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How much does it REALLY cost to start an RIA
This may be the single question we hear most often at XY Planning Network Clearly itrsquos a key consideration for anyone preparing to become an entrepreneur Despite all of the practice wersquove had with this question the answer isnrsquot an easy one
There is an endless number of variables Building a business is not unlike building a house You can erect a rustic shack with plans to modernize and add on over time Or you can build a luxury penthouse with floor-to-ceiling marble Your comfort level and budget will likely be somewhere in between It really comes down to deciding what kind of business you want to build
In this guide wersquoll review some basic expenses you should anticipate when launching a firm Wersquoll present three case studies highlighting the first-year budgets of XY Planning Network members who invested vastly different amounts into launching their firms ranging from $12000 to $55000 Finally wersquoll provide templates for you to start mapping your own expenses in anticipation of building your firm
All of us at XY Planning Network wish you the best of luck on your new venture Wersquore here to help
Business Set-Up
In this category there are a handful of fees to anticipate Expect to spend $100 on the fee for business formation (LLC filing fee) and $250 for your RIA Registration Fee Business liability insurance will likely set you back $400 annually
You will also need Professional Liability (EampO) Insurance This typically comes at a price tag of about $2000 upfront Through special arrangement XYPN members are able to pay for their EampO insurance monthly in installments of $90
Initial registration and compliance assistance are pain points for many new firm owners Compliance regulations can be confusing to navigate and no one wants to make a mistake in this area Expect to spend about $2800 upfront for outside help plus $210 for ongoing support Note XY Planning Network is able to offer initial registration for just $1000 to members through our in-house compliance department
Depending on your state you may be required to maintain a minimum net worth Although the required amounts vary by location we commonly see a range of $10000-$15000 based on services offered by your firm
ldquoI had to put $12000 in the bank in the great state of California You canrsquot start a firm for under $10K in Californiardquo
-Scott Frank Stone Steps Financial
Marketing
Marketing is an area of your budget that can vary greatly There is no shortage of ways to spend marketing dollars and expenses can add up quickly To defray costs for members XY Planning Network provides members with support to promote their firms Benefits include but are not limited to
bull A marketing coach with industry-specific expertisebull Opportunity to syndicate your blogs for widespread consumer exposurebull Find An Advisor Profile (CFPs only) for lead generationbull National media requests for credibility brand-building amp SEO benefits
For those going it alone we recommend allocating at least $1000 for marketing
When launching a new firm one of the greatest marketing expenses and most important will be the cost of website design Typically a basic website can be had for about $3000 Bids for website design can vary dramatically so it may be worthwhile to shop around Securing your domain name and web hosting is a nominal fee through sites like GoDaddycom Basic packages start at $36
Q What was the single expense most critical toyour success
A There were actually two The first was paying a compliance expert to help me register with the state and draft ADV and client agreements This was important because the entire process was done in under three weeks (not typical) The second was my website I spent $1200 to create something that looked vastly different than the typical advisor website and that helped get me noticed as bringing something new to the table that first year
-Eric Roberge Beyond Your Hammock
Office EquipmentExpenses
One of the benefits to launching your own firm is the possibility of keeping office expenses relatively low Working from home is free and comes with tax benefits There is no need to budget for an office lease
The cost of office supplies is minimal in the digital age wersquove included just $10 per month in our sample budget for this expense You likely already have internet access at home but this is a business expense nonetheless On average internet plans cost about $40 per month
Our sample budget includes a computer for $500 and a printerscanner for $50 These costs are averages a thrifty shopper can spend significantly less Of course if you already have this equipment you can allocate these funds elsewhere in your budget
Q What was the single expense most critical to your success
A Committing to a year of XYPN If it wasnrsquot for the community and resources I donrsquot think that I would have made it
-Scott Frank Stone Steps Financial
Software
Software can easily become one of your greatest start-up expenses The tech team at XY Planning has carefully assembled a robust tech stack to provide planners with everything they need to run a successful firm If purchasing these tools a la carte expect to spend about $100month on your compliance management system Similarly you should budget $75-$100 per month for financial planning software if going it alone
Several more tools are provided free to XYPN members as a member benefit such as social media archiving which typically costs $39month Yoursquoll also get your client relationship management software (CRM) which would otherwise cost $35month XYPN can also save you $30month for website archiving Additionally you can save half on data gathering software as an XYPN member
XYPN members can skip the monthly fee for payment processor AdvicePayand pay reduced rates for credit card and ACH transactions on the platform Non-members can expect to pay $50month for AdvicePay Transaction fees also apply
Finally plan for about $13month for basic accounting software
Interested in joining our member community Welcome Irsquom here to answer your questions
-Stacey Unruh XYPN Director of Membership
Email Stacey Schedule a Call with Stacey
Organizational Fees
There are a number of organizational fees you will want to budget for in your first year If you choose to join XY Planning Network yoursquoll pay $409month That will save you on the upfront charges yoursquoll pay for your NAPFA membership which total $900 If yoursquore a CFPreg be sure to add $325 to your budget for your CFPreg Certification Renewal
You may notice in the following case studies that some members didnrsquot pay their XYPN membership dues for all 12 months Why is that They received a 2-month credit for each new member they referred to the network Through our referral program members are rewarded for sharing the movement
For a look at all of our cost-saving benefits get our Member Benefits Directory httpinfoxyplanningnetworkcommember-benefits-directory
Q What was the single expense most critical to your success
A Honestly it was becoming a member of XYPN Knowing that I wasnrsquot alone in the process and struggle of launching was priceless The knowledge base inherent in the team and other members is invaluable It would have taken a lot of time to personally vet different technology vendors or figure out some of the process on my own Add on top of that the discounts available for key components of the business and access to platforms such as TD Ameritrade Institutional and itrsquos tough to beat The freedom within the network to plug-in and plug-out of components is truly unique
-Jennifer Harper Bridge Financial Planning
Living Expenses
Depending on your situation you probably want to consider basic living expenses when calculating your start-up costs Many new firm owners rely on outside income personal savings or their spousersquos salary to get by in their first year We focus on business expenses in our sample template but it may be helpful to get the big picture of how much cash yoursquoll need to have on hand as you build your firm Itrsquos a good exercise to consider your everyday expenses when starting a new entrepreneurial venture
Of particular interest are expenses covered by your current employer such as health care cell phone or company car If you are losing benefits by leaving a job you will want to consider your new out-of-pocket expenses
Although personal debt is not necessarily a deal-breaker for entrepreneurship you may increase your comfort level in your first year by taking some time to pay down debt and increase your discretionary funds
Other considerations include housing and utility costs childcare food and entertainment for starters Donrsquot forget those recurring monthly expenses that add up such as a health club membership hair and beauty appointments and housekeeping or lawn care For some those trips to the store to stock up on essentials like shampoo and toilet paper inevitably end up costing hundreds of dollars each month When considering a major life change be honest with yourself about how much your lifestyle truly costs
And finally practice what you preach and budget for your
emergency fund and savings
The business expenses themselves werenrsquot a surprise but in addition to building a business budget I would have been more explicit with my own personal budget needs Irsquom in a very supportive relationship and we are fortunate to have had the flexibility to allow for a financial step-down to start a company but personally it was tough to feel financially dependent for the first time in 20 years In addition to your business budget be aware of what your personal draw looks like until yoursquove got revenue
-Jennifer Harper Bridge Financial Planning
Case StudyBeyond Your Hammock
Eric Roberge CFPreg is the founder of Beyond Your Hammock where he helps people in their 30s and 40s turn their income into financial freedom In 2016 InvestmentNews named Eric to their exclusive 40 Under 40 list Wealth Management Magazine called him one of the top 10 CFPs under 36 and Financial Advisor Magazine said he was one of the top 10 Young Advisors to Watch He has shared his innovative financial planning and money management techniques in the Wall Street Journal CNBC and USA Today and writes articles for Forbes The Huffington Post and MONEY Magazine
After looking at my first full year budget (2014) I honestly donrsquot think I could do much to improve it That thing was as tight as it could have been It had to be I had very little revenues and not much in savings I only spent $12k so I canrsquot say I did much overspending I canrsquot say I underspent either Any more spending would have put me in (more) debt
What expenses did I have that I didnrsquot anticipate Travel expenses to attend various conferences including the FPA NexGen Gathering and FinCon I didnrsquot really have the money but I squeezed out the least expensive trips I could Connecting with the industry to network and gain knowledge may not be an immediate return but it definitely helps down the road
The financial side of starting a business from scratch is a major stressor if you donrsquot have the funds Securing a side job will help reduce that stress but it may not go away Thatrsquos why you really have to focus on the mental and emotional impact of this journey Irsquom living proof that itrsquos not impossible but the last thing you want to do is ignore what your mind and body are telling you Focus on feeding your mind eat healthy and get enough sleep Your performance will count on it Also build communication and relationship skills and learn from others
Get to know your existing cash flow like the back of your hand Then run various revenue and business expense scenarios to get a feel for how things could go Have a plan for the worst case and then go out and create the best case
-Eric Roberge
Listen
How Eric spent in his first year
Episode 6 The Career of Eric Roberge - How He Built a Business to Support the Life of His
Dreams
Upfront Expenses Monthly Expenses
Business Setup
Capital Purchase $59
Surety Bond $150
Compliance Support $300
Category Total $509
Marketing
Website $1272
Misc $136 annual total
Google Apps $64 annual total
Golf $191 annual total
Meals $181 annual total
Domain Name and Web Hosting $122
Audible (3 months) $15 x3
Direct Mail $82 annual total
MailChimp (12 months) $10 x 12
Business GiftsSponsorship $215 annual total
Category Total $1394 $1034 Annual Total
Office EquipmentExpenses
Office Supplies $21 annual total
Parking varies from $4-$24 monthly $180 annual total
Commuting varies from $5-$20 monthly $35 annual total
Cleaning $12 annual total
Postage $16 annual total
BooksEducation $267 annual total
Category Total $531 Annual Total
Software
MoneyGuidePro (8 months) $66 (first month) $90 x 7
Less Annoying CRM (12 months) $10 x 12
PreciseFP $203
PaySimple Transaction Fees $69 annual total
Category Total $269 $819 Annual Total
Organizational Fees
XYPN Monthly Fee legacy rate 6 months $297 x 6
FinCon $578
FPA 10 months $35 x 10
FINRA $1190 annual total
CFPreg Certification Renewal $325
NextGen $256
Evol Business Institute $177
Mastermind Group $149
BNI $640
Networking amp Biz Dev $713 annual total
Travel $1167 annual total
Category Total $2125 $5202 Annual Total
Upfront Total Monthly Total
Total $4297 $63217
12-Month Total $11883
63217 is average monthly cost some costs were paid annually others were paid monthly
Case StudyBridge Financial Planning
Jennifer Harper of Bridge Financial Planning began working in the financial services industry in 2000 earned an MBA from the University of Tennessee at Chattanooga in 2001 and became a CFPreg in 2006 In 2005 she began developing a financial education non-profit organization Common Cents Financial Literacy Inc to help guide young people toward an independent and responsible financial future Additionally she is an adjunct Finance instructor at the University of Tennessee at Chattanooga
Looking back itrsquos clear that the saying lsquoyou donrsquot know what you donrsquot knowrsquo is SO true I tried to stay as streamlined as possible while putting more money toward scalability marketing and continuing education Those may have all been areas that I could have saved money on but I would have felt like I was sacrificing some of my vision
Having an online presence was something I initially underestimated Once I started looking at what was possible and how to build and leverage a mission brand and image I got it Some people are comfortable building their own (web)site but Irsquom glad I outsourced it Initially I went with a low cost provider to create a logo business card and letterhead The moment my website developer saw it he said it was terrible and had to go I was defensive at first but the more I listened to why it was so terrible and how it didnrsquot really coordinate with my message it was clear he was right He came up with a much better logo design and now I feel the branding and images are consistent from a design standpoint that I would have never understood before Lesson learned stick with what you know I donrsquot know design
Continuing education is another category I lsquocouldrsquo have spent less on but that mentality is opposite of my mission and vision and I feel strongly that it would be penny wise and pound foolish I have continued to gain knowledge and valuable connections through attending in-person continuing education conferences My first conference fee for NAPFA was generously donated by a NAPFA colleague and it solidified the heart and value of that network to me
Build a buffer into your plan Nothing ever goes exactly as planned There will always be something that comes up that wasnrsquot anticipated Yes I know yoursquore a financial planner but you know the saying ldquothe cobblerrsquos kids have no shoesrdquo
Once yoursquove decided to launch just launch Get going Donrsquot overthink things too much Nothingrsquos set in stone (other than to be a fee-only fiduciary) so therersquos opportunity to refine your business along the wayhellip Donrsquot worry about everything day one
-Jennifer Harper
Upfront Expenses Monthly Expenses
Business Setup
RIA Registration Fee $260
Business Liability Insurance partial year $500
Net Worth Bond Required in Tennessee $15000
Category Total $15760
Marketing
Website Design $2500
Domain Name and Web Hosting 12 months $22 x 12
Marketing Misc $1700
MealsEntertainment $197
Misc $177
Category Total $4574 $264 annual total
Office EquipmentExpenses
Office Supplies $75 x 12
Internet Access $100 x12
Computer $700
PrinterScanner $540
Office Lease partial year $270
BooksEducation $146
Category Total $1656 $2100 annual total
Software
Accounting $341
Financial Planning Software (Advizr or RightCapital) $3600
Document Management System $99
Scheduling Software $190
Encryption ServiceBackup Service $96
Boomerang ndash Productivityworkflow $150
Category Total $4476
Organizational Fees
XY Planning Network Monthly Fee 10 months $409 x 10
Website Link For NAPFAs Advisor Profile $221
CFPreg Certification Renewal $325
Conferences Travel etc $1852
Category Total $2398 $4090 annual total
Upfront Total Monthly Total
Total $28864 $53783
12-Month Total $35318
How Jennifer spent in her first year
Listen
Episode 54 Developing a Financial Literacy Program with Jennifer Harper
2 months of XYPN membership reduced makes the average $53783
Case StudyStone Steps Financial
Scott R Frank CFPreg CFA is the
founder of Stone Steps Financial a
firm created to help young
professionals and families
understand their financial lives and
position themselves to reach their
fullest potential He is highly
trained in the fields of financial
planning and investment
management having earned the
Certified Financial Planner (CFP)
designation as well as the
Chartered Financial Analyst (CFA)
charter in addition to years of
experience at nationally
recognized firms He lives in a little
beach town Cardiff by the Sea
just north of San Diego When hersquos
not geeking out on financial news
or white papers yoursquoll find him
surfing with friends (Stone Steps is
named for a surf break just a few
minutes north of his house)
running along the Pacific Coast
Highway or spending time with his
family
I started my firm with best-in-class software and hardware I didnrsquot want to upgrade down the road I paid for systems that have capacity compared to my needs so I donrsquot have to switch while I am growing my firm I may have waited for performance reporting Orion was a huge expense for a start-up Coming from an established RIA I thought everyone needed performance reporting
What expenses did I have that I didnrsquot anticipate Nothing but thatrsquos because I had a community of advisors who had already done it
Learn how to sell Sales typically has a negative connotation in the fee-only financial planning space Guess what If you canrsquot sell your services you canrsquot have a successful business and most importantly you cannot help those you wish to serve
Be authentic Donrsquot be someone you are not Your success will be determined by your perseverance determination and the financial resources you have to keep the lights on while you scale your business I would suggest you have at least 2 years of cash flow on the sideline to support your life while you start the business I am blessed with a supportive spouse who worked to keep the family fed and clothed while I grew Stone Steps If it wasnrsquot for her Stone Steps wouldnrsquot exist If you are married make sure your spouse is on board and be realistic with your growth assumptions
-Scott Frank
Listen
Episode 49 What it Takes to Start a Firm From Scratch with Scott Frank
Upfront Expenses Monthly ExpensesBusiness Setup
Business Formation $444
RIA Registration Fee $200
Initial Registration and Compliance Assistance $1000
Professional Liability (EampO) Insurance $660
Business Liability Insurance $500
Net Worth Bond Requirement California $12000Tax for LLC in California $800
Category Total $15604
Marketing
Website Design $4800
Domain Name and Web Hosting $110
Marketing Misc $960
Category Total $5870
