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Red Cave Consulting Law Practice Management Tip


Ain’t No Valley Low Enough: You Almost Can’t Niche Down Enough
 
Niche businesses, including niche law practices, are so effective, in large part because those business types reduce competition. That logic is probably obvious: any time you sell to a smaller interest group, you sell to fewer people – but, it’s really powerful in application.
 
To new business owners, or general practitioners, that can sound dangerous = it places too significant a limitation on accessing potential clients. You see, there’s this notion that most entrepreneurs latch onto, at first, which says that a wider pool means access to more potential clients. But, a bigger group of potential clients can also mean more expenses, more competitors and less focused messaging. In the end, you can’t reach and convert all the clients; so, why not reduce your focus, and sharpen your branding, thereby giving yourself a better chance at converting from a targeted group? And, as you develop a reputation in a given space, it will become easier over time to generate business; that’s especially true if you own the first law firm to start up in a particular practice niche, and gain a ‘first mover’ advantage.
 
And, if a general niche (like family law) works to reduce competition, a more specific niche (like estate planning), even further reduces competition. Take that to its logical extreme, and the deeper your niche, the less competition you have. Estate planning not a deep enough niche for you? Try drafting only special needs trusts for children. Opt for student loan law, within education law. Choose a loan workouts specialty within a real estate practice.
 
It’s been said that niches lead to riches; and it’s true. But, the deeper you drill, the more likely you’ll be to strike oil.
 
And, while it will take longer for a niche practice to develop, it’s worth the wait.
 
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If you want to convert your law firm to a niche practice, we can help!
 
The Rhode Island Bar Association offers free law practice management consulting services through Red Cave Law Firm Consulting. To request a consult, visit the Rhode Island Bar’s law practice management page, and start running your law firm like a business.