Can You Take Your Clients With You?
The initial startup costs and the ongoing expenses you’ll have to carry every month may become more than you can afford. Theoretically, you’ll be starting out with zero clients and zero dollars in revenue. Expect that it will take time before you generate enough clients and enough revenue to support your business. Meanwhile, you’ll incur a lot of expenses to generate those clients. Having enough startup capital is essential for your venture’s survival.
Brokers can position themselves to make the change if they have a large book of clients they can take to their new firm. However, most employers make you sign a non-compete agreement if you’re going to work for their brokerage firm. They don’t want you to take clients or proprietary information with you when you move on.
You can make a good case for taking your clients with you if the brokerage firm didn’t fully train you and open your accounts. A brokerage firm that pays for leads and covers all your expenses will have a good argument against you, but if you brought clients in through personal relationships and paid for some of your own expenses without signing a non-compete agreement, you might be successful.
Opening a commodity brokerage firm involves a lot of planning and upfront decision-making. It’s relatively easy to start, but
being successful on an ongoing basis is the real challenge. Review all the pros and cons and make an honest assessment of your situation before you make a decision. Source:https://www.thebalance.com/
