business plan financial advisor template

Financial Advisor Business Plan Template

Written by Dave Lavinsky

Over the past 20+ years, we have helped over 9,000 entrepreneurs create business plans to start and grow their financial advisor and financial planning businesses. On this page, we will first give you some background information with regards to the importance of business planning. We will then go through a financial advisor business plan template step-by-step so you can create your plan today.

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What is a Financial Advisor Business Plan?

A business plan provides a snapshot of your financial advisor business as it stands today, and lays out your growth plan for the next five years. It explains your business goals and your strategy for reaching them. It also includes market research to support your plans.

Why You Need a Business Plan for a Financial Advisory Firm

If you’re looking to start a financial advisor business or grow your existing financial advisor business you need a business plan. A business plan will help you raise funding, if needed, and plan out the growth of your financial planning business in order to improve your chances of success. Your financial advisor business plan is a living document that should be updated annually as your company grows and changes.

Source of Funding for Financial Planning Businesses

With regards to funding, the main sources of funding for a financial advisor are personal savings, credit cards, bank loans and angel investors. With regards to bank loans, banks will want to review your business plan and gain confidence that you will be able to repay your loan and interest. To acquire this confidence, the loan officer will not only want to confirm that your financials are reasonable. But they will want to see a professional plan. Such a plan will give them the confidence that you can successfully and professionally operate a business.

Angel investors are wealthy individuals who will write you a check. They will either take equity in return for their funding, or, like a bank, they will give you a loan.

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Your business plan should include 10 sections as follows:

Executive Summary

Your executive summary provides an introduction to your business plan, but it is normally the last section you write because it provides a summary of each key section of your plan.

The goal of your Executive Summary is to quickly engage the reader. Explain to them the type of financial advisor business you are operating and the status; for example, are you a startup, do you have a financial advisor business that you would like to grow, or are you operating a chain of financial planning businesses.

Next, provide an overview of each of the subsequent sections of your plan. For example, give a brief overview of the financial advisor business industry. Discuss the type of financial planning business you are operating. Detail your direct competitors. Give an overview of your target customers. Provide a snapshot of your marketing plan. Identify the key members of your team. And offer an overview of your financial plan.

Company Analysis

In your company analysis, you will detail the type of financial advisor business you are operating.

For example, you might operate one of the following types:

• Financial Planning for Consumers : this type of financial advisor provides services such as retirement planning and investment management for individuals.
• Financial Management Consulting : this type of financial advisor business typically serves businesses and governments, providing portfolio management services.

In addition to explaining the type of financial advisor business you operate, the Company Analysis section of your financial planner business plan needs to provide background on the business.

Include answers to question such as:

• When and why did you start the business?
• What milestones have you achieved to date? Milestones could include sales goals you’ve reached, new store openings, etc.
• Your legal structure. Are you incorporated as an S-Corp? An LLC? A sole proprietorship? Explain your legal structure here.

Industry Analysis

In your industry analysis, you need to provide an overview of the financial advisor business.

While this may seem unnecessary, it serves multiple purposes.

First, researching the financial advisor business industry educates you. It helps you understand the market in which you are operating.

Secondly, market research can improve your strategy particularly if your research identifies market trends. For example, if there was a trend towards cryptocurrency investment, it would be helpful to ensure your plan calls for continuing education in alternative investments.

The third reason for market research is to prove to readers that you are an expert in your industry. By conducting the research and presenting it in your plan, you achieve just that.

The following questions should be answered in the industry analysis section of your financial advisor business plan:

• How big is the financial advisor business (in dollars)?
• Is the market declining or increasing?
• Who are the key competitors in the market?
• Who are the key suppliers in the market?
• What trends are affecting the industry?
• What is the industry’s growth forecast over the next 5 – 10 years?
• What is the relevant market size? That is, how big is the potential market for your financial advisor business. You can extrapolate such a figure by assessing the size of the market in the entire country and then applying that figure to your local population.

Customer Analysis

The customer analysis section of your financial planning business plan must detail the customers you serve and/or expect to serve.

The following are examples of customer segments: families, high net worth individuals (HNWIs), baby boomers, businesses, etc.

As you can imagine, the customer segment(s) you choose will have a great impact on the type of financial advisor business you operate. Clearly baby boomers would want different pricing and product options, and would respond to different marketing promotions than high net worth individuals.

Try to break out your target customers in terms of their demographic and psychographic profiles. With regards to demographics, include a discussion of the ages, genders, locations and income levels of the customers you seek to serve. Because most financial advisor businesses primarily serve customers living in their same city or town, such demographic information is easy to find on government websites.

Psychographic profiles explain the wants and needs of your target customers. The more you can understand and define these needs, the better you will do in attracting and retaining your customers.

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Competitive Analysis

Your competitive analysis should identify the indirect and direct competitors your business faces and then focus on the latter.

Direct competitors are other financial advisor businesses.

Indirect competitors are other options that customers have to purchase from that aren’t direct competitors. This includes independent advisory firms, commercial banks, investment banks, insurance companies, broker-dealers, discount brokerages or self-managing one’s finances and investments. You need to mention such competition to show you understand that not everyone who seeks financial advice engages the services of a financial advisor.

With regards to direct competition, you want to detail the other financial advisor businesses with which you compete. Most likely, your direct competitors will be financial advisor businesses located very close to your location.

For each such competitor, provide an overview of their businesses and document their strengths and weaknesses. Unless you once worked at your competitors’ businesses, it will be impossible to know everything about them. But you should be able to find out key things about them such as:

• What types of customers do they serve?
• What products and services do they offer?
• What is their pricing (premium, low, etc.)?
• What are they good at?
• What are their weaknesses?

With regards to the last two questions, think about your answers from the customers’ perspective.

The final part of your competitive analysis section is to document your areas of competitive advantage. For example:

• Will you provide superior services?
• Will you provide products/services that your competitors don’t offer?
• Will you make it easier or faster for customers to engage your services?
• Will you provide better customer service?
• Will you offer better pricing?

Think about ways you will outperform your competition and document them in this section of your plan.

Marketing Plan

Traditionally, a marketing plan includes the four P’s: Product, Price, Place, and Promotion. Your financial advisor marketing plan should include the following:

Product : in the product section you should reiterate the type of financial advisor business that you documented in your Company Analysis. Then, detail the specific products you will be offering. For example, in addition to financial advice, will you offer trust services or brokering and dealing?

Price : Document the prices you will offer and how they compare to your competitors. Essentially in the product and price sub-sections of your marketing plan, you are presenting the products and services you offer and their prices.

Place : Place refers to the location of your financial advisor business. Document your location and mention how the location will impact your success.

Promotions : the final part of your financial advisor business marketing plan is the promotions section. Here you will document how you will drive customers to your location(s). The following are some promotional methods you might consider:

• Advertising in local papers and magazines
• Pay per click advertising
• Reaching out to local bloggers and websites
• Social media advertising
• Local radio advertising
• Banner ads at local venues

Operations Plan

While the earlier sections of your business plan explained your goals, your operations plan describes how you will meet them. Your operations plan should have two distinct sections as follows.

Everyday short-term processes include all of the tasks involved in running your financial advisory such as serving customers, procuring supplies, keeping the office clean, etc.

Long-term goals are the milestones you hope to achieve. These could include the dates when you expect to serve your 100th customer, or when you hope to reach $X in sales. It could also be when you expect to hire your Xth employee or launch a new location.

Management Team

To demonstrate your financial advisor business’s ability to succeed as a business, a strong management team is essential. Highlight your key players’ backgrounds, emphasizing those skills and experiences that prove their ability to grow a company.

Ideally you and/or your team members have direct experience in the financial advisor business. If so, highlight this experience and expertise. But also highlight any experience that you think will help your business succeed.

If your team is lacking, consider assembling an advisory board. An advisory board would include 2 to 8 individuals who would act like mentors to your business. They would help answer questions and provide strategic guidance. If needed, look for advisory board members with experience in financial advisor businesses and/or successfully running small businesses.

Financial Plan

Your financial plan should include your 5-year financial statement broken out both monthly or quarterly for the first year and then annually. Your financial statements include your income statement, balance sheet and cash flow statements.

Income Statement : an income statement is more commonly called a Profit and Loss statement or P&L. It shows your revenues and then subtracts your costs to show whether you turned a profit or not.

In developing your income statement, you need to devise assumptions. For example, will you serve 50 accounts at a time, or 100? And will sales grow by 2% or 10% per year? As you can imagine, your choice of assumptions will greatly impact the financial forecasts for your business. As much as possible, conduct research to try to root your assumptions in reality.

Balance Sheets : While balance sheets include much information, to simplify them to the key items you need to know about, balance sheets show your assets and liabilities. For instance, if you spend $100,000 on building out your financial advisor business, that will not give you immediate profits. Rather it is an asset that will hopefully help you generate profits for years to come. Likewise, if a bank writes you a check for $100.000, you don’t need to pay it back immediately. Rather, that is a liability you will pay back over time.

Cash Flow Statement : Your cash flow statement will help determine how much money you need to start or grow your business, and make sure you never run out of money. What most entrepreneurs and business owners don’t realize is that you can turn a profit but run out of money and go bankrupt.

In developing your Income Statement and Balance Sheets be sure to include several of the key costs needed in starting or growing a financial advisor business:

• Office location build-out including design fees, construction, etc.
• Cost of equipment like computer hardware and software, office equipment, etc.
• Cost of required licenses (e.g., FINRA fees)
• Payroll or salaries paid to staff
• Business insurance
• Taxes and permits
• Legal expenses

Attach your full financial projections in the appendix of your plan along with any supporting documents that make your plan more compelling. For example, you might include your office design blueprint or location lease, etc.

Additional Financial Advisor Business Plan Tips

When writing a business plan for a financial advisor practice, take great pains to avoid these three mistakes which each give funders reason to set the plan aside or stop returning your calls.

Resting on Your Laurels

Your financial experience that prepares you to be an advisor is certainly important to explain in your business plan, but this isn’t enough. You have to go beyond explaining the experience you bring to the table to explain how you will market and operate a business with that experience serving as a cornerstone. Without a plan for how the business will run, readers cannot truly judge how you expect the business to succeed.

Ignoring Competition

Writing that there is no competition for the customers you want in the location you will operate is a huge mistake in a business plan. There are always competitors, even if the competition is Fortune magazine or the Motley Fool website. At a minimum, clients have the option of finding financial advice in these inexpensive sources rather than working with you. The competitive analysis section of your plan must recognize the challenge you face in proving your practice’s worth beyond these competitors, at the very least.

Not Connecting the Dots

The business plan is a type of logic puzzle. When put together, it connects opportunity to means to methods to results. Think through the logic of whether the means you present (your experience, team, location, etc.) are adequate to take advantage of the opportunity. Consider whether the operations and marketing methods you propose make sense for the means. Look at whether the results you project are reasonable given these methods. If you don’t think through these steps, your readers will find gaps in your logic and turn down funding for your plan, even if each component sounds perfectly fine on its own. The plan must work as a cohesive whole to be fundable.

Financial Advisor Business Plan Summary

Putting together a business plan for your financial advisor business is a worthwhile endeavor. If you follow the template above, by the time you are done, you will truly be an expert. You will really understand the financial advisor business, your competition and your customers. You will have developed a marketing plan and will really understand what it takes to launch and grow a successful financial advisor business.

Download Our Financial Advisor Business Plan PDF

You can download our financial advisor business plan PDF here . This is a business plan template you can use in PDF format.  

Financial Advisor Business Plan FAQs

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Where Can I Download a Financial Advisor Business Plan PDF?

You can download our financial advisor business plan PDF template here . This is a business plan template you can use in PDF format.

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August 17, 2015 07:01 am 21 Comments CATEGORY: Practice Management

Executive Summary

In a world where most advisory firms are relatively small businesses, having a formal business plan is a remarkably rare occurrence. For most advisors, they can “keep track” of the business in their head, making the process of creating a formal business plan on paper to seem unnecessary.

Yet the reality is that crafting a business plan is about more than just setting some business goals to pursue. Like financial planning, the process of thinking through the plan is still valuable, regardless of whether the final document at the end gets put to use. In fact, for many advisory firms, a simple “one-page” financial advisor business plan may be the best output of the business planning process – a single-page document with concrete goals to which the advisor can hold himself/herself accountable.

So what should the (one-page) financial advisor business plan actually cover? As the included sample template shows, there are six key areas to define for the business: who will it serve, what will you do for them, how will you reach them, how will you know if it’s working, where will you focus your time, and what must you do to strengthen (or build) the foundation to make it possible? Ideally, this should be accompanied by a second page to the business plan, which includes a budget or financial projection of the key revenue and expense areas of the business, to affirm that it is a financially viable plan (and what the financial goals really are!).

And in fact, because one of the virtues of a financial advisor business plan is the accountability it can create, advisors should not only craft the plan, but share it – with coaches and colleagues, and even with prospective or current clients. Doing so becomes an opportunity to not only to get feedback and constructive criticism about the goals, but in the process of articulating a clear plan for the business, the vetting process can also be a means to talk about the business and who it will serve, creating referral opportunities in the process!

Author: Michael Kitces

Michael Kitces is Head of Planning Strategy at Buckingham Strategic Wealth , which provides an evidence-based approach to private wealth management for near- and current retirees, and Buckingham Strategic Partners , a turnkey wealth management services provider supporting thousands of independent financial advisors through the scaling phase of growth.

In addition, he is a co-founder of the XY Planning Network , AdvicePay , fpPathfinder , and New Planner Recruiting , the former Practitioner Editor of the Journal of Financial Planning, the host of the Financial Advisor Success podcast, and the publisher of the popular financial planning industry blog Nerd’s Eye View through his website Kitces.com , dedicated to advancing knowledge in financial planning. In 2010, Michael was recognized with one of the FPA’s “Heart of Financial Planning” awards for his dedication and work in advancing the profession.

Read all of Michael’s articles here .

Why A Business Plan Matters For Financial Advisors

There’s no end to the number of articles and even entire books that have been written about how to craft a business plan , yet in practice I find that remarkably few financial advisors have ever created any kind of formal (written or unwritten) business plan. Given that the overwhelming majority of financial advisors essentially operate as solo practitioners or small partnerships, this perhaps isn’t entirely surprising – when you can keep track of the entire business in your head in the first place, is there really much value to going through a formal process of crafting a financial advisor business plan?

Having been a part of the creation and growth of numerous businesses , I have to admit that my answer to “does a[n individual] financial advisor really need a business plan?” is a resounding yes . But not because you’re just trying to figure out what the basics of your business will be, which you may well have “figured out” in your head (or as the business grows, perhaps figured out in conversations with your partner). The reason a business plan matters is all about focus , and the ability to keep focus in proceeding towards your core objectives, and accountable to achieving them, even in a dynamic real-world environment full of distractions.

