Who Do You Do Your Best Work For?

Reading Your Ideal Client Profile

Most practices are built one yes at a time. Every household that said yes was welcome, and over the years the book becomes a mix of clients the firm serves brilliantly and clients it simply serves. An ideal client profile puts in writing who the firm is built for, so the next yes is a decision rather than a reflex.

Must-Haves Do the Filtering

A profile with no must-haves describes everyone. A short list of must-haves, the conditions a household has to meet before you take them on, is what turns the profile into something you can use in a first meeting. Keep the list short enough that you would actually say no to someone who misses it.

Compare Revenue by Fit, Not Just Headcount

Households that fit the profile and households that do not often take similar amounts of time. Looking at average revenue by fit band shows what each kind of relationship is worth to the firm. That comparison usually makes the case for focusing future growth on the profile more clearly than any argument about preference.

Poor Fit Is Not the Same as Bad Client

A household can be a pleasant relationship and still be a poor fit for how your firm works. The point is not to judge the people. It is to see whether the firm's time is going where it does its best work, and to decide deliberately what to do about the households where it is not.

Common questions

What is an ideal client profile for a financial advisor?

An ideal client profile is a written description of the households an advisory firm serves best, based on factors such as assets, planning needs, willingness to take advice, personal fit, referral potential and specialty. It is used to guide marketing, first meetings and decisions about which new clients to accept.

How does an advisor define their ideal client?

A common approach is to list the current clients the advisor most enjoys and serves best, identify what they have in common, and turn those traits into a short set of criteria. Separating must-have criteria from nice-to-have criteria makes the profile practical to use.

Should financial advisors turn away clients who don't fit?

Many advisors use their profile to decide which new clients to accept and to refer others to a better-suited firm or service model. What to do with existing clients who do not fit is a separate decision that depends on the relationship, the firm's capacity and the client's needs.