Venture concept No. 2

Venture Concept No. 2: Specialized Financial Advising

My innovation is one that is scaled to a national level by big name financial advising firms but it has not yet been scaled down to local subsidiaries of bigger companies. This is exactly my opportunity. My idea is that to bring the robotic financial advisers into a business that highlights more personal interaction than that of a bigger chain advising firm such as Charles Schwab.

 These Robotic advisers are the new age of adviser. They are bringing in many tech-savvy millennials into the business and this greatly increases market potential. My market will be that of the Orlando area in which I believe the market for financial services is large and ever-growing with the rise of new sports teams in the area as well as the potential for more. Demographically this area is very diverse and my business would appeal to mostly younger but some older who could use financial advice in regards to loans, mortgages, investments, etc.

Customers are currently satisfying this need through standardized local firms or national chains in which the level of service is not nearly as personal or effective. With my company, you can enter the investment world into a very safe environment guided by the robo-adviser for the short term to get your feet wet and then ultimately once you feel comfortable, riskier, but more profitable investments can be pursued if one’s liking chooses to. The customers will only be loyal to their current advisers if the current adviser has a leg up in investment advice and services offered and I believe that our services offered will well exceed customers’ expectations to the extent that they will migrate to my services.

The opportunity is really unlimited as the Florida marketplace, in general, is very fast-growing and so could my business seeing it does well in the Orlando area. The window of opportunity is within the next 5-6 year as a lot of millennials will be graduating and looking for sound investment advice in order to repay student loans and start saving their money which they worked so hard to earn in the first place.

My business plan will be that of taking .5-1% fee cut of total assets managed under both the robo-advisers and our personal services. This .5-1%, in most cases, will be much less than that of the returns which our clients will hopefully see through the sound advice of our hard-working staff and robots. The percentage cut we take will depend on the size of the individual assets under our services on an individual client basis.

This new breed of adviser, the Robo adviser, works very simply and functionally. The ones that exist among national chains have that of two preferences for each client to fill out; risk tolerance and financial goals. It will then factor these things into your current investment and diversify you into a diversified platform of electronically traded funds(ETF’s). It will then use such strategies as tax-harvesting to make your returns as efficient as possible hopefully yielding at least a small return each day.

The only competitors are not at a local scale and lack the personal touch that my company will have. By this I mean, the chains have the same type of robo-advisers but they do not use them in complete tandem with a personal investment adviser like we will. We will assign each client a personal, board-certified adviser to go over and explain results of the robo-adviser routinely. This will ensure maximum clarity and help the clients learn about the process and become more competent investors themselves.  I hope to gain a good hold on the local market before I can start expanding, ultimately with the goal of one day becoming one of these national chains, but yet still preserving the same personal and caring nature that we will work so hard to maintain.

Hopefully my business venture is able to more effectively provide services through consistency and with help from the robo-advisers in significant if enough of a fashion in order to gain a competitive advantage over the competition itself. I am confident that with the right application of the 2 types of advisers in tandem that we can achieve our goal and then expand into new markets and spread our knowledge of the financial world with them and help them grow into retirement easily and comfortably.

2) Provide a summary of the feedback you received from your previous venture concept description. 

-The feedback i got was overwhelmingly positive as they said my post was detailed and well thought out. The actual only piece of constructive criticism I received was to clarify the relationship between the robo-adviser, adviser and client and I did that in the section about competitive advantage.

3) Describe how you changed your venture concept, based on what you learned from the feedback.

-I did not change much as I received all good feedback. I did clarify a few things such as the interactions between robo-advisers and advisers as requested in my feedback. Other than that, no changes were made. 

That's all the time I have for today,

Mitch