Almost everyone needs financial assistance. Whether its with paying off high interest credit cards, investing in the stock market or starting a retirement fund. A financial advisor will guide clients in making informed decisions about their financial situation. You can offer a wide range of services including investing, bill consolidation, estate planning, savings programs, college education funds and even small business financing.
KNOWLEDGE, SKILLS AND ABILITIES:
You should have extensive training and knowledge in the financial industry. This includes banking, investing and the stock market. It also helps to be familiar with loan procedures and where to research best interest rates. Knowledge of financial industry products including IRA’s, mutual funds, money market accounts, and other related services. Keep in mind, depending on the type of financial advise that you plan to offer, you may need to be licensed or bonded.
If you have experience dealing with bankruptcy, you can find customers by offering free bankruptcy clinics or workshops at your local library, community center or college campus. Likewise, if your area of expertise in the stock market or investing, free seminars are a great way to network and meet potential customers. Write a press release for your new business, highlighting your specialty and fax it to your local newspapers. Mention in the press release that the first consultation with new clients is free!
START UP COSTS:
You will need a computer and other general office equipment. A modem and internet connection is very important so that you can get instant access to stock quotes, banking rates and other financial information. A professional business brochure, business card and letterhead is also an important marketing tool.
Qualified and experienced financial consultants generally earn $40 to $100 per hour. Many financial advisors work on a percentage of the assets managed in a customers “portfolio.” Therefore, a 2 percent commission on $1 million in assets in $20,000. You may also want to set standard rates for typical services. For instance, bankruptcy assistance could be priced at around $500. Likewise, mortgage loan assistance could be priced at $250. Once your client base has been established, you should earn no less than $50,000 per year.
It is important to decide what type of financial services you are most qualified to offer and focus in that area. You may also need to contact your local state or county business office to find out what type of licenses, certifications or credentials you will need to operate a financial service business. Some states may require that you be bonded, so you will want to make sure that you have met all required guidelines before accepting payment for your services.
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