Every business coach is talking about niching down? 🙄 But what does that even mean?? More importantly, what does that mean in our bookkeeping world?
Unlike web designers who can make a website for a therapist one day and a gift curator the next, because they have a copy-and-paste type of system, it doesn’t exactly work like that in our industry.
It’s much easier to work more productively, serve more clients, and attract more leads when we’re focused on one type of industry.
Let’s dig into why.
What is a niche?
A niche is a specific group of people or type of industry that you’d like to serve and market to. You can get reallyyy nitty gritty with niches or you can keep it pretty general.
Here’s what I mean:
General Niche: Boy band fan
Specific Niche: Jonas Brothers lover 😍
Super Specific Niche: Nick Jonas obsessed
Examples of Business Niches:
General Niche: Service-based businesses
Specific Niche: Coaches
Super Specific Niche: Health & Wellness Coaches
You get the point.
Why should bookkeepers choose a niche?
Because our work is not one-size-fits-all, it’s important to decide which types of businesses you actually enjoy working with.
The accounting needs of a home-building business are completely different than those of an online service provider, an e-commerce business, or a retail brick-and-mortar shop.
Plus, there are so many benefits of choosing a niche:
→ You become the go-to bookkeeper for that industry, leading to more referrals
→ Work smarter, not harder, because you’re not reinventing the wheel every time you onboard a new client, you find a rhythm and a system that works
→ Attract your ideal clients because you’ll know exactly who you are marketing to and learn more about their businesses so that they know that you truly understand their needs
Service vs. Product-Based Businesses: How are they different and which is better for you?
Deciding between whether you want to work with a service or product-based business is the first step in choosing your niche.
One is not better than the other, it really comes down to your preferences and work style.
Product-Based Businesses: High-Volume + Lots of Categorizing
Working with product-based businesses means tracking a lot of transactions.
Think e-commerce, brick-and-mortar stores, or companies that make or sell actual goods.
You’re the money tracker, managing inventory costs, holding accounts, and categorizing expenses.
Ask yourself:
- Do I enjoy sifting through hundreds of transactions to make sure every penny is accounted for?
- Am I cool with using platforms like Shopify and keeping track of inventory data?
- Does working with high transaction volume and endless categorizations sound like something I would enjoy?
If you answered “yes” to these, then you, my friend are the Monica Geller type of bookkeeper who thrives in keeping things super organized and is extremely detail-oriented – these are your people!
Service-Based Businesses: Fewer Transactions, More Client Interaction
Service-based businesses are all about invoicing, tracking client payments, and generally fewer transactions.
Perfect if you’re not into sorting through hundreds of sales every month. Here, it’s more about working closely with clients, sending invoices, and playing matchmaker between payments and services rendered.
Psst, this is my zone!
Ask yourself:
- Is problem-solving my jam?
- Am I good with having to follow up with people for payments, receipts, etc?
- Does tracking fewer, higher-dollar transactions sound like the right fit for my daily tasks?
Does this sound more like something would enjoy? Then service-based businesses are your key niche!
I would say you’re like Chandler, he can get things done but has fun doing it.
Tips for Finding Your Perfect Bookkeeping Niche
- Consider your strengths: Not just what you can do, but what you actually enjoy doing.
- Know your industry needs: Product vs. service-based clients have wildly different expectations. Does your skill set match their needs?
- Match your work style: High volume vs. client service is a big decision. Think about what your ideal workday and workload looks like, which industry type best fits?
To wrap things up
When it comes down to it, there’s no “right” or “wrong” niche. There’s only what works best for you.
Grab a coffee and a notebook and take some time to think about your skills, the types of people (businesses) you enjoy working with, the daily work that you like to do, and use those notes to discover your niché.
Need more support? Introducing The Studio!
The Studio is a community of bookkeepers just like us – people who are growing their freelance bookkeeping businesses and looking for support along the way.
I like to say it’s my Frankenstein offer because it’s not a course but more of a private community where you’ll be able to drop-in questions, hear a weekly “podcast style” chat and Q&A sessions.
Building a business is way more fun and easier when you have the right people behind you!
I’d love for you to join us.
Comments +