successful financial advisor business plan

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Essential requirements in crafting a one-page financial advisor business plan.

August 17, 2015 07:01 am 21 Comments CATEGORY: Practice Management

Executive Summary

In a world where most advisory firms are relatively small businesses, having a formal business plan is a remarkably rare occurrence. For most advisors, they can “keep track” of the business in their head, making the process of creating a formal business plan on paper to seem unnecessary.

Yet the reality is that crafting a business plan is about more than just setting some business goals to pursue. Like financial planning, the process of thinking through the plan is still valuable, regardless of whether the final document at the end gets put to use. In fact, for many advisory firms, a simple “one-page” financial advisor business plan may be the best output of the business planning process – a single-page document with concrete goals to which the advisor can hold himself/herself accountable.

So what should the (one-page) financial advisor business plan actually cover? As the included sample template shows, there are six key areas to define for the business: who will it serve, what will you do for them, how will you reach them, how will you know if it’s working, where will you focus your time, and what must you do to strengthen (or build) the foundation to make it possible? Ideally, this should be accompanied by a second page to the business plan, which includes a budget or financial projection of the key revenue and expense areas of the business, to affirm that it is a financially viable plan (and what the financial goals really are!).

And in fact, because one of the virtues of a financial advisor business plan is the accountability it can create, advisors should not only craft the plan, but share it – with coaches and colleagues, and even with prospective or current clients. Doing so becomes an opportunity to not only to get feedback and constructive criticism about the goals, but in the process of articulating a clear plan for the business, the vetting process can also be a means to talk about the business and who it will serve, creating referral opportunities in the process!

Author: Michael Kitces

Michael Kitces is Head of Planning Strategy at Buckingham Strategic Wealth , which provides an evidence-based approach to private wealth management for near- and current retirees, and Buckingham Strategic Partners , a turnkey wealth management services provider supporting thousands of independent financial advisors through the scaling phase of growth.

In addition, he is a co-founder of the XY Planning Network , AdvicePay , fpPathfinder , and New Planner Recruiting , the former Practitioner Editor of the Journal of Financial Planning, the host of the Financial Advisor Success podcast, and the publisher of the popular financial planning industry blog Nerd’s Eye View through his website Kitces.com , dedicated to advancing knowledge in financial planning. In 2010, Michael was recognized with one of the FPA’s “Heart of Financial Planning” awards for his dedication and work in advancing the profession.

Read all of Michael’s articles here .

Why A Business Plan Matters For Financial Advisors

There’s no end to the number of articles and even entire books that have been written about how to craft a business plan , yet in practice I find that remarkably few financial advisors have ever created any kind of formal (written or unwritten) business plan. Given that the overwhelming majority of financial advisors essentially operate as solo practitioners or small partnerships, this perhaps isn’t entirely surprising – when you can keep track of the entire business in your head in the first place, is there really much value to going through a formal process of crafting a financial advisor business plan?

Having been a part of the creation and growth of numerous businesses , I have to admit that my answer to “does a[n individual] financial advisor really need a business plan?” is a resounding yes . But not because you’re just trying to figure out what the basics of your business will be, which you may well have “figured out” in your head (or as the business grows, perhaps figured out in conversations with your partner). The reason a business plan matters is all about focus , and the ability to keep focus in proceeding towards your core objectives, and accountable to achieving them, even in a dynamic real-world environment full of distractions.

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As the famous military saying goes, “ no battle plan ever survives contact with the enemy ”, because the outcomes of battle contact itself change the context, and it’s almost impossible to predict what exactly will come next. Nonetheless, crafting a battle plan in advance is a standard for military leadership. Because even if the plan will change as it’s being executed, having a clearly articulated objective allows everyone, even (and especially) in the heat of battle, to keep progressing towards a common agreed-upon goal. In other words, the objective stated in the battle plan provides a common point of focus for everyone to move towards, even as the (battle) landscape shifts around them. And the business plan serves the exact same role within a business.

Essential Elements Required In A Financial Advisor Business Plan

Because the reality is that in business – as in battle? – the real world will not likely conform perfectly to an extensively crafted business (or battle) plan written in advance, I am not a fan of crafting an extensively detailed business plan, especially for new advisors just getting started, or even a ‘typical’ solo advisory firm. While it’s valuable to think through all the elements in depth – the process of thinking through a business plan is part of what helps to crystallize the key goals to work towards – as with financial planning itself, the process of planning can actually be more valuable than “the plan” that is written out at the end .

Accordingly, for most financial advisors trying to figure out how to write a business plan, I’m an advocate of crafting a form of “one-page business plan” that captures the essential elements of the business, and provides direction about where to focus, especially focus the time of the advisor-owner in particular. In other words, the purpose for a financial advisor business plan is simply to give clear marching orders towards a clear objective, with clear metrics about what is trying to be achieved along the way, so you know where to focus your own time and energy!

Of course, the reality is that what constitutes the most important goals for an advisory firm – as well as the challenges it must surmount – will vary a lot, depending not just on the nature of the firm, but simply on its size, scope, and business stage. Financial advisors just getting started launching a new RIA face very different business and growth issues than a solo advisor who has been operating for several years but now hit a “wall” in the business , and the challenges of a solo advisor are different than those of a larger firm with multiple partners who need to find alignment in their common business goals. Nonetheless, the core essential elements that any business plan is required to cover are remarkably similar.

Requirements For An Effective Financial Advisor Business Plan

While there are many areas that can potentially be covered, the six core elements that must be considered as the template for a financial advisor business plan are:

6 Required Elements Of A (One Page) Business Plan For Financial Advisors 1) Who will you serve? This is the most basic question of all, but more complex than it may seem at first. The easy answer is “anyone who will pay me”, but in practice I find that one of the most common reasons a new advisor fails is that their initial outreach is so unfocused, there’s absolutely no possibility to gain any momentum over time. In the past, when you could cold-call your way to success by just trying to pump your products on every person who answered the phone until you found a buyer, this might have been feasible. But if you want to get paid for your advice itself, you need to be able to demonstrate your expertise. And since you can’t possibly be an expert at everything for everyone, you have to pick someone for whom you will become a bona fide specialist (which also provides crucial differentiation from other advisors the potential client might choose to work with instead ). In other words, you need to choose what type of niche clientele you’re going to target to differentiate yourself. And notably, this problem isn’t unique to new advisors; many established advisors ultimately hit a wall in their business, in part because it’s so time-consuming trying to be everything to everyone, that they reach their personal capacity in serving clients earlier than they ‘should’. Focusing on a particular clientele – to the point that you can anticipate all of their problems and issues in advance – allows the business to be radically more efficient. So who, really , do you want to serve? 2) What will you do for them? Once you’ve chosen who you will serve, the next task is to figure out what you will actually do for them – in other words, what services will you deliver. The reason it’s necessary to first figure out who you will serve, is that the nature of your target niche clientele may well dictate what kind of services you’re going to provide them; in fact, part of the process of identifying and refining your niche in the first place should be to interview a number of people in your niche , and really find out what they want and need that’s important to them (not just the standard ‘comprehensive financial plan’ that too many advisors deliver in the same undifferentiated manner ). For instance, if you’re really serious about targeting retirees, you might not only provide comprehensive financial planning, but investment management services (for their retirement portfolios), a specific retirement income distribution strategy, assistance with long-term care insurance, and guidance on enrolling in Medicare and making decisions about the timing of when to start Social Security benefits . On the other hand, if you hope to work with entrepreneurs, you might need to form relationships with attorneys and accountants who can help facilitate creating new business entities, and your business model should probably be on a retainer basis, as charging for assets under management may be difficult (as entrepreneurs tend to plow their dollars back into their businesses!). If your goal is to work with new doctors, on the other hand, your advice will probably focus more on career guidance, working down a potential mountain of student debt, and cash flow/budgeting strategies. Ultimately, these adjustments will help to formulate the ongoing client service calendar you might craft to articulate what you’ll do with clients (especially if you plan to work with them on an ongoing basis), and the exact business model of how you’ll get paid (Insurance commissions? Investment commissions? AUM fees? Annual retainers? Monthly retainers ? Hourly fees?). 3) How will you reach them? Once you’ve decided who you want to reach, and what you will do for them, it’s time to figure out how you will reach them – in other words, what will be your process for finding prospective clients you might be able to work with? If you’re targeting a particular niche, who are the centers of influence you want to build relationships with? What publications do they read, where you could write? What conferences do they attend, where you might speak? What organizations are they involved with, where you might also volunteer and get involved? If you’re going to utilize an inbound marketing digital strategy as an advisor , what are the topics you can write about that would draw interest and organic search traffic, and what giveaway will you provide in order to get them to sign up for your mailing list so you can continue to drip market to them? In today’s competitive world, it’s not enough to just launch a firm, hang your (virtual) shingle, and wait for people to walk in off the street or call your office. You need to have a plan about how you will get out there to get started! 4) How will you know if it’s working? Once you’ve set a goal for who you want to serve, what you want to do for them, and how you will reach them, it’s time to figure out how to measure whether it’s working. The caveat for most financial advisory businesses, though, is that measuring outcomes is tough because of the small sample size – in a world where you might have to reach out to dozens of strangers just to find a dozen prospects, and then meet with all those prospects just to get a client or two, it’s hard to tell whether a strategy that nets one extra client in a quarter was really a “better strategy” or just random good luck that won’t repeat. As a result, in practice it’s often better to measure activity than results , especially as a newer advisory firm. In other words, if you think you’ll have to meet 10 Centers Of Influence (COIs) to get introductions to 30 prospects to get 3 clients, then measure whether you’re meeting your activity goals of 10 COIs and 30 prospect meetings, and not necessarily whether you got 2, 3, or 4 clients out of the last stint of efforts. Not that you shouldn’t ultimately have results-oriented goals of clients and revenue as well, but activity is often the easier and more salient item to measure, whether it’s phone calls made, articles written, subscribers added to your drip marketing list, prospect meetings, COI introductions, or something else. So when you’re defining the goals of your business plan, be certain you’re setting both goals for the results you want to achieve, and the key performance indicator (KPI) measures you want to evaluate to regarding your activities along the way? 5) Where will you focus your time in the business? When an advisory firm is getting started, the role of the advisor-as-business-owner is to do “everything” – as the saying goes, you’re both the chief cook and the bottle washer . However, the reality is that the quickest way to failure in an advisory firm is to get so caught up on doing “everything” that you fail to focus on the essential activities necessary to really move the business forward (that’s the whole reason for having a plan to define what those activities are, and a measure to determine whether you’re succeeding at them!). Though in truth, the challenge of needing to focus where you spend your time in the business never ends – as a business grows and evolves, so too does the role of the advisor-owner as the leader, which often means that wherever you spent your time and effort to get your business to this point is not where you need to focus it to keep moving forward from here. From gathering clients as an advisor to learning to transition clients to another advisor, from being responsible for the firm’s business development to hiring a marketing manager, from making investment decisions and executing trades to hiring an investment analyst and trader. By making a proactive decision about where you will spend your time, and also deliberately deciding what you will stop doing, it also becomes feasible to determine what other resources you may need to support you, in order to ensure you’re always spending your time focused on whatever is your highest and best use. In addition, the process can also reveal gaps where you may need to invest into and improve yourself, to take on the responsibilities you haven’t in the past but need to excel at to move forward from here. 6) How must you strengthen the foundation? The point of this section is not about what you must do to achieve the goals you’ve set, but what else needs to be done in the business in order to maximize your ability to make those business goals a reality. In other words, if you’re going to focus your time on its highest and best use in the business, what foundation to you need to support you to make that happen? If you’re a startup advisory firm, what business entity do you need to create, what are the tools/technology you’ll need to launch your firm , and what licensing/registrations must you complete? Will you operate with a ‘traditional’ office or from a home office , or run an entirely virtual “location-independent” advisory firm ? What are the expenses you’re budgeting to operate the business? If you’re an advisor who’s hit a growth wall , what are the essential hire(s) you’ll make in the near future where/how else will you reinvest to get over the wall and keep moving forward? At the most basic level, the key point here is that if you’re going to execute on this business plan to move the business forward from here, you need a sound foundation to build upon – so what do you need to do to shore up your foundation, so you can keep building? But remember, the goal here is to do what is necessary to move forward, not everything ; as with so much in the business, waiting until perfection may mean nothing gets done at all.

Creating A Budget And Financial Projections For Your Advisory Business

In addition to crafting a (one-page) financial planner business plan, the second step to your business planning process should be crafting a budget or financial projection for your business for the upcoming year (or possibly out 2-3 years).

Key areas to cover in budget projections for a financial advisory firm are:

Revenue - What are the revenue source(s) of your business, and realistically what revenue can you grow in the coming year(s)? - If you have several types of revenue, what are you goals and targets for each? How many hourly clients? How much in retainers? How much in AUM fees? What commission-based products do you plan to sell, and in what amounts? Expenses - What are the core expenses to operate the business on an ongoing basis? (E.g., ongoing salary or office space overhead, core technology you need to operate the business, etc.) - What are the one-time expenses you may need to contend with this year? (Whether start-up expenses to launch your advisory firm , new hires to add, significant one-time projects to complete, etc.)

An ongoing advisory firm may project out for the next 1-3 years, while a newer advisors firm may even prefer a more granular month-by-month budget projection to have regular targets to assess.

Ultimately, the purpose of the budgeting process here is two-fold. The first reason for doing so is simply to have an understanding of the prospective expenses to operate the business, so you can understand if you do hit your goals, what the potential income and profits of the business will be (and/or whether you need to make any changes, if the business projections aren’t viable!). The second reason is that by setting a budget, for both expenses and revenue, you not only set targets for what you will spend in the business to track on track, but you have revenue goals to be held accountable to in trying to assess whether the business is succeeding as planned.

Vetting Your Business Plan By Soliciting Constructive Criticism And Feedback

The last essential step of crafting an effective financial planner business plan is to vet it – by soliciting feedback and constructive criticism about the gaps and holes. Are there aspects of the financial projections that seem unrealistic? Is the target of who the business will serve narrow and specific enough to be differentiated, such that the person you’re talking to would clearly know who is appropriate to refer to you? Are the services that will be offered truly unique and relevant to that target clientele, and priced in a manner that’s realistically affordable and valuable to them?

In terms of who should help to vet your financial advisor business plan, most seem to get their plan vetted by talking to a business coach or consultant to assess the plan. While that’s certainly a reasonable path, another option is actually to take the business plan to fellow advisors to vet, particularly if you’re part of an advisor study (or “mastermind”) group ; the reason is that not only do fellow advisors have an intimate understanding of the business and potential challenges, but if their target clientele is different than yours, it becomes an opportunity to explain what you do and create the potential for future referrals! In other words, “asking for advice on your business plan” also becomes a great opportunity to “tell you about who I work with in my business that you could refer to me” as well! (In fact, one of the great virtues of a clearly defined niche practice as an advisor is that you can generate referrals from other advisors who have a different niche than yours !)

Similarly, the reality is that another great potential source for feedback about your business plan are Centers of Influence already in your niche in the first place. While you might not share with your potential clients the details of your business financial projections (which is why I advocate that those be separate from the one-page business plan), the essential aspects of the business plan – who you will serve, what you will provide them, how you will charge, and how you will try to reach them – is an area that the target clientele themselves may be best positioned to provide constructive feedback. And in the process, once again you’ll effectively be explaining exactly what your niche business does to target clientele who could either do business with you directly, or refer business to you , even as you’re asking for their advice about how to make the business better (to serve people just like them!). So whether it’s people you’re not yet doing business with but want to, or an existing client advisory board with whom you want to go deeper, vetting your plan with prospective and current clients is an excellent opportunity to talk about and promote your business, even as you’re going through the process of refining it and making it better!

And notably, the other benefit of vetting your business plan with others – whether it’s a coach, colleague, prospects, or clients – is that the process of talking through the business plan and goals with them also implicitly commits to them that you plan to act on the plan and really do what’s there. In turn, what this means is that once you’ve publicly and openly committed to the business plan with them, it’s now fair game for them to ask you how it’s going, and whether you’re achieving the goals you set forth for yourself in the plan – an essential point of accountability to help you ensure that you’re following through on and executing the business plan you’ve created!

So what do you think? Have you ever created a formal business plan for yourself? If you have, what worked for you – a longer plan, or a shorter one? If you haven’t created a business plan for yourself, why not? Do you think the kind of one-page financial advisor business plan template articulated here would help? Have you checked out our financial advisor business plan sample template  for yourself? Do you have a financial advisor business plan example you're willing to share in the comments below?

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How to Write a Financial Advisor Business Plan (+ Template)

Creating a business plan is essential for any business, but it can be especially helpful for financial advisor businesses that want to improve their strategy and raise funding.

A well-crafted business plan not only outlines the vision for your company, but also documents a step-by-step roadmap of how you are going to accomplish it. In order to create an effective business plan, you must first understand the components that are essential to its success.

This article provides an overview of the key elements that every financial advisor business owner should include in their business plan.

Download the Ultimate Financial Advisor Business Plan Template

What is a Financial Advisor Business Plan?

A financial advisor business plan is a formal written document that describes your company’s business strategy and its feasibility. It documents the reasons you will be successful, your areas of competitive advantage, and it includes information about your team members. Your business plan is a key document that will convince investors and lenders (if needed) that you are positioned to become a successful venture.

Why Write a Financial Advisor Business Plan?

