3 Chapter 3: Maintaining and Growing Your Book of Business / Professional Practice

Advisor building client relationships and network connections, representing growth and long-term business development.Learning Objectives

LEARNING GOALS

Upon completion of this chapter, you should understand:

  • Explain the importance of treating your book of business as your own professional practice.
  • Describe how financial advisors allocate their time and identify the activities that drive success.
  • Apply effective strategies to build, grow, and maintain a client base.
  • Develop and nurture Centres of Influence (COIs) to support business development.
  • Apply networking and client outreach strategies to expand your professional reach.
  • Demonstrate effective communication techniques used in client outreach, including email and phone interactions.
  • Demonstrate effective preparation for client meetings to support professional interactions.
  • Recognize the key traits and habits of successful financial advisors.
  • Create a personalized business plan that outlines goals, strategies, and focus areas.

3.1 Introduction to Your Book of Business

Establishing Your Own Business/Professional Practice

To be successful in your role, you need to build your business. Whether you work for a bank, finance company, or your own financial planning firm, you need to view your client portfolio as your own business. This chapter will address maintaining your client relationships and strategies on how to grow your business to ensure your success.
A book of business is the list of clients maintained by someone who provides specialized professional services, such as financial services. Ideally, the professional regularly adds clients and customers to keep their book of business growing (Kolakowski, 2020).
It may not have occurred to you that advisors and planners look at their book of business as their own business. Cultivating your book of business to maintain and add new clients is critical to being a successful business advisor. It is likely the organization where you are employed will have a system to collect all of your client information that you can refer to and update as needed. Financial planners who have their own practice will need to purchase a CRM system or build their own system for collecting important client data.
A book of business includes the basics: client name and contact information. A strong book of business includes additional information, so the advisor can recall details from previous meetings with a client. Some key items to include for each client are:
  • demographics (e.g., age and occupation)
  • accounts the client has with you and other financial institutions; maturity dates should be documented
  • outcomes of client meetings (i.e., the products/services the client has acquired)
  • referrals that you provided to your client
  • potential future needs; gaps you have identified through previous meetings.
Information is gold. For example, knowing that your client’s child is getting married provides you with the opportunity to send a card congratulating them. By sending a card, you are showcasing to your client that you remember them and the important events in their life. Typically, an advisor may see their clients twice a year, so remembering and acknowledging certain details will help the client keep you in mind for their future needs.

3.2 Understanding the Advisor’s Role and Time Allocation

3.2.1 How Advisors Spend Their Time

A research study completed by Dr. Derek Tharp in 2018 explored, “How Financial Planners Actually Do Financial Planning” (Tharp, 2018). He was able to determine what an advisor/planner does throughout the week in order to be successful. Figure 3.1 shows how lead advisors indicated they spend their time on a weekly basis. Some interested takeaways from this study follow.
  • Advisors/planners spend 43 hours per week working as a financial advisor; of those 43 hours, 26.7 are spent addressing the following direct client needs…
  • They meet with their current clients, on average, 8.8 hours per week.
  • They spend 5.3 hours per week preparing for meetings.
  • They spend 6.6 hours per week answering client questions.
  • They spend an average of 6 hours per week doing follow-through on client servicing tasks.
  • Advisors indicated that finding and getting new clients took, on average, 9 hours per week. This includes 4 hours meeting with prospective clients and another 5 hours working on marketing and related business development activities.
Time spent by lead advisors on varios weekly tasks

[Figure 3.1] Time spent by lead advisors on various weekly tasks. (Data from: Tharp, 2018)

Think about how you expect a financial advisor spends their day. Do you imagine most of their time is spent meeting with clients?

The reality may surprise you. Complete the activity below to check your assumptions.

Looking at Figure 3.1, you can see that about 50% of their time is spent on client-related activities and less than 20% of their time is spent meeting with their existing clients. Consider the hours an advisor spends on business development
  • They spend about 9 hours per week finding and meeting new clients.
  • They spend about 3 hours per week on administrative work and professional development.
  • The spend about 5 hours per week on management tasks (as needed.) 
Investment management work (research and account activity such as trades) takes about 10% of an advisor’s time. From what you have read, you can conclude that the majority of work an advisor does involves growing and building their book of business. 
In fact, given that the average experienced lead advisor has 96 clients, the average advisor only spends 2.9 hours per year actually “investment managing” the client’s portfolio (Kitces, 2019).
Interestingly, the report determined the following for new financial advisors with less than 5 years of experience:
  • Business development time averages about 21% or about 12 hours per week. 
  • Client meetings with current clients averages about 13% of their time or about 7 hours per week.
Advisors with 5-15 years of experience:
  • Business development time averages about 17% of their time  or about 9 hours per week. 
  • Client meetings with current clients averages about  16% of their time or about 8.3 hours per week.
Mature advisors with 15+ years of experience:
  • Business development time averages about 14% of their time or about 7.5 hours per week. 
  • Client meetings with current clients averages about 19% or their time or about 10.2 hours per week.
New versus experience advisors; how they spend their week

