In an article for Investopedia, Justin Kuepper shared some strategies for financial advisors to grow their practices. This type of planning is important to ensure that daily activities are aligned with your long-term financial goals as well as your client’s. Without consistently investing in these efforts, it’s likely that your practice will start to erode as clients who leave are not replaced.
Instead, advisors should focus on carving out a specific niche such as focusing on a particular community, industry, or demographic. This will lend more expertise and credibility and lead to more curiosity and comfort from clients and prospects. You will also have less competition and be able to develop a brand which can be difficult given that financial advisors offer many of the same services.
The next growth strategy is to provide exceptional service to your clients as it can lead to referrals which is the most effective form of marketing. Some advisors make the mistake of focusing too much on new business and see high rates of attrition when existing clients don’t feel valued. Putting these strategies in place also means that advisors don’t need to compromise on price as they will be offering a premium, differentiated service.
Finsum: Growing a financial advisory business takes planning and strategic thinking. Here are some tips to ensure success.