'Massive demand' to learn about setting up Paraplanning firm
The Paraplanning profession has hit its highest point yet, an IFP board member believes, with "massive demand" from professionals to learn how to set up their own Paraplanning business.
Richard Allum expects the profession to keep on growing after finding huge interest from those wanting to establish their own company.
He ran a workshop last Thursday for budding entrepreneurs about setting up an outsourced Paraplanning firm and was so swamped with requests that he was unable to accommodate everyone who wanted to attend.
He announced more events will be organised, including one in London, to meet the large demand.
Mr Allum, founder of the burgeoning Paraplanner Powwow movement, said: "We could've had twice as many with the number who wanted to come along.
"It was a real diversified bunch of people, some who had been working with other people for a number of years, some people working on their own and some employed Paraplanners wanting to go it alone."
Two IFAs and a life company employee wanting to set up their own Paraplanning business also attended. Mr Allum said there is an incredibly bright future for the profession.
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He said: "Paraplanning numbers have grown in the last three to five years and now it's recognised as career in its own right, and that it can be very rewarding.
"People are maybe looking at things in a different way and saying 'I want to do it myself, I want to strike out on my own'. This pool of talent is the future for Financial Planning in this country."
With the Powwow movement flourishing and expanding and so many potential new Paraplanning businesses in the offing, Mr Allum said: "It's the high point so far (for the profession in the UK) but we haven't reached the ultimate high point yet. The trajectory is very positive."
While a number of new businesses could be created he also expects some consolidation in the Paraplanning sector in coming years, with some larger firms taking over smaller ones, and possibly some mergers.
Mr Allum opened up his own company, The Paraplanners, for the workshop, which was free of charge.
He said there was "nothing off show" to the guests, including looking at systems and processes. Various subjects were discussed, with talks from different members of staff covering legal and accountancy elements.
He said: "One of the most common questions was 'why are you doing this?'
"I always believe in giving back when you can. When I started out there was nobody doing what we're doing and I wish there had been, so I could've become successful more quickly and there would've been a lot less stress.
"There's a Kevin Spacey quote which sums it up: If you're lucky enough to do well, it's your responsibility to send the elevator back down."
Mr Allum explained that the workshop was helping to fulfill a pledge he made when elected to the IFP board to help advance the Paraplanning profession.