Three More Niches Financial Advisors May Want to Consider
Many new entrants to this industry believe it makes sense to ‘cast a wide net’ in the fear that picking a target market will limit business opportunities. But in fact, this is far from the case. The most successful financial advisors are those that focus on a particular niche.
In a recent post we looked at some relatively under-represented niches that could be worthwhile considering. Here are three more to put on your radar.
Major life transitions often beget a need for financial advice and divorce is a major change in circumstances. If you build your service around this area not only can you help make the transition easier for these clients but create a profitable niche for yourself.
Working with people undergoing life transitions requires sensitivity and patience. When recently divorced people come into your office for the first time, they may be vulnerable. They are looking to you for reassurance that you will care about them on a personal level. So, don’t make the first meeting about numbers, make it about you, by expressing your authenticity.
Once you’ve established a working relationship you could offer support in other areas, for example by directing them to sources of information or help groups. This adds another level to your service and makes you stand out, thereby helping to create client loyalty and opportunities for referrals.
#2. Occupational niches
It makes a lot of sense to approach people who work in an area you have experience with. Not only will you have a lot in common with these prospects, but they will be far more likely to take you seriously. Your insider understanding of their outlook, motivations and concerns, will be invaluable when it comes to building rapport and securing their business.
For example, if you have a military background, you’re ideally placed to serve veterans. Even if you don’t have a background in another industry you can still base your niche on a career you have knowledge of. If you come from a family of doctors or your spouse is a college professor, you will have many valuable insights you can use.
#3. Special needs families
According to Investment News fewer than 1000 advisors have expertise in this area yet millions of people have a disability, leaving their loved ones unsure as how to plan financially for their care.
Working with special needs clients can be complex and you will need to master specific financial strategies as well as ask difficult questions around life expectancy. So, this niche won’t suit all advisors. However, the payback can be great. 50% of advisors who dedicate even a part of their practice to this specialty niche say they do so because of the emotional rewards, while others fall into this area to accommodate existing clients.
In summary, if you’re spending time talking to unqualified prospects, you won’t win a high percentage of their business. But if you choose a niche and build your knowledge of this target market, you’ll become the go-to-person for that sector and get more referrals. You’ll also have less competition because fewer advisors will be offering specifically what you’re offering.
Plus, you’ll enjoy your work – especially if your niche plays to your particular strengths and interests.