Wealth Management Business Plan Template
If you want to start a wealth management business or expand your current wealth management business, you need a business plan.
Fortunately, you’re in the right place. Our team has helped develop over 100,000 business plans over the past 20 years, including thousands of wealth management company business plans.
The following wealth management business plan template and example gives you the key elements you must include in your plan. In our experience speaking with lenders and investors, the template is organized in the precise format they want.
Wealth Management Business Plan Example
I. Executive Summary
Business Overview
[Company Name] is a new wealth management firm located in the heart of downtown [Location]. Our firm’s mission is to assist the city’s most prosperous residents manage their cash flow, investments, and other assets. To accomplish this, we offer a variety of wealth management services for every stage of our clients’ lives. These services include investment management, estate planning, and retirement planning. With a variety of services, a client-focused mission, and a team of experienced advisors, we expect [Company Name] to be the top wealth management firm in the city in the next five years.
Products Served
[Company Name] will provide a variety of wealth management services to the affluent residents of [Location]. These include, but are not limited to, personal financial planning and advice, estate planning, retirement planning, investment management, and tax planning.
Customer Focus
[Company Name] will primarily serve affluent residents within the [Location] metro area. The demographics of the local population are as follows:
- 125,876 residents
- Average income of $80,000
- Median age of 38 years
- 58% married
- 45% with children under 18
Management Team
[Company Name]’s most valuable asset is the expertise and experience of its founder, [Founder’s Name]. [Founder’s Name] is a certified wealth management advisor with [X] years of experience in the industry. He became the top wealth advisor for his previous employer, finding success through his specialized knowledge of the industry and by providing personalized, exceptional service to all of his clients. His success, loyal client base, and passion for the industry inspired him to create a wealth management firm of his own and will ensure that [Company Name] is a success.
Success Factors
[Company Name] is uniquely qualified to succeed due to the following reasons:
- [Company Name] will fill a specific market niche in the growing community we are entering. In addition, we have surveyed the local population and received extremely positive feedback saying that they explicitly want to make use of our services when launched.
- Our location is in a high-volume area with easy access from multiple residential and commercial district zones.
- [Location] is home to many successful entrepreneurs, individuals, and companies. Therefore, there is a large potential client base that needs our services.
- The management team has a track record of success in the private wealth management industry.
- The local area is currently underserved and has very few experienced wealth management advisors.
Financial Highlights
[Company Name] is currently seeking $225,000 to launch. Specifically, these funds will be used as follows:
- Office design/build: $50,000
- Supplies and equipment: $25,000
- Working capital: $150,000 to pay for marketing, salaries, and lease costs until [Company Name] reaches break-even
Top line projections over the next five years are as follows:
| Financial Summary | FY 1 | FY 2 | FY 3 | FY 4 | FY 5 |
|---|---|---|---|---|---|
| Revenue | $560,401 | $782,152 | $1,069,331 | $1,379,434 | $1,699,644 |
| Total Expenses | $328,233 | $391,429 | $552,149 | $696,577 | $776,687 |
| EBITDA | $232,168 | $390,722 | $517,182 | $682,858 | $922,956 |
| Depreciation | $7,000 | $7,000 | $7,000 | $7,000 | $7,000 |
| EBIT | $225,168 | $383,722 | $510,182 | $675,858 | $915,956 |
| Interest | $6,016 | $5,264 | $4,512 | $3,760 | $3,008 |
| Pre Tax Income | $219,152 | $378,458 | $505,670 | $672,098 | $912,948 |
| Income Tax Expense | $76,703 | $132,460 | $176,985 | $235,234 | $319,532 |
| Net Income | $142,449 | $245,998 | $328,686 | $436,864 | $593,416 |
| Net Profit Margin | 25% | 31% | 31% | 32% | 35% |
II. Company Overview
Who is [Company Name]?
[Company Name] is a new wealth management firm located in the financial district of downtown [Location]. It is a small firm that consists of a few wealth management advisors. Each advisor is committed to providing personalized financial management and advisory services as well as excellent customer service and attention. Our location is in a prime spot and can be easily seen and accessed by thousands of commuters, local workers, and pedestrians who traverse the financial district every day.
[Company Name]’s mission is to assist the city’s most prosperous residents manage their cash flow, investments, and other assets. To accomplish this, we offer a variety of wealth management services for every stage of our clients’ lives. These services include investment management, estate planning, and retirement planning. Whether our clients need to manage their personal investments for themselves or ensure their future generations live comfortably, [Company Name] has the expertise to help them achieve their financial goals.
[Company Name]’s History
[Company Name] was founded by [Founder’s Name], a wealth management advisor with [X] years of experience in the industry. He incorporated [Company Name] on [Date of Incorporation] as an S-corporation.
