Unleashing your inner entrepreneur: 6 things to consider before you launch your business by Caro Syson

So, you're thinking about starting your own new business. You're on the starting blocks and are considering this exciting venture, but what are the key things you need to consider before you get going and take that big step?

Whether you're an experienced professional looking for a career change or someone newly interested in entering the financial services profession, starting a business will require careful planning and consideration.

In this article, we'll explore the key things you need to know before taking that step and embarking on your entrepreneurial journey as a business owner and provide some practical tips for starting your own business. So, let's dive in.

1. Assessing your current skills and knowledge:

Before taking that first step onto the ladder and venturing into a new profession or field of expertise, it's vital that you begin by assessing your existing skills and knowledge.

While previous experience in your profession of choice can be advantageous, it's not necessarily a requirement. For me, I successfully pivoted from being a chartered physiotherapist into a full-time job in financial services in my twenties because I had a good grounding of core skills and knowledge that were wholly transferable.

Specific or technical knowledge is usually something you can learn. However, it goes without saying that you will need to possess a strong interest in the field you are looking to enter (and a willingness to continuously build on it) to adapt well to the ever-changing professional landscape. It’s recommended to evaluate your strengths and weaknesses to identify areas where you may need further education or training before you take the step into a big career change.

2. Understand the regulatory requirements:

When looking specifically at financial advice, there is no getting away from the fact that it is a highly regulated profession (as it should be). It’s therefore essential to understand the regulatory requirements governing the profession.

As part of your initial investment, you will need to obtain all your qualifications to be your own boss and practise professionally as a financial adviser. It's crucial that you familiarise yourself ahead of time with the basics of what you will need to do along the way, in order to meet all the legal and regulatory obligations before launching your business. This step will help you establish credibility and build trust with your potential customers and ensure you are prepared for the journey ahead with the academic requirements for this next step.

At this stage start a business however, it’s also important to consider a potential business partner. When it comes to regulation, it can be useful to conduct market research and seek guidance and support from many business owners who have experience in the field.

For example, when building a business with St. James’s Place, the organisation effectively takes care of all regulatory requirements – it’s part of the business model. Whether you retrain with the St. James’s Place Financial Adviser Academy or join as an established adviser, you gain access to a network of experienced professionals who have in-depth knowledge and expertise in regulatory compliance.

Choosing a sound partner can give you peace of mind and a solid foundation to build your small business.

3. Create a robust business plan:

A well-thought-out business plan is often the bedrock of any successful business and a great starting point for you to come back to again and again as your business evolves. Take the time now to develop a comprehensive plan for this competitive landscape that outlines all your goals, identifies your target market, looks at your marketing strategies, covers your financial projections, and documents on paper your business structure and planned operational procedures (you can find a template to do so here).

It can also be helpful to seek professional guidance when building a solid business plan. Richard Tidy – financial adviser at St. James’s Place - wasn’t entirely alone in his endeavour when he decided to transition from his previous golfing career and set up a new business venture. As well as guidance from the Academy on some of the practical elements of setting up a business, his current job has also benefited from contacts made:

“The Academy prepared me well for this life. I had some phenomenal support. I was lucky to have the guidance of a St. James’s Place mentor.”

Your plan will serve as a roadmap, which – if done well at the outset – will guide you through the early stages of your venture. It will help you to make informed decisions along the way such as applying for small business grants or deciding whether to take out business loans. Additionally, having a business idea and a robust plan can also be useful when seeking financing or attracting future partners before becoming an established company.

4. Building a professional network:

Your ability to network effectively will play a vital role in whether your new business gets off to a good start, and the financial advice profession is no exception. Do not underestimate the importance of building a professional network on social media platforms that can open doors to worthwhile partnerships, access to existing companies and precious client referrals.

Attending industry events can be extremely valuable, as well as joining relevant associations that can support you, connecting you with fellow professionals both off and through social media accounts online. These activities will all be part of your everyday marketing efforts, so factoring time in for this is a given.

It can be beneficial for every small business owner to be part of wider organisations that allow them to access a greater network size. For example, small businesses at St. James’s Place have access to a wide range of resources to support network-building and client acquisition. In what is the largest community of advice professionals in the UK, many SJP advisers collaborate and share clients, especially when specialising in complex areas of financial advice such as estate planning or long-term care. You will also gain valuable feedback.

By engaging in conversations, sharing your own insights, and establishing yourself as a trusted authority in your field, you will quickly create a strong network that can significantly contribute to the growth and success of your new business.

5. Define your unique value proposition:

In a growing profession like financial advice, it's crucial to differentiate yourself from the competition. You can do this by tapping into your core sense of self and defining your business ideas and own unique value proposition.

Ask yourself: ‘What sets me apart from others in the market?’ 

Look at your current circle of friendships, acquaintances, and interests to get these clues. For example, if you come from a particular career background, do you have a niche in this area that you could follow up by giving financial advice to these specific individuals (as you will most likely know how they might feel and can put yourself in their shoes, understanding their concerns, worries and what issues they may face when it comes to needing financial advice)?

Identifying your target audience and understanding their needs will be part of what you have to get good at, so you can tailor your professional services more to address their pain points and clearly communicate the value you bring. Customer feedback is vital for small business owners for growth, such as ensuring your business name is appealing, and whether they prefer an online business to work with.

Your unique value proposition (UVP) will become the foundation of your marketing channels' efforts and help you attract and retain clients. So, work it out early and fine-tune it as you gain more experience.

6. Embrace technology:

In today's digital age, it goes without saying that embracing technology is no longer a ‘nice-to-have’ but a necessity, regardless of your age. For example, as a financial adviser, you must leverage technology to streamline your operations with expert systems and processes to maximise your time and enhance your clients’ experience when interacting with you.

Technology can also help you stay ahead of industry trends, so it's worth investing in your business structures to help manage your business finances for example. Tap into financial planning and the latest small business accounting software, client relationship management (CRM) tools, digital marketing platforms and even choosing the right business bank account to optimise your workflow and improve your own efficiency.

Keep up to date and stay informed about the latest industry-specific technologies to remain competitive and deliver exceptional service to your clients. Again, this will set you apart from your competitors and keep your business growing. Managing how much revenue you make will be a crucial part of your growing phase.

In some instances, you can outsource your technological support, such as customer payments. At St. James’s Place, for example, the unique business model provides you with a wealth of resources and expertise that will enable you to streamline your approach and facilitate spending more time with clients.

Your successful business: start now

Starting a business as a financial adviser can be both a rewarding and fulfilling career choice, but don't underestimate the amount of careful planning, continuous learning, and adaptability that will be required for most businesses.

• Checklist for you to consider:
• Assess your current skills
• Understand the regulatory landscape
• Create a robust plan
• Build a professional network
• Define your UVP
• Embrace technology

By following this checklist of essential steps, you will be well-prepared to embark on your entrepreneurial journey as a successful financial adviser. Remember that starting a new business is both rewarding and fulfilling, but it requires careful planning, continuous learning, and adaptability. Embrace the challenges of a great business idea and enjoy the journey toward achieving your entrepreneurial dreams. 

Get started today and unleash your entrepreneurial success as a financial adviser.