[Figure 3.2] New versus experience advisors; how they spend their week. (Data from: Kitces, 2019)

Watch A Day in the Life of an Financial Advisor:

3.3 Building Your Book of Business

3.3.1 Getting Started as a New Advisor

For a new financial advisor, the task of building a client base can seem overwhelming. This process takes time to build, so develop a plan and remain consistent. Both the plan and the advisor need to be flexible and adaptable; the advisor needs to be willing to adjust their plan if necessary. Assuming the advisor has completed the licensing required to be advising clients, they can consider moving forward with their plan. 
New advisors and finance professionals will need to expand their reach; they need to look outside their usual working circles to gain access to different networks. In this text, we will discuss the importance of relationship building. This knowledge is a transferable skill that can be applied to working with clients and colleagues who can provide new advisors/professionals with referrals. While social media is a good tool, the personal contact of a relationship can go much further. 

3.3.2 Centres of Influence (COIs)

Diagram of a Centre of Influence

Image generated using the prompt “Create an image of a Centre of Influence,” sourced from OpenAI, 2025.

 

Developing Centres of Influence is key to the success of many new advisors. According to FMG, a Centre of Influence is defined as marketing to key people you can rely upon to help grow your business. As a financial advisor, your Centres of Influence (COIs) may include CPAs, attorneys, trust underwriters, mortgage professionals, and more (FMG, 2021).
A Centre of Influence adds value to financial advisors for the following reasons.
  • They give you access to a number of potential clients that you can service.
  • They are willing to recommend you and your services to potential clients.
  • They are respected in their industry.
  • A mutual relationship can develop, where you also become a Centre of Influence.
Your relationship with your COI takes time develop and cultivating these relationships is valuable and worth the time invested. Make a point of connecting (you can meet for coffee or lunch) to see how you can help them grow their business. 

3.3.3 Networking for Client Acquisition

In addition to building your skills and industry knowledge, one of the most critical activities for any advisor is building and maintaining a strong professional network. Networking is not simply about job hunting; it is an essential part of building your client base and sustaining long-term success in financial services.

People networking

Image generated using the prompt “Create an image depicting Networking,” sourced from OpenAI, 2025.

According to the University of Manchester (2023), networking is an essential ability encompassing interpersonal communication, rapport management, and professionalism. These competencies are fundamental to establishing strong client relationships and business growth.

Effective networking allows you to:

  • Expand your circle of influence
  • Build meaningful relationships with clients, professionals, and community contacts
  • Gain referrals and build trust and credibility
  • Establish a recognizable personal brand in the industry

3.3.4 Strategic Networking Tips

  1. Look for the Right People
    Reach out to former colleagues, community leaders, and industry professionals such as CPAs, lawyers, and mortgage specialists. Attend local business networking events or webinars to connect with new contacts.
  2. Be Proactive
    Stay in regular contact with your network through brief updates or messages. Don’t wait until you need something—relationships grow from consistent, genuine engagement.
  3. Offer Assistance
    Helping others in your network builds goodwill and positions you as a knowledgeable and dependable resource. If you can’t help directly, connect them with someone who can.
  4. Cultivate Online Connections
    Use platforms like LinkedIn to maintain visibility, share insights, and engage with others. Join online groups relevant to financial professionals or your niche market.
  5. Follow Up After Events
    Whether in-person or virtual, following up with a new contact after a networking event demonstrates professionalism and interest. A well-timed follow-up can lead to opportunities, introductions, or even new clients.
  6. Develop an Elevator Pitch
    Be ready to explain who you are, what you do, and how you help clients—in 30 seconds or less. Practice this so it feels natural when opportunities arise unexpectedly.

Remember, effective networking is not transactional—it is relational. Your goal is to build long-term trust with people who may become clients, refer clients, or support your practice in other ways.

