Wealth Management Business Plan
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We have helped over 1,000 entrepreneurs and business owners create business plans and many have used them to start or grow their Wealth Management companies.
Below is a template to help you create each section of your Wealth Management business plan.
Executive Summary
Business Overview
Ellis Wealth Management is a new wealth management firm located in Seattle, Washington. Our mission is to help the residents of Seattle create a financially sound future and achieve all their financial goals. We plan to do this by offering a wide range of wealth management services, including financial planning, estate planning, and retirement planning. We are a client-focused firm that is dedicated to helping our clients make all their dreams come true.
Ellis Wealth Management’s most valuable asset is the expertise and experience of its founder, Jared Ellis. Jared has been a certified financial advisor for the past 20 years. Throughout his career, he has developed a loyal client base, and many clients have stated that they will switch to Ellis Wealth Management once the company is established and running. Jared’s combination of skills, financial knowledge, and loyal following will ensure Ellis Wealth Management’s success.
Product Offering
Ellis Wealth Management will provide wealth management services to the residents of Seattle. These services will include financial planning, asset management, estate planning, and retirement planning. Ellis Wealth Management will prioritize client relationships and will hire a full-time assistant who will be dedicated to answering client questions and drafting newsletters and other communications.
The founder, Jared Ellis, will also focus on answering his clientele’s needs. In addition to newsletters and email updates, Jared Ellis will hold seminars on financial strategies and investment presentations for his clients.
Customer Focus
Ellis Wealth Management will serve the affluent and middle-class residents of Seattle and the surrounding areas. The area has a large demographic of residents with disposable income who are interested in managing their wealth and finances better. They have diverse needs, from needing to better manage their assets to planning their wills and estates. We will provide a wide range of wealth management services to serve this diverse demographic.
Management Team
Ellis Wealth Management’s most valuable asset is the expertise and experience of its founder, Jared Ellis. Jared has been a certified financial advisor for the past 20 years. Throughout his career, he has developed a loyal client base, and many clients have stated that they will switch to Ellis Wealth Management once the company is established and running. Jared’s combination of skills, financial knowledge, and loyal following will ensure Ellis Wealth Management’s success.
Success Factors
Ellis Wealth Management will be able to achieve success by offering the following competitive advantages:
- Location: Ellis Wealth Management’s location is near the center of town, in the financial district of the city. It’s visible from the street with many working professionals walking to and from work on a daily basis; giving passersby a direct look at our firm, most of which are part of our target market.
- Client-oriented service: Ellis Wealth Management will have a full-time assistant to primarily keep in contact with clients and answer their everyday questions. Jared Ellis realizes the importance of accessibility to his clients, and will further keep in touch with his clients through monthly presentations, seminars, and updates per email and newsletters.
- Management: Jared has been extremely successful working in the financial services sector and will be able to use his previous experience to grant his clients detailed insight into the financial world. His unique qualifications will serve customers in a much more sophisticated manner than Ellis Wealth Management’s competitors.
- Relationships: Having lived in the community for 25 years, Jared Ellis knows many of the local leaders, newspapers and other influences. Furthermore, he will be able to draw from his ties to the community in order to build up a heavy asset base in a short amount of time.
Download the Wealth Management business plan template (including a customizable financial model) to your computer here <–
Financial Highlights
Ellis Wealth Management is currently seeking $350,000 to launch. Specifically, these funds will be used as follows:
- Office design/build: $50,000
- Office equipment, supplies, and materials: $50,000
- Three months of overhead expenses (payroll, rent, utilities): $150,000
- Marketing costs: $50,000
- Working capital: $50,000
The following graph below outlines the pro forma financial projections for Ellis Wealth Management.
Company Overview
Who is Ellis Wealth Management?
Ellis Wealth Management is a new wealth management firm located in Seattle, Washington. Our mission is to help the residents of Seattle create a financially sound future and achieve all their financial goals. We plan to do this by offering a wide range of wealth management services, including financial planning, estate planning, and retirement planning. We are a client-focused firm that is dedicated to helping our clients make all their dreams come true.
Ellis Wealth Management’s most valuable asset is the expertise and experience of its founder, Jared Ellis. Jared has been a certified financial advisor for the past 20 years. Throughout his career, he has developed a loyal client base, and many clients have stated that they will switch to Ellis Wealth Management once the company is established and running. Jared’s combination of skills, financial knowledge, and loyal following will ensure Ellis Wealth Management’s success.