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As the famous military saying goes, “ no battle plan ever survives contact with the enemy ”, because the outcomes of battle contact itself change the context, and it’s almost impossible to predict what exactly will come next. Nonetheless, crafting a battle plan in advance is a standard for military leadership. Because even if the plan will change as it’s being executed, having a clearly articulated objective allows everyone, even (and especially) in the heat of battle, to keep progressing towards a common agreed-upon goal. In other words, the objective stated in the battle plan provides a common point of focus for everyone to move towards, even as the (battle) landscape shifts around them. And the business plan serves the exact same role within a business.

Essential Elements Required In A Financial Advisor Business Plan

Because the reality is that in business – as in battle? – the real world will not likely conform perfectly to an extensively crafted business (or battle) plan written in advance, I am not a fan of crafting an extensively detailed business plan, especially for new advisors just getting started, or even a ‘typical’ solo advisory firm. While it’s valuable to think through all the elements in depth – the process of thinking through a business plan is part of what helps to crystallize the key goals to work towards – as with financial planning itself, the process of planning can actually be more valuable than “the plan” that is written out at the end .

Accordingly, for most financial advisors trying to figure out how to write a business plan, I’m an advocate of crafting a form of “one-page business plan” that captures the essential elements of the business, and provides direction about where to focus, especially focus the time of the advisor-owner in particular. In other words, the purpose for a financial advisor business plan is simply to give clear marching orders towards a clear objective, with clear metrics about what is trying to be achieved along the way, so you know where to focus your own time and energy!

Of course, the reality is that what constitutes the most important goals for an advisory firm – as well as the challenges it must surmount – will vary a lot, depending not just on the nature of the firm, but simply on its size, scope, and business stage. Financial advisors just getting started launching a new RIA face very different business and growth issues than a solo advisor who has been operating for several years but now hit a “wall” in the business , and the challenges of a solo advisor are different than those of a larger firm with multiple partners who need to find alignment in their common business goals. Nonetheless, the core essential elements that any business plan is required to cover are remarkably similar.

Requirements For An Effective Financial Advisor Business Plan

While there are many areas that can potentially be covered, the six core elements that must be considered as the template for a financial advisor business plan are:

6 Required Elements Of A (One Page) Business Plan For Financial Advisors 1) Who will you serve? This is the most basic question of all, but more complex than it may seem at first. The easy answer is “anyone who will pay me”, but in practice I find that one of the most common reasons a new advisor fails is that their initial outreach is so unfocused, there’s absolutely no possibility to gain any momentum over time. In the past, when you could cold-call your way to success by just trying to pump your products on every person who answered the phone until you found a buyer, this might have been feasible. But if you want to get paid for your advice itself, you need to be able to demonstrate your expertise. And since you can’t possibly be an expert at everything for everyone, you have to pick someone for whom you will become a bona fide specialist (which also provides crucial differentiation from other advisors the potential client might choose to work with instead ). In other words, you need to choose what type of niche clientele you’re going to target to differentiate yourself. And notably, this problem isn’t unique to new advisors; many established advisors ultimately hit a wall in their business, in part because it’s so time-consuming trying to be everything to everyone, that they reach their personal capacity in serving clients earlier than they ‘should’. Focusing on a particular clientele – to the point that you can anticipate all of their problems and issues in advance – allows the business to be radically more efficient. So who, really , do you want to serve? 2) What will you do for them? Once you’ve chosen who you will serve, the next task is to figure out what you will actually do for them – in other words, what services will you deliver. The reason it’s necessary to first figure out who you will serve, is that the nature of your target niche clientele may well dictate what kind of services you’re going to provide them; in fact, part of the process of identifying and refining your niche in the first place should be to interview a number of people in your niche , and really find out what they want and need that’s important to them (not just the standard ‘comprehensive financial plan’ that too many advisors deliver in the same undifferentiated manner ). For instance, if you’re really serious about targeting retirees, you might not only provide comprehensive financial planning, but investment management services (for their retirement portfolios), a specific retirement income distribution strategy, assistance with long-term care insurance, and guidance on enrolling in Medicare and making decisions about the timing of when to start Social Security benefits . On the other hand, if you hope to work with entrepreneurs, you might need to form relationships with attorneys and accountants who can help facilitate creating new business entities, and your business model should probably be on a retainer basis, as charging for assets under management may be difficult (as entrepreneurs tend to plow their dollars back into their businesses!). If your goal is to work with new doctors, on the other hand, your advice will probably focus more on career guidance, working down a potential mountain of student debt, and cash flow/budgeting strategies. Ultimately, these adjustments will help to formulate the ongoing client service calendar you might craft to articulate what you’ll do with clients (especially if you plan to work with them on an ongoing basis), and the exact business model of how you’ll get paid (Insurance commissions? Investment commissions? AUM fees? Annual retainers? Monthly retainers ? Hourly fees?). 3) How will you reach them? Once you’ve decided who you want to reach, and what you will do for them, it’s time to figure out how you will reach them – in other words, what will be your process for finding prospective clients you might be able to work with? If you’re targeting a particular niche, who are the centers of influence you want to build relationships with? What publications do they read, where you could write? What conferences do they attend, where you might speak? What organizations are they involved with, where you might also volunteer and get involved? If you’re going to utilize an inbound marketing digital strategy as an advisor , what are the topics you can write about that would draw interest and organic search traffic, and what giveaway will you provide in order to get them to sign up for your mailing list so you can continue to drip market to them? In today’s competitive world, it’s not enough to just launch a firm, hang your (virtual) shingle, and wait for people to walk in off the street or call your office. You need to have a plan about how you will get out there to get started! 4) How will you know if it’s working? Once you’ve set a goal for who you want to serve, what you want to do for them, and how you will reach them, it’s time to figure out how to measure whether it’s working. The caveat for most financial advisory businesses, though, is that measuring outcomes is tough because of the small sample size – in a world where you might have to reach out to dozens of strangers just to find a dozen prospects, and then meet with all those prospects just to get a client or two, it’s hard to tell whether a strategy that nets one extra client in a quarter was really a “better strategy” or just random good luck that won’t repeat. As a result, in practice it’s often better to measure activity than results , especially as a newer advisory firm. In other words, if you think you’ll have to meet 10 Centers Of Influence (COIs) to get introductions to 30 prospects to get 3 clients, then measure whether you’re meeting your activity goals of 10 COIs and 30 prospect meetings, and not necessarily whether you got 2, 3, or 4 clients out of the last stint of efforts. Not that you shouldn’t ultimately have results-oriented goals of clients and revenue as well, but activity is often the easier and more salient item to measure, whether it’s phone calls made, articles written, subscribers added to your drip marketing list, prospect meetings, COI introductions, or something else. So when you’re defining the goals of your business plan, be certain you’re setting both goals for the results you want to achieve, and the key performance indicator (KPI) measures you want to evaluate to regarding your activities along the way? 5) Where will you focus your time in the business? When an advisory firm is getting started, the role of the advisor-as-business-owner is to do “everything” – as the saying goes, you’re both the chief cook and the bottle washer . However, the reality is that the quickest way to failure in an advisory firm is to get so caught up on doing “everything” that you fail to focus on the essential activities necessary to really move the business forward (that’s the whole reason for having a plan to define what those activities are, and a measure to determine whether you’re succeeding at them!). Though in truth, the challenge of needing to focus where you spend your time in the business never ends – as a business grows and evolves, so too does the role of the advisor-owner as the leader, which often means that wherever you spent your time and effort to get your business to this point is not where you need to focus it to keep moving forward from here. From gathering clients as an advisor to learning to transition clients to another advisor, from being responsible for the firm’s business development to hiring a marketing manager, from making investment decisions and executing trades to hiring an investment analyst and trader. By making a proactive decision about where you will spend your time, and also deliberately deciding what you will stop doing, it also becomes feasible to determine what other resources you may need to support you, in order to ensure you’re always spending your time focused on whatever is your highest and best use. In addition, the process can also reveal gaps where you may need to invest into and improve yourself, to take on the responsibilities you haven’t in the past but need to excel at to move forward from here. 6) How must you strengthen the foundation? The point of this section is not about what you must do to achieve the goals you’ve set, but what else needs to be done in the business in order to maximize your ability to make those business goals a reality. In other words, if you’re going to focus your time on its highest and best use in the business, what foundation to you need to support you to make that happen? If you’re a startup advisory firm, what business entity do you need to create, what are the tools/technology you’ll need to launch your firm , and what licensing/registrations must you complete? Will you operate with a ‘traditional’ office or from a home office , or run an entirely virtual “location-independent” advisory firm ? What are the expenses you’re budgeting to operate the business? If you’re an advisor who’s hit a growth wall , what are the essential hire(s) you’ll make in the near future where/how else will you reinvest to get over the wall and keep moving forward? At the most basic level, the key point here is that if you’re going to execute on this business plan to move the business forward from here, you need a sound foundation to build upon – so what do you need to do to shore up your foundation, so you can keep building? But remember, the goal here is to do what is necessary to move forward, not everything ; as with so much in the business, waiting until perfection may mean nothing gets done at all.

Creating A Budget And Financial Projections For Your Advisory Business

In addition to crafting a (one-page) financial planner business plan, the second step to your business planning process should be crafting a budget or financial projection for your business for the upcoming year (or possibly out 2-3 years).

Key areas to cover in budget projections for a financial advisory firm are:

Revenue - What are the revenue source(s) of your business, and realistically what revenue can you grow in the coming year(s)? - If you have several types of revenue, what are you goals and targets for each? How many hourly clients? How much in retainers? How much in AUM fees? What commission-based products do you plan to sell, and in what amounts? Expenses - What are the core expenses to operate the business on an ongoing basis? (E.g., ongoing salary or office space overhead, core technology you need to operate the business, etc.) - What are the one-time expenses you may need to contend with this year? (Whether start-up expenses to launch your advisory firm , new hires to add, significant one-time projects to complete, etc.)

An ongoing advisory firm may project out for the next 1-3 years, while a newer advisors firm may even prefer a more granular month-by-month budget projection to have regular targets to assess.

Ultimately, the purpose of the budgeting process here is two-fold. The first reason for doing so is simply to have an understanding of the prospective expenses to operate the business, so you can understand if you do hit your goals, what the potential income and profits of the business will be (and/or whether you need to make any changes, if the business projections aren’t viable!). The second reason is that by setting a budget, for both expenses and revenue, you not only set targets for what you will spend in the business to track on track, but you have revenue goals to be held accountable to in trying to assess whether the business is succeeding as planned.

Vetting Your Business Plan By Soliciting Constructive Criticism And Feedback

The last essential step of crafting an effective financial planner business plan is to vet it – by soliciting feedback and constructive criticism about the gaps and holes. Are there aspects of the financial projections that seem unrealistic? Is the target of who the business will serve narrow and specific enough to be differentiated, such that the person you’re talking to would clearly know who is appropriate to refer to you? Are the services that will be offered truly unique and relevant to that target clientele, and priced in a manner that’s realistically affordable and valuable to them?

In terms of who should help to vet your financial advisor business plan, most seem to get their plan vetted by talking to a business coach or consultant to assess the plan. While that’s certainly a reasonable path, another option is actually to take the business plan to fellow advisors to vet, particularly if you’re part of an advisor study (or “mastermind”) group ; the reason is that not only do fellow advisors have an intimate understanding of the business and potential challenges, but if their target clientele is different than yours, it becomes an opportunity to explain what you do and create the potential for future referrals! In other words, “asking for advice on your business plan” also becomes a great opportunity to “tell you about who I work with in my business that you could refer to me” as well! (In fact, one of the great virtues of a clearly defined niche practice as an advisor is that you can generate referrals from other advisors who have a different niche than yours !)

Similarly, the reality is that another great potential source for feedback about your business plan are Centers of Influence already in your niche in the first place. While you might not share with your potential clients the details of your business financial projections (which is why I advocate that those be separate from the one-page business plan), the essential aspects of the business plan – who you will serve, what you will provide them, how you will charge, and how you will try to reach them – is an area that the target clientele themselves may be best positioned to provide constructive feedback. And in the process, once again you’ll effectively be explaining exactly what your niche business does to target clientele who could either do business with you directly, or refer business to you , even as you’re asking for their advice about how to make the business better (to serve people just like them!). So whether it’s people you’re not yet doing business with but want to, or an existing client advisory board with whom you want to go deeper, vetting your plan with prospective and current clients is an excellent opportunity to talk about and promote your business, even as you’re going through the process of refining it and making it better!

And notably, the other benefit of vetting your business plan with others – whether it’s a coach, colleague, prospects, or clients – is that the process of talking through the business plan and goals with them also implicitly commits to them that you plan to act on the plan and really do what’s there. In turn, what this means is that once you’ve publicly and openly committed to the business plan with them, it’s now fair game for them to ask you how it’s going, and whether you’re achieving the goals you set forth for yourself in the plan – an essential point of accountability to help you ensure that you’re following through on and executing the business plan you’ve created!

So what do you think? Have you ever created a formal business plan for yourself? If you have, what worked for you – a longer plan, or a shorter one? If you haven’t created a business plan for yourself, why not? Do you think the kind of one-page financial advisor business plan template articulated here would help? Have you checked out our financial advisor business plan sample template  for yourself? Do you have a financial advisor business plan example you're willing to share in the comments below?

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How to Write a Financial Advisor Business Plan (+ Template)

Creating a business plan is essential for any business, but it can be especially helpful for financial advisor businesses that want to improve their strategy and raise funding.

A well-crafted business plan not only outlines the vision for your company, but also documents a step-by-step roadmap of how you are going to accomplish it. In order to create an effective business plan, you must first understand the components that are essential to its success.

This article provides an overview of the key elements that every financial advisor business owner should include in their business plan.

Download the Ultimate Financial Advisor Business Plan Template

What is a Financial Advisor Business Plan?

A financial advisor business plan is a formal written document that describes your company’s business strategy and its feasibility. It documents the reasons you will be successful, your areas of competitive advantage, and it includes information about your team members. Your business plan is a key document that will convince investors and lenders (if needed) that you are positioned to become a successful venture.

Why Write a Financial Advisor Business Plan?

A financial advisor business plan is required for banks and investors. The document is a clear and concise guide of your business idea and the steps you will take to make it profitable.

Entrepreneurs can also use this as a roadmap when starting their new company or venture, especially if they are inexperienced in starting a business.

Writing an Effective Financial Advisor Business Plan

The following are the key components of a successful financial advisor business plan:

Executive Summary

The executive summary of a financial advisor business plan is a one- to two-page overview of your entire business plan. It should summarize the main points, which will be presented in full in the rest of your business plan.

• Start with a one-line description of your financial advisor company
• Provide a short summary of the key points in each section of your business plan, which includes information about your company’s management team, industry analysis, competitive analysis, and financial forecast, among others.

