Although it’s efficient to have clients with similar operations, varying your client market is the best option for your accounting practice in the long term. You are more profitable through your diverse service offerings, recognizable through a wider marketing channel, and sustainable by reducing your business risk. Avoid being a niche accounting firm by having a varied customer market.
Utilization of Diverse Expertise
Offer your clients different services based on your capabilities. To diversify your expertise, consider bringing in additional staff. By posting positions in different media outlets, conducting interviews, reaching out for referrals, and introducing new members of your team to clients, you are effectively marketing your new services through the job search. There are minimal costs in expanding the services you provide to an existing customer. Instead of incurring costs searching, traveling, researching, and communicating with new customers, work with your current clients in different ways.
For example, performing financial analysis on a set of financial records requires less time and money if you’ve worked with the client before. You already know its accounting system, industry, and financial records. Because of this, you can quote the most favorable rate and still turn a profit for your company. .
Sustained Business Opportunities
Having a varied client market reduces your business risk. You are more likely to have sustained business opportunities because you have more clients in more areas requesting more services. If one of those areas diminishes, the other areas would still support your business. If your top client decides to no longer utilize your services, you still have a range of other clients. If a certain geographical area experiences an economic downturn, you still have clients in other locations. If your primary service such as bookkeeping starts to falter, other services such as implementing financial software or helping establishing investment portfolios can take its place. Spreading out what you do and who you do it for leaves your company in a stronger place.
Ways to Diversify Client Market
If you’re looking at ways to diversify your client market, start by assessing your current clients. Ask yourself what they all have in common and if there is any demographic you’re missing. One example could be client size. Although you may be limited to the types of companies you help based on your available resources, consider attempting to land larger companies. Even if you’re not able to support all of their needs, having the opportunity to serve a small portion of their accounting needs may open future opportunities.
Consider where your clients are located, and understand the benefits of having your clients in different areas. Your client’s word-of-mouth advertising is most effective in new markets, so providing your services in areas you historically have not is a simple way to expand your marketing campaign. Although you incur additional travel costs to reach these customers, you might be able to build in a reimbursement clause into your service contract.
Lastly, look to acquire clients in other industries. You don’t want all of your clients working in the same line of business in the event that industry fails or undergoes massive reform. Assist service companies as well as companies that sell goods. Locate clients that sell goods online or in a storefront. Consider your areas of expertise and whether you are able to service nonprofit entities as well as for-profit entities.
Varying your client market reduces your company’s overall risk. Look at the customers you serve now, and attempt to diversify who you work with to improve the health and long-term prospectus of your accounting business.