Becoming a specialist

Although a niche strategy can limit the number of clients you target, such a strategy gives you the opportunity to differentiate and establish yourself as an expert to your clients, says Raymond Yates, financial advisor and senior partner with Save Right Financial Inc. in Mississauga, Ont.: “This, in turn, can give you a competitive advantage in the particular space.”

Here are some steps to take to build your business niche:

– Research your niche

You must know your niche inside out, including its size, needs, values and what makes it tick, Yates says. He recommends compiling as much information as possible about the attributes of your niche. Then, ask yourself two questions: is the niche large enough to support the growth of my practice; and, do I have the skills, resources and capacity to serve my targeted niche?

Hussain suggests that you consider having a “core niche” as well as a “subniche” to serve the same target group. For example, if you choose the high net-worth market as your niche, you may be required to provide services such as tax and estate planning. In such cases, you may wish to establish reciprocal relationships with lawyers and accountants, he says, who can help you meet those needs and also provide referrals.

– Become known as an expert

“You must love your niche and have a desire to work with it,” Yates says. “Clients like working with advisors who understand them, their lifestyles and the challenges they face.”

Jonathan Rivard, financial advisor and regional leader with Edward Jones in Richmond Hill, Ont., caters to the agriculture sector, which makes up 80% of his book. “You must be passionate about working with [your niche],” he says. “You cannot fake it.”

Enhance your knowledge by staying abreast of developments in your niche, Yates says.

Adds Rivard: “Your clients will develop a sense of familiarity when you demonstrate that you know something about them.”

This can lead to more ideal referrals and increased business.

– Join associations in your niche

Become part of your niche’s community, Rivard says: “You get an opportunity to meet and talk, establish relationships and learn about the opportunities in your niche, as well as its common concerns and challenges.”

Yates suggests sitting on relevant boards and committees and volunteering your services.

– Use targeted marketing

Promote your services using marketing methods that are effective with your targeted niche. Rivard builds his client base by networking with accountants and lawyers who work within his niche. “Associate with people who can be your advocates,” he says.

In addition to using centres of influence, Hussain recommends using LinkedIn and other social media platforms to promote yourself.

“Any financial advisor can market to a target group,” Rivard says. “But just throwing money at a niche does not mean you will be successful. It’s all about relationship building with your niche.”

Hussain also recommends contacting professionals who have expertise in your niche to help you brainstorm marketing ideas to help you to develop and refine your targeted marketing strategy.

– Participate in niche events

You can increase your visibility within your niche by hosting or participating in events that appeal to that niche. For example, you may want to sponsor a booth or speak at an event relevant to members of your niche.

Yates also recommends making presentations at relevant events or writing articles for specialized publications or websites.

If you do take these routes, Hussain recommends against promoting products.

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