Niching for Bookkeepers

You've probably heard from the marketing and business world that niching is the way to go if you want to be successful in business.

But is that always the case, especially when it comes to bookkeeping?

Should you focus on one particular industry or business type or is it OK to work with a wide range of clients.

Let's first define what niching means when it comes to marketing.

Niching is when you identify a specific group of people or businesses that have unique needs, preferences, and qualities, and then you create specialised marketing strategies to cater to them.

Niching by industry is usually what first comes to mind when it comes to bookkeeping. 

If you have specific knowledge in, or passion for, a particular industry like hospitality, farming, or the trades, then it makes sense to focus on working with and marketing to that industry.

But there are also other types of niching when it comes to bookkeping:

• business size 
• minority-owned
• sustainable/socially responsible
• family-owned or husband & wife-owned
• start-ups
• not for profits
• businesses in crisis

Each of these types of businesses has specific needs, restraints, regulations, access to funding, that specialised bookkeeping and business knowledge can help with, so if you have that experience and knowledge then it makes sense to utilise it.

Doing so will help both you and your clients to be successful in business.

 If you can focus on marketing to and serving one particular industry or business type, then you'll build a reputation as an expert in that field, and that can lead to more referrals and the ability to charge higher fees.

It also makes your marketing message clear, which can attract better clients more easily.

So niching can be beneficial in many ways.

You don't have to say goodbye to all your other clients.

A lot of bookkeepers think that if they niche then that's the only business type that they work with. But that's not necessarily true.

Niching is primarily a marketing exercise. By having a niche, you can position yourself as an expert in that area and create targeted marketing messages that will resonate with your ideal clients.

You can still work with other clients outside of that niche if it makes sense for your business

You can have more than one niche

You're not restricted to just one niche either.

You and your team might have a wealth of expertise across a few different industries or business types and you can create marketing for each one specifically.

For example, you might have a niche working with not-for-profits but you also have a niche working with trades businesses.

Still, my position on niching is not necessarily that you should, but that you could.

Diversifying your client base means that you're diversifying your income stream. Given the recent pandemic, that might have been the make or break for some bookkeeping businesses working with a niche market badly effected by the lockdowns and business closures.

Niching might not always be the best way to go, especially if you don't have much experience with any particular industry or business type. It's not a good idea to pick a niche when you don't know anything about it.

The most important thing for you as a bookkeeper is that you have the fundamentals of bookkeeping down. From there it can be applied to any industry and to most business types.

In my own bookkeeping business I love the variety that comes from working across multiple industries and business types. Having a variety of clients has kept things interesting and challenging for me and my team.

Additionally, working with a wide range of clients has given me a breadth of experience which I credit as one of the reasons I have been able to successfully move into business coaching. I've learned a lot over the years! 

Bookkeeping can be considered it's own niche

Accounting has many niches, from tax accounting, management accounting and cost accounting, to auditing, forensic accounting, and yes, bookkeeping. 

Bookkeeping is a a specialised area of accounting that requires a unique set of skills and knowledge.

What accountants do is not what us bookkeepers do, and what bookkeepers do is not what accountants do.

However, bookkeeping is also a fundamental aspect of running any business, so while it may be a niche industry in some regards, it is also an essential service that is required by a broad range of businesses.

So, should you niche or not?

There's no right or wrong answer here. It depends on your experience, interests and goals.

For bookkeepers just starting out, it might be better to work with a variety of clients to gain experience and to figure out what you enjoy doing. Then once you have more experience, you can decide whether to niche or not, and if so, which niche to focus on.

As I said, my position on niching is not necessarily that you should, but that you could.

It's up to you whether to niche or not, and if so, which niche to focus on. As long as you have the fundamentals of bookkeeping down and a willingness to learn, you can succeed in any industry or business type.

Stephanie 

PS: Interested in working with me as your bookkeeping business coach? Send me an email to start the conversation.