Law Management Blog

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New Business Models

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In looking at new ways to build revenue and more importantly to preserve margin I have recently been talking to a number of firms about developing a service provision model that will afford smaller firms the luxury of scalability using the resources of a larger firm. This has met with a very positive response from those firms involved and will lend itself to firms of all sizes in England and Wales. Of course I would be happy to talk to firms about it and discuss the detail as it applies to them.

What these conversations have shown is that firms are beginning to wake up to the reality that in the chase for the almighty dollar growing the top line without consideration for profit is no longer a viable strategy, if it ever was. I think a number of smaller firms fear that the revenue line is going to come under increasing pressure over coming years, economic recession aside, and that they have to focus on the business case for continuing to do certain work types or at least doing them with a traditional model. It is time for firms to realise that they have more to sell than their intellectual knowledge. They have brand value, trust and access to a clientele that lots of limited companies could spend a fortune trying to create and still fail. It is time to leverage that value before it is eroded by the changes in the legal services market.

The current economic climate has, without doubt, caused firms to look at their business and in some cases cut staff and practice areas to the extent that in my view they should question whether they should ever rebuild them. A different business model may mean that they can make the same profit from a work type without rebuilding and servicing the staff costs.

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Written by Andrew Hodges

June 3, 2009 at 4:56 pm

Posted in Comment, LinkedIn

Tagged with , , , ,

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