Buying a business in the financial services industry will require some specific skills. Whether you are thinking of running your own accountancy firm, a credit and finance company or even a bookkeeping service, some form of training or qualifications will be necessary.
This sector can be a very attractive one to entrepreneurs, though, because of its room for growth and therefore success. This, however, is a well-regulated sector so will need to be careful to dot your i’s and cross your t’s!
Sector overview
- The financial sector in Canada has been a prominent source of growth for the country’s economy.
- Consumers in this sector want streamlined customer experience.
- Rising interest rates are going to change the way consumers think.
- More people are wanting to save and prepare for the future.
- There is an increased demand for financial services to cater to specifically for small businesses.
Starting out
If you are starting out in this sector it can be very difficult to build up a client base. Buying a business with an already established client list can be a great way to circumvent this.
Before making any move towards getting into this sector, though, you will need to have a clear idea of what you are going to offer your customers. Who will your clients be? What are you going to offer? Will you be fee-based or work on commission?
Types of businesses
There are a lot of directions that you can go within this sector. Some of the obvious choices are accountancy firms or credit and finance companies. Running a micro-finance bank will require a great deal of start-up capital, for example.
If you are a chartered accountant, you may be looking to run your own auditing firm. Many businesses will be looking for an outside auditing firm to help them with their accounts.
You need to thoroughly research your competition before deciding on the kind of business that you want to buy. You will want to find one that does not have too much competition. There are plenty of niche areas that you can fill.
Relationships and trust
Most importantly in this sector are the relationships that you build. When it comes to people’s money, there needs to be no doubt that your customers can trust you. The reputation of you and your business, therefore, needs to airtight.
Many millennials and Gen Z’s have lost trust with the bigger banks and firms and so there is a lot of room for your smaller business to fill the void that is created by this. You will need to make sure that your business strategies are aligned with more ethically focused goals and practices.
Is this sector for you?
You should thoroughly understand finance if you are going to go into this sector. Experience, training and qualifications are usually a must. Be ready to spend your days looking for new clients and marketing your business on top of the actual financial services that you provide.