3.3.5 Identifying a Niche Market

One thing new advisors can do is seek out clients that are underserved. Many established advisors work with retirees (Bloomenthal, 2019). A new advisor has the opportunity to build their client list by approaching  and working with the younger generations.
It is also important for the new advisor to determine what their brand is and how they are going to serve their clients. Establishing a personal brand, one that sets the advisor apart from their competitors, is key. What is the personal value that you bring to your client experience?
A survey was completed for this text, and when successful advisors were asked what they believe their personal added value for the client experience is, the overwhelming theme that evolved from their answers was being personal, honest and empathetic. 
Cartoon image of a Financial professional working in their a Niche Market
Image generated using the prompt “Create an image of a Niche Market for a Financial professional,” sourced from OpenAI, 2025.

3.3.6 Community Engagement

It is likely that new financial advisors who are getting established have minimal funds for advertising and marketing. It is vital for a new advisor to seek out low-cost options to connect with others (Bloomenthal, 2019).
Cartoon depicting a finance professional working as a Centre of Influence
Image generated using the prompt “Create an image of a what Community Engagement looks like for a Financial professional,” sourced from OpenAI, 2025.
Increasing your circle of influence, and becoming well-known in the community, can lead to success and sustainability in your career. 

3.3.7 Finding Your First Clients

Table 3.1: Ways for a New Advisor to Find Clients

Strategy What It Means Why It Matters
🌐 Expand Your Network Build relationships beyond your immediate circle by connecting with a wide range of individuals. Increases exposure to new opportunities, referrals, and potential clients.
🎯 Target Underserved Markets Focus on client groups that may be overlooked, rather than competing in saturated segments. Helps you differentiate yourself and build a client base more quickly.
🤝 Engage in Your Community Participate in volunteering, events, and local initiatives to build visibility and trust. Strengthens relationships and positions you as a trusted, approachable professional.

Key takeaways from the article, “Advisors: Top Ways to Find Your First Clients”. (Source: Bloomenthal, 2019)

As a new advisor, how you build your network and connect with potential clients will shape your long-term success.

The strategies below are foundational to developing a strong book of business. Complete the activity to match each strategy with its purpose.

3.3.8 Client Outreach and Appointment Setting

Building a successful book of business requires more than networking—it requires taking action to connect with potential clients. Client outreach is the process of initiating contact, creating interest, and ultimately securing a meeting where a meaningful financial conversation can take place (University of Manchester, 2023).

For many new advisors, outreach can feel uncomfortable at first. However, outreach focuses on starting a conversation and establishing a connection, not selling a product. When approached professionally and consistently, outreach becomes a powerful tool for building relationships and growing your client base.

Effective outreach allows you to:

  • Expand your professional network
  • Connect with potential clients and referral sources
  • Create opportunities for future business
  • Build confidence in your communication skills

Over time, consistent outreach efforts lead to stronger relationships, increased referrals, and a more sustainable book of business.

3.3.8.1 Cold Calling and Initial Outreach

Cold calling refers to contacting individuals who may not yet have a relationship with you. While the term can feel intimidating, it is simply one method of introducing yourself and your services.

The purpose of cold calling is not to provide detailed advice or close a sale, but rather to secure an opportunity for a future conversation—typically by setting an appointment.

When engaging in cold calling or initial outreach, consider the following:

  • Be clear and concise – Introduce yourself and your role quickly
  • Focus on value – Explain how you may be able to help, rather than what you sell
  • Respect the client’s time – Keep the interaction brief and professional
  • Expect varied responses – Not every contact will lead to a meeting, and that is normal

Confidence and consistency are key. As with any skill, outreach improves with practice. Over time, advisors become more comfortable and effective in their approach.

3.3.8.2 Email vs. Phone Communication

Financial professionals use a variety of communication methods to connect with clients. Choosing the appropriate method depends on the situation, the client’s preferences, and the desired outcome.

Email Communication

Email is a useful tool for:

  • Initial introductions
  • Sharing information or documents
  • Following up after meetings
  • Confirming appointment details

Email communication allows clients to respond at their convenience and provides a written record of the interaction. However, it is a one-way communication method, meaning tone and intent may sometimes be misinterpreted.

To maintain professionalism:

  • Keep messages clear and concise
  • Use a professional tone
  • Proofread for grammar and accuracy
  • Include a clear call to action (e.g., scheduling a meeting)

Phone Communication

Phone communication provides a more direct and personal approach. It allows for:

  • Real-time conversation
  • Immediate clarification of questions
  • Stronger rapport building

Unlike email, phone conversations are two-way and interactive, allowing advisors to adjust their approach based on the client’s responses.

When using the phone:

  • Be prepared and know your objective
  • Speak clearly and confidently
  • Listen actively and respond thoughtfully

Both communication methods are valuable, and effective advisors use them strategically depending on the context.