Ellis Wealth Management’s History
Upon surveying the local customer base and finding a potential office, Jared Ellis incorporated Ellis Wealth Management as an S-Corporation in January 2023.
The business is currently being run out of Jared’s home office, but once the lease on Ellis Wealth Management’s office location is finalized, all operations will be run from there.
Since incorporation, the Company has achieved the following milestones:
- Found an office space and signed Letter of Intent to lease it
- Developed the company’s name, logo, and website
- Hired an interior designer for the decor and furniture layout
- Determined equipment and fixture requirements
- Began recruiting key employees
Ellis Wealth Management’s Services
Ellis Wealth Management will provide wealth management services to the residents of Seattle. These services will include financial planning, asset management, estate planning, and retirement planning. Ellis Wealth Management will prioritize client relationships and will hire a full-time assistant who will be dedicated to answering client questions and drafting newsletters and other communications.
The founder, Jared Ellis, will also focus on answering his clientele’s needs. In addition to newsletters and email updates, Jared Ellis will hold seminars on financial strategies and investment presentations for his clients.
Industry Analysis
The wealth management industry is strongly correlated with the strength of the economy as a whole. When the wealth management industry (or the finance industry in general) is down, then that is a sign that the economy is struggling. The economy suffered greatly during the COVID pandemic but is now bouncing back to being stronger than ever.
According to Mordor Intelligence, the wealth management industry was valued at USD 3.67 billion in 2021 and is projected to grow at a CAGR of 14.67% from now until 2027. This is substantial growth and shows the economy is back in full swing. Wealth management firms both small and large can expect significant growth and an increase in profits over the next several years.
In addition to the economy bouncing back, there are a few other factors that affect this projected growth. First, more people have disposable income and are looking for wise ways to save or use that extra money. Furthermore, financial education is becoming far more popular than it was years ago. This means that more people are learning the importance of wealth management and are eager for services that will help them save and grow their money. The widespread interest in financial education has created a strong demand for wealth management services.
When considering all these factors, the wealth management industry is projected to boom in the next few years. This is good news for firms like Ellis Wealth Management and shows that our firm has a great chance to succeed.
Download the Wealth Management business plan template (including a customizable financial model) to your computer here <–
Customer Analysis
Demographic Profile of Target Market
Ellis Wealth Management will serve the residents of Seattle, Washington, and the immediate surrounding areas. The area is populated by middle and upper-class residents who have diverse wealth management needs. They also have the disposable income to hire a wealth management firm to help manage their finances.
The precise demographics of Seattle are as follows:
| Total | Percent | |
|---|---|---|
| Â Â Â Â Total population | 1,680,988 | 100% |
| Â Â Â Â Â Â Â Â Male | 838,675 | 49.9% |
| Â Â Â Â Â Â Â Â Female | 842,313 | 50.1% |
| Â Â Â Â Â Â Â Â 20 to 24 years | 114,872 | 6.8% |
| Â Â Â Â Â Â Â Â 25 to 34 years | 273,588 | 16.3% |
| Â Â Â Â Â Â Â Â 35 to 44 years | 235,946 | 14.0% |
| Â Â Â Â Â Â Â Â 45 to 54 years | 210,256 | 12.5% |
| Â Â Â Â Â Â Â Â 55 to 59 years | 105,057 | 6.2% |
| Â Â Â Â Â Â Â Â 60 to 64 years | 87,484 | 5.2% |
| Â Â Â Â Â Â Â Â 65 to 74 years | 116,878 | 7.0% |
| Â Â Â Â Â Â Â Â 75 to 84 years | 52,524 | 3.1% |
Customer Segmentation
Ellis Wealth Management will primarily target the following customer profiles:
- Higher-income individuals
- Individuals 55+
- Middle-aged parents with children
Competitive Analysis
Direct and Indirect Competitors
Ellis Wealth Management will face competition from other companies with similar business profiles. A description of each competitor company is below.
Merrill Lynch
Merrill Lynch is a longstanding financial firm that was acquired by Bank of America in 2009. The firm has a client-oriented focus that prioritizes the individual needs of each client. The firm offers a long list of wealth management services, including banking services and retirement planning. When clients choose Merrill Lynch, they are offered a wealth management strategy that is tailored to them and helps support their dreams and financial goals.
Edward Jones
Edward Jones is a global wealth management firm that assists over seven million investors worldwide. It is a privately owned company, which allows its advisors to focus on client relationships rather than shareholder returns. They offer a long list of financial advising and wealth management services, all of which are based on respect, attention, and service.
