Small-business owners represent a lucrative market for financial advisors. Capitalizing on this important sector requires specialization and networking.
There is a strong need for financial advice among business owners, says Nathalie Tremblay, a health insurance product manager with Desjardins Financial Security in Montreal.
These tips can help you add business owners to your book of business:
> Ask for referrals
If you already have a few business-owner clients in your book, approach them for introductions to other business people, Tremblay says.
> Choose your niche
Small-business owners are a market, not a niche. Define exactly what type of business owner you want to serve.
“Small business is a pretty vast sector of the economy,” says Steve Mitten, president of acoach4u.com in Vancouver. “There are more than five million businesses in Canada.”
You can define your ideal small-business client by industry, number of employees or revenue.
> Create your brand
Develop a professional image and specialized services — such as succession planning or group benefits — that suit your target business owners.
Your corporate image and business trademark should communicate brand that resonates with your target market, says Tremblay. For example, if you are targeting software entrepreneurs, you should appear progressive and high-tech; if you are going after autoparts distributors, you should emphasize conservatism and stability.
“If you don’t have a professional image and something that says what you can do for [business owners],” Tremblay says, “you won’t be successful.”
> Build a network
Research the business associations and community groups frequented by your chosen group.
Before joining an association or charitable organization, talk to representatives of that group to find out whether it’s the right fit for you, Mitten says. For example, if you’re thinking of joining your local Rotary Club, call the president and ask about the organization. Ask about the group’s activities and who is involved. Also, find out whether any financial advisors are involved in the organization.
Play to your strengths when building your network. Be sure to enroll only in community groups in which you have a personal interest. That way, you are more likely to meet fellow members — and potential clients — who share your interests. Let the business contacts flow from there.
If you want to give back to the community, donate time or money to a charity that interests you and may be related to your target market. If you like to play sports, look for organizations that hold events such as golf tournaments, Mitten says.
“Look for ways that you can give of yourself to build your network,” Mitten says, “to reinforce the qualities you want to be known by.”
> Create a referral network
Small-business owners often have complex financial situations. To serve them, you will need to build a team of experts to handle their needs.
While your job is to identify client issues, you don’t have to provide all the answers, Tremblay says. Contact tax specialists, accountants and lawyers who can provide services to your clients as needed. These professionals might in turn refer clients to you.
> Remain patient
Building relationships with small-business owners takes time. So, be patient!
Tremblay gives the example of an advisor who recently made a large insurance sale after working with the client on their investments for 12 years.
IE