If you’re a solo practitioner or small law firm, you might wonder if you can really compete with bigger firms that seem to have all the resources. The good news? Yes, you can. While big law firms have their advantages, smaller practices have strengths that, when used properly, can make them the preferred choice for many clients.
Plus, technological advancements in the legal industry are leveling the playing field in ways that weren’t possible just a few years ago. Today, we’ll show you how you can stand out and win clients, even when up against bigger firms.
Challenges Solo Practitioners and Small Law Firms Face
Let’s start by discussing the most common challenges that solo practitioners and small law firms face. Over the years of experience working with them, we've developed a deep understanding of the obstacles that prevent consistent growth.
We’ve identified four key pain points that small legal practices encounter:
Too Much Focus on Non-Billable Work
Many attorneys find themselves spending 40% or more of their time on administrative tasks rather than practicing law. Every hour spent on filing, scheduling, or managing the practice is an hour not spent on billable client work. This includes:
- Answering routine client emails and phone calls
- Managing calendars and scheduling appointments
- Filing documents and organizing case files
- Bookkeeping and invoice preparation
- Handling IT issues and software updates
- Researching routine legal questions that could be delegated
For a lawyer billing $250 per hour, two hours of administrative work daily equals $125,000 in potential lost revenue annually. This administrative burden represents a lost cost opportunity for small firms.
Limited Time and Resources
With smaller teams, every person must wear multiple hats. This stretches resources thin and can lead to burnout. It gets even tougher when competing against firms that have dedicated departments for marketing, IT, human resources, and other specialized functions.
- The same person might handle client intake, paralegal work, and office management
- Partners manage HR, marketing, and finance in addition to their legal practice
- Technology decisions and implementations are made by whoever has the most interest or aptitude
- Professional development and keeping up with legal changes become "after hours" activities
The Legal Trends Report shows that 74% of lawyers make themselves available for client communication on weekends, while 69% offer evening communication.
This constant multitasking leads to increased stress, potential burnout, and difficulty maintaining quality across all functions. Meanwhile, larger firms have dedicated departments handling each of these areas with trained professionals.
Not Treating the Practice as a Business
Law school teaches legal practice but does not cover business management. Many attorneys excel at practicing law but struggle with business development. They lack formal business plans that focus on growth strategies. Some may not be aware of the effort that should be put into marketing to acquire new clients. Additionally, metrics that aren't tracked make it difficult to know what needs improvement or guide business decisions.
Overwhelming Workload
The demand for legal services can quickly overwhelm solo practitioners and small law firms, making it hard to deliver the best service to clients. Report shows that attorneys are highly stressed, which has increased during the pandemic, with 46% of attorneys reporting feeling overwhelmed.
Handling the workload alone or with limited staff can lead to burnout or inefficiency. Taking on too many cases without sufficient support can lead to burnout and missed opportunities for growth.
How to Win the Competition
So, how can you compete with larger law firms? How to be smarter with your resources and adopt effective strategies that will make you shine? Here’s how:
Offer Better Rates
Price sensitivity is a reality for many clients, and larger firms that have substantial overhead costs which get passed on to clients. As a smaller firm, you can create pricing structures that deliver greater value.
- Flat-fee arrangements: Provide certainty for clients by offering set prices for routine matters like simple wills, uncontested divorces, or business formations. This rewards efficiency rather than time spent.
- Hybrid billing models: Combine hourly billing for unpredictable aspects of a case with flat fees for routine components. For example, litigation or document preparation might be flat-fee while court appearances remain hourly.
- Subscription services: For business clients with ongoing legal needs, consider monthly retainer packages that include specified services. This creates predictable income for your firm while giving clients budget certainty.
- Value-based pricing: Base your fees on the value delivered rather than time spent. For example, a business acquisition that saves a client $200,000 in taxes might warrant a premium fee regardless of hours worked.