Office EquipmentExpenses
Office Supplies $500
Computer $1480
PrinterScanner $300
Office Lease $550 x 12
Travel $1600Meal amp Entertainment $1600Category Total $5480 $6600 annual totalSoftware
Schedule Once $190
Windows 365 Last Pass MileIQ Spanning $182
Financial Planning Software eMoney $324 x 12
Orion $83333 x 12
Riskalyze $89 x 12
Google Apps Mailchimp Private Wifi $31 x 12
Category Total $372 $1532796 annual totalOrganizational Fees
XY Planning Network Monthly Fee $409
FPA Dues $399
CFA Dues $375
Website Link For NAPFAs Advisor Profile $210
CFPreg Certification Renewal $325
Category Total $1309 $409Upfront Total Monthly Total
Total $28635 $22363312-Month Total $5547096
How Scott spent in his first year
Sample Templates
Access our templates and customize a budget to meet your individual needs
Click Here ForFirst-Year Budget Templates
XYPlanningNetworkcom
Please note the information in this guide is presented as an estimate only and does not serve as an agreement between XY Planning Network and its members Member benefits and actual costs are subject to change
Business Set-Up
In this category there are a handful of fees to anticipate Expect to spend $100 on the fee for business formation (LLC filing fee) and $250 for your RIA Registration Fee Business liability insurance will likely set you back $400 annually
You will also need Professional Liability (EampO) Insurance This typically comes at a price tag of about $2000 upfront Through special arrangement XYPN members are able to pay for their EampO insurance monthly in installments of $90
Initial registration and compliance assistance are pain points for many new firm owners Compliance regulations can be confusing to navigate and no one wants to make a mistake in this area Expect to spend about $2800 upfront for outside help plus $210 for ongoing support Note XY Planning Network is able to offer initial registration for just $1000 to members through our in-house compliance department
Depending on your state you may be required to maintain a minimum net worth Although the required amounts vary by location we commonly see a range of $10000-$15000 based on services offered by your firm
ldquoI had to put $12000 in the bank in the great state of California You canrsquot start a firm for under $10K in Californiardquo
-Scott Frank Stone Steps Financial
Marketing
Marketing is an area of your budget that can vary greatly There is no shortage of ways to spend marketing dollars and expenses can add up quickly To defray costs for members XY Planning Network provides members with support to promote their firms Benefits include but are not limited to
bull A marketing coach with industry-specific expertisebull Opportunity to syndicate your blogs for widespread consumer exposurebull Find An Advisor Profile (CFPs only) for lead generationbull National media requests for credibility brand-building amp SEO benefits
For those going it alone we recommend allocating at least $1000 for marketing
When launching a new firm one of the greatest marketing expenses and most important will be the cost of website design Typically a basic website can be had for about $3000 Bids for website design can vary dramatically so it may be worthwhile to shop around Securing your domain name and web hosting is a nominal fee through sites like GoDaddycom Basic packages start at $36
Q What was the single expense most critical toyour success
A There were actually two The first was paying a compliance expert to help me register with the state and draft ADV and client agreements This was important because the entire process was done in under three weeks (not typical) The second was my website I spent $1200 to create something that looked vastly different than the typical advisor website and that helped get me noticed as bringing something new to the table that first year
-Eric Roberge Beyond Your Hammock
Office EquipmentExpenses
One of the benefits to launching your own firm is the possibility of keeping office expenses relatively low Working from home is free and comes with tax benefits There is no need to budget for an office lease
The cost of office supplies is minimal in the digital age wersquove included just $10 per month in our sample budget for this expense You likely already have internet access at home but this is a business expense nonetheless On average internet plans cost about $40 per month
Our sample budget includes a computer for $500 and a printerscanner for $50 These costs are averages a thrifty shopper can spend significantly less Of course if you already have this equipment you can allocate these funds elsewhere in your budget
Q What was the single expense most critical to your success
A Committing to a year of XYPN If it wasnrsquot for the community and resources I donrsquot think that I would have made it
-Scott Frank Stone Steps Financial
Software
Software can easily become one of your greatest start-up expenses The tech team at XY Planning has carefully assembled a robust tech stack to provide planners with everything they need to run a successful firm If purchasing these tools a la carte expect to spend about $100month on your compliance management system Similarly you should budget $75-$100 per month for financial planning software if going it alone
Several more tools are provided free to XYPN members as a member benefit such as social media archiving which typically costs $39month Yoursquoll also get your client relationship management software (CRM) which would otherwise cost $35month XYPN can also save you $30month for website archiving Additionally you can save half on data gathering software as an XYPN member
XYPN members can skip the monthly fee for payment processor AdvicePayand pay reduced rates for credit card and ACH transactions on the platform Non-members can expect to pay $50month for AdvicePay Transaction fees also apply
Finally plan for about $13month for basic accounting software
Interested in joining our member community Welcome Irsquom here to answer your questions
-Stacey Unruh XYPN Director of Membership
Email Stacey Schedule a Call with Stacey
Organizational Fees
There are a number of organizational fees you will want to budget for in your first year If you choose to join XY Planning Network yoursquoll pay $409month That will save you on the upfront charges yoursquoll pay for your NAPFA membership which total $900 If yoursquore a CFPreg be sure to add $325 to your budget for your CFPreg Certification Renewal
You may notice in the following case studies that some members didnrsquot pay their XYPN membership dues for all 12 months Why is that They received a 2-month credit for each new member they referred to the network Through our referral program members are rewarded for sharing the movement
For a look at all of our cost-saving benefits get our Member Benefits Directory httpinfoxyplanningnetworkcommember-benefits-directory
Q What was the single expense most critical to your success
A Honestly it was becoming a member of XYPN Knowing that I wasnrsquot alone in the process and struggle of launching was priceless The knowledge base inherent in the team and other members is invaluable It would have taken a lot of time to personally vet different technology vendors or figure out some of the process on my own Add on top of that the discounts available for key components of the business and access to platforms such as TD Ameritrade Institutional and itrsquos tough to beat The freedom within the network to plug-in and plug-out of components is truly unique
-Jennifer Harper Bridge Financial Planning
Living Expenses
Depending on your situation you probably want to consider basic living expenses when calculating your start-up costs Many new firm owners rely on outside income personal savings or their spousersquos salary to get by in their first year We focus on business expenses in our sample template but it may be helpful to get the big picture of how much cash yoursquoll need to have on hand as you build your firm Itrsquos a good exercise to consider your everyday expenses when starting a new entrepreneurial venture
Of particular interest are expenses covered by your current employer such as health care cell phone or company car If you are losing benefits by leaving a job you will want to consider your new out-of-pocket expenses
Although personal debt is not necessarily a deal-breaker for entrepreneurship you may increase your comfort level in your first year by taking some time to pay down debt and increase your discretionary funds
Other considerations include housing and utility costs childcare food and entertainment for starters Donrsquot forget those recurring monthly expenses that add up such as a health club membership hair and beauty appointments and housekeeping or lawn care For some those trips to the store to stock up on essentials like shampoo and toilet paper inevitably end up costing hundreds of dollars each month When considering a major life change be honest with yourself about how much your lifestyle truly costs
And finally practice what you preach and budget for your
emergency fund and savings
The business expenses themselves werenrsquot a surprise but in addition to building a business budget I would have been more explicit with my own personal budget needs Irsquom in a very supportive relationship and we are fortunate to have had the flexibility to allow for a financial step-down to start a company but personally it was tough to feel financially dependent for the first time in 20 years In addition to your business budget be aware of what your personal draw looks like until yoursquove got revenue
-Jennifer Harper Bridge Financial Planning
Case StudyBeyond Your Hammock
Eric Roberge CFPreg is the founder of Beyond Your Hammock where he helps people in their 30s and 40s turn their income into financial freedom In 2016 InvestmentNews named Eric to their exclusive 40 Under 40 list Wealth Management Magazine called him one of the top 10 CFPs under 36 and Financial Advisor Magazine said he was one of the top 10 Young Advisors to Watch He has shared his innovative financial planning and money management techniques in the Wall Street Journal CNBC and USA Today and writes articles for Forbes The Huffington Post and MONEY Magazine
After looking at my first full year budget (2014) I honestly donrsquot think I could do much to improve it That thing was as tight as it could have been It had to be I had very little revenues and not much in savings I only spent $12k so I canrsquot say I did much overspending I canrsquot say I underspent either Any more spending would have put me in (more) debt
What expenses did I have that I didnrsquot anticipate Travel expenses to attend various conferences including the FPA NexGen Gathering and FinCon I didnrsquot really have the money but I squeezed out the least expensive trips I could Connecting with the industry to network and gain knowledge may not be an immediate return but it definitely helps down the road
The financial side of starting a business from scratch is a major stressor if you donrsquot have the funds Securing a side job will help reduce that stress but it may not go away Thatrsquos why you really have to focus on the mental and emotional impact of this journey Irsquom living proof that itrsquos not impossible but the last thing you want to do is ignore what your mind and body are telling you Focus on feeding your mind eat healthy and get enough sleep Your performance will count on it Also build communication and relationship skills and learn from others
Get to know your existing cash flow like the back of your hand Then run various revenue and business expense scenarios to get a feel for how things could go Have a plan for the worst case and then go out and create the best case
-Eric Roberge
Listen
How Eric spent in his first year
Episode 6 The Career of Eric Roberge - How He Built a Business to Support the Life of His
Dreams
Upfront Expenses Monthly Expenses
Business Setup
Capital Purchase $59
Surety Bond $150
Compliance Support $300
Category Total $509
Marketing
Website $1272
Misc $136 annual total
Google Apps $64 annual total
Golf $191 annual total
Meals $181 annual total
Domain Name and Web Hosting $122
Audible (3 months) $15 x3
Direct Mail $82 annual total
MailChimp (12 months) $10 x 12
Business GiftsSponsorship $215 annual total
Category Total $1394 $1034 Annual Total
Office EquipmentExpenses
Office Supplies $21 annual total
Parking varies from $4-$24 monthly $180 annual total
Commuting varies from $5-$20 monthly $35 annual total
Cleaning $12 annual total
Postage $16 annual total
BooksEducation $267 annual total
Category Total $531 Annual Total
Software
MoneyGuidePro (8 months) $66 (first month) $90 x 7
Less Annoying CRM (12 months) $10 x 12
PreciseFP $203
PaySimple Transaction Fees $69 annual total
Category Total $269 $819 Annual Total
Organizational Fees
XYPN Monthly Fee legacy rate 6 months $297 x 6
FinCon $578
FPA 10 months $35 x 10
FINRA $1190 annual total
CFPreg Certification Renewal $325
NextGen $256
Evol Business Institute $177
Mastermind Group $149
BNI $640
Networking amp Biz Dev $713 annual total
Travel $1167 annual total
Category Total $2125 $5202 Annual Total
Upfront Total Monthly Total
Total $4297 $63217
12-Month Total $11883
63217 is average monthly cost some costs were paid annually others were paid monthly
Case StudyBridge Financial Planning
Jennifer Harper of Bridge Financial Planning began working in the financial services industry in 2000 earned an MBA from the University of Tennessee at Chattanooga in 2001 and became a CFPreg in 2006 In 2005 she began developing a financial education non-profit organization Common Cents Financial Literacy Inc to help guide young people toward an independent and responsible financial future Additionally she is an adjunct Finance instructor at the University of Tennessee at Chattanooga
Looking back itrsquos clear that the saying lsquoyou donrsquot know what you donrsquot knowrsquo is SO true I tried to stay as streamlined as possible while putting more money toward scalability marketing and continuing education Those may have all been areas that I could have saved money on but I would have felt like I was sacrificing some of my vision
Having an online presence was something I initially underestimated Once I started looking at what was possible and how to build and leverage a mission brand and image I got it Some people are comfortable building their own (web)site but Irsquom glad I outsourced it Initially I went with a low cost provider to create a logo business card and letterhead The moment my website developer saw it he said it was terrible and had to go I was defensive at first but the more I listened to why it was so terrible and how it didnrsquot really coordinate with my message it was clear he was right He came up with a much better logo design and now I feel the branding and images are consistent from a design standpoint that I would have never understood before Lesson learned stick with what you know I donrsquot know design
Continuing education is another category I lsquocouldrsquo have spent less on but that mentality is opposite of my mission and vision and I feel strongly that it would be penny wise and pound foolish I have continued to gain knowledge and valuable connections through attending in-person continuing education conferences My first conference fee for NAPFA was generously donated by a NAPFA colleague and it solidified the heart and value of that network to me
Build a buffer into your plan Nothing ever goes exactly as planned There will always be something that comes up that wasnrsquot anticipated Yes I know yoursquore a financial planner but you know the saying ldquothe cobblerrsquos kids have no shoesrdquo
Once yoursquove decided to launch just launch Get going Donrsquot overthink things too much Nothingrsquos set in stone (other than to be a fee-only fiduciary) so therersquos opportunity to refine your business along the wayhellip Donrsquot worry about everything day one
-Jennifer Harper
Upfront Expenses Monthly Expenses
Business Setup
RIA Registration Fee $260
Business Liability Insurance partial year $500
Net Worth Bond Required in Tennessee $15000
Category Total $15760
Marketing
Website Design $2500
Domain Name and Web Hosting 12 months $22 x 12
Marketing Misc $1700
MealsEntertainment $197
Misc $177
Category Total $4574 $264 annual total
Office EquipmentExpenses
Office Supplies $75 x 12
Internet Access $100 x12
Computer $700
PrinterScanner $540
Office Lease partial year $270
BooksEducation $146
Category Total $1656 $2100 annual total
Software
Accounting $341
Financial Planning Software (Advizr or RightCapital) $3600
Document Management System $99
Scheduling Software $190
Encryption ServiceBackup Service $96
Boomerang ndash Productivityworkflow $150
Category Total $4476
Organizational Fees
XY Planning Network Monthly Fee 10 months $409 x 10
Website Link For NAPFAs Advisor Profile $221
CFPreg Certification Renewal $325
Conferences Travel etc $1852
Category Total $2398 $4090 annual total
Upfront Total Monthly Total
Total $28864 $53783
12-Month Total $35318
How Jennifer spent in her first year
Listen
Episode 54 Developing a Financial Literacy Program with Jennifer Harper
2 months of XYPN membership reduced makes the average $53783
Case StudyStone Steps Financial
Scott R Frank CFPreg CFA is the
founder of Stone Steps Financial a
firm created to help young
professionals and families
understand their financial lives and
position themselves to reach their
fullest potential He is highly
trained in the fields of financial
planning and investment
management having earned the
Certified Financial Planner (CFP)
designation as well as the
Chartered Financial Analyst (CFA)
charter in addition to years of
experience at nationally
recognized firms He lives in a little
beach town Cardiff by the Sea
just north of San Diego When hersquos
not geeking out on financial news
or white papers yoursquoll find him
surfing with friends (Stone Steps is
named for a surf break just a few
minutes north of his house)
running along the Pacific Coast
Highway or spending time with his
family
I started my firm with best-in-class software and hardware I didnrsquot want to upgrade down the road I paid for systems that have capacity compared to my needs so I donrsquot have to switch while I am growing my firm I may have waited for performance reporting Orion was a huge expense for a start-up Coming from an established RIA I thought everyone needed performance reporting
What expenses did I have that I didnrsquot anticipate Nothing but thatrsquos because I had a community of advisors who had already done it
Learn how to sell Sales typically has a negative connotation in the fee-only financial planning space Guess what If you canrsquot sell your services you canrsquot have a successful business and most importantly you cannot help those you wish to serve
Be authentic Donrsquot be someone you are not Your success will be determined by your perseverance determination and the financial resources you have to keep the lights on while you scale your business I would suggest you have at least 2 years of cash flow on the sideline to support your life while you start the business I am blessed with a supportive spouse who worked to keep the family fed and clothed while I grew Stone Steps If it wasnrsquot for her Stone Steps wouldnrsquot exist If you are married make sure your spouse is on board and be realistic with your growth assumptions
-Scott Frank
Listen
Episode 49 What it Takes to Start a Firm From Scratch with Scott Frank
Upfront Expenses Monthly ExpensesBusiness Setup
Business Formation $444
RIA Registration Fee $200
Initial Registration and Compliance Assistance $1000
Professional Liability (EampO) Insurance $660
Business Liability Insurance $500
Net Worth Bond Requirement California $12000Tax for LLC in California $800
Category Total $15604
Marketing
Website Design $4800
Domain Name and Web Hosting $110
Marketing Misc $960
Category Total $5870
Office EquipmentExpenses
Office Supplies $500
Computer $1480
PrinterScanner $300
Office Lease $550 x 12