3.3.8.3 Setting Appointments with Clients

Securing a meeting is a key objective of client outreach. An appointment provides the opportunity to move from a brief interaction to a more meaningful conversation about the client’s needs and goals.

When setting an appointment, communicate value and professionalism. Clients are more likely to agree to a meeting when they understand how it will benefit them.

Consider the following best practices:

  • Be clear about the purpose
    Explain what the meeting will involve and how it will help the client
  • Keep it simple
    Avoid overwhelming the client with too much information
  • Offer flexibility
    Provide options for meeting times and formats (in-person or virtual)
  • Confirm details
    Clearly outline the date, time, and format of the meeting
  • Follow up professionally
    Send a confirmation email or message to reinforce the appointment

Example approach:

“I’d appreciate the opportunity to learn more about your financial goals and see how I can support you. Would you be available for a short meeting next week?”

Setting appointments is not about pressure—it is about creating an opportunity for a conversation. When done effectively, it builds the foundation for long-term client relationships.

3.4 Growing and Maintaining Your Business

Strategies to Grow Your Book of Business

Once an advisor is somewhat established with their book of business, sustainability is the key to their continued success. Continue using the strategies described to build your book of business. The following section outlines additional strategies to grow and maintain it. Growing and maintaining your book of business is equally as important as building it.

3.4.1 Word of Mouth and Referrals

Your existing clients are your best resource for advertising your services as a financial advisor. Often, advisors are humble and don’t want to be seen as pushy with their clients, but surprisingly, many times they find out that their clients understand and are willing to help out when asked. Clients who run their own business know the values of referrals and word of mouth advertising. You can say to your client, “If you have enjoyed the customer service I have provided to you, and think that I could do the same for a friend or family member, I would appreciate if you could give them my business card or contact information.”  Always have business cards ready to give out, not having them on you at all times can lead to missed opportunities. 

3.4.2 Social Media and Online Presence

Being established on social media or having a website is a requirement for today’s businesses. However, having a social media account/website is only beneficial if it’s being actively maintained and updated.

Your website should appear as a living brochure so clients can learn what you are about. You should post client testimonials on your site. You can make posts on topics like financial literacy and fraud prevention and include a page addressing any market news updates. 
Your social media platform should remain professional and not include any personal posts. One way you can maximize your social media presence is to post daily on the the popular social media platforms. Consider paying for the business options. While it comes at a cost, these options allow for your posts to be seen by more people. Use visuals in your posts, if you are reposting a meme, check that your grammar and spelling are correct. Engage where possible and use hashtags to help increase your presence. Note Credentialling bodies may have guidelines on social media presence, this will be covered in greater detail in the next chapter. 

3.4.3 Guest Speaking and Community Presence

Expanding on your connection within the community, seek out opportunities where you can speak on financial planning topics. Retirement facilities are excellent places to connect with seniors who may be looking for a new advisor. Fraud prevention, especially when related to new technologies, is often a concern for seniors wanting to protect their assets. You can host information events where you can speak on any number of financial literacy topics, offering beverages and snacks is a great way to bring in  potential clients. Connecting with non-profit organizations that support newcomers to Canada is another great way to increase your connection to the community. 

3.4.4 Managing Your Pipeline

Pipeline is a term used in finance that refers to upcoming business activity. A successful advisor always has something in their pipeline helping with sustainability of the business. Seeking out business that matures or comes due sometime in the future, and ensuring that the necessary steps relating to theis business/asset have been taken, comes under the management of the financial advisor.  Some advisors use Excel or other software to manage their pipeline (knowing where things are at is critical). If something is missed, not handled properly or not on time, the result could be a very poor client experience; you could end up losing the client. 

You are now stepping into the role of a new financial advisor. Your goal is to build and grow your client base while establishing trust and credibility in the industry.

In the scenario below, you will make decisions that influence your success. Choose carefully—each decision will shape your ability to develop meaningful client relationships.

3.4.5 Preparing for Client Meetings

Preparing for client meetings is one of the most important habits of successful financial advisors. A well-prepared advisor creates a professional experience, builds trust quickly, and ensures that each interaction is purposeful and productive.

Clients often form impressions within seconds of an interaction. Research shows that individuals make judgments about competence and trustworthiness almost immediately (Willis & Todorov, 2006). This means that preparation goes beyond simply reviewing numbers—it includes how you present yourself, how you communicate, and how effectively you guide the conversation.

