The goal of most financial advisors is to maximize the growth of their practice. But growth doesn’t happen on its own, says Larry Distillio, assistant vice-president, practice management, at Mackenzie Financial Corp. in Toronto. “You must know your target market and understand your competition,” he says.
Acquiring this knowledge requires a comprehensive evaluation of your operating environment. Without a thorough knowledge of the realities you are facing, you will constantly run into roadblocks and waste valuable time in your efforts to grow your business.
Once you understand your market, you can then put measures in place to deal with competitive challenges, differentiate your business from your competition and realize your growth potential.
Here are some steps you can take to help you achieve growth in your business:
> Know your target market
Different markets have different characteristics. Your first step is to determine the market segment you want to serve, Distillio says.
He suggests you group your clients into categories according to common traits such as social background, wealth and geography. Then, determine which clients you have the most affinity with. This process will give you an idea of where you should concentrate your energies to build out your growth plan.
Find out the size of the total market segment you wish to serve and identify its unfulfilled needs and trends that you can take advantage of.
Find out as much as you can about your “insider clients,” that is, those with whom you have a good relationship. Do they have any specific financial needs? What are their likes and dislikes? What motivates them? What associations or groups they belong to. Do they have friends or associates who are also part of your target market?
“You should always be curious about your client networks,” Distillio says. The information you gather will allow you to reorganize your practice and reposition it to meet your growth objectives.
> Spot your competitors
Identify advisors who offer similar services to yours within your target market and find out as much as you can about them. The more you know about your competitors, the better equipped you will be to face off against them.
> Plan for growth
Create a detailed plan to implement your growth strategy, Distillio says. Conduct a SWOT (strengths, weaknesses, opportunities and threats) analysis of your practice to determine whether you have the resources to execute your growth strategy. Those resources should include your staff, marketing support, systems and funding.
Find ways to take advantage of your strengths and fix the weaknesses that would prevent you from achieving your growth targets. Be sure to establish time lines to track your success.
> Put your plan in place
Establish a repeatable process that simplifies the execution of your plan, Distillio says. Communicate your plan with your team members so that you are all on the same page.
You should be able to tell a consistent story as part of your communication plan — one that will resonate with your target market. Consider attending trade shows, association conferences and other events aimed at members of your target market.
Establish relationships with centres of influence who serve your potential clients, Distillio says. “Ask for introductions.”