Create Your Own Whale

To quote the great Bob Dylan, "The times they are a-changin'." The question is, how about your business? Often our clients and prospects fall within a very specific demographic, leaving many successful, yet underserved groups.

I see opportunities for growth within the diverse communities that are created in this process.

We need to stop ignoring these individuals and start looking at them as potential new clients.

Everyone is diverse in some sense.

We all have qualities that describe us, but they do not define us.

Each person has a unique background and most likely could fall into many different categories.

A Hierarchy of Needs

Maslow's Hierarchy of Needs model proposed five levels of fundamental human needs.

Based on his psychological health theory, an individual must satisfy the needs in each level before they can advance and meet new and higher levels of need.

Depending on a person's situation, they will have different needs at each level.

It's important that you address those needs on a case-by-case basis. For example, the second level is about safety: stability, security, protection, and the freedom from fear and anxiety.

These safety needs can vary greatly depending on a person's situation.

Target Groups

Let's dive into a few of these groups as you consider expanding your book of business.

You must learn what's important to them and how you can become their trusted financial professional.

1. Millennials

Born between 1981 and 1996, millennials aren't exactly a young generation anymore.

(Personally, I'm in denial about that myself.) This group has faced stereotyping and, as the oldest millennials approach 40 and enter midlife, they now make up over one-third of the labor force.

While having a reputation as the social media generation, they still prefer a human financial professional and are driven by social, political, and environmental values.

2. People with Health Conditions or Impairments

Next is a demographic that you may not think of when it comes to a desirable financial client.

Disabilities can vary in severity and can be either mental or physical.

A health condition or impairment can be varied, yet still allow a person to work and build a high net worth.

Common perceived disabilities could include autism, Asperger's, attention-deficit disorder, paraplegic, and the blind or deaf communities.

Medical bills may burden people that have a disability.

You can help by making them aware of all the federal and state benefits available. Most people don't know about these benefits.

If your clients meet the criteria, you could help them qualify, thus building trust and rapport with them going forward.

3. LGBTQ+

This group's hierarchy of needs may look different for a variety of reasons.

First, family planning is a lot more expensive when it can't happen naturally.

Secondly, they may also be planning for medical services and/or counseling that aren't necessary for others.

Did you know individuals in this community develop an LGBTQ+ friendly portfolio? Funds exist today that focus on social responsibility and consist of companies that support gender diversity.

Think about how much that would resonate with them! Many financial professionals may not be aware these funds exist.

4. Racial Minorities

Race is a common factor when discussing diversity. Our country is on track to become 'minority white' by 2045.

Let that sink in for a moment.

We are becoming a true melting pot.

Look at me: I'm part Polish, German, Cherokee Indian, and Black … does it get more diverse than that?

Different racial and ethnic groups may also have cultural differences, which could cause them to be skeptical of 'handing over' their money to someone.

It's important for you to know this and help alleviate their concerns.

A few other potential challenges facing these individuals include a language barrier and tax challenges from having a multi-national status.

Many of these minority populations are more family-centric, concerned about caring for the elderly and interested in leaving a legacy behind for future generations.

Making this target audience even more appealing is that fact that minority-owned businesses are on the rise.

This is a great segment to potentially create that next whale you're hunting for.

5. Female Investors

This might be the largest and most obvious demographic you're overlooking in the industry.

Female investors are earning more than ever before and control over half of the personal wealth in the United States, according to BMO Wealth.

If you aren't making them a priority, you are missing an ocean-size opportunity.

Women desire a personalized experience and tend to have a lower risk tolerance than men.

They also tend to be more focused on life and fulfilling long-term goals than men are.

Doesn't this sound like an ideal client?

6. Veterans and Active Military

Another overlooked group is veterans and active-duty military.

Members of this group have a greater reliance on pensions and investments as a source of income.

They also have a strong focus on generational wealth.

Earlier in this article, I discussed people with disabilities as a target group.

Veterans and active-duty military individuals are twice as likely to be living with a disability as the average American.

Meeting people where they are

It might only take one new client in these groups to lead to an influx of referrals.

People in these diverse groups tend to have a strong sense of community.

If you establish a genuine connection and they like the service they receive from you, they may proactively refer others to you.

Even though all of these groups have major differentiators, we all seek the same thing: empathy.

In your business, empathy can be shared through four priority areas including communication, focus on relationships, quality experiences, and respect. If we all seek these out, maybe we aren't so different after all.

Kylie Murray is the director of practice management at Sammons Institutional Group.