The Entrepreneur with a Charter

If you’re reading this, you may be thinking about the CFA® designation and what it can do for your career. Or you might already be a candidate pursuing the charter (and you’re taking a study break, right?). Either way, you deserve a sincere pat on the back right now. The path to the charter is grueling. If you’re considering it, be informed that candidates make huge sacrifices to put in the hours and effort required to succeed. Families and friends feel the sting, too. It’s achievable, but it’s not easy.

So it makes sense to step back from time to time and remember why you’re doing this in the first place. Thousands of working professionals seek out the designation to move up in their current organization. Students and career-switchers start the process to stand out as they pursue investment-related positions. You may be a member of one of these camps, and I’ve got to say, the numbers support your thinking. According to CFA Institute, there are about 135,000 charterholders across the world, and the majority are currently employed in the occupations shown here:

That’s an encouraging list of impressive professions. The overall trend is clear: If you want to manage or provide research and advice about investments, M&A, or business strategy, holding the charter opens very important doors. For this reason, thousands of people aspiring to financially oriented positions sign up to pursue the charter every year.  

The Charter and Your Professional Career

Committing to the CFA Program means you’re very serious about your career goals. And there’s little doubt the designation will boost your chances of landing the position you want. However, there are no guarantees that you’ll be offered any promotion or new position, even after you get the charter. After all, the field of finance remains fiercely competitive. And if you do get a job in the industry, you may come to find (months or years later) that you’ve hit a roadblock professionally or the job isn’t a good fit.

Considering Entrepreneurship

For some—maybe even you—entrepreneurship is the answer. To be sure, the meaning of the term entrepreneurship is broad. Entrepreneurship applies to every industry and can describe the efforts of sole practitioners or large teams. When many think about entrepreneurs, they conjure images of people hustling to bring a product or service to market. It’s typical to envision harried founders putting in long nights of work, managing razor-thin bank account balances, and delivering make-or-break pitches and client presentations that might determine their very survival.

But we don’t necessarily think of CFA charterholders as entrepreneurs. That’s natural. Often, starting and owning a small business doesn’t require any specific qualification, much less the charter. Even so, you may daydream about starting your own investment-related firm. That siren call of entrepreneurship may sound at the beginning of your career or during the middle of it. Either way, the literature is pretty much silent about the benefits of holding the charter as an entrepreneur. So you’re left to wonder how the charter can help small business owners.

How the Charter Can Help Entrepreneurs

Any good business owner will probably tell you that the two prerequisites are a good idea and perseverance. But that same owner has to evaluate and tackle corporate investment decisions from the outset. Cash and company assets have to be managed eventually, along with employee retirement plans. And, if the actual business is centered on investment-related services in the first place, its owner must face internal and external challenges that are directly related to finance.

There’s clearly a need for financial expertise in the operation of any business, so really there’s a place and need for a charterholder in any entrepreneurial enterprise. That’s a heartening idea, especially when you consider a place like the United States, whose job market remains dominated by small businesses and entrepreneurs.

Entrepreneur, CFA

Of course, entrepreneurs can obtain, find, or hire financial expertise in many other forms. What, then, are some specific qualities that a CFA charterholder brings to the table as an owner or as a member of an entrepreneurial enterprise?

Firstly, the Candidate Body of Knowledge places a heavy emphasis on ethics and integrity. You are tested on ethics as a candidate, and your ethical track record is monitored as a charterholder. Out of the gate, CFA charterholders have a well-learned and well-practiced mandate to place their clients’ interests above their own, which translates into stellar customer service at the small-business level.

Also, charterholders have been trained to think rigorously and analytically. In general, successful entrepreneurs are regarded for their ability to wear several different hats, make decisions quickly, and juggle the many things requiring their time and attention. These traits are indispensable to entrepreneurial success. But if you can combine these qualities with the deep, critical thinking and analytical skill set possessed by a CFA charterholder, you can empower a business to make more informed investment decisions and increase efficiency and effectiveness internally and externally.

Last but not least, holding the charter enhances the credibility of the entrepreneur or small business in several very critical areas. Customers take your product or service pitch more seriously when they see the letters “CFA” after your name on a business card. Lenders, investors, and capital providers have more confidence in your projections and business plans. You have an entire network of more than 135,000 CFA charterholders who share your values and will recognize and resonate with your level of ambition and work ethic. These fellow charterholders will be inclined to act as a reference for you or your product, and you’ll also have the support of CFA Institute and its marketing prowess.

Final Thoughts

This list of benefits is not exhaustive. As an entrepreneur, I can assure you that my charter has meaningfully helped my own businesses in ways I’m still discovering. That said, the entrepreneurial career path is fraught with dangers and challenges that cannot be mitigated by any formal designation or education. And I’m certainly not suggesting the CFA designation is a prerequisite to becoming a successful entrepreneur. Success as a small business owner requires—first and foremost—passion, imagination, courage, and a willingness to experience many hard lessons in real time. And, of course, there are portions of the entrepreneurial journey that cannot be taught or anticipated.

But armed with the charter, I believe any entrepreneur possesses significant advantages in several key areas, including business operations, relationship development, internal and external investment decision-making, and client service. Hopefully, as you’re making your way through the CFA Program, you’ll be encouraged by the idea that your newly acquired skill set is adaptable to many pathways, including entrepreneurship. And if you’re still deciding whether the charter is worth it, don’t forget about its potential impact on that small business idea you’ve been cultivating. Take comfort in the fact that your charter will always be an asset, whether you pursue a corporate tack or strike out on your own. I wish all readers the best of luck. Now get back to studying!

About the Author

Michael Bowen, CFA, is an entrepreneur, venture capitalist, real estate developer, and financial adviser. He started his career as an analyst in the investment management arm of a large insurer. Today, he enjoys combining his financial acumen and small business skills in the pursuit of profitable and creative investments for clients and his company.