june 21 | 2005small law firm market survey s m a l l l a w f i r m m a r k e t s u r v e y i n a s s...

June 21 | 2005 Small Law Firm Market Survey

S M A L L L A W F I R M M A R K E T S U R V E Y

i n a s s o c i a t i o n w i t h

Small Firms = Big Market


M O R E T H A N 1 M I L L I O N lawyers in the U.S.

N E A R LY 8 0 %

O V E R 9 0 %

work in small firms of 2-39 attorneys

of U.S. law firms consist of less than 40 attorneys

Market Overview


To examine:

• Practices

• Areas of interest

• Purchasing habits

• Expenditures

Survey Objectives

…of attorneys in firms of 2-39 attorneys


• Conducted in February 2005 by International Communications Research

• Survey Universe consisted of 4 groups:

2-9 Attorneys

10-19 Attorneys

20-29 Attorneys

30-39 Attorneys

• Weighted to reflect universe of small law firms (33,700)

Survey Methodology

• 200 total completed telephone interviews


R E S P O N D E N T S ’ P O S I T I O N I N T H E F I R M

Managing Partner/Partner (73%)

President/CEO (15%)

Other (5%)

Associate/ Attorney/Member (7%)

Professional Profile


T O P P R A C T I C E A R E A S

Real Estate 59.9%

General Practice 55.9%

Trusts & Estates 53.1%

Personal Injury 50.7%

Family 38.1%

Labor & Employment 36.8%

Insurance 33.9%

Corporate Governance 28.8%

Corporate & Securities 28.2%

Criminal 22.4%

Tax 22.1%

Banking 21.1%

Bankruptcy 20.7%

Professional Profile


93.1% of small firm attorneys are key or partial purchasing decision-makers.

Computer Hardware 84.8%Legal Software 83.8%Marketing & Promotion 82.2%Employee Insurance/Retirement Plans 81.9%Business Insurance 79.6%Telecommunications Equipment & Services 72.6%Accounting, Finance & Other Business Software 72.4%Consulting Services 68.6%Temporary Help/Employment Recruitment Services 66.4%Video Conferencing Equipment 52.2%

Purchasing Profile

Areas of responsibility include:


Small firms spent more than $5.7 billion in the last 12 months on products and services for their businesses.

2-9 Attorneys: $4.3 Billion

10-19 Attorneys: $940.3 Million



Purchasing Profile


A R E A S O F E X P E N D I T U R E

• Insurance: $2.9 Billion• Computer Software: $786.9 Million

• Computer Hardware: $711.1 Million

• Telecommunications Equipment & Services: $530.4 Million

• Consulting: $392.6 Million

• Personnel & Temporary Help: $377.8 Million

• Office Equipment: $190.4 Million

In the next 12 months most firms and readers of Small Firm Business will spend about the same or more on these products and services.

Purchasing Profile

( P A S T 1 2 M O N T H S )


O U T S O U R C I N G

Readers ofSMALL FIRM BUSINESSSmall Firms

IT Support 60.2% 67.7% Web Hosting 48.5% 68.1%Benefits 46.5% 67.7%Document Production 22.8% 39.1%Travel Arrangements 19.0% 25.9%Litigation Support 15.9% 30.9%Accounting 10.9% 18.6%

Purchasing Profile


• 22.5% plan to relocate within the next two years

• 22.2% plan to purchase their office space

• 18.6% plan to expand within current location

• 15.0% plan to open a satellite office

Growth Plans

FACT: Real Estate is the second largest expense for all law firms.

Of the small firms surveyed:


K E Y A R E A S O F C O N C E R N

1. Technology

2. Marketing & Promotion

3. Retirement & Succession

4. Human Resources

A ranking of administrative functions from most to least challenging:

5. Physical & Network Security

6. Insurance

7. Collection & Billing

Management Challenges


Technology • lack of knowledge/education • upkeep/changes

Marketing & Promotion • competition • cost

• coordination/compliance/agreement issues

Retirement & Succession • personnel • time concern/restraint issues


Survey reveals needs for information to help deal with:


Human Resources • personnel

• cost

Physical & Network Security • lack of knowledge/education

• networking/security/data

Insurance • complexity of the issues

• cost

Collection & Billing • collection/payment issues


Survey reveals needs for information to help deal with:


The nation’s ONLY magazine exclusively written

for and distributed to law firms of 2-39 lawyers.


M I S S I O N S T A T E M E N T

To guide small firm legal professionals through the management and business issues that affect their practices. Since small firms do not have specialized managers who focus on the operation of the business, Small Firm Business serves as a useful resource covering:

•Technology• Marketing• Accounting/Billing• Insurance• Human Resources• And more


This readership includes:

• Managing Partners • C-Level Executives

• Partners • Associates

• Office Managers • IT Managers

• Attorneys

Market Coverage

Small Firm Business reaches more than 70,000 business decision makers at law firms of 2-39 attorneys.


97.4% of Small Firm Business readers are key or partial purchasing decision-makers.

Marketing & Promotion 94.2% Consulting Services 92.9% Computer Hardware 92.1%Employee Insurance/Retirement Plans 91.1%Legal Software 89.4%Business Insurance 88.3%Telecommunications Equipment & Services 80.0%Accounting, Finance & Other Business Software 79.1%Temporary Help/Employment Recruitment Services 74.9%Video Conferencing Equipment 42.6%

Purchasing Profile

Areas of responsibility include:


Small Firms = Big Market

• Tremendous purchasing power

• Purchasing decision makers

• Need for education/ information

• A growing and increasingly important segment

Conclusion

june 21 | 2005small law firm market survey s m a l l l a w f i r m m a r k e t s u r v e y i n a s s...

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