The following tip is adapted from the article 10 Factors to Determine If Your Potential Niche Is Really Viable (And How to Finetune If Necessary) posted on Kitces.com on May 20, 2024.

Defining your niche involves moving beyond general demographics (e.g., women or pre-retirees) and occupational groups (e.g., business owners and doctors). Instead, drill down to the specific group of people and address the one pressing problem that compels them to seek specialized financial advisory services. Use the formula One Client + One Problem:

• Attorneys (one client) who feel trapped in their careers and want to quit (one problem)

• Tech company employees (one client) exercising stock options post-IPO (one problem)

• Foreign-born citizens and residents (one client) needing to plan for their own finances and those of their family back home (one problem)

Using this formula provides a clearer picture of the niche you want to serve and gives you more direction on how to market to them.