It thus makes sense that niche market experts are able to provide better service, charge higher fees and retain larger profit margins. Say, for example, that you were an accountant that focuses on providing professional services for dentists. Obviously, your job would become easier as you gained experience dealing with more dentists and became better acquainted with the industry in general. Furthermore, dentists talk to other dentists, which will in turn hopefully lead to more referrals for you. In fact, you might actually receive more general referrals simply because of others' heightened sense of your worth.
Experts get a lot of respect and, consequently, praise - which is sure to lead to referrals.
You don't necessarily have to create a niche in a particular industry. An accountant, for example, can cater to the specific needs of businesses such as financial planning, business valuation, insolvency and bankruptcy. Be sure to remember that because you're creating a niche, that doesn't mean that you have to focus solely upon it - you are still able and more than capable of performing general work. Keep in mind, that simply because you decide to focus on a specific industry, you are not guaranteed an endless flow of customers. The reality is that you still need to make your niche market aware that you are able and willing to assist them.