The debate over whether to niche down and provide specialized services or remain a generalist is common in many industries, including accounting. But honestly, it shouldn’t be a debate at all.
The angle of the question is simply off.
You need to find your niche, develop your expertise, and tailor your messaging to attract clients in that area for higher revenue. And who says that niche professionals can’t still serve general clients?
When starting a CPA firm, build a diverse list of clients but meanwhile keep on looking for your niche.
Think about it: If you have a heart problem, you go to a cardiologist. But that doesn’t mean the heart specialist is clueless about hypertension—they know how to prescribe telmisartan!
GENERALISTS vs. SPECIALISTS
Accountants as Generalists:
- Get to work across a wide range of industries.
- Need to adapt quickly to different clients and their needs.
- Handle diverse accounting issues.
- May have lower billable rates compared to specialists.
Accountants with a Niche:
- Focus on a specific industry or service.
- Attract clients who need specialized expertise.
- Command premium fees for niche services.
- Gain recognition and stand out from competitors.
- Face the risk of a market downturn with more competition for fewer opportunities.
Most accountants start as general practitioners and remain that way due to the diversity of their clients.
The next step is to discover your specialty—also known as niching down—which can take time as you identify what you excel at and how to communicate that to your ideal customers.
Another common concern I hear is, “What about my other clients?” Choosing to specialize doesn’t mean you have to exclude non-niche clients. It means you’re marketing and branding more effectively to a targeted audience.
The goal of niching down is to increase profitability by providing solutions to complex problems, all while still catering to your “good” clients.
Even specialists have some clients who don’t quite fit.
On a side note, being a generalist absolutely works.
But specializing can help you:
- Grow faster in a niched domain.
- Charge a premium for your expertise.
- Create unique processes or knowledge that set you apart from competitors.
- Compete based on the value you provide rather than just price.
- Become a thought leader in your area of expertise.
Need assistance with defining your ideal client profile? Let’s talk!