How to Know if You Picked a Good Niche
Advisor Perspectives welcomes guest contributions. The views presented here do not necessarily represent those of Advisor Perspectives.
You have a niche market selected, but now comes the tricky part: determining whether the niche is a viable client base. Here are 11 questions to help you assess whether you picked a good niche.
You can anticipate many benefits when you focus your practice on a niche. With a successful niche, you will enjoy reduced competition, higher marketing ROI, and overall efficiencies in your business.
But when you are just starting out, how do you know if you will succeed with your chosen niche? While there is no guarantee, you can filter your niche through the following criteria to see how likely you will succeed.
Is your niche feeling significant mental or emotional pain regarding their shared problem?
The more pain a prospect feels about their specific financial problem, the more likely they will act to solve it.
For example, someone who receives a sudden windfall, such as the sale of property or the exercise of stock, faces the very real pain of taxes. Someone who is suddenly single and managing their personal finances for the first time faces the pain of not knowing if they can survive on the money they have. Someone who has more than enough money and just wants to get their finances organized is not feeling that much pain.