Written by Janet Tyler Johnson, CFP®
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18 December 2009
We all know that the experts tell us to develop a niche, become an expert in that niche, hang out with those people, read what they read, etc., and we'll become successful. But I think the key component of what many are saying is missing.
The key is having a very narrow niche. For example, a former airline pilot who becomes a financial advisor and decides to work only with airline pilots has a very narrow niche. He/she knows the issues that are important to airline pilots. He knows what their pension plans look like. He knows their income levels, tax issues, etc. And, most importantly, he doesn't need to stay up to date on the issue important to physicians or dentists or school teachers.
Serving physicians (and only physicians) is a somewhat narrow niche. Or dentists. Or school teachers. But working with surgeons, or dentists who specialize in cosmetic dentistry, or college professors are much narrower niches. They have more in common which means you can develop narrower but deeper expertise rather than needing to be an advisor who is a jack of all trades.
Working with people who are retired is not a narrow niche. They come from all kinds of professions, have vastly different issues, and you need to keep up on all of their issues.
So when doing your planning for 2010, is creating a narrower niche something you can do? Need a little motivation? Who makes more money -- the internist or the surgeon? The family dentist or the oral surgeon? The principle in the elementary school or the head of the University Engineering School?
Become the expert in one narrow area and the chances of financial success are much higher than being a generalist. And I will argue that not only will your business be more profitable, but your life will be less stressful. Your staff will be dealing with clients that have much the same type of services offered to them, so they will have more repeatable processes (which lowers their stress levels) and you will easily be able to delegate more work to them. You will need to keep up on less issues (only those relevent to your niche clients) which will translate into less reading, focused learning, and targeted social interactions.
Give it some thought -- you already have the wisdom so why not be known as the expert.
