Developing New Business for a Niche

Source: Accounting Office Management & Administration Report

The AICPA/Northstar Accounting Marketing Forum in New York featured speakers on marketing niche services. Here are some highlights as reported by AOMAR:

• Selecting the proper niches is crucial. Make sure there is a need in the market.
• Don’t be the last firm to enter a market. It’s too difficult to get clients from other firms. If others are marketing the niche, you’re probably too late.
• Consider “sub-niches.” There may be market opportunities by providing specialized industry valuation services, such as health care or ESOPs.
• Patience is a virtue for niche building. It can take years to become profitable in a niche.
• Don’t sell more engagements than you can handle. This is often a problem when first entering a niche.
• When providing a niche service be sure to keep the account partners informed on all communications with their clients. And help them understand the niche. This will promote better cross-selling.
• The leader of a niche doesn’t necessarily need to be a CPA.
• Put the right person in charge of the niche. The niche leader must be:
  • Technically qualified.
  • An entrepreneur.
  • Able to identify client needs.
  • Passionate about the work.
  • Visible in the community.
• Goals for the niche must tie in with goals for the firm.
• Adapt significant strengths to a niche. For example, a firm with strength in tax can transfer it to valuation work.
• Use a client matrix to exploit cross-selling opportunities. (A client matrix lists clients on the left side of a work sheet, and services along the top.)
• Consider professional sales people.
• Be constantly aware of opportunities to market your firm. For example, giving a deposition can be a marketing opportunity—opposing counsel might be impressed and use you in future trials.

From Accounting Office Management & Administration Report, February 2007, p. 1. For subscription information contact Institute of Management & Administration, Inc., 3 Park Avenue, 30th Floor, New York, NY 10016-5902. One-year subscription $399. 212-244-0360, [email protected]. For the complete article click here.