Niche marketing has become a successful strategy for many CPA firms because it identifies target markets and resources, distinguishes your firm from the competition and generates higher profit margins.

Keys to Successful Niche Marketing

Niche markets for CPAs may include specific industries (for example, manufacturing, real estate), services (for example, forensic accounting, business valuation) or other buyer groups that have distinctive characteristics (for example, public companies, family businesses).

To identify niche opportunities, you need to develop a marketing plan that includes:

• Mission statement. A brief statement of your firm's basic purpose. Your mission statement should answer the following questions: What do we do? How do we do it? For whom do we do it?
• Situation analysis. Describe the current status of your firm, the niches you wish to pursue and your competition.
• Smart goals and strategies. "Smart" goals are specific, measurable, attainable, realistic and timely. Strategies are the action items that will help achieve your goals. For each strategy be sure to include the people responsible for implementation and deadlines.

This article has been excerpted from the Journal of Accountancy. Read the full story here.