How To Start A Financial Consulting Firm. Step By Step Guide

By choosing a consulting business, you can set and meet your financial goals and achieve your short-term and long-term goals. Read this guide, to turn your dream into a thriving business reality.

Planning to start a financial consulting firm? If the answer is yes, then the following comprehensive step-by-step guide will show you how to start your own consulting firm with no money and no prior industry expertise. Let’s take a deep dive into it!

A financial consulting firm helps individuals and organizations enjoy their wealth growth. Customers trust your financial institution firmly because you are much more likely to help smaller clientele, but a small business should be prepared to do both. Your customers look to you for detailed information about their finances, prudent financial forecasting, and ways to invest to achieve their goals.

Like many companies, the financial consulting business is open to people who want to work within it as long as they have the requirements needed to run such a business. Even if you do not have extensive finance and the other prerequisites for starting a standard financial services business, you can take advantage of the industry’s startup phase by working with small businesses in your local area.

So, let’s get started with how you can start your own financial consulting firm with 10 crucial factors to keep in mind.

What Is A Financial Consulting Firm?

A financial consulting firm assists individuals and small businesses in managing and expanding their money. Although servicing small businesses and individuals is more likely than servicing big businesses, both should be possible. Customers will turn to you for in-depth financial advice, accurate financial projections, and suggestions on how to invest in order to meet their short- and long-term objectives.

Like most businesses, the financial consulting firm is available to everyone who is interested in it and has what it takes to operate a firm that provides these services. You can enter the market as a small financial consulting firm serving mom-and-pop firms in your area even if you lack the finances and other conditions for beginning a typical financial consulting services organization.

What Does A Financial Consulting Firm Do?

Financial consulting firms primarily assist business owners in finding solutions to their current problems and improving performance across all relevant financial operations. There are three main ways to improve:

  • Process
  • People
  • Technology

This aids in the selection of sophisticated tools that can streamline particular financial procedures as well as the hiring of knowledgeable key individuals to tighten forecasting or financial reporting processes. The financial consultant’s solutions are customized for your company. Check and buy mobile parts online.

10 Steps On How To Start A Financial Consulting Firm

Discover how to start your consulting firm and if it’s the correct move for you. Here is how to start your own consulting firm with 10 easy steps.

Step 1: Create A Financial Consulting Business Plan

It is essential that independent financial consultants start with a solid written business plan, just like any other type of company. This strategy should incorporate:

  • Startup and ongoing costs
  • Choose an apt location
  • Competitors
  • Name of the business
  • Charge for the customers

Startup Costs

The startup costs for this company are a little misleading. Since many financial planners start off working from home and meet clients there, there is practically no expense to starting this business once you have the necessary license. On the other side, most certificates require a four-year degree, which often costs $40,000 for the degree alone.

You may spend between $1,000 and $4,000 to complete additional classes for a certification like the CFP, and an additional $595 to take the exam if your undergraduate education was not already Board-certified. Due to its significance, many choose to attend review sessions or purchase study materials, which can cost between $400 and $1400. Once you pass, you must work full-time in a related field before you may fulfill the CFP’s experience requirement.

As a result, even though starting a consulting firm itself doesn’t cost much, getting the necessary training and credentials might easily cost $90,000 or more, and you’ll also need to put in a lot of time working for someone else before you can work for yourself.

Ongoing Costs

In the event that you want to work from home, your recurring expenses will be minimal. You can accomplish the majority of your actual financial planning on the computer you already own without incurring high overhead or utility costs.

Your most frequent fees will be for the petrol used to go to client appointments and for meetings like business lunches, both of which you may be able to deduct from your taxes.

Choose An Apt Location

If you want to serve a lot of clients and make the most money from the business, financial consulting firms and most businesses that are based on financial services must be located in a good location. This location should be one that is susceptible to both human and vehicular traffic and should be at the center of a business district.