Company Description

This section should include a brief history of your company. Include a short description of how your company began and provide a timeline of milestones your company has achieved.

If you are just starting your financial advisor business, you may not have a long company history. Instead, you can include information about your professional experience in this industry and how and why you conceived your new venture. If you have worked for a similar company before or have been involved in an entrepreneurial venture before starting your financial advisor firm, mention this.

You will also include information about your chosen financial advisor business model and how, if applicable, it is different from other companies in your industry.

Industry Analysis

The industry or market analysis is an important component of a financial advisor business plan. Conduct thorough market research to determine industry trends and document the size of your market. 

Questions to answer include:

• What part of the financial advisor industry are you targeting?
• How big is the market?
• What trends are happening in the industry right now (and, if applicable, how do these trends support the success of your company)?

You should also include sources for the information you provide, such as published research reports and expert opinions.

Customer Analysis

This section should include a list of your target audience(s) with demographic and psychographic profiles (e.g., age, gender, income level, profession, job titles, interests). You will need to provide a profile of each customer segment separately, including their needs and wants.

For example, financial advisor business customers may include corporate human resources departments, small business owners, and individual investors.

You can include information about how your customers make the decision to buy from you as well as what keeps them buying from you.

Develop a strategy for targeting those customers who are most likely to buy from you, as well as those that might be influenced to buy your products or financial advisor services with the right marketing.

Competitive Analysis

The competitive analysis helps you determine how your product or service will be different from competitors, and what your unique selling proposition (USP) might be that will set you apart in this industry.

For each competitor, list their strengths and weaknesses. Next, determine your areas of competitive differentiation and/or advantage; that is, in what ways are you different from and ideally better than your competitors.

Below are sample competitive advantages your financial advisor business may have:

• Extensive knowledge and experience in the industry
• Proven track record of success
• Strong relationships with clients
• Offers a unique service that is not currently being offered by competitors
• Highly specialized services that cater to a specific niche
• Low overhead costs

Marketing Plan

This part of the business plan is where you determine and document your marketing plan. Your plan should be clearly laid out, including the following 4 Ps.

• Product/Service : Detail your product/service offerings here. Document their features and benefits.
• Price : Document your pricing strategy here. In addition to stating the prices for your products/services, mention how your pricing compares to your competition.
• Place : Where will your customers find you? What channels of distribution (e.g., partnerships) will you use to reach them if applicable?
• Promotion : How will you reach your target customers? For example, you may use social media, write blog posts, create an email marketing campaign, use pay-per-click advertising, or launch a direct mail campaign. Or you may promote your financial advisor business via word-of-mouth or referrals.  

Operations Plan

This part of your financial advisor business plan should include the following information:

• How will you deliver your product/service to customers? For example, will you do it in person or over the phone only?
• What infrastructure, equipment, and resources are needed to operate successfully? How can you meet those requirements within budget constraints?

The operations plan is where you also need to include your company’s business policies. You will want to establish policies related to everything from customer service to pricing, to the overall brand image you are trying to present.

Finally, and most importantly, in your Operations Plan, you will lay out the milestones your company hopes to achieve within the next five years. Create a chart that shows the key milestone(s) you hope to achieve each quarter for the next four quarters, and then each year for the following four years. Examples of milestones for a financial advisor business include reaching $X in sales. Other examples include acquiring a certain number of clients or partners, launching a new service, opening a new location, and hiring key personnel.

Management Team

List your team members here, including their names and titles, as well as their expertise and experience relevant to your specific financial advisor industry. Include brief biography sketches for each team member.

Particularly if you are seeking funding, the goal of this section is to convince investors and lenders that your team has the expertise and experience to execute on your plan. If you are missing key team members, document the roles and responsibilities, you plan to hire for in the future.

Financial Plan

Here, you will include a summary of your complete and detailed financial plan (your full financial projections go in the Appendix). 

This includes the following three financial statements:

Income Statement

Your income statement should include:

• Revenue : how much revenue you generate.
• Cost of Goods Sold : These are your direct costs associated with generating revenue. This includes labor costs, as well as the cost of any equipment and supplies used to deliver the product/service offering.
• Net Income (or loss) : Once expenses and revenue are totaled and deducted from each other, this is the net income or loss.

Sample Income Statement for a Startup Financial Advisor Firm

Financial advisor balance sheet.

Include a balance sheet that shows your assets, liabilities, and equity. Your balance sheet should include:

• Assets : Everything you own (including cash).
• Liabilities : This is what you owe against your company’s assets, such as accounts payable or loans.
• Equity : The worth of your business after all liabilities and assets are totaled and deducted from each other.

Sample Balance Sheet for a Startup Financial Advisor Firm

Cash flow statement.

Include a cash flow statement showing how much cash comes in, how much cash goes out and a net cash flow for each year. The cash flow statement should include cash flow from:

• Investments

Below is a sample of a projected cash flow statement for a startup financial advisor business.

Sample Cash Flow Statement for a Startup Financial Advisor Firm

You will also want to include an appendix section which will include:

• Your complete financial projections
• A complete list of your company’s business policies and procedures related to the rest of the business plan (marketing, operations, etc.)
• Any other documentation which supports what you included in the body of your business plan.

Writing a good business plan gives you the advantage of being fully prepared to launch and/or grow your financial advisor company. It not only outlines your business vision but also provides a step-by-step process of how you are going to accomplish it.

Following the tips and using the template provided in this article, you can write a financial advisor business plan that will help you succeed.  

Finish Your Financial Advisor Business Plan in 1 Day!

Wish there was a faster, easier way to finish your Financial Advisor business plan?

With our Ultimate Financial Advisor Business Plan Template you can finish your plan in just 8 hours or less!

Other Helpful Articles

Financial Advisor Marketing Plan to Get Clients (+Template)

Establishing Business Goals For Your First Year as a Financial Advisor

Developing Your Financial Advisor Value Proposition

How to Create a Financial Advisor Vision Statement

How to Write a Financial Planner Business Plan (+ Template)

Financial Advisor Business Plan Template

Written by Dave Lavinsky

Business Plan Outline

• Financial Advisor Business Plan Home
• 1. Executive Summary
• 2. Company Overview
• 3. Industry Analysis
• 4. Customer Analysis
• 5. Competitive Analysis
• 6. Marketing Plan
• 7. Operations Plan
• 8. Management Team
• 9. Financial Plan

Financial Advisor Business Plan

You’ve come to the right place to create your financial advisor business plan.

We have helped over 10,000 entrepreneurs and business owners create business plans and many have used them to start or grow their financial advisor businesses. Our financial advisor business plan template will help you create your business plan, ensuring that you have all the necessary elements to make your financial advisor business a success.

To write a successful financial advisor business plan, you will first need to decide what type of financial advisor services you will offer. Will you be working with small businesses? Or are your target customers individuals saving for retirement?

You will need to gather information about your business and the financial advisor industry. This type of information includes business goals, customer demographics, market research, and financial statements.

Below are links to each section of a financial advisor business plan example:

Next Section: Executive Summary >

Financial Advisor Business Plan FAQs

What is a financial advisor business plan.

A financial advisor business plan is a plan to start and/or grow your financial advisor business. Among other things, it outlines your business concept, identifies your target customers, presents your marketing plan and details your financial projections.

You can  easily complete your financial advisor business plan using our Financial Advisor Business Plan Template here .

What Are the Main Types of Financial Advisor Companies?

There are different types of financial advisor firms . The most common kinds are the investment advisors, broker-dealers and brokers, certified financial planners, financial consultants, wealth advisors, and portfolio, investment, and asset managers. There are also digital platforms that provide automated, algorithm-driven investment services with little to no human supervision called robo-advisors.

What Are the Main Sources of Revenues & Expenses for Financial Advisors?

Financial advisors make money on client fees for financial planning services.  These are usually charged on an hourly basis or as a percentage of client assets under management. Another source of income are commissions for certain financial transactions, such as the sale of insurance products or the buying and selling of securities.

The key expenses are salaries and wages, and office space rent.

How to Start a Financial Advisor Business?

Starting a financial advisor business can be an exciting endeavor. Having a clear roadmap of the steps to start a business will help you stay focused on your goals and get started faster.

• Write A Financial Advisor Business Plan - The first step in starting a business is to create a detailed business plan that outlines all aspects of the venture. This should include market research on the financial industry and potential target market size, information on the services and/or products you will offer, marketing strategies, pricing details, competitive analysis and a solid financial forecast.
• Choose Your Legal Structure - It's important to select an appropriate legal entity for your business. This could be a limited liability company (LLC), corporation, partnership, or sole proprietorship. Each type has its own benefits and drawbacks so it’s important to do research and choose wisely so that your financial advisor business is in compliance with local laws.
• Register Your Business - Once you have chosen a legal structure, the next step is to register your financial advisor business with the government or state where you’re operating from. This includes obtaining licenses and permits as required by federal, state, and local laws.
• Identify Financing Options - It’s likely that you’ll need some capital to start your business, so take some time to identify what financing options are available such as bank loans, investor funding, grants, or crowdfunding platforms.
• Choose a Location - Whether you plan on operating out of a physical location or not, you should always have an idea of where you’ll be based should it become necessary in the future as well as what kind of space would be suitable for your operations.
• Hire Employees - There are several ways to find qualified employees and a top notch management team, including job boards like LinkedIn or Indeed as well as hiring agencies if needed – depending on what type of employees you need it might also be more effective to reach out directly through networking events.
• Market & Promote Your Business - Once you have all the necessary pieces in place, it’s time to start promoting and marketing your business. Marketing efforts includes creating a website, utilizing social media platforms like Facebook or Twitter, and having an effective Search Engine Optimization (SEO) strategy. You should also consider traditional marketing techniques such as radio or print advertising to reach your target audience.

Learn more about how to start a Financial Advisor business:

• How to Start a Financial Advisor Business

How Do You Get Funding for Your Financial Advisor Business Plan?

Financial advisor businesses are typically funded through small business loans, personal savings, credit card financing and angel investors.

A financial advisor's business plan should include a detailed financial plan to secure any type of potential investor. This is true for all types of financial advisor business plans including a financial planner business plan and a wealth management business plan.

Where Can I Get a Financial Advisor Business Plan PDF?

You can download our free financial advisor business plan template PDF here. This is a sample financial advisor business plan template you can use in PDF format.

Creating Your Financial Advisor Business Plan

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A  business plan  is a critical step to success as a financial advisor.

An effective financial advisor business plan includes:

• Services you provide
• Commitment and philosophy
• Your ideal client, marketing plan, business goals, and financial numbers

Sample Financial Advisor Business Plan for [Business Name]:

Our financial advisory business, [Business Name], is committed to providing to  affluent women and couples  and closely held businesses:

• Comprehensive financial planning
• Insurance, retirement, and tax planning
• Investment management services

We understand the importance of financial security. Our goal is to guide our clients in making informed decisions. As a result, they can achieve their short-term and long-term financial goals.

Creating Your Financial Planner Business Plan

Executive summary.

[Business Name] is a full-service financial advisory firm located in [City, State].

Our team of experienced advisors offers personalized financial planning advice.

We also offer investment management, retirement planning, insurance planning, estate planning, and tax strategies to clients.

Our mission is to build deep meaningful relationships with our clients. We provide customized solutions that align with their financial goals and values.

Business Description

Our firm will operate as a registered investment advisory firm, offering commission and fee-based services. We offer financial planning to closely held business owners and their family.

Our advisors will assess clients’ financial situations, create tailored financial plans, implement investment strategies, and provide ongoing monitoring and support.

Market Analysis

The market for financial advisory services is continuing to grow. There is an increasing need for financial advice. Our target market comprises high-net-worth individuals, professionals, and closely held businesses in North America. We will continue to expand our reach and opportunities through online marketing, referral partnerships, and virtual consultations.

Financial Planning Services include:

1. Financial Planning

Our firm will offer a comprehensive evaluation of clients’ financial situation. The analysis will include our clients’ goals, cash flow analysis, budgeting, debt management, and risk assessment.

2. Investment Management

Our firm will create custom investment portfolios. The portfolios will include our clients’ risk tolerance, investment objectives, and time horizons.

3. Retirement Planning

We offer retirement income planning and projections. We analyze existing retirement accounts to help our clients maximize their retirement savings.

4. Insurance Planning

We provide insurance planning and analysis. Our review includes an assessment of the current insurance assessment and gaps in coverage.

5. Estate Planning

We assist with estate distribution, legacy planning, wealth preservation, and minimizing tax implications.

6. Tax Strategies

We provide guidance on tax-efficient investment strategies, tax planning, and coordination with clients’ tax professionals.

7. Generational Wealth Planning

We offer generational planning for our clients. As a result, our clients’ children and grandchildren have the tools and resources to create a bright financial future.

Marketing and Sales Strategy

To attract clients, we will implement the following marketing strategies:

1. Website Development

Our goal is to develop an informative and user-friendly website highlighting our services, team, and case studies. We provide weekly blog posts with relevant financial insights.

2. Social Media

We will create a presence on [Name of the social media platforms]. Our firm will consistently engage with our niche market of affluent clients and closely held businesses. We will share helpful financial tips, insight, and industry news.

3. Networking

We will join [name of the business organization], [name of the community events], and [name of online forums]. By doing so, we can build relationships, establish our credibility, and talk with prospective clients.

If you want more referrals, click here:

4. Referral Marketing

Our firm will thank current clients for their business and referrals. We will also communicate the value of receiving warm introductions.

We will continue to expand and grow our network of reciprocal referral partners. By growing our network, we connect with partners who are committed to giving and to getting referrals.

We will develop strategic partnerships with traditional referral partners, such as accountants or attorneys. We will also expand referral partnerships with non-traditional referral partners such as commercial lenders, business bankers, and business brokers.

5. Operations and Management

[Business Name] is managed by experienced financial advisors. Our services include financial planning and investment management.

Our firm will continue to improve our knowledge and skills. As a result, we will provide our clients with the most up-to-date financial solutions.

We leverage technology tools for efficient operations, data security, and streamline client communication.

6. Financial Projections

We will identify our annual revenue goal and then determine and monitor our daily, weekly, monthly, and quarterly numbers.

Based on our actual numbers, we will adjust our financial advisor business plan.

By combining market research and conservative assumptions, we project the following financial performance over the next three years:

a) Year 1: Generate total revenues of $X and achieve a net profit margin of X%.

b) Year 3: Increase total revenue by X% and improve the net profit margin to X%.

c) Year 5: Continue revenue growth, reaching $X, and maintain a net profit margin of X%.

7. Risks and Challenges

The financial advisory industry is highly competitive. Gaining clients’ trust requires consistent performance and proven results.

Market uncertainty and regulatory changes can also impact our business. We will mitigate these risks through continuous professional development, staying informed about market trends, and adapting our strategies accordingly.

