The pros outweigh the cons
I wouldn’t be doing you justice if I didn’t tell you about the cons to niching, but here are my observations:
1. Just because you pursue clients in a niche industry does not mean you have to let go of clients outside that industry. You can continue working with existing clients and even take other clients as usual. Having a niche just allows you to focus your marketing efforts.
2. About clients outside your niche industry … newsflash: most will not care! You’ll find they don’t mind that your firm has a focus, especially if you retain a group of clients outside your niche or work with multiple industries.
3. Team members who want to retain a diverse clientele are great candidates to continue serving clients in the “other” category. They can also stay engaged through specialty projects, onboarding new clients and team members, or researching new apps and updated processes.
4. Regarding a niche industry downturn—you can retain a healthy breadth of industries served or broaden your clients’ geographic footprint within your niche to reduce the risk of a regionally focused downturn. And even in a downturn, your clients will need your advice more than ever.
You’ve probably guessed that I like being in a niche. Keeping a percentage of industry diversification and expanding outside your region should reduce the risks of focusing on a niche industry or vertical. All things being equal, it pays to be a specialist!