Strong preparation allows you to:

  • Build credibility and professionalism
  • Anticipate client questions and concerns
  • Deliver clear, structured conversations
  • Create a more comfortable and confident client experience

Ultimately, preparation demonstrates respect for the client’s time and reinforces your role as a trusted advisor.

3.4.5.1 The 7-Step Preparation Process

To ensure consistency and professionalism, advisors can follow a structured preparation process before every client meeting.

1. Professional Appearance

Your appearance should align with your organization’s expectations and reflect professionalism. Dressing appropriately helps establish credibility and sets a positive tone for the meeting.

2. Attitude and Mindset

Approach each meeting with a positive, client-focused mindset. Be present, attentive, and ready to listen. Clients can quickly sense your level of engagement and interest.

3. Prepare Your Environment

Whether meeting in person or virtually, ensure your workspace is organized and free of distractions. A clean and professional environment helps clients feel comfortable and confident.

4. Review Client Information

Take time to review the client’s file before the meeting. This includes:

  • Previous meeting notes
  • Financial products and accounts
  • Life events or changes
  • Outstanding questions or action items

Being familiar with these details allows you to personalize the conversation and avoid asking repetitive questions.

5. Set a Clear Purpose

Every meeting should have a defined objective. Consider:

  • What is the goal of this meeting?
  • What decisions need to be made?
  • What information do I need to gather?

A clear purpose keeps the conversation focused and efficient.

6. Plan the Conversation Flow

Outline how the meeting will progress. This may include:

  • Opening and rapport building
  • Reviewing the client’s situation
  • Discussing options or recommendations
  • Confirming next steps

Planning the flow helps you guide the conversation with confidence.

7. Prepare to Build Credibility

Clients want to feel confident in your expertise. Be ready to:

  • Clearly explain concepts and recommendations
  • Answer questions with confidence
  • Support your advice with appropriate reasoning

Credibility is built through preparation, knowledge, and clear communication.

3.4.5.2 Using Preparation to Build Trust

Preparation plays a key role in building trust with clients. When advisors demonstrate that they understand the client’s situation and are ready for the conversation, clients feel valued and respected.

Effective preparation and time allocation are key drivers of advisor productivity and client success (Kitces, 2015).

3.5 Traits of Successful Financial Advisors

Successful financial advisors know not only how to manage their clients’ money, but how to ensure their clients feel safe and financially cared for (Anthony, 2022).
Everyone wants to be good at their chosen career, and knowledge and dedication are key. The article, “5 Traits of Successful Advisors” looks at the five traits most successful financial advisors have (Anthony, 2022).  We summarize those traits below.
1. Passion for Financial Planning and Wealth Management. If you are passionate about what you do as a financial advisor, it will be obvious to your clients. That passion will make them want to work with you and refer you to others. Given that the world of finance is constantly changing, especially in terms of regulations, products/services and technology, having a passion for finance will help you better navigate these changes. 
2. Deep Analytical Ability. Advisors who have a good understanding of the risk and return relationship, and how it impacts every client portfolio, will help the advisor be successful. When you listen to your client’s wants and goals, and balance those against their risk tolerance, you can successfully create a portfolio that meets their needs. This will enhance your relationship with that client. You need monitor client portfolios using a variety of metrics, such as standard deviation, beta, strategic asset allocation, tactical asset allocation, and drawdown. Analytical ability also provides you with the ability to help set the right expectations with your clients, especially when it comes to goals and objectives. You should be the expert in the conversation and be able to communicate well with the client.
3. Professionalism. Building the your book of business is critical to your success. Given all the elements of a financial plan, a good advisor is one that recommends products/services that meet the client’s needs. When you are having a good conversation with a client, you are able to identify gaps a client may not be aware of, and a successful advisor positions these gaps so the client sees them as needs. Clients are looking for someone who is an expert and can clearly communicate gaps and opportunities. Ultimately, to be successful, financial advisors must gather their courage to ask clients for their business. 
4. Putting a Client’s Interests First.  Advisors must put their client’s needs ahead of their own; one only needs to seek out the FP Canada Standard Council Code of Ethics, reiterating this for all Financial Planners. Unfortunately, too many cases have been seen in the news where advisors have acted to fulfill their needs ahead of the client. These situations have caused a negative perception of the finance industry. There is a shift in the industry to be more ethical and transparent in dealings with clients. Successful advisors must believe that the financial interests of both parties are aligned – for if not, a damaging outcome may occur. 
5. Curiosity. A good advisor is curious and willing to dive deep into a client’s details to find the best solution (and exceed the client’s expectations.) Often, challenges are presented where there seems to be no good solution for the given situation. A successful advisor takes the time to investigate all possible solutions. Of course, this does not mean taking unnecessary risks with a client’s situation, but, instead, seeing if there are any possible strategies to help the client. Finding a solution when others have failed can solidify your relationship with the client and produce referrals.