The business is currently being run out of [Founder’s Name] home office, but once the lease on [Company Name]’s office location is finalized, all operations will be run from there.
Since incorporation, [Company Name] has achieved the following milestones:
- Found office space and signed Letter of Intent to lease it
- Developed the company’s name, logo, and website located at [website]
- Hired an interior designer for the decor and furniture layout
- Determined equipment and fixture requirements
- Began recruiting key employees
[Company Name]’s Products/Services
[Company Name] will provide a variety of wealth management services to the affluent residents of [Location]. These include, but are not limited to:
- Personal Financial Planning
- Asset Allocation and Management
- Tax Planning and Advice
- Estate Planning
- Retirement Planning
- Philanthropic Planning
III. Industry Analysis
You can download our Business Plan Template (including a full, customizable financial model) to your computer here.
The wealth management industry is strongly correlated with the strength of the economy as a whole. Poor performance in the industry is often an indicator that the economy is struggling. While the economy struggled throughout the pandemic years, recent data shows that the economy is in full swing again. According to Global Newswire, the wealth management industry is currently worth $1.25 trillion and is expected to grow at a CAGR of 10.7% from now until 2030. This is substantial growth and shows that the financial industry will continue to be strong throughout the rest of the decade. Wealth management firms both small and large can expect significant growth and an increase in profits over the next several years.
The market served by wealth management advisors is a diverse one. Most of the client base is made up of High Net Worth Individuals who have at least $1 million in investment-ready assets. Many of these clients are aging individuals who are nearing retirement. Younger clients tend to be executive-level employees or successful entrepreneurs. This diverse demographic shows that wealth management firms need a variety of services to accommodate each customer segment’s financial goals and demands.
IV. Customer Analysis
Demographic Profile of Target Market
[Company Name] will serve high-net-worth residents of [Location] and the immediately surrounding areas.
The area we serve is populated mostly by the middle- and upper-middle-class. Many residents have a high net worth and need assistance managing their assets and portfolios. Therefore, they have both the need for wealth management services and the means to pay for it.
Customer Segmentation
[Company Name] will primarily target the following customer segments:
- Individuals Aged 55+: The area in which the company will operate has a significant population of successful individuals in the 55+ age range. This generation is rapidly approaching their retirement age and has a great deal of disposable or discretionary income. After experiencing a life of great financial prosperity, these are often married couples or empty nesters. They seek to ensure that their own nest eggs will support the lifestyle they want to live after they stop working and that their wealth will be preserved appropriately for future generations of family members. These customers typically have extensive networks of individuals in similar economic circumstances, and as such will be an excellent source of referrals.
- High Income Professionals: [Company Name] is located along a well-traveled commute route. By offering a convenient location, effective advertising, and a strong product mix, the company will draw in a significant crowd of professionals with rising earning power who wisely seek to manage their money for the future.
- Young Parents: There is a growing population of young parents with small children in the company’s immediate surrounding area. These people will seek solutions to provide for the future economic well-being of their new families.
V. Competitive Analysis
Direct & Indirect Competitors
The following financial advisory firms are located within a 20-mile radius of [Company Name], thus providing either direct or indirect competition for customers:
Stanley Financial Advisors
Stanley Financial Advisors is a longstanding financial firm that has operated in the heart of [Location] for over 40 years. The firm offers a long list of wealth management services that are tailored precisely to the needs and goals of each client. From investment management to retirement planning, Stanley Financial Advisors provides every service that a client could need to manage their wealth and secure their future.
When clients choose Stanley Financial Advisors, they also receive great service that ensures a lifelong relationship with their advisors. This has resulted in Stanley Financial Advisors developing a strong and loyal client base.
Cherry Tree Wealth Management
Five decades ago, Cherry Tree Wealth Management started as a local financial advisory firm that catered to local wealthy entrepreneurs. The expertise of Cherry Tree’s advisors put the firm in high demand allowing the company to expand rapidly. Now, Cherry Tree has multiple locations across four cities and employs dozens of the best wealth management professionals in the industry. It remains 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.
Seaside Capital Management
Founded in 1952, Seaside Capital Management started as a small financial firm dedicated to helping successful individuals manage their assets and portfolios. The firm has exploded in growth since then and now offers a wide suite of services to ensure their clients’ financial futures are in good hands. In addition to its top-tier services, Seaside Capital Management is well known for its commitment to its clients, vowing to always do the right thing and put them first. For nearly a century, Seaside Capital Management has committed to these values, which has earned them a loyal following and tremendous success.
Competitive Advantage
[Company Name] enjoys several advantages over its competitors. These advantages include:
- Location: [Company Name]’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. The location gives passersby a direct look at our firm, most of which are part of our target market.
