Having a niche market means that you’re targeting a specific section of your available clients.
“A niche is more than just a target market, it’s about positioning yourself and your firm to attract and hold onto clients facing specific challenges – and it’s essential to growing your financial adviser practice”, Hannes van den Berg, CEO of Momentum Consult explains.
In a recent LinkedIn post, Van den Berg shared how research backs up this theory. One of the benefits of finding your niche as a financial advisor is that marketing is easier. Without a niche, marketing is too widespread and too general, which actually limits the content you can put out.
Another benefit is that you can reduce your competition. If you look at the financial advisor industry as a whole, it’s incredibly competitive. By focusing on a single target market, however, you cut out the bulk of your competition in a single move.
Van den Berg further discusses some ideas to help narrow down your specific niche.
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Another important consideration is the impact of the ever-increasing regulatory burden on advisers. Line of business, product specific and CPD are but three Fit and Proper aspects aligned to your product offering. Becoming a specialist, rather than a general practitioner, will also ease your regulatory compliance.
