How to Start a Wealth Management Business

Did you know that in the United States and Canada, there is over $55 trillion in private wealth up for grabs? This figure should be enough to make many people consider opening their own wealth management practice.

The independent wealth management sector is one that has seen steady growth in recent years. Is it time for you to join the industry? So, how do you set yourself up as a wealth manager?

Here’s how to start a wealth management business.

Follow the Rules

Chances are if you’re already a wealth manager, you’re working for another company. Before you set yourself up in business, you’ll need to leave your current employment.

Make sure you follow the rules and etiquette surrounding leaving your current employer. Check your contract as there may be a non-compete clause that you must adhere to.

Research Your Competition

The first thing you need to do when setting up a wealth management firm is to see what competition there is out there. Understanding what your future competitors are up to will help you to create a point of difference and a unique selling point for your business.

Don’t just find out about the services they offer, find out how much they charge for them too.

Create a Business Plan

Once you have a clear understanding of how you can compete with your competitors, you can create a business plan. Your business plan should include how you plan on getting clients, details about the services you’ll offer, how you’ll market yourself, and a breakdown of your fees.

As a wealth manager, you should be able to create a formal business plan without outside help, although it is always useful to have a second set of eyes look over your plans.

Get Funding

You’ll need some start up costs for premises and marketing costs as well as to cover salaries until the clients start to emerge. There are several routes you could go down to get funding for your wealth management business.

The first option is to take out a small business loan. This will help you retain autonomy, however, you will need to pay this back at some point in the near future.

Your second option would be to seek private investment. You’ll lose a certain degree of autonomy doing this, however, you won’t necessarily need to pay this type of funding back in the same way as you would do with a loan.

Set Up Billing Services

You’ll need a way for your clients to pay you. Due to the complexities of wealth management, you need more than a straightforward billing process. Set yourself up with a wealth management billing program.

You can learn more about wealth manager billing from Redi2 Technologies here.