Best Business Ideas for Finance Professionals
Finance professionals have a unique set of skills that can be quite useful when starting a business. With knowledge of money management, financial analysis, investments, and more, those working in finance already have a solid foundation to build upon. However, turning unique expertise into a functioning business can still be a challenge. This article will explore some of the best business ideas specifically suited for finance professionals.
Whether you currently work in finance or have an educational background in the field, the business concepts covered here will align well with your existing skillset. The ideas range from financial consulting services to investment-related businesses to accounting practices and more. With the right business model, a finance professional can leverage their knowledge to start a company that helps other people and organizations better manage their finances.
Financial Consulting
One of the most straightforward business ideas for finance pros is to start a financial consulting firm. As a consultant, you can provide advice to individuals and businesses on a wide range of money-related matters, including:
• Investments
• Retirement planning
• Tax optimization
• Risk management
• Raising capital
• Mergers and acquisitions
• And more
In 2020 alone, the global financial consulting market was worth more than $160 billion. And with increasingly complex financial markets and products available to consumers, demand for financial consultants continues to rise.
As a finance professional, you likely already have expertise in one or more niches like retirement planning or corporate finance. Developing a specialty and targeting specific customer groups can help your consulting firm stand out. You may even opt for an online financial consulting business that serves clients virtually.
Here are a few examples of specialized financial consulting services to consider:
• Retirement planning for couples
• Small business investment strategy
• Nonprofit fundraising consultation
• Personal finance education for millennials
In addition to helping individual clients, a financial consultant can also assist bigger companies by providing services like these:
• Forensic accounting
• IPO readiness consultation
• Risk analytics and reporting
• Merger & acquisition target analysis
So whether you want to work one-on-one with consumers or consult for large corporations, financial consulting can be an ideal business for finance professionals. The barrier to entry is relatively low since you likely already have the necessary skills and credentials like a degree, license, or certification.
Investment Brokerage
For finance pros interested in investments and markets, starting an investment brokerage firm is another solid business idea.
Investment brokers help clients make decisions and execute trades in assets like these:
• Stocks
• Bonds
• Mutual funds
• Options
• Commodities like precious metals
Some brokers even facilitate investments not traded on public exchanges, including private equity, hedge funds, startup investing, and real estate trusts.
As the owner of an investment brokerage firm, you must secure the required licenses to advise clients on securities trades or make transactions on their behalf. These include Series 6, 7, 63, 65, or 66 licenses, along with registration as a broker-dealer firm with organizations like FINRA.
While the licensure process can be extensive, finance professionals who already manage assets or investments may meet many of the qualification requirements already. And owning an investment brokerage provides major income potential from assets under management fees, trade commissions, and performance-based incentives.
Here are some types of specialized investment brokerages to consider:
• Robo-advisor for automated portfolio management
• Broker-dealer firm focused on specific securities like options or IPOs
• Crowdfunding portal to finance startups and small businesses
• Angel investor matching service for accredited investors
• Peer-to-peer lending marketplace
So for finance pros interested in investments, the world is your oyster in terms of viable business models around brokerage services. With trillions of dollars exchanging hands in global capital markets each year, the earning potential is monumental as well.
Accounting Practice
From invoicing to expense management, tax preparation, and beyond, every business needs accounting help. For those with accounting experience or credentials, a public accounting firm can make for a stable, profitable business venture.
As the owner of an accounting practice, you would offer services like:
• Financial statement preparation
• Balance sheet analysis
• Account reconciliation
• Payroll administration
• Tax planning and filing
• And more
While you can specialize in a niche like small business accounting or corporate finance, many successful firms offer a mix of accounting services for diverse customer segments. This helps limit risk when working with both consumers and larger B2B clients.
According to the Bureau of Labor Statistics, around 43% of accountants are self-employed. And the job growth outlook for CPAs and tax preparers is quite strong over the next decade. So by starting your own accounting firm, you can take advantage of this expanding market while leveraging your existing finance skills.
