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Advisors branching out to start their own practice have a laundry list of things to focus on, from building a book of business to compliance and marketing concerns. Operating as a one-person shop means you’ll wear many hats, but there are common pitfalls you can avoid — and marketing strategies that can help you make the most of your time and resources.
Think twice before tapping SEO consultants
One major cost that advisors can avoid when first launching their practice is hiring SEO consultants to help boost their online presence.
“There are some things you shouldn’t spend money on in your first year,” Cady North, founder and CEO of North Financial Advisors, said in an interview.
“One of those things is an SEO firm or consultant, because they tend to be scammy and they are costly. There are plenty of free ways to get your name out there,” she explained.
Advisors should set up a free Google business page, so they are more likely to be found by prospective clients, she offered.
Another way to improve the SEO of your website is to be “very diligent about posting any links where your business has been featured,” as well as making sure that content links back to your website, if possible, North said.
She also recommended advisors dedicate a part of their website, or other online pages or profiles, to clearly describing who their target client is.
“Most new businesses, when they launch online, don’t have a homepage where they explain who they are, what it is they do and, most importantly, who they do it for. You can’t just trust or rely on your content management system,” to draw in the right audience to your website, North explained.
“Even if they claim to be SEO-friendly, [CMS providers] may not actually create a Google-friendly website. You need to make sure you set it up right — and you can do that completely free without a consultant,” she shared.
Get specific about your client base
Starting your own firm also means you’ll have to get clear on your marketing strategy — and your target clients.
“For me, it was trial and error,” North said. “I was a career changer, so I hadn’t done a lot of this work in another firm. I was writing it as I went. I would have experiences with a client and be done with a meeting, and think, ‘I didn't enjoy that very much and why is that?’ So I would think about the types of personalities that did mesh well with me and my work.”
She says advisors should keep track of whether they feel depleted after client meetings, and why. They should also dig beyond the demographics of their clients, and analyze the “psychographics” — the emotions, spending habits, values, and lifestyle of their target client base.
“You can’t just say, ‘I work with dentists, because I know a lot of dentists,’” North said. “You have to write and produce information that speaks specifically to that audience. How do you know those 10 dentist clients you know will be a good personality fit for you and your work?”
She recommends keeping quick summary sheets of your meetings, to get a better sense of the personality type, financial decisions, and other characteristics of your target clients.
“Get clear on that, so when you produce articles or content, you can call out the things that will be helpful for these clients,” North said.
Make a lasting impression in person
Another key to growing a strong client roster is making sure you make in-person connections.
“My other big tip to get clients, is to not rely on social media as much, but to focus on one-on-one communication,” North said.
“I’ve heard this marketing strategy referred to as ‘1,000 cups of coffee.’ The more people you know who can explain what you do to someone else, the better. It’s much better to connect with people in person even if it doesn't immediately result in a client meeting, rather than just being behind a computer,” she noted.
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