Are you ready to start your career as an investment advisor and are considering joining a large investment firm? Or have you been working for a large firm and are getting frustrated by your lack of freedom to serve your clients in the way you want? No matter which group you fit in, there are a lot of good reasons why you should consider starting your own independent, fee-based advisor business. As a fiduciary working independently, you can act as a true counselor to your clients and help them with everything from saving for retirement to adjusting to an empty nest. Though the benefits of going into business for yourself are endless, I like to point out these three as the most compelling.
1. Building a Business
If you work for a large firm, you are not building your own business. You are, instead, building a business for someone else. If you leave, you’re left with only the money you’ve managed to save from your years of labor. I know all the steps involved with starting your own fee-based advisory business from establishing your monthly planning services to finding ways to explain your fee structure to clients can seem overwhelming. But when you realize that all of this leads to building something sustainable that can make you money for years to come and even be left as a legacy to your heirs, you’ll see that the effort is well worth it. Most of those who get into this business do it because they want to make their clients’ lives better. When you go into business for yourself, you have the flexibility and ability to do just that while building something profitable for you and your family.
Yes, compliance can be a scary word – especially for those who’ve worked for big firms and seen how it can tie their hands. When you go into business for yourself as a fee-based advisor, though, much of that compliance falls away. You get to peek behind the curtain, so to speak, and see that the only thing you’re really obligated to do is make suggestions that are best for your clients. You simply don’t have to deal with all the red tape that is involved in big firms. If you are acting in the best interest of your clients, compliance is rarely an issue for the independent advisor.
As the employee of a large firm, you probably made around 30-40% of the profit when it came to selling products or services. When you work for yourself, you keep all 100%. Of course, there will be some expenses such as an office and other employees should you choose to have them, but your profitability will be much higher. When you don’t have to give more than half of your earnings to a corporation, you can use that money to improve your client experience and truly create the business of your dreams. You’ll also be able to maintain a better work-life balance by taking time off to spend with your family, knowing that you have enough profit coming in to do so.
I know that starting your own business is scary. If you’re just starting out in the business world, you might think it’s safer and simpler to just go work for someone else. And if you’ve been in the business awhile, you might be afraid of change and what that will mean for your lifestyle. I’ve been in this business – both with a large company and as an independent advisor – for over 20 years and I can tell you that yes, it is scary. But it’s absolutely, 100% worth it. If you’re interested in starting your own fee-based independent advisor business, please drop a line below. I’d love to show you how I can help.