Ahead of the curve or your head in the sand?

Earlier this week I was lucky enough to be invited to the Legal Futures conference "New Ways to Practice Law" as a panel speaker alongside the other emerging legal brands. Six months earlier I had attended as a delegate and heard from the regulators and industry commentators. This time the majority of the speakers were speaking about their business models either launched or planned. We heard from Rocket Lawyer - a legal document and lawyer locating service part owned by Google Ventures. In their domestic market in the US, Rocket Lawyer has sold over 30 million legal documents. A similar company, Legal Zoom, claims to be well known by 50% of the American consumer market. We also heard from Legal 365's founder Ajaz Ahmed. A self proclaimed shopkeeper perhaps better known for creating and then selling Freeserve, he brings a very fresh approach to consumer legal services, even though he refused to reveal how his business model plans on attracting new customers. An existing industry provider, Epoq, told the conference that the days of the small local firm is doomed and that the consumer market will be dominated by brands. More than one speaker confirmed the death of the partnership as viable business model.

The delegate list was indeed impressive and although the organisers claimed to have over 100 lawyers in the room, it appeared to me that the majority of attendees were either suppliers or advisers to lawyers, new market entrants themselves or industry commentators. I found myself asking, and tweeting too, whether it was worrying that there weren't more lawyers in the room listening to those very people who will be their threat or opportunity in the post Legal Services Act world. One response was that the lawyers were at work and knew everything they needed to know. A more concerning response is that the traditional suppliers are still playing a waiting game to see if the planned new providers actually enter the market and cause an upset. There is an excellent argument about doing due diligence and not jumping too soon. However, these businesses have either already launched or will be doing so soon so maybe the wait is over.

The one thing that the delegates and speakers had in common is that they now know what the market might look like and are already one step ahead of those who don't think the LSA will affect them. Well done to Legal Futures for another excellent conference and a great line up.

Legal industry shake up is a business opportunity

THE Legal Services Act has just come into force and it threatens to decimate high street legal firms. For years, in legal seminars across England and Wales, high street lawyers have been crying out against it. The new law hopes to create competition, but many have warned it could squeeze out smaller firms who lack the marketing muscle of the giants.
But Gary Yantin has come up with a plan to save the little known lawyers in your town. “I was sat in this seminar a few years ago, listening to a talk about how the Legal Services Act was going to be very scary for small high street firms and I thought there has to be another way.” Indeed, there was. It was then and there that Yantin hatched the idea for his business, High Street Lawyer.
“I thought there has to be a way of protecting the consumer and keeping high street lawyers in work.” He had been happily working in high street and in-house legal teams since 2000. “I got home, spoke to my wife about it and thought if I don’t do it, I’ll kick myself.”
The idea was simple. Create a brand that hundreds of small law firms can sit under, one that offers the same products at the same standards, at the same price. “It’s a bit like Interflora, where a bunch of Mother’s Day flowers look and cost the same from whatever Interflora shop you buy them from. Basic legal services can be offered in the same way.” For instance, simple will services can be bought from High Street Lawyer for £200.
GETTING STARTED
To get started, Yantin went about forging partnerships and gathering money from friends and family. It wasn’t long before he had strong team of investors around him and half a dozen high street firms. He took the plunge, working full time on the business from July 2010.
“I was nervous, but I think nerves are a good thing. The business has huge scalability so it keeps me motivated.” This attitude seems to have done the trick. He’s on track to hit his 100 law firm target by 2012.
“I’ve had to learn loads of things fast, but my investors have been great – they bring so much knowledge and expertise to the table.” Yantin’s investors have backgrounds in franchising, retail, finance and professional corporate services. Yantin says getting great investors are an “invaluable” and highly recommended resource for anyone planning to start a business.
But what’s the toughest challenge yet? “Sticking to your original concept and not getting distracted by what other people in your field are doing. We’re had couple of sweaty moments, but I know we’re doing the right thing.”

This article first appeared in CITY AM on 10 October 2011. See the full article on http://www.cityam.com/business-features/legal-industry-shake-business-opportunity

BANG

BANG!

So, today is the day of the introduction of the Legal Services Act and Tesco Law. As from today, non lawyers can own law firms and provide legal services. Law firms can raise external finance and attract investment into their businesses. Is it the BIG BANG speculated by commentators on the legal industry? Well, not quite.

I have not seen any solicitors firms changing their signs permanently to “Closed” or lawyers jumping out of their windows because of the threat of new entrants to the market.

Practically, most new entrants will be delayed from entering the market until early next year due to a delay in the Solicitors Regulation Authority, the main licensing body, being ready to accommodate new business structures. One ABS has been licenced by the Council of Licenced Conveyancers but they are exclusively providing conveyancing services.

As seen on the BBC breakfast couch this morning, organisations such as CO-OP are preparing to enter the market and launch their legal services business when the SRA issue is solved.

Smaller law firms now have a great opportunity to present their expertise to the market to show the public why they would benefit from using traditional high street solicitors as opposed to retailers and insurance companies. Expertise, qualifications, experience, regulatory environment, risk management systems are all some of the selling points but they are assumed by the consumer when using a trusted professional. A far better approach would be for small law firms to focus on delivering great customer service and really getting to know their clients. Then solicitors will be able to play the retailers at their own game.