Drawing inspiration from the franchise business model.
Gee Foottit, St. James’s Place Financial Adviser Academy
No matter your background, seeking out an opportunity to build your own financial advice business can be a great move.
Are you seeking a career with purpose? Do you want greater control of your work-life balance? Would you like to increase your earnings? Or would you like an opportunity to build your own business with tangible value?
Well, look no further. A new career in financial advice could be for you.
As a trusted adviser, you’ll have the skills to help clients build a better future through effective financial planning. There is no ceiling on what you could achieve. But if you are new to the profession, where should you begin?
The financial advice market opportunity
There is no doubting demand in the financial advice market.
As the number of people looking for trusted financial advice continues to increase, the number of qualified advisers is declining.
The average age of a financial adviser is 57 in the UK. As these individuals start to retire, there is a growing need for more qualified professionals.
At the same time, there is a growing number of ‘mass affluent’ individuals in the UK, defined as those with between £50,000 and £5 million of investable assets. This demographic is projected to rise from 11 million in 2021 to 13 million by 2024*.
This ‘advice gap’ is driving demand for more financial advisers and financial advice businesses. So, for aspiring entrepreneurs, this is an appealing proposition. And setting up your own business could be the way to go.
To start a career in financial advice, you need two key things:
- The right qualifications
- The skills to provide insightful, goal-driven client advice
However, to start a financial advice business, you’ll need a little more.
Setting up your own financial advice business
Setting up your own financial advice business offers a host of benefits. Not least, having the autonomy to grow a business that suits you. That could mean a different work-life balance, taking control of your future and enjoying uncapped earning potential once established.
But for a new financial advice business to succeed, you’ll also need an ecosystem of support, an already established marketplace and a proven business partner.
The finance industry is by no means easy to break into. In fact, it's the opposite. That’s due to regulatory complexity, qualification requirements, and high start-up costs.
It requires deep market expertise to be your own boss and set up in the finance industry. And in today's financial climate, finding the start-up capital can be a challenge.
Financial franchise opportunities
One way of setting up a new business is by finding the right business partner. Like a franchise model, there are companies that can provide you with a platform to build your own advice business, with the support of an established brand.
The benefit of this approach is that you are replicating a tried and tested model, with the support of an experienced organisation that can help to minimise so many of the risks of starting out on your own.
Franchise owners enter into a business relationship with the franchisee. This relationship is mutually beneficial. They gain market share, brand exposure and a cut of the profits. You, as the franchise owner, are buying into the brand and everything that comes with it.
There's no need to tour investment banks looking for a cash injection, you can work directly with the franchisee to start your venture.
Franchising offers a ready-made business plan (or a means of skipping the start-up phase) with swift entry into a business in an established market.
This is a particularly popular model in retail and food and drink. But can it work for financial advice?
‘Franchising’ in financial advice
At the St. James’s Place Financial Adviser Academy, we offer our own take on the franchising business model for those looking to set up their own financial advice business under the St. James’s Place brand.
Our concept is based on an ecosystem of support – both financial and practical – which empowers people to establish, grow and run a sustainable and profitable business. And, since launching the Academy programme in 2012, this model has helped over 1,000 people fulfil their entrepreneurial ambitions.
By joining the SJP Partnership, you will be able to set up your own advice business, but with the support of a FTSE100 company behind you. You’ll be provided with both initial and ongoing support to help you on your path to success.
Under the traditional model, there are two key barriers to many people setting up a new business as a franchise. The first is the up-front investment. The capital you need to invest to get started can be considerable, particularly in this specialist field of work. You'll need to invest in yourself, as well as your business.
With St. James’s Place there is no up-front investment needed. We provide a ‘business in a box’ with no start-up fee. In fact, there is financial support throughout because we recognise that all new businesses require investment. It’s what you would expect from an effective business partner.
It’s not just about the financial support either. People at the St. James’s Place Financial Adviser Academy, who go on to develop their own businesses, receive the equivalent of £65k of support in all its forms.
Unlike traditional franchise models, this is also an opportunity to build a business that is unique to you as part of a ready-made proposition. You don’t have to use or rely on the SJP brand. You can have your own name above the door, or even co-brand with us.
You can build a St. James's Place Partner business that reflects your values and approach, giving you ownership of your future. You have freedom to develop your own brand equity, but with the support of the wider SJP ecosystem. It's not just providing financial advice - you are really building something that’s yours.
Above all else, you are joining a community of peers, with 2,500 businesses forming the SJP Partnership. You are doing this for yourself, not by yourself.
Ongoing support
What a first-time financial advice entrepreneur needs to succeed is practical and personal support to grow a sustainable and profitable business.
At the St. James’s Place Financial Adviser Academy, we offer mentorship, coaching, and development support, because we recognise that the foundations of success are built on the strength of long-term business relationships. We will help you retrain and achieve the qualification you need to become a successful adviser.
Our support proposition delivers a diverse range of services that aim to maximise financial advisers’ time so that they can focus on what they do best – supporting and advising their clients. From marketing, investment consultancy, technology, administration, HR and finance support, to technical compliance, we aim to deliver support that facilitates business growth, whilst delivering great outcomes to clients.
The St. James’s Place proposition for entrepreneurs
As a graduate of the St. James’s Place Financial Adviser Academy, setting up your own practice is a viable and attractive proposition. With no up-front investment, the opportunity to develop your own brand, and the backing of a FTSE100 business, this opportunity can set you up for a rewarding career as a financial adviser.
Find out more about setting up your own financial advice business here.