There are a variety of niche markets to choose from. Find out how to select a niche market that’s right for your firm.

Why are niche markets a big deal?

Working within a niche market has a variety of benefits. This includes enhanced customer relationships. 

Imagine having a smaller, elite customer base.

You can focus on the quality of your engagements and services instead of spreading yourself thin.

If you accept any and every client, you run the risk of spreading yourself thin. Sure, you may have a large client list. But they aren’t premium clients.

A highly specific service also reduces the competition pool. You won’t see as many companies out there offering what you do. This gives you more leeway to put more into what you do best.

You can also charge a premium fee for your services. Clients are willing to pay more money for the value you provide. And that value is your expertise.

There’s also a really big perk that people rarely talk about: customers appreciate you more. And isn’t it a lot more fun to work with people who appreciate the work you do?

Before you market to a niche, you have to choose one. 

The Rules

The Rules

Picking a niche market isn’t as simple as you think.

Sure, you can simply choose one that looks good. But your chances of success may not be that high. 

Before you choose, get to know some of the rules. Make an informed decision that’s right for you and your firm.

Rule #1 – Look for High-Paying Clients 

First, look for niche clients who can afford to pay your fees.

There are plenty of niches out there to choose from. However, many of those companies don’t make a lot of money. And unfortunately, that also means they won’t be able to pay you.

I know that you want to help everyone. But you also run a business. Businesses need to make money.

So, you’re going to have to make some hard choices here. Check out niche markets that either makes the money to pay you now. Or ones that have the ability to make that kind of money.

You can’t afford to take on clients on a “maybe.” Those “maybes” won’t pay their bills. And in turn, they also won’t pay yours.

This is nothing against businesses that are just starting out or trying to make it. However, you need clients that have the money now. 

Struggling clients prioritize their expenses. And you may not be near the top of that priority list.

It may sound harsh to tell you to look for profitable niches. But a lot of clients in a niche that doesn’t pay much won’t help you.

The ideal niche has high-paying clients who have the potential to continue that momentum in the long term. That way, you know that they’ll also always have enough to pay your fees.

Rule #2 – Enough Clients to Make Marketing Worthwhile

Rule #2 – Enough Clients to Make Marketing Worthwhile

How many potential clients are in your niche?

Numbers are important here. 

You want to make sure that there’s enough of them that it’s worth marketing to them. If there are only a handful of potentials in your chosen niche, you will run into problems.

Namely, you’ll have to make sure that you sign on all of them. Yes, I said 100% of them. And if there are only 3 in your area that’s probably not enough to support your firm.

Also, if your niche is too small you run the risk of running out of potential new clients.

If those 3 clients in your niche area are already working with you, who’s left?

One way to find out how big the client pool is in a niche is to do your research. Go online and check out social media platforms and forums. 

Think Nationwide when you decide as well. It’ll grow the potential pool. 

Otherwise, what’s the use of having a niche marketing strategy if there’s no one to market to?

Rule #3 – Provide Services That Make a Difference 

All firms offer something unique to their clients. 

The question is: can you provide services that make a difference to a potential niche?

What type and depth of expertise do you bring to the table?

Obviously, you need to provide valuable services to this niche group. But you also need to be able to measure the success of your services. 

In this instance, client “success” means that you improved their condition. And they need to see that you improve their circumstances so they continue to pay you.

If the client sees value in your services, they’re willing to keep paying you for those services. Some may even pay premium fees to continue those expert services.

Additionally, you can get some great case studies from them. Every win for them is a win for you. And that win takes the form of a case study for more marketing material.

It also feels really good to help people. 

Rule #4 – The Niche Is Evergreen 

Does the niche have staying power?

This is important for your potential long-term relationships. 

There’s no point in creating a business around a niche that may disappear in a few years, right?

But that’s exactly what’s happening to many professions and industries. 

When was the last time you went into a bookstore?

Exactly.

It’s not that people stopped reading. But they started new reading habits that marginalized the need for physical bookstores.

Now, imagine if that was your niche market. 

All of that time, money, and energy that you spent marketing to that niche go down the drain.

So, you want to look for a niche that has potential longevity.

Since none of us has a crystal ball to gaze into, it still isn’t a guarantee. However, you can increase your chances of having that niche’s business for years to come if you do the proper homework.

Rule #5 – Enjoy Working with Companies in That Niche

This rule is an important one. You’re going to invest a lot of time and energy working with this special niche. Make sure it’s one you actually enjoy!

Many of your waking hours in your professional life is going to be with people in this niche.

Do you enjoy their company?

Because if you don’t, you may want to look for a new one. Otherwise, both you and the client may be in for a very long and unhappy working relationship together.

Of course, there’s a tendency to stereotype when it comes to niches. 

I’m aware that negative and miserable people exist across the market. When you encounter those people, cross them off your list.

The bottom line is: you need to enjoy the company of clients in that niche. 

Rule #6 – Go with What You Know

Did you know that you may already have a specialty?

That’s right. 

You may have a niche and you didn’t even know it. This may be especially true if you’ve been in business for a few years and already have a client list.

It’s simple to pinpoint your specialty this way. Simply look at your client list.

Do you see a couple in the same general field? This could be a niche option. 

Look for general fields like:

  • Construction
  • Restaurant owners and hospitality businesses
  • Technology
  • Medical clients
  • Mechanics

You can also narrow down your field based on geography and location. 

Rule #7 – Go with What You’re Good At

Do you like the energy of tech companies?

Or maybe your talents are in payroll services?

Go with what you’re good at and think you’ll enjoy. It also helps to have an in-house specialist that knows the ins and outs of the niche.

Rule #8 – Look Around You

If you’re still stumped about picking a niche, take a look around you.

You’re surrounded by businesses. So, take a closer look at the types around you.

Does this mean you need to limit your specialty to those around you?

Absolutely not.

But it still may be a good idea to check out everything within walking distance. When you’re surrounded by a particular business, it may make sense to win them as clients.

Once you’ve built up a local specialty, you can expand further.

Pick the Right Niche for Your Firm

Working with niche markets comes with a variety of benefits. But there is also a variety to choose from.

So, how do you know which one is right for your firm?

Rules like picking ones that will last for years to come is a good starting point. Also, checking out how many potential clients are in the niche is also invaluable.

Above all, you do have to make sure you cover profitability. Choose high-paying clients that have the capacity to pay your fees. Otherwise, you may run into problems before you truly start.

It’s also important that you enjoy working with the niche. You will spend a lot of your professional life with the people in these companies. So, make sure that you enjoy the environment of that specialty.

Are you interested in reading more about growth strategies for your firm? 

Take a look at my book for more pointers.

The Wealthy Accountant. Click here to get a copy.