Conclusion – Financial Advisor Business Plan

Financial advisors and money coaches need a business plan. The plan should include a solid foundation, winning strategy, and consistent execution of your plan.

A well-crafted business plan provides a roadmap for success. It also helps you achieve their long-term objectives while navigating the ever-changing financial advisory industry.

Related:  11 Reasons Financial Advisors Fail

Business Plan Template for Financial Advisors

• Great for beginners
• Ready-to-use, fully customizable Subcategory
• Get started in seconds

As a financial advisor, having a solid business plan is essential to building a successful practice. It's your roadmap to attract and serve clients, and ultimately achieve long-term success.

ClickUp's Business Plan Template for Financial Advisors is designed to streamline your planning process and help you create a comprehensive strategy that aligns with your goals. With this template, you can:

• Define your business goals and objectives with clarity
• Identify your target market and client profile for effective client acquisition
• Develop marketing plans to promote your services and stand out from the competition

Don't miss out on the opportunity to take your financial advisory business to the next level. Start using ClickUp's Business Plan Template for Financial Advisors today and set yourself up for success!

Business Plan Template for Financial Advisors Benefits

A Business Plan Template for Financial Advisors can provide numerous benefits to help financial advisors achieve long-term success. Here are just a few of them:

• Streamline your business goals and strategies, giving you a clear roadmap to follow
• Define your target market and client profile, allowing you to focus your efforts on the most profitable opportunities
• Develop effective marketing plans to attract and retain clients in a competitive industry
• Provide a comprehensive overview of your business to potential investors or partners
• Set measurable objectives and track your progress towards achieving them
• Identify potential risks and challenges, allowing you to proactively address them
• Enhance your credibility and professionalism in the eyes of clients and industry stakeholders

With a Business Plan Template for Financial Advisors, you can ensure that your business is well-positioned for success in the fast-paced and ever-changing financial advisory industry.

Main Elements of Financial Advisors Business Plan Template

To help financial advisors effectively plan and strategize their business, ClickUp offers a comprehensive Business Plan template with the following key elements:

• Custom Statuses: Track the progress of different sections of your business plan with statuses like Complete, In Progress, Needs Revision, and To Do, ensuring that every aspect of your plan is accounted for and easily manageable.
• Custom Fields: Utilize custom fields such as Reference, Approved, and Section to add specific details and categorize different sections of your business plan, providing a streamlined approach to organizing and accessing vital information.
• Custom Views: Access different perspectives of your business plan with views like Topics, Status, Timeline, Business Plan, and Getting Started Guide, allowing you to focus on specific areas of your plan or get an overview of the entire document effortlessly.

How To Use Business Plan Template for Financial Advisors

If you're a financial advisor looking to create a solid business plan, our Business Plan Template for Financial Advisors can help guide you through the process. Follow these five steps to get started:

1. Define your target market and services

Take the time to identify your target market and the specific services you will offer to them. Are you focusing on retirees, young professionals, or small business owners? Determine who your ideal clients are and what unique value you can provide to them.

Use custom fields in ClickUp to track your target market segments and the services you plan to offer to each segment.

2. Set your business goals and objectives

Establish clear, measurable goals and objectives for your financial advisory business. Do you want to increase your client base by a certain percentage? Are you aiming for a specific revenue target? Setting goals will help you stay focused and motivated as you build your business.

Create Goals in ClickUp to track your business objectives and monitor your progress.

3. Develop a marketing and client acquisition strategy

Outline the strategies and tactics you will use to attract and acquire new clients. This could include digital marketing, referrals, networking events, or partnerships with other professionals. Determine the most effective channels to reach your target market and develop a plan to execute your marketing initiatives.

Use the Board view in ClickUp to create a visual marketing plan and track your progress in acquiring new clients.

4. Create a financial forecast

An essential part of your business plan is a financial forecast. This will help you understand your projected revenue, expenses, and profitability over a specific period. Consider factors such as operating costs, pricing structure, and client retention rates when creating your forecast.

Utilize the Gantt chart in ClickUp to create a timeline for your financial projections and monitor your business's financial health.

5. Monitor, review, and adjust

Once your business plan is in place, it's important to regularly review and monitor your progress. Track key metrics and indicators such as client acquisition rates, revenue growth, and client satisfaction. Analyze the data and make adjustments to your strategies or tactics as needed to ensure you're on track to achieve your business goals.

Use Dashboards in ClickUp to create visual reports and track your business's performance over time.

By following these steps and utilizing our Business Plan Template for Financial Advisors in ClickUp, you'll have a comprehensive plan to guide your financial advisory business towards success.

Get Started with ClickUp’s Business Plan Template for Financial Advisors

Financial advisors can use this Business Plan Template for Financial Advisors to outline their business goals, strategies, target market, target client profile, and marketing plans to achieve long-term success.

First, hit “Add Template” to sign up for ClickUp and add the template to your Workspace. Make sure you designate which Space or location in your Workspace you’d like this template applied.

Next, invite relevant members or guests to your Workspace to start collaborating.

Now you can take advantage of the full potential of this template to create a comprehensive business plan:

• Use the Topics View to organize your business plan into different sections such as goals, strategies, target market, and marketing plans
• The Status View will help you track the progress of each section of your business plan, with statuses like Complete, In Progress, Needs Revision, and To Do
• The Timeline View will give you a visual representation of your business plan's timeline, allowing you to set deadlines and milestones
• The Business Plan View will provide a holistic overview of your entire business plan, allowing you to see how all the sections fit together
• The Getting Started Guide View will give you a step-by-step guide on how to use the template effectively and create a successful business plan
• Utilize custom fields like Reference, Approved, and Section to add additional information and categorize different aspects of your business plan
• Update statuses as you progress through each section and task to keep stakeholders informed of progress
• Monitor and analyze your business plan to ensure it aligns with your goals and objectives
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5 Key Elements to a Financial Advisor Business Plan

As a financial advisor, the idea of building a business plan can seem a low priority—merely an exercise for entrepreneurs trying to launch a startup. But as a business owner, you may know that you should take care of it, but you also know that it’s going to be uncomfortable. Just like avoiding your annual physical or regular car tune-up, not creating a business plan can hurt further down the road.

A lot of the anxiety financial advisors have over building a business plan can be because it’s unfamiliar or daunting. However, research shows that businesses that plan grow 30 percent faster than those that do not . Despite these results, a study by the Financial Planners Association showed that only 28 percent of advisors actually have a business plan.

In this article, we’ll explore some of the common myths surrounding financial advisor business plans. We'll also highlight some signs to watch out for that could indicate your practice is in need of a business plan. Lastly, we'll discuss what elements you need to incorporate into your new plan for the future of your financial advisory practice.

3 Myths Financial Advisors Believe About Business Plan

1. “business plans require a lot of detail and effort to make.”.

This myth is a common one because it is, in certain circumstances, true. For example, if you were just starting your financial advisory practice and wanted to secure a loan from the Small Business Administration, you would want to build a highly comprehensive business plan that covers everything from market analysis to your financial projections.

Fortunately, most financial advisors’ business plans will be for internal use only and serve a narrower scope of purpose. Realistically, building a business plan doesn’t even have to take a full day.

2. “I don’t need a business plan because I’m not trying to grow my practice right now.”

Plenty of financial advisors have settled into a lifestyle practice, plan on retiring soon, or have any number of reasons why they may not want to grow their business . In fact, our data suggests that a full third of advisors aren't actively growing—and that they prefer it that way.

But there’s no law that says a business plan needs to have growth as its goal. Ultimately, the purpose of your business plan is up to you. Succession planning is an excellent reason to craft a business plan, as is wanting to maintain the same level of assets under management (AUM) or client load as you have now. If you want to grow, that’s great; if not, that’s fine too.

3. “I know what my goals are, so I don’t need a business plan.”

Having goals is important, but a business plan isn’t just about defining goals. It’s about making a plan to obtain those goals, a definite set of objectives and expectations you can hold yourself to, criteria for measuring success, and defining those goals in detail.

Even if building a business plan was just about defining goals, it would still be a worthwhile exercise. External pressures and the difficult reality of making changes make it easy to allow goals to slip or morph into something that feels more attainable. Six months down the line, you might discover that the goal you’re currently pursuing bears no resemblance to the one you set out to achieve. Writing your goal down formally ensures that you have something to refer back to when the going gets tough.

How to Tell Whether You Need a Business Plan

Now that you’re familiar with the common misconceptions surrounding a business plan, the next step is to determine whether you need one. At AssetMark, we believe that any financial advisor—no matter where they are on their journey or what stage they’re at in their career—can benefit from a business plan. Furthermore, it’s better to have a plan and not use it than to need one and not have it. That being said, there are some common signs of distress in a practice that a financial advisor business plan can help with:

That being said, there are some common signs of distress in a practice that a financial advisor business plan can help with:

1. Your projects tend to go unfinished.

When there are a lot of great ideas but not enough follow-through, a well-defined business plan can help you focus your efforts and ensure that you hold yourself and your staff to making progress.

2. Your wishlist is growing long.

Similarly to the above, maybe there are just too many things you’d like to do to even get started on them. Again, a business plan can help you prioritize your wishlist and ensure you’re on the right track.

3. You and your staff are suffering from change exhaustion.

In order to reach their goals, many advisors undertake initiative after initiative, project after project, campaign after campaign—at a certain point, all of these efforts drain any reserves you and your team had and it's time for a break. The first thing to do is take that break. Then, after a recharge, a business plan can help you focus your efforts in a sustainable way.

4. Your advisors are starting to feel frustrated.

Frustration can come from many sources. Your advisors could feel like they have an unmanageable number of clients, that their hands are tied in how they serve those clients, that their hours are too long, or their pay isn’t enough. Whatever the issue is, a business plan can help you narrow in on solving the root cause.

Learn how AssetMark can make a difference in your firm's business performance.

What Are the Essential Elements of a Financial Advisor Business Plan?

Knowing when you need a business plan isn’t much good if you don’t know how to put one together. For most advisory firms, these 5 key elements can serve as a financial advisor business plan template.

1. Your Vision

Where are you trying to go? If you don’t have some desired future for your practice, then it doesn’t matter what you do and you don’t need a business plan. But, if you want to bring in more clients, grow AUM, maintain your current caseload, or transition your practice off to a promising junior advisor, then defining that vision will give you the Point B to your Point A.

2. Objectives and Goals

Take your vision and break it down into achievable goals. This could be, for example, increasing your AUM by 15% next year or onboarding 3 new high-net-worth clients. As a best practice, follow the SMART framework—that is, define goals that are specific, measurable, attainable, relevant, and time-bound.

3. A Plan of Action

In order to achieve these goals, you’ll need to establish a plan of action. Assign responsibilities to different members of your practice, set priorities, identify requirements, and document all of this so that whenever the wires get crossed, you’ll know who is supposed to get what done and when.

4. Measurable Metrics

Arguably the most important element of any financial advisor's business plan is the inclusion of metrics. Define the key performance indicators (KPIs) that you’ll track on the way to achieving your vision and goals. Evaluate your progress against these KPIs and, using those metrics, determine whether you need to take corrective action or stay the course.

5. Scheduled Reviews

You need to schedule your plan of action, of course. But, you also need to schedule regular reviews of and management sessions for your business plan. As you progress towards your vision, it's important to evaluate whether that vision still seems realistic or desirable, whether you need to tweak any metrics, reassign duties, and so on.

Build a Plan that Works for You

A financial advisor business plan doesn’t have to take weeks to craft together, nor is it only useful for advisors interested in growing their practice. The important thing to take away is that a business plan should be tailored around your goals. Whatever form it takes should be in service of those goals.

If that prospect seems a bit overwhelming, reach out to an AssetMark business consultant to walk you through the process. Any given financial advisor might make a handful of business plans over the course of their career, but our business consultants have worked with thousands of advisors on their business plans, so we’ve learned a few things about the practices that work best.

Take, for example, financial advisor Kit Tiell's experience. "At the onset of working with AssetMark, my goal was to spend 80 percent of my time in front of clients," said Tiell.

In addition to outsourcing administrative tasks to AssetMark, Tiell also leaned on our business consulting services: "I have also taken advantage of their practice management resources and business coaching to streamline office workflow, create business goals, and develop employee career ladders (among other things). My continued engagement with AssetMark’s elite practice management team has allowed me to continue building the practice that evolves with the current business environment."

If you're interested in building a business plan that—like Tiell's—sets a foundation for your practice, get in touch with us today to get started on your business plan, no matter what your goals are.

"AssetMark’s elite practice management team has allowed me to continue building the practice that evolves with the current business environment. "  -Kit Tiell

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Guide for Financial Advisors: How to Write a Business Plan

• Peregrine Consulting Group
• August 16, 2022
• One Comment

As a financial advisor, creating a solid business plan is paramount to long-term fiscal success — not just for the clients you consult with but also for your own personal goals and larger career aspirations. Drafting a successful business plan can be a difficult enterprise, but the right tools have the potential to become one of the most invaluable assets available.

Key Takeaways:

Before you continue, here are some of the important concepts we will be discussing throughout the following article. 

• How to define a business plan and wh at makes a business plan successful.
• Best ways to market your business plan to customers.
• Part of your business plan should be a solid marketing strategy. Let us help you reach more leads through different digital marketing initiatives. Contact us to get started .

Download our one-page business plan for FREE. Click the download button at the left side of the screen to get started.

What Is A Business Plan, Exactly?

A business plan is not a static document but rather a fluid template, one that can be altered and changed as your particular business (personal or otherwise) evolves over time. No matter what, your business plan should never be thrown out at the first sign of trouble. Rather, ask yourself how you can amend the document in order to put yourself on the path to success. 

In essence, a business plan represents a brief look into where your business finds itself presently, where you would like it to grow within a certain amount of time, and how you’re going to accomplish that growth. Further, it articulates your personal strategies for development and allows your client (or yourself) to see what’s on the horizon. 

How Long Should A Business Plan Be?

A good business plan varies in length depending on the particular business it is being created for. That said, as a general rule of thumb, a stellar business plan and accompanying material should never exceed twenty pages. When it comes to a business plan, the shorter, the better. By keeping your business plan short and sweet, it will be much easier to engage with over time and ensure that prospective clients don’t lose interest.

Upfront, a business plan should at least include these items; executive summary, company description, mission statement, market analysis, the overall organization of business, provided goods and services, marketing strategy , means of funding, future financial projections, and any other supplementary information you can think of.

Although a fully formed business plan can be relatively long, another great idea would be to generate a one-page executive summary (more on that below.) By writing an executive summary, you have the potential to give investors an overview of your business without having to write multiple pages.

Generally speaking, a business plan should range anywhere between fifteen and twenty pages. Keep things short but thorough to ensure you communicate your goals and give an in-depth overview of your business. However, as mentioned, you can also opt for the one-page executive summary to give potential investors a clear introduction to your business. Either way, whether you’re consulting, coaching, planning, or otherwise — choose what works best for you to impress interested parties time after time. 