Travel $1600Meal amp Entertainment $1600Category Total $5480 $6600 annual totalSoftware
Schedule Once $190
Windows 365 Last Pass MileIQ Spanning $182
Financial Planning Software eMoney $324 x 12
Orion $83333 x 12
Riskalyze $89 x 12
Google Apps Mailchimp Private Wifi $31 x 12
Category Total $372 $1532796 annual totalOrganizational Fees
XY Planning Network Monthly Fee $409
FPA Dues $399
CFA Dues $375
Website Link For NAPFAs Advisor Profile $210
CFPreg Certification Renewal $325
Category Total $1309 $409Upfront Total Monthly Total
Total $28635 $22363312-Month Total $5547096
How Scott spent in his first year
Sample Templates
Access our templates and customize a budget to meet your individual needs
Click Here ForFirst-Year Budget Templates
XYPlanningNetworkcom
Please note the information in this guide is presented as an estimate only and does not serve as an agreement between XY Planning Network and its members Member benefits and actual costs are subject to change
Marketing
Marketing is an area of your budget that can vary greatly There is no shortage of ways to spend marketing dollars and expenses can add up quickly To defray costs for members XY Planning Network provides members with support to promote their firms Benefits include but are not limited to
bull A marketing coach with industry-specific expertisebull Opportunity to syndicate your blogs for widespread consumer exposurebull Find An Advisor Profile (CFPs only) for lead generationbull National media requests for credibility brand-building amp SEO benefits
For those going it alone we recommend allocating at least $1000 for marketing
When launching a new firm one of the greatest marketing expenses and most important will be the cost of website design Typically a basic website can be had for about $3000 Bids for website design can vary dramatically so it may be worthwhile to shop around Securing your domain name and web hosting is a nominal fee through sites like GoDaddycom Basic packages start at $36
Q What was the single expense most critical toyour success
A There were actually two The first was paying a compliance expert to help me register with the state and draft ADV and client agreements This was important because the entire process was done in under three weeks (not typical) The second was my website I spent $1200 to create something that looked vastly different than the typical advisor website and that helped get me noticed as bringing something new to the table that first year
-Eric Roberge Beyond Your Hammock
Office EquipmentExpenses
One of the benefits to launching your own firm is the possibility of keeping office expenses relatively low Working from home is free and comes with tax benefits There is no need to budget for an office lease
The cost of office supplies is minimal in the digital age wersquove included just $10 per month in our sample budget for this expense You likely already have internet access at home but this is a business expense nonetheless On average internet plans cost about $40 per month
Our sample budget includes a computer for $500 and a printerscanner for $50 These costs are averages a thrifty shopper can spend significantly less Of course if you already have this equipment you can allocate these funds elsewhere in your budget
Q What was the single expense most critical to your success
A Committing to a year of XYPN If it wasnrsquot for the community and resources I donrsquot think that I would have made it
-Scott Frank Stone Steps Financial
Software
Software can easily become one of your greatest start-up expenses The tech team at XY Planning has carefully assembled a robust tech stack to provide planners with everything they need to run a successful firm If purchasing these tools a la carte expect to spend about $100month on your compliance management system Similarly you should budget $75-$100 per month for financial planning software if going it alone
Several more tools are provided free to XYPN members as a member benefit such as social media archiving which typically costs $39month Yoursquoll also get your client relationship management software (CRM) which would otherwise cost $35month XYPN can also save you $30month for website archiving Additionally you can save half on data gathering software as an XYPN member
XYPN members can skip the monthly fee for payment processor AdvicePayand pay reduced rates for credit card and ACH transactions on the platform Non-members can expect to pay $50month for AdvicePay Transaction fees also apply
Finally plan for about $13month for basic accounting software
Interested in joining our member community Welcome Irsquom here to answer your questions
-Stacey Unruh XYPN Director of Membership
Email Stacey Schedule a Call with Stacey
Organizational Fees
There are a number of organizational fees you will want to budget for in your first year If you choose to join XY Planning Network yoursquoll pay $409month That will save you on the upfront charges yoursquoll pay for your NAPFA membership which total $900 If yoursquore a CFPreg be sure to add $325 to your budget for your CFPreg Certification Renewal
You may notice in the following case studies that some members didnrsquot pay their XYPN membership dues for all 12 months Why is that They received a 2-month credit for each new member they referred to the network Through our referral program members are rewarded for sharing the movement
For a look at all of our cost-saving benefits get our Member Benefits Directory httpinfoxyplanningnetworkcommember-benefits-directory
Q What was the single expense most critical to your success
A Honestly it was becoming a member of XYPN Knowing that I wasnrsquot alone in the process and struggle of launching was priceless The knowledge base inherent in the team and other members is invaluable It would have taken a lot of time to personally vet different technology vendors or figure out some of the process on my own Add on top of that the discounts available for key components of the business and access to platforms such as TD Ameritrade Institutional and itrsquos tough to beat The freedom within the network to plug-in and plug-out of components is truly unique
-Jennifer Harper Bridge Financial Planning
Living Expenses
Depending on your situation you probably want to consider basic living expenses when calculating your start-up costs Many new firm owners rely on outside income personal savings or their spousersquos salary to get by in their first year We focus on business expenses in our sample template but it may be helpful to get the big picture of how much cash yoursquoll need to have on hand as you build your firm Itrsquos a good exercise to consider your everyday expenses when starting a new entrepreneurial venture
Of particular interest are expenses covered by your current employer such as health care cell phone or company car If you are losing benefits by leaving a job you will want to consider your new out-of-pocket expenses
Although personal debt is not necessarily a deal-breaker for entrepreneurship you may increase your comfort level in your first year by taking some time to pay down debt and increase your discretionary funds
Other considerations include housing and utility costs childcare food and entertainment for starters Donrsquot forget those recurring monthly expenses that add up such as a health club membership hair and beauty appointments and housekeeping or lawn care For some those trips to the store to stock up on essentials like shampoo and toilet paper inevitably end up costing hundreds of dollars each month When considering a major life change be honest with yourself about how much your lifestyle truly costs
And finally practice what you preach and budget for your
emergency fund and savings
The business expenses themselves werenrsquot a surprise but in addition to building a business budget I would have been more explicit with my own personal budget needs Irsquom in a very supportive relationship and we are fortunate to have had the flexibility to allow for a financial step-down to start a company but personally it was tough to feel financially dependent for the first time in 20 years In addition to your business budget be aware of what your personal draw looks like until yoursquove got revenue
-Jennifer Harper Bridge Financial Planning
Case StudyBeyond Your Hammock
Eric Roberge CFPreg is the founder of Beyond Your Hammock where he helps people in their 30s and 40s turn their income into financial freedom In 2016 InvestmentNews named Eric to their exclusive 40 Under 40 list Wealth Management Magazine called him one of the top 10 CFPs under 36 and Financial Advisor Magazine said he was one of the top 10 Young Advisors to Watch He has shared his innovative financial planning and money management techniques in the Wall Street Journal CNBC and USA Today and writes articles for Forbes The Huffington Post and MONEY Magazine
After looking at my first full year budget (2014) I honestly donrsquot think I could do much to improve it That thing was as tight as it could have been It had to be I had very little revenues and not much in savings I only spent $12k so I canrsquot say I did much overspending I canrsquot say I underspent either Any more spending would have put me in (more) debt
What expenses did I have that I didnrsquot anticipate Travel expenses to attend various conferences including the FPA NexGen Gathering and FinCon I didnrsquot really have the money but I squeezed out the least expensive trips I could Connecting with the industry to network and gain knowledge may not be an immediate return but it definitely helps down the road
The financial side of starting a business from scratch is a major stressor if you donrsquot have the funds Securing a side job will help reduce that stress but it may not go away Thatrsquos why you really have to focus on the mental and emotional impact of this journey Irsquom living proof that itrsquos not impossible but the last thing you want to do is ignore what your mind and body are telling you Focus on feeding your mind eat healthy and get enough sleep Your performance will count on it Also build communication and relationship skills and learn from others
Get to know your existing cash flow like the back of your hand Then run various revenue and business expense scenarios to get a feel for how things could go Have a plan for the worst case and then go out and create the best case
-Eric Roberge
Listen
How Eric spent in his first year
Episode 6 The Career of Eric Roberge - How He Built a Business to Support the Life of His
Dreams
Upfront Expenses Monthly Expenses
Business Setup
Capital Purchase $59
Surety Bond $150
Compliance Support $300
Category Total $509
Marketing
Website $1272
Misc $136 annual total
Google Apps $64 annual total
Golf $191 annual total
Meals $181 annual total
Domain Name and Web Hosting $122
Audible (3 months) $15 x3
Direct Mail $82 annual total
MailChimp (12 months) $10 x 12
Business GiftsSponsorship $215 annual total
Category Total $1394 $1034 Annual Total
Office EquipmentExpenses
Office Supplies $21 annual total
Parking varies from $4-$24 monthly $180 annual total
Commuting varies from $5-$20 monthly $35 annual total
Cleaning $12 annual total
Postage $16 annual total
BooksEducation $267 annual total
Category Total $531 Annual Total
Software
MoneyGuidePro (8 months) $66 (first month) $90 x 7
Less Annoying CRM (12 months) $10 x 12
PreciseFP $203
PaySimple Transaction Fees $69 annual total
Category Total $269 $819 Annual Total
Organizational Fees
XYPN Monthly Fee legacy rate 6 months $297 x 6
FinCon $578
FPA 10 months $35 x 10
FINRA $1190 annual total
CFPreg Certification Renewal $325
NextGen $256
Evol Business Institute $177
Mastermind Group $149
BNI $640
Networking amp Biz Dev $713 annual total
Travel $1167 annual total
Category Total $2125 $5202 Annual Total
Upfront Total Monthly Total
Total $4297 $63217
12-Month Total $11883
63217 is average monthly cost some costs were paid annually others were paid monthly
Case StudyBridge Financial Planning
Jennifer Harper of Bridge Financial Planning began working in the financial services industry in 2000 earned an MBA from the University of Tennessee at Chattanooga in 2001 and became a CFPreg in 2006 In 2005 she began developing a financial education non-profit organization Common Cents Financial Literacy Inc to help guide young people toward an independent and responsible financial future Additionally she is an adjunct Finance instructor at the University of Tennessee at Chattanooga
Looking back itrsquos clear that the saying lsquoyou donrsquot know what you donrsquot knowrsquo is SO true I tried to stay as streamlined as possible while putting more money toward scalability marketing and continuing education Those may have all been areas that I could have saved money on but I would have felt like I was sacrificing some of my vision
Having an online presence was something I initially underestimated Once I started looking at what was possible and how to build and leverage a mission brand and image I got it Some people are comfortable building their own (web)site but Irsquom glad I outsourced it Initially I went with a low cost provider to create a logo business card and letterhead The moment my website developer saw it he said it was terrible and had to go I was defensive at first but the more I listened to why it was so terrible and how it didnrsquot really coordinate with my message it was clear he was right He came up with a much better logo design and now I feel the branding and images are consistent from a design standpoint that I would have never understood before Lesson learned stick with what you know I donrsquot know design
Continuing education is another category I lsquocouldrsquo have spent less on but that mentality is opposite of my mission and vision and I feel strongly that it would be penny wise and pound foolish I have continued to gain knowledge and valuable connections through attending in-person continuing education conferences My first conference fee for NAPFA was generously donated by a NAPFA colleague and it solidified the heart and value of that network to me
Build a buffer into your plan Nothing ever goes exactly as planned There will always be something that comes up that wasnrsquot anticipated Yes I know yoursquore a financial planner but you know the saying ldquothe cobblerrsquos kids have no shoesrdquo
Once yoursquove decided to launch just launch Get going Donrsquot overthink things too much Nothingrsquos set in stone (other than to be a fee-only fiduciary) so therersquos opportunity to refine your business along the wayhellip Donrsquot worry about everything day one
-Jennifer Harper
Upfront Expenses Monthly Expenses
Business Setup
RIA Registration Fee $260
Business Liability Insurance partial year $500
Net Worth Bond Required in Tennessee $15000
Category Total $15760
Marketing
Website Design $2500
Domain Name and Web Hosting 12 months $22 x 12
Marketing Misc $1700
MealsEntertainment $197
Misc $177
Category Total $4574 $264 annual total
Office EquipmentExpenses
Office Supplies $75 x 12
Internet Access $100 x12
Computer $700
PrinterScanner $540
Office Lease partial year $270
BooksEducation $146
Category Total $1656 $2100 annual total
Software
Accounting $341
Financial Planning Software (Advizr or RightCapital) $3600
Document Management System $99
Scheduling Software $190
Encryption ServiceBackup Service $96
Boomerang ndash Productivityworkflow $150
Category Total $4476
Organizational Fees
XY Planning Network Monthly Fee 10 months $409 x 10
Website Link For NAPFAs Advisor Profile $221
CFPreg Certification Renewal $325
Conferences Travel etc $1852
Category Total $2398 $4090 annual total
Upfront Total Monthly Total
Total $28864 $53783
12-Month Total $35318
How Jennifer spent in her first year
Listen
Episode 54 Developing a Financial Literacy Program with Jennifer Harper
2 months of XYPN membership reduced makes the average $53783
Case StudyStone Steps Financial
Scott R Frank CFPreg CFA is the
founder of Stone Steps Financial a
firm created to help young
professionals and families
understand their financial lives and
position themselves to reach their
fullest potential He is highly
trained in the fields of financial
planning and investment
management having earned the
Certified Financial Planner (CFP)
designation as well as the
Chartered Financial Analyst (CFA)
charter in addition to years of
experience at nationally
recognized firms He lives in a little
beach town Cardiff by the Sea
just north of San Diego When hersquos
not geeking out on financial news
or white papers yoursquoll find him
surfing with friends (Stone Steps is
named for a surf break just a few
minutes north of his house)
running along the Pacific Coast
Highway or spending time with his
family
I started my firm with best-in-class software and hardware I didnrsquot want to upgrade down the road I paid for systems that have capacity compared to my needs so I donrsquot have to switch while I am growing my firm I may have waited for performance reporting Orion was a huge expense for a start-up Coming from an established RIA I thought everyone needed performance reporting
What expenses did I have that I didnrsquot anticipate Nothing but thatrsquos because I had a community of advisors who had already done it
Learn how to sell Sales typically has a negative connotation in the fee-only financial planning space Guess what If you canrsquot sell your services you canrsquot have a successful business and most importantly you cannot help those you wish to serve
Be authentic Donrsquot be someone you are not Your success will be determined by your perseverance determination and the financial resources you have to keep the lights on while you scale your business I would suggest you have at least 2 years of cash flow on the sideline to support your life while you start the business I am blessed with a supportive spouse who worked to keep the family fed and clothed while I grew Stone Steps If it wasnrsquot for her Stone Steps wouldnrsquot exist If you are married make sure your spouse is on board and be realistic with your growth assumptions
-Scott Frank
Listen
Episode 49 What it Takes to Start a Firm From Scratch with Scott Frank
Upfront Expenses Monthly ExpensesBusiness Setup
Business Formation $444
RIA Registration Fee $200
Initial Registration and Compliance Assistance $1000
Professional Liability (EampO) Insurance $660
Business Liability Insurance $500
Net Worth Bond Requirement California $12000Tax for LLC in California $800
Category Total $15604
Marketing
Website Design $4800
Domain Name and Web Hosting $110
Marketing Misc $960
Category Total $5870
Office EquipmentExpenses
Office Supplies $500
Computer $1480
PrinterScanner $300
Office Lease $550 x 12
Travel $1600Meal amp Entertainment $1600Category Total $5480 $6600 annual totalSoftware
Schedule Once $190
Windows 365 Last Pass MileIQ Spanning $182
Financial Planning Software eMoney $324 x 12
Orion $83333 x 12
Riskalyze $89 x 12
Google Apps Mailchimp Private Wifi $31 x 12
Category Total $372 $1532796 annual totalOrganizational Fees
XY Planning Network Monthly Fee $409
FPA Dues $399
CFA Dues $375
Website Link For NAPFAs Advisor Profile $210
CFPreg Certification Renewal $325
Category Total $1309 $409Upfront Total Monthly Total
Total $28635 $22363312-Month Total $5547096
How Scott spent in his first year
Sample Templates
Access our templates and customize a budget to meet your individual needs
Click Here ForFirst-Year Budget Templates
XYPlanningNetworkcom
Please note the information in this guide is presented as an estimate only and does not serve as an agreement between XY Planning Network and its members Member benefits and actual costs are subject to change
Office EquipmentExpenses
One of the benefits to launching your own firm is the possibility of keeping office expenses relatively low Working from home is free and comes with tax benefits There is no need to budget for an office lease
The cost of office supplies is minimal in the digital age wersquove included just $10 per month in our sample budget for this expense You likely already have internet access at home but this is a business expense nonetheless On average internet plans cost about $40 per month