These are some of the most important things to take into account when choosing where to locate your financial consulting services company:

  1. The location’s demography
  2. The demand for a financial consulting firm’s services and similar businesses in the area
  3. The area’s population’s capacity to pay for goods and services
  4. Reliability of the location
  5. The number of financial advisory services companies and related businesses in the area
  6. The state’s and community’s local laws and regulations regarding parking, traffic, and security facilities.

Target Market

Younger clients, such as those who are finishing their college degrees or receiving inheritances, may be first-time interested in financial planning. They are more likely to be receptive to the counsel you offer, and if they are pleased with the outcomes, they might even stay on as a client for life.


Regardless of the industry in which you choose to operate, you will still face competition from others operating in the same field, and the provision of financial consulting services is no exception. Here are some examples of the top-notch small financial consulting firms that are your competitors:

  • T. Kearney
  • Accenture
  • Bain & Company
  • Deloitte Consulting
  • Ernst & Young
  • McKinsey & Company
  • Oliver Wyman
  • PricewaterhouseCoopers (PwC)
  • The Boston Consulting Group
  • Booz & Company

Name Of Your Business

What will be the name of your financial planning firm? It’s crucial and challenging to choose the right name. It is expected that you will use creativity when selecting a name for your company because the name you select will significantly influence how people will perceive what the company does.

You might choose to use a business name other than your own name if you run a sole proprietorship. We advise conducting the following checks before registering a business name:

  • Business files for your state
  • Records for federal and state trademarks
  • Social media networks
  • Availability of a web domain.

It’s very important to register your domain name before another person does.

Charge For Your Customers

How much will you charge for customers depending upon your payment method? If you are getting paid through fees, it is fair to charge them between.75% and 2% of the total assets you are managing. The range of commission prices is wider, ranging from 1% to 8.5%. You normally charge smaller percentages for bigger sums on transactions for both fees and commissions.

It should be emphasized that many clients, businesses, and consultants are suspicious of commission-based models because there is always the chance that an advisor would recommend an investment that will be profitable in the short term for the advisor but unprofitable in the long term for the client.

Step 2: Get The Necessary Startup Funding

Here are some of the possibilities you might look into when sourcing the startup funding for your company providing financial consulting services:

  • Getting funds from one’s personal savings and through the sale of one’s personal assets and properties.
  • Getting funds from business partners and investors.
  • Sell shares to potential investors.
  • Apply for a bank loan.
  • Presenting your business concept and requesting financial assistance from donors and angel investors in the form of business grants and startup money.
  • Obtain soft loans from your friends and relatives

Step 3: Choose A Legal Entity

The legal entity you select when starting a business offering financial consulting services will greatly affect how big the enterprise can become. The most common business structures are

For a company like a financial consulting services firm, you can often choose between a general partnership and a limited liability company. If you are just starting out with a moderate beginning capital, the general partnership should often be the best company structure for a small-scale financial consulting services firm.

But for obvious reasons, individuals favor limited liability companies. In actuality, adopting a general partnership is not a choice for you if your goal is to expand your company and attract corporate and individual clients from all over the United States and other nations of the world. For you, a Limited Liability Company, LLC will do. You are shielded from personal accountability by an LLC.

Only the money you put into the limited liability company will be at risk if something goes wrong in the company. A board of directors, shareholders meetings, and other managerial formalities are not necessary for limited liability firms, making them easier to manage and more flexible. Before selecting a legal organization for your financial consulting services company, you should take into account a number of aspects, including the following:

  • Limitations on personal liability
  • Ease of transferability
  • Approval of new owners
  • Investor expectations
  • Taxes

This form of business can be started as a limited liability company (LLC) and then changed to a “C” corporation or an “S” corporation, especially if you intend to go public.

Step 4: Do Market Research And Feasibility Studies

Statistical and psychological data

Individuals, corporate entities, investors, and business owners or entrepreneurs who require counsel and direction to resolve financial-related challenges make up the demographic and psychographic mix of those who seek the services of financial consulting firms.

