Knowing the market niche you are going to address is vital to achieve the success of your business. Determine a niche is to know the profile of the client, as well as determine their characteristics and needs.
It is important that you specialize your business in an area where the needs of the clients are not covered, or where the competences do not offer a good service or product.
From theentrepreneurialaccountants.com I want to offer you some advice so that you choose most profitable accounting niche.
1- Determine what your skills are. Identify your strengths, abilities, talents and resources. In case you are beginning, this applies to your person. If you already have a business, the analysis is for the company as an entity that already has a life of its own and is offering products and services.
2- Decide how you are going to specialize. There are many ways to specialize, for example: you can do it by geographical situation, by age, by the size of the clients, by the type of product, by the quality, price, and distribution channel, among others.
3- Measure the potential of the chosen market niche. Try to choose at least three market niches and apply the following questions. Do not answer by assumption, but through a thorough investigation .Do the members of that market niche have a true desire or need to buy that product or service? Is there really a need or do you have to invest in creating it? How unattended is that market niche? How many companies or are people attending to it at this time or do they intend to do it? What is the size of that market? Is that size sufficient for another company and to generate enough sales to generate the profits that the investment in the business will require? What is the level of risk or volatility that this market has? How easy or expensive is it to enter that market? What do you think will be the immediate or medium-term reaction that the competition will take when your company enters? That niche market? What is the purchasing power of the members of that market? Is it a new or newly established market? What are the habits and customs of the members of that market, their values, preferences, culture and religion?
4- Decide if you are able to meet the chosen market niche. For this you have to detect if it is an easy niche to reach and take care of, by its location or other particularities, if you know what the costs of this market niche will be and if the potential sales are attractive enough to make that investment and generate profits, if You must establish additional investments to those you already have to venture into that market niche, if you must develop new marketing channels to reach them, if they will be operating costs in that market niche, smaller, equal or greater than those of the competition, if this new market niche will affect the operations that your business already has or what it is currently doing and if you will be able to better meet the needs of your niche market, than the competition.
5- Analyze the future of that market niche. Determine how stable in time is the market niche you have chosen? Is it a mature or very young market? Will your company be flexible enough to adapt to any changes in its market niche? May it cost you to refocus or redesign your products or services when circumstances warrant it? What is the probability that your market niche will run out, stagnate or die?
6- Think if you are going to feel comfortable taking care of this market niche. Although subjective is heard this point is very important, choose a job that you are passionate about and with which you feel comfortable both with people and with the service.