Making the leap from a full-time employed financial planner to owning your own financial planning firm can be a risky move. It means letting go of stability, constant leads, admin support/para planning and generally stepping out of your comfort zone. So why are more financial advice professionals choosing to be self-employed?
For one thing, self-employment allows for more flexibility and the opportunity to align your career goals more closely with your lifestyle goals – which essentially means that you are in control of your own asset. From building your brand to deciding on the best business model for you, many enjoy the adventure of finding their niche.
In addition to a more flexible lifestyle, figures have shown that self-employed advisers are also better earners.¹ This, of course, comes with the initial year (or years) of sacrifice and instability.
So, for those looking at self-employment, where do you begin?
Taking care of legalities seems to be the best place to begin with. Some of the initial concerns with employees that need to be addressed include:
- Employment Contracts
- Confidentiality
- Intellectual property rights
- Conflict of interests
- Termination notices
Before beginning the self-employment journey, you should ensure you’ve gone through the above list to so there are no costly litigation issues involved with leaving an employer.
Aside from legal considerations, what else should you consider?
Ryan Goodfellow, National Growth Manager at Centrepoint Alliance, recommends the following checklist before handing in your resignation letter:
- Check your contract for a non-compete clause
- Collect certified copies of all relevant qualifications
- Get a compliance report from the last two years
- Compile your CPD history
- Get a police and bankruptcy check
- Ensure you have TPB registration
- Organise two business referees
If you are considering making the transition to your own financial advice firm, you can watch Ryan Goodfellow's recent webinar Planner to Principal - your guide to business ownership by clicking on the button below.
¹ Radar Results. (2018). Radar’s six monthly price guide. [email].
