How to Start a Financial Company


To start a financial company, there are a few key things you will need to do. For example, you must ensure that you are registered with the relevant regulatory bodies and have the required licenses. You will also need a robust business plan in place.

Here are the ten steps to start building a financial company.


10 Steps to Launching a New Financial Company

1. Choose Your Type of Financial Company

The first step in launching a financial company is identifying the type of company you want to launch. You might choose from the following types, among others:

  • Independent broker-dealer
  • Investment adviser
  • Mutual fund
  • Hedge fund


2. Name Your Financial Company

Give your financial company an identity so people will consider it a well-known and respected brand. You can take the name of your financial company from your industry, focus on a geographical location, or use your name, among other options.

The main goal of naming your financial company is to make it sound appealing and trustworthy so that clients will want to work with you.


3. Determine Your Financial Company Business Model

There are several possible types of business models for a financial company, including:

  • Direct sales
  • Independent contractor
  • Franchise
  • Joint venture
  • Strategic alliance 

No matter which model you choose, ensure it aligns with your business goals and the services you offer.


4. Choose a Legal Form for Your Business

By incorporating your financial company, you will limit your liability. You can incorporate as a Limited Liability Company (LLC), a C Corporation (C-Corp), or an S Corporation (S-Corp). Or you can operate as a sole proprietorship.

The business structure you choose for your financial company will determine the amount of taxes you pay and which state or federal tax forms you need to file.

Read our article comparing the most common financial company business structures.


5. Write a Financial Company Business Plan

All financial company owners should develop a business plan. 

A business plan is a document that outlines the goals, strategies, and operations of a business. It can be used to secure funding from investors or lenders, as well as to guide the day-to-day operations of the business. The business plan should include information on the company’s products or services, market analysis, financial projections, and management team.

When developing your financial company business plan and strategy, you should think about the following questions your customers might have:

  1. What services do you offer?
  2. What are your fees?
  3. How long have you been in business?
  4. Who is on your management team?
  5. What is your investment philosophy?
  6. What products or services do you specialize in?
  7. Why should I trust my money with you?
  8. What is your experience in the industry?
  9. Have you ever been disciplined by a regulator?
  10. Do you have any pending legal action against you?

Read our article about how to write a financial company business plan.


6. Apply for the Necessary Permits and Licenses

You may need to obtain required licenses and permits before launching your financial company.

For example, if you sell securities, you will need to obtain a license from the Financial Industry Regulatory Authority (FINRA). If you plan on providing investment advice, you will need to register with the Securities and Exchange Commission (SEC) as an investment adviser.

You must also register your financial company as a legal entity with the state where you plan to do business. You can simply file an online form through your Secretary of State website.

Registering with the federal government is also essential so you can properly pay taxes for your business. You will also need an Employer Identification Number (EIN), which you can apply for at the IRS website, if you plan to hire employees.

Read our article about obtaining the proper financial company business licenses.


7. Determine Your Budget & Apply for Funding as Needed

In developing your financial company business plan, you will figure out how much funding you need to start and grow your business.

If you have your funds to invest in your financial company, you may consider taking advantage of that. In addition to your personal funds, other forms of potential funding for your financial company include traditional bank loans, SBA loans, credit cards, angel investors and family and friends.

Read our article about how to fund your financial company


8. Get the Technology & Software Needed to Run Your Business Efficiently

When you start your financial company, it’s essential to have the right technology in place to maximize efficiency. You need a computer with Internet access and accounting software for tracking expenses and revenues. 

You may also want to invest in customer relationship management (CRM) software, which helps you track customer interactions and manage your sales pipeline. Other types of software that can be helpful for financial companies include project management software and document management software.

Read our article about the technology and software you need to run a financial company.


9. Market Your Financial Company to Potential Clients

Before selling your services, you must let the world know you exist. The first step is to create a website so people can learn more about your services and how they benefit them.

