4 Reasons to Develop a Niche Tax Client Strategy

Finding your niche as a tax preparer could be one of the most important things you ever do for your tax business. And no, focusing on a niche won’t limit your business or make it harder to find clients – just the opposite. Here’s how marketing to a niche can help you grow your tax practice and practical steps you can take to start working in the niche of your choice.

1. Clients prefer specialists over generalists

When you aren’t trying to learn every aspect of every possible tax situation, you can focus and truly become an expert in a few specific areas. When clients know that you’re knowledgeable in their specific tax needs, you have a 

2. You can create a stronger marketing strategy

Targeted, effective marketing for small businesses speaks to the consumer’s needs. And, sure, everyone could use tax preparation in some form, but when you can address a client’s exact tax worries in your marketing, they’re more likely to take notice. Whether they’re looking for someone to help with the tax implications of divorce, cryptocurrency, or starting their own business, they’ll prefer someone with expertise in that area over someone who markets a general knowledge of taxes.

3. You can reach more remote clients

It may seem counterintuitive, but niching down can increase your pool of potential clients, especially with new advances in tax software that make it easy to serve remote clients. Clients may struggle to find a tax expert in their area who advertises the specific kind of tax help they need. But if your targeted marketing efforts speak to their exact areas of concern, they will likely work with you over a local preparer. As you become involved in online communities for your niche (more on how to do that below!), you’ll find that remote clients could easily make up a significant portion of your business.

4. You can raise your rates

When you offer specialized tax preparation services, you can command higher fees. When you can confidently handle the most stressful or confusing aspects of your client’s tax returns, they’ll happily pay a premium for that peace of mind.

Getting Started in Your Niche

Research and choose a niche (or niches)

Choose a niche based on your interests and the demand in your area (or online). If you love handling small business taxes, pursue that as a niche. Focusing on taxes for military families is a great choice if you live near a military base. Here are some ideas to consider as you choose a niche for your tax business: 

  • Small business owners
  • Investors
  • Cryptocurrency investors
  • Divorcees
  • Freelancers
  • Gig economy workers
  • Sole proprietors
  • Military families
  • Social media influencers
  • People insured through the marketplace
  • People who are paying back student loans

For businesses, choose a niche from industries that have specific tax laws, such as non-profits.

Become an expert in your niche

Of course, you’ll need to know the tax laws relevant to your niche. Start reading any related IRS publications and utilize social media groups to understand the tax concerns people within your niche have. Research common concerns so that when your clients have questions, you’re more likely to know the answer. Remember that you don’t have to learn it all at once. Lay a strong foundation of knowledge in that area, and more specifics will come the longer you work within that niche. 

Get active in social media groups in your niche

Refocusing your entire marketing strategy will take time, but one step you can start immediately is finding social media groups for your niche. Facebook and Reddit are ideal places to start. If they exist, search for groups and subreddits relevant to your niche, especially local ones. Try to interact with the groups organically instead of “spamming” with self-promotion. Look for threads where members ask tax or business-related questions that you can answer. Aim to be genuinely helpful in your responses and mention that you’re a tax professional and they’re welcome to ask you more questions. Ensure your profile explains your expertise in that niche and includes a link to your business website and other social media accounts. 

Your efforts here do more than attract one client. These threads will be archived and viewed by others with the same tax questions. In the case of Reddit, these threads can come up in Google searches when others have the same question, leading them to see your expert response and possibly click on your profile and website link. 

Over time, you’ll find more clients in your niche by asking for client referrals and using niche-specific content marketing on your social media accounts. If you’re starting your tax practice from scratch, you’ll find more tips in our Ultimate Guide to Starting a Tax Preparation Business or our guide, What to Expect When You Go from Tax Preparer to Tax Business Owner.

This article was last updated on July 19, 2022.

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