A financial advisor business plan is required for banks and investors. The document is a clear and concise guide of your business idea and the steps you will take to make it profitable.

Entrepreneurs can also use this as a roadmap when starting their new company or venture, especially if they are inexperienced in starting a business.

Writing an Effective Financial Advisor Business Plan

The following are the key components of a successful financial advisor business plan:

Executive Summary

The executive summary of a financial advisor business plan is a one- to two-page overview of your entire business plan. It should summarize the main points, which will be presented in full in the rest of your business plan.

• Start with a one-line description of your financial advisor company
• Provide a short summary of the key points in each section of your business plan, which includes information about your company’s management team, industry analysis, competitive analysis, and financial forecast, among others.

Company Description

This section should include a brief history of your company. Include a short description of how your company began and provide a timeline of milestones your company has achieved.

If you are just starting your financial advisor business, you may not have a long company history. Instead, you can include information about your professional experience in this industry and how and why you conceived your new venture. If you have worked for a similar company before or have been involved in an entrepreneurial venture before starting your financial advisor firm, mention this.

You will also include information about your chosen financial advisor business model and how, if applicable, it is different from other companies in your industry.

Industry Analysis

The industry or market analysis is an important component of a financial advisor business plan. Conduct thorough market research to determine industry trends and document the size of your market. 

Questions to answer include:

• What part of the financial advisor industry are you targeting?
• How big is the market?
• What trends are happening in the industry right now (and, if applicable, how do these trends support the success of your company)?

You should also include sources for the information you provide, such as published research reports and expert opinions.

Customer Analysis

This section should include a list of your target audience(s) with demographic and psychographic profiles (e.g., age, gender, income level, profession, job titles, interests). You will need to provide a profile of each customer segment separately, including their needs and wants.

For example, financial advisor business customers may include corporate human resources departments, small business owners, and individual investors.

You can include information about how your customers make the decision to buy from you as well as what keeps them buying from you.

Develop a strategy for targeting those customers who are most likely to buy from you, as well as those that might be influenced to buy your products or financial advisor services with the right marketing.

Competitive Analysis

The competitive analysis helps you determine how your product or service will be different from competitors, and what your unique selling proposition (USP) might be that will set you apart in this industry.

For each competitor, list their strengths and weaknesses. Next, determine your areas of competitive differentiation and/or advantage; that is, in what ways are you different from and ideally better than your competitors.

Below are sample competitive advantages your financial advisor business may have:

• Extensive knowledge and experience in the industry
• Proven track record of success
• Strong relationships with clients
• Offers a unique service that is not currently being offered by competitors
• Highly specialized services that cater to a specific niche
• Low overhead costs

Marketing Plan

This part of the business plan is where you determine and document your marketing plan. Your plan should be clearly laid out, including the following 4 Ps.

• Product/Service : Detail your product/service offerings here. Document their features and benefits.
• Price : Document your pricing strategy here. In addition to stating the prices for your products/services, mention how your pricing compares to your competition.
• Place : Where will your customers find you? What channels of distribution (e.g., partnerships) will you use to reach them if applicable?
• Promotion : How will you reach your target customers? For example, you may use social media, write blog posts, create an email marketing campaign, use pay-per-click advertising, or launch a direct mail campaign. Or you may promote your financial advisor business via word-of-mouth or referrals.  

Operations Plan

This part of your financial advisor business plan should include the following information:

• How will you deliver your product/service to customers? For example, will you do it in person or over the phone only?
• What infrastructure, equipment, and resources are needed to operate successfully? How can you meet those requirements within budget constraints?

The operations plan is where you also need to include your company’s business policies. You will want to establish policies related to everything from customer service to pricing, to the overall brand image you are trying to present.

Finally, and most importantly, in your Operations Plan, you will lay out the milestones your company hopes to achieve within the next five years. Create a chart that shows the key milestone(s) you hope to achieve each quarter for the next four quarters, and then each year for the following four years. Examples of milestones for a financial advisor business include reaching $X in sales. Other examples include acquiring a certain number of clients or partners, launching a new service, opening a new location, and hiring key personnel.

Management Team

List your team members here, including their names and titles, as well as their expertise and experience relevant to your specific financial advisor industry. Include brief biography sketches for each team member.

Particularly if you are seeking funding, the goal of this section is to convince investors and lenders that your team has the expertise and experience to execute on your plan. If you are missing key team members, document the roles and responsibilities, you plan to hire for in the future.

Financial Plan

Here, you will include a summary of your complete and detailed financial plan (your full financial projections go in the Appendix). 

This includes the following three financial statements:

Income Statement

Your income statement should include:

• Revenue : how much revenue you generate.
• Cost of Goods Sold : These are your direct costs associated with generating revenue. This includes labor costs, as well as the cost of any equipment and supplies used to deliver the product/service offering.
• Net Income (or loss) : Once expenses and revenue are totaled and deducted from each other, this is the net income or loss.

Sample Income Statement for a Startup Financial Advisor Firm

Financial advisor balance sheet.

Include a balance sheet that shows your assets, liabilities, and equity. Your balance sheet should include:

• Assets : Everything you own (including cash).
• Liabilities : This is what you owe against your company’s assets, such as accounts payable or loans.
• Equity : The worth of your business after all liabilities and assets are totaled and deducted from each other.

Sample Balance Sheet for a Startup Financial Advisor Firm

Cash flow statement.

Include a cash flow statement showing how much cash comes in, how much cash goes out and a net cash flow for each year. The cash flow statement should include cash flow from:

• Investments

Below is a sample of a projected cash flow statement for a startup financial advisor business.

Sample Cash Flow Statement for a Startup Financial Advisor Firm

You will also want to include an appendix section which will include:

• Your complete financial projections
• A complete list of your company’s business policies and procedures related to the rest of the business plan (marketing, operations, etc.)
• Any other documentation which supports what you included in the body of your business plan.

Writing a good business plan gives you the advantage of being fully prepared to launch and/or grow your financial advisor company. It not only outlines your business vision but also provides a step-by-step process of how you are going to accomplish it.

Following the tips and using the template provided in this article, you can write a financial advisor business plan that will help you succeed.  

Finish Your Financial Advisor Business Plan in 1 Day!

Wish there was a faster, easier way to finish your Financial Advisor business plan?

With our Ultimate Financial Advisor Business Plan Template you can finish your plan in just 8 hours or less!

Other Helpful Articles

Financial Advisor Marketing Plan to Get Clients (+Template)

Establishing Business Goals For Your First Year as a Financial Advisor

Developing Your Financial Advisor Value Proposition

How to Create a Financial Advisor Vision Statement

How to Write a Financial Planner Business Plan (+ Template)

Financial Advisor Business Plan Template

Written by Dave Lavinsky

Business Plan Outline

• Financial Advisor Business Plan Home
• 1. Executive Summary
• 2. Company Overview
• 3. Industry Analysis
• 4. Customer Analysis
• 5. Competitive Analysis
• 6. Marketing Plan
• 7. Operations Plan
• 8. Management Team
• 9. Financial Plan

Financial Advisor Business Plan

You’ve come to the right place to create your financial advisor business plan.

We have helped over 10,000 entrepreneurs and business owners create business plans and many have used them to start or grow their financial advisor businesses. Our financial advisor business plan template will help you create your business plan, ensuring that you have all the necessary elements to make your financial advisor business a success.

To write a successful financial advisor business plan, you will first need to decide what type of financial advisor services you will offer. Will you be working with small businesses? Or are your target customers individuals saving for retirement?

You will need to gather information about your business and the financial advisor industry. This type of information includes business goals, customer demographics, market research, and financial statements.

Below are links to each section of a financial advisor business plan example:

Next Section: Executive Summary >

Financial Advisor Business Plan FAQs

What is a financial advisor business plan.

A financial advisor business plan is a plan to start and/or grow your financial advisor business. Among other things, it outlines your business concept, identifies your target customers, presents your marketing plan and details your financial projections.

You can  easily complete your financial advisor business plan using our Financial Advisor Business Plan Template here .

What Are the Main Types of Financial Advisor Companies?

There are different types of financial advisor firms . The most common kinds are the investment advisors, broker-dealers and brokers, certified financial planners, financial consultants, wealth advisors, and portfolio, investment, and asset managers. There are also digital platforms that provide automated, algorithm-driven investment services with little to no human supervision called robo-advisors.

What Are the Main Sources of Revenues & Expenses for Financial Advisors?

Financial advisors make money on client fees for financial planning services.  These are usually charged on an hourly basis or as a percentage of client assets under management. Another source of income are commissions for certain financial transactions, such as the sale of insurance products or the buying and selling of securities.

The key expenses are salaries and wages, and office space rent.

How to Start a Financial Advisor Business?

Starting a financial advisor business can be an exciting endeavor. Having a clear roadmap of the steps to start a business will help you stay focused on your goals and get started faster.

