Prospecting Hispanic Business Owners
Anyone have any suggestions, experience with prospecting Hispanic Business Owners? I think that they may be an under-served market and want to make inroads into that market.
I am half Hispanic and speak Spanish, although my name is not Hispanic. The only "ideas" I have is to call them or visit them at their business, and to join the local Hispanic Chamber of Commerce. I live in a big Metropolitan city in a southwestern state, so the local chapter is pretty big, but I have been disuaded by most from joining the chamber. Everybody says they demand too much of your time and you get little if any business from it.
Is visiting them at their business more effective vs. a phone call? Calling is more time efficient, but visiting is more personal.
Your thoughts, suggestions and experiences are greatly appreciated.
The question you have posed is one each and every broker has asked themselves, when considering whether to join a group. And it's a question that cannot be answered, until you've been a member for a while. However, you can perform some preliminary due diligence on the organization and its members.
1. The first thing you can do, before joining, is conduct some demographic research on the membership. Do any of the members appear to be in the targeted area that would benefit from your services and benefit your practice? For example, how many members would you classify as being large, medium, small, and micro-sized businesses? Any "centers-of-influence" members? Any competitor FA firms as members? (A clue to possible potential.) etc.
2. Consider the status of those disuading you from joining. For example, if a poor performing FA is telling you it's a waste of time, consider the source. That FA may possess subpar selling skills yielding subpar results; whereas, upon joining, you might uncover a gold mine of potential ideally suited for your style of selling. If a successful FA tells you it's a waste of time (but they're still a member), by all means join!
3. Does the group participate in activities that you are genuinely interested in, (leaving aside the potential for business development)? You'll have more success, doing what you enjoy.
4. If you join, establish some preliminary goals to attain. For example, one goal might be to identify 10 qualified prospects within 3 months of joining. The next goal might be to open five $100,000+ accounts within 12 months of joining. Etc.
Any competitor FA firms as members? (A clue to possible potential.) etc.
Does the organization attract your target market?
Does it have regular meetings? Can you handle the time commitment?
Doberman is right, but there is also a catch-22 here. Some organizations are over-brokered. You want the place to have potential, but don't go someplace that's already over-run with FAs.
Here are some criteria that I got from a recent conference:
Is it recognized as an elite gathering place? Does it capture your interest, beyond the opportunity to sell.
What is the group’s reputation? Can you afford dues, events, contributions, etc?
Anyone have any suggestions, experience with prospecting
Hispanic Business Owners? I think that they may be an
under-served market and want to make inroads into that market.
Doberman and jcadieux both make alot of sense. I'm just going to
add something to the above question. Hispanics (in general) are not
avid consumers of investment services. Its a cultural thing. Many
aren't waiting around for Grandma to leave them some Muni bonds. Most notable exceptions to this are corporate executives and 2nd generation.
Many small/medium business owners would rather own the locations of
thier businesses. Its for this reason that banks usually have an
advantage in this niche. Banks lend them the money to buy a building or
setup a credit line. If you decide to try it, I would suggest
that you approach them with insurance or college planning as your way
to engage them.
Many small/medium business owners would rather own the locations of thier businesses. Its for this reason that banks usually have an advantage in this niche. Banks lend them the money to buy a building or setup a credit line. If you decide to try it, I would suggest that you approach them with insurance or college planning as your way to engage them.
I agree with most of what you said. Yes, Hispanics aren't typically big consumers of investment services. I know that would be my death knell, if I tried to approach them from that angle.
I got the idea of prospecting Hispanic B.O.'s from talking to a couple of Hispanic small business bankers. I never targeted that market before and after learning that we specialize in estate and bus. succession planning they urged me to pursue Hispanic B.O.'s because, as they put it, "most of their Hispanic B.O.'s have done little or no formal estate and business succession planning. Most don't even have a will!" Being half-Hispanic myself, and being bilingual, they told me I was well positioned to gain their trust and build relationships, with little competition.
After researching it some and giving it much thought I think I am going to visit each business. It is not time efficient, but neither is building a relationship the right way. I purchased a list of local Hispanic B.O.'s and am going to start visiting them next week.
I'll let you know how it goes. Thanks to everyone who offered their thoughts. Y'all are the best, I don't care what your clients say about you!
How has the hispanic market been going?
From my experience targeting niche markets is a very good opportunity but to really start getting business you need to build trust and respect in the community. It doesn't come overnight so be prepared to go in for the long haul and it takes a lot of commitment.
JAJAJAJAJA Hispanics don't plan. They like to buy, buy and buy. Sell them I good idea and they will buy.
Many Hispanic immigrants who've been working here for a number of years do have cash in the bank, although its not exactly enough to call them HW individuals. For those that do have more than $250K, its going to be extremely difficult to get them to invest in anything having to do with equities or even bonds for that matter. They love CDs.
First generations and beyond have a better grasp of financial planning, so the target here should be like it is in any other market.
Personal conversations are going to be the best way to prospect that area. Your B/D is likely not going to approve of anything writeen in a foreign language. If you do get approval for a foreign language piece, you will likely have to provide prospectus and other disclosures in the foreign language. And even if you are a native speaker and can translate everything yourself, that does not matter. You must have a certified third party provide the translation verification! Personal conversations are going to be the best way to go.