As Colorado currently sits mired in a couple feet of snow, I suddenly have the time to make new rhymes. What I should be doing is moving out of my house today, but the snow and forecast 90 mph wind gusts put the kibosh on the moving truck showing up.
This is, of course, my annual move out from an owner occupant financed house for the purposes of converting it to a rental property. This is how I’ve purchased more than half my rental properties, and will continue doing so. This is a niched form of real estate investing.
This reminds me that I haven’t reminded you about niches in a while. It’s one of those things that is worthy of frequent repetition.
In short, if you haven’t hitched your wagon to a specific niche target market, you’re doing it wrong.
The tax and accounting practices that will survive the up and coming AI apocalypse will not be the firms that do nothing but provide the same ol’ compliance services to anybody and everybody. You can ignore this all that you want, despite me and everybody else in the tax/accounting/financial media warning you about it for years. If you’re close to retirement, you can safely ignore it. If you’re far from retirement, however, then ignoring it is, quite bluntly, stupid.
If you want to be in business 20 years from now, you have to niche. It’s simply not optional anymore.
You need to niche the services you provide, and you need to niche down to whom you provide those services.
Pick your niches, then dominate them.
The reason I was successful in tax resolution is because I niched. That’s the hands down, #1 factor. I didn’t offer any other services — none. And I focused almost entirely on two easily identifiable niche target markets, and focused all my marketing on them and only them.
That’s all there was to it, and you have to do the same.
Seriously, if you have no intention or desire of ever focusing your practice in this manner, then I can’t help you — I don’t know how, and neither does anybody else. If you hired McKinsey to consult for your firm, one of the first things they would tell you is to narrow down your practice and focus on serving a niche. This is just that fundamentally important.
I’ve presented numerous webinars on how to niche, written about it on the blog and in my books, and presented live seminars about it. I don’t think there is anything new I can say about the process.
So this year I’ve primarily been talking about specific niches. Back in May, we held a very successful 3-day 941 resolution boot camp. At the end of October, we held a smaller 2-day seminar focusing on the lien work niche in tax resolution.
But another niche that I talk about a lot is connected to real estate. Working with agents, loan officers, investors, buyers, sellers, etc., with or without tax debts. Real estate investors make excellent niche clients for other services — accounting, tax prep, tax planning, wealth management, etc.
It’s this latter arena that I’m particularly excited about, and something I’ll be writing to you about more and more as we cross in to 2020. But for now, consider it as an example of a niche you could serve.
If you’d like an outside-the-box look at how you could possibly serve real estate investors in your practice, you’re welcome to join me on Tuesday for a live webinar on creating real estate-based financial plans for clients. The webinar is free, and CPAs will earn 1 hour of CPE credit for attending. Click here for all the deets.
Whatever service niche and clientele niche you choose to serve, I cannot encourage you enough to start making the transition to serving those niches now. Heck, start yesterday. This is really, really important, and again, if you miss this, your business is screwed in the long run, because Intuit, Deloitte, Block, and other giant AI-focused players are just going to eat you alive on the generic service, generic client side of things.