• Write A Financial Advisor Business Plan - The first step in starting a business is to create a detailed business plan that outlines all aspects of the venture. This should include market research on the financial industry and potential target market size, information on the services and/or products you will offer, marketing strategies, pricing details, competitive analysis and a solid financial forecast.
• Choose Your Legal Structure - It's important to select an appropriate legal entity for your business. This could be a limited liability company (LLC), corporation, partnership, or sole proprietorship. Each type has its own benefits and drawbacks so it’s important to do research and choose wisely so that your financial advisor business is in compliance with local laws.
• Register Your Business - Once you have chosen a legal structure, the next step is to register your financial advisor business with the government or state where you’re operating from. This includes obtaining licenses and permits as required by federal, state, and local laws.
• Identify Financing Options - It’s likely that you’ll need some capital to start your business, so take some time to identify what financing options are available such as bank loans, investor funding, grants, or crowdfunding platforms.
• Choose a Location - Whether you plan on operating out of a physical location or not, you should always have an idea of where you’ll be based should it become necessary in the future as well as what kind of space would be suitable for your operations.
• Hire Employees - There are several ways to find qualified employees and a top notch management team, including job boards like LinkedIn or Indeed as well as hiring agencies if needed – depending on what type of employees you need it might also be more effective to reach out directly through networking events.
• Market & Promote Your Business - Once you have all the necessary pieces in place, it’s time to start promoting and marketing your business. Marketing efforts includes creating a website, utilizing social media platforms like Facebook or Twitter, and having an effective Search Engine Optimization (SEO) strategy. You should also consider traditional marketing techniques such as radio or print advertising to reach your target audience.

Learn more about how to start a Financial Advisor business:

• How to Start a Financial Advisor Business

How Do You Get Funding for Your Financial Advisor Business Plan?

Financial advisor businesses are typically funded through small business loans, personal savings, credit card financing and angel investors.

A financial advisor's business plan should include a detailed financial plan to secure any type of potential investor. This is true for all types of financial advisor business plans including a financial planner business plan and a wealth management business plan.

Where Can I Get a Financial Advisor Business Plan PDF?

You can download our free financial advisor business plan template PDF here. This is a sample financial advisor business plan template you can use in PDF format.

Learn more about DJ Windle's decision to take his business from TDA to Altruist.

Crafting the perfect financial advisor business plan

As an independent Registered Investment Advisor (RIA), you understand the importance of planning and strategizing to achieve success. One of the most crucial tools for long-term success is creating a comprehensive business plan tailored to your specific needs as a financial advisor. 

A well-crafted business plan helps attract clients and partners. It provides a roadmap to keep your financial planning business on track for years‌ to come. In this blog post, we will explore the essential components of a business plan that caters to the unique needs of financial advisors.

1. Executive Summary

The executive summary is crucial to any financial advisor's business plan. It is a concise yet comprehensive business overview outlining its mission, vision, and objectives. In the case of an RIA firm, the summary should clearly explain its services, how it plans to achieve its business goals, and what unique factors set it apart from other competitors in the market. 

By presenting a well-crafted executive summary, the RIA firm can effectively communicate its value proposition to potential investors and stakeholders, paving the way for future success.

The executive summary is a critical section of your business plan as it serves as the first impression and encapsulates the main points of your plan. For example, you would say something like this:

ABC Financial is a forward-thinking Registered Investment Advisory firm based in San Francisco, California. As a tech-savvy, fiduciary-based firm, we aim to serve young professionals and tech industry employees seeking to build wealth and navigate complex financial situations. ABC Financial provides personalized, goal-based financial planning and strategic investment management, leveraging cutting-edge technology and a comprehensive understanding of the evolving financial landscape.

2. Company Overview

In this section of your business plan, you'll need to describe ‌the structure of your RIA firm, including the legal entity (e.g., sole proprietorship, partnership, or corporation), ownership, and management team. Provide brief bios for key team members, highlighting their relevant experience and qualifications.

Here's an example:

XYZ Wealth Management LLC is a newly established, independent Registered Investment Advisory (RIA) firm headquartered in Dallas, Texas. We operate as a Limited Liability Company (LLC), providing us with the flexibility of a partnership while enjoying the liability protections of a corporation. 

Our primary business focus is delivering comprehensive wealth management services to high-net-worth individuals and families, small business owners, and retirees. This includes financial planning, portfolio management, retirement planning, tax planning, and estate planning services. 

The firm is led by three managing partners: John Doe, Jane Smith, and Bill Brown. John, a Certified Financial Planner (CFP) with over 15 years of experience in the industry, will oversee financial planning services. Jane, a Chartered Financial Analyst (CFA) with a decade of experience managing portfolios, will lead investment management. Bill, with an MBA and extensive experience in operations and compliance, will manage the firm's business operations and ensure regulatory compliance.

Our advisory team also includes two Associate Advisors and a Client Services Associate. As our firm grows, we plan to expand our team to continue providing our clients with personalized attention and high-quality service.

3. Market Analysis

Conduct a thorough competitive analysis of the financial advisory market in your target area. This analysis includes understanding the size of your target market, its growth potential, and the demographics of your potential clients. Identify and segment your target clients based on age, income level, and investment objectives. 

Additionally, analyze your competition to identify its strengths and weaknesses and to determine how your RIA firm can differentiate itself.

The market analysis is an essential part of your business plan, as it helps you understand your target market and competitive landscape.

Here is an example of what a market analysis might contain:

• The total number of high-net-worth individuals and families in the target geographic area.
• The estimated total wealth of these individuals and families.
• A breakdown of their demographics, including age, occupation, and investment goals.
• An assessment of the current demand for wealth management services in this market.
• An analysis of competitors providing similar services to high-net-worth individuals and families, their market share, strengths, and weaknesses.
• Market trends and challenges, such as changing regulations, technological advancements, or economic factors that may impact the demand for wealth management services.

4. Services and Pricing

Outline your RIA firm's services, such as financial planning, portfolio management, and retirement planning. Describe your unique value proposition and how your services will meet the needs of your target clients. 

​​This section outlines the specific services your firm offers and the pricing model you'll follow. Here are a few examples:

XYZ Wealth Management offers a suite of services designed to cater to the financial needs of high-net-worth individuals and families. These services include:

• Comprehensive financial planning: Including cash flow management, tax planning, retirement planning, estate planning, and risk management.
• Investment management: Including portfolio construction, ongoing monitoring, and periodic rebalancing.
• Family wealth services: Including multigenerational wealth transfer strategies, philanthropic planning, and family governance.

XYZ Wealth Management operates on a fee-only basis, charging a percentage of assets under management (AUM). The fee schedule is as follows:

• 1.00% for the first $1 million
• 0.85% for $1 million - $3 million
• 0.70% for $3 million and above

ABC Retirement Advisors specializes in providing retirement planning services to pre-retirees and retirees. Our services include:

• Retirement income planning: Crafting strategies to generate a sustainable income stream during retirement.
• Social Security optimization: Advising clients on when and how to claim Social Security benefits to maximize their lifetime income.
• Medicare planning: Helping clients understand their Medicare options and make informed decisions.
• Long-term care planning: Evaluating the need for long-term care insurance and other strategies to cover potential long-term care costs.

ABC Retirement Advisors charges a flat fee for comprehensive retirement planning services, based on the complexity of the client's situation. The fee typically ranges from $2,000 to $5,000. In addition, we offer ongoing investment management services for a fee of 0.50% of AUM annually.

Remember, transparency in your services and pricing is key. Clients value knowing what services they will receive and how much they will pay for them. As a RIA, you have a fiduciary duty to act in the best interest of your clients, and this includes being clear and upfront about your fees.

5. Marketing and Sales Strategy

In this section, outline the strategies you plan to use to attract, engage, and convert your target audience into clients. This includes the tactics you'll employ to raise awareness of your firm, the platforms you'll use to reach your target market, and the process you'll follow to turn prospects into clients.

This strategy can include online marketing (website, social media, and email campaigns), traditional marketing (print ads, direct mail, and events), and networking through industry associations and local events. Outline your sales process, including how you will generate leads, nurture prospects, and convert them into clients. 

Your marketing and sales strategy should be aligned with your target market, competitive landscape, and unique value proposition. It should be flexible and adaptable, allowing you to adjust your tactics based on what's working, changes in the market, or new opportunities.

6. Operations and Infrastructure

Detail the operational aspects of your RIA firm, including technology platforms, compliance and regulatory requirements, and back-office support. Describe the tools and systems you will use to streamline processes, manage client portfolios, and maintain compliance with regulatory standards.

As a client-focused RIA firm, 

• Strive to operate transparently and efficiently. 
• Utilize best-in-class technology platforms to streamline operations and provide clients with a seamless experience. 
• Stress compliance and regulatory requirements are always top of mind.
• Ensure your team is up-to-date on the latest industry standards. 
• Emphasize back-office support, which allows us to focus on what matters most - helping our clients achieve their financial goals. 

