7 Financial Services Business Ideas You Can Start
Financial services come in many forms, and you might have a great idea for a company that can help make the lives of millions easier – or more fruitful.
If remote working and the sharp rise in people starting their own business has got you excited – then you are not alone.
There has been a sharp rise in the number of people who have made the jump from working 9-5 to their alternatives working from home (maybe longer hours to start with) and launching their own company or starting life as a freelancer.
Financial planners, budgeting apps, accounting services (if you’re a qualified accountant), assistance, comparison websites, or even cryptocurrency websites and applications are all in high demand.
If you have decided that you want to put your skills into a financial services or products business, then here are some considerations that you need to make.
However, ensure you do these three things first before lauching your financial services business.
When it comes to financial services, people have big demands on the kind of products they use.
Similar to starting a tech company, you’ll need to make sure that there aren’t too many products that are servicing the same audience.
If you still want to go into that sector, ensure that what you offer is enough to compete.
Start by searching your services keywords to see what the search landscape is like. What are competing companies ranking for? How can you make a splash in that area?
2. Rules & Regulations
Financial services in all countries will require that you are registered and have all of the required licenses. It won’t take long to find out what you need in order to be compliant with all of the rules.
Once you have a list of the governing bodies for all of the licenses, it is a good idea to see how long the licensing application process takes and what evidence you need to offer them.
Knowing how long it will take can help you to plan your launch dates and other business timelines.
Where there are mutual funds, bonds, stocks and other types of investments, you’ll need to have the correct law or investment licenses.
Keep in mind that if you choose to offer services globally, you’ll need all of the corresponding licenses.
3. Services & Fees
Will you have a single focus as your product, or will you be offering other services that complement the main service?
Almost all financial services will have fees attached – and you will need to make sure that yours are not only reasonable but that you get a good income from them too.
Financial services usually charge a percentage of transitions or a flat-rate fee. You’ll need to decide what makes the most sense to your audience and you.
The fee model should be something you have nailed down long before you are ready to launch, as this will be one of the factors that will draw people to use your services.
What are some profitable financial services business options?
While no business startup is guaranteed to make a profit, and you should try to launch businesses that are in your skill set. Here are some financial businesses that are making waves.
1. Financial blog
While this might not be a direct service, you will be offering a lot of information to readers. Financial blogs offer a lot of value to their readers and can also work with leading financial services to give an overview.
What makes a financial blog a good idea is that it has low initial investment, but keep in mind you’ll need to put in plenty of hours to get your readership to a point for it to make you money.
You can choose a niche like stocks and keep your readers abreast of all of the latest stock market movements.
2. Debt collection
While it might not be seen as a worthy business, it is a profitable one. A debt collection agency can be started from home, and in order to make things easier for your client accounts to pay, you can have a mobile app running alongside it.
There are many companies that can offer high-quality apps to make this role easier.
Millions of people are investing now, and stock brokers and brokerage platforms make a lot of money facilitating the buying and selling of stock.
To make a profit in stock broking, you’ll take commission and fees for each transaction that takes place on your platform.
Stockbroking is a competitive area to get into – so make sure that you have some funds available for your marketing strategy.
4. Funding research
You could create a portal or platform that businesses or people can put their circumstances in (anonymously).
They will receive recommendations and suggestions for where they could get funding for their circumstances.
For example, a small business run by a black man in a low eco-socio area might have options to apply for funding that they weren’t aware of.
Because often, the best funding isn’t marketed to the right people.
5. Expense reduction analyst
If you are great with budgeting, or you can give clear advice and information about how people and/or businesses can maximize their profits and reduce their overheads, that is a high-value skill.
An expense reduction analyst is a specialist position. However, it is possible to have software created that can automatically highlight all areas where reductions can be made.
The software could be a standalone service that is paid for by clients.
6. Tax checklist & form hub
For those who can’t afford the services of an accountant, you can provide in-depth information that can enable people to prepare the taxes via a checklist of steps.
You could provide links to all the correct documents needed, and supporting numbers.
Keep in mind that you’ll need to have plenty of disclaimers.
You need to make it clear that the advice is not from a financial expert and that you are not responsible for any tax issues.
Considering that getting business loans for small businesses can be costly and long-term unsustainable – an ethical lender in this industry would be good news.
It’s a great idea to lend money to people or businesses with reasonable repayment terms.
Small business want to enjoy the benefits of loans when starting out, hence, if you have access to some starting funds, you can become an ethical lender.
Running a financial service should always have the idea that you will help the people or businesses you set out to support. So, go ahead to help others reach their goals and ambitions.