools will allow you to deliver a better financial planning service, remain compliant and free up more time to focus on your clients.
Key technologies include:
Make sure you understand the capabilities (and limitations) of each piece of software (including how they manage regulatory changes) and how they can scale alongside your own business. Your tech set-up can be one of the easier parts of setting up your own firm if you seek the right support. Don’t forget to check out case studies and reviews from other financial advice firms for some down-to-earth feedback when selecting your tech!
This can be a time-consuming process, but by getting your technology choices right from day one, you’ll avoid a series of operational headaches later down the line.
When starting a new financial advice firm, trust is key. Your clients aren’t just buying a product or service, they’re trusting you with important life decisions and their financial future - not just to manage their money and investments.
To build strong client relationships and trust, you can:
Happy clients often lead to an increase in word of mouth referrals, one of the most effective ways to build up your client bank.
Even the best financial advisers struggle without visibility. A clear, structured marketing plan will help you to attract and retain clients, ultimately growing your financial advice business.
Your marketing strategy may include:
When it comes to marketing a financial advice firm, consistency is more important than complexity. A steady stream of useful content and helpful insights will position you as an expert in your niche.
Our New Business programmes support advisers looking to launch their own financial advice firm. Run by industry experts, they include guidance on FCA requirements, creating your business model and even providing office space and additional resource if required.
If you’re thinking of starting your own financial advice firm but need an expert look at the what, why and how of getting started, then our ready? bootcamp is for you.
If you’ve just applied to start or recently opened your own advice firm (either directly authorised or appointed representative), our steady... programme provides the training, resources and operational support to help you get your new financial advice firm steady and structured.
The early stages of starting your own firm will naturally be challenging. Starting your business takes courage, planning and determination. But, with the right foundations and support, the successful financial advice firm you dreamed of when you were stuck on the corporate ladder might not be as far away as you think.