This section aims to demonstrate that you have a solid operational foundation that will enable you to deliver high-quality services to your clients and keep your firm running smoothly. This will reassure potential clients, partners, and regulators that you have the systems and processes in place to manage your business effectively and responsibly.

7. Financial Projections and Goals

To effectively prepare for the future of your RIA firm, it is crucial to create comprehensive financial projections for the next three to five years. This entails developing an income, balance, and cash flow statement. Additionally, you should establish key performance indicators (KPIs) to monitor your progress and establish both short-term and long-term financial objectives. 

It can be advantageous to conduct a break-even analysis to determine the point at which your firm will become profitable. By taking these steps, you will be better equipped to make informed decisions and successfully navigate the challenges that lie ahead.

​​Remember, while these projections are based on estimates, they should be grounded in thorough research and realistic assumptions. 

Be prepared to explain and defend your projections to potential investors, lenders, or partners. You should also plan to update your financial projections regularly as your firm grows and evolves, and as you gain a better understanding of your business's financial performance.

8. Risk Assessment and Mitigation

As a reputable RIA firm, it is crucial to thoroughly assess potential risks that may threaten your business. These risks could range from market volatility and regulatory changes to cyber security breaches. 

Creating a comprehensive strategy and contingency plan will enable you to quickly and effectively respond to unforeseen circumstances to ensure your firm is well-prepared. This proactive approach will help safeguard your firm's reputation, financial stability, and client relationships.

A comprehensive business plan tailored to your unique needs is essential to success. Following this outline and incorporating each component into your business plan will create a solid foundation for your RIA firm and set you up for long-term growth and prosperity. Remember to revisit and update your business plan regularly to ensure it remains relevant and adapts to the changing landscape of the financial advisory industry.  

Risk assessment and mitigation is not a one-time task but an ongoing process. You should regularly review and update your risk assessment as your firm grows, the market changes or new risks emerge. By proactively identifying and addressing potential risks, you can increase the resilience and sustainability of your firm.

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Essential Parts of a Financial Advisor Business Plan

In the world of finance, foresight is everything, and that extends to how one manages their own business affairs. At the heart of a successful advisory firm lies a well-constructed financial planner business plan. But why is such a plan indispensable?

First and foremost, having a concrete business plan provides clarity. It allows financial advisors to map out their business goals with precision. This ensures every move is calculated and in line with their larger vision. 

This isn’t a luxury—it's a necessity. You wouldn’t advise clients without a detailed financial strategy, right? Similarly, running an advisory firm without a plan can lead to haphazard decisions and missed opportunities.

Moreover, in the realm of small businesses, which many advisory firms fall under, the terrain is fraught with challenges. From competition to regulatory changes, the landscape is ever-evolving.

Through meticulous planning, including identifying potential risks and strategizing on growth opportunities, advisors can navigate these complexities with confidence.

Here's our breakdown of everything you need to include in your comprehensive wealth management business plan. 

The Executive Summary

At the forefront of every robust business plan for financial advisors lies the executive summary. Think of it as the trailer to a blockbuster movie. It provides a concise overview of your business's entire narrative, touching on the highlights, the challenges, and the anticipated outcomes.

For a financial advisor, this section is vital. It encapsulates everything from your firm's mission and operational strategy to financial projections. The executive summary serves a dual purpose. 

First, it's a quick reference tool for those already familiar with your firm. It’s also a comprehensive introduction for potential investors who might be pursuing your plan for the first time.

While the bulk of your business plan dives deep into specifics, the executive summary gives readers an aerial view. It captures the essence of your advisory venture and its potential trajectory.

The Company Overview

The next step is to delve into the specifics of your enterprise with a comprehensive company overview. This section acts as the backbone of your blueprint. It provides critical details about your advisory firm's inception, its goals, and how it operates in the financial landscape.

The company overview addresses the "who, what, and why" of your business. It's where you define your target market, specify your services, and highlight your unique selling propositions. For instance, your firm might lean heavily on social media for client acquisition or financial education. If so, this is the place to note that.

Furthermore, understanding the nuances of cash flow and the financial structure of your business is crucial. This overview provides a clear snapshot for stakeholders, ensuring that they grasp the operational and financial vitality of your advisory firm. It sets the stage, offering context and clarity for the subsequent sections of your plan.

Industry Analysis

The industry analysis is a pivotal section in a financial advisor's business plan. It sheds light on the larger financial landscape in which the advisor operates. It encompasses a thorough competitive analysis, allowing the business owner to understand where their firm stands in relation to peers. 

Recognizing the strengths, weaknesses, opportunities, and threats in the industry provides invaluable insights. Such comprehension forms the bedrock of a sound marketing strategy. Staying informed about the industry's dynamics is essential. It allows an advisor to pivot when necessary, capitalize on emerging trends, and stay ahead in a competitive market.

Customer Analysis

In the realm of financial advising, understanding one's clientele is paramount. A thorough customer analysis provides insights into the specific needs and preferences of the clients in your target market. 

Financial advising clients are all different. Some are seeking wealth management to grow their assets. Others want financial planning for long-term stability, or retirement planning for a secure future. 

Still more need assistance with estate planning to ensure their legacy is passed on as intended. Recognizing these distinct requirements is crucial. 

By comprehensively analyzing the diverse financial objectives of clients, advisors can tailor their services more effectively. Ultimately, this will ensure they meet the unique goals and expectations of each individual they serve.

Competitive Analysis

A competitive analysis is a cornerstone for any RIA business plan. It involves diving deep into the market to understand how your financial advisory firm stacks up against competitors. What strategies are other firms using in their marketing plans? Which financial advisor business models are proving to be the most successful? 

By understanding the strengths and weaknesses of competitors, you can identify potential opportunities and threats in the marketplace. This information can be invaluable. It allows you to fine-tune your services, adjust your marketing strategies, and ultimately create a more resilient and successful business. After all, in the world of finance, knowledge truly is power.

Marketing Plan

Central to any investment advisor business plan is the marketing plan. It's where you lay out strategies to attract and retain clients. The marketing plan outlines how you'll position yourself in the industry. This includes the channels you'll use to reach potential clients and the tactics for engagement. 

Whether it's through social media campaigns, seminars, or referral programs, the marketing plan gives direction on promoting your services effectively. By aligning marketing efforts with overall business goals, you ensure that resources are used efficiently. Ultimately, this will drive growth and enhance your firm's reputation in the financial advisory landscape.

Operations Plan

The operations plan is a blueprint for the day-to-day functioning of a financial advisory firm. It outlines the nuts and bolts of how the business will run. From the client onboarding process to the management of resources. From the roles of members on your team to protocols for service delivery, the operations plan covers it all. 

A well-crafted operations plan ensures smooth operations, minimizes errors, and promotes a consistent, high-quality service experience for clients. Having this plan in place is essential to maintain efficiency, build trust, and nurture a growing client base.

Management Team

The management team section of a financial advisor's business plan highlights the individuals steering the firm towards its goals. It showcases the qualifications, experience, and expertise of key team members, underscoring their ability to execute the business's vision. 

By detailing their backgrounds and roles, potential investors or partners can gauge the leadership's competence and the firm's potential for success. This section provides reassurance to stakeholders that the business is in capable hands and that the team possesses the requisite skills and experience to drive growth, navigate challenges, and make sound financial decisions.

Financial Plan

The financial plan is a pivotal section of a financial advisor's business strategy, mapping out the fiscal foundation and anticipated growth of the firm. This section details the company's current financial status, projected revenue, expenses, and profitability. 

By laying out investment requirements, forecasting cash flows, and setting financial milestones, it offers a clear picture of the business's fiscal health and viability. Stakeholders, including potential investors and lenders, often scrutinize this portion to understand the sustainability of the business and to ascertain the potential return on investment.

Take Planning to the Next Level

Having created a business plan template is, unfortunately, only the first step to success. Lucky for you, Planswell has been perfecting the process of prospecting and closing deals for years. In fact, we’ve spent over $15 million on this learning process. 

We’ve developed a complete system advisors can use to boost their booking and close rate. We guarantee it.

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How to Create a Successful Financial Advisor Business Plan

A few days of careful planning could save you months of practice management mistakes. As a financial advisor, you have great ideas. You believe you can offer a client experience that exceeds all others. The challenge now is to communicate that vision to prospects and to define the structure of your business to allow you to bring your vision to life. In this post, we’ll provide some key tips on how to create a financial advisor business plan, so you can define your vision and outline clear, actionable steps to help you achieve your business goals.

Need assistance with your business plan or defining your vision? Request a free consultation call with an experienced financial advisor coach from Northstar Leadership Solutions today.

