Expanding your business into other areas can improve your service to clients and increase your revenue. But it’s a decision that requires a commitment.
“Any time you can add something to what you’re giving your clients, there’s a value to it,” says Rosemary Smyth, a business coach with Vancouver-based Rosemary Smyth and Associates.
Perhaps you are a financial planner who wants to add insurance to your product shelf, or an investment advisor who wants to provide financial plans.
Before you go through the effort and expense of acquiring the necessary training and designations, here are some ways to help you determine whether you really need to add those services:
> Ask your clients first
Speak to your clients to gauge what new services they may be looking for. If you’re an investment advisor, are they interested in insurance? Estate planning advice?
A formal survey can give you a good understanding of the services your clients want, says Julie Littlechild, president of Toronto-based Advisor Impact Inc. “It can help prioritize and help you map out a plan as to whether [the new service] is going to be something that’s of real value.”
Informal surveys, client interviews and client focus groups are other ways to help you find out which services may be needed, Littlechild says. Be cautious, she warns, because these methods provide only a very select sample and may not give a full picture of your client base.
> Follow your interests
Branching into other areas can take a lot of time and money, so make sure you’re going into an area you like.
“It has to be something that you’re interested in doing,” says Smyth. “If you really enjoy the insurance part and don’t want to do mutual funds or you’re not sure about the equities side, it may not be the best thing.”
> Talk to specialists in those areas
If you work with a firm that includes specialists in the areas you are considering, speak to them about the pros and cons of working in those areas. Specialists can give you a sense of what that business is really like, Smyth says: “They’re working in those particular areas all the time and are really up to date with what’s going on in their fields.”
Talking with advisors and other professionals who specialize in those areas also presents the opportunity to set up a referral network — which could be an alternative to providing the services yourself, says Smyth. With referral relationships, you can provide clients with those services by referring them to the appropriate specialists.
> Consider the technology
New areas may require new technology. For example, software programs are an important part of financial planning, Smyth says, and you will have to be prepared to learn how to use it.
> Be realistic
If you’re thinking of adding new services, be honest about what you’re capable of accomplishing. Factor in the time it would take to become capable of delivering these services and the possible impact on the quality of your business.
“You must be very clear that the client is going to get a great experience,” Littlechild says, “so you’re not going to spread yourself so thin that it creates a bad service experience.”
IE