Have SME, consumer facing law firms beaten the odds?

Rachel Buckley from The Family Law Company explains how SME law firms – particularly ones that serve individual consumers – have survived myriad disruptive forces in recent years, including the pandemic.

In 2016, Law Society horizon scanning predicted that in 2020 there would be a decline in the growth of business-to-consumer (B2C) law firms in areas including family law and conveyancing.  While no one could have predicted the actual events of 2020, did small and medium (SME) B2C law firms fair as badly as suggested?

Many SME law firms have been late adopters of technology, continuing to follow traditional law firm models and perhaps being too inward facing rather than looking at changes in the marketplace in which they operate. Just a glance at some client reviews reveals frequent complaints of difficulties in contacting a lawyer, the impossibility of accessing information from home and the anguish of how long it can take to receive a response.

It has undoubtedly been challenging. Those law firms that have prospered have been bold – reviewing and adapting continuously, and creating incremental changes to keep ahead of the competition. Be it upgrading technology, enhancing the client experience or improving the way employees are treated, there are clear aspirations and values with those firms that have flourished.

Creating a culture for innovation keeps SME law firms one step ahead

The key to any successful business has to be the cultivation of the right environment. A culture and climate that empowers employees – for instance, having an open-door policy that works. Used incorrectly, this could encroach into a senior manager’s time but with clear direction it will generate ideas and changes for the better.

This can’t be forced. Gathering legal professionals into a room to brainstorm on demand has a very slim chance of success and is likely to become bogged down in detail. But gaining an understanding of how to streamline a process during a weekly catch up has true potential to impact a business’ marginal gains.

Quick risk assessing and decision making

Agile SME firms have the ability to value scan an idea not just for risks but also opportunities.  Having a strong leadership team and trusting them with decisions or escalating to the board quickly has to be key. If the pandemic taught us anything it is that life can change rapidly. Whether the challenge is a pandemic or guerrilla marketing by a new entrant to the marketplace, those resilient firms can take stock and respond appropriately.

Making mistakes and learning from them

Staying ahead or adapting quickly means mistakes will happen. Innovative firms encourage calculated risks and embrace innovation without fear of retribution if something doesn’t quite work out. It’s a case of using the tried and tested plan, do, act review maxim to keep moving forwards. You don’t have to look far to see just how much businesses and individuals can learn from their mistakes.

While some B2C law firms have undoubtedly struggled, for others, the past two years have provided new opportunities. For The Family Law Company, the ability to be agile and responsive during the pandemic gave weight to our longer term ambitions. As a growing B2C family law firm we decidedly contradict the stark prediction of 2016.