As the number of financial planners continues to grow, it is important to distinguish your practice from among the herd. Financial advisors must establish a niche to truly differentiate themselves and serve clients within those niches. With the market of available clients expanding it is impossible to serve every prospective client well. Establishing a niche for your practice will help you become an expert on the financial pain points and needs of the clients you are servicing.
How to Choose your Niche Market
Often times your niche may be a result of the interests or commonalities of the clients you already serve, or the demographic surrounding your practice. If your current clients aren’t pointing you in the right direction, look to your own experiences. Challenges you may have faced and overcome in the past can help to identify similar challenges clients might be facing.
Your passion could also be your niche. If you are passionate about helping the local school district, make it your niche. Instilling your passion into your business will help you enjoy your daily work, will create a positive relationship between you and your clients, and will likely create a more successful practice overall.
Before committing to your chosen niche, consider the market size, value and scope of the specialization. Once you have identified your niche, make sure to obtain the relevant designations that apply to it. Some designations may cover a wide array of topics, but not in great detail, such as CFP. While others may cover only a few topics but in great depth, such as RICP (Retirement Income Certified Professional).
How to Market your Niche
Education can be a powerful tool when marketing your niche. Consider offering free webinars and creating thought leadership content to tout your specialty. This type of value-add can help build your brand and establish you as a leader in your niche market segment. Make sure to put this thought leadership content on your website and social media to help potential clients find your practice.
Sometimes the best marketing practice to help establish you in your niche is networking. For example, you can partner with an accounting firm that specializes in serving the clients you are targeting. However, the best way to market your niche is to simply serve your clients in the best way possible. Word of mouth is a powerful force. If your brand is strong enough, the clients who fall into your niche will eventually refer you to others.
If you are just starting to find your niche, or you don’t have a well-established business base, it may be beneficial to find a mentor in the segment you wish to pursue or try a coaching program. Talking to a coach about the specific clients you want to target and building your practice around them can help you weed out the noise and hone in on your business goals.
In summary, finding a niche for your practice can help your firm stand out in the crowd. By enabling your practice to have a more focused view, you should be able to attract the specific clients with whom you want to work. Use your expertise to your advantage. Create thought-provoking content and distribute it on your social media platforms. And lastly, serve your clients to the best of your ability so they will keep coming back and will eventually tell a friend.
To find out more information on this topic or how SFA Partners can help your business, please email us at email@example.com or call at (888) 447-2444.