Some of the most successful CPA firms have been able to brand themselves as experts in a particular sector or niche. While you don’t have to pick an industry to be a successful CPA firm, focusing on one specific sector can help you reach your long-term growth goals.
Many firms are not taking advantage of that fact, mostly because of the uncertainty that comes with making the transition. It’s not just about becoming a specialized firm to differentiate yourself from the competition: it’s about higher profits, client retention, more efficient operations, and a more effective marketing strategy.
Every CPA firm is limited in terms of its sales and marketing resources, and it can be difficult to construct an effective outbound strategy. You might even have some specialization in your client base already and not even realize it. Specializing your firm ensures that you are getting much more ROI out of your marketing initiatives, and it may just help scale your firm to become more successful than ever before. Here’s why it might be the perfect time to rethink your strategy or consider transforming into a specialized CPA firm.
A Deeper Relationship
Countless businesses are looking for help with their taxes, but specializing in a niche can lead to more meaningful relationships with clients. You can learn more about their pain points, issues, and concerns, and develop specific strategies to address them. It appears as though even the CPA licensure model is now embracing specialization, which gives you an idea of where the accounting industry is headed.
There are so many unique client problems that might only be related to their sector, and your firm can help communicate with them “in their language.” This leads to a deeper and “stickier” business relationship that can last for much longer than traditional CPA firm-client relationships.
It’s a much more strategic relationship, and it can help strengthen the bond between you and your clients. This is great for client retention, but it also means that you can end up playing a personal advisor role that wouldn’t usually be possible with a traditional CPA firm.
Stronger Value Proposition
One of the most challenging aspects of marketing for traditional CPA firms is that you can feel like you are marketing to anyone and everyone. All sorts of organizations can benefit from a CPA, and it can feel like you aren’t crafting the right message to your ideal client. However, specializing in a niche equals a much stronger value proposition.
The easiest way to put it? Your CPA firm now can become a big fish in a much smaller pond! There are greater opportunities to become market leaders or thought leaders in a particular niche, which can help future growth significantly.
Chris Farmand began asking a brewery client about back-office services for breweries; he noticed that there was a massive opportunity. His CPA firm now specializes in brewery clients, and he remains a thought leader in the space. He points out that it might not be as easy as it looks. “Building a specialized practice does not come easy, and it requires patience and discipline. There is a lot of risks, but the rewards are so great.”
Now, your marketing efforts will be speaking to specific clients, and specialization will do wonders for conversion rates. Your content strategy can be sharper, more focused, and appeal directly to clients who can benefit from your services. The ROI on your marketing will increase significantly once you truly specialize in an industry. No more crying over marketing dollars – they can be put to much better use!
Once you learn the particular industry inside and out, it means that you will be more well-versed when it comes to sector-specific challenges and obstacles. Your firm can become more efficient at solving these pain points, which can help your CPA firm continuously grow.
Over time, there will also be fewer distractions, as you don’t have to keep up with other industries: you can focus on one specific niche. You’ll adapt the most efficient processes, discover common roadblocks, and there’s a good chance that clients will be lining outside your door, knowing that you specialize in and understand their business!
Increased Value of Business
There is a tremendous amount of value in understanding the nuances of a particular industry, and keeping track of industry-specific laws, regulations, rules, best practices, and trends. There’s much more value in your business now that you’ve established yourself as up-to-date experts in the field.
Your firm now has a higher perception of expertise, which means that while you may take on fewer clients than a traditional CPA firm; you can charge those specific clients more. It’s simple: if your skills are more specialized, then they are more valuable, which means your business is now more valuable!
You are more likely to attract clients that value your services, which can help when it comes to issues like getting paid on time and overall client retention. And when your clients truly appreciate your knowledge in their industry, they are willing to pay more and stay longer. It’s a win-win situation for both organizations!
How to Get Started – Download the Industry Specialization Template
It can be challenging, and also intimidating to think about changing how your firm offers services or adjusting your marketing strategies to suddenly have a specific industry in mind. It may take some time and effort to determine your niche, but a specialized CPA firm can mean more growth, profitability, conversions, and stronger client relationships. Need help finding your particular niche? Download the industry specialization template to use as your personal guide.