3.5.2 Summary of Advisor Traits

Table 3.2: Traits of Successful Financial Advisors

An infographic titled “Traits of Successful Financial Advisors” organized in three columns: Trait, What It Looks Like in Practice, and Why It Matters. It highlights five traits: Professionalism (clear communication, organization, builds trust), Client-First Mindset (prioritizing client needs, strengthens relationships), Analytical Skills (assessing risk and strategies, improves decision-making), Passion for Finance (continuous learning and enthusiasm, builds client confidence), and Strong Soft Skills (effective communication and rapport, enhances client experience). A closing note emphasizes that these traits together help advisors build trust, deliver value, and support clients in achieving financial goals.
Key takeaways from the article, “5 Traits of Successful Financial Advisors”. (Source: Anthony, 2022)

3.6 Developing Your Business Plan

3.6.1 Purpose of a Business Plan/Practice

As a new financial advisor/professional, having a business plan can help you determine how you plan to conduct your business. It may seem like this is common sense, but the truth of the matter is, if an advisor/professional does not have a strategy in place they can quickly become overwhelmed by the needs of all their clients and making very little compensation from those clients. In this section, we will discuss: 1) what is needed in a business plan, and 2) how to establish a business plan. Similar to a career plan, a business plan is not a static document, and it is only valuable if continually updated.
Your business plan as a financial advisor exists to help you keep focus and avoid distraction (Kitces, 2015).
In researching business plans for financial advisors/professionals, this author found extensive evidence that a plan should be a one-page document that is continually reviewed and adjusted over the career span of the financial advisor/professional. Having a one-page plan allows the advisor/professional, to capture the essential elements of the business and provides direction and focus (Kitces, 2015). A well-developed business plan helps financial advisors take a structured and intentional approach to building and growing their practice, including defining target clients, services, and growth strategies (eMoney Advisor, 2023). Another reason for having a business plan is that a client may ask to see your plan. A client would ask to see your plan so they can determine: 1) how vested you are in your business, and 2) your level of commitment to their overall financial success (Boswell & Nichols, 2018).  You always a want leave clients with the impression that you are prepared.
Business plans for financial advisors/professionals exist throughout the industry, and there are variations among them, but they generally contain similar content. For the purpose of this book, we have adapted the six required elements of a one page business plan for financial advisors/professionals from Kitces (2015).

