How to Create a Financial Advisor Business Plan That Gets Results


A financial advisor is a professional who provides guidance and advice to individuals and businesses with regard to investments, insurance, estate planning, retirement planning, taxation, and other financial matters. The Bureau of Labor Statistics projects that employment for personal financial advisors will grow by 22% from 2016 to 2022. This growth is largely due to the increasing complexity of financial products and services, as well as the growing population of aging Americans. Financial advisors can expect good job prospects in the coming years. The median annual salary for personal financial advisors was $90,530 in May 2016.

Why Do You Need a Business Plan?

If you’re in the financial advisory business, then you know that creating a business plan is essential to your success. But what exactly should you include in your plan? And how can you make sure that it’s effective?

As a financial advisor, you need to be able to articulate your goals, strategies, and objectives to potential clients. A business plan helps you do just that. It’s a blueprint for your business that outlines your vision and how you intend to achieve it. Without a business plan, it would be difficult to track your progress and gauge whether or not you’re on track to reach your goals.

What to Include in Your Business Plan 

When writing your business plan, there are certain key elements that you should include:

1. Executive Summary

This is a brief overview of your business plan. It provides a high-level overview of your business and its key components, making it easy for potential investors to quickly understand your proposal. The summary should be concise and well-written, without sacrificing important details.

Include the following information in your executive summary: 

  • Your company’s name and a brief description 
  • The problem you are solving 
  • Your solution 
  • The market size and potential 
  • Your competitive advantages 
  • The financial projections for your business

2. Market Analysis

You’ll need to discuss the current state of the financial advisory industry as well as your target market. Who are your ideal clients? What are their needs and wants? How do they make decisions about financial advisors? This is the information that you’ll use to create your marketing strategy. By understanding the market in which you will be competing, you can create a plan that will set your business apart and be successful.

3. Competitive Analysis

In this section, you’ll need to identify your competition and analyze its strengths and weaknesses. What are they doing well? What could they be doing better? How can you position yourself in the market so that you can attract the best clients?

A competitive analysis is an important part of any financial advisor’s business plan. By studying your competition, you can learn what services and products they offer, how they market themselves, and what prices they charge. This information can help you create a more effective business plan and set realistic goals for your own company. It can also help you find potential partners or investors who may be interested in your business.

4. Marketing Strategy

In this section, you’ll need to outline how you intend to reach your target market. What marketing channels will you use? What kind of message will you communicate? How much will you budget for marketing efforts?

5. Sales Strategy

You’ll need to discuss how you intend to generate leads and close deals. What is your sales process? Who will be responsible for each step of the process? This will outline how you plan to reach your target market, how you will attract new clients, and how you will retain existing clients. Without a solid sales strategy, your business is likely to fail.

6. Operational Plan

It lays out the specific steps that you will take to grow your business and achieve your goals. Without a clear and concise operational plan, it can be difficult to stay on track and achieve your desired results.

The operational plan should include a detailed budget that breaks down the costs associated with running your business. Include expenditures such as office space, technology, staff salaries, and marketing expenses. Make sure to also factor in any additional funds you may need for unexpected expenses or unforeseen circumstances. 

In addition to a budget, create an actionable timeline for completing tasks, such as designing a website, creating marketing materials, and developing client relationships. This timeline should include realistic goals and deadlines for each step of the process so it’s easier to track your progress.

7. Financial Projections

This will show your estimated income and expenses for the first year of business. This information is essential in order to make informed decisions about your business. A well-done financial projection can help you secure funding from investors or lenders, and it can also help you track your progress and make necessary adjustments along the way. How much revenue do you expect to generate? What expenses will you have? How much profit will you make?

8. Appendix

This is where you’ll include any additional information that doesn’t fit into the main body of the business plan but is still relevant. This could include things like resumes, NDAs, brochures, etc. 

The ability to create a financial advisor business plan that achieves results is a valuable skill. Numerous studies have found that the most successful financial advisors have business plans and they execute on them. This indicates that having a well-constructed business plan is key to achieving success in this field. As the old saying goes, “fail to plan, plan to fail.” Remember, your business plan should be regularly updated as your business grows and changes over time. Get started with a free financial advisor business plan template here!

The views expressed in this article are those of the authors and do not necessarily reflect the views or policies of The World Financial Review.