Find a niche and become an expert in it.  For example: 401k rollovers, 10b5-1 plans, company defined contributions, profit sharing, estates, foundations.  You need something that is going to define you.  Be careful to not become too much of a specialist, because just like a securities portfolio, your book will benefit from diversification.

Friends and family are a place to start.  It is vital for your business and your personal life that you perform very well on their accounts.  That doesn't mean great returns-performance, rather it means proper risk management and goal achieving.  Fee-based business may be a very attractive route there.  The real value of friends/family, though, is as a network. 

You need to enlist their help to get the word out that you can bring value in an area.  As I previously stated, hopefully that area happens to be a specific niche that this network will demand.  Another example: if your parents are retiring and they have a large network of friends and contacts who are also at/nearing retirement, you may wish to become an expert in the ends-outs of retirement rollovers. Your parents may give you one account, but their network may give you 5.  And that may branch-out to a dozen more. If you are satisfying your clients, you should ask them for references. 

I know many folks who started in the business and after a few years had $50MM assets under management (AUM).  They did this by leveraging their immediate contacts.  One of their stipulations to new clients was that they expected referals as part of their compensation.  People are happy to give referals if you are doing a good job.  As you grow your business, your smaller accounts may eventually be transferred to someone who can show them better attention, as you begin to focus on the large clients, but when you're getting started they may be all you have. 

Less common: a broker may have a single, huge client, and the assets of that client immediately establish their business.  This is a luxury that is not the norm.  If you fit into that category, you have bought yourself a lot of time.

[quote=Shmer33]

Correct me if I am wrong:

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Advisors at SB, Merrill, and UBS target high net worth clients.   

Where does Morgan Stanley fit into the picture? The average broker has 472 accounts under management.  

[/quote]

MS is taking the same approach as SB, ML and UBS. That's an interesting number for average accounts, what's your source?

Smart Money Magazine. 

[quote=Shmer33]

Smart Money Magazine. 

[/quote]

Yeccchhh, financial porn.. well, I'd like to see that sort of info so I'll have to buy some latex gloves, some strong soap and I'll read it. Thanks.

usafa93:

Friends and family are a place to start.  It is vital for your business and your personal life that you perform very well on their accounts.  That doesn't mean great returns-performance, rather it means proper risk management and goal achieving.  Fee-based business may be a very attractive route there.  The real value of friends/family, though, is as a network. 

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I would not recommend handling the accounts of family and friends; especially, if you're just starting in the business. You're going to make some errors, in investment selection, in the beginning. Better those errors not involve the accounts of people you're close to. Practice your investment skills on the public, not family and/or friends.

Another reason not to open family and/or friend accounts (just as you're starting out): suppose you can't make it in this business. So, you're fired (which is embarrassing enough), then your accounts are divided up among your remaining, former co-workers. Then Joe (The Weasel) Stockbroker calls your best friend and tells him/her that the mutual fund YOU put them in is a dog and gets them to switch to another one with 5.5% front-end load.

You know that Joe just ripped-off your best friend and you try telling them. But your best friend won't listen to you; afterall, you couldn't make it in the business.