Therefore, you should be as inclusive as possible when determining the demographics of your financial consulting company. Corporate entities, corporate executives, accredited investors, retirees and pensioners, blue chip corporations, businessmen and women, start-ups, entrepreneurs, and aspiring entrepreneurs, as well as households both inside and outside the city you are operating in who have the means to pay for your services, should all be included.

Step 5: Choose The Expertise You Want To Focus

The majority of financial consulting firms operate the typical general services that a financial consulting firm is required to provide. Because of this, it appears that the industry lacks any specializations.

However, certain financial consulting businesses may elect to specialize in particular important fields, such as:

  • Investment Management(Business portfolio)
  • Wealth Management and Creation
  • Financial Advisory Services
  • Asset Management
  • Mortgage, Investment, Pension, and Retirement Advisory Services
  • Income Tax Computation
  • Financial Auditing
  • Estate Planning
  • Financial Planning and Budgeting
  • Financial Services Consulting and Accounting
  • Insurance Consulting
  • Tax consulting.

Step 6: Get The Necessary Licences And Permits

It’s very important to get the necessary licenses and permits to operate your finance consulting firm legally. The failure to get required permits and licenses may subject your company to severe fines or possibly closure.

Requirements for State and Local Business Licensing

To run a financial consulting firm, you might need to obtain specific state authorizations and licenses. The majority of enterprises must collect sales tax on the products and services they offer. For information about regional licenses and permits:

Service Agreement

Before beginning a new project, financial consulting companies should request that their clients sign a services agreement. By defining payment terms and conditions, service level expectations, and intellectual property ownership, this agreement should make client expectations clear and reduce the likelihood of legal conflicts. An illustration of such a services contract is shown below: (Aim to be as sector/business-specific as possible)

Certificate Of Occupancy(CO)

One can operate a financial consulting business from an office. Typically, companies operating out of a physical site need a Certificate of Occupancy (CO). A CO certifies that all zoning laws, building rules, and other legal requirements have been followed.

  1. If you want to lease a location.
    • It is often the landlord’s responsibility to secure a CO
    • Check that your landlord can obtain a CO that is appropriate for a financial consultancy firm before you sign a lease.
    • After a significant remodeling, a new CO is frequently required. It is advised to include language in your lease agreement saying that lease payments won’t start until a valid CO is obtained if your place of business will undergo renovations before opening.
  2. If you plan to buy or construct a location.
    • You will be in charge of acquiring a legitimate CO from a local government entity.
    • To make sure your financial consulting firm is in compliance and can get a CO, review all the building rules and zoning regulations for the area where your business is located.

Step 7: Obtain Business Insurance

In order to run a business, you must have some of the fundamental insurance coverages mandated by the sector you choose to work in. Therefore, it is crucial to set aside money for insurance policy coverage and select the best and most suitable insurance plans for your business providing financial consulting services. If you intend to launch your own financial consulting services business, you should think about investing in some of the following fundamental insurance policy coverages:

  • General Insurance
  • Liability Insurance
  • Worker’s Compensation Insurance
  • Risk Insurance
  • Financial Reinsurance
  • Health Insurance
  • Business owner’s policy group insurance
  • Payment protection insurance
  • Overhead expense disability insurance

Step 8: Get Business Bank Account & A Credit Card

For the protection of personal assets, it is crucial to use special business banking and credit accounts.

Your personal assets—your home, vehicle, and other valuables—are in danger if your firm is sued if your personal and business accounts are combined. This is known as “piercing your corporation veil” in business law.

Additionally, understanding how to establish corporate credit can help you secure loans, credit cards, and other funding under your company’s name rather than your own, as well as get better terms and credit limits.

Business Bank Account

A separate business bank account is necessary for several reasons, including:

  • separation of your personal assets from those of your business is a requirement for personal asset protection.
  • simplifies bookkeeping and tax filing.

Net 30 Accounts

Net 30 accounts are used to create and maintain business credit and to boost cash flow. Businesses use a net 30 account to purchase items and pay off the entire balance within a 30-day period.