In addition to traditional accounting services, technology also enables new practice models like these:
• Online tax filing for 1099 contract workers
• Outsourced CFO advisory for startups
• Forensic accounting for legal disputes
• Blockchain analysis for cryptocurrency traders
Cloud accounting platforms like QuickBooks Online also make it easier than ever to launch a tech-enabled practice. So don’t limit yourself to just brick-and-mortar firms relying on in-person meetings.
Financial Services Franchise
For finance professionals interested in business ownership without building a company completely from scratch, various financial services franchises enable semi-passive entrepreneurship. According to FranchiseHelp.com, some top options include:
1. H&R Block: With over 12,000 locations, H&R Block is one of the largest tax preparation franchises and generates over $3 billion in sales annually. As a franchise owner, you can leverage H&R Block’s tools and resources to grow a local tax prep office.
2. Jackson Hewitt: Similar to H&R Block, Jackson Hewitt also specializes in tax filing services and has around 6,000 franchise units across the U.S. It supplies franchisees with tax software, office space layout templates, and ongoing corporate support.
3. Liberty Tax Services: With a more budget-friendly franchise fee structure than H&R Block and Jackson Hewitt, Liberty Tax helps franchise owners build out seasonal or year-round tax prep offices with input on location selection, branding, and marketing.
So if you want to capitalize on your finance experience but also value the structure and stability of a proven franchise model, a tax preparation concept like these could provide the ideal hybrid between entrepreneurship and support.
Other Money-Related Franchises
Beyond tax prep specifically, finance pros may also succeed with franchises in adjacent money-related fields like:
• Payroll processing
• Bookkeeping
• Financial education
• Insurance
• Real estate
• And more
For instance, Padgett Business Services provides resources for launching a local bookkeeping, accounting, and tax services franchise. First Command educates military families on their finances and also offers a franchise ownership opportunity. And franchise models like The Entrepreneur’s Source help prospective business owners secure funding through lending relationships and guidance.
So while the businesses may not represent pure “finance” plays, they incorporate elements of money management along with the benefits of franchising.
FAQ
Here are some common questions related to launching finance-focused businesses:
Q. What are the most profitable business ideas for finance professionals?
Ans: Based solely on revenue potential, some of the most profitable business models for finance pros include investment brokerages and financial consulting firms working with high net worth individuals or institutional clients. Tax practices and accounting firms also represent stable income streams.
Q. What business ideas are best for entry-level finance professionals?
Ans: Entry-level professionals may fair best with more niche online businesses in areas like personal finance blogging, online financial education courses, robo-advisors, or freelance financial modeling/analysis services.
Q. Do I need to get additional licenses or certifications before starting a finance-related business?
Ans: Often times yes, especially if you plan to directly handle client investments or brokerage accounts. Most money-related businesses have regulatory requirements around licensure from organizations like SEC or FINRA. Specific licenses depend on your business model and services offered.
Q. What franchise opportunities are best for finance professionals?
Ans: Some top financial services franchise options include H&R Block, Jackson Hewitt, and Liberty Tax Services for tax prep. First Command, Padgett Business Services, and The Entrepreneur’s Source also incorporate finance elements. Always conduct thorough due diligence before investing in any franchise.
Q. How much money do I need to launch a financial consulting firm or services business?
Ans: Starting costs vary widely based on factors like required office space, staffing, licensure, technology, marketing, etc. However, most solo consulting practices can launch for less than $10,000 in many cases. Expect higher startup costs if pursuing investment brokerage or other heavily regulated models.
Conclusion
Finance professionals have a diverse array of entrepreneurial possibilities based on their financial skill sets. Turning your experience into a business does require thorough planning around legal compliance, target customer selection, offerings, and more. But by matching your credentials and passions to needs in the market, the potential rewards are plenty.
The business models covered in this article, from financial consulting services to accounting firms and investment brokerages, demonstrate viable options to leverage your background in finance. Just make sure to carefully assess licensing requirements, costs, risks, and income strategies depending on your chosen entrepreneurial path.
