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10 Strategies for Growing Your Business: Natixis

Financial advisory firms can follow sev-
eral strategies in order to expand their
practices over the next few years, accord-
ing to the findings of a recent survey
of 2,700 financial professionals world-
wide published by Natixis Investment
Managers, which are summarized below.
1. Demonstrate value to clients
beyond asset allocation: The largest
number of advisors (49%) said that in
order to grow, advisory firms must add
value beyond asset allocation. “This ties
in directly to a major transition under 4. Embrace technology: Focusing on clients are looking to invest in digital
way in the wealth management busi- technology upgrades was cited by 38% assets,” the firm said.
ness,” according to Natixis. “Many finan- of respondents as a “critical step to 8. Adapt your business model to
cial professionals have found that shifting ensuring success,” according to Natixis. meet emerging client needs “With client
the focus of their business from portfolio “This can include investing in a customer demand for financial planning on the rise,
management to financial planning can relationship management system to advisors are making the transition to a
strengthen long-term relationships.” make their service efforts more efficient, more holistic business model by expand-
2. Build relationships with next- or digital tools that give clients a self- ing services on the planning side and
generation heirs: Another 45% said they serve option for routine requests,” the implementing model portfolios on the
thought advisory firm success would firm noted. investment side,” Natixis noted.
depend on building relationships with 5. Streamline your client base: 9. Target more female and LGBTQ
next-generation heirs. “Building relation- Although streamlining their client bases clients “Tailoring an offering to women
ships may often be geared to retaining will help advisory firms grow their busi- could be a significant opportunity for
assets when client wealth is transferred, nesses, “advisors are less likely to see financial professionals,” according to
but it is also an opportunity to add new other factors such as streamlining their Natixis. “Another opportunity for growth
clients and win the current assets of cli- client base (25%) … as critical to their focuses on LGBTQ investors. Tailoring
ent heirs,” Natixis said. success,” Natixis said the survey found. planning and investing services to the
3. Retain existing clients, while add- 6. Manage client expectations effec- unique experiences and family dynamics
ing about 20 new ones a year: “The tively: “Financial professionals see inves- of LGBTQ clients can help financial pro-
median number of clients that financial tor expectations for risk and return chal- fessionals deliver genuine value to a cli-
professionals think they will need to add lenged by volatile markets,” according to ent base with significant economic clout.”
annually over the next three years to Natixis. “Their advice: Investors should 10. Create a succession plan if you
achieve their growth goals is 20,” accord- control what they can. Their emotions.” don’t have one: Succession planning
ing to Natixis. Referrals from accoun- 7. Get up to speed on crypto: Meeting was cited by just 24% of respondents as
tants, lawyers and other professionals client demand for crypto was “at the critical to the success of advisory firms,
were cited by 48% of respondents as bottom of [the] list of success factors” according to Natixis. However, industry
a method that helped drive growth. cited by respondents, at just 16%, Natixis experts have consistently urged advisory
“In-person events and experiences such
said. That is because respondents said
firm owners to create succession plans
Adobe Stock as client seminars and dinners proved to it was “out of their area of expertise.” to, among other things, help ensure the
ongoing success of their firms after they
Still “financial professionals may want
be effective for one-third of professionals
to learn more, as a growing number of
(34%), it added.
retire. —Jeff Berman
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SEPTEMBER 2022 INVESTMENT ADVISOR 1