Building niches.

• Author: Brooks, Mary Anne

When is the right time for your firm to build a niche? Any time is the right time when your firm has:

* Reasonable expertise and experience in the proposed niche area/industry

* Adequate staff to devote to the engagements

* Commitment to build the niche

* Capability of providing a unique spin to the type of service provided in that area (What can your firm do that other firms are not doing?)

Sometimes a niche evolves unintentionally. Your firm may find that 25% of its clients are medical practices. That's a niche! So why not capitalize on that expertise? Build your niche materials and proposals around what you already know and let the firm stand on its reputation in that segmented market.

A niche can evolve as a result of a new partner or manager joining the firm who has a high degree of experience in a particular area. That person could be responsible for educating selected personnel to assist in the niche.

New tax laws or other regulatory changes can be a source for beginning a niche. The possibilities are endless. What firms need to know, however, is that building and maintaining a niche market is hard work. It takes commitment and teamwork.

Focus on value

"Niche marketing is a simple concept that can yield incredible results...in less time than other traditional marketing vehicles," says PKF Texas' Karen Love, Director of Business Development. Love stresses that focusing on what clients and prospects value creates perceived value in their minds. "Smart marketers," says Love, "know that the key to marketing and sales success is understanding the need of a particular niche and then presenting the solution to those needs in easy-to-understand terms. Applying business know-how to the marketing process makes niche marketing a win for firms of all sizes."

PKF Texas believes company owners enjoy doing business with firms that contribute to their community, so the firm gets involved and stays involved with key organizations that support its niche. In its Entrepreneurial Advisory Services (EAS) niche, PKF-Texas strives to be everywhere its niche target is. Its professionals become an integral part of the leaders in their field.

Scott Moore, Director of Marketing at Crisp Hughes Evans LLP, a nine-office firm based in North Carolina, indicated that his firm's healthcare practice accounts for about one-third of the firm's revenue. A sustained niche-building program has helped the practice grow 28% over the last two years. It is intended to:

1. Build...