Hidden Value is a column in ThinkAdvisor where Joe Elsasser, CFP®, answers common questions with insights that advisors and their clients may not have considered. This week, Joe discusses the benefits of choosing a niche for your financial planning practice.
According to recently survey by TD Ameritrade, niched advisor practices showed 35% higher client growth, 25% higher revenue growth and 17% higher profit margins than non-niched financial planning practices. As the industry gets more competitive the advisors who will thrive are those who niche their practice and tailor the client experience to the niche they've chosen.
"In order to better serve the clients in your specialty, you must be willing to forfeit the potential for business from individuals outside of your niche. It is impossible for an advisor to be an expert in every single aspect of the financial planning industry. Advisors who act in the client’s best interest should recognize that their 'headspace' is limited and that those who chose a niche are more likely to have the ability to master the financial planning process for their specific clientele."
Read the ThinkAdvisor article in its entirety.
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