How Do We Close the Opportunity Gap for Women-Owned Financial Planning Firms?

The time has come: You are finally ready to start your own financial planning firm.

Perhaps you want to enter a new phase of your professional career, one that better meets your needs — whether it’s more fair compensation or a healthier work-life balance. Maybe you’re motivated by the flexibility and freedom that come with being your own boss.

No matter what is driving your decision, we commend you for taking the leap. At Equita Financial Network, we meet women just like you every single day — aspiring firm leaders who are creating their own path to independence.

Of course, that path is filled with both opportunities and hesitations: How do you leave the security of your paycheck, while supporting your personal and business expenses? Will your clients want to continue working with you once you’ve left your current firm? How do you find the solutions you need to run your business effectively? We know these feelings well, because we’ve been there before.

Getting access to the right resources and support can be a difficult undertaking for any business owner who is just starting out — but research shows it can be significantly more challenging for women.

The Opportunity Gap

Inside and outside of the financial services industry, the data proves that women are natural entrepreneurs. Between 2007 and 2016, women started businesses five times faster than the national average, according to a report commissioned by American Express OPEN. The research also shows that compared to men, women also reinvest more of the profits they earn from their businesses back into their communities and families.

All great news, right?

Underneath that progress lies a critical issue: access. Women business owners still struggle with securing the resources they need to launch their enterprise and foster future growth. For context: Only 2.2% of all venture capital in the United States goes to companies founded solely by women. What’s more, just 2% of women-owned businesses make it to $1 million in revenue — 3.5 times less than their male peers.

While there are many systemic factors that have contributed to the access issue, we can’t help but think of the network piece — the closed communities and barriers to entry that exist for women in the workplace, especially in spaces dominated by men.

In previous blog posts, we have often repeated the old adage, “It’s not what you know; it’s who you know” — and in the world of female entrepreneurship, this couldn’t be more accurate. The marked increase in the number of women business owners has signaled a need for outlets that provide women with opportunities to learn from one another — to share stories, solutions, and most importantly, resources, that can fuel their path to growth and success.

Why Collaboration Wins — and How Firms Fall Short

We can personally attest to the power of collaborative outlets for women. Prior to establishing Equita, our founders, Bridget and Katie, were busy leading their own financial planning practices. After bonding over similar career experiences, they wound up collaborating with each other on a few client cases, which led to mutual success. Bridget and Katie soon discovered that by leveraging each other’s unique abilities and resources, they were able to run their businesses more efficiently and spend their time focusing on what mattered most to them, both personally and professionally.

What resulted was a rare and wonderful combination of community and accessibility — and thus, the concept of Equita was born. We believe there is something truly unique in having a network that allows for support, collaboration, connection, and education, while providing all of the resources one could need to run their business, on their own terms.

In recent years, it has become clear that the industry is catching up and understanding the unique challenges female planners face. Some firms have even ramped up recruiting efforts to attract next-gen women to the field, but there’s still a critical missing piece:

These efforts fail to empower women who are already in the industry with the resources they need to stay and succeed.

This is where a network created by women — for women — can make all the difference.

We See a Better Way

Today’s female firm leaders certainly need practical business solutions to achieve success and face challenges head on — from compliance support, to technology, to portfolio management. But beyond those solutions, we at Equita believe there’s an even greater value that comes with fostering a community that women can rely on — one that empowers women to fuel each other’s success, advocate for each other, and feel supported at every stage of their business.

Ultimately, this is how we’ll close the opportunity gap once and for all. It’s like the late Hazel Hawke once said: “Women’s networks are a necessary part of life. A mixture of empathy and brainstorming can move mountains.” Let’s move mountains and seize success, together.

Are you interested in learning more about Equita’s platform? Get in touch with our team today.

Subscribe To Our newsletter

Equita Financial Network, Inc. (“EFN”) is a registered investment adviser offering advisory services in the State of California, the State of Minnesota, the State of Missouri, the State of Pennsylvania and in other jurisdictions where exempted. Registration does not imply a certain level of skill or training. The presence of this website on the Internet shall not be directly or indirectly interpreted as a solicitation of investment advisory services to persons of another jurisdiction unless otherwise permitted by statute. Follow-up or individualized responses to consumers in a particular state by EFN in the rendering of personalized investment advice for compensation shall not be made without our first complying with jurisdiction requirements or pursuant an applicable state exemption. All written content on this site is for information purposes only. Opinions expressed herein are solely those of EFN, unless otherwise specifically cited. Material presented is believed to be from reliable sources and no representations are made by our firm as to another parties’ informational accuracy or completeness. All information or ideas provided should be discussed in detail with an advisor, accountant or legal counsel prior to implementation. Click here for our Privacy Notice.

Privacy Notice

We recognize the importance of protecting our clients’ privacy. We have policies to maintain the confidentiality and security of your nonpublic personal information. The following is designed to help you understand what information we collect from you and how we use that information to serve your account.

Categories of Information We May Collect

In the normal course of business, we may collect the following types of information:

  • Information you provide in the subscription documents and other forms (including name, address, social security number, date of birth, income and other financial-related information); and
  • Data about your transactions with us (such as the types of investments you have made and your account status).

How We Use Your Information That We Collect

Any and all nonpublic personal information that we receive with respect to our clients who are natural persons is not shared with nonaffiliated third parties which are not service providers to us without prior notice to, and consent of, such clients, unless otherwise required by law. In the normal course of business, we may disclose the kinds of nonpublic personal information listed above to nonaffiliated third-party service providers involved in servicing and administering products and services on our behalf. Our service providers include, but are not limited to, our administrator, our auditors and our legal advisor. Additionally, we may disclose such nonpublic personal information as required by law (such as to respond to a subpoena) or to satisfy a request from a regulator and/or to prevent fraud. Without limiting the foregoing, we may disclose nonpublic personal information about you to governmental entities and others in connection with meeting our obligations to prevent money laundering including, without limitation, the disclosure that may be required by the Uniting and Strengthening America Act by Providing Appropriate Tools Required to Intercept and Obstruct Terrorism (USA PATRIOT) Act of 2001 and the regulations promulgated thereunder. In addition, if we choose to dispose of our clients’ nonpublic personal information that we are not legally bound to maintain, we will do so in a manner that reasonably protects such information from unauthorized access. The same privacy policy also applies to former clients who are natural persons.

Confidentiality and Security

We restrict access to nonpublic personal information about our clients to those employees and agents who need to know that information to provide products and services to our clients. We maintain physical, electronic and procedural safeguards to protect our clients’ nonpublic personal information. We respect and value that you have entrusted us with your private financial information, and we will work diligently to maintain that trust. We are committed to preserving that trust by respecting your privacy as provided herein.