Our sample budget includes a computer for $500 and a printerscanner for $50 These costs are averages a thrifty shopper can spend significantly less Of course if you already have this equipment you can allocate these funds elsewhere in your budget
Q What was the single expense most critical to your success
A Committing to a year of XYPN If it wasnrsquot for the community and resources I donrsquot think that I would have made it
-Scott Frank Stone Steps Financial
Software
Software can easily become one of your greatest start-up expenses The tech team at XY Planning has carefully assembled a robust tech stack to provide planners with everything they need to run a successful firm If purchasing these tools a la carte expect to spend about $100month on your compliance management system Similarly you should budget $75-$100 per month for financial planning software if going it alone
Several more tools are provided free to XYPN members as a member benefit such as social media archiving which typically costs $39month Yoursquoll also get your client relationship management software (CRM) which would otherwise cost $35month XYPN can also save you $30month for website archiving Additionally you can save half on data gathering software as an XYPN member
XYPN members can skip the monthly fee for payment processor AdvicePayand pay reduced rates for credit card and ACH transactions on the platform Non-members can expect to pay $50month for AdvicePay Transaction fees also apply
Finally plan for about $13month for basic accounting software
Interested in joining our member community Welcome Irsquom here to answer your questions
-Stacey Unruh XYPN Director of Membership
Email Stacey Schedule a Call with Stacey
Organizational Fees
There are a number of organizational fees you will want to budget for in your first year If you choose to join XY Planning Network yoursquoll pay $409month That will save you on the upfront charges yoursquoll pay for your NAPFA membership which total $900 If yoursquore a CFPreg be sure to add $325 to your budget for your CFPreg Certification Renewal
You may notice in the following case studies that some members didnrsquot pay their XYPN membership dues for all 12 months Why is that They received a 2-month credit for each new member they referred to the network Through our referral program members are rewarded for sharing the movement
For a look at all of our cost-saving benefits get our Member Benefits Directory httpinfoxyplanningnetworkcommember-benefits-directory
Q What was the single expense most critical to your success
A Honestly it was becoming a member of XYPN Knowing that I wasnrsquot alone in the process and struggle of launching was priceless The knowledge base inherent in the team and other members is invaluable It would have taken a lot of time to personally vet different technology vendors or figure out some of the process on my own Add on top of that the discounts available for key components of the business and access to platforms such as TD Ameritrade Institutional and itrsquos tough to beat The freedom within the network to plug-in and plug-out of components is truly unique
-Jennifer Harper Bridge Financial Planning
Living Expenses
Depending on your situation you probably want to consider basic living expenses when calculating your start-up costs Many new firm owners rely on outside income personal savings or their spousersquos salary to get by in their first year We focus on business expenses in our sample template but it may be helpful to get the big picture of how much cash yoursquoll need to have on hand as you build your firm Itrsquos a good exercise to consider your everyday expenses when starting a new entrepreneurial venture
Of particular interest are expenses covered by your current employer such as health care cell phone or company car If you are losing benefits by leaving a job you will want to consider your new out-of-pocket expenses
Although personal debt is not necessarily a deal-breaker for entrepreneurship you may increase your comfort level in your first year by taking some time to pay down debt and increase your discretionary funds
Other considerations include housing and utility costs childcare food and entertainment for starters Donrsquot forget those recurring monthly expenses that add up such as a health club membership hair and beauty appointments and housekeeping or lawn care For some those trips to the store to stock up on essentials like shampoo and toilet paper inevitably end up costing hundreds of dollars each month When considering a major life change be honest with yourself about how much your lifestyle truly costs
And finally practice what you preach and budget for your
emergency fund and savings
The business expenses themselves werenrsquot a surprise but in addition to building a business budget I would have been more explicit with my own personal budget needs Irsquom in a very supportive relationship and we are fortunate to have had the flexibility to allow for a financial step-down to start a company but personally it was tough to feel financially dependent for the first time in 20 years In addition to your business budget be aware of what your personal draw looks like until yoursquove got revenue
-Jennifer Harper Bridge Financial Planning
Case StudyBeyond Your Hammock
Eric Roberge CFPreg is the founder of Beyond Your Hammock where he helps people in their 30s and 40s turn their income into financial freedom In 2016 InvestmentNews named Eric to their exclusive 40 Under 40 list Wealth Management Magazine called him one of the top 10 CFPs under 36 and Financial Advisor Magazine said he was one of the top 10 Young Advisors to Watch He has shared his innovative financial planning and money management techniques in the Wall Street Journal CNBC and USA Today and writes articles for Forbes The Huffington Post and MONEY Magazine
After looking at my first full year budget (2014) I honestly donrsquot think I could do much to improve it That thing was as tight as it could have been It had to be I had very little revenues and not much in savings I only spent $12k so I canrsquot say I did much overspending I canrsquot say I underspent either Any more spending would have put me in (more) debt
What expenses did I have that I didnrsquot anticipate Travel expenses to attend various conferences including the FPA NexGen Gathering and FinCon I didnrsquot really have the money but I squeezed out the least expensive trips I could Connecting with the industry to network and gain knowledge may not be an immediate return but it definitely helps down the road
The financial side of starting a business from scratch is a major stressor if you donrsquot have the funds Securing a side job will help reduce that stress but it may not go away Thatrsquos why you really have to focus on the mental and emotional impact of this journey Irsquom living proof that itrsquos not impossible but the last thing you want to do is ignore what your mind and body are telling you Focus on feeding your mind eat healthy and get enough sleep Your performance will count on it Also build communication and relationship skills and learn from others
Get to know your existing cash flow like the back of your hand Then run various revenue and business expense scenarios to get a feel for how things could go Have a plan for the worst case and then go out and create the best case
-Eric Roberge
Listen
How Eric spent in his first year
Episode 6 The Career of Eric Roberge - How He Built a Business to Support the Life of His
Dreams
Upfront Expenses Monthly Expenses
Business Setup
Capital Purchase $59
Surety Bond $150
Compliance Support $300
Category Total $509
Marketing
Website $1272
Misc $136 annual total
Google Apps $64 annual total
Golf $191 annual total
Meals $181 annual total
Domain Name and Web Hosting $122
Audible (3 months) $15 x3
Direct Mail $82 annual total
MailChimp (12 months) $10 x 12
Business GiftsSponsorship $215 annual total
Category Total $1394 $1034 Annual Total
Office EquipmentExpenses
Office Supplies $21 annual total
Parking varies from $4-$24 monthly $180 annual total
Commuting varies from $5-$20 monthly $35 annual total
Cleaning $12 annual total
Postage $16 annual total
BooksEducation $267 annual total
Category Total $531 Annual Total
Software
MoneyGuidePro (8 months) $66 (first month) $90 x 7
Less Annoying CRM (12 months) $10 x 12
PreciseFP $203
PaySimple Transaction Fees $69 annual total
Category Total $269 $819 Annual Total
Organizational Fees
XYPN Monthly Fee legacy rate 6 months $297 x 6
FinCon $578
FPA 10 months $35 x 10
FINRA $1190 annual total
CFPreg Certification Renewal $325
NextGen $256
Evol Business Institute $177
Mastermind Group $149
BNI $640
Networking amp Biz Dev $713 annual total
Travel $1167 annual total
Category Total $2125 $5202 Annual Total
Upfront Total Monthly Total
Total $4297 $63217
12-Month Total $11883
63217 is average monthly cost some costs were paid annually others were paid monthly
Case StudyBridge Financial Planning
Jennifer Harper of Bridge Financial Planning began working in the financial services industry in 2000 earned an MBA from the University of Tennessee at Chattanooga in 2001 and became a CFPreg in 2006 In 2005 she began developing a financial education non-profit organization Common Cents Financial Literacy Inc to help guide young people toward an independent and responsible financial future Additionally she is an adjunct Finance instructor at the University of Tennessee at Chattanooga
Looking back itrsquos clear that the saying lsquoyou donrsquot know what you donrsquot knowrsquo is SO true I tried to stay as streamlined as possible while putting more money toward scalability marketing and continuing education Those may have all been areas that I could have saved money on but I would have felt like I was sacrificing some of my vision
Having an online presence was something I initially underestimated Once I started looking at what was possible and how to build and leverage a mission brand and image I got it Some people are comfortable building their own (web)site but Irsquom glad I outsourced it Initially I went with a low cost provider to create a logo business card and letterhead The moment my website developer saw it he said it was terrible and had to go I was defensive at first but the more I listened to why it was so terrible and how it didnrsquot really coordinate with my message it was clear he was right He came up with a much better logo design and now I feel the branding and images are consistent from a design standpoint that I would have never understood before Lesson learned stick with what you know I donrsquot know design
Continuing education is another category I lsquocouldrsquo have spent less on but that mentality is opposite of my mission and vision and I feel strongly that it would be penny wise and pound foolish I have continued to gain knowledge and valuable connections through attending in-person continuing education conferences My first conference fee for NAPFA was generously donated by a NAPFA colleague and it solidified the heart and value of that network to me
Build a buffer into your plan Nothing ever goes exactly as planned There will always be something that comes up that wasnrsquot anticipated Yes I know yoursquore a financial planner but you know the saying ldquothe cobblerrsquos kids have no shoesrdquo
Once yoursquove decided to launch just launch Get going Donrsquot overthink things too much Nothingrsquos set in stone (other than to be a fee-only fiduciary) so therersquos opportunity to refine your business along the wayhellip Donrsquot worry about everything day one
-Jennifer Harper
Upfront Expenses Monthly Expenses
Business Setup
RIA Registration Fee $260
Business Liability Insurance partial year $500
Net Worth Bond Required in Tennessee $15000
Category Total $15760
Marketing
Website Design $2500
Domain Name and Web Hosting 12 months $22 x 12
Marketing Misc $1700
MealsEntertainment $197
Misc $177
Category Total $4574 $264 annual total
Office EquipmentExpenses
Office Supplies $75 x 12
Internet Access $100 x12
Computer $700
PrinterScanner $540
Office Lease partial year $270
BooksEducation $146
Category Total $1656 $2100 annual total
Software
Accounting $341
Financial Planning Software (Advizr or RightCapital) $3600
Document Management System $99
Scheduling Software $190
Encryption ServiceBackup Service $96
Boomerang ndash Productivityworkflow $150
Category Total $4476
Organizational Fees
XY Planning Network Monthly Fee 10 months $409 x 10
Website Link For NAPFAs Advisor Profile $221
CFPreg Certification Renewal $325
Conferences Travel etc $1852
Category Total $2398 $4090 annual total
Upfront Total Monthly Total
Total $28864 $53783
12-Month Total $35318
How Jennifer spent in her first year
Listen
Episode 54 Developing a Financial Literacy Program with Jennifer Harper
2 months of XYPN membership reduced makes the average $53783
Case StudyStone Steps Financial
Scott R Frank CFPreg CFA is the
founder of Stone Steps Financial a
firm created to help young
professionals and families
understand their financial lives and
position themselves to reach their
fullest potential He is highly
trained in the fields of financial
planning and investment
management having earned the
Certified Financial Planner (CFP)
designation as well as the
Chartered Financial Analyst (CFA)
charter in addition to years of
experience at nationally
recognized firms He lives in a little
beach town Cardiff by the Sea
just north of San Diego When hersquos
not geeking out on financial news
or white papers yoursquoll find him
surfing with friends (Stone Steps is
named for a surf break just a few
minutes north of his house)
running along the Pacific Coast
Highway or spending time with his
family
I started my firm with best-in-class software and hardware I didnrsquot want to upgrade down the road I paid for systems that have capacity compared to my needs so I donrsquot have to switch while I am growing my firm I may have waited for performance reporting Orion was a huge expense for a start-up Coming from an established RIA I thought everyone needed performance reporting
What expenses did I have that I didnrsquot anticipate Nothing but thatrsquos because I had a community of advisors who had already done it
Learn how to sell Sales typically has a negative connotation in the fee-only financial planning space Guess what If you canrsquot sell your services you canrsquot have a successful business and most importantly you cannot help those you wish to serve
Be authentic Donrsquot be someone you are not Your success will be determined by your perseverance determination and the financial resources you have to keep the lights on while you scale your business I would suggest you have at least 2 years of cash flow on the sideline to support your life while you start the business I am blessed with a supportive spouse who worked to keep the family fed and clothed while I grew Stone Steps If it wasnrsquot for her Stone Steps wouldnrsquot exist If you are married make sure your spouse is on board and be realistic with your growth assumptions
-Scott Frank
Listen
Episode 49 What it Takes to Start a Firm From Scratch with Scott Frank
Upfront Expenses Monthly ExpensesBusiness Setup
Business Formation $444
RIA Registration Fee $200
Initial Registration and Compliance Assistance $1000
Professional Liability (EampO) Insurance $660
Business Liability Insurance $500
Net Worth Bond Requirement California $12000Tax for LLC in California $800
Category Total $15604
Marketing
Website Design $4800
Domain Name and Web Hosting $110
Marketing Misc $960
Category Total $5870
Office EquipmentExpenses
Office Supplies $500
Computer $1480
PrinterScanner $300
Office Lease $550 x 12
Travel $1600Meal amp Entertainment $1600Category Total $5480 $6600 annual totalSoftware
Schedule Once $190
Windows 365 Last Pass MileIQ Spanning $182
Financial Planning Software eMoney $324 x 12
Orion $83333 x 12
Riskalyze $89 x 12
Google Apps Mailchimp Private Wifi $31 x 12
Category Total $372 $1532796 annual totalOrganizational Fees
XY Planning Network Monthly Fee $409
FPA Dues $399
CFA Dues $375
Website Link For NAPFAs Advisor Profile $210
CFPreg Certification Renewal $325
Category Total $1309 $409Upfront Total Monthly Total
Total $28635 $22363312-Month Total $5547096
How Scott spent in his first year
Sample Templates
Access our templates and customize a budget to meet your individual needs
Click Here ForFirst-Year Budget Templates
XYPlanningNetworkcom
Please note the information in this guide is presented as an estimate only and does not serve as an agreement between XY Planning Network and its members Member benefits and actual costs are subject to change
Software
Software can easily become one of your greatest start-up expenses The tech team at XY Planning has carefully assembled a robust tech stack to provide planners with everything they need to run a successful firm If purchasing these tools a la carte expect to spend about $100month on your compliance management system Similarly you should budget $75-$100 per month for financial planning software if going it alone
Several more tools are provided free to XYPN members as a member benefit such as social media archiving which typically costs $39month Yoursquoll also get your client relationship management software (CRM) which would otherwise cost $35month XYPN can also save you $30month for website archiving Additionally you can save half on data gathering software as an XYPN member
XYPN members can skip the monthly fee for payment processor AdvicePayand pay reduced rates for credit card and ACH transactions on the platform Non-members can expect to pay $50month for AdvicePay Transaction fees also apply
Finally plan for about $13month for basic accounting software
Interested in joining our member community Welcome Irsquom here to answer your questions
-Stacey Unruh XYPN Director of Membership
Email Stacey Schedule a Call with Stacey
Organizational Fees
There are a number of organizational fees you will want to budget for in your first year If you choose to join XY Planning Network yoursquoll pay $409month That will save you on the upfront charges yoursquoll pay for your NAPFA membership which total $900 If yoursquore a CFPreg be sure to add $325 to your budget for your CFPreg Certification Renewal
You may notice in the following case studies that some members didnrsquot pay their XYPN membership dues for all 12 months Why is that They received a 2-month credit for each new member they referred to the network Through our referral program members are rewarded for sharing the movement
For a look at all of our cost-saving benefits get our Member Benefits Directory httpinfoxyplanningnetworkcommember-benefits-directory
Q What was the single expense most critical to your success
A Honestly it was becoming a member of XYPN Knowing that I wasnrsquot alone in the process and struggle of launching was priceless The knowledge base inherent in the team and other members is invaluable It would have taken a lot of time to personally vet different technology vendors or figure out some of the process on my own Add on top of that the discounts available for key components of the business and access to platforms such as TD Ameritrade Institutional and itrsquos tough to beat The freedom within the network to plug-in and plug-out of components is truly unique
-Jennifer Harper Bridge Financial Planning
Living Expenses
Depending on your situation you probably want to consider basic living expenses when calculating your start-up costs Many new firm owners rely on outside income personal savings or their spousersquos salary to get by in their first year We focus on business expenses in our sample template but it may be helpful to get the big picture of how much cash yoursquoll need to have on hand as you build your firm Itrsquos a good exercise to consider your everyday expenses when starting a new entrepreneurial venture
Of particular interest are expenses covered by your current employer such as health care cell phone or company car If you are losing benefits by leaving a job you will want to consider your new out-of-pocket expenses