3.6.2 Key Components of a Business Plan

3.6.2.1 Target Market (Who will you serve?)
How do you plan on differentiating yourself as a finance professional? One way to be successful in this role involves becoming a specialist in particular area; this can help differentiate you from your competitors. Inevitably, you have formulated an idea of the type of clients with whom you will work best. It is a good idea to list out the criteria you are looking for in a client. It will make it easier for you to identify the types of clients you are hoping to serve. Identify the niche of clientele that you plan to target, and determine why you want to serve this particular clientele. Research this niche clientele. What factors do you think you can leverage and make your own?
3.6.2.2 Services (What will you do?)
How can you help these clients solve their problems? Determining your niche market will dictate what services you specialize in. Specializing in your practice will set you apart from competitors and provide security to your clients. Clients like to know they are working with an expert.
For example, you decide to focus on retired clients and focus specifically on their needs. You could specialize in long-term health care needs, and the funding required for such care. Another possibility involves working with doctors. You could concentrate on doctors who are beginning their practice and help them target the large student debt they accumulated during their studies. However you choose to specialize your practice, it is vital to do your research on how you will be compensated. This information may change your mind on what type of niche of clientele you choose to service.
3.6.2.3 Marketing Strategy (How will you reach them?)
Once you have decided what clientele you want to work with and what you will do for them, it is time to figure out how to reach them. What will be your process for finding prospective clients? You will need to strategically plan how you are going to connect with your niche clientele. Making use of social media platforms is a good place to start. Establishing your online presence, which represents you and your brand, is critical to your success.
In 2018, Stephen Boswell and Kevin Nichols conducted a survey of 524 finance professionals. The following were found to be the most effective strategies (Boswell & Nichols, 2018):
  • unsolicited referrals
  • proactive introductions
  • professional alliances
  • social prospecting
  • intimate social events
  • educational events
  • social media, website and content marketing.
Ultimately, you need a plan what will work best for you, then get out and get started.
3.6.2.4 Measuring Success (How will you know it’s working?)
In the first year of your practice, building your client list will seem daunting. If you are doing the right things, you will begin to see progress. The way you can measure your progress is to set up goals. The goals you want to achieve will help you determine if what you are doing is working.
An example of a goal could be: “Meet with 10 Centres of Influence to get introductions to 30 potential clients, leading to 3 new clients in the first three months of my practice.” Goals could also include the number of calls you make, emails you send, articles you write and publish and client meetings you have. When you are first building your practice, these goals help you stay focused on the tasks that build clientele. Eventually, the goals you create will be more results-orientated.
3.6.2.5 Time Allocation (Where will you focus your time?)
When you are beginning your practice, you will often have to do everything, and it may stay this way until you are established. Once you have attained stability in your practice, it is critical that you identify where you want to focus your time. According to Kitces, “The reality is that the quickest way to failure in an advisory firm is to get so caught up on doing “everything” that you fail to focus on the essential activities necessary to really move the business forward.” He says it is essential that you be proactive about: 1) how you choose to spend your time, 2) how you determine what activities you can stop doing, and 3) how you decide if additional resources may be required to help you (Kitces, 2015).
3.6.2.6 Business Foundation (How will you strengthen your practice?)
This point in the business plan is not about what you must do to achieve the goals you have set, but, instead, what needs to be done in order to maximize the practice’s success. You need to know what technological tools may be needed (e.g., a CRM system) to launch your practice and what licensing requirements are necessary. Will the structure of your practice exist in a traditional office space or will it be an entirely virtual workspace? Or will you consider a blended workspace? These are important questions to consider, as they can have financial implications. Having an effective and realistic budget will help with the sustainability of the practice, especially in the early days of business. As the practice becomes more established, and you gain experience, you may start to feel like you are stuck and are no longer progressing. Reviewing your entire business plan, and modifying it where appropriate, is a great way to rejuvenate the practice. An experienced advisor should look at the foundation of their practice to see what needs to be adjusted.
The goal here is to do what is necessary to move forward, not everything; as with so much in the business, waiting until perfection may mean nothing gets done at all (Kitces, 2015).

Final Check of Understanding.

This chapter introduced the key strategies and habits required to build and sustain a successful advisory practice.

Complete the activity below to assess your understanding and identify any areas you may want to revisit.

3.7 Chapter Summary

Building and maintaining a successful book of business is one of the most important responsibilities of a financial advisor. While technical financial knowledge is essential, long-term success in financial services depends heavily on relationship-building, communication, professionalism, and consistent business development efforts.

This chapter explored how advisors must view their client portfolio as a professional practice that requires ongoing attention, organization, and growth. Advisors spend a significant portion of their time on activities such as client servicing, meeting preparation, networking, outreach, marketing, and maintaining professional relationships. Successful advisors understand that business development is a continuous process throughout their careers.

The chapter also introduced strategies for building and expanding a client base, including networking, developing Centres of Influence (COIs), community engagement, identifying niche markets, and maintaining a professional online presence. Effective outreach and appointment-setting techniques help advisors create opportunities to establish trust and build long-term client relationships.

In addition, the chapter emphasized the importance of preparation and professionalism in client interactions. Well-prepared advisors build credibility, communicate more effectively, and create stronger client experiences. Successful advisors also demonstrate key personal traits such as passion, analytical ability, curiosity, professionalism, and a client-first mindset.

Finally, the chapter highlighted the value of creating a business plan to guide decision-making, establish priorities, and support sustainable long-term growth. By combining strong technical knowledge with relationship-building skills, intentional planning, and ethical client service, financial advisors can develop successful and rewarding professional practices.

“Your network is your net worth.” — Porter Gale

Key Terms

Term Definition
Book of Business A financial professional’s collection of clients, relationships, and ongoing business opportunities.
CRM System Customer Relationship Management software used to organize and manage client information and interactions.
Client Retention The ability to maintain long-term relationships with existing clients.
Business Development Activities focused on attracting new clients and growing professional opportunities.
Centre of Influence (COI) A professional connection who can provide referrals, introductions, or support business growth.
Networking Building and maintaining professional relationships to support career and business growth.
Niche Market A specialized segment of clients with specific needs or characteristics.
Client Outreach Initiating communication with potential clients to establish relationships and opportunities.
Cold Calling Contacting potential clients who do not yet have an existing relationship with the advisor.
Elevator Pitch A short, professional summary explaining who you are, what you do, and how you help others.
Pipeline Future or pending business opportunities that may generate future client activity or revenue.
Referral A recommendation from an existing client or professional contact to a potential new client.
Professional Branding The process of establishing a recognizable and trustworthy professional identity.
Social Prospecting Using social media and online engagement to connect with potential clients or networks.
Client Experience The overall perception and impression clients develop through interactions with an advisor.
Business Plan A structured document outlining business goals, strategies, target markets, and operational focus areas.
Target Market The specific group of clients an advisor intends to serve.
Time Allocation The strategic use of time toward activities that support productivity and business growth.
Professionalism Conduct, communication, appearance, and behaviour that reflect competence and credibility.
Client-First Mindset Prioritizing the needs and interests of clients above personal gain.

