Growing a thriving advisory business takes patience and planning. A slow and steady approach can help you win the race, if you have a plan to follow. We’ll show you how to grow a financial advisor business using measures that are both actionable and impactful.

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How to Grow a Financial Advisor Business (Actionable Steps)

It’s natural to spend time thinking about your business and what you want to achieve, but your thoughts will only get you so far. There comes a point when you have to act if you want to see tangible results.

If you’re ready to move from the planning stage to doing, here are some of the most helpful things you can do next.

Dig into Your Book of Business

Your book of business can be a wealth of information you can use to grow if you’re tracking key performance indicators (KPIs). As you review each client account in your book, ask yourself:

Does this person represent your ideal client?
What services do you currently provide?
Where are the areas of opportunity to provide additional services or advice?
How likely is this client to refer their friends and family to you?
Are there clients who may be a mismatch for your firm?

The purpose of this exercise is to put your business in perspective and identify what may be hindering your growth.

For example, perhaps you have a few clients you don’t feel fully aligned with. You might weigh whether it makes sense to refer them to another advisor who can better meet their needs. It might seem counterintuitive, but doing so could allow you room to seek out the ideal clients you most want to work with.

What if you’re getting few or no referrals from clients? That’s a sign that you’re not meeting your clients’ needs on some level. You can follow up on your book of business analysis with another actionable step: surveying your clients.

Having clients complete an anonymous experience survey can shed some light on their level of satisfaction with your services. You can then use the results to flesh out additional action steps.

For example, you might:

Revamp your communication policies to ensure that client calls or emails are returned promptly.
Use tech tools to improve client experience with digital onboarding or a secure client portal.
Develop a referral program to encourage clients to tell others about your business.
Host a client event to show your appreciation.

Review Your Offerings

Your clients are your clients because of the problems you help them solve, but consider this: What other solutions can you provide?

Developing a new offering can help you generate additional revenue from the clients you have while attracting new ones. Analyzing your book of business is one actionable way to determine what gaps you might be able to fill with new services. But another is simply asking your clients.

For example, say you have a client with assets held away. You might offer a complimentary portfolio review, which could lead to a conversation about bringing those assets under your management.

Or perhaps you have clients who are entering their 50s. Retirement may be a few years away, but it’s not too early to start a conversation about long-term care planning, annuity planning or estate planning.

Before implementing a new offering, ask yourself:

Is there a need/demand for it?
Does it add value to what you’re already doing for your clients?
What will it cost to implement and what is the expected ROI?

Build Centers of Influence (COIs)

An advisor creates a plan for how to grow their firm.

Who you’re connected to can make a significant difference in your firm’s growth. Your network can open opportunities for partnerships or collaborations, which could help you gain exposure to a broader audience of potential clients. You can also cultivate centers of influence that could lead to more referrals.

For example, say that you’re interested in making a shift toward affluent or high-net-worth clients. Estate planning attorneys, CPAs and philanthropic consultants could all be highly valuable additions to your centers of influence. These individuals can be an excellent source of referrals and a complement to the services you provide.

How do you build centers of influence? It’s all about networking, which may include:

Attending financial advisor conferences or industry trade shows.
Leveraging LinkedIn or other social media platforms to make connections with other professionals.
Participating in seminars, workshops or other events that bring together advisors and other financial services professionals.
Attending community events that are likely to attract professionals you’d like to connect with.

Look at your calendar and ask yourself where you can fit in time for networking on a daily, weekly or monthly basis. Scheduling dedicated time to build connections, either online or in person, ensures that this action item isn’t neglected.

Scrutinize Your Marketing Plan

Marketing is a must in the competitive advisory landscape. If you don’t have a defined marketing plan yet, then it’s time to consider making one. If you do have a marketing plan in place, ask these questions:

Does your firm have a clear brand statement and vision?
Does your messaging speak to your ideal client and their specific needs/challenges?
Which social media channels generate the most/least engagement?
How many visits does your website receive monthly?
Where does your website rank in local searches for terms like ‘financial advisor near me’?
How many subscribers do you have on your email newsletter list?
When you send out email newsletters, what percentage of recipients open the message? What percentage click through the message to your website?
How many media mentions does your firm receive weekly or monthly?
If you’re investing in digital ads, how much are you spending and what are those ads generating in terms of visits to your website or consultation calls scheduled?

These kinds of questions are designed to help you dig into the numbers behind your marketing.

For example, if you’re using social media to promote your firm, take a good look at how often you gain new followers, which of your past posts have gotten the most/least traction and how often engagement on one platform leads to interactions on another.

If your posts get little engagement, the next action step is determining why. Possible culprits may be poor or inconsistent branding, an inconsistent posting schedule or content that simply doesn’t speak to the interests or needs of your target audience.

Developing a just-right marketing formula can take time. And while you’re working out the kinks, you might consider a more immediate solution for improving your firm’s visibility. Partnering with an advisor marketing platform or a marketing agency are two investments you might consider making if you’re ready to fast-track lead generation.

Bottom Line

An advisor reviews a plan to grow their business.

Most professionals don’t start out knowing exactly how to grow a financial advisor business. They learn through experience, which often involves some trial and error. The action steps shared here are meant to help you get the momentum going as you work toward your goals.

Tips for Growing Your Advisory Business

Digital marketing can have a powerful impact on your business’s growth as more investors rely on the internet to connect with advisors. Working with an advisor marketing platform can help you stand out from the crowd. SmartAsset AMP (Advisor Marketing Platform) is a holistic marketing service 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 build your practice’s marketing operation. Get started today.
If you’re still struggling to grow, you may consider hiring a business consultant. Getting an outside perspective may be beneficial if you’ve tried multiple strategies to grow, but have seen little in the way of results. When hiring a consultant, look for someone who specializes in working with advisors who follow a business model that’s similar to your own.

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