Morgan Stanley
Founded in 1935, Morgan Stanley started as a small Wall Street partnership but has now grown to be a global firm with 80,000 employees. Morgan Stanley is committed to its clients and provides them with a wide range of financial planning and wealth management services. Everything the company does is backed by its five core values: Do the right thing, put clients first, lead with exceptional ideas, commit to diversity and inclusion, and give back. For nearly a century, Morgan Stanley has committed to these values, which has earned them a loyal following and tremendous success.
Download the Wealth Management business plan template (including a customizable financial model) to your computer here <–
Competitive Advantage
Ellis Wealth Management will be able to offer the following advantages over the competition:
- Location: Ellis Wealth Management’s location is near the center of town, in the financial district of the city. It’s visible from the street with many working professionals walking to and from work on a daily basis; giving passersby a direct look at our firm, most of which are part of our target market.
- Client-oriented service: Ellis Wealth Management will have a full-time assistant to primarily keep in contact with clients and answer their everyday questions. Jared Ellis realizes the importance of accessibility to his clients, and will further keep in touch with his clients through monthly presentations, seminars, and updates per email and newsletters.
- Management: Jared has been extremely successful working in the financial services sector and will be able to use his previous experience to grant his clients detailed insight into the financial world. His unique qualifications will serve customers in a much more sophisticated manner than Ellis Wealth Management’s competitors.
- Relationships: Having lived in the community for 25 years, Jared Ellis knows many of the local leaders, newspapers and other influences. Furthermore, he will be able to draw from his ties to the community in order to build up a heavy asset base in a short amount of time.
Marketing Plan
Brand & Value Proposition
Ellis Wealth Management will offer a unique value proposition to its clientele:
- Client-focused financial services, where the Company’s interests are aligned with the customer
- Service built on long-term relationships
- Big-firm expertise in a small-firm environment
Promotions Strategy
The promotions strategy for Ellis Wealth Management is as follows:
Targeted Cold Calls
Ellis Wealth Management will initially invest significant time and energy into contacting potential clients via telephone. In order to improve the effectiveness of this phase of the marketing strategy, a highly-focused call list will be used, targeting individuals in areas and occupations that are most likely to need wealth management services. As this is a very time-consuming process, it will primarily be used during the startup phase to build an initial client base.
Referrals
Ellis Wealth Management understands that the best promotion comes from satisfied customers. The Company will encourage its clients to refer their friends and family by providing economic or financial incentives for every new client produced. This strategy will increase in effectiveness after the business has already been established.
Social Media
Ellis Wealth Management will invest heavily in a social media advertising campaign. The company will create social media accounts and invest in ads on all social media platforms. It will use targeted marketing to appeal to the target demographics.
Website/SEO
Ellis Wealth Management will invest heavily in developing a professional website that displays all of the company’s services. It will also invest heavily in SEO so that the firm’s website will appear at the top of search engine results.
Pricing
The fees and hourly pricing of Ellis Wealth Management will be moderate and competitive so clients feel they are receiving great value when utilizing our wealth management services.
Operations Plan
The following will be the operations plan for Ellis Wealth Management.
Operation Functions:
- Jared Ellis will be the Owner of Ellis Wealth Management. In addition to providing wealth management services, he will also manage the general operations and executive aspects of the business.
- Jared Ellis is joined by a full-time administrative assistant, Jacob Hubert, who will take charge of the administrative tasks for the company. He will also be available to answer client questions and will be the primary employee in charge of client communications.
- As the company builds its client base, Jared Ellis will hire more financial advisors to provide wealth management services, attract more clients, and grow our business further.
Download the Wealth Management business plan template (including a customizable financial model) to your computer here <–
Milestones:
Ellis Wealth Management will have the following milestones completed in the next six months.
- 2/2023 Finalize lease agreement
- 3/2023 Design and build out Ellis Wealth Management
- 4/2023 Hire and train initial staff
- 5/2023 Kickoff of promotional campaign
- 6/2023 Launch Ellis Wealth Management
- 7/2023 Reach break-even
Management Team
Ellis Wealth Management’s most valuable asset is the expertise and experience of its founder, Jared Ellis. Jared has been a certified financial advisor for the past 20 years. Throughout his career, he has developed a loyal client base, and many clients have stated that they will switch to Ellis Wealth Management once the company is established and running. Jared’s combination of skills, financial knowledge, and loyal following will ensure Ellis Wealth Management’s success.
