Should you niche your accounting firm?Jun 25, 2020
So should you or shouldn't you niche your accounting firm?
Now there's a lot of difference of opinion on this in the sector. Some people will tell you that yes, you absolutely need to niche. Others would tell you nah, it's not really important.
You don't have to.
My view is that you can absolutely build a successful and profitable accounting firm without having a niche. However, you can build an even more profitable and enjoyable accounting firm if you do a niche. The reason is, is because when you niche, you automatically are attracting that audience towards you.
So whether that'd be niching for doctors, or dentists, or property owners, or the construction sector, that audience will automatically see you as the specialist in that sector because you have put yourself out there to be an accountant for that particular niche.
It also makes your marketing a lot easier because you have a clear message that you are looking to attract clients in the sector that you work with. Not to mention, internally you can achieve efficiencies because you are dealing with the same type of client.
Also, it builds up you and your team's knowledge, in-depth knowledge, in that particular sector, which is going to only add more value to the target audience, to your niche that you are serving.
Think about when you go out and are looking for a service provider. Are you more likely to go to a service provider that specializes in accountants, or would you be happy going to a generalist? More often than not, there is more of a pull factor by a specialist, because you just automatically feel that they understand you better.
It comes from one of the six laws of influence that Cialdini came up with, being social proof. You automatically believe that the specialist will be able to deliver us more value because they understand us better than a generalist.