The major commercial credit bureaus receive reports from several net 30 credit providers (Dun & Bradstreet, Experian Business, and Equifax Business Credit). In order to be eligible for credit cards and other lines of credit, firms must first establish their company credit.

Business Credit Card

Having a company credit card is beneficial since it:

  • Put all of your company’s expenses in one location to help you distinguish between personal and corporate spending.
  • Create a credit history for your business, which will be helpful if you ever need to acquire capital.

Step 9: Hire The Staff

Your decision over whether to rent or lease an office space should be influenced by the size of the financial consulting services firm you intend to establish as well as your overall business budget. If you have the financial resources to run a typical financial consulting firm, you should give renting an office space some thought. Before making a choice regarding the quantity of personnel you will need to launch the business, you must take your finances into account. A Chief Executive Officer/Lead Financial Advisor, Financial Advisors, Financial Risk Analyst, Legal Secretary, Administrative and Human Resources Manager, Business Developer, Accountant, and Customer Service Executive/Front Desk Officer would be averagely required. In addition, it takes at least 5 to 10 key employees to run a medium-sized but basic financial consulting services organization efficiently. Please be aware that there may be occasions when you’ll be required to go above and above in order to recruit professionals to assist you in handling some high-profile clients from major corporations. If your business is just getting started, you might not have the resources or organizational structure needed to hire all the experts who will collaborate with you.

Step 10: Create Your Brand

Your firm’s brand is what it stands for and how the public views your organization. Your company will stand out from rivals with a powerful brand.

Promote & Market Your Finance Consulting Firm

Since you will be working in a profession where you will be primarily involved with your local community, it is advisable to advertise there, especially when you first start out, using more conventional channels like radio and newspapers. But clients are increasingly finding their advisors online, so it’s critical that you have tidy, expert-looking profiles on social media sites like Facebook, Twitter, and LinkedIn. Additionally, you ought to have a website that looks polished.

Online platforms are fantastic for showcasing your personality (such as a quirky sense of humor) once you feel comfortable doing so, which can help you stand out from the crowd. How do you obtain and keep clients now that you know how to meet them? Speak their language to start. The majority of clients don’t want you to confuse them with a tonne of jargon and technical phrases. They want the definitions of important terminology and information, as well as an understandable explanation.

Don’t forget to use networking; as communities are built on relationships, the mere fact that so-and-so is a colleague or close friend may cause a client to feel instantly more at ease with you. After that, keeping clients is probably the easiest part because this is a results-driven industry and people will continue to utilize your services as long as you are assisting them in increasing their wealth.

The platforms listed below can help you build your brand, advertise your financial consulting services business, and promote yourself:

  • Post advertisements in publications, radio, and television stations that deal with finance.
  • Promote word-of-mouth advertising by your devoted clients.
  • Use social media and the internet to market your business on sites like YouTube, Instagram, Facebook, Twitter, LinkedIn, Snapchat, Badoo, and Google+.
  • Make sure to place your billboards and banners in prominent locations throughout your city.
  • Deliver your flyers and handbills to certain locations in and around our community.
  • Call corporate entities, corporate executives, professional investors, retirees and pensioners, blue chip companies, businesspeople and women, start-ups, entrepreneurs, and aspiring entrepreneurs, as well as households inside and outside the city you are operating in, and inform them of your organization brand all of your official vehicles, and make sure that every employee and member of management always sports a branded shirt or cap. and the services you provide.
  • Employ techniques to increase traffic to your official website and advertise your company there.


Starting any type of business is a big challenge. It can be risky, and it takes a lot of work and preparation. And whether you are new to the industry or have experience, you will undoubtedly need a lot of patience and courage if you want to start a financial consulting firm.

However, things will move much more smoothly if you create a solid, comprehensive business plan that addresses all the key issues and meticulously adheres to the processes. In any case, the effort will be fruitful because working as a financial advisor is a wonderful and profitable job.

Thank you for reading this article. If you have any questions, you can leave them in the comment section below.

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