Financial advisors may be busy every day to help clients achieve long-term financial goals, but planning for the company’s future is also an important way to ensure long-term success. If you don’t plan well in advance, financial advisors may get caught up in their daily work, making it difficult to increase revenue and expand their business over time. Without growth, the divested old customers will not be replaced, and the business will be taken away by competitors.
You can use the following five key growth strategies to help ensure the success of your financial consulting company in the future.
- Like any business, financial advisors need to continuously expand their client base to stay ahead.
- Without growth, consultants may fall into routine and lose their enthusiasm for work.
- Here, we outline five smart strategies that focus on growth to ensure long-term success.
1. Open up a niche market
Many financial consulting companies provide their clients with a wide range of services to deal with the largest markets. Although this strategy can effectively turn almost anyone into a potential customer, you are competing with all other financial consulting companies in the market, and the difference is small.
Becoming an expert in a niche market—for example, serving retired athletes or the tech community—is usually a better approach. By developing domain expertise in niche areas, you can more easily distinguish yourself from others, reduce competition, gain higher loyalty, and possibly justify higher fees.
2. Establish a good customer relationship
Recommendations from existing customers are one of the best ways for financial consultants to solicit business, but most companies are content to provide standard services and passively wait for any recommendations. Over time, these actions can cause various types of competition to eat away at your customer base.
By exceeding expectations, your customers are more likely to become brand ambassadors for your company and proactively provide introductions. According to multiple studies, most people trust recommendations from people they know, which means that recommendations are a good way to build a customer base.
3. Don’t compromise on price
When operating any type of business, especially when customers have multiple choices, price is a controversial issue. In the financial industry, many consultants worry about raising prices for long-term customers, although new services have been added over time to justify these higher prices.
By clearly determining how you are helping customers achieve their long-term goals, price shopping becomes more difficult to quantify, and customer rebound from raising prices will be reduced. The key is to highlight the way your company goes beyond typical services and achieve greater long-term value for customers.
4. Develop the company’s brand
Many financial consultants who work with small companies often have fairly loose rules on branding.
For example, financial advisors with outdated LinkedIn profiles may send wrong information to clients because they failed to indicate that they are working with a given financial advisory company.
By keeping the website, social media profiles, and other parts of your digital presence up to date and consistent, clients can have more confidence in the financial consulting company, its employees, and partners. Over time, maintaining an informative blog or publishing educational content to media channels such as YouTube can also help increase audience and brand awareness.
5. Build a unique and loyal network
Many financial consulting companies provide standardized services that are almost indistinguishable from other companies in the industry. Although customers going out for dinner or wine tasting provide great social opportunities, financial consulting firms can surpass in many ways.
By limiting clients and avoiding large and non-personal events, financial advisors can avoid situations where people feel compelled to socialize. Financial advisors should also ensure that at least a quarter of the participants are strong advocates, and they may talk about business with invited potential customers.
Financial consulting companies face a lot of competition, so it is important to focus on expanding their client base. By keeping these skills in mind, financial advisors can ensure the long-term success of their company.