Have you graduated with a specialization in finance? Most fresh graduates can’t wait to jump into the corporate world. They look for jobs in multinational companies to earn lucrative returns and make a name for themselves. While it may sound like a wise decision, not every person likes the idea of corporate slavery. So, why not start a business in the finance sector? After all, there are many opportunities to build and innovate something creative in the finance industry.
People who have excellent communication skills with financial know-how can open consultancy or advisory firms. Likewise, you could start a credit repair or debt reduction service to help individuals suffering from a financial crisis. Having your own business will give you the flexibility to choose clients and contracts, fostering profit maximization. If you are uncertain about this, let us help you in this entrepreneurial journey.
Here we are highlighting the five most lucrative financial business ideas for 2021.
1. Open an Auditing Firm
Nowadays, the demand for financial services is overgrowing. Multinational corporations and small businesses look for external auditors to get an insight into financial performance. So, how about you open an auditing firm? You can bring a team of chartered accountants on board and use your connections in the industry to secure auditing contracts. However, you have to be extra vigilant in this type of business since you would be managing companies’ confidential financial data.
First, ensure the systems and accounting software use encrypted servers to close doors for data breaches. Second, understand why is cyber security important and deploy security protocols to keep the hackers away. Having a robust IT infrastructure with top-notch cybersecurity measures will strengthen your business model while protecting data.
2. Start a Credit Repair Business
Nowadays, the demand for credit repair businesses is skyrocketing. Most people have a low credit score, making it impossible to acquire funding. Well, you can help out these people by assisting them in raising their credit scores. These financial services would entail disputing inaccurate negative information from the client’s credit report. In short, you will have to communicate with credit bureaus, lenders, and collection agencies on the customer’s behalf.
Moreover, you have to lay out all procedures and policies so that customers understand your business without setting unrealistic expectations. Once the business interface is ready, cover all the legal requirements to start the venture. Credit repair businesses need special licenses in some states; hence, make sure you have all the paperwork ready.
3.Become a Financial Consultant
Financial consulting is another thriving and profitable business in the finance sector. You would offer consulting services to corporate clients and small businesses. From budgeting, investments, funding, to savings – the consulting services are super versatile. If you have expertise in investment banking, find some clients from the banking industry. Similarly, you can even offer financial consulting services to the government if you are up-to-date with economic policies.
Besides this, the consultancy business has incredible growth prospects. You can expand your services by offering tax consultancy, debt management, or other in-demand financial services. For instance, you can survey to determine what kind of financial services people want. Alongside expanding your target market, these growth-hacking strategies can boost business profitability.
4. Launch an Investment Club
Surprisingly, you would come across many people who want to invest their money but don’t know how? Here, opening an investment club could be a perfect choice. You can follow a business model similar to mutual funds, where everyone will pool in their funds for investment. As a finance expert, you can put that money in the stock market, real estate, securities, or financial instruments to generate money. Likewise, you can distribute the returns according to everyone’s investment ratio and charge a fee for your financial services.
Otherwise, you can take a percentage from the returns generated on the investor’s income. It will increase your income potential and motivate you to find lucrative investment options. Above all, opening an investment club is ideal for getting people to participate in the financial services industry.
5. Start a Microfinance Bank
Do you enjoy working in the banking sector? If so, consider opening a bank yourself. Starting a commercial bank will require hefty capital, but you can always kickstart with a microfinance bank. In addition to securing other’s cash and commodities, you can provide small business owners access to capital. Perhaps, you can introduce credit lines, loans, and insurance policies specifically for emerging entrepreneurs. Since microfinance loans don’t have collateral requirements, you can charge high-interest rates and enjoy lucrative returns.
In addition, you can provide micro-savings accounts under the microfinance umbrella to foster long-term investments. Also, avoid putting any conditions on these saving accounts and let open these accounts with no minimum balance. Once your microfinance bank starts thriving and has gained the client’s trust, feel free to turn it into a commercial bank. It will expand your business while boosting revenues and profitability.
The finance industry is snowballing. From new services to models – you can explore endless business opportunities in the finance sector. Lookup for in-demand financial services and carry out exhaustive research on your business model. It would ensure you don’t leave any stone unturned while starting the business. Most importantly, ensure the business model aligns with your interests and expertise so that you enjoy working.