Rookie Case Study:
How to Build a Niche Serving Women Investors
By Nicole O. Coulter
Horsesmouth Senior Editor
Dec. 3, 2004

When this successful insurance advisor made the leap into full-fledged financial planning, she focused on building a specialized practice for women. Here's how the rookie is making it work.

Judith Cane thrives on the principle of less is more. While some rookie advisors naturally fret about trimming their prospect lists, Cane gladly cut hers in half-and she firmly believes that's been the key to her budding success.

As an insurance professional for 13 years, the Ottawa, Ontario, native had already tried the talk-to-anyone-with-a-pulse approach. When she made the career shift into being a full-fledged financial planner, she wanted something different. "I wanted to build deeper relationships with people," she explains. "I needed to reset my goals."

In her insurance career, Cane had observed many women who were just putting their money in the bank and not taking advantage of diversification. "They had nowhere to go," she says. "They had no idea why they were doing this or how long they could work. They just assumed they would work until their pension kicked in."

Cane realized that she had something valuable to offer these women-not only hard investing advice, but financial empowerment, personal warmth, and luxury service. She's already developed a strong book of women with at least $100,000 in investable assets, and her goal is to run a high-end boutique practice with about 250 female clients.

The Challenge: Serve a niche market

In June 2002, at age 45, Cane joined Wealth Strategies, a financial planning firm, as an associate planner. She began working closely with a colleague at the firm on developing plans-but she was on her own as far as building her book of business.

"The biggest challenge was going from an almost guaranteed income level-I made salary plus bonus as an insurance planner-to straight commissions and fees, with no clients," Cane recalls. "My husband and I sat down and figured out how much I had to bring in. We knew it would be difficult the first couple years, but I gave myself a two-year plan, and we knew it would be worth it."

The Strategy: Reaching out to her niche

From the first, Cane has approached her target clientele strategically. In her first 24 months in the business, she has budgeted $500 a month for marketing activities aimed at moderate to affluent women. Her outreach includes print advertising, booths at consumer shows, and memberships in several women's groups. Cane calls her $6,000 annual expenditure "short-term pain for long-term gain."

Step One: Host monthly investment seminars

Cane advertises in her local newspaper about every other week, announcing exclusive monthly seminars , titled "Investing for Women." She limits seminar attendance to eight people-and she invites only women. This, she feels, encourages a more open exchange of question and ideas. "Women might feel intimidated when they go to a large seminar with both men and women," she explains. "They may hesitate to ask what they consider dumb questions."

Cane not only answers all their questions at these seminars, but also she teaches her attendees how to read prospectuses and stock pages-an exercise in financial empowerment, she says. "They may never use that knowledge, but at least they know how," she explains. "I also teach them how to look for a good financial planner." Her evening seminars last an hour and a half, and to keep it cozy she serves coffee, tea, and cookies.

Step Two: Participate in women's events

In addition to her planning seminars, Cane has reached out in nontraditional ways. She rents a booth at the National Women's Show, held in Ottawa once a year. "The show has exhibitors that cover every conceivable aspect of a woman's life," Cane says. "They have keynote speakers, workshop speakers, and celebrity appearances." Cane's work with Women's Show organizers has already led to three appearances on local television as a financial expert, a great way to build your reputation.

In September, Cane also hosted a golf clinic for clients and their guests. "It was a half-day clinic with a golf pro and lunch followed by a short presentation by me," she says, adding that she limited attendance to 20 and hired an event planner to help coordinate details. "There are a lot of women golfers in Ottawa." Later in the fall, Cane hosted what she called an Outward Bound Day, including wilderness activities and lunch. "It's basically the same format as the golf clinic, only I'm offering canoeing and rock climbing lessons."

Step Three: Pursue controlled growth

In building her practice, Cane hasn't been afraid to turn away business that doesn't fit. "I have a minimum account size of $100,000," she says. "It was a difficult decision to have a minimum, but since I was essentially starting over, the process was easy. I only want to take 20 to 25 clients a year."

Cane charges $1,000 for a financial plan, or $500 if the client came from a referral. If a client does not meet her minimum, Cane doesn't hesitate to refer her to another planner. "Most people have come to me through my website or advertising or from the Women's Show. They know the clients I deal with. I tell them up front that my typical client has at least $100,000."

Having a small client base has allowed Cane to create a high-touch, high-service atmosphere. "I want people to think that when they go to Judi Cane, it's like having another mother or sister they can ask about anything. My clients hear from me every other week," she says. "Every client I have is on e-mail. They get my biweekly electronic newsletter, and I call them at least every 90 days to see how things are going. I couldn't do this if I had 1,200 clients." Cane says that in order to maintain her boutique-quality service, she relies on her ACT software, which her firm had customized for the financial services business.

Results

Cane is cautiously optimistic as she celebrates her two-year anniversary. She brought in $2 million in assets during her first 18 months and is on track for hitting $5 million total assets by the end of this year. She's serving 20 clients, and recently she signed on a $400,000 account as a result of the Women's Show.

As she enters her third year on her own, she feels confident about the future: "I definitely took an income cut at first, but that has started to climb back," Cane says. "I charge a flat fee for the financial plan, no exceptions, and I also earn commissions from investment and insurance products. Although my minimum account size is $100,000, my average client is $250,000."

Earlier this year, Cane hired a business coach to help keep her on track. "In the fall of 2003, I was feeling discouraged. I hadn't had a new client in a while. I felt like this transition wasn't working," she says. "But as I revisited my business plan, I realized I hadn't put on a seminar in a while. I also picked up on my advertising campaign. Once I went back to my plan, I got two of my biggest clients."

Within the last month, she won over a $500,000 account after coming to the aid of a former insurance client whose husband had passed away. "The client called me, and I ran right out to her house and spent a few hours there just listening," she explains. "That's the neat thing about having this kind of practice-having the time to listen."