Expanding into new realms is one of the best ways to expand your tax or accounting practice. In this article, we will discuss how to do exactly that.
When it comes to market expansion of your practice, there are really two ways to go about doing it. The first is to consider geographical expansion. You are already offering your services in your local area, and at some point you will be asking yourself, “Can I offer my services in adjacent communities, also?” You could establish satellite offices in neighboring cities, or take advantage of the growing number of “virtual office” spaces that exist and meet with clients in other cities one day per week. Then, you could perform targeted marketing in those other areas to obtain new clients there.
If you live in a rural area, this strategy could be particularly effective. By establishing occasional office hours in a series of small, rural towns that are distant from a large city, you can quickly create a following of dedicated clients that deeply appreciate your taking the time to come to them. Chances are you could find a client in a small town that was willing to trade occasional-use office space for some services.
The other way of expanding your accounting practice is to look at specific niches. Niches are small sub-groups of clients that you choose to specialize in servicing. For example, providing tax services to construction contractors is a niche. Becoming the “go to” tax advisor for a local major employer is another niche.
The great part of creating unique niches for yourself is that specialization tends to command higher fees. For example, a heart surgeon charges a lot more than a family practice physician. The more specific you can get with the niches that you target, the easier it becomes to focus in and market specifically to those audiences. You can create special reports and marketing tools that are tailored very specifically to your niche audience. For example, you could offer construction companies in your area a free report detailing the “7 Major Tax Mistakes That Cold Kill Your Construction Business”. This sort of targeted marketing is noticed by the relevant audience.
Drilling down into targeted market niches is referred to as “vertical” marketing. Another option is to expand out. For example, some firms also offer various forms of business consulting services, business planning, business valuation services, wealth management, stock brokerage, insurance, and more. This not only allows you to make more money from existing clients by selling them additional services, but also gives you a greater variety of things to talk about in your marketing, and specifically market those services.
Start thinking about unique industries you could specialize in servicing, and also start thinking about additional services you could offer to your existing clients. Both of these methods will give you new avenues for increasing revenue that simply did not exist for you before.