30% of Legal Practices face failure over cashflow pressure as increased competition and downturn bite.
Take a look at the following two articles in a legal trade magazine. One from last year and another from the last few days.
I have commented in the past that the concept of the lawyer as a business adviser is a strange one given that they run their own businesses in a monopoly where the law society and legislation have protected them from the worst of the competition.
Now that the Legal Services Act has started to bite hard, it’s clear that in the real world of business, where competition is now emerging from every angle, the lawyers’ lot is not a happy one, and that those business skills that they were so keen to share with clients (for the appropriate fee of course) may not really be as useful as they thought.
Noone would wish anyone ill will or failure as a result, but even those who have been around a long time in Legal Services appear to be learning some useful and valuable lessons about business. Let’s hope that they learn them quickly…
Financial problems for Lawyers