How much start up capital?
Hello all! I am also in the interview process with Edward Jones in a very rural part of the country. I have about 40,000 saved up and zero debt, (house, cars and credit cards all paid off). Will this be enough to make it in an area where smaller accounts are a given? On the outside, there doesnt appear to be too many financial advisors in the area.
Any valuable advise is greatly appreciated. Thank You!
Do you have an equity line of credit on your home?
If not, get one. You'll need it.
The LAST thing you want to do is compromise your enviable financial position. Although you can expect to spend some of your savings on marketing, make sure you start with small amounts and MEASURE its effectiveness. For example, it's easy to spend a $1,000 per month on mailings, but it won't necessarily bring people to your door.
Try different marketing techniques and spend a little money on each one. Then select which two or three techniques work best for your area and spend a little more money on each one. By this time, your successful marketing techniques should begin to pay for themselves.
If you've depleted your savings, trying to make a living at this business, don't be tempted to access the equity in your house! If $40,000 can't get you off on a good foot, nothing can.
Your reserves are more than adequate; your success will be dependent on how you approach the endeavor. If you are a fast learner, work hard, learn from failure and repeat your successes, you shouldn't make much of a dent in your savings....that's assuming you don't have a ton of overhead built in to your lifestyle.
I think it's a good goal to avg 3k/mo in commissions the first year (so 5k total gross income) and then 5k/mo the second year (no salary, so maintaining the same income). This certainly is not what the avg new Jones IR does, but it is achievable...if you are far behind those targets, the business might not be your calling. The "avg" for the year will skew towards the end of the 12 mo period as you gain momentum (ie you may only gross 2k in month 1, but hopefully by month 10-12 you're more like 10k; similarly, month 24 should be better than month 13).
You would be better off selling agricultural lubricants - at least your client base would need that stuff!
[quote=Lance Legstrong]You would be better off selling agricultural lubricants - at least your client base would need that stuff! [/quote]
lol...certainly better than getting it 'no lube'...
Here's another question for ya......
If you don't make it, will they come after you for the training costs?
My neighbor growing up went with Ed Jones and moved to a relatively
small town of 7,000. In the town there were 2 banks and neither
had a brokerage department. In the second year his income was
less than $30k. By the end of the second year one of the banks
had contracted with a financial planning firm and set them up with an
office. My friend finally got himself up to $45k in income and
they opened a second Ed Jones office where his old office had been -
killed his income. The next year they opened a third
office. Be aware that this can happen.
In your situation, I would seriously consider what the alternatives are
for your model. 0% of your clients are hiring Ed Jones, they are
hiring you. There might be a better model for you to look at.
Like anything else, your start up capital is going to depend on your expenses and how well you start out with jones. I think personally 40k is enough.