Every year, more than 420 million legal matters can be generated by the country’s small businesses – yet most legal marketing tends to neglect this demographic in favor of corporate behemoths or individual consumers.
There’s considerable opportunity for the lawyers and law firms that purposefully pursue startups, entrepreneurs, family businesses and other closely held enterprises. Firesign surveyed 100 small business owners and leaders to learn how they engage lawyers. In the first part of our series, we looked at how they interacted with lawyers and law firms before a specific need arose; in the second installment, we discussed their behavior when confronted with a specific legal challenge.
To conclude the series, let’s look at retention: How do small businesses work with their law firms after that first matter?
Sporadic Needs
First, it’s key to acknowledge the nature of their legal matters. In a survey of more than 10,000 small businesses by Kingston University, there was an average of 13 legal matters each year, but the distribution was far from uniform. Most respondents (84 percent) reported fewer than 10 problems; the average is raised by a minority, 1.5 percent, which experienced 100 or more.
If we look instead at probability in a given year:
- 19 percent will experience contract/commercial issue(s);
- 6.5 percent: employment;
- 6 percent: tax;
- 5.4 percent: regulatory;
- 2.9 percent: IP.
Unless your small business client is among the 1 percent with a whole lot of problems, remember that their primary objective is to run the business. They don’t have the time or interest to engage in legal trendspotting.
Takeaway
Be there when they need you. Your small business clients are unlikely to subscribe to your weekly update on trademarks or attend webinars about changes in environmental policy; most don’t face legal issues enough to make it worth their time.
This was illustrated in the Firesign survey: When asked what actions they took after a matter was underway, 23 percent followed their lawyer on social media….but that’s fewer than the 36 percent who did nothing outside of communication directly tied to the project. Lawyers can stay top of mind by sending highly relevant legal news and engaging with sincerity on social media.
Reluctant Legal Clients
Second, lawyers should understand how small business owners and leaders feel about the act of hiring an attorney. The Kingston University study showed that most will try to solve the problem on their own; 49.9 percent said they would use a legal services provider “as a last resort.”
This is a demographic that, by nature, is scrappy and self-reliant; it makes sense that they would work to solve their own problems first.
Takeaway
Recognize their desire for self-reliance and control. Small business owners are used to wearing all of the hats for their companies – including, sometimes, would-be lawyer. Help them feel in control with direct communication, transparency, and pricing models like flat fees, which eliminate the uncertainty of the billable hour.
Taking It Personally
Third, it’s essential to remember that for these clients, business is often deeply personal; they may have their personal fortunes or family legacies tied to the company. They seek human beings they can trust to take their matters as seriously as they do.
Indeed, in the Firesign survey, the adage that “clients hire lawyers, not law firms” definitely rang true, as survey respondents were twice as likely to connect with a lawyer on social media than a law firm. (An argument for lawyers having well-developed social media profiles and posting with consistency.)
Savvy lawyers will connect this to another piece of data reported previously – small business operators’ heavy reliance on recommendations from friends and colleagues. Taking the time to build personal relationships with small business clients (and deliver outstanding results for them) can result in referrals to their networks later – and thus, exponential dividends.
Takeaway
Keep it human. The most effective (and referred) small business advisers will focus on the humans running the companies – and not be afraid to show their own humanity, too.
Personal touches go a long way. Instead of blast-emailing a legal news update from the firm, forward it from your personal account with a brief intro: “Jane, this new regulation will affect your company starting next year. I wanted you to know what’s coming.” Speak as a person: “i,” “you,” “we.”
Does your 2024 business plan include work from the small business sector? Learn how to successfully market in Firesign’s report, From Referrals to Recon: How Small Businesses Hire Lawyers.