The need for financial advice isn’t going away anytime soon; as millennials make their way into the professional sector, a new crop of individuals needing key financial guidance will arrive. If you’re looking to catapult your finance career, perhaps you’ve considered opening your own financial advisory firm. With a variety of prospective clients to expect, many professionals in the finance industry are taking the leap and opening their own practice to set themselves up for personal success. If you’re serious about beginning your own firm, take the following aspects of the business into consideration.

Consider Professional Help

If you’ve never run a business on your own, prepare to be stressed. It’s the reality of the endeavor, but there are ways to minimize the frustration and confusion that often accompany business ventures of this type. Because so many financial advisors have made the move to private practice, new companies have come out of the woodwork that are dedicated to helping finance professionals begin their own practice. They’ll help with every challenge and roadblock, from finding the office space to ensuring your business adheres to compliance laws. Note: these types of companies understand that the advice and guidance they provide is valuable, and that value is reflected in service prices. If you have the capital to dedicate to such a service, it’s definitely a worthy idea to consider when opening your own firm. 

Do You Have the Finances to Handle This Venture?

It’s important to assess your own financial wealth and capabilities before breaking ground on your new practice. Do you have the resources to not only get your firm up and running but handle your own living expenses at the same time? Is your family prepared to handle budget costs that may be allocated to your business? Perhaps you’re considering pursuing a loan from the SBA or a private lender. It’s important to sit down and detail your financial plans; determining your capital needs is the first step in opening your own firm. If you’ll need to pursue a loan, consider your resources. You could request a grant from the Small Business Administration. You might also pursue a loan from private angel investors that will take a cut of your profits in exchange for immediate cash. There are numerous options, but it’s important to nail down the best route for your needs.

Consider Your Hiring Needs

While you may be able to handle clients on your own in the beginning, you’ll likely need to hire staff as your business expands. You may find you need to start looking just a few months in, or you may find that you can handle the business for an entire year before hiring. When you do decide to hire help, consider interns and entry-level professionals looking for experience. Young and eager to learn, these individuals can be groomed and learn your processes exactly as you prefer. Another benefit? Lower salary requirements. Hiring another CFA means paying a salary similar to what you’re bringing home. Don’t think your budget can’t handle it? Invest in your employees. Putting time and money into a promising individual can mean grooming a firm partner in the years to come. Consider offering incentives to entry-level employees who express an interest in moving up in the ranks. Encourage these individuals to pursue their charter; pay for their exam fees, purchase study materials from companies like Crush the Financial Analyst Exam, and encourage them to spend a few hours each week studying. These little, one-time investments can pay off in a big way when they do receive their CFA designation, and your support is sure to inspire company loyalty—something every business owner hopes for.

Opening your own firm isn’t easy, but with the right team, tenacity, and strategy, you can make your business aspirations a reality. Consider these techniques and get started on your goals today.