- Client-oriented service: [Company Name] will have a full-time assistant to primarily keep in contact with clients and answer their everyday questions. [Founder’s Name] realizes the importance of accessibility to his clients, and will further keep in touch with them through regular emails and newsletters.
- Management: [Founder’s Name] has been extremely successful working in the wealth management industry and will be able to use his previous experience to grant his clients detailed insight into their finances. His unique qualifications will serve customers in a much more sophisticated manner than [Company Name]’s competitors.
- Relationships: Having lived in the community for 25 years, [Founder’s Name] knows many of the local leaders, newspapers, and other influencers. 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.
VI. Marketing Plan
The [Company Name] Brand
The [Company Name] brand will focus on the company’s unique value proposition:
- Client-focused wealth management 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
[Company Name] will target high-net-worth residents located within a 20-mile radius of [Location]. The company’s promotions strategy to reach the most clients includes:
Targeted Cold Calls
[Company Name] will initially invest significant time and energy into contacting potential clients via telephone and email. In order to improve the effectiveness of this phase of the marketing strategy, a highly focused contact list will be used, targeting individuals in areas and occupations that are most likely to demand the services of a wealth management advisor. As this is a very time-consuming process, it will primarily be used during the startup phase to build an initial client base.
Referrals
[Company Name] 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.
Direct Mail
[Company Name] will use a direct mail campaign to promote its brand and draw clients, as well. The campaign will blanket specific neighborhoods with simple, effective mail advertisements that highlight the credentials and credibility of [Company Name] as a wealth management firm.
Social Media
[Company Name] will maintain a social media presence to attract potential clients seeking wealth management advisors. The company will post information about our team, services, and general finance tips. To create a genuine connection with our clients, the company will also use social media to engage with them and answer any questions they may have about our firm.
Website
[Company Name] will have an informative and attractive website featuring all its services and referrals from other satisfied clients. The website will be highly informative and be designed in a way that is friendly and eye-catching.
SEO
[Company Name] will invest in a strong SEO presence so that the firm is listed at the top of the Google or Bing search engine when a potential client is researching wealth management advisors in [Location].
Pricing Strategy
The fees and hourly pricing of [Company Name] will be moderate and competitive so clients feel they are receiving great value when utilizing our wealth management services.
VII. Operations Plan
Functional Roles
[Company Name] will need to fulfill the following functional roles to execute its business plan and ensure the company’s success:
Wealth Management Functions
- Estate planning
- Tax planning
- Investment management
- Retirement planning
- Customer service
- Cold call potential clients
Administrative Functions
- Marketing
- Bookkeeping
- Social media management
- Hiring and training staff
- Maintenance functions
- Other general administrative functions
Milestones
The following are a series of steps that lead to our vision of long-term success. [Company Name] expects to achieve the following milestones in the following [xyz] months:
| Date | Milestone |
|---|---|
| [Date 1] | Finalize lease agreement |
| [Date 2] | Design and build out [Company Name] |
| [Date 3] | Hire and train initial staff |
| [Date 4] | Kickoff of promotional campaign |
| [Date 5] | Launch [Company Name] |
| [Date 6] | Reach break-even |
VIII. Management Team
Management Team Members
[Company Name]’s most valuable asset is the expertise and experience of its founder, [Founder’s Name]. [Founder’s Name] is a certified wealth management advisor with [X] years of experience in the industry. He became the top wealth advisor for his previous employer and has built a large and loyal client base. Many of [Founder’s Name]’s clients have stated that they will switch to [Company Name] once the company is established and running. [Founder’s Name]’s combination of skills, financial knowledge, and loyal following will ensure [Company Name]’s success.
[Company Name] will also employ an experienced assistant to help with various administrative duties around the office. The company will aim to hire an assistant who has experience working with C-level executives and has spent significant time as an administrator.
Hiring Plan
[Founder’s Name] will serve as the President of the company, but will also serve as the primary wealth management advisor until he hires more. In order to launch the business, the company needs the following additional personnel:
- Administrative Assistants (1 to start)
- Wealth Management Advisors (3 to start)
IX. Financial Plan
Revenue and Cost Drivers
[Company Name]’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.