Start with Your Mission & Vision

Your innovative ideas are just thoughts until they’re on paper. Write your thoughts down and create a mission and vision statement for your firm. Explain why you do what you do, what you have to offer, and how you’re the best fit for those you want to provide services to. Be expansive on the first drafts, then cut them down to a few concise statements.

Your financial advisor business plan should include both your mission statement and vision statement:

• A mission statement is a concise overview of your company values.
• A vision statement outlines your goals and steps to help you achieve your mission.

For instance, the vision statement of the Alzheimer’s Association is simply “A world without Alzheimer’s disease.” Their mission statement explains how they plan to get there.

Take a Professional Inventory: Perform a SWOT Analysis

It’s important to understand what your competitive position is before you can get into more in-depth strategic planning. This involves taking a detailed look at yourself and your firm. Asking for outside perspective in this step is recommended, since we all view ourselves through a somewhat distorted lens. The process is called a SWOT analysis:

• Strengths: Examine strengths on both a personal and organizational level. What exactly do you bring to the table? In what areas is your practice strongest? Answers may include client service, technology, access to better financial strategies and products, etc.
• Weaknesses: This is an area that most of us are reluctant to acknowledge, but we all have weaknesses. Understanding what yours are is critical if you’re going to be successful. Be honest, and you might just find areas where you can improve. This is an area where an outside perspective is often the most helpful.
• Opportunities: This is a category you’ll need to update each time you do a SWOT analysis for your firm, which should be frequently. There are always opportunities for growth and improvement. Identify what they are so you can go after them.
• Threats: Do you anticipate a down market affecting your ability to find new clients? Is there an increase in the number of competitors in your space? Don’t view these threats with fear. Instead, identify them, acknowledge them, and make a plan to overcome each potential pitfall.

Identify Your Target Market: Follow the Money

Pull up the data you gathered when drafting your mission and vision statements. Combine it with the list of opportunities you compiled in the SWOT analysis. The combination should give you the ability to define a target or “niche” market where you can seek out new clients. Look for markets that you feel comfortable operating in. Where will your strengths be most useful?

The most common mistake when choosing a target market is to ignore the data and “go with your gut.” You won’t close any deals if there isn’t an opportunity there, even if your strengths give you a competitive advantage. The most important factor when scaling your practice is to prospect where the money is. Don’t waste your time looking elsewhere.

Understand What You’re Up Against: Analyze the Competition

You will always have competitors. Some of them will be other financial advisors. Others could be robo platforms or even stock promoters like Motley Fool and Mad Money. As technology improves, advisory firms are doing business on a national and global scale. Don’t just analyze competition by geographical proximity. That doesn’t exist anymore.

Most of your competitive analysis can be done online. Look at other websites, read their blog posts, and analyze their mission and vision statements. If there are product pages or technology links, examine those. You should also look at any “about us” or “team” pages to see profiles of the principles. Follow that up with a search on LinkedIn to see what they’re sharing.

When including your competitive analysis in your business plan, take note of your top competitors, what they’re doing right, and how you can match or outdo their offering.

Getting the Word Out: Create a Marketing Plan

Everything in your business plan that you’ve done to this point has been designed to get you here. You know who you are and what your firm stands for. Your target market is defined. Competitors have been analyzed. Now it’s time to put it all together and come up with some messaging for your marketing campaign. If you struggle with that, seek professional assistance .

Once you have a grasp on what you want to say, the next step is to figure out where to say it. Your target market demographics may give you the answer to this. Where are they most likely to see your messaging? Social media offers a multitude of opportunities. Trade shows or conferences might be a good fit, depending on your niche. You could even try teaching financial literacy classes.

Don’t get married to any single idea. Marketing is a process of trialing new messages, analyzing results, then tweaking or changing that messaging to get better results. Circumstances may change. New opportunities could open up. Economic and employment trends may shift. Be prepared to make adjustments. Marketing should be fluid, not fixed.

Identify Management & Operational Needs

You’ll need an infrastructure of some kind to handle all the new clients you’ll bring in. There’s also the issue of financing your business venture. This is the final step. Figure out how many people you need and how much it will cost. Once you’ve mapped all that out, your business plan is complete and you’re ready to launch your firm.

Take Your Business to the Next Level

We hope this guide on how to create a financial advisor business plan has helped you focus your thoughts and create a plan of action to achieve your business goals. If you are struggling with your business plan or unsure where to go from here, consider working with a financial advisor coach.

At Northstar Leadership Solutions, we will work closely with you to help you refine your vision, define your goals, and build a plan of action for growth. Get in touch today to request a free initial consultation.

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Neal Richards

Text: (541) 287-6501

Neal Richards is the CEO and author of Axiom Wealth Strategies.  He founded Axiom in the desire to help families build true wealth.  He believes that there are lasting principles to wealth building that, if understood and embraced, yield fruit in this life and in the lives to come.  He believes these principles of wisdom are where true wealth resides. He named the firm “Axiom,” which means “self-evidently true,” with the hope of pointing to this wisdom and reveal where true wealth is found. 

Neal began his career in 2007 working in Bend during the financial crisis and the great recession for Northwestern Mutual, a Life Insurance company.  This experience helped refine his business as well as his personal financial planning.  In 2012 Neal began working for Wells Fargo Advisors where he worked helping clients invest and plan.  His experience at Wells Fargo Advisors amalgamized his investment philosophy as well as his conviction in the value of planning over product.  In April of 2017, Neal joined Cascade Financial Strategies, an independent RIA, where his practice blossomed into what it is today.  

Neal and his wife Lindsey, married since 2006, reside in Bend Oregon where he and his five kids (Lydia, Thomas, Hazel, Miles and Ambrose) Puppy, 20 chickens, 2 rabbits, 2 cats, a goose, 10 ducks, and a fish share life together.  When he isn’t working or at home he can be found running and biking the local trails and training for triathlons at the pool. 

Who he is can be reflected in the people in his life he is most thankful for:

• His wife and kids: “I’m not sure where you end, and I begin.”
• His mom and dad, Janet and Thomas Richards: “I am eternally grateful for you both.”
• Working associate, John Aspell: “I owe you my career… thanks for taking a chance on me.”
• Rene Girard, RC Sproul, Dave Ramsey, Nick Murray, Michael Kitces: “These people have given me the lens through which I see the world.” 

Kem Rondeau

Text:    (541) 625-4196

Kem Rondeau is the Executive Assistant for Axiom Wealth Strategies. She has extensive experience in administration having held positions in human resources, teaching, license coordinator and a variety of management roles. The rapid growth of Axiom Wealth Strategies is an exciting and challenging adventure that utilizes all the valuable wisdom gathered through experiences. Her outgoing and warm-hearted personality makes it easy to connect and bring out the best in others.

Kem graduated from Northwest Christian University with a Bachelor of Arts with secondary education and currently studying for the SIE exam and Series 24.

Kem was born and raised in Oregon. She has lived in Bend for last six years with her three-year-old lab, Jadee. She is indescribably thankful for the people in her life including her children, grandchildren, family and friends.

Outside of work she enjoys hiking, traveling and photography as well as being a part of the community by giving back to the schools.

Grant Finter

Text:  (541) 717-8739

Grant Finter is an Associate Advisor with Axiom Wealth Strategies' Bend office.  Grant's areas of focus are retirement planning, and generational wealth building.

His call to become a Financial Advisor was heavily influenced by the advisors he worked with while establishing his own families' financial plan.  The value he saw these advisors add secured his decision to help people in the same way: through, measured, and thoughtful financial advice.  He is thrilled to be fostering the values centered growth of Axiom Wealth Strategies, serving clients well, and honoring his mentors.

Originally hailing from Kansas, Grant graduated from the University of Kansas with a Bachelor of Science Degree.  He then began his career within the banking industry in Kansas City in 2003.  Grant then moved to Chicago to open a new office for a wholesale mortgage banking corporation.  Through a few mergers he worked for several national banks such as Wachovia and Wells Fargo.

Grant moved to Bend with his bride, Erin, in 2011 when he decided to pause a career in banking to raise their family of three while his spouse's busy surgical practice grew.  This time with his kids was invaluable and an investment that will surely pay dividends for decades to come.  When his three kids Kate, Charlie, and Caroline had all grown to school age he was anxious to get back to work in the financial sector.  

When not at work his family can be found at Lake Billy Chinook, Mt Bachelor, a local golf course, trail, or simply enjoying all that Central Oregon has to offer.

Who Grant is can be reflected in the people in his life he is most thankful for:

• His family: "Nothing is more humbling than the responsibility of being a husband and parent.  The last 11 plus years of parenting have taught me a degree of love and patience I couldn't have known otherwise."
• His parents:  "The principled upbringing I received wasn't my favorite as a teen.  However, it prepared me for life as a man that I am eternally thankful for.  Love you guys!"
• "Vickie Sperry taught a young kid about professionalism and confident leadership by example." 
• "James Fleck impressed upon me that a non-emotional approach to the markets is essential to success.  Pointedly, opportunity can be found in all market conditions."