After you launch your website, start promoting it through social media channels like Facebook, LinkedIn, Twitter, and Instagram. Also, consider networking with other people in the financial company industry through social media and blogs so they can help share your business. 

You also need to start gathering the materials needed to execute on your promotions strategy, which is your strategy for attracting new customers. Financial companies should consider the following promotional strategies for which you should start getting prepared:

  1. Sponsorship of charitable or community events
  2. Speaking engagements at business or professional organizations
  3. Advertising in print, online, or on television
  4. Collaboration with other financial companies to cross-promote services
  5. Social media marketing (Facebook, LinkedIn, Twitter, etc.)
  6. Direct mail campaigns

Read our article about how to market your financial company for more tips.


10. Get New Clients & Grow Your Business

When you promote your services, you’ll start to get interest from potential clients

Make sure you’re ready to serve these clients. Also, be sure to establish systems to ensure consistency and reduce costs. And be sure to find and train the right people to help you grow your financial company.

Read our article about how to effectively grow your financial company to learn more.


Starting a Financial Company FAQs

There are several reasons why you might want to start a financial company. First, if you’re good with money and have a head for business, this could be a great way to make a living. Second, there’s always demand for financial services, so starting a financial company can be quite profitable. And third, as the world becomes increasingly digital, there’s more opportunity than ever to reach potential clients online.

There are several ways to market a financial company online. First, you can use search engine optimization (SEO) to ensure your website appears at the top of search results. Second, you can use social media to reach potential clients where they already spend time. Third, you can use online advertising to target potential clients with specific interests. And fourth, you can use email marketing to stay in touch with potential and existing clients. 

Here are a few tips to keep in mind when starting a financial company:

  1. Develop a strong business plan.
  2. Secure funding from investors, banks, or other sources.
  3. Put together a talented team of employees.
  4. Develop the right technology and software to run your business efficiently.
  5. Market your company to potential clients.
  6. Use SEO to ensure your website appears at the top of search results.
  7. Use social media to reach potential clients where they already spend time.
  8. Use online advertising to target potential clients with specific interests.
  9. Use email marketing to stay in touch with potential and existing clients.
  10. Get new clients and grow your business.

A simple checklist to use when starting a financial company is as follows:

  1. Choose Your Type of Financial Firm: This should be based on what you are best at and how much experience you have. Remember to always keep your interests, skills, and experience in mind.
  2. Name Your Financial Company: This should be done carefully, as your brand is important for attracting the right customers. A simple, memorable name will go a long way.
  3. Choose a Legal Form for Your Business: Whether you become a sole proprietorship, partnership, LLC, corporation or another option will depend on your business. Ensure that you are aware of all the implications of each type.
  4. Determine Your Financial Company Business Model: Determine how your business will make money. Will you sell products, services, or a combination of both?
  5. Write a Financial Company Business Plan: Your business plan will also help you determine what your start-up costs will be and will provide a roadmap with which you can launch and grow.
  6. Apply for the Necessary Permits and Licenses: In most locations, you will be required to apply for business licenses or permits before you can begin operations.
  7. Determine Your Budget & Apply for Funding as Needed: You will need to know how much money you have to spend on all of your business-related expenses before opening any doors. If needed, apply for a small business loan or other funding options.
  8. Get the Technology & Software Needed to Run Your Business Efficiently: You need the right tools to succeed. Implement software that will help you manage your time, contacts, and business operations in general.
  9. Market Your Financial Company to Potential Clients: A solid marketing plan will be crucial to your success. It should focus on attracting the right customers so that you can provide them with the services they truly need. 
  10. Get Clients & Grow Your Business: Once you have a solid marketing plan, it's time to actively pursue and secure those who could benefit the most from your services.



Starting a financial company can be both lucrative and challenging. However, you can set your company up for success with a strong business plan, the right team in place, and a solid marketing strategy. Use the tips and checklist above to ensure that you cover all of your bases when starting a financial company.