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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 o c i a t i o n w i t h Small Firms = Big Market
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June 21 | 2005Small Law Firm Market Survey 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
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June 21 | 2005Small Law Firm Market Survey To examine: Practices Areas of interest Purchasing habits Expenditures Survey Objectives …of attorneys in firms of 2-39 attorneys
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June 21 | 2005Small Law Firm Market Survey 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
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June 21 | 2005Small Law Firm Market Survey 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 Professional Profile
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June 21 | 2005Small Law Firm Market Survey 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
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June 21 | 2005Small Law Firm Market Survey 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 & Services72.6% Accounting, Finance & Other Business Software 72.4% Consulting Services 68.6% Temporary Help/Employment Recruitment Services66.4% Video Conferencing Equipment 52.2% Purchasing Profile Areas of responsibility include:
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June 21 | 2005Small Law Firm Market Survey 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 20-29 Attorneys: $328.4 Million 30-39 Attorneys: $128.8 Million Purchasing Profile
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June 21 | 2005Small Law Firm Market Survey 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 )
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June 21 | 2005Small Law Firm Market Survey O U T S O U R C I N G Readers of SMALL FIRM BUSINESS Small 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
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June 21 | 2005Small Law Firm Market Survey 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:
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June 21 | 2005Small Law Firm Market Survey 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
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June 21 | 2005Small Law Firm Market Survey Technology lack of knowledge/education upkeep/changes Marketing & Promotion competition cost coordination/compliance/agreement issues Retirement & Succession personnel time concern/restraint issues Management Challenges Survey reveals needs for information to help deal with:
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June 21 | 2005Small Law Firm Market Survey 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 Management Challenges Survey reveals needs for information to help deal with:
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June 21 | 2005Small Law Firm Market Survey The nation’s ONLY magazine exclusively written for and distributed to law firms of 2-39 lawyers.
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June 21 | 2005Small Law Firm Market Survey 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
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June 21 | 2005Small Law Firm Market Survey 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.
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June 21 | 2005Small Law Firm Market Survey 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 & Services80.0% Accounting, Finance & Other Business Software 79.1% Temporary Help/Employment Recruitment Services74.9% Video Conferencing Equipment 42.6% Purchasing Profile Areas of responsibility include:
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June 21 | 2005Small Law Firm Market Survey Small Firms = Big Market Tremendous purchasing power Purchasing decision makers Need for education/ information A growing and increasingly important segment Conclusion
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June 21 | 2005Small Law Firm Market Survey
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