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. (For more, see: Money Habits of the Millennials.)
#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. (For more, see: Financial Advisors Need to Seek Out this Group NOW.)