Practically every financial advisor has his or her own “natural market ” — that segment of the market with which you share common ground.
Identifying your natural market is a growth opportunity you might be overlooking, says George Hartman, managing partner with Accretive Advisor Inc. in Toronto.
“There is an advantage to working within a market with which you have some familiarity.” Hartman says. “[With this group] you speak the language, understand the issues and have some presence and credibility.”
The following advice can help you identify and work with your natural market:
> Refer to your mission statement
Your natural market should come into focus when you write your mission statement, says Sara Gilbert, founder of Strategist in Montreal.
Think about what you want to accomplish through your practice, Gilbert says. And be specific.
For example: “I like helping people find solutions to problems” is not enough.
Instead, decide why you decided to become an advisor, beyond your product offering.
Perhaps you wanted to incorporate your personal values as part of your practice. That message will resonate much more with a prospect who shares your beliefs.
> Name your top 100
Ask yourself: “If I were getting married today, who would be the 100 people I would want to invite to the ceremony?”
That mental process, Hartman says, can get you started on defining your natural market.
Once you have picked out that top 100, let these people know that you have entered the business and would like their input on what they would expect from an advisor.
You might be able to convert a handful of them into clients later on — but don’t push it.
Says Hartman: “I always recommend to new advisors, ‘Don’t contact your natural market with the view of trying to sell them something right away.’
“People are very willing to help a friend,” he adds. “But not do business with them right away.”
> Express yourself
Building upon your natural market is a matter of cultivating productive relationships, says Michael Apollo, a mindfulness and emotional intelligence specialist in Toronto. And that means expressing your values to your prospects.
That may be difficult at first for young advisors and those entering the business as a second career.
“People are hesitant at the beginning because they don’t have the experience,” Hartman says.
Approaching your natural market — as opposed to those with whom you have little in common — can reduce that feeling of apprehension.
So, Hartman says, don’t be shy. Tell people about the work you are doing.
This is the second article in a two-part series on finding your natural market.