Are you in the start-up stage and overwhelmed by the amount of 'helpful' advice you receive from others - friends, family, other business owners?
Some advice is awesome - the right insight at the right time can be a game changer. Though sometimes it can feel unsolicited, irrelevant, confusing or just not right for you.
I often have conversations with bookkeepers or accountants just starting out in their business journey, and one of the pieces of advice that they often feel overwhelmed by relates to the need to have a defined niche from day one.
Some of the concerns raised about niching early includes:
- I'm not sure of my niche yet, or of exactly what industry or specialty I want to focus on.
- If I commit too early to a specific niche before I really get started, I'm worried I may turn away good clients for the wrong reasons.
- I'm concerned that by narrowing my focus so early, tunnel vision could set in and I may miss out on opportunities or growth.
The important thing to keep in mind, is that everyone comes into the industry through their own pathway, and the journey to landing on a niche can look different to everyone.
Some people naturally find a niche due to previous work history, education or interests. E.g. someone who's previous career included practice management at a law firm may gravitate to a niche in the legal industry, someone who's been managing the books for their family building business may specialise in services for the building industry, or someone who has a logistics background using a specific software may focus on that particular software / system.
However, some people are more generalist when starting out, and honing in on a niche may be a more difficult, and lengthier, processes.
If this is the case for you, don't feel pressured to lock in your niche from day dot. Get comfortable with the fact that may take some pondering and a little trial and error to get it right. Now, I'm not saying go out there with a scatter gun approach and try to land every potential client who crosses your path, though be open to opportunities that may help you discover what it is that really speaks to you, where your interests and skills really lie, and where your future niche may be.
If taking this approach, where your niche evolves gently as you get started rather than being etched in stone prior to launch, you may find it easier to start defining your 'ideal client' before your niche. This involves identifying all the qualities and characteristics that you want to see in your future clients and creating an Ideal Client Profile.
Along the way to creating your Ideal Client Profile, a niche may naturally start to surface. At the very least, you can be confident that you are setting out to attract the right kind of clients for your business while you fine tune your niche.
To get started on your Ideal Client Profile, compile a list of client attributes that you consider 'ideal' - really anything that you feel is important for your client represent. This may include:
Behavioural Attributes
- Core values and internal team culture.
- Communication style.
- Level of involvement or engagement with key decision makers.
- Adaptability and willingness to change, or accept feedback and advice.
Business Attributes
- Company size
- Number of employees
- Business structure
- Location - e.g., remote only, proximity from home/office.
- Software / Systems used
- Financial status - e.g., minimum turnover, current state of their processes/procedures, ability to meet your minimum fees and payment terms (direct debit, in advance).
- Position in their business lifecycle - e.g., introduction, growth, decline.
- Industry sector.
- Type of service required. e.g., bookkeeping only, payroll, CFO level services, system automation.
If you manage to define key elements of your Ideal Client Profile, you are in fact well on the way to determining your niche. And remember - a niche doesn't need to encompass a specific industry sector - it may relate to a particular system that you are a gun at using, or a process/service that you specialise in.
There is no need to rush this process - it is more important to put in the leg work and get it right, than go in all guns blazing in the wrong direction. And don't be afraid to recognise if you've got it wrong - you can always correct course as you go.
When working through your Ideal Client Profile and Niche, also take the time to:
Identify Your Passion and Expertise
Take a moment to reflect on what truly excites you as a bookkeeper or accountant. What areas do you excel in? Which industries or types of businesses do you feel drawn to? Understanding your passion and expertise will help you narrow down potential niches that align with your skills.
Research Market Demand
Conduct research on the market demand for different niches within the bookkeeping industry. Look for sectors or industries experiencing growth or undergoing specific challenges that require specialised bookkeeping services. Understanding market trends will help you identify niches that offer ample opportunities.
Test the Waters
Once you have some potential niches in mind, consider taking on a few clients in those areas to test the waters. This approach allows you to gain hands-on experience and determine if the niche is a good fit for your skills and business goals. It's an opportunity to learn, refine your services, and assess client satisfaction.
Leverage Referrals and Networking
Networking within your desired niche and seeking referrals from satisfied clients can be highly effective. Attend industry events, join relevant professional associations, and engage in online communities where potential clients and influencers gather. Building relationships and establishing yourself as a trusted bookkeeper can lead to more opportunities within your niche.
Remember, finding your niche is a journey that evolves over time. As your business grows, you may naturally gravitate towards a specific industry or type of client. However, during the early stages, it's essential to strike a balance between your desire for specialisation and the need to build a solid client base.
So, embrace the flexibility of the start-up phase, focus your marketing and client acquisition efforts wisely, and attract quality clients that align with your values. By following your own path, you'll pave the way for long-term success as a bookkeeper.
