When many financial advisors start their own advice-based entrepreneurial business, they make the mistake of trying to work with every client they can find. If they are operating from the scarcity mindset, they may think that turning down any client is a bad idea because they don’t know if they’ll be able to replace them. This is, in nearly every case, a bad way to do business. From a marketing standpoint, when you try to appeal to everyone you most often end up appealing to no one. From a business perspective, taking every client who shows interest is a good way to develop a stressful career that is overloaded with PITAs.
So what’s the answer? I’ve found that developing a strategy based on who you want to work with before you begin marketing and building your business is extremely helpful. When we fail to plan, we usually plan to fail, and that is as accurate in building a seven-figure business as it is anywhere else in life. Are you ready to identify your niche so you can start building your business the right way? Here are some tips that will help you do so.
What Stage of Life Are You In?
Potential clients who need financial advice generally fall into a few different categories depending on their stage in life. Millennials need help with budgeting and paying off student debt while those in their 30s and 40s are probably focused on building wealth and paying for upcoming college expenses. Then you’ve got your business owners and those who are reaching retirement age. One of the best ways to determine which group you most want to work with is to look in the mirror. If you’re a millennial, it’s very likely you’ll have better luck advising your peers than you would trying to mentor those in their 60s who want to wrap up their careers and enjoy the good life.
Who Do You Relate Best To?
Having a successful career based on mentoring is all about being able to relate to your clients and empathize with where they are in life. In many cases, as I mentioned above, this works best with those who are in similar stages of life. However, you may find that you relate best to other groups of people. I’ve known male advisors who are much better mentoring single women than they are couples or men. I’ve also known older advisors who love the challenge of working with those who are just beginning their careers. Once you identify the group of people you relate best to, you’ve probably also identified your perfect niche.
At What Stage Are the Majority of Your Current Clients?
If you’ve been in the business for a while, it always helps to look at your current list of clients. Do many of them fall into the same category? Do you get more satisfaction working with some groups as opposed to others? Do those in a certain stage of life seem to gravitate toward your style of advising? The past can be an effective clue to the future if you know how to interpret it correctly.
Do You Have a Way to Reach Your Niche?
Before you completely settle on your chosen niche, you need to make sure you have a way to reach these clients. Sure, you may want to work with millionaire business owners, but if you don’t know any of them, this is unlikely to be successful. Take a look at your referral network and the ways in which you normally meet potential clients. Do you have access to those you want to work with? Do you have connectors who can introduce you to potential clients in this stage of life? If you find a niche you enjoy and also have an effective pipeline to get you in front of those people, you have a winning combination.
An excellent way to set yourself apart as an advisor is to narrow your focus and really hone in on those you work best with. Identifying your niche will not only boost your marketing efforts, but it will also help you create a business that is as fulfilling as it is successful. Want more advice on starting your own advice-based business? Please reach out so we can talk more.