september2021 - 22

FEATURE
How to Build Your
Firm Around Niches
to focus, adapt, and be agile. As industries
change, laws change, too, so a firm without a
focused approach can be left playing catch up
instead of leading its clients into new ways of
doing business.
The focused approach I'm referring to is a
niche - a specialized segment of the market where
practitioners can offer a high level of service. It
may sound counterintuitive to focus on a small(er)
segment, but finding the right niche can increase
profitability, efficiency, and differentiate your firm
from others in the profession.
Niches allow firms to become experts in
certain fields, while allocating the majority of
their resources to strengthening those areas. As
more experience is gained in a niche field, the firm
will become subject matter experts and can lead
prospects right to their doorstep. Clients will also
refer business to you once your credibility has been
established; others will find you as you make a
name in the industry.
FINDING THE RIGHT NICHE
Survey your interests. When deciding which
industries or areas you would like your firm to
pursue, start with something you're interested
in. Working within a field you genuinely have
an interest in will motivate you to increase your
knowledge and better serve your clients. Maybe
you like sports and want to work with physical
therapists, or you love cooking and want to work
with restaurants. Your niche can also be defined
by an industry you previously worked in or have
knowledge about. For example, if you worked in
manufacturing before starting your practice, that
can be your niche. You will naturally have more
knowledge going in and will be able to relate to
your clients better than a practitioner who is not
from the industry.
By Colin Horsford, CPA, MBA
AS TAX AND accounting practitioners start or grow their practices, many create
a one-size-fits-all service model. " Any client is the right client, " but this approach
soon becomes problematic when they realize they are a jack-of-all-trades without
a true specialty. In fact, the one-size-fits-all approach should be done in reverse:
start with a dedicated focus, then expand to other areas as your team grows.
Small- to mid-size firms need to be able
Conversely, sometimes you stumble into a
niche. You may look at your client list and notice
that you have built a good rapport with clients
within a certain industry and enjoy working with
those clients. Or, you may want to capitalize on a
new industry such as cryptocurrency. Regardless
of the area or reason, the goal is to identify an
industry you have an interest in and to be confident
you can provide exceptional service.
Research your niche. As with any new
endeavor, acquiring knowledge is necessary. You
will want to know more about the industry so you
can speak with authority, as well as understand
how those businesses work. You will also want
to be seen as an expert in the industry so clients
will gravitate toward you. Equally important is
understanding the profitability of the niche and
understanding clients in the industry.
Many niches are attractive, but may not be
profitable. Some are very profitable, but if the
clients are short on time and patience, it may be
tough to build quality relationships. Research the
type of client and the size of the businesses in the
industry, then target a specific client. You can get
as granular as working with a specific product, a
minimum revenue threshold such as $1 million
or greater, company size, or experience - startup
vs. legacy brand. The proper due diligence will
lead you to the right industry and the right type
of clients. The right niche will be an interesting
industry, with high profitability and great clients.
TWO WAYS TO OFFER SERVICES TO
YOUR NICHE
Once you've selected your niche, you have to
decide what to offer them and how you will do it.
There will generally be a base level of offerings,
such as compliance, but your practice will need
to go beyond that to make an impact.
22 SEPTEMBER 2021 ■ www.CPAPracticeAdvisor.com
1. TALK TO YOUR CLIENTS
If you are currently working with clients in a niche
industry, meet with them to discuss market trends
and service gaps. A client can identify areas that
aren't being served industry-wide or new laws that
may affect the business. A great example was the
recent Paycheck Protection Program and stimulus
loans. That was an opportunity for many to be
at the forefront of the imminent change. When
talking to your clients, your goal is to learn what
you can provide to them, not have them tell you
what they want. Henry Ford once said, " If I had
asked people what they wanted, they would have
said faster horses. " Learn what's missing and craft
a solution.
2. INCREASE YOUR EXPOSURE
To grow your business and expand within your
niche, you will have to get your name and firm
out there. Attend networking or industry-related
events so you can meet potential clients. You will
also learn about market trends and the issues
affecting their industry. Offer to speak on a panel
or conference.
On the tech front, you can improve your search
engine optimization as you increase your client
base. It's also important to put out quality content
on multiple channels for social proof, including
YouTube, Instagram, Twitter, and others. However,
do this with caution, as it can be time consuming
or costly to hire someone to do this for you if you
can't find the time. It's best to know where your
clients hang out so you can target them on that
channel.
Whichever niche you ultimately choose, your
approach will matter the most. Increase your
knowledge, seek out the right clients, and expand
your network. ■
Colin Horsford, CPA, MBA, is owner and founder of
Horsford Accounting & Advisory LLC, where he works
closely with business owners to ensure their company's
books stay clean, organized, and up to date. His motto
is " Good accounting enables informed decision-making. "
Colin and his team also advise clients on mergers &
acquisitions, and revenue strategies helping them grow
their businesses. He is an Advanced Certified ProAdvisor
and a member of the Intuit Tax Council.
http://www.CPAPracticeAdvisor.com
september2021

Table of Contents for the Digital Edition of september2021
