EXECUTIVE SUMMARY
* CPAs WITH DIVERSE EXPERTISE tell J of A readers what niche development techniques or processes helped them accumulate clients in a certain category. To learn about the automotive industry, for example, one firm attended automotive conferences, took dealership classes and interviewed car dealers.
* TO BUILD A FORENSIC ACCOUNTING, family law consulting practice, one firm identified others providing those services in its local markets. To position the firm competitively, it gathered information about their partners' expertise and their approach to marketing.
* BECAUSE AN INFORMATION TECHNOLOGY niche requires a big investment, a firm should be very exact about what it wants the IT practice to do for the organization.
* IN LITIGATION CONSULTING be aware that opposing lawyers will look at your Web site prior to taking a deposition. Be sure your information is accurate and that you can respond to questions about it.
* IN MANUFACTURING THE PUSH TO GLOBALIZE means U.S. CPAs will have to help clients with international tax issues and finding overseas providers for some accounting and financial reporting needs.
* TO START A REAL ESTATE NICHE, a CPA firm should talk to key real estate developers and brokers in its market and find out what organizations they belong to and what service(s) they would like their CPA to provide. One CPA who became a licensed real estate broker let clients know he was doing it to provide them with better service.
The gamut of business enterprise is almost as large and varied as humanity itself, and many of those myriad companies require CPA help with taxes or bookkeeping (or getting a loan or defending against a lawsuit or planning for succession or increasing their organizations' scope, efficiency and marketability in any number of ways). Through design or, sometimes, serendipity, many practitioners acquire strengths (that is, significant experience, depth of knowledge and engagement volume) in serving one or more specialized types of businesses. We asked CPAs with diverse expertise to tell J of A readers what techniques or processes helped them go from having one or two clients in a certain category to many. Their niche development tips are the cornerstone of this roundup.
In addition, the AICPA offers concentrated development support in a number of business areas, including designations such as the ABV (see "The ABV Credential: Leading the Way," page 41), CITP and PFS (see "It Works for Them," J of A, Jan.03, page 63 and "Managing Client Assets," J of A, Jan.98, page 33). For information on obtaining specialty credentials within the accounting profession and for consulting standards guidance, see "AICPA Resources," page 48.
AUTO DEALERSHIPS
Antonio L. Argiz, CPA, is managing partner of Morrison, Brown, Argiz & Co. LLP, a Miami firm with a robust car dealership niche. The firm also has service strengths in the financial institution, technology consulting and litigation support areas. The 12-partner, 64-CPA, 140-person accounting and management consulting firm began in 1969, and Argiz--who heads the automotive sector--joined it in 1977. This is what he has to say about car-dealership work:
Getting started: The best resource to grow any business is human capital (smart, hardworking staff), and there's no shortcut to success that I know of. One way to tap into the retail automotive industry is to hire former dealership controllers.
When our firm first began providing accounting and auditing services to a handful of auto retail clients in 1972, we decided to learn the industry thoroughly. We attended automotive conferences, took classes and talked to professionals from all corners of the business. Our dealership client list is now more than 100. (For more information on serving the automotive industry, see "Kick the Tires of a New Niche," J of A, Sep.02, page 28.)
Marketing: Attendance at business and social events increases our visibility. To get to know auto dealers, our firm offers seminars and participates in industry meetings. We put our name in front of CFOs by mailing industry alerts and informational memos several times a year, and we send a quarterly newsletter, Driving Profits.
Best thing we did: Business leads generated through satisfied clients are the easiest deals to close. Word-of-mouth marketing has helped open many doors. The best thing we've done is to consistently give clients good service.
Worst thing we did: We didn't plan our growth. Our dealership division could have developed more quickly if we'd focused on bringing in and training staff. Not having enough manpower at times has been limiting.
Best aspect of the niche: Auto dealerships offer great potential for cross-selling services. Dealer clients frequently need business valuation, fraud prevention, information technology and operations consulting.
Worst thing about the niche: The automotive industry has undergone extreme change in the past five to ten years, mainly due to consolidation and how car buyers use the Internet to shop. CPA firms have to invest continuously in acquiring the expertise to stay ahead of the competition. Understanding the evolving role of technology is the key to meeting dealership operations' needs.
The budget (for the overall practice): Salary, 62%; marketing, 6%; and overhead, 32%.
How the practice will change in the near future: Consolidation has caused the number of U.S. dealerships to decline. In some cases single-point dealerships (those with only one location) are closing their doors, and many multipoint car dealers have been bought by larger businesses and are now subsidiaries. The automotive niche includes subsegments such as new-car and used-car dealerships. Understanding their differences can help the firm successfully market to them.
Dealership owners (who often are the general managers, too) make most of the purchasing decisions in their organizations. Their controllers and CFOs influence them when it comes to contracting for professional services, however. General managers frequently are the initiators--the people who identify a need and make recommendations based on internal observations. For example, they might spot low productivity from their service department, high interest due to low-vehicle turnover or suspected employee theft--all areas where CPA controls knowledge can help the business. General managers or controllers directly use and evaluate what accountants bring to the table.
Tony Argiz can be reached at targiz@mba-cpa.com.
FORENSIC ACCOUNTING/FAMILY LAW
Donald A. Glenn, CPA/ABV, CVA, CFE, founded Glenn & Dawson LLP in 1975. He and partner Leslie Dawson, CPA/ABV, CVA, say the seven-person, Walnut Creek, California, firm's hottest niches are forensic accounting and investigations, family law (including related business valuation) and civil litigation support. The partners use accounting, auditing and investigative skills to uncover the financial facts of a situation and, when necessary, give expert testimony. Here's what they say has helped build their business:
Getting started: Few others in our region provide family-law CPA services and investigations (examining financial records to determine their accuracy for litigation purposes), so our best referrals resource is association with skilled attorneys. For guidance we suggest locating a referring attorney to act as a mentor (don't be afraid to ask). To get business, ask experienced CPAs to recommend you when they are unable to take an assignment.
Marketing: Activities we've used or recommend include
* Providing pro bono services for family law courts.
* Advertising in local county bar association newsletters and magazines.
* Teaching litigation support and family law topics to state societies and professional organizations.
* Joining the local bar association and attending section meetings for family law, probate and bankruptcy.
* Speaking to bar associations and attorney groups--sample subjects include business dissolutions, fraud awareness and detection and divorce.
* Giving an annual seminar on litigation topics for referring attorneys and judges.
* Serving as an officer of a professional organization. (This sits well with attorneys when they assess your standing in the professional community.)
* Finding out which CPA firms in your local market provide litigation services, and gathering information about their partners' expertise and their approach to marketing. Use what you learn by emulating something you admire or positioning your firm competitively.
* Sending a letter and brochure to judges ha your area saying you're available to serve as the court's expert (do this only after you have qualified in court and testified as an expert).
* Calling attorneys who engaged you after cases are concluded to get feedback on how you might serve them better.
* Sending a personal thank-you note to a referral source--always.
