David v. Goliath: Law firm competition

The Missouri Bar Association states that Greene County alone has 877 lawyers to handle a population of roughly 250,000 people.

That’s one lawyer for every 285 people.

In St. Louis County, there’s one attorney for every 112 people. And in the Kansas City area, the ratio is one attorney per 146 people.

While market saturation isn’t as heavy in Springfield, there’s still stiff competition among firms of all sizes.

The Springfield law sector is large enough to sustain the number of attorneys doing business, according to Rebecca Tatlow, who opened her own solo practice in November 2005 after practicing workers’ compensation law for Evans & Dixon LLC.

Tatlow said the biggest challenge facing small firms in any market is a less steady workload than their larger counterparts.

“The larger firms typically handle one area of the law, so they don’t have to worry a whole lot about getting business because they have a lot of captive clients,” she said.

“With smaller or solo firms, you have to beat the bushes for business.”

A niche or diversification?

The need for business underscores the need for small law firms to establish a niche in the market, especially as the field grows increasingly segmented.

“There are very few, if any, lawyers in Springfield who would take any kind of case,” said Crista Hogan, executive director of the Springfield Metropolitan Bar Association. “It’s especially important for a solo practitioner to focus to some degree, because the demands of the practice have gotten to the point where the more you can focus (on specific types of law) the more efficient you can be, and the better life you’re going to have as an attorney.”

Focusing a practice, however, must be balanced with variety, according to Tatlow. She said the ability to choose specific areas of law has given her not only the variety she desires, but also more flexibility with her time.

“I can work as much or little as I want,” Tatlow said. “My income is more under my control. I can decide – do I want to work this weekend, or do I want to take off this weekend? In the small and solo firms, you eat what you kill.”

That personal freedom appeals to a lot of people, Hogan said. In her job with SMBA, she says she sees many attorneys who want to start their own offices for just that reason.

“To be a solo practitioner can be the hardest, but also the most gratifying, practice type in our profession,” she said. “We’re lawyers, but that’s a small aspect of who we are. We have children that we’d like to see grow up.”

There’s also a feeling of camaraderie among small-firm lawyers; Tatlow said nearly all of her business in her first year solo has come from referrals by other lawyers who may not have the time or expertise to handle particular cases.

Stability from size

The advantage for large-firm attorneys boils down to security in clients and paychecks.

That size is also an advantage for the client, according to Frank Evans III, managing partner for Lathrop & Gage LC’s Springfield office. A larger firm means more attorneys – and more areas of law that can be handled by them.

“(Clients) like doing business where they know they can get a range of problems addressed, as opposed to having to deal with a number of different firms,” Evans said.

“There’s also better coordination for businesses – an employment law question may have an impact on some tax aspect of the business as well.”

SMBA’s Hogan sees another advantage for large firms, particularly, in not doubling as a small-business owner.

“They don’t teach us how to run a business in law school,” Hogan said. “When you have the infrastructure of one of these large firms, you don’t have to know about technology, systematizing, employees and those types of things. As a solo practitioner, you have to wear all of those different hats.”

In the end, Hogan said it’s the variety of choices available to attorneys – large firms, small practices or in-house counsel for businesses; specialties in personal injury, workers’ compensation, tax law or criminal defense – that makes the field attractive.

“The objective is to enjoy that which you’re spending so much time doing,” she said. “This profession allows you to change your job into what you enjoy doing. What a great profession we have that we can do that.”