- 1). Acquire proper industry licenses. Anyone who plans to market, sell or become otherwise involved with securities products, the stock market and certain insurance products is required by law to obtain multiple industry certifications. These certifications differ depending on exactly what area of the investment arena you plan to service. There is also an entirely separate license, a Series 24, required before an individual is permitted to run his own office location. Each license will only be issued after successful completion of an approved exam and, in some cases, a mandatory classroom course. Before conducting business, your firm and its representatives will also be required to get licensed by every state in which they intend to work. Investment and insurance licenses have different costs and requirements; thorough planning is necessary to ensure no laws or regulations are violated by your firm.
- 2). Obtain the proper federal and state business licenses and certifications. It typically makes the most sense to incorporate before starting a company of this type; the acquisition of a Federal Employer Identification Number (FEIN) is also necessary before any wages can be paid to employees. Your state's requirements for the issuance of a corporate tax identification number must be met. Payroll tax arrangements must be made.
- 3). Design your new firm name, logo and branding. Your goal should be an icon that is, after proper marketing efforts, immediately recognizable to average people. It should be professional and stylish, but not flashy or overly dramatic. Your new firm name and logo will need to be approved by the state and your broker-dealer before you are permitted to conduct any business.
- 4). Lease a suitable corporate office space. Decide beforehand whether your firm's primary method of interacting with prospects and clients will be face-to-face or over the telephone. This distinction will have an impact on the size, type and location of the office space you lease, the equipment and furniture you buy and the employees you hire.
- 5). Create stationary, business cards, envelopes and marketing collateral that contain your new logo. The public's perception of your new company will come from their first impressions, which will come from their opinion of your marketing material. Make your brochures, folders and flyers demonstrate professionalism and experience. Signage for your building's lobby and exterior may also be appropriate if you plan to invite clients to your location.
- 6). Purchase software. Aside from the standard office applications required to properly create documents and communicate with employees and clients, several other types of computer programs are necessary to effectively run a brokerage firm; many carry high fees for proper usage and licensure. Customer Relationship Management software becomes more of a necessity as a firm's client base grows; illustration software is needed from every insurance company whose products your company solicits; financial analysis programs are used for comprehensive client situation evaluations; database management software will store and organize client information; accounting and budgeting programs are necessary for the firm's internal operating efficiency.
- 7). Hire personnel. The size and scope of your firm determines how many secretaries, assistants, managers and brokers you will need. Each individual you hire must first pass a background check and screening process according to industry standards, and their fingerprints will be kept on file with the FBI. Strict regulations are in place regarding what is acceptable in a potential employee's background. Regulators will not risk allowing a person of questionable character access to confidential identity documents and financial information.
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