Layoffs, cutbacks, furloughs:
if you’re familiar with large corporate law
firms you’ve likely noticed the rippling effects
of the current economy. Last year was the worst
year ever for layoffs at large law firms. In
fact, over 12,000 lawyers were laid off in 2009
from large firms according to ABA Journal. And
confidence in the economy among managing
partners at large law firms nationwide hit new
lows in 2009 according to the latest research
from the Citi Private Bank Law Firm Group.
But there is one bright
spot in the statistics. Naturally the cutbacks
are a result of lost business and some of the
loss of clients is related to business closures,
bankruptcies, foreclosures and the like. But for
the most part, those clients are still in the
marketplace. Knowing where they are going is the
key to turning current losses into a fortune.
As clients become ever
more price sensitive with the shrinking economy,
many are fleeing large corporate firms in a
desperate attempt to rescue their budgets. Where
are they going? They seek refuge in the less
expensive boutique style firms offering quality
advice at lower prices without the huge
overhead. And lawyers at these smaller firms are
capturing work that once went to big firms
because they can offer the lower cost
alternative.
Combine a flooded market
of clients hungry for your services with all
time low costs of doing business, and it’s the
perfect time to capitalize on the opportunity!
So if you consider yourself in an "unfortunate"
situation of "forced entrepreneur," think again.
You just might realize that small can be
beautiful for law firms.
Dominique Molina is a
licensed CPA and business coach. She is an
experienced business owner and real estate
investor and specializes in business strategies
for business owners and investors. She is
partner atQuixana, LLC, Advanced Legal Business
Solutions with offices in San Diego, California.
For more information, please visit
