Meet Tara Nolan (03:37)
Tara Nolan, founder and CEO of Tara Nolan Advisory Services was in the Air Force, earned an M.B.A, and gained experience working for a local financial company. SEC and FINRA regulations limit what a business can do.
Setting Up a Plan (02:10)
Nolan says people need a tax plan---with the CPA, and an estate plan; the client's goals determine the makeup of the financial team. This team consists of experts who share the same philosophy as the client. Tara applies her military experience to her financial advising.
Personality Traits (03:07)
Any type of person--who is authentic and trustworthy--can be a financial advisor. Tara began working with a firm to gain experience. She discusses various types of licenses.
Be Aggressive When Building a FInancial Advisory Business (02:43)
Tara discusses training courses, the costs of tests, and the expected amount of training time. Asking questions is key to learning about the industry. Multilevel marketing benefits the senior advisor.
Trust Yourself & Get a Mentor (02:23)
The financial advising industry is protective of itself. Learn the vocabulary. Tara chose to set out on her own when the firm she was working for let her know her methods would not work for that firm.
"Build the Business You Want" (02:08)
Tara and her husband set aside a year's worth of income to start the business. Tara discusses how she balances personal and work life. Tara is setting up her business so that she can run it from anywhere on her laptop computer.
Personality Traits for Financial Advising Business (03:17)
Tara explains how she stays in touch with her mentor and other mentees, a service she pays for. Sales and networking skills are key as is patience, as some customers return months later.
Lessons Learned from the Journey (03:39)
This segment summarizes the conversation between entrepreneur Tara Nolan and Dr. Tom Duening about starting a financial advisory business.
The Entrepreneur's Advice (03:06)
Nolan recommends working with a firm to gain knowledge of the industry. Find out the type of business you're comfortable with. Determining license requirements is difficult. Getting advice from a firm is the best way to learn.
Business Model (02:39)
A finance/business degree is not necessary. Nolan explains that her business model is to hire experts to work the numbers while she focuses on relationships. A small office, a car and basic office equipment are needed to start a financial advisory business.
Building an Office (01:56)
Record keeping is critical. Keep all emails and correspondence. Be tech savvy, or hire someone who is. There are many record-keeping software programs available. Nolan estimates these costs at $5,000.
How a Financial Manager is Paid (01:37)
Nolan estimates that it will take three to five years to start earning a living wage. A non-compete form is usually required when leaving a firm. Nolan explains that she charges either per "plan" or percentage of assets under management.
Standard Fees for Financial Advising (02:29)
The amount a client is charged depends on the financial advisor. A firm charging over two percent must justify this amount to the state or SEC. Learn state and federal regulations for financial advising.
Federal and State Regulations (03:09)
The state conducts no-notice compliance inspections. Colorado has a securities commissoner who regulates up to 100 million dollars in assets under management. A Securities Commissioner is in charge in each state. Life insurance is regulated separately.
Find Your Market (03:26)
Differentiate yourself from other financial advisers. Products are commission based. Fee base is strictly based on performance. The adviser reviews client goals and risks.
Work Ethic (02:19)
Quarterly updates and annual reevaluations are done. If clients are unhappy, there are no surrender values. Remaining professional, respectful, and staying connected to clients is important.
Nolan discusses positives and negatives of cold-calls in the financial advisory business.
Building a Business of Attraction (02:26)
Tara has a website, sends out newsletters, and does a teleconference series. She finds her niche in women and entrepreneurs with high net worth. Websites are available to research and analyze the market.
Tara's Business Plan (02:03)
Tara wrote a business plan and started interviewing people she viewed as ideal clients to get ideas for the business. She is currently setting up six interviews of successful women to put on her blog.
Tara's website offers her services at the client's convenience. She has business cards and recently put an ad in the paper. She says be comfortable with what you're selling, be authentic and be confident.
Social Media (02:34)
By using social media and blogging, Nolan offers the client an opportunity to get to know her. She recommends joining business and non-profit organizations.
Continuing Education (01:51)
Nolan says attending seminars to stay up to date in the industry. License renewals are not necessary. Staying active and keeping paperwork updated with state or SEC is required. Trade magazines give great advice on the industry.
High Reward High Risk (02:28)
Attending trade group conferences is a good way to learn more about financial advising. Many mentors are available in the industry. Different ways to find a mentor are discussed.
High Reward High Risk (02:17)
It is important to research third-party companies and evaluate their performance and philosophies. Tara says do your homework, ask questions, and listen to your gut.
The Entrepreneur's Advice: Summary (04:24)
Dr. Tom Duening summarizes the key points of starting a Financial Advisor Business.
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