- Unbundled services: Allow clients to pay only for the specific legal help they need rather than full representation. This makes legal services accessible to those who would otherwise try to do it themselves.
How to do it:
- Analyze your matter history to understand your efficiency on different types of cases.
- Calculate your actual costs, including overhead allocation.
- Start with a small pilot program for certain practice areas.
- Gather client feedback and adjust accordingly.
- Roll out successful models across more of your practice.
These alternatives can be attractive to clients frustrated by the traditional billable hour model which is common at larger firms.
Find a Partner
One of the most strategic moves for small firms is to find reliable partners who can complement your core competencies. These partnerships allow you to offer a more comprehensive service without increasing overhead.
When selecting partners, carefully evaluate their:
- Their track record with firms like yours
- Their reputation in the legal community
- Their understanding of your practice areas
- How easily they can integrate with your workflow
One example is Remote Attorneys, a company that provides qualified legal professionals who work remotely to support solo practitioners and small firms. They have a team that lets you expand your capabilities without the overhead of in-house attorneys, so you can compete with bigger firms while remaining independent.
By outsourcing certain legal work, you can:
- Offer clients a more comprehensive service
- Handle larger and more complex matters that would otherwise go to bigger firms
- Maintain service quality even during busy periods
- Focus your attention on the highest-value parts of each case
Do more with less
Automation and outsourcing are powerful equalizers for small firms. Automation tools can handle repetitive tasks like:
- Document assembly: Use templates and automation software to generate routine documents in minutes not hours. Powerful digital tools can reduce document preparation time by up to 80%.
- Client intake: Implement online intake forms that feed directly into your practice management system, eliminating double-entry and reducing errors.
- Legal research: Use AI-powered research tools like ROSS, Casetext or Westlaw Edge to find precedents faster
- Billing and collections: Automate invoice generation, payment reminders, and online payment options to improve cash flow and reduce administrative time.
- Communication: Use template emails, text message appointment reminders, and client portals to streamline routine communications.
Outsourcing specific functions, particularly to virtual legal professionals, can give you the capabilities of a bigger firm without the overhead. By delegating routine legal research, document review and drafting to virtual legal professionals, you can reduce non-billable time and increase efficiency.
A solo practitioner simplifying tasks with automation and outsourcing can effectively double their capacity without hiring permanent staff. For example, if document automation saves 10 hours a week and a virtual paralegal handles another 20 hours of work, that’s 30 hours more to serve more clients or improve work-life balance.
Use Your Strengths
Small firms have inherent strengths that can become competitive advantages when leveraged:
Personal Connection: Unlike big firms where clients may feel like just another file number, small firms can offer personal attention. Clients appreciate knowing their attorney personally and feeling that their matters receive focused attention. Nurture these relationships by keeping in touch and showing you understand their unique concerns.
Responsiveness: Without layers of bureaucracy, small firms can respond faster to client needs and market changes. When a client calls with an urgent matter, your ability to pivot immediately can be the difference between winning and losing their business. Make responsiveness a core of your practice.
Flexibility: Small firms can adapt billing structures, practice areas, and service models faster than bigger firms. This agility allows you to meet evolving client needs and capture emerging opportunities that bigger firms might miss or be too slow to pursue.
Take the Next Step
The legal industry is no longer dominated solely by large firms with vast resources. Don’t let the size of larger firms intimidate you. Today’s technology and service models make it possible for you to deliver legal services while maintaining the personal touch that sets you apart.
By addressing the common challenges of small firms, using strategic partnerships, and naturally leveraging your advantages, you can build a practice that can compete with larger firms and deliver more value to clients.
If you’re ready to transform your practice, know that Remote Attorneys is here to offer personalized solutions that help small firms expand their capabilities. Their platform makes it easy for law firms, regardless of size, to compete with the best of the best.
You can browse global attorneys, review their track records, and consult with them directly, eliminating location constraints. Sign up today and discover for free how our lawyers can help you compete and win against even the largest law firms.
