There are plenty of perks to being an entrepreneurial advisor, which is why it’s such a fast-growing market. When you’re this type of advisor, you can act as a counselor to your clients and your advice doesn’t have to be limited to straight financial matters. I routinely talk to my clients about issues such as dealing with family discord and finding happiness and meaning in their careers. If you’re thinking about starting your own entrepreneurial advisor business, you might be wondering what you need to get started. Specifically, many new advisors wonder which licenses they need. Do you need a Series 7 license to become an entrepreneurial advisor? The answer is no, and here is what you need instead.

What is a Series 7?

The Series 7 license is for those who want to buy and sell stocks and receive a commission for it. When you get the Series 7, you put yourself in the role of a salesperson instead of an investment advisor and counselor. It’s difficult to maintain a high level of integrity and eliminate conflicts of interest when you’re making money off the products you sell.

What is a Series 65?

On the other hand, a Series 65 is a securities license that allows individuals to act as investment advisors to their clients. When you take your Series 65 exam and receive your license, you can then be a fiduciary to your clients, putting their interests first, and ensuring that all advice you give them benefits them. There are no conflicts of interest because you get paid by creating a planning service with an associated fee instead of getting commissions from what you sell. You’re then free to expand the range of topics you discuss with your clients and create a relationship based on trust.

Which One You Need

To be an independent advisor, you only need the Series 65 license. With the Series 65, you can provide financial advice and help your clients decide which financial products are best for their unique situation. Because you will not be buying and selling stocks and will not receive a commission for any sales, you do not need a Series 7.

When you get a Series 7, you are putting yourself in the position of producer instead of a business owner. This automatically transfers your focus to selling as much as possible instead of concentrating on what matters: running your business like a business and helping your clients. The way to build your legacy and your wealth is to create a business that is sustainable, can grow even in difficult economic times, and is personally fulfilling to you. Being an independent advisor offers this and much more, which is why I’ve been doing it for almost 20 years and why I’m passionate about helping others enter the business.

Ready to start your journey as an independent advisor? Take our Evolved Advisor course for answers to all your questions and a step-by-step guide on how to launch your business. And, as always, if you have questions or comments about this post, please leave them below so we can continue the conversation.