5 Important Tips for Financial Advisors Looking to Grow

Seeing tangible growth in your business is immensely satisfying, but it takes strategic planning on your part to generate real results. Financial services is a competitive industry, and if you’re a smaller, independent firm, it may be difficult to gain your footing. Let’s look at some financial advisor tips for growth you can begin implementing today.

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5 Financial Advisor Tips for Steady Growth

Growing as a financial advisor is like building a house — it’s important to start with a solid foundation. With that in mind, here are some practical tips and strategies you can apply to your business to help fuel sustainable growth.

1. Define What Growth Means to You

What does growth look like for your business? How you answer this question matters as you set your growth targets.

Typically, financial advisor growth metrics center on three things:

• Assets under management (AUM)
• Client acquisition
• Annual revenue

If these things are your growth focus, define them in specific terms. For example, your annual growth targets may look like this:

• 10% increase in AUM
• 20 new clients added to your book of business
• 15% increase in revenue

Drilling down on your metrics and goals gives you a framework for the rest of your growth strategy.

2. Market for Maximum ROI

You might dedicate a sizable chunk of your working hours to marketing, but those efforts could be wasted if you’re focused on the wrong platforms.

The key to choosing the right marketing avenues lies in getting to know your ideal clients. That means understanding not only their financial pain points, but what types of marketing strategies are most likely to resonate with them.

For example, if your ideal clients are:

• Young doctors who are looking for advice on how to build wealth while repaying student loans, LinkedIn could be fertile ground for generating leads.
• Mid-career couples with kids, you might invest in Google ads and search engine optimization (SEO) to drive traffic to your website.
• Retirees who are concerned with wealth preservation, you may try Facebook ads or go offline with direct mail marketing campaigns.

Developing buyer personas can help you decide where to turn your focus. A buyer persona is a hypothetical example of who your ideal client is demographically and financially. You may need just one persona if you serve a single niche, or multiple personas if you work with different types of clients.

You could also consider partnering with an advisor marketing platform to increase your visibility online. SmartAsset AMP, for example, helps to match RIAs with leads and equips them with the tools they need to nurture those relationships. If you know exactly who you want to serve, this could be an effective way to connect with them.

3. Cultivate the Client Experience

Here’s one of the most important financial advisor tips for growth: Deliver a superior client experience.

Why? Because clients who are not only satisfied with the advice you give, but feel valued as individuals, are more likely to remain loyal to your firm and, more importantly, to refer their friends and family to you.

How do you get those referrals to start rolling in? Again, it’s all about elevating the client experience.

Some of the ways you can do that include:

• Taking a client-centric approach to everything you do on the front and back end of your business.
• Utilizing technology to offer a digital onboarding experience or secure client portal for added convenience.
• Being consistent with your messaging, communication and services so that your clients know what to expect.
• Showing your appreciation through client events, greeting cards or thoughtful gifts that reflect the client’s interests or hobbies.
• Making personal connections through conversations that touch on more than just the client’s portfolio.

Referrals can be worth their weight in gold, whether you’re just starting out or you run an established advisory business. Generating referrals is one of the most cost-effective ways to market, and it has the potential for a higher conversion rate compared to other marketing tactics.

4. Build Community

One of the most impactful ways to attract new clients and grow your business is to put yourself in front of prospects as often as possible. You can show a little of your personality while sharing what you do, while prospective clients get a chance to see your human side and develop an initial impression.

If you need ideas for how to increase engagement, consider these options.

• Local events. Participating in local events is a chance to meet face-to-face with prospective clients while demonstrating your commitment to the community. For example, if you’re hoping to add more high-net-worth clients to your roster, you might attend local charity galas or auction events that attract a philanthropic (and wealthy) crowd.
• Seminars and workshops. Seminar marketing can be invaluable for growth if you’re focusing on topics that your ideal clients want to learn more about. You can host live seminars in-person or online or record an evergreen seminar that prospects can access by joining your email list. The most effective seminars or workshops leave prospects eager to hear more from you and are primed to schedule a chat.

You can also work on expanding your professional network and building centers of influence (COI). That means forgoing relationships with other financial professionals, such as insurance brokers, estate planning attorneys and accountants who may be inclined to refer clients to you. Just remember that these relationships are not one-sided, and usually have an expectation of reciprocity on your part.

5. Find a Mentor

Having a senior advisor who’s willing to share their knowledge and expertise with you is yet another way to crack the growth code. Learning from the challenges they faced and the missteps they might have made can help you avoid those same obstacles in your growth journey.

If you’re not sure where to look for a mentor, consider your network. You may know someone, either directly or indirectly, who is open to a mentoring relationship. If your network is on the smaller side, consider how you can put yourself out there.

That might include:

• Attending financial advisor conferences
• Joining alumni or professional associations
• Getting involved in your local chamber of commerce
• Reaching out to advisors on LinkedIn and social media

What if you don’t turn up any potential candidates? You could try the National Association of Personal Financial Advisors (NAPFA) Mentor Engage program. Once you enroll, you can search for advisors who are interested in getting paired with a mentee.

Bottom Line

Financial advisor tips like the ones shared here can help you scale and make measurable progress toward your goals. Remember that the most essential element your plan requires is patience, as you may need to go through some trial and error to find a growth formula that works for you.

Tips for Growing Your Advisory Business

• Online marketing holds virtually limitless possibilities for advisors who are willing to embrace it. Partnering with an advisor marketing platform can help you increase your digital footprint without taking time away from your current clients. SmartAsset AMP (Advisor Marketing Platform) is a holistic marketing service that financial advisors can use for client lead generation and automated marketing. Sign up for a free demo to explore how SmartAsset AMP can help you expand your practice’s marketing operation. Get started today.
• As you work toward growth, consider how you’ll track your progress. Reviewing key performance indicators (KPIs), for instance, can help you monitor your firm’s growth evolution.

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