Niche Development: When, Why, How

1. Niche Development: When, Why, How A Presentation to BKR International October, 2012

2. Today’s Panelists • Andre Buijsman, Flynth, The Netherlands • Andre.Buijsman@flynth.nl • Richard Brock, The LBA Group, Jacksonville, FL • Rbrock@thelbagroup.com • Keith Olson, Mize & Houser Company, Kansas City, KS • olson@mizehouser.com

3. Anchin at a Glance • 53 partners, staff of 350 • Largest single-office firm in the U.S. • One of the best-managed firms in the U.S. (Inside Public Accounting) • Named Best Accounting Firm to Work For, 2009 – 2011 • Named a Best Place to Work in New York State and New York City, 2008 – 2011 • Member, BKR International

4. Anchin at a Glance • The depth and breadth of services that we provide are strengthened by our membership in BKR International, ranked as one of the top affiliations in the world. BKR members are well-established national or regional firms in more than 75 countries, capable of handling international assignments in all of the main business centers of the world and experienced in coordinating activities between countries. • As a member firm, the BKR affiliation allows us to: • Tap into a worldwide network of expertise in a vast array of specialized areas. • Deliver the depth of services to our clients provided by the Big Four and national firms. • Expand our domestic and international coverage and expertise by utilizing our BKR counterparts in cities around the globe. We can deliver responsive service to our clients wherever their need happens to be. • Provide our clients with key business contacts throughout the U.S. and the world. • Simply put, our affiliation with BKR allows Anchin to deliver the breadth and depth of services provided by the Big Four and national firms -- but our clients do not bear the cost of national or international overhead.

5. Anchin at a Glance Industries Services Accounting/ Auditing Business Advisory Economic Development Business Management Business Recovery Business Risk Compensation and Benefits Cost Segregation FAS 109 and FIN 48 International Services Litigation, Forensic and Valuation Services Mergers and Acquisitions Overhead Cost Reduction Pre-Transaction Services State and Local Taxation Tax Controversy Tax Planning and Compliance Trusts and Estates Wealth Management Workers’ Compensation Review • Apparel, Textile, Diamond and Jewelry • Architects/ Engineers • Construction • Family Office/ High Net Worth • Financial Services • Food/ Beverage Services • Insurance • Law Firms • Manufacturing/ Distribution • Public Relations/ Advertising • Technology • Nonprofit Organizations • Real Estate

6. Flynth

7. The LBA Group • Largest accounting, consulting and wealth advisory firm in Northeast Florida • One office in Jacksonville; 12 partners, 90 staff • Niches: MD and Dental Practices; Not-for-Profits; Manufacturing; Real Estate and Construction; Professional Services • Niches in development: Transportation & Logistics; Auto Dealerships; Governmental Entities • Service Specialties: Forensic, Litigation & Valuation Services; ERISA Audits; Third Party Administration Services; Healthcare Consulting Services, Wealth Management

8. Mize & Houser

9. What is a niche? • A dedicated team of experts with proven experience in a specific industry or service line • Industry expertise • Service expertise

10. What is a niche? • Begin by looking inside your existing practice: • Mine your client base: a concentrated area of expertise exists within firm or firm intends to purchase expertise • Mine your partner base: a dedicated leader. • Mine your staff: interest in developing this specialty. • Mine your competition: is there a void in the marketplace that you can fill?

11. What is a niche? • Determine client existing needs/ pre-determine client needs (i.e., international taxation). • Watch for emerging industries. • Listen to the marketplace; often regional-specific • Biotech • Technology • Agriculture • Oil/gas • Provide services to a “respectable” number of firms within industry • Financial Services: > 400 clients • Architecture/ Engineering/ Construction: >400 clients • PR/ Advertising Firms: > 15 clients • Launch ancillary practices to enhance audit practice • R&D credits • Economic Development credits • State and Local Taxation • Prove that you go beyond traditional accounting and advisory services

12. What is not a niche? A niche is not … • Someone’s hobby or “interest” (i.e., wineries, classic cars) • A “handful of clients” with no dedicated team leader, focus, or marketing budget • A jump-start at an emerging “hot” industry (i.e., biotech) with no internal expertise • We know who we are, who we want to be, and where our strengths are not … • Public Companies • Banks • Insurance Companies • Auto Dealers • Educate your partners as to your philosophy.