Although personal debt is not necessarily a deal-breaker for entrepreneurship you may increase your comfort level in your first year by taking some time to pay down debt and increase your discretionary funds
Other considerations include housing and utility costs childcare food and entertainment for starters Donrsquot forget those recurring monthly expenses that add up such as a health club membership hair and beauty appointments and housekeeping or lawn care For some those trips to the store to stock up on essentials like shampoo and toilet paper inevitably end up costing hundreds of dollars each month When considering a major life change be honest with yourself about how much your lifestyle truly costs
And finally practice what you preach and budget for your
emergency fund and savings
The business expenses themselves werenrsquot a surprise but in addition to building a business budget I would have been more explicit with my own personal budget needs Irsquom in a very supportive relationship and we are fortunate to have had the flexibility to allow for a financial step-down to start a company but personally it was tough to feel financially dependent for the first time in 20 years In addition to your business budget be aware of what your personal draw looks like until yoursquove got revenue
-Jennifer Harper Bridge Financial Planning
Case StudyBeyond Your Hammock
Eric Roberge CFPreg is the founder of Beyond Your Hammock where he helps people in their 30s and 40s turn their income into financial freedom In 2016 InvestmentNews named Eric to their exclusive 40 Under 40 list Wealth Management Magazine called him one of the top 10 CFPs under 36 and Financial Advisor Magazine said he was one of the top 10 Young Advisors to Watch He has shared his innovative financial planning and money management techniques in the Wall Street Journal CNBC and USA Today and writes articles for Forbes The Huffington Post and MONEY Magazine
After looking at my first full year budget (2014) I honestly donrsquot think I could do much to improve it That thing was as tight as it could have been It had to be I had very little revenues and not much in savings I only spent $12k so I canrsquot say I did much overspending I canrsquot say I underspent either Any more spending would have put me in (more) debt
What expenses did I have that I didnrsquot anticipate Travel expenses to attend various conferences including the FPA NexGen Gathering and FinCon I didnrsquot really have the money but I squeezed out the least expensive trips I could Connecting with the industry to network and gain knowledge may not be an immediate return but it definitely helps down the road
The financial side of starting a business from scratch is a major stressor if you donrsquot have the funds Securing a side job will help reduce that stress but it may not go away Thatrsquos why you really have to focus on the mental and emotional impact of this journey Irsquom living proof that itrsquos not impossible but the last thing you want to do is ignore what your mind and body are telling you Focus on feeding your mind eat healthy and get enough sleep Your performance will count on it Also build communication and relationship skills and learn from others
Get to know your existing cash flow like the back of your hand Then run various revenue and business expense scenarios to get a feel for how things could go Have a plan for the worst case and then go out and create the best case
-Eric Roberge
Listen
How Eric spent in his first year
Episode 6 The Career of Eric Roberge - How He Built a Business to Support the Life of His
Dreams
Upfront Expenses Monthly Expenses
Business Setup
Capital Purchase $59
Surety Bond $150
Compliance Support $300
Category Total $509
Marketing
Website $1272
Misc $136 annual total
Google Apps $64 annual total
Golf $191 annual total
Meals $181 annual total
Domain Name and Web Hosting $122
Audible (3 months) $15 x3
Direct Mail $82 annual total
MailChimp (12 months) $10 x 12
Business GiftsSponsorship $215 annual total
Category Total $1394 $1034 Annual Total
Office EquipmentExpenses
Office Supplies $21 annual total
Parking varies from $4-$24 monthly $180 annual total
Commuting varies from $5-$20 monthly $35 annual total
Cleaning $12 annual total
Postage $16 annual total
BooksEducation $267 annual total
Category Total $531 Annual Total
Software
MoneyGuidePro (8 months) $66 (first month) $90 x 7
Less Annoying CRM (12 months) $10 x 12
PreciseFP $203
PaySimple Transaction Fees $69 annual total
Category Total $269 $819 Annual Total
Organizational Fees
XYPN Monthly Fee legacy rate 6 months $297 x 6
FinCon $578
FPA 10 months $35 x 10
FINRA $1190 annual total
CFPreg Certification Renewal $325
NextGen $256
Evol Business Institute $177
Mastermind Group $149
BNI $640
Networking amp Biz Dev $713 annual total
Travel $1167 annual total
Category Total $2125 $5202 Annual Total
Upfront Total Monthly Total
Total $4297 $63217
12-Month Total $11883
63217 is average monthly cost some costs were paid annually others were paid monthly
Case StudyBridge Financial Planning
Jennifer Harper of Bridge Financial Planning began working in the financial services industry in 2000 earned an MBA from the University of Tennessee at Chattanooga in 2001 and became a CFPreg in 2006 In 2005 she began developing a financial education non-profit organization Common Cents Financial Literacy Inc to help guide young people toward an independent and responsible financial future Additionally she is an adjunct Finance instructor at the University of Tennessee at Chattanooga
Looking back itrsquos clear that the saying lsquoyou donrsquot know what you donrsquot knowrsquo is SO true I tried to stay as streamlined as possible while putting more money toward scalability marketing and continuing education Those may have all been areas that I could have saved money on but I would have felt like I was sacrificing some of my vision
Having an online presence was something I initially underestimated Once I started looking at what was possible and how to build and leverage a mission brand and image I got it Some people are comfortable building their own (web)site but Irsquom glad I outsourced it Initially I went with a low cost provider to create a logo business card and letterhead The moment my website developer saw it he said it was terrible and had to go I was defensive at first but the more I listened to why it was so terrible and how it didnrsquot really coordinate with my message it was clear he was right He came up with a much better logo design and now I feel the branding and images are consistent from a design standpoint that I would have never understood before Lesson learned stick with what you know I donrsquot know design
Continuing education is another category I lsquocouldrsquo have spent less on but that mentality is opposite of my mission and vision and I feel strongly that it would be penny wise and pound foolish I have continued to gain knowledge and valuable connections through attending in-person continuing education conferences My first conference fee for NAPFA was generously donated by a NAPFA colleague and it solidified the heart and value of that network to me
Build a buffer into your plan Nothing ever goes exactly as planned There will always be something that comes up that wasnrsquot anticipated Yes I know yoursquore a financial planner but you know the saying ldquothe cobblerrsquos kids have no shoesrdquo
Once yoursquove decided to launch just launch Get going Donrsquot overthink things too much Nothingrsquos set in stone (other than to be a fee-only fiduciary) so therersquos opportunity to refine your business along the wayhellip Donrsquot worry about everything day one
-Jennifer Harper
Upfront Expenses Monthly Expenses
Business Setup
RIA Registration Fee $260
Business Liability Insurance partial year $500
Net Worth Bond Required in Tennessee $15000
Category Total $15760
Marketing
Website Design $2500
Domain Name and Web Hosting 12 months $22 x 12
Marketing Misc $1700
MealsEntertainment $197
Misc $177
Category Total $4574 $264 annual total
Office EquipmentExpenses
Office Supplies $75 x 12
Internet Access $100 x12
Computer $700
PrinterScanner $540
Office Lease partial year $270
BooksEducation $146
Category Total $1656 $2100 annual total
Software
Accounting $341
Financial Planning Software (Advizr or RightCapital) $3600
Document Management System $99
Scheduling Software $190
Encryption ServiceBackup Service $96
Boomerang ndash Productivityworkflow $150
Category Total $4476
Organizational Fees
XY Planning Network Monthly Fee 10 months $409 x 10
Website Link For NAPFAs Advisor Profile $221
CFPreg Certification Renewal $325
Conferences Travel etc $1852
Category Total $2398 $4090 annual total
Upfront Total Monthly Total
Total $28864 $53783
12-Month Total $35318
How Jennifer spent in her first year
Listen
Episode 54 Developing a Financial Literacy Program with Jennifer Harper
2 months of XYPN membership reduced makes the average $53783
Case StudyStone Steps Financial
Scott R Frank CFPreg CFA is the
founder of Stone Steps Financial a
firm created to help young
professionals and families
understand their financial lives and
position themselves to reach their
fullest potential He is highly
trained in the fields of financial
planning and investment
management having earned the
Certified Financial Planner (CFP)
designation as well as the
Chartered Financial Analyst (CFA)
charter in addition to years of
experience at nationally
recognized firms He lives in a little
beach town Cardiff by the Sea
just north of San Diego When hersquos
not geeking out on financial news
or white papers yoursquoll find him
surfing with friends (Stone Steps is
named for a surf break just a few
minutes north of his house)
running along the Pacific Coast
Highway or spending time with his
family
I started my firm with best-in-class software and hardware I didnrsquot want to upgrade down the road I paid for systems that have capacity compared to my needs so I donrsquot have to switch while I am growing my firm I may have waited for performance reporting Orion was a huge expense for a start-up Coming from an established RIA I thought everyone needed performance reporting
What expenses did I have that I didnrsquot anticipate Nothing but thatrsquos because I had a community of advisors who had already done it
Learn how to sell Sales typically has a negative connotation in the fee-only financial planning space Guess what If you canrsquot sell your services you canrsquot have a successful business and most importantly you cannot help those you wish to serve
Be authentic Donrsquot be someone you are not Your success will be determined by your perseverance determination and the financial resources you have to keep the lights on while you scale your business I would suggest you have at least 2 years of cash flow on the sideline to support your life while you start the business I am blessed with a supportive spouse who worked to keep the family fed and clothed while I grew Stone Steps If it wasnrsquot for her Stone Steps wouldnrsquot exist If you are married make sure your spouse is on board and be realistic with your growth assumptions
-Scott Frank
Listen
Episode 49 What it Takes to Start a Firm From Scratch with Scott Frank
Upfront Expenses Monthly ExpensesBusiness Setup
Business Formation $444
RIA Registration Fee $200
Initial Registration and Compliance Assistance $1000
Professional Liability (EampO) Insurance $660
Business Liability Insurance $500
Net Worth Bond Requirement California $12000Tax for LLC in California $800
Category Total $15604
Marketing
Website Design $4800
Domain Name and Web Hosting $110
Marketing Misc $960
Category Total $5870
Office EquipmentExpenses
Office Supplies $500
Computer $1480
PrinterScanner $300
Office Lease $550 x 12
Travel $1600Meal amp Entertainment $1600Category Total $5480 $6600 annual totalSoftware
Schedule Once $190
Windows 365 Last Pass MileIQ Spanning $182
Financial Planning Software eMoney $324 x 12
Orion $83333 x 12
Riskalyze $89 x 12
Google Apps Mailchimp Private Wifi $31 x 12
Category Total $372 $1532796 annual totalOrganizational Fees
XY Planning Network Monthly Fee $409
FPA Dues $399
CFA Dues $375
Website Link For NAPFAs Advisor Profile $210
CFPreg Certification Renewal $325
Category Total $1309 $409Upfront Total Monthly Total
Total $28635 $22363312-Month Total $5547096
How Scott spent in his first year
Sample Templates
Access our templates and customize a budget to meet your individual needs
Click Here ForFirst-Year Budget Templates
XYPlanningNetworkcom
Please note the information in this guide is presented as an estimate only and does not serve as an agreement between XY Planning Network and its members Member benefits and actual costs are subject to change
Organizational Fees
There are a number of organizational fees you will want to budget for in your first year If you choose to join XY Planning Network yoursquoll pay $409month That will save you on the upfront charges yoursquoll pay for your NAPFA membership which total $900 If yoursquore a CFPreg be sure to add $325 to your budget for your CFPreg Certification Renewal
You may notice in the following case studies that some members didnrsquot pay their XYPN membership dues for all 12 months Why is that They received a 2-month credit for each new member they referred to the network Through our referral program members are rewarded for sharing the movement
For a look at all of our cost-saving benefits get our Member Benefits Directory httpinfoxyplanningnetworkcommember-benefits-directory
Q What was the single expense most critical to your success
A Honestly it was becoming a member of XYPN Knowing that I wasnrsquot alone in the process and struggle of launching was priceless The knowledge base inherent in the team and other members is invaluable It would have taken a lot of time to personally vet different technology vendors or figure out some of the process on my own Add on top of that the discounts available for key components of the business and access to platforms such as TD Ameritrade Institutional and itrsquos tough to beat The freedom within the network to plug-in and plug-out of components is truly unique
-Jennifer Harper Bridge Financial Planning
Living Expenses
Depending on your situation you probably want to consider basic living expenses when calculating your start-up costs Many new firm owners rely on outside income personal savings or their spousersquos salary to get by in their first year We focus on business expenses in our sample template but it may be helpful to get the big picture of how much cash yoursquoll need to have on hand as you build your firm Itrsquos a good exercise to consider your everyday expenses when starting a new entrepreneurial venture
Of particular interest are expenses covered by your current employer such as health care cell phone or company car If you are losing benefits by leaving a job you will want to consider your new out-of-pocket expenses
Although personal debt is not necessarily a deal-breaker for entrepreneurship you may increase your comfort level in your first year by taking some time to pay down debt and increase your discretionary funds
Other considerations include housing and utility costs childcare food and entertainment for starters Donrsquot forget those recurring monthly expenses that add up such as a health club membership hair and beauty appointments and housekeeping or lawn care For some those trips to the store to stock up on essentials like shampoo and toilet paper inevitably end up costing hundreds of dollars each month When considering a major life change be honest with yourself about how much your lifestyle truly costs
And finally practice what you preach and budget for your
emergency fund and savings
The business expenses themselves werenrsquot a surprise but in addition to building a business budget I would have been more explicit with my own personal budget needs Irsquom in a very supportive relationship and we are fortunate to have had the flexibility to allow for a financial step-down to start a company but personally it was tough to feel financially dependent for the first time in 20 years In addition to your business budget be aware of what your personal draw looks like until yoursquove got revenue
-Jennifer Harper Bridge Financial Planning
Case StudyBeyond Your Hammock
Eric Roberge CFPreg is the founder of Beyond Your Hammock where he helps people in their 30s and 40s turn their income into financial freedom In 2016 InvestmentNews named Eric to their exclusive 40 Under 40 list Wealth Management Magazine called him one of the top 10 CFPs under 36 and Financial Advisor Magazine said he was one of the top 10 Young Advisors to Watch He has shared his innovative financial planning and money management techniques in the Wall Street Journal CNBC and USA Today and writes articles for Forbes The Huffington Post and MONEY Magazine
After looking at my first full year budget (2014) I honestly donrsquot think I could do much to improve it That thing was as tight as it could have been It had to be I had very little revenues and not much in savings I only spent $12k so I canrsquot say I did much overspending I canrsquot say I underspent either Any more spending would have put me in (more) debt
What expenses did I have that I didnrsquot anticipate Travel expenses to attend various conferences including the FPA NexGen Gathering and FinCon I didnrsquot really have the money but I squeezed out the least expensive trips I could Connecting with the industry to network and gain knowledge may not be an immediate return but it definitely helps down the road
The financial side of starting a business from scratch is a major stressor if you donrsquot have the funds Securing a side job will help reduce that stress but it may not go away Thatrsquos why you really have to focus on the mental and emotional impact of this journey Irsquom living proof that itrsquos not impossible but the last thing you want to do is ignore what your mind and body are telling you Focus on feeding your mind eat healthy and get enough sleep Your performance will count on it Also build communication and relationship skills and learn from others
Get to know your existing cash flow like the back of your hand Then run various revenue and business expense scenarios to get a feel for how things could go Have a plan for the worst case and then go out and create the best case
-Eric Roberge
Listen
How Eric spent in his first year
Episode 6 The Career of Eric Roberge - How He Built a Business to Support the Life of His
Dreams
Upfront Expenses Monthly Expenses
Business Setup
Capital Purchase $59
Surety Bond $150
Compliance Support $300
Category Total $509
Marketing
Website $1272
Misc $136 annual total
Google Apps $64 annual total
Golf $191 annual total
Meals $181 annual total
Domain Name and Web Hosting $122
Audible (3 months) $15 x3
Direct Mail $82 annual total
MailChimp (12 months) $10 x 12
Business GiftsSponsorship $215 annual total
Category Total $1394 $1034 Annual Total
Office EquipmentExpenses
Office Supplies $21 annual total
Parking varies from $4-$24 monthly $180 annual total
Commuting varies from $5-$20 monthly $35 annual total
Cleaning $12 annual total
Postage $16 annual total
BooksEducation $267 annual total
Category Total $531 Annual Total
Software
MoneyGuidePro (8 months) $66 (first month) $90 x 7
Less Annoying CRM (12 months) $10 x 12
PreciseFP $203
PaySimple Transaction Fees $69 annual total
Category Total $269 $819 Annual Total
Organizational Fees
XYPN Monthly Fee legacy rate 6 months $297 x 6
FinCon $578
FPA 10 months $35 x 10
FINRA $1190 annual total
CFPreg Certification Renewal $325
NextGen $256
Evol Business Institute $177
Mastermind Group $149
BNI $640
Networking amp Biz Dev $713 annual total
Travel $1167 annual total
Category Total $2125 $5202 Annual Total
Upfront Total Monthly Total
Total $4297 $63217
12-Month Total $11883
63217 is average monthly cost some costs were paid annually others were paid monthly
Case StudyBridge Financial Planning
