Sole survivors

Larger firms may seem to be taking over the legal world - but some sole practitioners are taking on more work to compete with the big boys and still offering the personal interaction with clients that larger establishments cannot provide.

Nicola Laver reports

With globalisation at full throttle, consolidation of firms in the larger corporate marketplace, and bulk selling methods being introduced in personal injury, conveyancing and probate practices, never has the lot of the sole practitioner seemed more perilous.David O'Hagan, sole practitioner at Bristol firm Barry & Blott, warns: 'We [small firms] are in danger of being wiped out.' He says the aim of such firms is surviving the particular mindset which currently prevails which he says is 'big is beautiful'.'To some extent, it is the same analogy as the corner shop.

Some can compete given the right support.' He adds: 'With IT and technical expertise there is no reason why we shouldn't compete with the large firms.'Small practices still provide a service - you tend to have your work carried out by a qualified person rather than, for example, a conveyancing factory.'He says in large practices the 'ordinary' high street client often will not know or see the fee-earners at all.

However, he adds: 'The difficulty is that people's perception is "the cost of everything and the value of nothing".'There are many problems facing small firms today that pose a particular threat.

Mr O'Hagan says sole practitioners of his ilk face the problem of discrimination by lenders because of fears over fraud.

This issue has been highlighted recently in the Gazette, but Mr O'Hagan says it is still one of the main problems he currently faces.Secondly, he says: 'Legal aid is now a lost battle because you can only do it if you're a niche firm, such as specialising in immigration, have a franchise, or if you're a smaller practice in some obscure place.'There is a need for small high-street practitioners to be pro-active in their approach to maintaining a viable presence, and it is not just specific legal areas of practice that solicitors need to address if they are to remain profitable.Another issue for the small firm is efficient and cost-effective banking.Mr O'Hagan says: 'The question, "What is the bank doing for you?" is in direct correlation with the question, "What are you doing for them?".

If, for example, a small firm is maintaining a relatively good cashflow and avoiding large overdrafts, will its bank reduce charges and increase its interest rate on the account?'With economics working against small firms, fee-earners are having to do administrative work that fee- earners in larger firms would not.

Fellow West Country sole practitioner Richard Harris maintains that it is vital to keep in control of book-keeping to be confident that the client account reflects the position at all times.He says the average sole practitioner cannot afford a full-time book-keeper and the best solution is to do your own books contemporaneously with each transaction, dealing with longer tasks such as reconciliation after hours.Mr Harris adds: 'Some small firms rely on part-time book-keepers which I think is dangerous.

Book-keeping might sound like a chore, but I find it quite therapeutic.'Although Mr Harris maintains the biggest threat to high street practice comes from factory conveyancing schemes, he says small firms have one key advantage: 'All my work comes from existing clients or recommendations based on personal service, which is not often available from larger firms.

If you deliver a personal service you do not need to spend money on advertising or marketing.'Is an adequate, workable personal service achieved by marrying property selling and conveyancing within a firm, while increasing profits at the same time? Paul Hajek, a sole practitioner of Clutton Cox in Chipping Sodbury is only now, in the past 12 months, reaping the rewards of starting such a business three years ago.Mr Hajek says: 'The benefits are that we get clients coming to us first.

We have the ability to keep existing clients by knowing they are planning to move, and it opens up the way for potential clients because they see the solicitor at a much earlier stage.'One problem his estate agency practice faced in its infancy was finding suitable staff to work in conjunction with the existing legal staff and consequently establishing a relationship between them.He envisages that e-conveyancing will pose a threat to high-street conveyancing.Mr Hajek says: 'With endless advertising information more readily available to the public on the net, large firms will take any opportunity to market themselves as the first and only necessary port of call.'Alex Bevan, senior principal of Bevans in Bristol, says the days are gone when small practices were fed standard work which meant they did not have to grow.

Now, he says, they must take into account changes in the market place and it is here that networking becomes important.For those tempted to try networking, his advice is: 'Take a long view; try to work together with each other, working towards giving joint benefit to both parties.

Make it worthwhile.'He adds that it is important to keep up high standards in client care to protect and maintain a good reputation.

His tip is: 'Select key areas - don't try to do everything.' However, he balances this by warning that there are dangers in over-specialising: 'Your area of practice could be swiped by things beyond your control, for example, the withdrawal of legal aid for a practice area.'Mr Bevan also suggests that IT is the key to survival.

He says firms which still have no e-mail should get it, but warns of specific dangers for the small practice.

Although it is a great space and time saver, he warns of the dangers of viruses: 'If you haven't got a massive IT department you are more vulnerable.

We had a virus a couple of weeks ago and everyone had to turn off their machines.

We had to have updated software installed to deal with the virus.

Otherwise, if the virus had infected us, it would have led to a shut down for three to four days, which would have caused us huge disruption.' He emphasises: 'Get the best anti-virus software you can.'As well as e-mail, he says: 'Get a Web site.

We have got thousands of pounds worth of business from ours.

If you are a one-man band, outsource the maintenance of your site to someone else - but keep an interest in it.'Mr Bevan warns firms of the dangers in how small firms treat their existing clients today.

'If this source gets forgotten and neglected, there will be plenty of other people who will take advantage of them.

Find out what the client wants, not what you think they want.

Clients want constant improvements.' Mr Bevan also stresses that continual internal review of staff morale is also imperative.Small firms are under pressure and face numerous challenges in the near future, how well they respond to the technological and global revolution going on around them will determine whether they survive - or expire.l A forum - 'Practice made Perfect - maintaining a profitable small practice' - will take place at the Law Society's annual conference at the ICC in Birmingham on Saturday, 28 October, from 2.15pm to 3.15pm.For more details, tel: 0121 355 0900 or visit: www.clt.co.uk.Nicola Laver is a freelance journalist