An 8-Step Guide To Starting A Financial Planning Firm

A financial firm is a highly lucrative investment venture, but it requires hard work and dedication to create a unique practice that stands out from the competition. Not only does it come with the advantage of flexible working hours, monetary benefits, and self-governance, but it also offers the potential for long-term financial success. With the right strategy and dedication, a financial firm can be a great way to build a successful and profitable business.

Below is an eight-step guide to starting a financial planning firm:

1. Acquire Advanced Tools

Technology has significantly enhanced financial planning. You don’t have to manage several client portfolios manually. It’s error-prone and time-consuming. Moreover, it’ll be challenging to convince clients to work with you if you stick to manual systems. 

Acquiring advanced software helps you keep up with the latest trends in financial planning. You can also serve numerous clients because such tools simplify work. The best ones on the market feature sophisticated algorithms to analyze and generate typical reports like income and expense sheets, balance sheets, cash flow statements, ratio analysis, and profit and loss statements.

You can click here to get an overview of how advanced financial software can help you. Coupled with customer relationship management features, financial planning tools will significantly maximize your clients’ experience, and they won’t hesitate to work with you repeatedly.

2. Write A Business Plan

A business plan is a crucial document for any startup. It defines the reason for the existence of your financial planning firm and outlines how the business objectives will be met. Typical sections include market analysis, client demographics, marketing plan, cost and revenue projections, core values, and mission and vision statements. 

It also defines what you plan to achieve now and in the future and the strategies you’ll use to get there. A well-written business plan sets the pace for the success of your financial planning firm. Remember, failure to plan is planning to fail. So, write the business plan and follow it to the letter.

3. Create A Budget

It’s essential to build a budget for your financial planning business. So, start by planning for the startup costs, at least for the first years of your business. Know how much you’ll spend on office rent, overhead costs, technology, hiring staff, team member salaries, utilities, and branding, among others. 

Then, do revenue projects, ensuring you remain realistic regarding the number of customers you expect to serve weekly or monthly. Your savings plus the projected revenue should meet all the expenses. If expenses are higher, you may want to cut some costs or borrow cash to fill the gap.

4. Develop Relationships

Developing meaningful relationships with the appropriate stakeholders is crucial. Firstly, you may want to identify a financial planning mentor so they can advise you on how to start. Their experience in business will give you invaluable insights and help you avoid committing typical startup mistakes. They can also equip you with the know-how to solve the problems you encounter in your business. 

Another relationship you can form is with your community members. It’ll enable you to understand what people want in financial planning. You may also spot talents from individuals skilled at giving excellent financial advice and hire them in your firm. 

Also, build connections with local government officials, tax authorities, suppliers, and potential partners like attorneys and insurance providers. These associations help you quickly gain a footing in your business, positioning you for success. 

5. Obtain A License

You must obtain a business license indicating you’re a certified financial planner. There’s no denying the influx of quacks into the industry without the relevant academic qualifications and professional experience. It’ll be challenging to acquire long-term clients without proving your worth. So, go to the local authorities and apply for a license for your business.

In most cases, you’ll pay a specified sum for the license, with requirements for annual renewal. The good thing is that most licenses for small and medium enterprises are relatively affordable.

6. Begin Your Registration

Once you’ve completed all the preliminaries, the next thing is registering your business. Herein, you must provide your certification indicating you’re qualified as a financial planner. Your certification increases the chances of your business approval. You must also provide your firm’s name, contact information, physical address, and business bank account. 

7. Set Up Your Office

Despite the tendency of modern businesses to operate online fully, it’s still advisable to set up a physical office where you’ll meet clients and host your staff. The traditional office setup is still beneficial, especially if you want to serve walk-in clients. The office size you choose will depend on the number of staff you intend to hire. Don’t forget meeting spaces for consultations with clients and internal meetings. 

Short-term leases should be your go-to option as you strive to gain ground. You may book a specific location, only to realize it isn’t the best a few months later. With a short-term lease, you can quickly relocate to a better place. On the same note, you may also want to try coworking spaces, where you can book shared office spaces for as short as one day.

Next, furnish your office to make it comfortable and functional. Purchase ergonomic desks and chairs, not forgetting sofas and coffee tables where your staff and clients can take a breather now and then. Also, purchase the required computing devices, including servers, monitors, central processing units (CPUs), keyboards, mice, telephone systems, routers, and network cables.

8. Staff Your Company

Finally, it’s time to onboard the right talent to your firm. You may need to hire financial analysts, associate advisors, legal advisors, accountants, service advisors, and secretaries. Don’t rush through the hiring process. Take enough time to scrutinize the applicants to ensure they’re a perfect fit for your financial planning firm.


Starting a financial planning firm requires dedicating your time and energy to making your vision a reality. Even though risks are involved, they shouldn’t deter you from setting up your business. Learn about the different aspects of financial planning and find the right tools to help simplify your work for you. Getting the essential details right before launching your firm sets you up for success.

Leave a Comment