I recently met with a new solo practitioner who asked me, “How do you feel about this trend toward niche practices?” My response was an emphatic, “I think it’s great.”
Of course, I practice only in the area of small business and named my firm “Small Business Legal Services PLLC.” My companion commented, “I don’t know. I really enjoy the constant learning that goes with being a generalist.” As we talked further, I began thinking about how I came into my practice niche and how it has served me well.
Many lawyers select niche practices because they have a passion for the work or experience in the field or with the customers. Others fall into a niche practice because it happens to be in an area where they excel, while others seek out opportunities where clients are underserved. I chose to practice in the area of corporate transactional work for small businesses because that is where I found my passion to serve and knew I could do it well.
I was fortunate that my experience, law school training and passions coalesced in this field. For me, the decision was perfectly clear. Regardless of how a practice niche is developed or what niche is selected, the fact of the niche itself is an invaluable practice marketing tool.
Point of Differentiation
More than anything, I believe my niche practice provides me with a clear point of differentiation. People seeking legal counsel frequently select a lawyer based on limited information. We in the profession invariably believe that a referral is the best mechanism, but often referrals aren’t available.
In that case, prospective customers go to the Internet (or phone book) and begin searching through the listings. They will be looking for someone who has experience with the problem they face, for that key word, seeking someone who “specializes” in a certain field of practice. Where you can show that your experience resides primarily in, or exclusively in, a particular practice area, the prospective client will likely be more attracted to you.
Clearly, there are many, many other characteristics that differentiate lawyers from one another: price, availability, experience in and, in some cases, outside of the law, and personality fit. Each is an important characteristic that drives a client’s decision to hire and continue working with a lawyer, but they are not nearly as evident initially and, except in the case of a referral, usually do not drive the prospective client to contact the lawyer in the first place.
Targeting
Niche practices require a narrower view of who the practice’s prospective clients are. Niche practitioners do not serve everyone in every instance. Many lawyers express concern that by practicing in a niche area, they walk away from significant amounts of work that they could otherwise obtain as a generalist.
This concern may be well-founded, but does not address the core issue. Whether as a generalist or a niche practitioner, no lawyer can meet the needs of every customer in that market segment. This fact is generally driven by the size of the market, but also by conflicts of interest. The question to ask is, “What percentage of the niche market must I capture to meet my financial goals?” Typically, when looking at the overall market, a niche practitioner must only capture a very small amount of the business in that segment to meet his or her goals.
Another myth in targeting concerns the current or prospective clients who do not fit the niche. In niche marketing, you select the group of potential customers you want to serve. Inevitably, you will find that you are contacted regularly by customers outside that group. Regardless of whether you choose to work with these clients, they have found you and are at your doorstep, interested in working with you. I consider these clients “bonus clients” because, despite the fact that I’m not marketing to their needs directly, they have found me.
Remember also that your target may shift or even narrow further over time based on your experience and what your “ideal client” looks like. Regularly evaluate who you serve best and why.
Marketing Message
Niche practitioners can more easily create a meaningful marketing message for prospective clients. With a niche practice, you are more able to accurately pinpoint who your ideal client is and target a message that resonates with their specific needs. You are also better able to communicate with them directly as you know who they are, where they socialize, what they read and what other professionals serve them.
Ideal Client
The question, “What does your ideal client look like?” comes up in marketing strategy quite frequently. It remains a very difficult question to answer; but as a niche practitioner I find that I have a clear baseline: small businesses.
The answer further describes what I define as “small” and the “ideal” part of the question expands this answer to include characteristics of the small businesses that I feel are important and make that client a good fit with my services. Many of my clients fail to meet the “ideal” standard, but as my practice grows I am better able to identify the ideal ones and further target my marketing to them. These activities further increase the number of ideal clients contacting me.
As my practice has grown, I have been tempted by clients and third parties who serve my clients to expand my practice into complementary service areas. A few times, I have ventured outside of my core practice area. Unlike my new solo practitioner colleague, I find that the challenges I enjoy are those that expand the breadth of my knowledge within my niche.
Challenges that take me outside that niche not only distract me from learning things that more directly impact my day-to-day client needs, but also increase my personal stress level and put financial strain on my practice. I do know that each time I have ventured out, I have learned valuable lessons that apply to all my clients.
I believe the “niche” part of my practice is one of the more compelling elements of my firm to clients. Clients see consistency between my background and experience and the mission of the firm. My target segment is clear and unwavering, as every one of my clients has similar characteristics. Marketing the firm is straightforward because I know who my clients are and how to reach them.
Niche practices are not for everyone; but every practice, regardless of how broad, can be broken down into niche elements and the marketing concepts here applied. In doing so, you can better evaluate whether any one element is truly where your niche lies.
Michelle Hayden Bomberger is the founder of Small Business Legal Services PLLC. She has a J.D. and MBA from Northwestern University and provides business and legal counsel for small businesses. She may be reached at 425-646-2360 or michelle@sblslaw.com.
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