Essential Elements Of A Business Plan

Below are the most essential aspects of any good business plan, and if followed correctly, can ensure that your financial acumen is never in question; for investors, your clients, and beyond.  

Executive Summary 

First, your business plan should include a summary upfront to communicate each section of the plan. It is an introduction to those reading, so they understand what to expect and how to contextualize your particular goals.

Traditionally these summaries are actually written after the entire plan is finished. That way, you can get a birds-eye view of what key points are within your material — and avoid any missing information in the process.

Quickly engage your readers upfront, and then describe your business. What type of financial advising do you do, your past clients, how do you operate from day to day, and the facts and figures associated with these points? 

Don’t be afraid to articulate your success, and briefly include financial earnings and targets along the way. Just make sure to keep these short and sweet; in many ways, less is more. 

After the introduction and accompanying information, including small descriptions of the next sections within your plan. Discuss all the incoming information so whoever is reading understands what to expect over the next however many pages. 

Company Analysis 

Understand the company you are financially planning for by asking and answering a few key questions; 

• How long ago, and why did you start your business? 
• What are some of your biggest victories since opening? 
• What specifically is your legal structure, and what sort of legalities could we run into (positive or negative) over the course of our partnership?

Really, this is all about providing background for you and your clients. So that everyone can be comfortably on the same page in the long run.

Industry Analysis

It makes sense that you have to understand the industry you’re working within, and although this may seem self-explanatory, it’s helpful to include in a business plan. In a way, it allows you to understand what your competition is doing and what you plan to do. 

What makes other businesses in this sector successful? How do they make money? How do they keep clients? These and so many others are fantastic questions to ask yourself and your client when drafting a plan. 

Also, make sure to include larger questions and answers about; 

• How big is your specific market? 
• What are the trends? 
• Where is this industry headed? 
• How is it growing? 

All these inquiries are in an effort to make relevant decisions during your advisory process, to give yourself and your business the best chance at overall success. 

Customer Analysis

This particular section is one of the most important parts of your business plan. Who are your customers ? What are their demographics, and where do they come from? How do they behave?

It’s your job to predict, based on this information, how these people are going to interact with your business. In the end, that is one of the largest facets of any monetary strategy. 

Yet, it isn’t just about the customers your businesses may serve. BUT also the businesses themselves. Who started these businesses? Where do they come from? What are their belief systems that led to the creation in the first place?  All good things to get in writing and clearly state. 

>> Related Read:  Target Markets for Financial Advisors: Tips to Define, Serve and Grow Your Niche

Tip One quick tip that always comes in handy is Porter’s Five Forces. Essentially, Porter’s Five Forces is a competitive analysis that helps determine any given industry’s strengths and weaknesses. These are; Competition in the industry, Potential of new entrants into the industry, Power of suppliers, Power of customers, Threat of substitute products. Plenty of information can be found online describing Porter’s Five Forces, and we highly suggest you acquaint yourself with the concepts.

Go-to-Market strategy

At this point, you’re well within your business plan. You have described all the aspects that eventually lead to market strategy, and it’s time to put those to practice. 

First, lay out what type of business you’re serving and what type of product(s) they produce. Then talk briefly about how you will be serving that business in the first place.

Next, discuss the prices your advised business is asking out and how those compare to their competitors. Present what the goods or services cost, what they’re being sold for, and how they will make a profit.

Then, simply state the location of your business in relation to any other business that you’re connected with. 

Finally, make clear how this business will be promoted. How will customers hear about the business? Travel to the business? And, how will they become a loyal patron of your business in the first place? 

Wrapping up your business plan is how it will operate day in and day out and how you plan to keep things running smoothly over a specified period of time. 

Mention the everyday events that occur at your business, how you participate in them, and generally how your business runs normally. This bit of the plan needs to reiterate your long-term goals and let people know what you do during your day-to-day that sets you up to achieve those goals. 

Identify your structure of leadership. Who is responsible for particular tasks, and how do you decide what gets done and when? Make clear who runs things, so others can look to them for leadership. 

>> Related Read:  Financial Advisor Coaching Programs: How to Pick the Best

Financial Projection

We’ve reached the end of our plan template, but not before you need to finish up this incredible piece of literature with a full rundown of your finances. This includes; 

Monthly financial statements and projections to help you manage uncertainty, balance sheets, and tax materials. Not forgetting to discuss your income and expenses, mainly, what you’re making (and at what rate) AND what it costs your business to exist on its own. 

Generally, financial projects should extrapolate out within three to five years. Allowing you to realistically forecast for the near future while keeping what comes after on the horizon.

Rounding things off, discuss cash flow projections. That way, you can plainly describe what sort of amount you will need to get all these great ideas up and running. Don’t leave out any associated costs of your business; anything that goes toward making it possible needs to be included full stop. 

One-Page Business Plan Template – What to Include?

A one-page business plan, as the name would suggest, is your business plan distilled down into its simplest form. It is a quick look at all the aspects we’ve talked about, but in paragraph form. That way, you can write briefly about each piece of your specific business plan and generate a template guaranteed to succeed. 

Business Plan Tips: Things to Know Before You Start Writing

Now that you’ve acquainted yourself with the interworking of a business plan, there are some things you should think about before you is putting pen to paper.

Who Should Write A Business Plan?

Although some people may hire outside consultants, the person writing the plan for your business should, in most cases, be yourself. This not only holds you accountable but ensures that you remain the most involved in the overall workings of your particular business. Take pride in that fact, and carve out time to make the perfect business plan. 

Do You Even Need A Business Plan? 

Sort of. It’s true, there are times when you or your clients may not need a dedicated business plan. Plenty of businesses do just fine without them; having said that, creating a business plan means two things; you’re holding yourself accountable to a concrete roadmap that forces you to attempt some of your initial intentions, and it gives you the chance to visualize a clear future goal. With something to strive towards, we’re all much more likely to follow through. 

Understand That Things Change

One of the most useful bits of information to keep in mind when writing and adhering to your business plan is that, frankly, not everything goes according to plan. Moreover, once you’ve chosen a particular path, you inevitably give up another. 

In many ways, this first idea is a hard concept to grasp right out of the gate, but the idea is simple. You’re going to make a business plan and stick to it until something requires you to alter your original method. Then it pays to be flexible and make changes on the fly to cut costs and increase revenue. 

Looking at your business plan holistically means that you have to understand the consequence of your choices. If you make a decision to carry out an action one way, you’ve lost the chance to do it another way. Be okay with that concept, and have confidence in yourself to come to the correct conclusions. After all, it’s your business. 

Funding, Funding, Funding

For most financial advisors, the largest personal backing generally comes directly out of pocket. It’s true that personal savings, credit cards, and investments can take some of the pressure off — but more often than not, you’re going to have to receive some sort of bank loan if you plan on growing your business. Especially if you don’t have the capital on your own. 

First and foremost, don’t be afraid of using bank loans to fund your ideas. This is where your stellar business plan comes in. Any loan officer worth their salt is going to want to see why, how, and when you plan on achieving all the wonderful things you intend to accomplish. It’s not enough that you’re confident in your ideas; the bank must also share in that confidence. 

Have a resolute target for the future of your finances, and don’t forget to provide specific figures on what your present financial status looks like. This will allow the bank to have faith in your pursuits and help your dreams become a reality. 

Make Room For New Hires

If your business is going to be as successful as we think it is, then plan for expansion. Too many financial advisors never think to include new employees in their plan until they’re forced to hire when a problem arises. Don’t wait until you absolutely need to hire an employee or two. Give yourself the breathing room to know that your specific plan includes the option of hiring. 

Growing your business means reaching a point where you alone can not be the only person making decisions and managing assets. Instead, focus on the future by preparing to bring new additions to your team. Individuals who understand and agree with your business plan make suggestions and follow your lead. 

>> Related Read:  Different Financial Advisor Compensation Models

Business Plan Template

We’ve discussed what to expect when making the perfect business plan, how to approach potential pitfalls, and how to look at the bigger picture. Now, let’s dig into how to organize your business plan to maximize success and win the day. 

Before the plan template, it’s important to note that research is key to any successful business plan. Decide and intimately understand your target market, fully acquaint yourself with the type of businesses you would like to work for, and (again) prepare for the unexpected. 

Education is key in these scenarios so that you’re able to know when to push forward or when to pull back. 

Go Out And Achieve

There you have it, a quick look at what makes a business plan and what makes them successful. Hopefully, you’ve gained some valuable insight and can take this information to use whenever needed along your professional journey. 

Remember, at the end of the day, these are just guidelines. Use what you’d like, throw out what you don’t, and manifest your future without fear.

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Essential Parts of a Financial Advisor Business Plan

In the world of finance, foresight is everything, and that extends to how one manages their own business affairs. At the heart of a successful advisory firm lies a well-constructed financial planner business plan. But why is such a plan indispensable?

First and foremost, having a concrete business plan provides clarity. It allows financial advisors to map out their business goals with precision. This ensures every move is calculated and in line with their larger vision. 

This isn’t a luxury—it's a necessity. You wouldn’t advise clients without a detailed financial strategy, right? Similarly, running an advisory firm without a plan can lead to haphazard decisions and missed opportunities.

Moreover, in the realm of small businesses, which many advisory firms fall under, the terrain is fraught with challenges. From competition to regulatory changes, the landscape is ever-evolving.

Through meticulous planning, including identifying potential risks and strategizing on growth opportunities, advisors can navigate these complexities with confidence.

Here's our breakdown of everything you need to include in your comprehensive wealth management business plan. 

The Executive Summary

At the forefront of every robust business plan for financial advisors lies the executive summary. Think of it as the trailer to a blockbuster movie. It provides a concise overview of your business's entire narrative, touching on the highlights, the challenges, and the anticipated outcomes.

For a financial advisor, this section is vital. It encapsulates everything from your firm's mission and operational strategy to financial projections. The executive summary serves a dual purpose. 

First, it's a quick reference tool for those already familiar with your firm. It’s also a comprehensive introduction for potential investors who might be pursuing your plan for the first time.

While the bulk of your business plan dives deep into specifics, the executive summary gives readers an aerial view. It captures the essence of your advisory venture and its potential trajectory.

The Company Overview

The next step is to delve into the specifics of your enterprise with a comprehensive company overview. This section acts as the backbone of your blueprint. It provides critical details about your advisory firm's inception, its goals, and how it operates in the financial landscape.

The company overview addresses the "who, what, and why" of your business. It's where you define your target market, specify your services, and highlight your unique selling propositions. For instance, your firm might lean heavily on social media for client acquisition or financial education. If so, this is the place to note that.

Furthermore, understanding the nuances of cash flow and the financial structure of your business is crucial. This overview provides a clear snapshot for stakeholders, ensuring that they grasp the operational and financial vitality of your advisory firm. It sets the stage, offering context and clarity for the subsequent sections of your plan.

Industry Analysis

The industry analysis is a pivotal section in a financial advisor's business plan. It sheds light on the larger financial landscape in which the advisor operates. It encompasses a thorough competitive analysis, allowing the business owner to understand where their firm stands in relation to peers. 

Recognizing the strengths, weaknesses, opportunities, and threats in the industry provides invaluable insights. Such comprehension forms the bedrock of a sound marketing strategy. Staying informed about the industry's dynamics is essential. It allows an advisor to pivot when necessary, capitalize on emerging trends, and stay ahead in a competitive market.

Customer Analysis

In the realm of financial advising, understanding one's clientele is paramount. A thorough customer analysis provides insights into the specific needs and preferences of the clients in your target market. 

Financial advising clients are all different. Some are seeking wealth management to grow their assets. Others want financial planning for long-term stability, or retirement planning for a secure future. 

Still more need assistance with estate planning to ensure their legacy is passed on as intended. Recognizing these distinct requirements is crucial. 

By comprehensively analyzing the diverse financial objectives of clients, advisors can tailor their services more effectively. Ultimately, this will ensure they meet the unique goals and expectations of each individual they serve.

Competitive Analysis

A competitive analysis is a cornerstone for any RIA business plan. It involves diving deep into the market to understand how your financial advisory firm stacks up against competitors. What strategies are other firms using in their marketing plans? Which financial advisor business models are proving to be the most successful? 

By understanding the strengths and weaknesses of competitors, you can identify potential opportunities and threats in the marketplace. This information can be invaluable. It allows you to fine-tune your services, adjust your marketing strategies, and ultimately create a more resilient and successful business. After all, in the world of finance, knowledge truly is power.

Marketing Plan

Central to any investment advisor business plan is the marketing plan. It's where you lay out strategies to attract and retain clients. The marketing plan outlines how you'll position yourself in the industry. This includes the channels you'll use to reach potential clients and the tactics for engagement. 

Whether it's through social media campaigns, seminars, or referral programs, the marketing plan gives direction on promoting your services effectively. By aligning marketing efforts with overall business goals, you ensure that resources are used efficiently. Ultimately, this will drive growth and enhance your firm's reputation in the financial advisory landscape.

Operations Plan

The operations plan is a blueprint for the day-to-day functioning of a financial advisory firm. It outlines the nuts and bolts of how the business will run. From the client onboarding process to the management of resources. From the roles of members on your team to protocols for service delivery, the operations plan covers it all. 

A well-crafted operations plan ensures smooth operations, minimizes errors, and promotes a consistent, high-quality service experience for clients. Having this plan in place is essential to maintain efficiency, build trust, and nurture a growing client base.

Management Team

The management team section of a financial advisor's business plan highlights the individuals steering the firm towards its goals. It showcases the qualifications, experience, and expertise of key team members, underscoring their ability to execute the business's vision. 

By detailing their backgrounds and roles, potential investors or partners can gauge the leadership's competence and the firm's potential for success. This section provides reassurance to stakeholders that the business is in capable hands and that the team possesses the requisite skills and experience to drive growth, navigate challenges, and make sound financial decisions.

Financial Plan

The financial plan is a pivotal section of a financial advisor's business strategy, mapping out the fiscal foundation and anticipated growth of the firm. This section details the company's current financial status, projected revenue, expenses, and profitability. 

By laying out investment requirements, forecasting cash flows, and setting financial milestones, it offers a clear picture of the business's fiscal health and viability. Stakeholders, including potential investors and lenders, often scrutinize this portion to understand the sustainability of the business and to ascertain the potential return on investment.

Take Planning to the Next Level

Having created a business plan template is, unfortunately, only the first step to success. Lucky for you, Planswell has been perfecting the process of prospecting and closing deals for years. In fact, we’ve spent over $15 million on this learning process. 

We’ve developed a complete system advisors can use to boost their booking and close rate. We guarantee it.

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Financial Advisor Business Plan Sample

Jun.07, 2018

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Table of Content

Do you want to start financial advisor business?

