header-logo header-logo

Firms chart a steady course to growth

07 June 2023
Issue: 8028 / Categories: Legal News , Legal services , Fees
printer mail-detail
Small law firms have tempered their bullish ambitions and are focused on steady growth, according to the latest Bellwether report from LexisNexis.

Stability, investment and organic growth are the order of the day rather than the riskier strategy of merger and acquisition, the report, ‘Bold ambitions?’, found. Instead of re-invention, small firms are focusing on acquiring new clients or expanding the work they do for existing clients. Only 46% of firms expect to grow in the next 12 months (compared to 66% of those surveyed in 2021), with 38% expecting to remain stable.

‘The previous Bellwether surveyed the legal market during the post-lockdown legal boom and prior to the cost-of-living crisis, so this shift in sentiment is understandable,’ says Debbie Sumner, go-to-market consultant at LexisNexis. ‘Organically growing revenue will be the theme of the year for many firms.’

In order to achieve growth, firms are embarking on a major marketing push. 81% cited attracting new business as one of their top challenges. This is clearly reflected in their investment priorities—in 2023, an incredible 81% of firms plan to increase investment in marketing (compared to only 24% in 2022), and 88% intend to boost investment in business development.

In contrast, less than a quarter intend to implement new technology in the next 12 months.

The research, conducted among 169 solo and smaller firms, found small firms leading the way when it comes to flexible billing and tailoring fee options to fit the client rather than the firm. The overwhelming majority—92%—offer flexible payments such as fixed, capped or flat fees (a mere 8% charge exclusively by the hour). The report highlights that this is ‘drastically different’ from the wider market—a 2021 survey by tech firm BigHand found alternative fees were offered by just 43% of firms with 100 or more fee earners.

Geraldine Morris, a family law practitioner before moving to head up LexisPSL Family, says smaller firms are offering ‘more creative funding solutions… with “pay as you go” or “unbundled services” more commonplace’.

The 2023 Bellwether survey report, published this week by LexisNexis, is available here

Issue: 8028 / Categories: Legal News , Legal services , Fees
printer mail-details

MOVERS & SHAKERS

NLJ Career Profile: Maria Karaiskos KC, Church Court Chambers

NLJ Career Profile: Maria Karaiskos KC, Church Court Chambers

Maria Karaiskos KC, recently appointed as the first female head of Church Court Chambers, discusses breaking down barriers, the lure of the courtroom, and the power of storytelling

Cripps—Simon Main

Cripps—Simon Main

Firm strengthens residential property team with partner hire

Hugh James—Danielle Cahill

Hugh James—Danielle Cahill

Private wealth disputes team welcomes partner in London

NEWS
Michael Zander KC, Emeritus Professor at LSE, tracks the turbulent passage of the Terminally Ill Adults (End of Life) Bill through the House of Lords in this week's issue of NLJ. Two marathon debates drew contributions from nearly 200 peers, split between support, opposition and conditional approval
Alistair Mills of Landmark Chambers reflects on the Human Rights Act 1998 a quarter-century after it came into force, in this week's issue of NLJ
In his latest Civil Way column for NLJ, Stephen Gold surveys a raft of procedural changes and quirky disputes shaping civil practice. His message is clear: civil practitioners must brace for continual tweaks, unexpected contentions and rising costs in everyday litigation
Barbara Mills KC, chair of the Bar 2025 and joint head of chambers at 4PB, sets out in this week's NLJ how the profession will respond to Baroness Harriet Harman KC’s review into bullying, harassment and sexual misconduct at the Bar
In a very special tribute in this week's NLJ, David Burrows reflects on the retirement of Patrick Allen, co-founder of Hodge Jones & Allen, whose career epitomised the heyday of legal aid
back-to-top-scroll