For those looking to build an asset management business, there’s an awful lot to think about. The field is a complex one, and the knowledge, skills and financial backing you’ll need are not always easy to come by. That doesn’t mean that you’re doomed to failure, however; with the right business plan in place, and a firm understanding of how to get started, it’s fully possible to build a successful enterprise.
But where do you start? Read on to find out more…
Step One: Make Sure that You Meet Regulatory Compliance Standards
Given the potential for abuse, it’s no surprise that asset and investment management firms must meet a number of regulatory controls. The exact requirements that you’ll need to fulfil are dependent on the country that you live in. It’s best to seek professional advice to guide you through them and make sure that you tick all of the necessary boxes – some of them can be quite complex. You’ll find that there’s a wealth of information and useful contacts available online to get you started and put you in touch with the right people.
Step Two: Secure Investors for Your Enterprise
Asset management firms are not a cheap endeavour to embark upon. Your start up costs will be high, and in addition to typical start up expenses, you’ll also need a substantial amount for seed capital. This figure could be anything from tens of thousands of pounds to millions, depending on the scope of your envisaged business.
Unless you already possess a vast personal fortune, this means that you’re going to require investors or wealthy partners. To do so, you will be required to jump through hoops, so make sure that you have a solid business plan, detailed budget forecasts, a proven track record and a realistic exit strategy in order to attract the investors you need.
Step Three: Surround Yourself with Experience
Fully-fledged companies have the luxury of hiring brilliant graduates on a low wage and training them up themselves. As a start up, you’re going to need to pay your staff more in order to attract the necessary experience. The best will come with their own contacts, and their success, capability and skill set will help to put your business on the map. If you can surround yourself with the right staff, you can go in hard and fast and make a killing from the start. Your sales team will be particularly important, as you’re going to need their talent to draw in the clients who’ll fund your enterprise.
Once you have these three key assets in place, you’re ready to hit the ground running. What are you waiting for?