Barriers to Entry include base
expenses. The price of a seat at the table before you even have any money
coming in. The cost of getting out of bed in the morning. In my industry, this
includes professional indemnity insurance, regulatory oversight (to ensure compliance
with financial authorities), and the necessary software to protect client data.
That is just to talk to people. If you want to manage money for them, there is
a whole host of other protections to put in place (custodian banks, accountants,
administrators, lawyers). Like home mortgages, banks lend to people who can
prove they have the money coming in. To get started, you need a cornerstone
client. Someone with money and the problem you know how to solve that can reliably
cover your expenses. Ideally, you could be your own cornerstone. If you had
Capital that reliably covered your base expenses. Without a cornerstone, it is
difficult to build.
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