The danger of moving into a niche practice area

By Sarah Plaka

It is no secret that the legal profession is evolving. The message from the industry experts is an uncomfortable one – adapt your business model and move with the times or your firm won’t survive.

Much has been written about lawyers distinguishing themselves from the competition in order to claim a bigger piece of the pie. For many firms this has meant abandoning lower value work and carving out niche practice areas. This has provided some firms with the opportunity to command premium prices, to streamline efforts and simplify the business, and establish their credibility and brand in a particular area.

But in a saturated legal market, where new entrants are nipping at the heels, firms which have an over-reliance on just one or two areas of legal work may find themselves at greater risk of financial difficulty.

This was highlighted in a recent SRA report. In a review of 76 case files of firms which had experie