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25 Questions to Ask Before You Launch a Niche

For instance: Can your firm deliver?

by Jean Marie Caragher
Capstone Marketing

Niche marketing is the decision to use a mix of marketing tools to address a specific target: a niche in the market.

Using the information gathered in your marketing audit, answer the following questions prior to pursuing a particular industry or service specialization:

  1. Jean Caragher
    Jean Caragher

    Is pursuing this niche consistent with your firm’s mission?

  2. Is there a market?
  3. Is the market size sufficient to generate revenue goals?
  4. Is there a market demand?
  5. Will clients and prospects be willing to buy these services?
  6. What are the current growth rate trends for this industry?
  7. Is there a champion within your firm to lead the effort for each niche?
  8. Can your firm deliver?
  9. Can your firm meet the market’s perceived needs?
  10. Are additional resources needed to deliver?
  11. Are they accessible?
  12. A dissatisfied client can undo the benefit to your firm of having sold its services to that client.
  13. Do you have enough knowledge about this industry?
  14. If not, what more do you need? Where can you get it?
  15. What kinds of clients do you like to spend time with?
  16. What fees can you expect?
  17. Can you anticipate premium pricing or value billing?
  18. Can your firm reach the target market?
  19. Do the individuals in your firm have a network of referral sources to obtain work in a specific niche?
  20. What level of manpower and resources will your firm need to enter this niche and service prospects?
  21. What firms in your marketplace are currently providing services to this industry?
  22. What are your competitors’ strengths and weaknesses?
  23. What marketing effort will your firm have to make to enter this niche and serve prospects?
  24. Will your firm’s size affect its ability to succeed in a particular niche? Keep in mind that certain industries are predisposed to Big Four firms.
  25. Are there other obstacles?

Caragher is president of Capstone Marketing, a partner with CPA Trendlines in the Seven Keys to Successful CPA Firm Management. This article is adapted from one that appeared in the AICPA Insider, which was excerpted from Bull’s Eye: The Ultimate How-to Marketing Guide for CPAs, which is available at CPA2Biz.com.

One Response to “25 Questions to Ask Before You Launch a Niche”

  1. Wayne Schulz

    One big issue that I did not consider when pursuing a niche at a CPA firm I worked at ….

    A. Is the market big enough (which I think you cover in your questions)

    and what became most important…

    B. If the market is NOT big enough LOCALLY (within driving distance) are we willing to travel to meet with prospects and market into non-local areas.

    What I found from pursuing Non-Profits as a niche (many years ago) is that while the NFP market was indeed quite large — the pool of prospects who could afford our services was quite narrow unless we were willing to travel to other states (which we did quite successfully ) .

    Over time it became more difficult to service non-local clients because staff was not keen on a 4 to 6 hour car trip (or overnight) to visit them for a day or two.

    Don’t overlook the very real possibility that while the market might be big enough — you could be faced with having to travel farther than you’d like.