At Panalitix’s recent Firm of Now event, Rob Nixon laid out his four rules for identifying and capitalising on a client niche.
Initially there are a few steps to consider when deciding on a niche. Is your niche geographic, service related, behavioural, industry based or mixed? A behavioural niche, for instance, would be “I help entrepreneurs start and then profitably exit their companies”.
Once you suspect that you’ve found a niche, Nixon’s formula centres on four questions: Are there lots of them? Do they have the ability to pay? Can you make a difference to them? And, are they enjoyable to work with?
The four rules of thumb
Niche doesn’t mean tenuous esoterica. One can’t simply transpose a curious personal passion into a viable client niche. “You may like the ‘Mangalitsa Pig’ because they are woolly and a rare breed of pig,” writes Nixon. “I am sure there are farmers who specialise in the growing and developing of said pig. However, I highly doubt there are that many farmers. I think your niche market needs at least 5,000 of them in your chosen geographical region.”
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About Francois Badenhorst
I'm AccountingWEB's business editor. Feel free to get in touch with comments, tips, scoops or irreverent banter.