Start small with few clients and ask for a minimum of $10000 requirement because of the 5% rules.
See it? 5% x $10000 is $500. Alright. Open a business bank account. Never put those funds in your own bank account because you will be sending out monthly or quarterly statement. After you have been making your clients very happy for two years or so you can expand and take on more clients. Within the first two years, limit the number of clients.
May be seven or 12 clients. Are you greedy? Do not push it too far if you are alone and just get started. One is focusing on building a lasting foundation instead of building on the sand. Right? I think so.
That first step will determine how long you keep your reputation intact.
Keep learning. Do not stop learning. Learn like there is no tomorrow. Check on your competitor and be well informed. Be honest with the clients like if they are your wife.
Never lie to them. Do not hide anything from them. Have a trigger alert. You must inform a client if he has lost twenty five percent of the initial investment. Or ask them, when should you inform them about losses apart from the regular statements.
So, start small for two years before expanding. Expand only if you have been successful in the first two years. If not, give back the funds, and go back to the drawing board. Define the average term of the investment from the get go. Alright, you get it.
Last point be sure to put in the same minimal capital like the clients. That helps to gain more trust. So you are in it together to lose or win.
As a beginner fund manager trading and investing for others, you may skip asking for the entry fees right away. After two years of success and experience, feel free to ask for the entry fees that are adequate.
Do not forget to state how much commission you will take from profits. Is it 3%, 4% or 7%? The decision is yours. Do not ask for 50% though.