Jennifer Harper of Bridge Financial Planning began working in the financial services industry in 2000 earned an MBA from the University of Tennessee at Chattanooga in 2001 and became a CFPreg in 2006 In 2005 she began developing a financial education non-profit organization Common Cents Financial Literacy Inc to help guide young people toward an independent and responsible financial future Additionally she is an adjunct Finance instructor at the University of Tennessee at Chattanooga
Looking back itrsquos clear that the saying lsquoyou donrsquot know what you donrsquot knowrsquo is SO true I tried to stay as streamlined as possible while putting more money toward scalability marketing and continuing education Those may have all been areas that I could have saved money on but I would have felt like I was sacrificing some of my vision
Having an online presence was something I initially underestimated Once I started looking at what was possible and how to build and leverage a mission brand and image I got it Some people are comfortable building their own (web)site but Irsquom glad I outsourced it Initially I went with a low cost provider to create a logo business card and letterhead The moment my website developer saw it he said it was terrible and had to go I was defensive at first but the more I listened to why it was so terrible and how it didnrsquot really coordinate with my message it was clear he was right He came up with a much better logo design and now I feel the branding and images are consistent from a design standpoint that I would have never understood before Lesson learned stick with what you know I donrsquot know design
Continuing education is another category I lsquocouldrsquo have spent less on but that mentality is opposite of my mission and vision and I feel strongly that it would be penny wise and pound foolish I have continued to gain knowledge and valuable connections through attending in-person continuing education conferences My first conference fee for NAPFA was generously donated by a NAPFA colleague and it solidified the heart and value of that network to me
Build a buffer into your plan Nothing ever goes exactly as planned There will always be something that comes up that wasnrsquot anticipated Yes I know yoursquore a financial planner but you know the saying ldquothe cobblerrsquos kids have no shoesrdquo
Once yoursquove decided to launch just launch Get going Donrsquot overthink things too much Nothingrsquos set in stone (other than to be a fee-only fiduciary) so therersquos opportunity to refine your business along the wayhellip Donrsquot worry about everything day one
-Jennifer Harper
Upfront Expenses Monthly Expenses
Business Setup
RIA Registration Fee $260
Business Liability Insurance partial year $500
Net Worth Bond Required in Tennessee $15000
Category Total $15760
Marketing
Website Design $2500
Domain Name and Web Hosting 12 months $22 x 12
Marketing Misc $1700
MealsEntertainment $197
Misc $177
Category Total $4574 $264 annual total
Office EquipmentExpenses
Office Supplies $75 x 12
Internet Access $100 x12
Computer $700
PrinterScanner $540
Office Lease partial year $270
BooksEducation $146
Category Total $1656 $2100 annual total
Software
Accounting $341
Financial Planning Software (Advizr or RightCapital) $3600
Document Management System $99
Scheduling Software $190
Encryption ServiceBackup Service $96
Boomerang ndash Productivityworkflow $150
Category Total $4476
Organizational Fees
XY Planning Network Monthly Fee 10 months $409 x 10
Website Link For NAPFAs Advisor Profile $221
CFPreg Certification Renewal $325
Conferences Travel etc $1852
Category Total $2398 $4090 annual total
Upfront Total Monthly Total
Total $28864 $53783
12-Month Total $35318
How Jennifer spent in her first year
Listen
Episode 54 Developing a Financial Literacy Program with Jennifer Harper
2 months of XYPN membership reduced makes the average $53783
Case StudyStone Steps Financial
Scott R Frank CFPreg CFA is the
founder of Stone Steps Financial a
firm created to help young
professionals and families
understand their financial lives and
position themselves to reach their
fullest potential He is highly
trained in the fields of financial
planning and investment
management having earned the
Certified Financial Planner (CFP)
designation as well as the
Chartered Financial Analyst (CFA)
charter in addition to years of
experience at nationally
recognized firms He lives in a little
beach town Cardiff by the Sea
just north of San Diego When hersquos
not geeking out on financial news
or white papers yoursquoll find him
surfing with friends (Stone Steps is
named for a surf break just a few
minutes north of his house)
running along the Pacific Coast
Highway or spending time with his
family
I started my firm with best-in-class software and hardware I didnrsquot want to upgrade down the road I paid for systems that have capacity compared to my needs so I donrsquot have to switch while I am growing my firm I may have waited for performance reporting Orion was a huge expense for a start-up Coming from an established RIA I thought everyone needed performance reporting
What expenses did I have that I didnrsquot anticipate Nothing but thatrsquos because I had a community of advisors who had already done it
Learn how to sell Sales typically has a negative connotation in the fee-only financial planning space Guess what If you canrsquot sell your services you canrsquot have a successful business and most importantly you cannot help those you wish to serve
Be authentic Donrsquot be someone you are not Your success will be determined by your perseverance determination and the financial resources you have to keep the lights on while you scale your business I would suggest you have at least 2 years of cash flow on the sideline to support your life while you start the business I am blessed with a supportive spouse who worked to keep the family fed and clothed while I grew Stone Steps If it wasnrsquot for her Stone Steps wouldnrsquot exist If you are married make sure your spouse is on board and be realistic with your growth assumptions
-Scott Frank
Listen
Episode 49 What it Takes to Start a Firm From Scratch with Scott Frank
Upfront Expenses Monthly ExpensesBusiness Setup
Business Formation $444
RIA Registration Fee $200
Initial Registration and Compliance Assistance $1000
Professional Liability (EampO) Insurance $660
Business Liability Insurance $500
Net Worth Bond Requirement California $12000Tax for LLC in California $800
Category Total $15604
Marketing
Website Design $4800
Domain Name and Web Hosting $110
Marketing Misc $960
Category Total $5870
Office EquipmentExpenses
Office Supplies $500
Computer $1480
PrinterScanner $300
Office Lease $550 x 12
Travel $1600Meal amp Entertainment $1600Category Total $5480 $6600 annual totalSoftware
Schedule Once $190
Windows 365 Last Pass MileIQ Spanning $182
Financial Planning Software eMoney $324 x 12
Orion $83333 x 12
Riskalyze $89 x 12
Google Apps Mailchimp Private Wifi $31 x 12
Category Total $372 $1532796 annual totalOrganizational Fees
XY Planning Network Monthly Fee $409
FPA Dues $399
CFA Dues $375
Website Link For NAPFAs Advisor Profile $210
CFPreg Certification Renewal $325
Category Total $1309 $409Upfront Total Monthly Total
Total $28635 $22363312-Month Total $5547096
How Scott spent in his first year
Sample Templates
Access our templates and customize a budget to meet your individual needs
Click Here ForFirst-Year Budget Templates
XYPlanningNetworkcom
Please note the information in this guide is presented as an estimate only and does not serve as an agreement between XY Planning Network and its members Member benefits and actual costs are subject to change
Living Expenses
Depending on your situation you probably want to consider basic living expenses when calculating your start-up costs Many new firm owners rely on outside income personal savings or their spousersquos salary to get by in their first year We focus on business expenses in our sample template but it may be helpful to get the big picture of how much cash yoursquoll need to have on hand as you build your firm Itrsquos a good exercise to consider your everyday expenses when starting a new entrepreneurial venture
Of particular interest are expenses covered by your current employer such as health care cell phone or company car If you are losing benefits by leaving a job you will want to consider your new out-of-pocket expenses
Although personal debt is not necessarily a deal-breaker for entrepreneurship you may increase your comfort level in your first year by taking some time to pay down debt and increase your discretionary funds
Other considerations include housing and utility costs childcare food and entertainment for starters Donrsquot forget those recurring monthly expenses that add up such as a health club membership hair and beauty appointments and housekeeping or lawn care For some those trips to the store to stock up on essentials like shampoo and toilet paper inevitably end up costing hundreds of dollars each month When considering a major life change be honest with yourself about how much your lifestyle truly costs
And finally practice what you preach and budget for your
emergency fund and savings
The business expenses themselves werenrsquot a surprise but in addition to building a business budget I would have been more explicit with my own personal budget needs Irsquom in a very supportive relationship and we are fortunate to have had the flexibility to allow for a financial step-down to start a company but personally it was tough to feel financially dependent for the first time in 20 years In addition to your business budget be aware of what your personal draw looks like until yoursquove got revenue
-Jennifer Harper Bridge Financial Planning
Case StudyBeyond Your Hammock
Eric Roberge CFPreg is the founder of Beyond Your Hammock where he helps people in their 30s and 40s turn their income into financial freedom In 2016 InvestmentNews named Eric to their exclusive 40 Under 40 list Wealth Management Magazine called him one of the top 10 CFPs under 36 and Financial Advisor Magazine said he was one of the top 10 Young Advisors to Watch He has shared his innovative financial planning and money management techniques in the Wall Street Journal CNBC and USA Today and writes articles for Forbes The Huffington Post and MONEY Magazine
After looking at my first full year budget (2014) I honestly donrsquot think I could do much to improve it That thing was as tight as it could have been It had to be I had very little revenues and not much in savings I only spent $12k so I canrsquot say I did much overspending I canrsquot say I underspent either Any more spending would have put me in (more) debt
What expenses did I have that I didnrsquot anticipate Travel expenses to attend various conferences including the FPA NexGen Gathering and FinCon I didnrsquot really have the money but I squeezed out the least expensive trips I could Connecting with the industry to network and gain knowledge may not be an immediate return but it definitely helps down the road
The financial side of starting a business from scratch is a major stressor if you donrsquot have the funds Securing a side job will help reduce that stress but it may not go away Thatrsquos why you really have to focus on the mental and emotional impact of this journey Irsquom living proof that itrsquos not impossible but the last thing you want to do is ignore what your mind and body are telling you Focus on feeding your mind eat healthy and get enough sleep Your performance will count on it Also build communication and relationship skills and learn from others
Get to know your existing cash flow like the back of your hand Then run various revenue and business expense scenarios to get a feel for how things could go Have a plan for the worst case and then go out and create the best case
-Eric Roberge
Listen
How Eric spent in his first year
Episode 6 The Career of Eric Roberge - How He Built a Business to Support the Life of His
Dreams
Upfront Expenses Monthly Expenses
Business Setup
Capital Purchase $59
Surety Bond $150
Compliance Support $300
Category Total $509
Marketing
Website $1272
Misc $136 annual total
Google Apps $64 annual total
Golf $191 annual total
Meals $181 annual total
Domain Name and Web Hosting $122
Audible (3 months) $15 x3
Direct Mail $82 annual total
MailChimp (12 months) $10 x 12
Business GiftsSponsorship $215 annual total
Category Total $1394 $1034 Annual Total
Office EquipmentExpenses
Office Supplies $21 annual total
Parking varies from $4-$24 monthly $180 annual total
Commuting varies from $5-$20 monthly $35 annual total
Cleaning $12 annual total
Postage $16 annual total
BooksEducation $267 annual total
Category Total $531 Annual Total
Software
MoneyGuidePro (8 months) $66 (first month) $90 x 7
Less Annoying CRM (12 months) $10 x 12
PreciseFP $203
PaySimple Transaction Fees $69 annual total
Category Total $269 $819 Annual Total
Organizational Fees
XYPN Monthly Fee legacy rate 6 months $297 x 6
FinCon $578
FPA 10 months $35 x 10
FINRA $1190 annual total
CFPreg Certification Renewal $325
NextGen $256
Evol Business Institute $177
Mastermind Group $149
BNI $640
Networking amp Biz Dev $713 annual total
Travel $1167 annual total
Category Total $2125 $5202 Annual Total
Upfront Total Monthly Total
Total $4297 $63217
12-Month Total $11883
63217 is average monthly cost some costs were paid annually others were paid monthly
Case StudyBridge Financial Planning
Jennifer Harper of Bridge Financial Planning began working in the financial services industry in 2000 earned an MBA from the University of Tennessee at Chattanooga in 2001 and became a CFPreg in 2006 In 2005 she began developing a financial education non-profit organization Common Cents Financial Literacy Inc to help guide young people toward an independent and responsible financial future Additionally she is an adjunct Finance instructor at the University of Tennessee at Chattanooga
Looking back itrsquos clear that the saying lsquoyou donrsquot know what you donrsquot knowrsquo is SO true I tried to stay as streamlined as possible while putting more money toward scalability marketing and continuing education Those may have all been areas that I could have saved money on but I would have felt like I was sacrificing some of my vision
Having an online presence was something I initially underestimated Once I started looking at what was possible and how to build and leverage a mission brand and image I got it Some people are comfortable building their own (web)site but Irsquom glad I outsourced it Initially I went with a low cost provider to create a logo business card and letterhead The moment my website developer saw it he said it was terrible and had to go I was defensive at first but the more I listened to why it was so terrible and how it didnrsquot really coordinate with my message it was clear he was right He came up with a much better logo design and now I feel the branding and images are consistent from a design standpoint that I would have never understood before Lesson learned stick with what you know I donrsquot know design
Continuing education is another category I lsquocouldrsquo have spent less on but that mentality is opposite of my mission and vision and I feel strongly that it would be penny wise and pound foolish I have continued to gain knowledge and valuable connections through attending in-person continuing education conferences My first conference fee for NAPFA was generously donated by a NAPFA colleague and it solidified the heart and value of that network to me
Build a buffer into your plan Nothing ever goes exactly as planned There will always be something that comes up that wasnrsquot anticipated Yes I know yoursquore a financial planner but you know the saying ldquothe cobblerrsquos kids have no shoesrdquo
Once yoursquove decided to launch just launch Get going Donrsquot overthink things too much Nothingrsquos set in stone (other than to be a fee-only fiduciary) so therersquos opportunity to refine your business along the wayhellip Donrsquot worry about everything day one
-Jennifer Harper
Upfront Expenses Monthly Expenses
Business Setup
RIA Registration Fee $260
Business Liability Insurance partial year $500
Net Worth Bond Required in Tennessee $15000
Category Total $15760
Marketing
Website Design $2500
Domain Name and Web Hosting 12 months $22 x 12
Marketing Misc $1700
MealsEntertainment $197
Misc $177
Category Total $4574 $264 annual total
Office EquipmentExpenses
Office Supplies $75 x 12
Internet Access $100 x12
Computer $700
PrinterScanner $540
Office Lease partial year $270
BooksEducation $146
Category Total $1656 $2100 annual total
Software
Accounting $341
Financial Planning Software (Advizr or RightCapital) $3600
Document Management System $99
Scheduling Software $190
Encryption ServiceBackup Service $96
Boomerang ndash Productivityworkflow $150
Category Total $4476
Organizational Fees
XY Planning Network Monthly Fee 10 months $409 x 10
Website Link For NAPFAs Advisor Profile $221
CFPreg Certification Renewal $325
Conferences Travel etc $1852
Category Total $2398 $4090 annual total
Upfront Total Monthly Total
Total $28864 $53783
12-Month Total $35318
How Jennifer spent in her first year
Listen
Episode 54 Developing a Financial Literacy Program with Jennifer Harper
2 months of XYPN membership reduced makes the average $53783
Case StudyStone Steps Financial
Scott R Frank CFPreg CFA is the
founder of Stone Steps Financial a
firm created to help young
professionals and families
understand their financial lives and
position themselves to reach their
fullest potential He is highly
trained in the fields of financial
planning and investment
management having earned the
Certified Financial Planner (CFP)
designation as well as the
Chartered Financial Analyst (CFA)
charter in addition to years of
experience at nationally
recognized firms He lives in a little
beach town Cardiff by the Sea
just north of San Diego When hersquos
not geeking out on financial news
or white papers yoursquoll find him
surfing with friends (Stone Steps is
named for a surf break just a few
minutes north of his house)
running along the Pacific Coast
Highway or spending time with his
family
I started my firm with best-in-class software and hardware I didnrsquot want to upgrade down the road I paid for systems that have capacity compared to my needs so I donrsquot have to switch while I am growing my firm I may have waited for performance reporting Orion was a huge expense for a start-up Coming from an established RIA I thought everyone needed performance reporting
What expenses did I have that I didnrsquot anticipate Nothing but thatrsquos because I had a community of advisors who had already done it
Learn how to sell Sales typically has a negative connotation in the fee-only financial planning space Guess what If you canrsquot sell your services you canrsquot have a successful business and most importantly you cannot help those you wish to serve
Be authentic Donrsquot be someone you are not Your success will be determined by your perseverance determination and the financial resources you have to keep the lights on while you scale your business I would suggest you have at least 2 years of cash flow on the sideline to support your life while you start the business I am blessed with a supportive spouse who worked to keep the family fed and clothed while I grew Stone Steps If it wasnrsquot for her Stone Steps wouldnrsquot exist If you are married make sure your spouse is on board and be realistic with your growth assumptions
-Scott Frank
Listen
Episode 49 What it Takes to Start a Firm From Scratch with Scott Frank
Upfront Expenses Monthly ExpensesBusiness Setup
Business Formation $444
RIA Registration Fee $200
Initial Registration and Compliance Assistance $1000
Professional Liability (EampO) Insurance $660
Business Liability Insurance $500
Net Worth Bond Requirement California $12000Tax for LLC in California $800
Category Total $15604
Marketing
Website Design $4800
Domain Name and Web Hosting $110
Marketing Misc $960
Category Total $5870
Office EquipmentExpenses
Office Supplies $500