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George Luke

Text:  (208) 856-6808

George Luke is an Associate Financial Advisor with Axiom Wealth Strategies Moscow Idaho office.

He was raised in Illinois and is an avid learner.  He went to Vanderbilt University (Nashville) and received a B.S. in Child Studies as he pursued a degree in education. He received his M.A. from Bethlehem Seminary (Minneapolis) in Biblical and Pastoral Studies, and apprenticed at Greyfriars Hall while discerning a ministerial call and teaching at various schools. George has the heart of a teacher.

His passion for becoming a wise lover of people and their interactions drove him to study economics, analytics, and finances while he taught.  In 2024, George received a call to become a financial planner, a parallel application of his love for education, finances, and counseling.

George has tried to imitate Christ in the lessons of his mentors, his father's work ethic and love for people and negotiations, and his mother's faith in Christ and love for food with family. He loves spending time with the Lord above all, sitting under God's Word at Church. He loves his wife's laughs, his daughter's enthusiastic hugs, working out, throwing his son in the air, and getting eggs from their chickens. He could be found analyzing Clone Wars or a Disney Princess movie with the family, marveling at his wife's creativity in making deep dish sourdough pizza (and bread pudding recipes), and reading a never-ending list of good books with drink in hand.

Who George is can be reflected in the people in his life he is most thankful for:

• His middle school teacher Casey Solgos taught George through Atticus Finch that Christian men courageously fight battles to make a world built on truth.
• A minority  economist named Thomas Sowell in Discrimination and Disparities taught George to resist using race, social status, or any personal or societal obstacles as excuses for individual responsibility to manage ourselves well and to serve others.
• Doug Wilson's book To A Thousand Generations helped George think generationally while tending the vine that bears much fruit in this life and the lives to come.
• George has learned three main lessons from mentors in his life: be courageous, take responsibility, think generationally.

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MoSCoW Prioritization

What is moscow prioritization.

MoSCoW prioritization, also known as the MoSCoW method or MoSCoW analysis, is a popular prioritization technique for managing requirements. 

  The acronym MoSCoW represents four categories of initiatives: must-have, should-have, could-have, and won’t-have, or will not have right now. Some companies also use the “W” in MoSCoW to mean “wish.”

What is the History of the MoSCoW Method?

Software development expert Dai Clegg created the MoSCoW method while working at Oracle. He designed the framework to help his team prioritize tasks during development work on product releases.

You can find a detailed account of using MoSCoW prioritization in the Dynamic System Development Method (DSDM) handbook . But because MoSCoW can prioritize tasks within any time-boxed project, teams have adapted the method for a broad range of uses.

How Does MoSCoW Prioritization Work?

Before running a MoSCoW analysis, a few things need to happen. First, key stakeholders and the product team need to get aligned on objectives and prioritization factors. Then, all participants must agree on which initiatives to prioritize.

At this point, your team should also discuss how they will settle any disagreements in prioritization. If you can establish how to resolve disputes before they come up, you can help prevent those disagreements from holding up progress.

Finally, you’ll also want to reach a consensus on what percentage of resources you’d like to allocate to each category.

With the groundwork complete, you may begin determining which category is most appropriate for each initiative. But, first, let’s further break down each category in the MoSCoW method.

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Moscow prioritization categories.

1. Must-have initiatives

As the name suggests, this category consists of initiatives that are “musts” for your team. They represent non-negotiable needs for the project, product, or release in question. For example, if you’re releasing a healthcare application, a must-have initiative may be security functionalities that help maintain compliance.

The “must-have” category requires the team to complete a mandatory task. If you’re unsure about whether something belongs in this category, ask yourself the following.

If the product won’t work without an initiative, or the release becomes useless without it, the initiative is most likely a “must-have.”

2. Should-have initiatives

Should-have initiatives are just a step below must-haves. They are essential to the product, project, or release, but they are not vital. If left out, the product or project still functions. However, the initiatives may add significant value.

“Should-have” initiatives are different from “must-have” initiatives in that they can get scheduled for a future release without impacting the current one. For example, performance improvements, minor bug fixes, or new functionality may be “should-have” initiatives. Without them, the product still works.

3. Could-have initiatives

Another way of describing “could-have” initiatives is nice-to-haves. “Could-have” initiatives are not necessary to the core function of the product. However, compared with “should-have” initiatives, they have a much smaller impact on the outcome if left out.

So, initiatives placed in the “could-have” category are often the first to be deprioritized if a project in the “should-have” or “must-have” category ends up larger than expected.

4. Will not have (this time)

One benefit of the MoSCoW method is that it places several initiatives in the “will-not-have” category. The category can manage expectations about what the team will not include in a specific release (or another timeframe you’re prioritizing).

Placing initiatives in the “will-not-have” category is one way to help prevent scope creep . If initiatives are in this category, the team knows they are not a priority for this specific time frame. 

Some initiatives in the “will-not-have” group will be prioritized in the future, while others are not likely to happen. Some teams decide to differentiate between those by creating a subcategory within this group.

How Can Development Teams Use MoSCoW?

  Although Dai Clegg developed the approach to help prioritize tasks around his team’s limited time, the MoSCoW method also works when a development team faces limitations other than time. For example: 

Prioritize based on budgetary constraints.

What if a development team’s limiting factor is not a deadline but a tight budget imposed by the company? Working with the product managers, the team can use MoSCoW first to decide on the initiatives that represent must-haves and the should-haves. Then, using the development department’s budget as the guide, the team can figure out which items they can complete. 

Prioritize based on the team’s skillsets.

A cross-functional product team might also find itself constrained by the experience and expertise of its developers. If the product roadmap calls for functionality the team does not have the skills to build, this limiting factor will play into scoring those items in their MoSCoW analysis.

Prioritize based on competing needs at the company.

Cross-functional teams can also find themselves constrained by other company priorities. The team wants to make progress on a new product release, but the executive staff has created tight deadlines for further releases in the same timeframe. In this case, the team can use MoSCoW to determine which aspects of their desired release represent must-haves and temporarily backlog everything else.

What Are the Drawbacks of MoSCoW Prioritization?

  Although many product and development teams have prioritized MoSCoW, the approach has potential pitfalls. Here are a few examples.

1. An inconsistent scoring process can lead to tasks placed in the wrong categories.

  One common criticism against MoSCoW is that it does not include an objective methodology for ranking initiatives against each other. Your team will need to bring this methodology to your analysis. The MoSCoW approach works only to ensure that your team applies a consistent scoring system for all initiatives.

Pro tip: One proven method is weighted scoring, where your team measures each initiative on your backlog against a standard set of cost and benefit criteria. You can use the weighted scoring approach in ProductPlan’s roadmap app .

2. Not including all relevant stakeholders can lead to items placed in the wrong categories.

To know which of your team’s initiatives represent must-haves for your product and which are merely should-haves, you will need as much context as possible.

For example, you might need someone from your sales team to let you know how important (or unimportant) prospective buyers view a proposed new feature.

One pitfall of the MoSCoW method is that you could make poor decisions about where to slot each initiative unless your team receives input from all relevant stakeholders. 

3. Team bias for (or against) initiatives can undermine MoSCoW’s effectiveness.

Because MoSCoW does not include an objective scoring method, your team members can fall victim to their own opinions about certain initiatives. 

One risk of using MoSCoW prioritization is that a team can mistakenly think MoSCoW itself represents an objective way of measuring the items on their list. They discuss an initiative, agree that it is a “should have,” and move on to the next.

But your team will also need an objective and consistent framework for ranking all initiatives. That is the only way to minimize your team’s biases in favor of items or against them.

When Do You Use the MoSCoW Method for Prioritization?

MoSCoW prioritization is effective for teams that want to include representatives from the whole organization in their process. You can capture a broader perspective by involving participants from various functional departments.

Another reason you may want to use MoSCoW prioritization is it allows your team to determine how much effort goes into each category. Therefore, you can ensure you’re delivering a good variety of initiatives in each release.

What Are Best Practices for Using MoSCoW Prioritization?

If you’re considering giving MoSCoW prioritization a try, here are a few steps to keep in mind. Incorporating these into your process will help your team gain more value from the MoSCoW method.

1. Choose an objective ranking or scoring system.

Remember, MoSCoW helps your team group items into the appropriate buckets—from must-have items down to your longer-term wish list. But MoSCoW itself doesn’t help you determine which item belongs in which category.

You will need a separate ranking methodology. You can choose from many, such as:

• Weighted scoring
• Value vs. complexity
• Buy-a-feature
• Opportunity scoring

For help finding the best scoring methodology for your team, check out ProductPlan’s article: 7 strategies to choose the best features for your product .

