Clients

Step 3: Client Assessment

Defining Your Ideal Clientclients 2-1

The degree of difficulty in managing and growing a practice boils down to its structural integrity and the quality of the clientele. Your valuation framework and personnel assessment are designed to help you assess the structural integrity of the practice. The Client Assessment step is meant to help you assess the quality of the clientele.

Who Is Your Ideal Client?

It’s important to understand your ideal client personas. How old are they? What market are they in? What are their challenges and concerns?

things to consider

  1. Demographics Many financial professionals have basic client demographics at the center of their ideal definition. These include age, gender, ethnicity, marital status, etc.  
  2. Minimum assets/revenue This number could reflect where you are or where you aspire to be. 
  3. Percent of recurring revenue Businesses with a higher recurring revenue stream likely receive a higher multiple.  
  4. Percent of non-investment revenue This is a key indicator that wealth management strategies are being implemented.  
  5. Niche market(s) We have seen that a high-net-worth (HNW) niche market strategy fosters a higher level of relationships and recurring revenue. Is your skillset aligned with the needs of the niche market represented in the practice currently?
  6. Centers of influence/annual referrals Our experience has been that the number one driver of new business development for HNW practices is formalized strategic alliance relationships and that the number two driver is referrals from delighted clients.  
  7. Primary challenges/concerns Given the demographics and niche focus of the practice, are you equipped and will you enjoy addressing their unique challenges and concerns?

Exercises & Tools

Downloadable Resources

  1. Define Your Ideal Client
  2. Mapping Exercise for Buyer
Financial Management Succession Planning Client

Want more info?

Learn and Define your ideal client.