Do you want to start a financial advisor business? Well, there are many benefits of starting this financial advisor business plan, the biggest one of which is the extremely low initial investment required for its startup. Secondly, you can also start it from your home, or a small office or even a virtual location and can still make huge profits. The only problem associated with this business plan for a financial advisor  is that it is never easy for startups to find high-paying clients in the initial run. So, it is highly recommended that you prepare a comprehensive financial consultant business plan which will not only help you attract good clients but will also establish the basis of your company’s operations and future decisions. If you are wondering how to write a good business plan for financial advisor, here we are providing you with the business plan for a financial advisor  business startup named ‘Martin Financial Services’.

Executive Summary

2.1 the business.

Martin Financial Services will be a licensed and registered financial advisory company aimed at solving all your financial problems by providing exceptional financial advisory and consultation services. The company will be owned by Nick Martin, a renowned financial expert, and the company’s main office will be located in Downtown Chicago.

2.2 Management

The success of a startup heavily depends on its staff and management that’s why Martin planned it before developing his financial advisor business model . The company’s management will comprise of sales executives, financial analysts, and insurance consultants.

2.3 Customers

This sample business plan for a financial advisor position also outlines what are the main target customers for a financial advisory firm. Martin Financial Services will provide financial consulting services to individuals, organizations, and businesses located in Chicago.

2.4 Business Target

Our target is to balance the initial cost of the startup with earned profits and to achieve the net profit margin of $10k per month by the end of the first year.

Company Summary

3.1 company owner.

Martin Financial Services will be owned by Nick Martin, a business graduate from the University of Illinois. Martin has more than ten years’ experience of working with various financial organizations including Wells Fargo and Equifax.

3.2 Why the Business is being started

The financial advisor business plan is being started with the purpose of making profits in this industry while also providing quality services.

3.3 How the Business will be started

Before starting your own financial advisor business , you have to plan everything beforehand otherwise you have very lower chances of succeeding in it. Martin Financial Services is a well-planned venture and its exceptional planning will become one of the reasons behind its success. The company will be started in a leased office in Downtown Chicago. In addition to computer systems and usual office inventory, professional financial software will also be procured. The startup summary is as follows:

The detailed startup requirements are given below:

Services for customers

Considering the economic demands of today’s world, there are countless firms that are providing financial advisory services. You can do some research about them and find out what services they are offering to their customers. You can also find many financial advisor business plan free templates on the internet or you can take help from this sample business plan for financial planners . Deciding your services is extremely important since the planning of other subsequent components depend on it. Martin Financial Services will offer a variety of financial advisory and consulting services to its clients from United States. Our main services include:

• Insurance and Tax Consulting
• Accounting and Financial Services Consulting
• Budgeting and Financial Planning
• Financial Auditing
• Estate Planning
• Income Tax Preparation
• Mortgage, Pension, Retirement and Investment Advisory Services
• Asset Management
• Wealth Creation and Wealth Management
• Investment (Business Portfolio) Management

Marketing Analysis of financial advisor business

The most important component of an effective financial advisor business plan is its accurate marketing analysis that’s why Martin acquired the services of marketing experts to help know how to write a business plan for financial advisor and develop a financial advisor marketing plan template . The success or failure of a business plan for a financial advisor  totally depends upon its marketing strategic business plan which can only be developed on the basis of accurate marketing analysis. Marketing analysis is a must-do thing before you develop your financial advisor business plan. If you are starting on a smaller scale, you can do marketing analysis yourself by taking help from this business plan for a financial advisor  or any other financial advisor business plan template available online.

5.1 Market Trends

For finding the marketing trends before starting your business plan for a financial advisor , you can take help from this financial advisor business plan example or any other financial advisor business plan template free available online. This financial advisor marketing plan example also contains information about current industry and market statistics of financial advisory services. Financial advisory industry is one of the booming industries of the United States. Currently, the industry generates more than $56 billion annually with around 121,000 businesses employing more than 215,000 people across the United States. Furthermore, the industry grew by 8.1% over a course of 5 years from 2012 to 2017. This increase is attributed to the economic development and the increase in other industries of the country, thus creating more demand for financial consulting and advisory services.

5.2 Marketing Segmentation

It is very important to analyze the market segmentation of the future customers of your services before you start your business plan for a financial advisor  because a successful and efficient marketing strategy can only be developed after we completely know our potential customers. Our target market is the residential community as well as the corporate sector located in Chicago however, we will primarily focus on our clients from business sector. Our experts have identified the following type of target audience which can become our consumers in future:

The detailed marketing segmentation of our target audience is as follows:

5.2.1 Corporate Sector:

The biggest consumer of our services will be the corporate sector located in the Downtown Chicago ranging from small startups to established multinational companies. This group includes product manufacturers and distributors, real estate owners, hotels, restaurants and food companies, IT and software development firms, branding and advertising agencies as well as many other industries. These businesses will frequently need our advisory services for insurance and tax consultation, asset management, budgeting and financial planning, as well as investment management and auditing.

5.2.2 Institutions & Organizations:

Our second target group comprises of various institutions and organizations located in Manhattan including government organizations, schools, colleges, universities, non-profit organizations, religious and cultural institutes as well as social bodies. This group will also need our financial advisory services for addressing all their financial needs as well as in their budgeting and auditing.

5.2.3 Individuals:

Our third target group consists of individuals including both the employed and retired persons belonging to all age groups. This group will mostly need our services for getting advice and consultation related to mortgages, pension, retirement and investment. The detailed market analysis of our potential customers is given in the following table:

5.3 Business Target

Our main goal is to become the best financial advisory service in Chicago within next 10 years. This goal is not something that can be achieved easily. For achieving this goal, we will have to increase our revenue, create an exceptional clientele and establish a name across the country. Our main goal of the business plan for financial planner can be divided into three main business targets, which are as follows:

• To achieve the net profit margin of $10k/month by first year, $15k by second year, and $25k by third year
• To balance the initial cost of the startup with earned profits by the end of the first year
• To start an online financial advisory service by the end of the first year

5.4 Product Pricing

Product pricing is one of the most important factors in deciding the strategy for a business plan for a financial advisor . After considering the market demands and our current competition, we have priced all our products in the similar ranges as of our competitors.

Like marketing analysis, sales strategy is also an important component of financial advisor business plans so it must be given proper attention before you think about creating your own financial consultant business plan .

6.1 Competitive Analysis

As mentioned earlier, there are more than 121,000 financial advisory companies in the United States, so we can say that we have a tough competition ahead. In addition to that, many international and local banking companies also financial consultation services to their customers, thus making this field even more competitive. Although we have a lot of competitors, we hope to surpass all of them by providing exceptional quality services and unparalleled customer experience.

6.2 Sales Strategy

• We will carry out a large-scale advertising campaign on social media sites
• We will offer a 20% discount on our advisory and consultation services for the first three months of our launch
• We will arrange free financial consultation seminars in various organizations and companies and will thus promote ourselves

6.3 Sales Monthly

Our monthly sales from target groups are forecasted as follows:

6.4 Sales Yearly

Our yearly sales from target groups are forecasted as follows:

6.5 Sales Forecast

Our forecasted sales are given in the following column charts.

The detailed information about the company’s forecasted sales is given in the following table.

Personnel plan

Personnel plan is an important part of a business plan for financial advisor services since it gives an estimate about the staff you require along with their salaries. Martin has developed the following personnel plan for his company.

7.1 Company Staff

Martin will act as the General Manager of the company and will initially hire following people:

• 1 Accountant to maintain financial and other records
• 2 Sales Executives responsible to market and discover new ventures
• 6 Financial Analysts to provide advice on various financial matters
• 2 Insurance Consultant to provide consultation on insurance services
• 2 Customer Representatives to interact with customers
• 1 Front Desk Officer to act as a receptionist

All employees will be hired by following strict testing procedures and all of them will undergo 2 weeks training prior to onboarding.

7.2 Average Salary of Employees

The estimated salaries of the staff required are given in the following table. These salaries can deviate slightly but the total sum will nearly be the same.

Financial Plan

Just like the other plans, you must also prepare a detailed financial plan covering all financial aspects of your financial advisory startup. The financial plan should present a detailed map of the costs of startup, inventory, payroll, equipment, rent, utilities and how these costs will be covered by the earned profits. Also, make sure to carry out a detailed profit and loss analysis of your startup venture. While developing the financial plan, you can take help from various financial advisor business plan examples available online so as to know which things to include in it. Martin has developed the following financial plan for his company.

8.1 Important Assumptions

8.2 brake-even analysis, 8.3 projected profit and loss, 8.3.1 profit monthly, 8.3.2 profit yearly, 8.3.3 gross margin monthly, 8.3.4 gross margin yearly, 8.4 projected cash flow, 8.5 projected balance sheet, 8.6 business ratios.

Download Financial Advisor Business Plan Sample in pdf

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Financial Advisor Business Plan

So, you have devised a financial advisor business plan and are tempted to jump ahead. However, this is one of the biggest blunders one can make, especially in a field like financial advising, which requires much planning before starting your own business.

There is work to do and things to set in place and remember all the research you need to conduct to gather all the information you need in the first place.

So, if you are new to this, walk along, and we will show you how to create the perfect financial advisor business plan template.

Know Your Customers

They say the customer is king, and this is true. A business is only as successful as its customers. So, make sure that you get all the proper market research services. This helps you understand who your customers are and what they expect from you. You need to study this area in detail before you create your financial advisor business plan template.

Know your target customers and what segment they belong to. Age, gender, location, and income levels are some other things that you may have to look into.

Know Your Competition Too

Knowing your customers alone is not enough. For your financial advisor’s business plan to thrive, you must also closely monitor all the competition around you.

This could take the form of other business plans for financial advisors you see around you to indirect competitors like banks, insurance companies, broker-dealers, and other services that people could walk to.

So, determine your strengths and how to use them to keep your customers with you. See how you can do what differs from the rest and what your customers can find only in you.

Analyze the Industry

Any business plan writing service will tell you this is very important for any business to thrive. This holds for your financial advisor’s business plan. So, make sure you conduct a good analysis of the industry using the help of the proper market research service.

In other words, start your financial advice business once you have a fair and transparent idea of the industry you will operate in. Ensure you get all the education you need on the latest market trends. This helps you come up with all the right strategies to make you an expert in the industry.

Create A Marketing Plan

So, once you have analyzed your industry, you can quickly develop a marketing plan. You see, you don’t need the help of a business plan writing service for this, as you have all the strategies to help you.

Ensure you carry out all the right tasks to promote your financial advisor’s business plan. Specify what is unique in what you are offering. Make your prices competitive.

And once you have all of that set in place, remember to spread the word through advertisements. Newspapers, banners, and flyers are some of the traditional mediums by which you can spread the word.

At the same time, remember to use modern methods like your company’s website, with all the right blogs and socially optimized content. Make sure that you approach all the right social media platforms, too. In other words, a solid online presence is significant for your financial advisor’s sample business plan to be successful.

Do all of the above, and you will soon see things as planned when you create your financial advisor business plan template.

The Company Analysis

One of the first things you need to come up with when you sit down to create a business plan for a financial advisor is the company analysis.

Here, you provide all the details of how your business will operate. What was your purpose behind starting a financial advisor business plan? Do you intend to serve individual customers or businesses? What are the milestones that you have in mind?

These questions can give your financial advice business a practical company analysis. Ensure you also put in a brief word about your business’s legal structure and background.

The Executive Summary

Your financial advisor business plan template mainly opens with an executive summary. This is more of an introduction by which you tell readers about your business plan.

This is why you usually develop the executive summary at the end of your financial advisor business plan. What you need to do here is to engage the reader with all the goals and plans of your business. Give them a brief explanation of the type of business you want to run with a little word on your target customers and competitors. That is all you need to include in the executive summary of your financial advisor’s sample business plan.

Get the Management

The right hands can go a long way in giving your business the right kind of success. So, ensure you know who you’re hiring and how they can contribute to your company with their strengths.

This calls for a proper form of recruitment, where you look at each candidate’s background until you have the perfect team in place.

Now For the Operations

Now that you are done with all the plans, it is time to start with all the action. In other words, it is time to put everything into practice and start meeting your goals.

Start with the short-term plans. Focus on serving your customers to the best of your abilities. Make sure that you procure all the supplies that you need for your business at this time. And then, once you find your business going on smoothly. It’s time to think about the long-term goals and milestones you had in mind when preparing the template for your business. This is the pace at which you should go, just as the age-old saying goes: slow and steady wins the race constantly.

Ultimately, remember that money is the main reason you started your business, no matter what the self-help books say. So, ensure you have all the correct files and records. Balance sheets, cash flow statements, and things like assets and liabilities, profits, and losses are put down for later reference.

All this will prevent financial goof-ups at a later date, which commonly occur when one is careless with financial statements.

Now Start Your Business, Financial Advisor

And with that, you can go ahead and start your business. Now that you know what to do, keep learning at every stage of your business.

Remember that coming up with a template and finally launching your business is not the end but just the start. After this, it’s only going to be a forward climb if you keep everything in mind and ensure that you follow every goal and target you set for yourself in your business.

How to Become a Financial Advisor

Becoming a financial advisor can lead to a lucrative career, but the real reward is helping clients achieve their dreams.

Getty Images

As a financial planner, you might work in a bank or brokerage firm or settle into a niche in a smaller firm or as an independent consultant.

"Financial advisor" is more than just a title. It means you've committed to guiding people through their financial journey. You can help others with their money and future goals, guiding them to make smart choices about saving, investing and planning for what's ahead. Depending on factors like experience, location and the type of firm, financial advisor salaries can range from $61,960 to $165,590.

Advisor's Corner

Advisor's Corner is a collection of columns written by certified financial planners, financial advisors and experts for everyday investors like you.

As a financial planner myself, I can tell you that beyond the numbers, the real reward is seeing your clients achieve their dreams. If you're thinking about becoming a financial planner or are already set on it as a career choice, I'll walk you through how to make it happen:

• What is a financial advisor?
• What does a financial advisor do?
• Financial advisor qualifications.
• Important skills for financial advisors.
• How long does becoming a financial advisor take?
• Is being a financial advisor right for you?

What Is a Financial Advisor?

A financial advisor is a trained professional who helps people with their finances. They offer guidance and expertise on the intricacies of managing money, from retirement and estate planning to real estate and investment opportunities.

As a financial planner, you might work in a bank or brokerage firm or settle into a niche in a smaller firm or as an independent consultant. You could also choose to specialize in a specific financial area or work with people who fall within a certain net worth or age bracket.

What Does a Financial Advisor Do?

The role of a financial advisor is as varied as the clients they serve. As Adam Breazeale, a senior financial planner at Schwab Wealth Advisory, puts it, "We look at where our clients are relative to where they want to be, then provide the tools and solutions necessary to create a road map for success."

