WHILE THE economy is hot, many small-firm practices sizzle. But as the stock market bounces and inflation rears its ugly head, small firm lawyers might want to shift their practice areas and change how they do their business to reflect tomorrow's economy.

While anything to do with financing for an e-business is bringing much work to lawyers, leveraged buyouts of many of those same e-businesses will account for many hours billed in the next five years, said Christine S. Filip, attorney and president of The Success Group, a marketing and public relations firm.

And as the elderly population increases and baby boomers near retirement, transfer of wealth has become an issue for families. Many attorneys are answering the call of their clients and becoming experts in estate planning and medicaid planning. But as plans get made and as money starts to change hands, some family members will be unhappy with their elders' decisions. This will lead elder law practitioners to do much more estate litigation over the next decade, said legal consultants.

One practice area that is in great demand now and will continue growing into the future is intellectual property, said Ms. Filip. Even if small dot.coms perish, doing business over the Internet will not go away, she said. As more established brick-and-mortar businesses are getting in on e-commerce with coffers full of marketing and development funds, they will be confronted with copyright, trademark and business method patenting questions. Small firms that can afford to charge less to answer these questions will get some of that business, predicted Ms. Filip.

Employment law is growing and will continue to do so, said Richard A. Gurfein, a plaintiffs' attorney with Wiesen, Gurfein & Jenkins. Mr. Gurfein said he has seen a rise in age discrimination cases because baby-boomers are turning 50 years old.

But what is a lawyer to do in anticipation of a shift in economy?

Be willing to change practice areas as clients' needs change, said Frederick P. Rooney, head of a City University of New York School of Law program designed to help small firm lawyers get on their feet. Mr. Rooney suggested that small firm lawyers listen to the needs of their clients and if need be, shift gears.

"We encourage people to change practices to keep up with the economy," said Mr. Rooney, who has his own small practice in Bethlehem, Pa.

"You have to be able to shift with the shifting tide and be willing to be educated," he added.

There are ways to learn about a new practice, whether an attorney is just starting out or is switching specialties after years of practice, said Mr. Rooney. One method is to attend continuing legal education classes in a topic of interest. Another is to take on pro bono cases offered through bar associations in the areas in which the lawyer wants to gain experience. According to Mr. Rooney, bar associations do a good job training pro bono attorneys because they want the people they serve to get quality legal advice. And experienced attorneys are a great resource, said Mr. Rooney. "There are lots of attorneys out there who will share their information," he said. "Lawyers just have to ask."

Referral opportunities for small firms also can grow out of mergers between larger firms, according to Ms. Filip. As more medium-size firms merge it will be unprofitable for the larger firms to take on small cases, she explained. Mergers will force them to refer their smaller cases out. Therefore, small-firm lawyers need to spend time getting to know their large-firm colleagues so they can form alliances and get referrals, said Ms. Filip.

In case of a downturn in the economy, one way to boost profits is to increase productivity, said Melchior S. Morrione, management consultant and owner of MSM Consulting. This can be done by equipping an office with top-quality technology and by teaching associates, he said.

For example, as the right hardware and software can increase an attorney's output, so can a well-trained associate. According to Mr. Morrione, many lawyers make the mistake of not teaching the younger lawyers. They do not take the associates to meet clients or take the time to explain how to properly draft documents or handle depositions; instead, they give them low-quality work.

"It is the growth of the young people that represents the [partners'] security in the future," said Mr. Morrione. A little up-front hand-holding can pay off greatly for the partner by making the associate productive more quickly; it will also make the associate happy and more willing to remain at the law firm, he said.

© Copyright 2002, The Success Group

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