Is it Time to Niche Down as an Advisor? How to Find Your Ideal Client.

“You speak their language and they are more likely to refer (you to other clients),” she added.

At the wealth management firm she previously worked at, Dawson was able to work with a practice growth consultant, which helped some of the advisors build out their expertise.

“I was leading a women services team, but women are not a niche market. That’s 50% of the population. I thought it was a great approach [as] it was very data driven and helped us see what clients are most profitable and enjoyable to work with. So it’s really about studying your clients,” Dawson said.

“That was when I decided to get more specific on serving lawyers. And that consultant helped us with a very research-based approach,” which entailed interviews with more than 100 lawyers and thought leaders in the legal sector, she explained.

“It was a systematic way to build an ecosystem around your niche,” Dawson added, noting that even if advisors don’t take an approach that’s quite as formal as this, they can come up with a marketing plan that distinguishes them from other wealth advisors.

“Figure out who you enjoy working with,” Dawson said. “Getting more specific about who your ideal client is a recipe for success in your career. It’s the best thing for the advisor and the client. It gives everyone a great experience.”

This strategy can also help advisors filter out what publications they’d like to contribute to, the type of speaking engagements they’d like to do, and even the events that would be the best use of their time, she said.

“My opinion on this is, the time is now. It’s never too early, even if you’re a junior advisor,” Dawson said of carving out your area of expertise.

Your Why - And Ideal Client

Dawson, who also coaches advisors and helps them figure out their ideal client, says that advisors need to figure out their why.

“Is it the money, the freedom that comes with more revenue, the joy? It’s getting clear on the why behind (your focus),” she said.

“A question I often get from advisors is: ‘Aren’t you afraid of losing out because you’re getting more specific on your focus?’”

Dawson says the risk is worth the reward, in this instance.

“Put your stake in the ground. Be known for something. It doesn’t mean that you won’t get referrals outside of your niche,” Dawson said.

She noted that some advisors who are further along in their career, or have a bigger book of business, may wonder if it’s worthwhile to pivot and streamline their area of focus.

“If you have a full group of clients already, does it even make sense to think of this strategy? I’d still say get clear about the best meeting you had in the past year, where you feel you really helped somebody,” Dawson said. “Who do you love working with and how can you serve more people like that?”

Highlight Your Differentiators

Dawson notes that niching down doesn’t need to create a major barrier to entry.

“I think taking baby steps and not putting too much pressure on yourself (is important). You can just gradually have a plan, execute and do activities that you authentically enjoy. I started a newsletter that went out to my lawyer clients and lawyer contacts. It was a very low risk thing that conveyed: ‘Hey, I’m doing this thing,’ and people can forward it.”

The goal is “having some clear differentiators, even in how you serve your clients,” Dawson said.

In her work advising women lawyers, Dawson addresses unique financial issues affecting her clients, such as managing their cash flow (as attorneys’ income can be less predictable or involve year-end lump sum payments).

“We have tools to help them look at their cash flow and also targets for hitting their long-term financial plan,” Dawson said.

For other advisors looking to find their sweet spot, Dawson recommends they polish their messaging to prospective clients and do speaking engagements that serve their specific audience.

“I would hesitate to go too big (with an announcement) before you are doing it. Don’t make the marketing plan the obstacle. Do the thing,” Dawson said.

Danielle Walker is a freelance journalist with 15 years of business reporting experience. She previously worked at Business Insider and Pensions & Investments, among other business publications. Her work has been published in the Financial Times, Barron’s and Chief Investment Officer. Danielle is currently based in Norfolk, Virginia.

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