Developing a Practice by Becoming a Niche Player

Source: Insight

Niches include not only industries, but also functional niches such as taxation and forensic accounting, and population segments such as women business owners and Baby Boomers.

To select the right niche(s) for your firm:

• Analyze your client base—which clients and businesses do you like working for?
• Analyze your strengths—for example, Chicago’s J.S. Richter, Ltd. serves U.S. units of German, Swiss, Austrian, and other European businesses. Richter exploited his ability to speak German.
• Look at trends—the AICPA does periodic surveys on growth areas in CPA firms.

Select your niche(s) with the long run in mind. It took Richter nearly four years to establish his niche.

Keep these in mind when working to develop skills in a niche:

• CPE—investigate accounting associations, especially those devoted to specialized niches. Search the Internet for courses.
• Read magazines that focus on specialized niches.
• Read trade journals.
• Attend seminars that industry people attend.

Watch out for:

• Volatile industries such as real estate. Maintain diversity.
• Industries that are not yet established.

From Insight, The Magazine of the Illinois CPA Society, March/April 2007. For the complete article, click on the following link: www.insight-mag.com/insight/index.htm, select March/April 2007 issue, then click on Columns, then on Niche Novice.