One in three small business owners plan to switch to alternative providers of certain legal services following deregulation of the market next year.
Expected to become law in 2007, the new reform of legal services bill will allow non-legal firms to provide volume legal services, such as conveyancing, divorce and will-writing.
A recent survey suggests that 29% of small businesses plan to use alternative service providers, which will include accountants, banks, building societies and insurers. Some 39% are undecided and the remaining 32% will continue to use legal firms.
The survey also shows that most small business owners favour accountants as an alternative provider of legal services, but they would expect to receive the same level of service as they would from a legal firm.
“Alternative providers shouldn’t be complacent,” warned Max Pell, managing director of Capita Legal Services. “Small businesses have high standards when it comes to alternative providers. More than three quarters require alternative providers to have known expertise in the legal area in question.”
For those service providers that get it right, however, Pell pointed out that there are significant possibilities for growth.
“Although fewer small business owners than consumers indicated a willingness to use alternative providers, this still represents a considerable market opportunity in a sector worth some £2-£3 billion a year.”
© Crimson Business Ltd. 2006