Computer $1480
PrinterScanner $300
Office Lease $550 x 12
Travel $1600Meal amp Entertainment $1600Category Total $5480 $6600 annual totalSoftware
Schedule Once $190
Windows 365 Last Pass MileIQ Spanning $182
Financial Planning Software eMoney $324 x 12
Orion $83333 x 12
Riskalyze $89 x 12
Google Apps Mailchimp Private Wifi $31 x 12
Category Total $372 $1532796 annual totalOrganizational Fees
XY Planning Network Monthly Fee $409
FPA Dues $399
CFA Dues $375
Website Link For NAPFAs Advisor Profile $210
CFPreg Certification Renewal $325
Category Total $1309 $409Upfront Total Monthly Total
Total $28635 $22363312-Month Total $5547096
How Scott spent in his first year
Sample Templates
Access our templates and customize a budget to meet your individual needs
Click Here ForFirst-Year Budget Templates
XYPlanningNetworkcom
Please note the information in this guide is presented as an estimate only and does not serve as an agreement between XY Planning Network and its members Member benefits and actual costs are subject to change
Case StudyBeyond Your Hammock
Eric Roberge CFPreg is the founder of Beyond Your Hammock where he helps people in their 30s and 40s turn their income into financial freedom In 2016 InvestmentNews named Eric to their exclusive 40 Under 40 list Wealth Management Magazine called him one of the top 10 CFPs under 36 and Financial Advisor Magazine said he was one of the top 10 Young Advisors to Watch He has shared his innovative financial planning and money management techniques in the Wall Street Journal CNBC and USA Today and writes articles for Forbes The Huffington Post and MONEY Magazine
After looking at my first full year budget (2014) I honestly donrsquot think I could do much to improve it That thing was as tight as it could have been It had to be I had very little revenues and not much in savings I only spent $12k so I canrsquot say I did much overspending I canrsquot say I underspent either Any more spending would have put me in (more) debt
What expenses did I have that I didnrsquot anticipate Travel expenses to attend various conferences including the FPA NexGen Gathering and FinCon I didnrsquot really have the money but I squeezed out the least expensive trips I could Connecting with the industry to network and gain knowledge may not be an immediate return but it definitely helps down the road
The financial side of starting a business from scratch is a major stressor if you donrsquot have the funds Securing a side job will help reduce that stress but it may not go away Thatrsquos why you really have to focus on the mental and emotional impact of this journey Irsquom living proof that itrsquos not impossible but the last thing you want to do is ignore what your mind and body are telling you Focus on feeding your mind eat healthy and get enough sleep Your performance will count on it Also build communication and relationship skills and learn from others
Get to know your existing cash flow like the back of your hand Then run various revenue and business expense scenarios to get a feel for how things could go Have a plan for the worst case and then go out and create the best case
-Eric Roberge
Listen
How Eric spent in his first year
Episode 6 The Career of Eric Roberge - How He Built a Business to Support the Life of His
Dreams
Upfront Expenses Monthly Expenses
Business Setup
Capital Purchase $59
Surety Bond $150
Compliance Support $300
Category Total $509
Marketing
Website $1272
Misc $136 annual total
Google Apps $64 annual total
Golf $191 annual total
Meals $181 annual total
Domain Name and Web Hosting $122
Audible (3 months) $15 x3
Direct Mail $82 annual total
MailChimp (12 months) $10 x 12
Business GiftsSponsorship $215 annual total
Category Total $1394 $1034 Annual Total
Office EquipmentExpenses
Office Supplies $21 annual total
Parking varies from $4-$24 monthly $180 annual total
Commuting varies from $5-$20 monthly $35 annual total
Cleaning $12 annual total
Postage $16 annual total
BooksEducation $267 annual total
Category Total $531 Annual Total
Software
MoneyGuidePro (8 months) $66 (first month) $90 x 7
Less Annoying CRM (12 months) $10 x 12
PreciseFP $203
PaySimple Transaction Fees $69 annual total
Category Total $269 $819 Annual Total
Organizational Fees
XYPN Monthly Fee legacy rate 6 months $297 x 6
FinCon $578
FPA 10 months $35 x 10
FINRA $1190 annual total
CFPreg Certification Renewal $325
NextGen $256
Evol Business Institute $177
Mastermind Group $149
BNI $640
Networking amp Biz Dev $713 annual total
Travel $1167 annual total
Category Total $2125 $5202 Annual Total
Upfront Total Monthly Total
Total $4297 $63217
12-Month Total $11883
63217 is average monthly cost some costs were paid annually others were paid monthly
Case StudyBridge Financial Planning
Jennifer Harper of Bridge Financial Planning began working in the financial services industry in 2000 earned an MBA from the University of Tennessee at Chattanooga in 2001 and became a CFPreg in 2006 In 2005 she began developing a financial education non-profit organization Common Cents Financial Literacy Inc to help guide young people toward an independent and responsible financial future Additionally she is an adjunct Finance instructor at the University of Tennessee at Chattanooga
Looking back itrsquos clear that the saying lsquoyou donrsquot know what you donrsquot knowrsquo is SO true I tried to stay as streamlined as possible while putting more money toward scalability marketing and continuing education Those may have all been areas that I could have saved money on but I would have felt like I was sacrificing some of my vision
Having an online presence was something I initially underestimated Once I started looking at what was possible and how to build and leverage a mission brand and image I got it Some people are comfortable building their own (web)site but Irsquom glad I outsourced it Initially I went with a low cost provider to create a logo business card and letterhead The moment my website developer saw it he said it was terrible and had to go I was defensive at first but the more I listened to why it was so terrible and how it didnrsquot really coordinate with my message it was clear he was right He came up with a much better logo design and now I feel the branding and images are consistent from a design standpoint that I would have never understood before Lesson learned stick with what you know I donrsquot know design
Continuing education is another category I lsquocouldrsquo have spent less on but that mentality is opposite of my mission and vision and I feel strongly that it would be penny wise and pound foolish I have continued to gain knowledge and valuable connections through attending in-person continuing education conferences My first conference fee for NAPFA was generously donated by a NAPFA colleague and it solidified the heart and value of that network to me
Build a buffer into your plan Nothing ever goes exactly as planned There will always be something that comes up that wasnrsquot anticipated Yes I know yoursquore a financial planner but you know the saying ldquothe cobblerrsquos kids have no shoesrdquo
Once yoursquove decided to launch just launch Get going Donrsquot overthink things too much Nothingrsquos set in stone (other than to be a fee-only fiduciary) so therersquos opportunity to refine your business along the wayhellip Donrsquot worry about everything day one
-Jennifer Harper
Upfront Expenses Monthly Expenses
Business Setup
RIA Registration Fee $260
Business Liability Insurance partial year $500
Net Worth Bond Required in Tennessee $15000
Category Total $15760
Marketing
Website Design $2500
Domain Name and Web Hosting 12 months $22 x 12
Marketing Misc $1700
MealsEntertainment $197
Misc $177
Category Total $4574 $264 annual total
Office EquipmentExpenses
Office Supplies $75 x 12
Internet Access $100 x12
Computer $700
PrinterScanner $540
Office Lease partial year $270
BooksEducation $146
Category Total $1656 $2100 annual total
Software
Accounting $341
Financial Planning Software (Advizr or RightCapital) $3600
Document Management System $99
Scheduling Software $190
Encryption ServiceBackup Service $96
Boomerang ndash Productivityworkflow $150
Category Total $4476
Organizational Fees
XY Planning Network Monthly Fee 10 months $409 x 10
Website Link For NAPFAs Advisor Profile $221
CFPreg Certification Renewal $325
Conferences Travel etc $1852
Category Total $2398 $4090 annual total
Upfront Total Monthly Total
Total $28864 $53783
12-Month Total $35318
How Jennifer spent in her first year
Listen
Episode 54 Developing a Financial Literacy Program with Jennifer Harper
2 months of XYPN membership reduced makes the average $53783
Case StudyStone Steps Financial
Scott R Frank CFPreg CFA is the
founder of Stone Steps Financial a
firm created to help young
professionals and families
understand their financial lives and
position themselves to reach their
fullest potential He is highly
trained in the fields of financial
planning and investment
management having earned the
Certified Financial Planner (CFP)
designation as well as the
Chartered Financial Analyst (CFA)
charter in addition to years of
experience at nationally
recognized firms He lives in a little
beach town Cardiff by the Sea
just north of San Diego When hersquos
not geeking out on financial news
or white papers yoursquoll find him
surfing with friends (Stone Steps is
named for a surf break just a few
minutes north of his house)
running along the Pacific Coast
Highway or spending time with his
family
I started my firm with best-in-class software and hardware I didnrsquot want to upgrade down the road I paid for systems that have capacity compared to my needs so I donrsquot have to switch while I am growing my firm I may have waited for performance reporting Orion was a huge expense for a start-up Coming from an established RIA I thought everyone needed performance reporting
What expenses did I have that I didnrsquot anticipate Nothing but thatrsquos because I had a community of advisors who had already done it
Learn how to sell Sales typically has a negative connotation in the fee-only financial planning space Guess what If you canrsquot sell your services you canrsquot have a successful business and most importantly you cannot help those you wish to serve
Be authentic Donrsquot be someone you are not Your success will be determined by your perseverance determination and the financial resources you have to keep the lights on while you scale your business I would suggest you have at least 2 years of cash flow on the sideline to support your life while you start the business I am blessed with a supportive spouse who worked to keep the family fed and clothed while I grew Stone Steps If it wasnrsquot for her Stone Steps wouldnrsquot exist If you are married make sure your spouse is on board and be realistic with your growth assumptions
-Scott Frank
Listen
Episode 49 What it Takes to Start a Firm From Scratch with Scott Frank
Upfront Expenses Monthly ExpensesBusiness Setup
Business Formation $444
RIA Registration Fee $200
Initial Registration and Compliance Assistance $1000
Professional Liability (EampO) Insurance $660
Business Liability Insurance $500
Net Worth Bond Requirement California $12000Tax for LLC in California $800
Category Total $15604
Marketing
Website Design $4800
Domain Name and Web Hosting $110
Marketing Misc $960
Category Total $5870
Office EquipmentExpenses
Office Supplies $500
Computer $1480
PrinterScanner $300
Office Lease $550 x 12
Travel $1600Meal amp Entertainment $1600Category Total $5480 $6600 annual totalSoftware
Schedule Once $190
Windows 365 Last Pass MileIQ Spanning $182
Financial Planning Software eMoney $324 x 12
Orion $83333 x 12
Riskalyze $89 x 12
Google Apps Mailchimp Private Wifi $31 x 12
Category Total $372 $1532796 annual totalOrganizational Fees
XY Planning Network Monthly Fee $409
FPA Dues $399
CFA Dues $375
Website Link For NAPFAs Advisor Profile $210
CFPreg Certification Renewal $325
Category Total $1309 $409Upfront Total Monthly Total
Total $28635 $22363312-Month Total $5547096
How Scott spent in his first year
Sample Templates
Access our templates and customize a budget to meet your individual needs
Click Here ForFirst-Year Budget Templates
XYPlanningNetworkcom
Please note the information in this guide is presented as an estimate only and does not serve as an agreement between XY Planning Network and its members Member benefits and actual costs are subject to change
Listen
How Eric spent in his first year
Episode 6 The Career of Eric Roberge - How He Built a Business to Support the Life of His
Dreams
Upfront Expenses Monthly Expenses
Business Setup
Capital Purchase $59
Surety Bond $150
Compliance Support $300
Category Total $509
Marketing
Website $1272
Misc $136 annual total
Google Apps $64 annual total
Golf $191 annual total
Meals $181 annual total
Domain Name and Web Hosting $122
Audible (3 months) $15 x3
Direct Mail $82 annual total
MailChimp (12 months) $10 x 12
Business GiftsSponsorship $215 annual total
Category Total $1394 $1034 Annual Total
Office EquipmentExpenses
Office Supplies $21 annual total
Parking varies from $4-$24 monthly $180 annual total
Commuting varies from $5-$20 monthly $35 annual total
Cleaning $12 annual total
Postage $16 annual total
BooksEducation $267 annual total
Category Total $531 Annual Total
Software
MoneyGuidePro (8 months) $66 (first month) $90 x 7
Less Annoying CRM (12 months) $10 x 12
PreciseFP $203
PaySimple Transaction Fees $69 annual total
Category Total $269 $819 Annual Total
Organizational Fees
XYPN Monthly Fee legacy rate 6 months $297 x 6
FinCon $578
FPA 10 months $35 x 10
FINRA $1190 annual total
CFPreg Certification Renewal $325
NextGen $256
Evol Business Institute $177
Mastermind Group $149
BNI $640
Networking amp Biz Dev $713 annual total
Travel $1167 annual total
Category Total $2125 $5202 Annual Total
Upfront Total Monthly Total
Total $4297 $63217
12-Month Total $11883
63217 is average monthly cost some costs were paid annually others were paid monthly
Case StudyBridge Financial Planning
Jennifer Harper of Bridge Financial Planning began working in the financial services industry in 2000 earned an MBA from the University of Tennessee at Chattanooga in 2001 and became a CFPreg in 2006 In 2005 she began developing a financial education non-profit organization Common Cents Financial Literacy Inc to help guide young people toward an independent and responsible financial future Additionally she is an adjunct Finance instructor at the University of Tennessee at Chattanooga
Looking back itrsquos clear that the saying lsquoyou donrsquot know what you donrsquot knowrsquo is SO true I tried to stay as streamlined as possible while putting more money toward scalability marketing and continuing education Those may have all been areas that I could have saved money on but I would have felt like I was sacrificing some of my vision
Having an online presence was something I initially underestimated Once I started looking at what was possible and how to build and leverage a mission brand and image I got it Some people are comfortable building their own (web)site but Irsquom glad I outsourced it Initially I went with a low cost provider to create a logo business card and letterhead The moment my website developer saw it he said it was terrible and had to go I was defensive at first but the more I listened to why it was so terrible and how it didnrsquot really coordinate with my message it was clear he was right He came up with a much better logo design and now I feel the branding and images are consistent from a design standpoint that I would have never understood before Lesson learned stick with what you know I donrsquot know design
Continuing education is another category I lsquocouldrsquo have spent less on but that mentality is opposite of my mission and vision and I feel strongly that it would be penny wise and pound foolish I have continued to gain knowledge and valuable connections through attending in-person continuing education conferences My first conference fee for NAPFA was generously donated by a NAPFA colleague and it solidified the heart and value of that network to me
Build a buffer into your plan Nothing ever goes exactly as planned There will always be something that comes up that wasnrsquot anticipated Yes I know yoursquore a financial planner but you know the saying ldquothe cobblerrsquos kids have no shoesrdquo
Once yoursquove decided to launch just launch Get going Donrsquot overthink things too much Nothingrsquos set in stone (other than to be a fee-only fiduciary) so therersquos opportunity to refine your business along the wayhellip Donrsquot worry about everything day one
-Jennifer Harper
Upfront Expenses Monthly Expenses
Business Setup
RIA Registration Fee $260
Business Liability Insurance partial year $500
Net Worth Bond Required in Tennessee $15000
Category Total $15760
Marketing
Website Design $2500
Domain Name and Web Hosting 12 months $22 x 12
Marketing Misc $1700
MealsEntertainment $197
Misc $177
Category Total $4574 $264 annual total
Office EquipmentExpenses
Office Supplies $75 x 12
Internet Access $100 x12
Computer $700
PrinterScanner $540
Office Lease partial year $270
BooksEducation $146
Category Total $1656 $2100 annual total
Software
Accounting $341
Financial Planning Software (Advizr or RightCapital) $3600
Document Management System $99
Scheduling Software $190
Encryption ServiceBackup Service $96
Boomerang ndash Productivityworkflow $150
Category Total $4476
Organizational Fees
XY Planning Network Monthly Fee 10 months $409 x 10
Website Link For NAPFAs Advisor Profile $221
CFPreg Certification Renewal $325
Conferences Travel etc $1852
Category Total $2398 $4090 annual total
Upfront Total Monthly Total
Total $28864 $53783
12-Month Total $35318
How Jennifer spent in her first year
Listen
Episode 54 Developing a Financial Literacy Program with Jennifer Harper
2 months of XYPN membership reduced makes the average $53783
Case StudyStone Steps Financial
Scott R Frank CFPreg CFA is the
founder of Stone Steps Financial a
firm created to help young
professionals and families
understand their financial lives and
position themselves to reach their
fullest potential He is highly
trained in the fields of financial
planning and investment
management having earned the
Certified Financial Planner (CFP)
designation as well as the
Chartered Financial Analyst (CFA)
charter in addition to years of
experience at nationally
recognized firms He lives in a little
beach town Cardiff by the Sea
just north of San Diego When hersquos
not geeking out on financial news
or white papers yoursquoll find him
surfing with friends (Stone Steps is
named for a surf break just a few
minutes north of his house)
running along the Pacific Coast
Highway or spending time with his
family
I started my firm with best-in-class software and hardware I didnrsquot want to upgrade down the road I paid for systems that have capacity compared to my needs so I donrsquot have to switch while I am growing my firm I may have waited for performance reporting Orion was a huge expense for a start-up Coming from an established RIA I thought everyone needed performance reporting
What expenses did I have that I didnrsquot anticipate Nothing but thatrsquos because I had a community of advisors who had already done it
Learn how to sell Sales typically has a negative connotation in the fee-only financial planning space Guess what If you canrsquot sell your services you canrsquot have a successful business and most importantly you cannot help those you wish to serve
Be authentic Donrsquot be someone you are not Your success will be determined by your perseverance determination and the financial resources you have to keep the lights on while you scale your business I would suggest you have at least 2 years of cash flow on the sideline to support your life while you start the business I am blessed with a supportive spouse who worked to keep the family fed and clothed while I grew Stone Steps If it wasnrsquot for her Stone Steps wouldnrsquot exist If you are married make sure your spouse is on board and be realistic with your growth assumptions
