HI, I’M ELECTRA.
With ten years’ experience as a lawyer in the corporate world, I decided it was time for a change. I was tired of being part of big, bulky corporations and wanted to create something that would add value. Quite simply, it became very clear to me that the legal industry needed to change and I wanted to make that happen.
It’s fair to say that lawyers don’t have the best reputation. The nature of the complaints heard are consistent: extortionate fees, confusing language and slow response times. In an agile, tech-focussed world, it seems unthinkable. But bizarrely, it’s not. Options for low-cost, high quality legal support are limited. Below I talk about the key reasons for this.
1. The Partnership Pyramid
Traditional law firms are built on a pyramid model: the higher the retainer, the steeper the profits for the partners. To support their structure, law firms can realistically only cater to clients that can afford to maintain them. Startups and SMEs have little chance of getting the legal support that they need, when they need it, since not all small businesses have a (minimum) £2,000 retainer to start working with a lawyer. So traditional law firms focus on the big guys and leave the smaller companies to either do it themselves or not at all.
2. Dark-age business models
Aggressive pursuit of high retainers means law firms have been plagued with short-sighted business planning. The traditional partnership model provides little incentive for investing in technology, innovation, or any wholesale restructuring of the model that will reduce the partners’ profit.
Because law firms have hindered their own progression and have fallen behind other businesses, they have struggled with how to reduce costs and adapt to the changing times as they have become hooked into legacy expenses like high associate salaries, long-term leases, and antiquated IT systems. This has led to an old, slow and expensive machine, one that cannot possibly cater effectively to the modern world.
Here are some more fun facts for you: that make the current legal model seem even more absurd:
In 2017, there were 5.7 million businesses in the UK.
Over 99% of businesses are Small or Medium Sized businesses – employing 1-249 people
5.5 million (96%) businesses were micro-businesses – employing 1-9 people. Micro-businesses accounted for 33% of employment and 22% of turnover.
589,000 startups set up shop in 2017
The guideline hourly rate for a lawyer with over 8 years’ experience in London is £409 an hour
THE LAW BOUTIQUE
We cater to the smaller, under-served businesses and puts some pragmatism and simplicity back into the industry. We believe that by shattering the traditional business model and employing the right people, technology and agile ways of working, we can offer legal services at a quarter of the price and we can do that in plain English.
Having worked with over 200 startups since we were founded in 2017, The Law Boutique is a startup for startups and our aim is to change the face of law for good without compromise.
We offer companies a service that is personal, bespoke and of the highest quality, at prices that are fixed and affordable. Contact me to find out more about how we can help you with your startup needs today.