13. Niche Marketing = Strategic Marketing • Does niche development mesh with Firm’s strategic marketing goals? • Define benefits of specific niche development • Increased revenue • Improved name recognition • Marquis clients within niche • Define and identify targets • Define ability to acquire targets; set measurable goals • Assess profitability • Assess client tenure (recurring vs. non-recurring?)

14. Why niche marketing? • Era of generalist is over (in all walks of life/ service delivery) • Provides focus for marketing efforts • Defined targets • Development of compelling message • Activity to measure • Focus budget dollars • Charts a career plan for young professionals • A “bull’s eye” approach to business development

15. Why niche marketing? • Allows firm to demonstrate expertise • Increases profitability • Increases efficiency • Allows staff to specialize • Increases staff retention • Reduces geographical barriers • Increases knowledge of clients • Reduces dependency on industries affected by a economic downturn • Reduces risk exposure on industries where Firm lacks relevant, deep expertise

16. Plan SMART • Create marketing plans for each niche that are SMART • Specific • Measurable • Achievable • Realistic • Time bound • Examine your firm’s business development ratio: # of referral meetings/ # of prospect meetings/ # of new clients

17. Plan SMART

18. Discovering Niche within Firm • Analyze your client base • Segment by size, industry, service • Analyze 2-3 years of revenue • Examine realization • Examine staff utilization • Analyze staff leverage: what industries have best staff to partner ratio? • Assess growth potential • Define “ideal” client profile based upon existing/ future clients • Consider seasonal advantages • Employee benefit plans • Non-profit organizations

19. Discovering Niche within Firm • Assess your talent, outside relationships • Existing talent within firm • Credentials • Relevant referral sources • Assess the marketplace • Growth potential for service • Over-serviced or under-serviced by competition • Industries with unique tax planning opportunities not known by generalists • Architecture/ Engineering Services

20. Discovering Niche within Firm • Can acceptable growth happen organically? • Construction • Architecture/ Engineering Services • Food/ Beverage Services • Can you jump-start growth through lateral hires or merger (boutique practices)? • Real Estate • Litigation Support • Business Management • Financial Services

21. Building Niche Plan • Develop team • Partner-in-charge • All staff levels • Create dedicated marketing plan (for each niche) to create year’s road map • Goals: New business • Target List Development • Referral List Development • External Marketing Activities • Events/ sponsorships/ organizations • Internal Marketing • Marketing Communications • Client Retention/ Cross-Servicing • Meet regularly as a team to monitor activity/ success

22. Building Niche Plan:Internal Marketing • Must work inside firm first. • Develop team and educate others: • CPE programs • Lunch ‘n learns • “Success” stories via email, Intranet (staff recognition) • Partner presentations at monthly partner meetings

23. Building Niche Plan: External Marketing • Develop appropriate collateral (brochures, service sheets) • Position firm as thought leader • Newsletter • Email blasts • Client alerts • Client roundtables • Twitter • White papers • Webinars • Join relevant industry/ trade organizations; move into positions of leaderships • Stage industry events • State of the Construction Industry • CEOs from each sector • Building the Future: Recognizing Outstanding MWBEs and Their Advocates • Awards program • Keynote speaker • State of the Food/ Beverage Industry • CEOs from small, medium, large company • Proprietary survey • A Conversation with Former Governor David Paterson (Financial Services) • Financial Services executives

24. Case Study: Physician Client Update

25. Case Study: Physician Practice Salary Survey

26. Case Study: Construction Services

27. Case Study: Construction Services

28. Case Study: Construction Services

29. Case Study: Construction Services

30. Case Study: Food/Beverage Services

31. Case Study: Food/Beverage Services

32. Case Study: Litigation Support

33. Keys to Success • Focus on one niche at a time. • Dedicate appropriate resources; make a plan. • Create a dynamite marketing message, marketing plan around that niche. • Become the expert. • Create “hit list” of top prospects and work that list (meetings, invitations, news articles, etc.). • Work referral network. • Hold consistent niche meetings to remain focused on plan/ goals.

34. Questions for Panelists

35. Questions from Audience

36. Contact Us • Frank Schettino, Anchin, Block & Anchin, New York, NY • Frank.schettino@anchin.com • Andre Buijsman, Flynth, The Netherlands • Andre.Buijsman@flynth.nl • Richard Brock, The LBA Group, Jacksonville, FL • Rbrock@thelbagroup.com • Keith Olson, Mize & Houser Company, Kansas City, KS • olson@mizehouser.com