This week in his column for ThinkAdvisor, Joe Elsasser, CFP®, talks about how the biggest pitfall for niche financial planning firms is expanding to a parallel niche without the processes and systems in place to be able to provide the same level of service you do now.
"But what really defines a niche practice and will regularly present challenges to advisors is saying no to people who are not your ideal client, even if they represent substantial potential revenue. Sometimes an inbound inquiry from a near-fit but lucrative potential client flags a transition point for your business — an opportunity to expand to a parallel niche. Other times, it represents a very real trap. When you expand into adjacent niches before really owning the initial niche you planned to develop, you dilute your value proposition and push yourself back toward the generalist practice. "