Finding Your Niche Market: Identifying a Profitable Corner in the Accounting Industry
The competition in the accounting industry is escalating rapidly as demands continue to rise. With mostly similar services, accounting firms are finding it challenging to find a competitive edge from others.
One way to accelerate the growth of your firm is to establish a niche market– a highly specialised subset that will focus on your expertise and credibility. Having a niche market differentiates your firm and helps you stand out from the rest.
Truth is, every accounting firm has a niche – it’s just that most of them have the same ones. In order to succeed, you have to establish yourself as an authority. “If you are specialising, you need to be an expert,” said Colin Dunn of Proactive Accountants Network.
Some examples of niches in the financial industry include services like business valuation, international tax, and IRS problem resolution. A niche market can also focus on price range or even demographics. As a case in point, we at The Outsourced Accountant belong to the business process outsourcing (BPO) industry and we specialise in accounting. We help Australian and New Zealand accounting firms do the time-consuming and process-driven tasks. They are our niche market.
How to find your niche market
Marketing strategist Alicia Olesinski of New Angle Marketing said, “Think about what pain points or what services they are buying from someone else.” Here are some ways on how you can define your niche market:
- Recognise a need – Identify a specific need in your served available market (SAM) that you can address.
- Find a pattern – Observe if there is a pattern of clients from your existing client base that yields the most profit.
- Determine where you are good at– Just like what I have stressed before, you have to do what you are good at and what you love so that your job will never feel like a chore.
How it can benefit your firm
Having a niche market opens marketing opportunities because it narrows down your target market. Aside from this, your firm can also reap the following advantages:
- Higher revenue – When you have a distinct niche market, you can stay focused on serving clients that are the most profitable.
- Increased brand recognition – Having a niche market helps you position your brand as you develop a reputation of becoming the go-to expert in the field.
- Reduced costs – since it targets a fixed demographic, your marketing budget would go a lot further.
Having a well-defined target market lets your firm know what you really want to deal with and focus your marketing efforts to this specific market.
The Outsourced Accountant supports Australian and New Zealand accounting firms by helping them understand and implement outsourcing solutions to help them become more proactive and truly add value to their clients. If you want to know more about outsourcing, call us at 1300 896 522, and download our e-book.