You are a degree qualified adviser with CFP designation, you may have spent some time as a paraplanner and then progressed to seeing clients and are gaining confidence in that role. Congratulations you are the epitome of the new age financial planner as described by ASIC.
As it happens, you are on the cusp of a great opportunity in the industry of your choice as there are many older financial planners who are looking to exit their business and enter retirement before they are forced into another round of new changes.
What you need to start your own business
Starting your own business can be a frightening and frustrating experience but ultimately very rewarding as it all comes together and you never have to worry about bosses you don’t like or the threat of retrenchment as you get older.
If you are not about to be offered equity in the business you currently work in then your options are as follows:
- Build a centre of influence: if you can find an accountant, mortgage broker, solicitor or some other way of getting introduced to a steady stream of potential clients then you are off to a great start. Usually this will involve a joint venture agreement and a revenue share to the centre of influence. However they may also offer you office space and access to some support staff as part of the deal.
- Purchase an existing business: businesses for sale usually belong to older planners who are ready to retire. The benefit of this type of entry is that you have a regular income from the beginning and with the right kind of handover you get introduced to the clients by the outgoing planner to help smooth the relationship. You may also inherit an Admin/Paraplanner who knows all the clients and the systems in place and can free you up to see clients and grow the business.
How to position the business for success
You will need a compelling client engagement process to convert prospects to paying clients, an efficient back end process to implement your strategies effectively and a thorough review process that continuously emphasises the value you bring to the relationship as you will inevitably face market corrections that will test your client relationships. You will also need a marketing strategy to grow your business through referrals from existing clients or centres of influence.
If you don’t have the time or the skills to develop this yourself then you can purchase existing software that allows you to quickly implement high end, proven processes that have been developed by financial planners with decades of business experience.
