Finding your law firm's niche

Niche offerings are becoming an increasingly popular way of targeting specific audiences. There can be no doubt that tailored, innovative approaches to doing business will secure the futures of many law firms, but these should come as a result of analysis, evaluation and long-term strategic plans. In short, don't niche for the sake of it.

I remember when the subject of niche services first came up in one of our partner meetings. It was after we had taken stock of all that we offered as a firm, evaluated the best performing areas and then embarked on a discussion about what more we could offer businesses, organisations and individuals across our region of Hampshire and neighbouring counties in the south.

As is often this case in this type of meeting, every idea imaginable was thrown into the conversation. Some were exciting and ambitious, some were unique and groundbreaking, some were recognised as being provided by competitors and some were thought to fill a perceived gap in the market. Names were mentioned of contacts who could be asked to join the firm to provide such services and a list of possibilities was drawn up.

From my listening to those from other firms during my career, the above scenario can be the formula for niching. A service is thought of, an individual is identified to provide the service and WHAM - it's in the mix. This kind of hit-and-miss approach may have been understandable in the past, but in these turbulent times, I believe a lot more thought needs to go into the process, as well as market research.

To me, market research is basically finding out the answers to all the questions you might have about a proposed subject. When someone says 'no other firm does this', my first thought is 'well, is there a reason for that?' If an individual states 'businesses are crying out for this', my reaction is 'give me some names'. I suppose it is really qualifying a gut reaction or, to use analogy from our profession, finding the evidence to support a claim.

New offerings

At the end of last year, we started to employ niche specialists. We launched a restructuring and insolvency department after surveying existing and potential clients who said they would be interested in such a service and have since been true to their word. The same principle has supported our environmental and business regulation service.

We have developed a commercial immigration service after analysing both our existing client base and the number of businesses in our area that would have need of it, and applied the same strategy to our client sectors as well. For example, in Southampton we are in close proximity to wide range of farms and rural enterprises, so we are gaining a reputation for work in the agricultural sector.

Sometimes niching services isn't about bringing in the new, but rather compartmentalising and repackaging what you already do. Sharing a city with one of the south coast's busiest commercial ports, we have allocated our work in this area to a designated marine service that gives clients both clarity and reassurance that we understand their sector.

So whether you are reconfiguring and restructuring to clarify what you already do, or looking to launch brand new services, always make sure there is a clear, strategic reason which supports the changes you make.

 

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Action plan: Knowing when to niche

·        Take stock. Ask yourself: ‘If it ain’t broke, does it need fixing?’

·        Ideas. Throw as many as possible in for consideration. That’s how to break new ground.

·        Create a wishlist. And if you can agree it, put it in priority order.

·        Take a look around. Do you know your area? What businesses are out there? What kinds of local community are there?

·        Never ignore your own network. Don’t be afraid to consult with your existing client base. They give you their work, so they must like you. Most people are flattered to be asked for their opinion.

·        Collect evidence. Create your case to prove the need for the service you have in mind.

·        Find the right person. It can be from outside or within, but the person does need to have an entrepreneurial spirit and desire to succeed.

·        Go to market. Identify the correct marketing methods for your audience and go for it!

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