-Scott Frank
Listen
Episode 49 What it Takes to Start a Firm From Scratch with Scott Frank
Upfront Expenses Monthly ExpensesBusiness Setup
Business Formation $444
RIA Registration Fee $200
Initial Registration and Compliance Assistance $1000
Professional Liability (EampO) Insurance $660
Business Liability Insurance $500
Net Worth Bond Requirement California $12000Tax for LLC in California $800
Category Total $15604
Marketing
Website Design $4800
Domain Name and Web Hosting $110
Marketing Misc $960
Category Total $5870
Office EquipmentExpenses
Office Supplies $500
Computer $1480
PrinterScanner $300
Office Lease $550 x 12
Travel $1600Meal amp Entertainment $1600Category Total $5480 $6600 annual totalSoftware
Schedule Once $190
Windows 365 Last Pass MileIQ Spanning $182
Financial Planning Software eMoney $324 x 12
Orion $83333 x 12
Riskalyze $89 x 12
Google Apps Mailchimp Private Wifi $31 x 12
Category Total $372 $1532796 annual totalOrganizational Fees
XY Planning Network Monthly Fee $409
FPA Dues $399
CFA Dues $375
Website Link For NAPFAs Advisor Profile $210
CFPreg Certification Renewal $325
Category Total $1309 $409Upfront Total Monthly Total
Total $28635 $22363312-Month Total $5547096
How Scott spent in his first year
Sample Templates
Access our templates and customize a budget to meet your individual needs
Click Here ForFirst-Year Budget Templates
XYPlanningNetworkcom
Please note the information in this guide is presented as an estimate only and does not serve as an agreement between XY Planning Network and its members Member benefits and actual costs are subject to change
Case StudyBridge Financial Planning
Jennifer Harper of Bridge Financial Planning began working in the financial services industry in 2000 earned an MBA from the University of Tennessee at Chattanooga in 2001 and became a CFPreg in 2006 In 2005 she began developing a financial education non-profit organization Common Cents Financial Literacy Inc to help guide young people toward an independent and responsible financial future Additionally she is an adjunct Finance instructor at the University of Tennessee at Chattanooga
Looking back itrsquos clear that the saying lsquoyou donrsquot know what you donrsquot knowrsquo is SO true I tried to stay as streamlined as possible while putting more money toward scalability marketing and continuing education Those may have all been areas that I could have saved money on but I would have felt like I was sacrificing some of my vision
Having an online presence was something I initially underestimated Once I started looking at what was possible and how to build and leverage a mission brand and image I got it Some people are comfortable building their own (web)site but Irsquom glad I outsourced it Initially I went with a low cost provider to create a logo business card and letterhead The moment my website developer saw it he said it was terrible and had to go I was defensive at first but the more I listened to why it was so terrible and how it didnrsquot really coordinate with my message it was clear he was right He came up with a much better logo design and now I feel the branding and images are consistent from a design standpoint that I would have never understood before Lesson learned stick with what you know I donrsquot know design
Continuing education is another category I lsquocouldrsquo have spent less on but that mentality is opposite of my mission and vision and I feel strongly that it would be penny wise and pound foolish I have continued to gain knowledge and valuable connections through attending in-person continuing education conferences My first conference fee for NAPFA was generously donated by a NAPFA colleague and it solidified the heart and value of that network to me
Build a buffer into your plan Nothing ever goes exactly as planned There will always be something that comes up that wasnrsquot anticipated Yes I know yoursquore a financial planner but you know the saying ldquothe cobblerrsquos kids have no shoesrdquo
Once yoursquove decided to launch just launch Get going Donrsquot overthink things too much Nothingrsquos set in stone (other than to be a fee-only fiduciary) so therersquos opportunity to refine your business along the wayhellip Donrsquot worry about everything day one
-Jennifer Harper
Upfront Expenses Monthly Expenses
Business Setup
RIA Registration Fee $260
Business Liability Insurance partial year $500
Net Worth Bond Required in Tennessee $15000
Category Total $15760
Marketing
Website Design $2500
Domain Name and Web Hosting 12 months $22 x 12
Marketing Misc $1700
MealsEntertainment $197
Misc $177
Category Total $4574 $264 annual total
Office EquipmentExpenses
Office Supplies $75 x 12
Internet Access $100 x12
Computer $700
PrinterScanner $540
Office Lease partial year $270
BooksEducation $146
Category Total $1656 $2100 annual total
Software
Accounting $341
Financial Planning Software (Advizr or RightCapital) $3600
Document Management System $99
Scheduling Software $190
Encryption ServiceBackup Service $96
Boomerang ndash Productivityworkflow $150
Category Total $4476
Organizational Fees
XY Planning Network Monthly Fee 10 months $409 x 10
Website Link For NAPFAs Advisor Profile $221
CFPreg Certification Renewal $325
Conferences Travel etc $1852
Category Total $2398 $4090 annual total
Upfront Total Monthly Total
Total $28864 $53783
12-Month Total $35318
How Jennifer spent in her first year
Listen
Episode 54 Developing a Financial Literacy Program with Jennifer Harper
2 months of XYPN membership reduced makes the average $53783
Case StudyStone Steps Financial
Scott R Frank CFPreg CFA is the
founder of Stone Steps Financial a
firm created to help young
professionals and families
understand their financial lives and
position themselves to reach their
fullest potential He is highly
trained in the fields of financial
planning and investment
management having earned the
Certified Financial Planner (CFP)
designation as well as the
Chartered Financial Analyst (CFA)
charter in addition to years of
experience at nationally
recognized firms He lives in a little
beach town Cardiff by the Sea
just north of San Diego When hersquos
not geeking out on financial news
or white papers yoursquoll find him
surfing with friends (Stone Steps is
named for a surf break just a few
minutes north of his house)
running along the Pacific Coast
Highway or spending time with his
family
I started my firm with best-in-class software and hardware I didnrsquot want to upgrade down the road I paid for systems that have capacity compared to my needs so I donrsquot have to switch while I am growing my firm I may have waited for performance reporting Orion was a huge expense for a start-up Coming from an established RIA I thought everyone needed performance reporting
What expenses did I have that I didnrsquot anticipate Nothing but thatrsquos because I had a community of advisors who had already done it
Learn how to sell Sales typically has a negative connotation in the fee-only financial planning space Guess what If you canrsquot sell your services you canrsquot have a successful business and most importantly you cannot help those you wish to serve
Be authentic Donrsquot be someone you are not Your success will be determined by your perseverance determination and the financial resources you have to keep the lights on while you scale your business I would suggest you have at least 2 years of cash flow on the sideline to support your life while you start the business I am blessed with a supportive spouse who worked to keep the family fed and clothed while I grew Stone Steps If it wasnrsquot for her Stone Steps wouldnrsquot exist If you are married make sure your spouse is on board and be realistic with your growth assumptions
-Scott Frank
Listen
Episode 49 What it Takes to Start a Firm From Scratch with Scott Frank
Upfront Expenses Monthly ExpensesBusiness Setup
Business Formation $444
RIA Registration Fee $200
Initial Registration and Compliance Assistance $1000
Professional Liability (EampO) Insurance $660
Business Liability Insurance $500
Net Worth Bond Requirement California $12000Tax for LLC in California $800
Category Total $15604
Marketing
Website Design $4800
Domain Name and Web Hosting $110
Marketing Misc $960
Category Total $5870
Office EquipmentExpenses
Office Supplies $500
Computer $1480
PrinterScanner $300
Office Lease $550 x 12
Travel $1600Meal amp Entertainment $1600Category Total $5480 $6600 annual totalSoftware
Schedule Once $190
Windows 365 Last Pass MileIQ Spanning $182
Financial Planning Software eMoney $324 x 12
Orion $83333 x 12
Riskalyze $89 x 12
Google Apps Mailchimp Private Wifi $31 x 12
Category Total $372 $1532796 annual totalOrganizational Fees
XY Planning Network Monthly Fee $409
FPA Dues $399
CFA Dues $375
Website Link For NAPFAs Advisor Profile $210
CFPreg Certification Renewal $325
Category Total $1309 $409Upfront Total Monthly Total
Total $28635 $22363312-Month Total $5547096
How Scott spent in his first year
Sample Templates
Access our templates and customize a budget to meet your individual needs
Click Here ForFirst-Year Budget Templates
XYPlanningNetworkcom
Please note the information in this guide is presented as an estimate only and does not serve as an agreement between XY Planning Network and its members Member benefits and actual costs are subject to change
Upfront Expenses Monthly Expenses
Business Setup
RIA Registration Fee $260
Business Liability Insurance partial year $500
Net Worth Bond Required in Tennessee $15000
Category Total $15760
Marketing
Website Design $2500
Domain Name and Web Hosting 12 months $22 x 12
Marketing Misc $1700
MealsEntertainment $197
Misc $177
Category Total $4574 $264 annual total
Office EquipmentExpenses
Office Supplies $75 x 12
Internet Access $100 x12
Computer $700
PrinterScanner $540
Office Lease partial year $270
BooksEducation $146
Category Total $1656 $2100 annual total
Software
Accounting $341
Financial Planning Software (Advizr or RightCapital) $3600
Document Management System $99
Scheduling Software $190
Encryption ServiceBackup Service $96
Boomerang ndash Productivityworkflow $150
Category Total $4476
Organizational Fees
XY Planning Network Monthly Fee 10 months $409 x 10
Website Link For NAPFAs Advisor Profile $221
CFPreg Certification Renewal $325
Conferences Travel etc $1852
Category Total $2398 $4090 annual total
Upfront Total Monthly Total
Total $28864 $53783
12-Month Total $35318
How Jennifer spent in her first year
Listen
Episode 54 Developing a Financial Literacy Program with Jennifer Harper
2 months of XYPN membership reduced makes the average $53783
Case StudyStone Steps Financial
Scott R Frank CFPreg CFA is the
founder of Stone Steps Financial a
firm created to help young
professionals and families
understand their financial lives and
position themselves to reach their
fullest potential He is highly
trained in the fields of financial
planning and investment
management having earned the
Certified Financial Planner (CFP)
designation as well as the
Chartered Financial Analyst (CFA)
charter in addition to years of
experience at nationally
recognized firms He lives in a little
beach town Cardiff by the Sea
just north of San Diego When hersquos
not geeking out on financial news
or white papers yoursquoll find him
surfing with friends (Stone Steps is
named for a surf break just a few
minutes north of his house)
running along the Pacific Coast
Highway or spending time with his
family
I started my firm with best-in-class software and hardware I didnrsquot want to upgrade down the road I paid for systems that have capacity compared to my needs so I donrsquot have to switch while I am growing my firm I may have waited for performance reporting Orion was a huge expense for a start-up Coming from an established RIA I thought everyone needed performance reporting
What expenses did I have that I didnrsquot anticipate Nothing but thatrsquos because I had a community of advisors who had already done it
Learn how to sell Sales typically has a negative connotation in the fee-only financial planning space Guess what If you canrsquot sell your services you canrsquot have a successful business and most importantly you cannot help those you wish to serve
Be authentic Donrsquot be someone you are not Your success will be determined by your perseverance determination and the financial resources you have to keep the lights on while you scale your business I would suggest you have at least 2 years of cash flow on the sideline to support your life while you start the business I am blessed with a supportive spouse who worked to keep the family fed and clothed while I grew Stone Steps If it wasnrsquot for her Stone Steps wouldnrsquot exist If you are married make sure your spouse is on board and be realistic with your growth assumptions
-Scott Frank
Listen
Episode 49 What it Takes to Start a Firm From Scratch with Scott Frank
Upfront Expenses Monthly ExpensesBusiness Setup
Business Formation $444
RIA Registration Fee $200
Initial Registration and Compliance Assistance $1000
Professional Liability (EampO) Insurance $660
Business Liability Insurance $500
Net Worth Bond Requirement California $12000Tax for LLC in California $800
Category Total $15604
Marketing
Website Design $4800
Domain Name and Web Hosting $110
Marketing Misc $960
Category Total $5870
Office EquipmentExpenses
Office Supplies $500
Computer $1480
PrinterScanner $300
Office Lease $550 x 12
Travel $1600Meal amp Entertainment $1600Category Total $5480 $6600 annual totalSoftware
Schedule Once $190
Windows 365 Last Pass MileIQ Spanning $182
Financial Planning Software eMoney $324 x 12
Orion $83333 x 12
Riskalyze $89 x 12
Google Apps Mailchimp Private Wifi $31 x 12
Category Total $372 $1532796 annual totalOrganizational Fees
XY Planning Network Monthly Fee $409
FPA Dues $399
CFA Dues $375
Website Link For NAPFAs Advisor Profile $210
CFPreg Certification Renewal $325
Category Total $1309 $409Upfront Total Monthly Total
Total $28635 $22363312-Month Total $5547096
How Scott spent in his first year
Sample Templates
Access our templates and customize a budget to meet your individual needs
Click Here ForFirst-Year Budget Templates
XYPlanningNetworkcom
Please note the information in this guide is presented as an estimate only and does not serve as an agreement between XY Planning Network and its members Member benefits and actual costs are subject to change
Case StudyStone Steps Financial
Scott R Frank CFPreg CFA is the
founder of Stone Steps Financial a
firm created to help young
professionals and families
understand their financial lives and
position themselves to reach their
fullest potential He is highly
trained in the fields of financial
planning and investment
management having earned the
Certified Financial Planner (CFP)
designation as well as the
Chartered Financial Analyst (CFA)
charter in addition to years of
experience at nationally
recognized firms He lives in a little
beach town Cardiff by the Sea
just north of San Diego When hersquos
not geeking out on financial news
or white papers yoursquoll find him
surfing with friends (Stone Steps is
named for a surf break just a few
minutes north of his house)
running along the Pacific Coast
Highway or spending time with his
family
I started my firm with best-in-class software and hardware I didnrsquot want to upgrade down the road I paid for systems that have capacity compared to my needs so I donrsquot have to switch while I am growing my firm I may have waited for performance reporting Orion was a huge expense for a start-up Coming from an established RIA I thought everyone needed performance reporting
What expenses did I have that I didnrsquot anticipate Nothing but thatrsquos because I had a community of advisors who had already done it
Learn how to sell Sales typically has a negative connotation in the fee-only financial planning space Guess what If you canrsquot sell your services you canrsquot have a successful business and most importantly you cannot help those you wish to serve
Be authentic Donrsquot be someone you are not Your success will be determined by your perseverance determination and the financial resources you have to keep the lights on while you scale your business I would suggest you have at least 2 years of cash flow on the sideline to support your life while you start the business I am blessed with a supportive spouse who worked to keep the family fed and clothed while I grew Stone Steps If it wasnrsquot for her Stone Steps wouldnrsquot exist If you are married make sure your spouse is on board and be realistic with your growth assumptions
-Scott Frank
Listen
Episode 49 What it Takes to Start a Firm From Scratch with Scott Frank
Upfront Expenses Monthly ExpensesBusiness Setup
Business Formation $444
RIA Registration Fee $200
Initial Registration and Compliance Assistance $1000
Professional Liability (EampO) Insurance $660
Business Liability Insurance $500
Net Worth Bond Requirement California $12000Tax for LLC in California $800
Category Total $15604
Marketing
Website Design $4800
Domain Name and Web Hosting $110
Marketing Misc $960
Category Total $5870
Office EquipmentExpenses
Office Supplies $500
Computer $1480
PrinterScanner $300
Office Lease $550 x 12
Travel $1600Meal amp Entertainment $1600Category Total $5480 $6600 annual totalSoftware
Schedule Once $190
Windows 365 Last Pass MileIQ Spanning $182
Financial Planning Software eMoney $324 x 12
Orion $83333 x 12
Riskalyze $89 x 12
Google Apps Mailchimp Private Wifi $31 x 12
Category Total $372 $1532796 annual totalOrganizational Fees
XY Planning Network Monthly Fee $409
FPA Dues $399
CFA Dues $375
Website Link For NAPFAs Advisor Profile $210
CFPreg Certification Renewal $325
Category Total $1309 $409Upfront Total Monthly Total
Total $28635 $22363312-Month Total $5547096
How Scott spent in his first year
Sample Templates
Access our templates and customize a budget to meet your individual needs
Click Here ForFirst-Year Budget Templates
XYPlanningNetworkcom
Please note the information in this guide is presented as an estimate only and does not serve as an agreement between XY Planning Network and its members Member benefits and actual costs are subject to change
Listen
Episode 49 What it Takes to Start a Firm From Scratch with Scott Frank
Upfront Expenses Monthly ExpensesBusiness Setup
Business Formation $444
RIA Registration Fee $200
Initial Registration and Compliance Assistance $1000
Professional Liability (EampO) Insurance $660
Business Liability Insurance $500
Net Worth Bond Requirement California $12000Tax for LLC in California $800
Category Total $15604
Marketing
Website Design $4800
Domain Name and Web Hosting $110
Marketing Misc $960
Category Total $5870
Office EquipmentExpenses
Office Supplies $500
Computer $1480
PrinterScanner $300
Office Lease $550 x 12
Travel $1600Meal amp Entertainment $1600Category Total $5480 $6600 annual totalSoftware
Schedule Once $190
Windows 365 Last Pass MileIQ Spanning $182
Financial Planning Software eMoney $324 x 12
Orion $83333 x 12
Riskalyze $89 x 12
Google Apps Mailchimp Private Wifi $31 x 12
Category Total $372 $1532796 annual totalOrganizational Fees
XY Planning Network Monthly Fee $409
FPA Dues $399
CFA Dues $375
Website Link For NAPFAs Advisor Profile $210
CFPreg Certification Renewal $325
Category Total $1309 $409Upfront Total Monthly Total
Total $28635 $22363312-Month Total $5547096
How Scott spent in his first year
Sample Templates
Access our templates and customize a budget to meet your individual needs
Click Here ForFirst-Year Budget Templates
XYPlanningNetworkcom
Please note the information in this guide is presented as an estimate only and does not serve as an agreement between XY Planning Network and its members Member benefits and actual costs are subject to change
Sample Templates
Access our templates and customize a budget to meet your individual needs
Click Here ForFirst-Year Budget Templates
XYPlanningNetworkcom
Please note the information in this guide is presented as an estimate only and does not serve as an agreement between XY Planning Network and its members Member benefits and actual costs are subject to change
