Building a financial practice can be extremely lucrative and meaningful. Through your own work, you can establish a legacy for yourself, your family and your entire staff. Building a rewarding financial practice, regardless of size, that endures and continues to grow successfully, requires that you achieve several things right. Here are 5 important aspects to consider:
1. Delivering Differentiated Value to a Target Audience
Differentiated value means specialized information that may not be easily accessible, requires training or specific experience. This expertise when focused, offers superior value that your clients, new and potential ones, value. Any business large or small, typically starts to lose its competitive edge when they spend too much time worrying about their competitors or attempting to reach the broadest audience, thereby no longer offering significant, differentiated value. The second part of this equation is defining your audience and selecting an appropriate niche.
In choosing a niche group, look for an audience whose problems and needs you can identify with and help; an audience that has enough assets to become profitable clients; and one that you can reach effectively through your marketing. This audience must also not be oversaturated with too many advisors either. Your niche group must be able to relate to you and you, to them. Ideally, you also start out with several existing clients in this niche group so you can build from there on out.
2. Define Your Business - Why Work with You?
After choosing your audience, define your business. What exactly are you offering them? What problems are you solving? Why do people want to do business with you? This last question is fundamental and helps you determine the focus of your business. Too often businesses focus on selling their existing products and services for immediate return without looking at growth opportunities and what exactly people want. The primary focus of your business must always be centered around satisfying customers. This approach helps you to continue to grow and thrive, recognizing new opportunities and leveraging tools, products and services to your benefit, instead of being stuck selling something that has become outdated due to growth in the market with better solutions. Your goal must thus always be to offer the best solution for your customer.
3. Identify Target Clients
The next step is identify actual target clients within your desired niche. How many assets potential clients have may help you narrow your selection, but you also have to consider aspects like trust, respect and attitude because you are putting in a lot of time and effort. You want to work with clients who you can work with for the long term.
4. Become a Safe Choice
You must become a safe choice for your new clients through positioning as a credible specialist. This can take some time but it is worth the effort. You can establish credibility through your marketing efforts in person, offline and online.
- Blogging Seminars
- Ads in publications
- Articles in publications
- Your website
- Your social media
- Speaking at an event
- Attending events with your niche audience
- Prospecting directly to your audience
For example, if you write articles for a financial publication or speak at a local event, or host seminars, that can establish your brand and credibility as a financial expert. A quick way to get traction is through a blog that you maintain regularly. Also if you can market directly in publications, associations and centers of influence for your distinct niche, you can build credibility and find new clients at the same time!
As you can see, building your financial practice is not just prospecting directly, but entails clear thinking and preparation ahead of time so that you are well positioned and become a valuable expert that your potential clients seek out.