Can you start an investment firm from home? Yes, it’s very possible, and some investment managers run home operations. However, there are some very well-defined caveats to this. Of course, you will need some investing experience and knowledge, and marketing never hurts.
Licences, Qualifications and Compliance
There are a few licences and qualifications you will need to start an investment management company. These vary from country to country, and there are also international certifications. Some qualifications include being a Certified International Investment Analyst for international operations. And you will need to adhere to Global Investment Performance Standards, or GIPS performance for short before prospective clients begin to trust that you know what you are doing.
Using Your Experience
Experience is vital for starting an investment firm. Attending courses either online or physically can help you gain the valuable experience you will need to begin your new venture. If you can’t afford to attend these, as some are very expensive, it is highly recommended that you learn using online tools and platforms such as Betterment, Ally Invest and eToro. Some of these offer virtual trading with real stocks, so you can gain valuable insights into how the business works.
Pricing when You Start an Investment Firm
Investment can be a great self employment experience. But you can’t work for free when you begin your venture. However, investment managers typically aren’t paid a flat salary and work on commissions. So, raising capital is vital when starting out. It is never a good idea to use your own money. To raise client capital, you can network, reinvest or borrow from banks. You can take your cut, which is around 1%, so if you return £100,000 a week, you pay yourself £1,000.
Market the Business Well
Like any new business, marketing is key. Yet marketing is a challenging thing these days because there are many talented marketers using online channels. Online or digital marketing is a new frontier because most people use the web to find services these days. SEO, PPC and inbound lead generation are all specialist methods of online marketing. You can take the time to learn these, but it is best to hire a reputable marketing company to implement them for you.
Choose an Investment Niche
Like developing a blog, you can beat some of the competition by focusing on an investment niche. There are many different types of investing, and you can attract clients based on the niche you target. For example, you can appeal to the Millennial market by focusing on startup investment. Or generate clients from Gen-Z by offering investment services into crypto and NFTs. Offering a secure future with long-term investments will also appeal to a young crowd.
Summary
You will first need the right certifications to start an investment firm. Raising capital and taking your cut are also vital considerations. And you can attract clients by focusing on a niche.