HighStreetLawyer.com

Don’t spend your money joining a legal brand – Four other things small law firms must do instead

When we established HighStreetLawyer.com we set out to do two things. To create a recognizable consumer brand for legal services and create a network of small local high street solicitor firms. We thought, following the introduction of the Legal Services Act and the liberalisation of the profession that both of these approaches were needed. We were wrong! The consumers of legal services whether private individuals or businesses do not want or need a unified legal brand. Legal services do not need to be provided by household names. The world is not ready for big brand law. What consumers want is good quality advice and assistance delivered locally at transparent prices in a consistent manner with a focus on great customer service.

More small law firms are finding it difficult to get insurance which will result in them going out of business by the end of this year. Other firms are being forced to close due to bad financial planning. Many firms don’t know where their next piece of work is coming from so instead of spending time on marketing to get more work, they cut costs even further making it difficult to service any work if it does come in. Work received from referral companies, if firms even receive any leads, is considered by many firms as low quality and many don’t even bother to return the calls, creating a downward spiral of externally referred work. None of these problems facing small law firms are new. They have just been brought into sharp focus because of the Legal Services Act, liberalization of the market and the changes in regulation and the insurance market.

With big brand law currently dead in the water, small law firms should be focusing on four key areas, to make sure that they are competitive in their local market.

Marketing to existing and potential client base – News of law firm closures and difficulties are filtering through to consumers. You had better remind your clients that your firm is still alive and kicking. Send them a newsletter, connect with them on social media, invite private clients in for a coffee and a free will review or organise a breakfast briefing on employment changes for your business clients. If you are not continuously marketing to your client base, someone else will.

Make sure your training and development is up to date – We all have to do CPD but make sure that you spend your time doing something that is going to add value to your practice. Focus on two areas in the next 12 months that you are going to become an expert on and find a training programme that can help you to achieve it. If you can’t find one, HighStreetLawyer will develop one for you. It’s essential to stay ahead of the game and proving expertise through knowledge is key.

Get the best deal on your outgoings – Cutting costs can only go so far before you have no more costs to cut if you are going to deliver a good quality service. Unfortunately, small law firms have very little buying power when it comes to supplies that they need on a recurring basis, even though most firms are buying the same set of services from a fairly small group of suppliers. Collaboration through a buying club can help save you money. It can even save your client money if the costs are a disbursement that you normally pass on, making you more competitive.

Revise your business plan or if you don’t have one, start one – Banks and insurers used to recommend that their law firm clients have a business plan that deals with business continuity, risk management, succession planning, financial management, business development and sustainability. Now, they are insisting on it. You don’t need a MBA to produce a decent business plan that helps you to highlight the area that your business needs to focus on in the short and medium term and to set some goals for the longer term. As your firm evolves, make sure your plan is up to date and still reflects your realistic aspirations.

Without the need to spend time and resources creating a brand that no one currently needs, we are devoting our attention to helping small law firms develop their own brand through marketing, stay competitive through training and procurement and run a strong business by having a relevant business plan and strategy. Email gary@highstreetlawyer.com to find out more.