Is your location near your competition?

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Deciding where to place a law firm is an important decision. From the size of the space to the cost of the rent, a law firm must make many important decisions.

Law firms also have to consider the aesthetics of the office. Depending on the types of clients a law firm is trying to make, a law firm has to consider the appearance of the space.

For example, higher-end office space may be necessary if the law firm is trying to attract high-net-worth clients. However, it may be unnecessary if a law firm is trying to obtain business from clients who may not be high-net-worth individuals in a volume-based area of the law, like traffic, bankruptcy, etc.

Is Your Office Near Your Competition?

One consideration many law firms fail to consider is where their competition is located. For example, many law firms may seek office space in the same building as their competition. If not in the same building, many lawyers might be just a block or a few short blocks from other law firms in the same area of law.

Law firms can engage in this strategy because lawyers often congregate in the same part of town. Usually, it might be next to a courthouse or in the business district. Lawyers can often socialize with other lawyers off the clock at bar associations or social events. Being near other lawyers can benefit many law firms in these ways.

But it might be wise for many lawyers to consider a different strategy. When looking at office space, it might be wise to pick a building where no other law firm practicing in the same area of law is in that building. To take that concept further, it might make sense not to be within blocks of other law firms in the same area of law. Thus, instead of staying in the crowd, many law firms might consider spreading out and creating some geographic space between where they are and their competition.

Why Would A Law Firm Want To Be Away From Their Competition?

There are numerous reasons for situating your law firm away from the competition. However, one obvious reason is that a potential client can shop between several attorneys within the same office building or a few short blocks, making it harder to get new business.

In other words, a potential client could engage in multiple initial consultations on the same day if they see numerous lawyers within the same building. When lawyers are in the same building in the same area of the law, it becomes a lot like a shopping mall of lawyers. The potential clients can literally window-shop at various law firms–much like a person who window-shops at multiple clothing stores in the mall. As many mall store owners can attest, many walk in and out of their stores without buying anything.

On the other hand, if a law firm is spread out from their competition and outside of the crowd, the window-shopping concern becomes less significant. Potential clients coming to the law firm must be very interested in that particular law firm. Otherwise, they would not have made the trip to the law office.

A law firm also does not have to be as price-conscious when they are not in the same building as their competiton. For example, a law firm in the same building as its competition probably has to ensure its rates are comparable to others in that building. Otherwise, it can make it hard to compete with them.

Further, it is also harder to lose staff and personnel to their competition when the law firm is not in the same building as their competition. When a law firm is in the same building, it is almost effortless for a competitor to use recruiting techniques to siphon away your key employees.

Yes, a law firm cannot be so far off the grid that potential clients do not want to go to their location. But at the same time, being in the same building as many competitors may be something a law firm should avoid when selecting office space.

[View source.]

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations. Attorney Advertising.

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