As a financial advisor, you'll help with financial planning by creating long-term strategies to build wealth and manage risk. We analyze our clients' current financial situation and seek to understand their goals and objectives. "If you understand the psychology of money, and how emotions and childhood experiences impact financial decisions, this will let you better serve and understand your future clients," says Jude Wilson, founder of Centrus Financial Strategies.

Then you develop a tailored plan to help them achieve those goals. You might offer advice on investment options, manage their investment portfolios , recommend insurance needs, map out a tax strategy, or provide any other type of financial planning or advice.

Financial Advisor Qualifications

I can attest that there's no "one right path" to becoming a financial advisor. For instance, my professional journey began at a Japanese investment bank. However, I wasn't able to connect on a deeper level with clients to truly help with their personal financial well-being. I took my career in a new direction and became a certified financial planner, or CFP.

Financial advisor careers are open to almost anyone, which is one of my favorite aspects of the profession. The financial industry is strictly regulated, but the requirements you'll need to meet can depend on the type of service you want to provide.

Many financial planners come from backgrounds in finance, economics or business. I suggest taking courses in investments, taxes, estate planning and risk management to help you get a solid grasp on financial principles, investment strategies and economic trends.

While you don't need a bachelor's degree to become a financial advisor, a career in finance is difficult to start without one. Keep in mind that educational guidelines can depend on your career aspirations, too. For instance, I wanted to become a CFP, which requires CFP Board-approved coursework and a bachelor's degree.

Professional Licenses

Professional licenses are required for some financial advisors. If you want to sell investment products or operate in multiple states, a common occurrence at broker-dealers and banks, you'll need to pass exams administered by the Financial Industry Regulatory Authority, or FINRA. The Securities Industry Essentials (SIE) Exam is a common requirement for many in the financial services industry. You may need to pass additional exams as well, depending on your situation:

• Series 6: The Investment Company and Variable Contracts Products Representative Qualification Examination (IR), required to sell mutual funds, variable annuities or other limited investment products.
• Series 7: The General Securities Representative Qualification Examination (GS), required to sell common and preferred stocks and other fixed-income investments as a stockbroker.
• Series 3 or 31: The National Commodities Futures Exam or the Futures Managed Funds Exam, required to sell commodity or managed futures contracts.
• Series 63: The Uniform Securities Agent State Law Exam, required to satisfy state law registration requirements.
• Series 65: The Uniform Investment Adviser Law Exam, required to provide fee-based investment advisory services.
• Series 66: The Uniform Combined State Law Exam, which merges the Series 63 and 65 exams.

If you establish a practice as an individual, you may also need to register your firm as a registered investment advisor, or RIA, with the Securities and Exchange Commission and register yourself as its representative.

Certifications

These professional certifications can enhance your credibility and are encouraged by financial advisory firms, but they're not mandatory for becoming a financial advisor. Many certifications and designations are available, and deciphering them can feel like navigating a complex maze of acronyms.

The CFP certification is a well-known badge of expertise in the industry. Earning it demands several years in financial planning, a formal degree, clearing the CFP exam and adhering to high ethical standards. You must also act as a fiduciary , which means prioritizing your clients' needs over your own.

In addition to the CFP, other notable financial planner certifications include:

• Chartered Financial Analyst (CFA): A globally recognized certification for investment professionals, especially in the areas of investment management and research.
• Chartered Financial Consultant (ChFC): A certification focused on advanced areas of financial planning, such as retirement, real estate, insurance and income tax planning.
• Certified Investment Management Analyst (CIMA): Focuses on asset management and investment consulting.
• Certified Private Wealth Advisor (CPWA): Designed for professionals who work with high-net-worth clients on wealth management.
• Certified Fund Specialist (CFS): Specializes in mutual funds and the mutual fund industry.
• Personal Financial Specialist (PFS): Offered to certified public accountants, or CPAs, who want to specialize in personal financial planning.

Professional Experience

Starting with internships or entry-level roles is more than just a resume builder; it offers valuable experience in the financial industry. You learn more than the mechanics as you navigate client interactions, strategy crafting and problem solving. The hands-on learning prepares you for future hurdles and deepens your understanding of the industry.

Mentorship, too, is invaluable in this journey. A seasoned mentor not only shares wisdom and strategies but also offers insights based on personal experiences that textbooks can't capture.

Wilson's experience underscores the importance of this. Being among the less than 2% of Black financial planners in the U.S., he faced unique challenges and perspectives. "I recommend to anyone, especially those in the minority, to find a mentor or to intern with a professional," says Wilson.

You may eventually arrive at the crossroads that many financial advisors face: joining an established firm or forging your own path. Both have merits. While existing firms offer stability, going solo can be rewarding for the entrepreneurial at heart.

Important Skills for Financial Advisors

Technical knowledge is undoubtedly essential, yet it's our ability to build trust, understand our clients' needs and effectively communicate that can make all the difference for success. One crucial aspect of being a financial planner is the ability to break down complex financial jargon and explain it to clients in a way they understand.

In my experience, financial advisors should ideally have:

• An ability to build and maintain strong client relationships.
• A keen ear to actively listen to a client's financial worries and goals.
• The acumen to analyze investment opportunities and gauge market trends .
• Creativity to find solutions that fit individual client needs.
• Time management skills to balance client consultations, planning and market research.
• A solid moral compass to uphold the highest standards of integrity and trust.

Financial planning does not use a one-size-fits-all approach, and every client will have different challenges and goals. A versatile skill set can empower you to address these needs effectively.

How Long Does Becoming a Financial Advisor Take?

Your path to becoming a financial advisor depends on where you start your journey. It can vary from a few months to a few years. One of the quickest routes is to get your series licenses with FINRA, which require no prior job experience.

Hazel Secco, a certified financial planner and president and founder of Align Financial Solutions, reflects on her initial journey. "I began with four different licenses: Series 6, 63, 65 and an insurance license. This process took approximately three months before I officially commenced my role as a financial advisor," says Secco.

She didn't stop there. "I decided to pursue the CFP designation right from the beginning of my career. It took me three years to accumulate all the necessary experience and complete the required courses," says Secco.

You must also factor in the time it takes to complete an internship or gather experience.

Michelle Bender, a certified financial planner at Potomac Financial Consultants, says she'd "struggle to bring in" for an interview an applicant who lacked experience and had not taken the appropriate courses.

Is Being a Financial Advisor Right for You?

Becoming a financial advisor can be a fulfilling and rewarding career choice, but it's important to consider whether it's the right fit for you . Think about your strengths and interests and evaluate the educational and regulatory requirements. But above all, consider where your heart lies.

Being a financial advisor requires technical knowledge, but it's more than crunching numbers. It's about nurturing a passion for finance, combined with a genuine desire to help others achieve their financial goals.

10 Best Financial Certifications

Julie Pinkerton Sept. 19, 2023

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Tags: financial advisors , financial literacy , financial goals , investing , money , retirement , financial regulation , careers , second careers , Advisor's Corner

The Most Important Ages for Retirement Planning

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How to Choose the Right Financial Advisor — A Guide for Entrepreneurs Use this guide to select a financial advisor who not only understands your unique financial needs but also has the expertise, experience and connections to support your business and personal goals effectively.

By Shirl Penney • Apr 26, 2024

Key Takeaways

• Business owners need advisors who offer more than just trading skills; they should also assist in goal planning, risk management and legacy establishment.
• Advisors who grasp the unique demands of entrepreneurship are often entrepreneurs themselves.
• When selecting a financial advisor, entrepreneurs should prioritize finding someone with relevant experience guiding clients through various stages of business growth, managing unpredictable cash flow, crafting investment strategies and navigating complex tax scenarios.

Opinions expressed by Entrepreneur contributors are their own.

Because you're a business owner, your financial advisor should know more than how to trade securities. You need an advisor who can help you plan and work toward your financial goals , manage the risks you encounter along the way and build a legacy for the next generation. You need someone who understands the cycles and pressures of entrepreneurship and has a track record to prove it.

Advisors who understand that their entrepreneur clients require more than standard financial services are often entrepreneurs themselves. Entrepreneurial advisors tend to be based in independent "registered investment advisors," or RIAs, overseen by the Securities and Exchange Commission.

In this article, I'll share a few specific things entrepreneurs should look for when choosing a financial advisor .

Related: You Have to 'Date' Your Financial Advisor to Find the Right One — Here Are 3 Tips to Doing Just That.

Look for passion tempered by training and experience

Because they've had experience as RIA owners, these advisors know the stages of business development from startup and early growth through achieving scale and, in some cases, selling the enterprise. Motivated by a fascination with personal finance in the context of business ownership, these advisors either focus on entrepreneurs exclusively or maintain a healthy roster of business-owning clients as a passion project within a broader practice.

Enthusiasm is no substitute for expertise, however. An advisor who can make sense of your business and personal finances has experience managing unpredictable cash flow , crafting investment strategies that complement your business and navigating complex tax scenarios.

An advisor's experience can't be overstressed. Has a particular advisor successfully guided business owners through various stages of growth and increasing complexity? Does this advisor have smart things to say about your industry? If "yes," then it's likely he has navigated challenges similar to those you encounter and can offer advice that's practical and feasible.

Remember, emotion clouds judgment. Knowing your business is everything to you, an entrepreneurial advisor will work to keep you calm and focused — especially when the stakes are high.

Find an advisor who gets business and has connections

Some advisors who specialize in business-owning clients enjoy working with entrepreneurs from a variety of business types, while others prefer going deep into specific niches. The generalist can draw on varied scenarios when formulating solutions for your business, while the specialist enjoys the advantages of concentration — namely expertise and credibility — in your line of business.

The choice will depend on your field and your circumstances. Are you looking for an advisor versed in early-stage fundraising for technology startups, exit-planning options for dentists, or the needs of a franchise restaurant owner in fast-growth mode? The answer should color your selection.

An advisor suited to an entrepreneur like you will have strong connections in finance and finance-adjacent spheres outside wealth management. After all, advisors who can call on investment bankers , tax professionals, insurance consultants and legal experts can put you on solid ground when it comes to spotting industry trends, devising valuation strategies, managing risk and keeping everything on the up-and-up when it comes to tax and estate planning. An advisor with working relationships in these spheres can provide full-spectrum financial insights on your enterprise and perhaps open doors to broader business opportunities.

Related: Is Your Financial Advisor Right For You? Here's A Simple Test To See If It's Time To Move On.

Use these tips to find an advisor you can trust

A major factor in evaluating financial advisors is their potential as a long-term partner. Entrepreneurs should vet potential advisors by asking for references from other clients in similar business phases or industries. These insights can tell you a lot about the advisor's capabilities, work style and overall responsiveness.

Taking the time to check an advisor's professional certifications, compliance history and status as a fiduciary (viewable online at BrokerCheck ) are also essential steps for choosing a wealth manager. Fiduciaries, such as RIA-based advisors, are constrained to put their clients' interests first. Stockbrokers, meanwhile, adhere to a lower standard stipulating only that their advice be broadly "suitable." If you're still unsure whether your advisor is a fiduciary, ask for a signed pledge that will act for you in a fiduciary capacity.

An advisor's transparency about fee calculation and openness about the advisor's compensation sources are significant trust builders and must-haves for avoiding conflicts of interest. It's also critical that the relationship be collaborative. From the start, you want an advisor who proposes solutions that mesh with your personal and business goals. This shows the advisor has already taken time to understand your values and risk appetite and that they aim to provide meaningful advice.

Put "works well with me" at the top of your list

To assess this alignment, start by sharing your vision for and expectations of the relationship. Probe the advisor's investment philosophy and her approach to financial planning and portfolio construction in the context of business ownership. Ask how she tailors her advice to meet the specific needs of entrepreneurs, with case studies and anecdotes to illustrate her concepts. Meeting the team that supports the advisor can also provide insights into the depth and breadth of expertise the advisor's firm offers.

As mentioned, having experiences in common as business owners can support long-term collaboration between you and your advisor. Advisors who run their own businesses possess insight into the challenges and opportunities you face as an entrepreneur, resulting in appropriate advice.

Related: The Truth About Your Financial Advisor

Comprehensive advice for business owners should go beyond business and investment considerations. For most of us, after all, money is just a tool to help us accomplish our personal, family and philanthropic goals. A skilled advisor integrates these personal aspects of financial management with the business to ensure actions taken bolster other important facets of the entrepreneur's life.

Finding the right financial advisor is a crucial step for entrepreneurs eager to improve their financial health and make the most of their opportunities. A suitable advisor blends industry knowledge, experience, networking capabilities and a deep understanding of entrepreneurship. By choosing an advisor who can act as a partner, entrepreneurs can achieve financial strategies that support equally their business and personal goals.

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President and CEO of Dynasty Financial Partners

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Personal Finance

What is a financial advisor.

Our evaluations and opinions are not influenced by our advertising relationships, but we may earn a commission from our partners’ links. This content is created independently from TIME’s editorial staff. Learn more about it.

Managing your money isn’t a once-and-done deal. Instead, it’s a big, ongoing time commitment, especially if you’re trying to save for a down payment, retirement, or child’s college tuition in addition to day-to-day money management. It takes planning and commitment to stay on track toward your financial goals, and it’s common to feel overwhelmed by the process. Fortunately, a financial advisor may be able to take some money tasks off your plate.

If you’re wondering if hiring a financial advisor is the best strategy, here’s what an advisor does, the types available, the pros and cons of working with one, and more.

Empower Financial Advisor

What financial advisors do.

Financial advisors help people manage their money and offer guidance on meeting monetary goals. It’s common for these professionals to offer retirement planning services for clients, but many also do a lot more than that. Here are some responsibilities a financial advisor might handle on your behalf.

• Identify and recommend investments based on your age and risk tolerance.
• Manage investments.
• Help with retirement planning.
• Assist with planning for large expenses, such as college tuition for your child or a home down payment.
• Guide you on estate planning.
• Make recommendations for managing your debt.

Types of financial advisors

The term “financial advisor” can refer to many different types of professionals, including those with the following credentials:

• Certified public accountant (CPA) .
• Personal financial specialist (PFS) .
• Chartered financial analyst (CFA) .
• Investment advisory representative (IAR) .
• Chartered financial consultant (ChFC) .
• Accredited estate planner (AEP) .
• Certified investment management analyst (CIMA) .
• Chartered advisor in philanthropy (CAP) .

Different compensation structures also exist for financial advisors. Some fee-based advisors work on commission only or charge a combination of commission and fees. This means that their recommendations may be suitable for your situation, but the products and investments they recommend also factor into their own earnings.

By contrast, some work on a fee-only model, meaning that potential commissions don’t factor into the equation, making their advice likely to be more objective. Fee-only financial advisors are typically fiduciaries , who provide recommendations that must align with your best interests.

How much do financial advisors cost?

