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How to Start An Investment Firm and Position It for Success

Last Tuesday, our Financial Entrepreneurs Forum hosted the first session in 2013 on “how to start an investment firm and position it for success”.   Considering the market is doing better and investors are starting to invest again, we feel it’s a timely topic for our forum members.

– Business plan and its necessity.  Although the business plan doesn’t need to be written out, most attendees who have gone through the firm’s launch feel it’s necessary to set a business and asset goal for the future.  Some also advise hiring a financial advisor coach;

– Cost.  The sky is the limit.  For start-ups on a budget, attendees have a pretty good experience with “RIA-in-a-box”.  Some recommend having an attorney review the key documents such as ADV and agreements with clients since firms like “RIA-in-a-box” cannot provide formal legal advice;

– Third party marketing firms.  The attendees agreed that unless you reach certain asset level such as $25mm and above, third party marketing firms cannnot help much, if any at all.

The rest of the discussion was similar to the one held by CFA society.  You can read the notes here.

To learn how to start a hedge fund, I’ve made a series of youtube videos on start-up process, capital raising and costs of starting and running a hedge fund.  You may watch the videos (15 minutes each) here.