Business Overview

A financial consulting firm helps individuals and small businesses manage and grow their wealth. You are more likely to service individuals than large corporations, but your small business should be prepared to do both. Clients will look to you for detailed financial information, informed financial forecasting, and ways to invest to achieve their short-term and long-term goals.

Who is this business right for?

This business is best for someone who understands finance inside and out. Prior experience working as a consultant for another firm is ideal, but any experience in investment and wealth management is helpful. A formal education in subjects such as finance can give you a solid knowledge base to work from, and certifications in particular kinds of financial advising will help you further your skills.

What happens during a typical day at a financial consulting firm?

There are several daily activities in the life of a financial consultant. You may spend time prospecting for new clients, helping your existing client base (which ranges from reviewing their portfolios to meeting with them in person), filing paperwork (such as compliance reports and the records of your clients) and using various software and other methods to conduct financial planning.

What is the target market?

Younger clients, such as those who are completing college degrees and/or coming into their inheritances, may be curious about financial planning for the first time. They are more likely to be open-minded about the advice you give and, if they like the results you deliver, may actually become lifelong clients.

How does a financial consulting firm make money?

Two ways that financial consultants make money are to take a percentage of the sales charge (basically, a commission) made by the client when they invest and to receive a “trail” from some of the operating expenses of an investment such as a mutual fund. Other consultants are paid by certain fees they charge clients, and some consultants become fee-only advisors.

What is the growth potential for a financial consulting firm?

The growth potential for this business is immense. The Bureau of Labor Statistics projects this field to grow by thirty percent between 2014 and 2024, aided in part by rising life expectancy and the increased need for financial planning.