Growth Strategies For Financial Advisors
Financial advisers may be busy helping clients achieve their long-term financial goals day to day, but planning for the future is an important way to ensure a firm’s long-term success. Without proper planning, financial advisers can get stuck in the everyday rut that makes it difficult to grow revenue and expand over time. Here are five strategies to grow your financial advisory firm.
#1: Carve Out a Niche
Many financial advisory firms provide a broad array of services to their clients in order to address the largest possible market. While this strategy is effective in making just about anyone a potential client, you’re competing with every other financial advisory firm in the market with very little differentiation.
Becoming an expert in a niche market — such as serving retired athletes or the tech community — is often a better approach. By developing domain expertise in a small niche, you’re able to differentiate yourself from others, face less competition, command greater loyalty, and potentially justify higher fees.
#2: Forge Great Relationships
Referrals from existing clients are one of the best ways for financial advisers to drum up business, but most firms are content delivering standard services and reactively waiting for any referrals. Over time, these behaviors can lead to competition cannibalizing your client base.
By going above and beyond expectations, your clients are more likely to become brand ambassadors for your firm and offer up unsolicited introductions. According to several studies, the majority of people trust referrals from people they know, which means that referrals can be a great way to build a client base.
#3: Don’t Compromise on Price
Price is a contentious issue when running just about any type of business, particularly businesses where clients have many choices. In the financial industry, many advisers are concerned about raising prices for long-term clients, despite adding new services over time that justify higher prices.
By clearly identifying how you’re helping clients achieve their long-term goals, price shopping becomes more difficult to quantify and there’s less client backlash from raising prices. The key is highlighting the ways in which your firm goes above and beyond typical services and achieves greater long-term value for clients.
#4: Maintain Branding
Many financial advisers working with smaller firms tend to have pretty relaxed rules surrounding branding. For example, a financial adviser with an outdated LinkedIn profile could be sending the wrong message to clients by failing to indicate that they’re working with a given financial advisory firm.
By keeping websites, social media profiles, and other digital profiles up-to-date and consistent, clients can be more confident in the financial advisory firm and its employees and partners. Maintaining an informative blog can also help grow an audience and brand awareness over time.
#5: Prefer to Be Unique
Many financial advisory firms provide standardized services with very little differentiation from others in the industry. While client outings to grab dinner or go wine tasting provide great networking opportunities, there are many ways that financial advisory firms can go above and beyond.
By limiting clients and avoiding large and impersonal events, financial advisers can avoid occasions where people feel forced to network. Financial advisers should also be sure that at least a quarter of participants are strong advocates that are likely to talk up the business to prospective clients that have been invited.