Yes, it all starts with your track record. A verifiable track record is normally fine to start (Having the ability to print out monthly statements from the clearing firm that can't be altered). I would not spend money on an audit unless investors demand it. Then most managers, that don't know if they can raise AUM fast, start with Separately Managed Accounts (SMA). Investors prefer to have their own account to view on a daily basis with new managers. As to if you need to be a RIA in your state for that, you will have to consult an attorney or the Securities division of your state for clarity.
What you need to understand if you move in that direction, is that wealthy investors invest in the manager, his strategy and a business. They are turned off by an individual trading on their own. They want to know there is a business behind it all. A common question is, "what is his back up if something happens to him".
We work with managers looking to do just this. We don't put up capital, but as Introducing Brokers we help our clients built a business and when possible, help raise money in the future. Cap-intro is not our primary business, but we do what we can to help our clients grow. What we are good at is the guidance along the way.