 

Reflection Questions

  1. Why is it important for financial advisors to view their client portfolio as a professional practice or business?
  2. Which networking strategies discussed in the chapter would feel most natural to you and why?
  3. What personal strengths could help you build strong client relationships?
  4. How comfortable would you feel reaching out to potential clients through cold calling or networking events?
  5. What type of niche market would you be most interested in serving as a financial professional?
  6. Why do you think preparation is essential before meeting with clients?
  7. Which trait of successful financial advisors do you believe is most important and why?
  8. How might professionalism influence a client’s trust in an advisor?
  9. What challenges might new advisors face when trying to build their first client base?
  10. How could social media positively or negatively impact a financial advisor’s reputation?

Discussion Questions

  1. Should financial advisors focus more on technical expertise or relationship-building skills? Why?
  2. Why are referrals and word-of-mouth marketing so valuable in financial services?
  3. How has technology changed the way advisors build and maintain relationships with clients?
  4. What ethical concerns could arise from social media marketing in financial services?
  5. Why do Centres of Influence (COIs) play such an important role in business development?
  6. What are the advantages and disadvantages of specializing in a niche market?
  7. How can advisors remain authentic while also promoting their personal brand?
  8. Why is time management critical for financial advisors?
  9. How might client expectations change over the next decade in financial services?
  10. What habits separate highly successful advisors from average performers?

Suggested Case Study Scenario

Case Study: Building a New Advisory Practice

Jordan has recently completed the licensing requirements needed to begin working as a financial advisor at a mid-sized financial institution. While Jordan is excited about starting a career in finance, building a client base feels intimidating.

Jordan currently has:

  • very few personal connections within the industry;
  • limited marketing experience;
  • strong communication skills; and
  • a passion for helping younger clients improve their financial literacy.

Jordan’s manager suggested:

  • attending networking events;
  • developing Centres of Influence (COIs);
  • improving social media presence;
  • identifying a niche market; and
  • creating a simple business plan.

Jordan is considering focusing on young professionals and recent graduates who may need support with budgeting, debt management, and early investing strategies.

However, Jordan is unsure:

  • how to approach potential clients;
  • how to build credibility;
  • what networking strategies would work best; and
  • how to manage time effectively while balancing administrative tasks and business development.

Case Study Questions

  1. What strengths may help Jordan succeed as a new advisor?
  2. Why might focusing on a niche market help Jordan build a book of business more effectively?
  3. Which networking or outreach strategies discussed in the chapter would be most beneficial for Jordan?
  4. How could Centres of Influence (COIs) support Jordan’s growth?
  5. What steps could Jordan take to build credibility with potential clients?
  6. Why is preparation important before meeting with clients?
  7. What goals could Jordan include in a first-year business plan?
  8. How could Jordan use social media professionally to support business development?

3.8 References

Anthony, C. (2022, April 2022).5 Traits of Successful Financial Advisors. Investopedia.
Bloomenthal, A. (2019, June 25). Advisors: Top Ways to Find Your First Clients. Investopedia.
FMG Suite. (2021, March 4). Marketing to Centers of Influence for Financial Advisors. FMG Suite, LLC.
eMoney Advisor. (2023). Creating a financial advisor business plan: A comprehensive guide. https://emoneyadvisor.com/blog/creating-a-financial-advisor-business-plan-a-comprehensive-guide
Kitces, M. (2019, March 18). How Do Financial Advisors Actually Spend Their Time and the Limitations of Productivity? The Kitces Report.
Kolakowski, M. (2020, September 17). What Is a Book of Business? Definition & Examples of a Book of Business. The Balance Careers. 
Tharp, D. (2018). How Financial Planners Actually Do Financial Planning. The Kitces Report, Vol. 2.
University of Manchester. (2023)Networking (The University of Manchester). Manchester 1824

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Advising for Finance Professionals Copyright © 2025 by Carla Van Horne is licensed under a Creative Commons Attribution 4.0 International License, except where otherwise noted.

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