Are your sales stuck? Has growth stagnated?

You’re not alone if you’ve hit a plateau. Smaller and emerging asset managers often excel at investment management but struggle to grow their businesses. Recognizing where your growth strategy falls short—in branding, positioning, visibility, and operational issues—is the first step toward revitalizing sales and revenue.

Mid-year may be the ideal time to review your strategic plans for the balance of the year.

In this article, we’ll detail the signs your growth strategy needs a second look and the steps you can take to break through barriers to tap into your firm’s true potential.

Strategic Challenges

Slow AUM growth. Are your assets under management not growing as fast as you’d like? Or are they falling behind industry averages? Poor performance results and customer satisfaction may be the cause. Declining client retention rates will result. Doing the same things over and over again can erode your competitive edge. Your investment, marketing and sales strategies, and processes must be reviewed and potentially overhauled.

Concentrated client base. Your firm is at risk if you only have a few large investors or if they are too similar. Lack of diversification increases vulnerability. You need new growth opportunities.

Sales team working in a silo. Is your sales team disconnected from the marketing and investment teams? Lack of coordination can result in missed opportunities. Collaboration across departments is critical for maximizing effectiveness.

Branding and Positioning Issues

Lack of differentiation. Your brand is more than a logo or tagline—it’s how people perceive your firm, values, and expertise. A distinct brand can be the difference between standing out or blending in. You risk being overlooked if your value proposition isn’t unique. A strong differentiator—whether in your investment philosophy, client experience, or expertise—can help grow your firm.

Inconsistent identity. Erratic or haphazard messaging and visuals confuse people. Firms must maintain a unified brand to build credibility and trust via their website, social media, and client communications. For example, do you say you are a cutting-edge investment manager with new strategies—but are, in reality, a traditional manager? This misalignment may lead to confusion and loss of business.

Difficulty communicating sophisticated strategies. Complex, jargon-heavy explanations of your investment strategy can alienate even sophisticated prospects. Make sure your messaging is straightforward and easy to understand.

Visibility and Engagement Issues

Limited media coverage and thought leadership. Many firms rarely (or never) appear in industry publications or are sought for expert opinion. A lack of a public relations presence will reduce your credibility and visibility. Developing thought leadership through articles, interviews, and speaking engagements can elevate your firm’s profile.

Fragmented marketing. Are your marketing efforts scattered across various channels without a cohesive strategy? An integrated marketing approach ensures you deliver a clear, consistent message across all platforms and target markets.

Ineffective digital marketing. Many asset managers have an underwhelming online presence. Failing to generate leads or engagement online means your digital marketing strategy needs a refresh. A strong digital presence is essential for expanding your reach and converting prospects into clients.  Low engagement suggests that you aren’t connecting with the right audience or your messaging isn’t right. A targeted engagement plan, with personalized communication, can help spark investor interest and build relationships.

Weak relationships with intermediaries. Some managers have difficulties building and maintaining relationships with consultants, platforms, and other intermediaries. Limited distribution channels can restrict your growth opportunities. Strengthening these relationships can expand your reach and provide pathways to new clients.

Data and technology challenges. Firms that fail to embrace data-driven insights risk falling behind competitors who use technology to drive growth. Leveraging data to segment your audience, personalize messaging, and measure campaign performance can provide valuable insights. Proper use of data can drive growth. Similarly, firms often need help directly linking their marketing to asset and revenue growth. It’s tough to justify spending if you can’t measure your return on investment. Establishing and tracking clear metrics will help assess what works and what doesn’t.

Operational Constraints

Budget limitations. Limited resources make it hard to reach your target audience of affluent high-net-worth investors. Competing with larger firms with more marketing resources is tough. Evaluating your budget to focus on high-value targets and initiatives can improve effectiveness.

Lack of proper talent. Asset management and wealth management marketing require specific skill sets. Without the right team with the right skills, the best strategies can fail. The wrong people can slow down your firm’s progress, disrupt the execution of long-term strategies, cause institutional knowledge loss—and lead to high turnover. By contrast, continuity and cohesion mean long-term success.

Cultural misalignments. A culture not working toward the same objectives, and poorly organized teams can hinder your ability to grow. A one-sided focus that values investment management and undervalues marketing can limit growth. A balanced culture that values teamwork and all disciplines is essential for sustained growth.

Resistance to change. Resistance to new ideas, markets, strategies, technologies, and processes can stifle innovation and prevent you from adapting and growing. Sticking to old ways of doing things can slow you down, limit scalability, and reduce productivity.

Time for a Mid-year Review With Sondhelm Partners

Is your boutique asset management firm’s growth stalling despite your best efforts? A great investment strategy is essential, but it won’t matter if you have:

• Strategic issues with slow AUM growth, a concentrated sales base, and a sales team working in silos.
• Branding and positioning issues with no differentiation, inconsistent identity, and difficulty communicating complex strategies.
• Visibility and engagement concerns with limited media coverage, no thought leadership, fragmented marketing, ineffective digital marketing, and weak relationships with intermediaries.
• Operational constraints with budget limitations, lack of proper talent, cultural misalignments, and resistance to change9.

Recognizing the signs that your growth strategy needs a second look is the first step toward getting unstuck.

Dan Sondhelm is the CEO of Sondhelm Partners. He works with boutique asset managers to help them raise AUM, stand out in crowded markets, and spark more meaningful conversations with prospects.

Schedule a complimentary strategy session to gain fresh insights and start charting a course for growth.