It’s easy to plunge into entrepreneurship if you are an economics student or finance expert. There are several ways to enter the business field by creating a financial services business based on your financial skills, passion, and goals.
Finance startup ideas abound, but here are 7 unique financial services you can turn into a thriving business.
1. Crypto Tax Business
Many people have embraced cryptocurrencies as an investment and a means to make transacting more straightforward and safer. However, keeping up with the fast changes required to the tax code has become increasingly complex. As a result, many digital currency owners find it challenging to interpret and understand how it works with their investments.
Suppose you are a chartered accountant interested in cryptos. Understanding tax codes and digital currencies gives you the perfect background to start a crypto tax business where you can advise people on filing their taxes based on their crypto investments.
One example of an excellent crypto tax business is the tax software called BearTax. The platform helps traders and accountants in the U.S. Australia, India, and Canada consolidate trades and calculate taxes effortlessly.
2. Business Broker
Business brokerages are vital in matching suitable business buyers with established enterprise sellers. However, this type of business requires expertise in valuing the business and negotiation skills to assist with brokering deals.
It would help if you also had a strong network of connections in the community and industry you serve. As a business broker, you can offer other services like assisting buyers with business and marketing plans, transferring licenses, etc.
Your role as a business broker is to mediate and manage the sale and purchase of companies. Confidentiality is imperative in this business since sales details cannot become public until the deal is concluded and announced. You earn an income on the commissions of deals you have brokered, typically between 10 and 15%.
3. Financial Advisor Business
According to statistics, the average American’s debt is about $60,000, including mortgages, student loans, vehicle loans, and credit cards. When someone holds debt in various loans, it can become difficult to pay off, primarily when owed to credit cards. The reason – credit cards have the highest interest rates. As a result, people in debt often seek help from a financial adviser or credit counselor to help them consolidate the debt, making it easier to pay off.
However, it’s not only individuals who require financial advice. Many businesses also rely on financial advisers to help them plan their finances and manage their debts.
A financial advisor business is excellent if you want to help companies or individuals organize and improve their finances. You don’t need a special license to work as a budget consultant, but you need a Bachelor’s degree in statistics, economics, finance, or accounting. Some experience will also serve you well.
Preparing financial proposals for people requires gathering information from them before analyzing it to see where they can save money, minimize their debt, make meaningful investments, etc.
You can either start an online guidance service or meet your clients personally to provide financial advice. In addition, as a financial adviser or budget consultant, you can branch out to offer several other types of financial services. These include debt reduction plans, estate planning, credit repair services, and budgeting.
4. Credit Card Comparison Business
A credit card comparison business is ideal if you want to start an online business that provides financial services. You need to gather information from all the credit card companies so that you can create a comparison of the various features of the different credit cards.
The information on your website will include their interest rates, annual fees, rewards programs, pros, cons, etc. You must present the information on your website for consumers wanting to compare the information as they decide which credit card suits their needs most. Therefore, a user-friendly interface is essential, making it easier for your users to compare.
It’s crucial that once you get your credit card comparison website up and running, you ensure to maintain it by keeping the information up-to-date and accurate. You must also partner with credit card companies to offer your users valuable resources, expertise, and exclusive deals. These partnerships will improve the quality of the services you provide.
Once you have created your credit card comparison business, you must promote it accordingly to ensure you create a good user base and a solid income.
5. Online Financial Course
Online courses have become very popular for people wanting to organize their finances. Monetize your financial knowledge by creating an online course with informational and engaging financial knowledge content that people will pay to watch. The advantages of taking your course online are that you can reach more people.
You can concentrate on several areas, including how to save money, create a budget, handle money, investment tips, and tax tips.
6. Stock Day Trade Business
As a stock day trader, you buy and sell stocks within the same day, intending to make short-term profits. You can run your business from anywhere, including from home, if you have the software and access to financial data to analyze and perform trades.
Several factors can influence stock prices, and you need the knowledge to become a successful stock day trader. Besides your expertise in the various economic indicators and market trends, you must know how to manage risk effectively and have a disciplined approach to buying and selling stocks.
With stock day trading, you can offer your services to other people wanting to try their hand at stock trading, playing a mentorship role.
7. Accounting Software Business
Every business needs an accounting system to keep track of its income, payments, assets, and liabilities. Several industries have particular accounting needs, which conventional accounting software can’t always provide.
Therefore, if you have accounting experience, use your knowledge to create an advanced accounting system that will meet the needs of several niches.
One example is TenantCloud, accounting software that makes it easier for rental property owners to manage their portfolios.
These are a small sampling of financial services you can provide when considering starting your own business.
What are the requirements for starting a financial services business?
The exact requirements vary depending on the industry, but you will need a certification or license from a government agency. You should also know accounting principles, tax regulations, banking laws, and other relevant finance topics. You must also have excellent communication skills to explain your findings to clients effectively.
What are the challenges of starting a financial services business?
The biggest challenge for starting a financial services business is building a solid client base. You must develop an online presence and ensure that you keep up with current trends in the industry. Additionally, it can be difficult to offer value to your clients by providing personalized advice suited to their individual needs so they will be satisfied with your services. Lastly, staying current with industry trends and keeping clients informed about their options requires dedication.
What tips do you have for succeeding in financial services?
Establishing yourself as a successful financial consultant requires hard work and dedication. You should create an online presence through platforms such as websites or social media, offer incentives such as discounts or free consultations, and provide value to your clients by giving them personalized advice suited to their needs. Lastly, you should stay informed about the latest news and industry trends and keep your clients informed so they are satisfied with your services.
How can I make my financial services business successful?
Establish an online presence through a website or social media platforms and keep up with current trends in the industry. Offer incentives such as discounts, free consultations, or waiving specific fees to attract more customers. Most importantly, provide value to your clients by giving them personalized advice suited to their needs so they will be satisfied with your services. Doing this will create a positive reputation for yourself and build a solid client base over time.