Capital Requirements and Use of Funds
[Company Name] is currently seeking $225,000 to launch. Specifically, these funds will be used as follows:
- Office design/build: $50,000
- Supplies and equipment: $25,000
- Working capital: $150,000 to pay for marketing, salaries, and lease costs until [Company Name] reaches break-even
5 Year Annual Income Statement
| Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | ||
|---|---|---|---|---|---|---|
| Revenues | ||||||
| Product/Service A | $151,200 | $333,396 | $367,569 | $405,245 | $446,783 | |
| Product/Service B | $100,800 | $222,264 | $245,046 | $270,163 | $297,855 | |
| Total Revenues | $252,000 | $555,660 | $612,615 | $675,408 | $744,638 | |
| Expenses & Costs | ||||||
| Cost of goods sold | $57,960 | $122,245 | $122,523 | $128,328 | $134,035 | |
| Lease | $60,000 | $61,500 | $63,038 | $64,613 | $66,229 | |
| Marketing | $20,000 | $25,000 | $25,000 | $25,000 | $25,000 | |
| Salaries | $133,890 | $204,030 | $224,943 | $236,190 | $248,000 | |
| Other Expenses | $3,500 | $4,000 | $4,500 | $5,000 | $5,500 | |
| Total Expenses & Costs | $271,850 | $412,775 | $435,504 | $454,131 | $473,263 | |
| EBITDA | ($19,850) | $142,885 | $177,112 | $221,277 | $271,374 | |
| Depreciation | $36,960 | $36,960 | $36,960 | $36,960 | $36,960 | |
| EBIT | ($56,810) | $105,925 | $140,152 | $184,317 | $234,414 | |
| Interest | $23,621 | $20,668 | $17,716 | $14,763 | $11,810 | |
| PRETAX INCOME | ($80,431) | $85,257 | $122,436 | $169,554 | $222,604 | |
| Net Operating Loss | ($80,431) | ($80,431) | $0 | $0 | $0 | |
| Income Tax Expense | $0 | $1,689 | $42,853 | $59,344 | $77,911 | |
| NET INCOME | ($80,431) | $83,568 | $79,583 | $110,210 | $144,693 | |
| Net Profit Margin (%) | - | 15.00% | 13.00% | 16.30% | 19.40% |
5 Year Annual Balance Sheet
| Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | ||
|---|---|---|---|---|---|---|
| ASSETS | ||||||
| Cash | $16,710 | $90,188 | $158,957 | $258,570 | $392,389 | |
| Accounts receivable | $0 | $0 | $0 | $0 | $0 | |
| Inventory | $21,000 | $23,153 | $25,526 | $28,142 | $31,027 | |
| Total Current Assets | $37,710 | $113,340 | $184,482 | $286,712 | $423,416 | |
| Fixed assets | $246,450 | $246,450 | $246,450 | $246,450 | $246,450 | |
| Depreciation | $36,960 | $73,920 | $110,880 | $147,840 | $184,800 | |
| Net fixed assets | $209,490 | $172,530 | $135,570 | $98,610 | $61,650 | |
| TOTAL ASSETS | $247,200 | $285,870 | $320,052 | $385,322 | $485,066 | |
| LIABILITIES & EQUITY | ||||||
| Debt | $317,971 | $272,546 | $227,122 | $181,698 | $136,273 | |
| Accounts payable | $9,660 | $10,187 | $10,210 | $10,694 | $11,170 | |
| Total Liabilities | $327,631 | $282,733 | $237,332 | $192,391 | $147,443 | |
| Share Capital | $0 | $0 | $0 | $0 | $0 | |
| Retained earnings | ($80,431) | $3,137 | $82,720 | $192,930 | $337,623 | |
| Total Equity | ($80,431) | $3,137 | $82,720 | $192,930 | $337,623 | |
| TOTAL LIABILITIES & EQUITY | $247,200 | $285,870 | $320,052 | $385,322 | $485,066 |
5 Year Annual Cash Flow Statement
| Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | |
|---|---|---|---|---|---|
| CASH FLOW FROM OPERATIONS | |||||
| Net Income (Loss) | ($80,431) | $83,568 | $79,583 | $110,210 | $144,693 |
| Change in working capital | ($11,340) | ($1,625) | ($2,350) | ($2,133) | ($2,409) |
| Depreciation | $36,960 | $36,960 | $36,960 | $36,960 | $36,960 |
| Net Cash Flow from Operations | ($54,811) | $118,902 | $114,193 | $145,037 | $179,244 |
| CASH FLOW FROM INVESTMENTS | |||||
| Investment | ($246,450) | $0 | $0 | $0 | $0 |
| Net Cash Flow from Investments | ($246,450) | $0 | $0 | $0 | $0 |
| CASH FLOW FROM FINANCING | |||||
| Cash from equity | $0 | $0 | $0 | $0 | $0 |
| Cash from debt | $317,971 | ($45,424) | ($45,424) | ($45,424) | ($45,424) |
| Net Cash Flow from Financing | $317,971 | ($45,424) | ($45,424) | ($45,424) | ($45,424) |
| SUMMARY | |||||
| Net Cash Flow | $16,710 | $73,478 | $68,769 | $99,613 | $133,819 |
| Cash at Beginning of Period | $0 | $16,710 | $90,188 | $158,957 | $258,570 |
| Cash at End of Period | $16,710 | $90,188 | $158,957 | $258,570 | $392,389 |
