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Tag: Small Business

Expense Checklist for an Advisory Firm’s First Year | Financial Advisors
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Expense Checklist for an Advisory Firm’s First Year | Financial Advisors

Many ingredients go into a financial advisory firm's recipe for success. And building an advisory firm from scratch goes far beyond a standard business plan. An outline of your goals will help direct your steps, but knowing the specific costs to expect will improve your success rate. Having a realistic view of what it takes to start an independent firm and make it through the first year in business should be a part of every business plan, regardless of your experience level. Remember that there are many business models financial advisors can ascribe to (joining another firm, etc.) and still be the boss. That said, here is a breakdown of the startup and first-year expenses of launching an independent firm. Whether you are a career changer starting a new firm, breaking away from a differe...
Why Illiquid Wealth is Valuable to Financial Advisors | Financial Advisors
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Why Illiquid Wealth is Valuable to Financial Advisors | Financial Advisors

Small business has long been said to be the backbone of the U.S. economy for its ability to create new jobs and spur job expansion. In fact, small business creates two-thirds of new jobs and employs 46.8% of the private workforce, according to 2021 Small Business Administration data. The COVID-19 pandemic hit small businesses hard, especially minority-owned businesses. However, many have rebounded and continue to grow. Financial advisors often market to a niche of potential clients, and business owners are regularly cited as an optimal market. However, when advisors talk with a prospective client about their current investments, rarely do they discuss one of the largest allocations in the client's portfolio – their ownership interest in the business itself. In doing so, they miss out on...