A financial services business entails offering financial advice to clients and helping them plan and manage their money to boost personal economic growth. Financial services are numerous and include areas like retirement planning, saving, asset management, setting and achieving financial goals. However, there has been an increased need for financial services by baby boomers. They are seeking to be knowledgeable about financial planning and development. Therefore, a financial services business could be quite prosperous if marketed in the right channels.
How to start a financial services business
Research
Conduct a research to determine other financial services businesses within your area and the type of services they offer. Note the companies that provide the services you intend to offer. Go through their websites, brochures and advertisements to understand how they reach out to clients. Also, note any unique services or after market services they provide that make them stand out from competition. Gather crucial business pointers and learn from their success and failures.Understand state laws
Just like all businesses, financial services companies are governed by state laws. Before offering financial services, you are required to obtain a business license. The licensing requirements differ from state to state. Thus, contact your state’s finance officer for registration and licensing details.Obtain a law or investment license
Offering financial services also means that you will be investing on behalf of your clients. Therefore, if you will be buying or selling stock, mutual funds and conducting other investment transactions on behalf of your customers, you must obtain an investment license or insurance license. For businesses that will offer legal advice too, they should acquire a license to practice law.Determine services and fees
After you acquire the necessary licenses, determine the financial services you will offering and the fees you will be charging for each service. Remember that you had conducted a market research. So, you be able to tell what your competitors charge and set your fees slightly higher or lower depending on your service packages. In most cases, financial services firms charge a fee based on; the type of services they offer, a flat rate fee, a retainer or a percentage based on the amount of business it conducts for a client.Data security
Running a financial services business means holding crucial client information. This refers to details of investments, their savings, their bank details and sources of income among others. Such information is considered confidential and critical for both your firm and client. Such information can be a valuable asset to hacker and your client’s competitors. Hence, most customers will sign a confidentiality agreement before agreeing to work with you. To avoid falling into the data breach trap, ensure that you invest in a good security system that protects client data, your computers, and data storage gadgets. Watchpointdata.com offers cyber security information and systems that provide the protection as mentioned above. Do not wait until your system is hacked and client information misused to act. Make sure network security is being addressed.
Financial services businesses are set to grow as the need for financial advice continues to grow. The trick is investing in the right marketing channels.