Financial Plan
Key Revenue & Costs
Ellis Wealth Management’s revenues will primarily come from charging an hourly rate and fees for the wealth management services we provide.
The notable cost drivers for the company will include labor expenses, overhead, and marketing expenses.
Funding Requirements and Use of Funds
Ellis Wealth Management is currently seeking $350,000 to launch. Specifically, these funds will be used as follows:
- Office design/build: $50,000
- Office equipment, supplies, and materials: $50,000
- Three months of overhead expenses (payroll, rent, utilities): $150,000
- Marketing costs: $50,000
- Working capital: $50,000
Download the Wealth Management business plan template (including a customizable financial model) to your computer here <–
Key Assumptions
The following outlines the key assumptions required in order to achieve the revenue and cost numbers in the financials and pay off the startup business loan.
- Number of clients:
- Year 1: 25
- Year 2: 50
- Year 3: 75
- Year 4: 100
- Year 5: 125
- Hourly Fee: $250
- Fee of Assets: 50%
- Annual Rent: $100,000
Financial Projections
Income Statement
| FY 1 | FY 2 | FY 3 | FY 4 | FY 5 | ||
|---|---|---|---|---|---|---|
| Revenues | ||||||
| Total Revenues | $360,000 | $793,728 | $875,006 | $964,606 | $1,063,382 | |
| Expenses & Costs | ||||||
| Cost of goods sold | $64,800 | $142,871 | $157,501 | $173,629 | $191,409 | |
| Lease | $50,000 | $51,250 | $52,531 | $53,845 | $55,191 | |
| Marketing | $10,000 | $8,000 | $8,000 | $8,000 | $8,000 | |
| Salaries | $157,015 | $214,030 | $235,968 | $247,766 | $260,155 | |
| Initial expenditure | $10,000 | $0 | $0 | $0 | $0 | |
| Total Expenses & Costs | $291,815 | $416,151 | $454,000 | $483,240 | $514,754 | |
| EBITDA | $68,185 | $377,577 | $421,005 | $481,366 | $548,628 | |
| Depreciation | $27,160 | $27,160 | $27,160 | $27,160 | $27,160 | |
| EBIT | $41,025 | $350,417 | $393,845 | $454,206 | $521,468 | |
| Interest | $23,462 | $20,529 | $17,596 | $14,664 | $11,731 | |
| PRETAX INCOME | $17,563 | $329,888 | $376,249 | $439,543 | $509,737 | |
| Net Operating Loss | $0 | $0 | $0 | $0 | $0 | |
| Use of Net Operating Loss | $0 | $0 | $0 | $0 | $0 | |
| Taxable Income | $17,563 | $329,888 | $376,249 | $439,543 | $509,737 | |
| Income Tax Expense | $6,147 | $115,461 | $131,687 | $153,840 | $178,408 | |
| NET INCOME | $11,416 | $214,427 | $244,562 | $285,703 | $331,329 |
Balance Sheet
| FY 1 | FY 2 | FY 3 | FY 4 | FY 5 | ||
|---|---|---|---|---|---|---|
| ASSETS | ||||||
| Cash | $154,257 | $348,760 | $573,195 | $838,550 | $1,149,286 | |
| Accounts receivable | $0 | $0 | $0 | $0 | $0 | |
| Inventory | $30,000 | $33,072 | $36,459 | $40,192 | $44,308 | |
| Total Current Assets | $184,257 | $381,832 | $609,654 | $878,742 | $1,193,594 | |
| Fixed assets | $180,950 | $180,950 | $180,950 | $180,950 | $180,950 | |
| Depreciation | $27,160 | $54,320 | $81,480 | $108,640 | $135,800 | |
| Net fixed assets | $153,790 | $126,630 | $99,470 | $72,310 | $45,150 | |
| TOTAL ASSETS | $338,047 | $508,462 | $709,124 | $951,052 | $1,238,744 | |
| LIABILITIES & EQUITY | ||||||
| Debt | $315,831 | $270,713 | $225,594 | $180,475 | $135,356 | |
| Accounts payable | $10,800 | $11,906 | $13,125 | $14,469 | $15,951 | |
| Total Liability | $326,631 | $282,618 | $238,719 | $194,944 | $151,307 | |
| Share Capital | $0 | $0 | $0 | $0 | $0 | |
| Retained earnings | $11,416 | $225,843 | $470,405 | $756,108 | $1,087,437 | |
| Total Equity | $11,416 | $225,843 | $470,405 | $756,108 | $1,087,437 | |
| TOTAL LIABILITIES & EQUITY | $338,047 | $508,462 | $709,124 | $951,052 | $1,238,744 |
Cash Flow Statement
| FY 1 | FY 2 | FY 3 | FY 4 | FY 5 | ||
|---|---|---|---|---|---|---|
| CASH FLOW FROM OPERATIONS | ||||||
| Net Income (Loss) | $11,416 | $214,427 | $244,562 | $285,703 | $331,329 | |
| Change in working capital | ($19,200) | ($1,966) | ($2,167) | ($2,389) | ($2,634) | |
| Depreciation | $27,160 | $27,160 | $27,160 | $27,160 | $27,160 | |
| Net Cash Flow from Operations | $19,376 | $239,621 | $269,554 | $310,473 | $355,855 | |
| CASH FLOW FROM INVESTMENTS | ||||||
| Investment | ($180,950) | $0 | $0 | $0 | $0 | |
