Financial advisors spend most of their time identifying the best ways to grow client wealth, but in some cases, growing their own wealth and business falls to the wayside. It’s easy to get stuck in a rut serving the same clients in order to make a living rather than focusing on growth initiatives to expand wealth over time.

Fortunately, there’s ample opportunity for growth in the market. According to the U.S. Bureau of Labor Statistics, the job outlook for personal financial advisors is expected to grow 27% between 2012 and 2022, which is significantly faster than the average growth rate of all professions in the United States.

In this article, we’ll take a look at how financial advisors can grow their wealth over time — both on the top-line and the bottom-line. (For related reading, see: How Financial Advisors can Adjust to Robo-Advisors.)

Attracting New Clients

The best way to attract new clients and grow a financial advisory business is by generating in-bound leads. By sharing expertise at colleges or community events, financial advisors can reach a large audience and create in-bound leads that want to become clients, as opposed to cold calling and convincing people to become clients.

For example, a financial advisor may form a relationship with a local temp agency by holding educational seminars for temp employees. These job seekers could develop into solid long-term clients, particularly if they are hired from part-time into full-time positions and begin earning larger salaries over time. (For more, see: How Advisors Can Fill the Talent Gap.)

It’s important to remember that there are no shortcuts when it comes to generating high-quality in-bound leads. While many companies promise to provide leads on-demand, meeting people in-person and showcasing your skillsets in a meaningful way helps form the best long-term client relationships.

Raising Your Prices

The best way to raise prices is to generate a higher perceived value for services. By focusing on a niche market and playing to their strengths, financial advisors can differentiate themselves from the competition in the eyes of clients and justify higher fees for their services over time by delivering added value. (For more, see: How to Be a Top Financial Advisor.)

For example, a financial advisor that specializes in bonds may work with older clientele that naturally hold a greater percentage of their portfolio in bonds. Given their extensive experience in the arena, they will have greater credibility within this end market, which also happens to be wealthier than younger investors. (For more, see: Financial Advisors are Feeling Cyber-insecure.)

Raising prices for existing clients may seem difficult, but demonstrating added value or selecting only certain clients for a price hike can help ease the burden. When making the move itself, it’s important to be confident and assertive without becoming nervous or defensive in order to instill confidence in clients.  

All-Around Gains

Attracting new clients and raising prices address both the top- and bottom-line finances of a financial advisory practice. By establishing policies that focus on expanding both of these efforts at the same time, financial advisors can ensure that their practice is constantly growing over time, as opposed to remaining stagnant. (For related reading, see: How Financial Advisors are Leveraging Social Media.)

The Bottom Line

When it comes to investing the growing cash from operations, financial advisors should consider reinvesting a portion of their wealth into the business and diversifying the rest into other assets for their own retirement and well-being — after all, financial advisors shouldn't forget to properly manage their own assets. (For more, see: Management Tips From Top Financial Advisors.)

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