2. Seek input from all key stakeholders.

To make sure you’re placing each initiative into the right bucket—must-have, should-have, could-have, or won’t-have—your team needs context. 

At the beginning of your MoSCoW method, your team should consider which stakeholders can provide valuable context and insights. Sales? Customer success? The executive staff? Product managers in another area of your business? Include them in your initiative scoring process if you think they can help you see opportunities or threats your team might miss. 

3. Share your MoSCoW process across your organization.

MoSCoW gives your team a tangible way to show your organization prioritizing initiatives for your products or projects. 

The method can help you build company-wide consensus for your work, or at least help you show stakeholders why you made the decisions you did.

Communicating your team’s prioritization strategy also helps you set expectations across the business. When they see your methodology for choosing one initiative over another, stakeholders in other departments will understand that your team has thought through and weighed all decisions you’ve made. 

If any stakeholders have an issue with one of your decisions, they will understand that they can’t simply complain—they’ll need to present you with evidence to alter your course of action.  

Related Terms

2×2 prioritization matrix / Eisenhower matrix / DACI decision-making framework / ICE scoring model / RICE scoring model

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Creating a Tea Room Business Plan: What It Takes to Be Successful

A tea room can be one of those unique places where people take time out of their busy day to relax. It’s not surprising there has been a surge in the wellness benefits of tea blends that help with reducing stress and improving overall health. It’s a great business to be in if you do it right.

At The Spice & Tea Exchange, we are an established franchise in the tea industry. If you’re looking for a work-life balance where your finances and passions are aligned, there are some key steps you can take. First, you need a strong business plan for your tea bar franchise.

The Tea Room Business: Plan the Idea

The global tea market is very large and on a global scale and extends not only to regular tea drinkers, but also into the cooking, tourism, and health sectors. According to market researchers IMARC Group, the tea industry is exhibiting a growth rate (CAGR) of 4.7% during 2024-2032 . The research also notes that specialty and higher-quality teas are more appealing to consumers today who are looking for an experience beyond a grocery store tea purchase.

Determining whether a tea room is a good opportunity depends on knowing if you have the customers you need to be viable and a location that will help drive traffic for residents and visitors. A tea room is an in-person business, and if you don’t have customers, you won’t have a business.

Building a Successful Strategy

The Spice & Tea Exchange is a tea bar franchise with a multi-revenue stream business model. We strongly recommend that your tea room business strategy has diverse product and service offerings that can result in multiple revenue streams and continuously engage the customer. This is not a business to put all of your efforts into a single revenue stream.

Take a look at what other tea room franchises are offering and compare that to what already exists in your targeted territory. Think about how you can elevate a customer’s experience from what they’re currently receiving, or if you can introduce a new experience that customers might be craving.

This information-gathering stage is important for putting together a tea room business plan that will result in a positive financial outcome.

Tea Franchising with The Spice & Tea Exchange

If you’re not quite sure whether you’re ready to go it alone as you invest and plan your business future, there are other options to consider, such as a tea room franchise, where you’ll have a whole team of people to support you.

You can own a tea retail and tea house franchise with The Spice & Tea Exchange. Step into a proven business model that’s already in operation and that comes with a support team behind you. There are some important details about The Spice & Tea Exchange that work to your benefit:

●       Single vendor. You do not have to manage hundreds of vendors for your products. With us, there’s one vendor for 95% of your products. We are the largest spice and tea specialty retailer in the U.S.

●       Innovation . We have a staff of culinary experts who make sure we’re on trend with what’s happening in the gourmet and wellness worlds.

●       Privately held. Our private-label products are only available through franchise locations and our website. This gives you an instant unique selling point.

●       Quality control. We are an in-house supply chain – our quality control team is part of every product decision. We meet the highest standards while franchise owners access quality, innovative products at lower costs.

●       Consistent delivery. As a franchise owner, you have access to more than 225 premium spice blends, including 45 loose-leaf teas. Our in-house supply chain ensures timely delivery, minimizes stocking needs, and reduces inventory holding costs. That means more money for your business.

Multiple Revenue Streams

Our business model is built on multiple revenue streams with complementary product lines. We carry sea salts, infused sugars, recipe kits, gourmet gifts, kitchen accessories, and uniquely scented soy candles. The hometown wholesale program is a business-building program where franchise owners provide private-label teas and spices to neighboring coffee shops, restaurants, other specialty retailers, and hotels.

We provide a host of unique experiences you can build with the tea bar, including hosting private parties and taking the tea bar to community events. You’ll love the flexibility in this business.

Through our in-depth franchise training , you have everything you need to build the business you’re looking for with The Spice & Tea Exchange. You also benefit from the support of your franchise network and our head office team as you continue to grow your business and capitalize on new opportunities. We’re with you all the way!

Learn About The Spice & Tea Exchange Franchise

Request our franchise information by completing our online form and let’s get a conversation going about how we can support your plans to be part of this exciting industry.

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Pros and cons of doing business in Moscow

Attracting foreign investors is important for Moscow, which wants to become a global financial center in near future. Source: Getty Images / Fotobank

In an effort to find more ways to attract foreign investors to Russia’s capital, Moscow authorities asked several current expat businessmen to give their assessment of the pros and cons of starting a business in the city.

Attracting foreign investors is particularly important for Moscow, which, according to government’s plans, wants to become a global financial center in the coming years, alongside London and New York.

Foreigners, who have successfully been doing business in Russia for several years, shared their experiences at a forum in the Moscow Government Mass Media Roadshow held in Moscow on December 4.

Young entrepreneurs as a spark for economic growth

“To open a business in Russia was not difficult, the most important thing was to find the right employees,” said Vincenzo Trani, a forum member and founder of an investment company, who moved from Italy to Moscow 12 years ago.

At the time, many friends and relatives were convinced that he was crazy, according to Trani. In their opinion, he was heading for the unknown, leaving a successful career with the world’s oldest bank, Monte dei Paschi di Siena.

“Other markets do not provide such profits as can be earned in Russia,” Trani said, explaining why he decided to start investing in Russia. “Here the yield is 7 percent to 8 percent in euros, while in Italy it is 3 percent to 3.5 percent, and in Switzerland it’s 1 percent to 1.5 percent.”

However, Trani, by his own admission, prefers to understate the expected rates of return when discussing investments with his customers. “Western investors fear high percentages,” he said. “If you say that the yield will be 5.4 percent, then, as a result, they will be very happy when they get 7 percent to 8 percent.”

Foreign entrepreneurs explain how to get into business in Russia

An important advantage of doing business in Russia is the attitude of officials towards foreigners, he said. “When they see foreigners, they behave more kindly. You will not find this anywhere else.”

American Teri Lindeberg, the founder of a recruitment company operating in the Russian market since 2000, had positive things to say about managing a business in Russia.

“I love being in Russia, I love the business environment, I love the people I know and I even like driving here,” Lindeberg said. 

“The talent you can hire here is super-strong,” she said, adding that her accountant, who was recruited in the early 2000s, was a prime example of the quality of hires in Russia. “When you’re starting a business in Russia, your chief accountant is extremely important.”

In general, to those who have decided to start a business in Russia, Lindeberg advises that if you’re starting something from scratch, “you really need to have a plan and interview a lot of people.”

Moscow looks to promote business-friendly image

Biggest myths surrounding Russia's start-up market

Big money in small businesses in Russia

The experience gained in Russia, formed the basis for Lindeberg’s book “Making Perfect.” The book contains quotes of Russian coworkers with whom Lindeberg conducted interviews in the post-crisis year – 2009, in order to understand what motivated them.

Unlike Lindeberg, who specializes in the recruitment of senior and middle managers, another member of the Moscow forum, Gregory Gorelik, the founder of an online store of interior luxury goods, said it takes some time to find “presentable and polite staff.”

In addition, Gorelik was confronted with the fact that 95 percent of Russian customers prefer to pay in cash, upon delivery of the goods, which slows down the rate of return on investment.

“Our investors have to invest more and more money,” Gorelik said. Nevertheless, his business is growing with more than one million customers, he said.

Despite the examples of successful companies founded by foreigners in Moscow, the mayor’s office acknowledges there is a problem of investor confidence.

Keys to doing business in Russia

“In the past year, a study carried out by the [city government] showed that among the top management of companies, which are not yet present in Moscow, about half are very cautious when considering investing. Two-thirds of the representatives of companies confirmed their readiness to restart their cooperation with Moscow,” said Georgy Chizhenkov, one of the organizers of the Media Forum.

According to another member of city hall, Andrey Chizhov, very soon, Moscow authorities plan to analyze the business environment and develop plans for new investment projects.

Moscow officials are looking at the modernization of the infrastructure, in particular engineering structures, as well as the development of transport networks, energy-saving technologies, and real estate investments as promising areas of cooperation with foreign investors.

All rights reserved by Rossiyskaya Gazeta.

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