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Recent years have been a roller-coaster ride for small firms and solo practitioners. However, the legal sector is notoriously resilient, and the pandemic and current economic, and political challenges seem to have been a confidence booster for the smaller end of the legal market. 

This is proven in the Bellwether 2023 report, which revealed a strong interest amongst smaller law firms and solo practitioners to grow their businesses.

Almost half (46%) of respondents said they expect the performance of their firms to grow over the next 12 months, which is a slight decline from 51% in 2022. "It's still remarkably positive given our current economic climate," says Debbie Sumner, Go-To-Market Advisor for small law firms and solo practitioners at ÀÏ˾»úÎçÒ¹¸£Àû.

Respondents overwhelmingly reported plans to grow organically by acquiring new clients or gaining more work, over traditional methods such as mergers and acquisitions (M&A). Only 13% of respondents said they plan to grow via M&A.

And, given that 68% rated 'expanding the number of areas practised' as either 'not very important' or a tactic not used, clearly most respondents expect their growth to come from within their specialist practice area.

Nearly 90% of respondents who said growth is on the cards plan to invest more time and money into their business development strategies. But, how can small law firms grow and attract new business through business development and marketing tactics, whilst keeping their investment to a minimum?

1. Ask for referrals

Zoë Bloom, Partner at London-based family law firm, BloomBudd, established in 2022, says her team gains new business by reputation through trust and referrals. 

Referrals by existing clients are an extremely effective way to win new business at minimal cost. Of course, this means keeping clients happy with your services and having strong client relationships. Small law firms are known for their excellence in this area and pride themselves on their high-touch client experience. A significant advantage compared to larger firms.

For more on examining valuable sources of referrals, check out the section on how to ‘Leverage your existing clients’ in our article about unique tactics for small law firms to win new business. 

2. Networking: both online and face-to-face

Rita Gupta, Managing Director and Solicitor at LGFL Ltd. emphasises the importance of being “everywhere —and be helpful."

We all know the allure of online events since their rise to fame during and post-pandemic; they’re cheaper, easier to commute to, and it’s easy to make a good impression when you have the likes of viral articles from Tom Ford teaching us all . 

Here at ÀÏ˾»úÎçÒ¹¸£Àû, we’ve observed a groundswell toward in-person events. Attending seminars, talks and hosting PR events all contribute to "being out there." It provides opportunities to tell clients what you can offer and build good client relationships. In the legal world, good client relationships are key. Get to know potential clients through networking and introduce your services.

3. Establish yourself as a thought leader in your practice area

Very few Bellwether respondents, only 16%, said that expanding the number of practice areas is important. Instead, becoming a 'thought leader' in your specialist area by ‘defining a unique selling point’ that will resonate with potential clients is a much more effective tactic. 

Establish yourself as a thought leader using online platforms, such as LinkedIn, Reddit, and Substack. Why not contribute to the Law Society pages for the Small Firms Network? There’s a myriad of platforms where you can publish useful content and then direct your potential clients to. 

Just look at this article, for example. You’re reading this because you identify with the topic and you want to learn. By providing such content, ÀÏ˾»úÎçÒ¹¸£Àû demonstrates we know and understand our clients and the challenges they face.  We want to support you and help you find effective solutions. Explore Lexis+ and see how you can access legal research and practical guidance in one powerful search. 

4. Use your website

Think of your website as your online dating profile. It’s your first impression and introduction to new clients. 

Top tips:

• Use content and SEO to drive traffic to your website.

• Make it easy for clients to contact you through your website, and be responsive.

• Use case studies and testimonials to 'talk' to potential clients and encourage referrals.

Gupta refers to the power of testimonials: "Get as many as you can. This takes time and effort and has to be a part of a longer-term marketing campaign. It's admittedly much easier with an already established reputation."

Bloom points to the importance of having an 'up-to-date' profile: "Nobody ever really knows when we will be needed, so keeping a profile up to date is important, as is staying in touch with our contacts regularly."

To stand out in the crowded market, you need to use and invest in advertising tactics specific to your audience and region that will return on your investment. Your message must resonate with your target market and apply to them. 

Keeping engaged, knowledgeable employees is paramount for growth. To do this, individuals need to be happy and feel there is an opportunity for personal development. 60% of respondents in the Bellwether survey said they are 'very satisfied' or 'quite satisfied' with the opportunities to develop new skills at their current law firm.

While some firms have invested in a business development or marketing function to drive organic growth, most still rely on their fee-earners to generate new business.

Bloom, for example, has recently introduced a scheme whereby any fee earner who brings in new work retains 25% of the fees for the work they introduce. This provides not only motivation to win new business but encourages employee retention. 

"We hope this will help them build their own practices from an early part of their career," says Bloom.

Client retention was of massive importance to the respondents in the Bellwether 2023 survey. Going back to the earlier question about growth, of the respondents who said their law firm would likely grow, 83% said they would do so by gaining more work from existing clients. 

At the same time, 79% of respondents said retaining clients will be a challenge in the next 12 months.

Rosalind Connor, Managing Partner at Arc Pensions Law, says, “One of the wisest things I was told as a young lawyer was not to get so focused on getting new clients that you forget about the actual clients who are loyally with you right now."