Wealth Management Business Plan

Business Plan Articles

If you are creating a wealth management company, it is likely that you will require a business plan at some point. The professionals at Pro Business Plans have worked with dozens of wealth management professionals to create plans for investment and strategy. This article contains information on what is typically included in a wealth management business plan and how it is structured.

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Wealth Management Business Plan

There are several things to consider if you are creating a business plan for a wealth management company. Among the most important are how you will acquire clients and effectively be able to convert them. Having a plan in place will not only help you to be prepared, but also to acquire more clients and gain the interest of potential partners and investors that you may need to jump-start your business. A strong business plan for wealth management includes information about the business model, marketing strategy, and the potential financial forecasts that the wealth manager can project.

Business Model

The business model for a wealth manager is relatively straightforward, but the ability to consistently win and retain clients can be challenging. It not only requires an impressive background, but that the wealth manager have some go-to-market strategy and way to consistently win clients. Since other wealth management professionals are competing for the same business, it only makes sense to establish market positioning. For instance, the approach of one wealth manager may be to be engaged within the startup community and tailor to recently wealthy technology entrepreneurs by building relationships early on. The approach to others may be to establish connections at country clubs and philanthropic events by co-hosting or sponsoring tournaments and engaging in philanthropic activities.


market positioning

Market Positioning

The market positioning for a wealth manager is important because it directs the area of the market and their respective approach. Some wealth managers target a specific niche, for instance, some may target high net worth individuals that have intergenerational wealth. Others may target those that have recently been awarded a large sum of money through a business acquisition or some other source.


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Operations Structure

Most of a wealth manager’s duties revolve around building relationships with clients and working to maintain those relationships over a long period of time. This is generally taken in the form of a business development role or other related customer facing position.


Marketing Plan

he marketing strategy for a wealth management business plan may be constrained by regulatory restrictions, as well as restrictions by the company the wealth manager represents. For instance, Merrill Lynch may have conditions that specify what its wealth managers may use in its promotions and how they may promote themselves. Individual wealth management offices generally have greater autonomy in their marketing strategy. The most effective approach through both channels to building a personal and professional network based around trust and credibility. Rather than spending money on mass marketing campaign and possibly running into regulatory issues, focus on building close relationships with prospective clients and converting them over a long period of time. Wealth management is about relationships and trust, which can only thinly be established if the prospective lead has been generated from a marketing campaign.


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Lead Generation

There are many approaches to generating leads for a wealth manager including online, referral networks, and sourcing through networking. It is often best to have some niche or special approach to generating leads that will outperform the competition seeking access to the same high net worth individuals


business development

Business Development

The business development of a wealth management company is focused around establishing and nurturing relationships with potential leads and strategic partners that may eventually grow into a loyal client base. This is extremely important for an individual wealth manager or company that wishes to expand in the market.


Financial Projections

One of the most hotly debated subjects in the startup world is how to effectively prepare projections for an Wealth Management. There are several elements that combine in order to form the basis for this, however it is still subject to many assumptions and only providing a well-structured conclusion will be advantageous. Many startups get confused and believe that their projections are able to form a basis to propose a startup valuation, which is simply not feasible in most circumstances. The best approach to forming the projections is to estimate the revenue based upon similar companies and form a budget of what you will need in order to grow the company.


revenue projections

Revenue Projections

The revenue forecasts for a wealth management company are based on several factors including the structure of the company. In general, the revenue projections will be correlated with the amount of assets under management which can be accomplished either through just a few high net worth clients or a large number of ones with a more modest net worth.


budget forecasts

Budget Forecasts

The budget for a wealth manager will depend on the style of lead generation and the business development approach. Some wealth managers require access to premium clubs and travel often. Others may have a more modest budget that serves a lower net worth clientele such as middle class retirees and college students.


What is Included in Our Custom Wealth Management Business Plan?


  • Marketing Plan
  • SWOT Analysis
  • Competitive Analysis
  • Profitability Analysis
  • Personnel Plan
  • Organizational Chart
  • Company Valuation
  • Executive Summary
  • Company Description
  • Keys to Success
  • Three Year Objectives
  • Product or Service Description
  • Market Research
  • Fundraising Support
  • 12 Month & 3 Year Profit & Loss
  • 3 Year Balance Sheet
  • 12 Month & 3 Year Sales Forecast
  • 12 Month & 3 Year Cash Flows
  • Break-Even Analysis
  • Financial Ratio Analysis
  • Management Team

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