As mentioned, there are different compensation models for financial advisors. Costs also vary depending on several factors, including the level of service required, the advisor’s credentials, and your net worth.

Fee-only financial advisors might charge an hourly rate, flat rate, be paid on retainer, or receive an annual percentage of assets under management (AUM.) AUM percentage rates differ but often fall into the 0.5% to 2% range . So if you have $500,000 in AUM and your fee-only financial advisor charges a 1% annual rate, they’d receive $5,000 in a given year from your portfolio.

If you don’t think that you can afford a financial advisor, don’t despair. There are ways to get free financial advice , even if it is not as comprehensive and detailed as what an advisor would provide.

Find the right financial advisor with WiserAdvisor

Pros and cons, may help you reach financial goals, could free up significant time, can help you plan for unexpected costs, credentials and services vary, cost structures vary, not all are fiduciaries.

One of the most difficult parts about managing your money independently is remaining committed to your goals. The right financial advisor should help you stay on track, whether you’re saving for a particular life event, planning for an asset transfer, or seeking guidance on paying off debt.

Identifying suitable investments, managing those investments, and tracking progress toward financial goals is a large time commitment. Financial advisors who offer one or more of these services could take that work off your plate, freeing up time for other things you enjoy.

It’s often easier to save for a planned expense, as you know what to expect; unplanned expenses are trickier to manage. A financial advisor can offer helpful guidance on handling unexpected costs, building an emergency fund , and more.

“Financial advisor” is a broad term referring to professionals with different credentials and services. For this reason it’s essential to consider your needs and goals to find the right professional. Researching different credentials can also help broaden your understanding of financial advisors’ specialties.

Similarly, cost structures for financial advisors also vary. They may operate on a commission-only, fee-and-commission, or fee-only model. Opting for a fee-only fiduciary advisor is generally the best approach, as these professionals make objective recommendations and are required to act in your best interests. Payment models can also differ, with some financial advisors charging an annual AUM fee, hourly rate, flat fee—or receiving payment on retainer.

Unfortunately, not all financial advisors are fiduciaries. Some are only obligated to make suitable recommendations rather than the best possible recommendations for your needs. For instance, one might recommend a suitable (but perhaps not optimal) product or investment on which they earn a commission. Ask prospective financial advisors if they are fiduciaries before you decide to work with one.

Tips for choosing a financial advisor

Here are a few things to consider as you compare financial advisors.

• Services. Think about the services you need to help improve your financial situation. Do they provide the ones you need?
• Credentials. Financial advisors often have specialized training and education. Consider their areas of specialty as you compare options.
• Fee structure. Ask about their compensation structure and if they receive commissions when you opt for a product or an investment they recommend. Also ask how they’re paid—i.e., hourly rate, percentage of AUM, etc.
• Communication. Determine how often they communicate, how you can reach them, and when you’ll have formal planning sessions to ensure that they communicate in a way that meets your needs.

Alternatives to a Financial Advisor

Financial advisor vs. financial planner.

A financial advisor can refer to one of a broad range of professionals offering financial guidance. Some may be fiduciary advisors; others may not be. Financial planners fall under the umbrella of financial advisors but offer broader planning services that look at your financial life overall, rather than specialize in a field like investment management or estate planning.

Unlike financial advisors with specialties that require specific credentials, financial planners aren’t required to have a specified credential to work in the field. Still, many have earned the certified financial planner (CFP) designation. CFPs both have specialized training and must act as fiduciaries to their clients. However, if they only have a CFP credential, they can’t manage investments for you.

Do-it-yourself research, planning, and management

If you’re relatively financially savvy and have adequate time, you could seek out free financial guidance from a reputable source, create a do-it-yourself financial plan, create your own investment strategy, and manage all of this on your own. This approach could work if you understand the market, different financial products and services, and don’t want to pay the fees a financial advisor charges.

Robo-advisor

If you’re specifically seeking investment help, many brokerages also offer robo-advisor services, which rely on automation to help make investment recommendations and rebalance your portfolio. These services typically cost significantly less than human financial advisors, though you won’t get the benefit of personalized guidance.

Time Stamp: Financial advisors often make money management easier, but they aren’t free

Financial advisors can provide valuable guidance that could improve your money situation. While their services have value, they come at a cost, so it’s essential to ask how they’re compensated. Choosing a fee-only financial advisor may be the best approach, as these professionals are obligated to provide unbiased, objective advice and recommendations.

Frequently asked questions (FAQs)

Why should you get a financial advisor.

Working with the right financial advisor can have several benefits. They could help grow your wealth, get you on track for retirement, plan for unexpected costs, ensure your family’s financial protection should you pass away early, and more. Given how different these areas of expertise are, you will likely need more than one financial advisor.

What should you ask a financial advisor?

As you compare potential advisors, you’ll want to ask several questions, including the following:

• Are you a fiduciary?
• Can you tell me about your fee structure and how you’re compensated?
• Which services do you provide?
• What are your credentials?
• How often would we meet, either in person or virtually, to review my goals and plans?

What Is a CFP?

A CFP is a financial planner who has earned a professional credential, one that requires considerable financial education and training. CFPs are also fiduciaries, meaning their recommendations align with their clients’ best interests. Their specialty is creating a broad financial life plan that encompasses your financial goals such as paying off student loans, building wealth, planning for retirement, and saving for your kids’ college education.

The information presented here is created independently from the TIME editorial staff. To learn more, see our About page.

About Vanguard Personal Advisor

• Overall Rating
• Pros and Cons
• Ways to Invest

How Vanguard Personal Advisor Compares

• Why You Should Trust Us

Vanguard Personal Advisor Review 2024

Paid non-client promotion: Affiliate links for the products on this page are from partners that compensate us (see our advertiser disclosure with our list of partners for more details). However, our opinions are our own. See how we rate investing products to write unbiased product reviews.

0.30% balances under $5 million; those with larger balances pay less

• Check mark icon A check mark. It indicates a confirmation of your intended interaction. Low fees
• Check mark icon A check mark. It indicates a confirmation of your intended interaction. Access to fiduciary advisors
• Check mark icon A check mark. It indicates a confirmation of your intended interaction. Supported account types include individual and joint accounts, traditional and Roth IRAs, trust accounts, and eligible employer-sponsored accounts
• Check mark icon A check mark. It indicates a confirmation of your intended interaction. Account includes automatic portfolio rebalancing and specific strategies to suit different goals
• con icon Two crossed lines that form an 'X'. No 529 plans

Vanguard Personal Advisor is one of two managed accounts offered by Vanguard. The account offers the advantage of hybrid robo-advisor services blended with human advisors to build a custom portfolio and financial plan. 

Vanguard is recognized for its extensive market research, dedicated team of fiduciaries , and holistic approach to financial planning and retirement saving. Vanguard Personal Advisor is a goal-focused account aimed at helping passive investors achieve long-term goals and preserve wealth. 

With a Personal Advisor account, you'll get the convenience of automated portfolio management, plus the benefit of professional oversight and personalized financial planning with Vanguard. Even non-Vanguard accounts can be incorporated in your plan.  

Personal Advisor accounts have a high $50,000 minimum requirement that may turn some potential clients away. On the upside, Vanguard generally charges lower fees on bigger accounts. 

Is Vanguard Personal Advisor Right For You?

Vanguard Personal Advisor is best for those with larger brokerage accounts and complex finances. It's a great way to access automated portfolio management and access to financial advice in one place. However, the high minimum balance makes it less accessible to beginners or folks with smaller investment accounts.

Ultimately, only investors who can use most (if not all) of the account's wealth-building tools and features should open a Vanguard Personal Advisor account. Otherwise, a different, more beginner-friendly and lower-cost robo-advisor is a better idea.

Vanguard Personal Advisor: Overall Rating

Vanguard personal advisor pros and cons, is vanguard personal advisor trustworthy.

The Better Business Bureau gives Vanguard an F rating because of various complaints against the business. Vanguard Personal Advisor previously had a B rating. BBB ratings range from A+ to F, and this rating reflects the bureau's opinion of how well Vanguard interacts with its customers. 

The BBB also considers several other factors when evaluating businesses. These include type of business, time in business, customer complaint history, advertising issues, and licensing and government actions. But ratings don't guarantee a company's reliability or performance.

In November 2023, an investor lawsuit against Vanguard alleged the company mishandled target-date funds and potentially breached fiduciary duty. The original lawsuit was filed in March 2022. Vanguard associates attempted to dismiss the lawsuit, but a federal judge in Philadelphia threw out that petition.

In April 2023, a former employee of Vanguard filed a lawsuit against the firm for alleged gender, age, and religious discrimination that led to the eventual firing of the ex-employee. Joseph Rothman who was aged 57 at the time of firing. He believes his age and Jewish faith to be part of the reason for his sudden termination. Vanguard has so far denied these allegations. 

In 2022, Vanguard agreed to pay a  $6.25 million settlement  with Massachusetts Secretary of State William Galvin for allegedly failing to inform target-date fund investors of big tax bills.

Ways to Invest with Vanguard Personal Advisor

One of the biggest perks of Vanguard's investment management and financial planning services is that clients can work closely with financial advisors . You can guidance on:

• Income changes
• Health care costs
• Spending in retirement
• Goal prioritization
• Debt Management
• Tax strategies

Vanguard Personal Advisor can manage the following account types:

• Individual and joint taxable account
• Traditional IRA
• Rollover IRA

Investment Options

Vanguard Personal Advisor offers US and international ETFs and mutual funds . Vanguard's approach to diversified portfolios involves talking with a financial advisor about what you'd like included in your customized portfolio. You'll choose one of the three investment strategies:

• All-index investment option: Investment strategy that invests funds into low-cost Vanguard ETFs from U.S. and international stock and bond markets. This option is best for folks with higher taxable income as it uses tax-exempt investments for taxable accounts. 
• Active/index investment option: Investment strategy of an actively managed blend of Vanguard ETFs and mutual funds. This option may include three Advice Select funds. This option is best for folks willing to pay higher advisory fees and aren't afraid of making risky investment decisions.
• ESG investment option: An environmental, social, and governance ( ESG ) portfolio of Vanguard ETFs, emphasizing ESG third-party index providers. It also includes a non-ESG bond ETF for portfolio diversification. 

Each investment strategy charges its own annual advisory fee (more on that below). 

Vanguard Personal Advisor Fees

The standard advisory fee for Vanguard Personal Advisor is only 0.30%. This is very competitive for the hybrid automated investing/advisor-managed account space. Plus, individuals with higher account balances can pay even less. See its tiered fee schedule below:

• Balances less than $5 million: 0.30%
• Balances between $5 million and $10 million: 0.20%
• Balances between $10 million and $25 million: 0.10%
• Balances over $25 million: 0.05%

Both the all-index and ESG investment strategies charge an annual advisory fee of $35 per $10,000. The active/index investment strategy charges a $40 advisory fee per $10,000. 

You'll also be subject to expense ratios, but Vanguard offers some of the industry's lowest ETF and mutual fund expense ratios. 

Vanguard Personal Advisor — Frequently Asked Questions (FAQs)

Vanguard Personal Advisor blends automated investing with access to human financial advisors. Investors get the convenience of automated management on top of a personalized approach to financial planning. Vanguard Personal Advisor is ideal for individuals with at least $50,000 in investable assets.

Unlike most other robo-advisors that rely solely on algorithms to manage investments, Vanguard Personal Advisor also offers certified financial advisors' personalized touch and expertise. However, it charges a much higher minimum compared with other automated platforms. 

Vanguard Personal Advisor charges an annual advisory fee starting at 0.30%. It's a tiered fee, so the more that is in your account, the lower your fee. This fee is competitive within the industry, especially considering the level of personalized service and access to human advisors. 

You can discuss the types of assets you'd like in your Vanguard Personal Advisor account with a Vanguard advisor. But can't hand-pick individual stocks, bonds, or other investable securities. Advisors aim to build a diversified portfolio using Vanguard's broad array of low-cost ETFs and mutual funds. Still, they can accommodate requests for specific investments if they align with the client's overall investment strategy and risk profile.

Communicating with Vanguard financial advisors primarily occurs over phone, email, and video conferencing. This flexibility ensures clients have regular check-ins, portfolio reviews, and discussions about their financial goals and needs.

How to Set Up a Vanguard Personal Advisor Account

You can set up your taxable brokerage account over the phone or online, and you'll initially need to provide information on things like time horizon, risk tolerance, non-Vanguard assets, and investing goals. After this, you'll have to schedule a meeting with an advisor. That advisor will then build you a customized financial plan. This process can take a few weeks. 

Prospective investors should also note that Vanguard won't advise you on investment accounts/assets held outside of the brokerage, nor will it offer advice on UGMA/UTMA custodial accounts, ineligible 401(k)s or 403(b)s, or 529 plans. 

Vanguard Personal Advisor vs. Betterment

Vanguard Personal Advisor and Betterment both cater to hands-off investors. But Betterment is the less expensive option for robo-advice. You don't need to meet a minimum to use its most basic account, and even if you don't have at least $100,000 for its advisor-managed premium account, you can still purchase CFP consultation packages.

When it comes to fees, you'll pay more annually at Betterment if you want to use unlimited CFP guidance (it charges a 0.65% fee for this). But you'll need less ($50,000) to work with a Vanguard Advisor.

Betterment invests funds into ETFs and cryptocurrencies, while Vanguard Personal Advisor offers ETFs and mutual funds . So Vanguard is better for those interested in trading mutual funds, and Betterment is better for investors interested in crypto. 

Betterment review

Vanguard Personal Advisor vs. Fidelity Personalized Planning & Advice

Vanguard and Fidelity Brokerage both offer an array of brokerage services in addition to portfolio management for higher-net-worth individuals. Both account types offer ongoing, one-on-one support from a financial advisor.

You can get unlimited one-on-one human advisor access with a Fidelity Go account of $25,000 or more. However, this also triggers a 0.35% annual advisory fee. Fidelity is the overall better option for smaller accounts. Plus, there is no minimum requirement or fee for balances under $25,000. Fidelity Go's mutual funds also have no expense ratios, transaction fees, or commissions. 

Vanguard Personal Advisor is the better choice if you're looking to invest in low-cost ETFs, which Fidelity Go doesn't offer. Vanguard also rewards higher account balances with lower fees, making it the stronger choice for investors with huge account balances. 

Fidelity investing review

Methodology: How We Reviewed Vanguard Personal Advisor 

We reviewed Vanguard Personal Advisor using Business Insider's rating methodology for investing platforms to examine account types, investment options, pricing, and overall customer experience when reviewing online brokerages. Brokerages are rated between 0 to 5. 

Online brokerages generally offer multiple assets, trading tools, educational resources, low fees, and more. While some brokerages are better for advanced/active investors, other platforms are better for beginner/passive investors. Vanguard Personal Advisor was evaluated with a focus on how it performs in each category.

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