| Net Cash Flow from Investments | ($180,950) | $0 | $0 | $0 | $0 | |
| CASH FLOW FROM FINANCING | ||||||
| Cash from equity | $0 | $0 | $0 | $0 | $0 | |
| Cash from debt | $315,831 | ($45,119) | ($45,119) | ($45,119) | ($45,119) | |
| Net Cash Flow from Financing | $315,831 | ($45,119) | ($45,119) | ($45,119) | ($45,119) | |
| Net Cash Flow | $154,257 | $194,502 | $224,436 | $265,355 | $310,736 | |
| Cash at Beginning of Period | $0 | $154,257 | $348,760 | $573,195 | $838,550 | |
| Cash at End of Period | $154,257 | $348,760 | $573,195 | $838,550 | $1,149,286 |
Wealth Management Business Plan FAQs
What Is a Wealth Management Business Plan?
What Is a Wealth Management Business Plan?
A wealth management business plan is a plan to start and/or grow your wealth management business. Among other things, it outlines your business concept, identifies your target customers, presents your marketing plan and details your financial projections.
What are the Main Types of Wealth Management Businesses?
There are a number of different kinds of wealth management businesses, some examples include: Personal Financial Planning and Advice, Asset Management and Allocation, Estate Planning, and Tax Accounting.
How Do You Get Funding for Your Wealth Management Business Plan?
Wealth Management businesses are often funded through small business loans. Personal savings, credit card financing and angel investors are also popular forms of funding.
What are the Steps To Start a Wealth Management Business?
Starting a wealth management business can be an exciting endeavor. Having a clear roadmap of the steps to start a business will help you stay focused on your goals and get started faster.
1. Develop A Wealth Management Business Plan - The first step in starting a business is to create a detailed wealth management business plan that outlines all aspects of the venture. This should include potential market size and target customers, the services or products you will offer, pricing strategies and a detailed financial forecast. Â
2. Choose Your Legal Structure - It's important to select an appropriate legal entity for your wealth management business. This could be a limited liability company (LLC), corporation, partnership, or sole proprietorship. Each type has its own benefits and drawbacks so it’s important to do research and choose wisely so that your wealth management business is in compliance with local laws.
3. Register Your Wealth Management Business - Once you have chosen a legal structure, the next step is to register your wealth management business with the government or state where you’re operating from. This includes obtaining licenses and permits as required by federal, state, and local laws.Â
4. Identify Financing Options - It’s likely that you’ll need some capital to start your wealth management business, so take some time to identify what financing options are available such as bank loans, investor funding, grants, or crowdfunding platforms.Â
5. Choose a Location - Whether you plan on operating out of a physical location or not, you should always have an idea of where you’ll be based should it become necessary in the future as well as what kind of space would be suitable for your operations.Â
6. Hire Employees - There are several ways to find qualified employees including job boards like LinkedIn or Indeed as well as hiring agencies if needed – depending on what type of employees you need it might also be more effective to reach out directly through networking events.Â
7. Acquire Necessary Wealth Management Equipment & Supplies - In order to start your wealth management business, you'll need to purchase all of the necessary equipment and supplies to run a successful operation.Â
8. Market & Promote Your Business - Once you have all the necessary pieces in place, it’s time to start promoting and marketing your wealth management business. This includes creating a website, utilizing social media platforms like Facebook or Twitter, and having an effective Search Engine Optimization (SEO) strategy. You should also consider traditional marketing techniques such as radio or print advertising.