Could having a financial planning side hussle help with the succession of independent financial advice firms?

Having a financial planning-only side hustle could indeed offer a lifeline for the succession of independent financial firms, especially in the context of the challenges highlighted by Warren Ingram from Galileo Capital. Let’s explore the potential benefits:

1. Diversification of Revenue Streams: A side hustle in financial planning, distinct from the core advisory services of a firm, could open up additional revenue streams. This is crucial in mitigating the risk when traditional revenue faces pressure from regulatory changes and market dynamics.
2. Reducing Dependency on External Funding: By establishing a financial planning arm that potentially requires less regulatory capital compared to traditional financial advisory services, firms can lessen their dependency on unfavorable funding solutions. This could be particularly valuable given the high interest rates and stringent conditions often imposed by banks on the acquisition of such firms.
3. Attracting and Retaining Talent: Offering younger, perhaps less financially equipped, professionals the opportunity to engage in and eventually own a part of the financial planning side hustle could serve as a strategic move to ensure the succession and sustainability of the business. This can also serve as a stepping stone, preparing them to take over more significant roles within the main firm.
4. Building Client Trust and Firm Resilience: A dedicated financial planning service can deepen client relationships by focusing solely on planning without the pressure of selling products. This could enhance client trust and retention, which are critical during times of ownership transition.
5. Strategic Independence: As firms grow and potentially come under the radar of larger consolidators, having a robust, independently profitable side business in financial planning could provide leverage and strategic options. It could serve as either a negotiation tool or a sustainable alternative to merging with larger entities.

Each of these points reflects a strategic dimension where a financial planning-only side hustle not only supports the continuity of the business but also fortifies its foundational principles against the prevailing winds of the industry’s consolidation and commercial pressures.

If you would like to know more about financial planning side-hustles in UK or South Africa, click the links.

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Could non-reg financial planning have a place in your tool kit?

Other advisers seem to think so:

“Many independent chartered and certified financial planning firms, mine included, have been doing this for years. It’s a well-trodden path that achieves much better outcomes for clients and reduces conflict of interest.” – Robin Medley.

“I think it’s perfectly feasible and one clear way is to have non FCA registered individuals performing the non regulated roles – ex chartered accountants with a private client background and private clients solicitors would be obvious examples of those who could shine at it. Those roles could also be a feasible way to a second career – particularly feasible as they could still generate fees and earn as they do it.” – Dave Robinson.

“Yes absolutely, the planning (non regulated bit) is in my view, the most important element.” – Nick Winter


Here’s another article:

Wearing two hats: https://bit.ly/3UNU1Rp

If you’d like to know more about the how, drop me a DM.

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🚀 Facing hurdles in planning for the future of your independent financial firm?

You’re not alone. The journey to maintain independence amidst increasing regulatory pressures and high operational costs is fraught with challenges.

👉 Pain Points:
High Regulatory Costs: The financial burden of compliance is pushing many independent firms to their limits.
Lack of Support: There’s a significant gap in funding and support from the truely independent financial profession, making succession planning tough.
Risky Funding Options: Traditional financing routes often come with prohibitive costs, leaving few viable options for firm succession.

🌟 Gains:
Innovative Revenue Streams: A side hustle in financial planning can diversify revenue and reduce reliance on external funding.
Empowerment through Ownership: Offering staff the chance to be part of a financial planning venture can ensure firm continuity and foster talent.
Strategic Autonomy: Maintain your firm’s integrity and independence by strengthening its financial and operational foundation.

🔗 Explore how a strategic side hustle could be the key to sustaining your firm’s independence and success: Read More by visiting our website, www.AcademyofLifePlanning.com.

Let’s discuss how we can apply these strategies to keep our firms resilient and independent. What are your thoughts?

Contact me today, steve.conley@aolp.co.uk.