These 2021 growing legal practice areas offer an opportunity for small law firms

The past year has turned much of business and society on its head, but with change also comes opportunity. For independent lawyers and small law firms, these growing legal practice areas show promise.

Increased Demand Following the Pandemic

Corporate clients have experienced an increase need for certain legal services amid pandemic-related changes to their operations. According to recent surveys, these include:

  • Cybersecurity. For obvious reasons, technology has become a primary focus for companies of all sizes throughout the pandemic. As they grapple with some employees remaining on remote work detail, they will need to stay on top of privacy and cybersecurity concerns. BTI Consulting Group reports that this practice area should experience 15% growth this year.
  • Mergers & Acquisitions. Citing pent-up demand, BTI also points to M&A as a hot legal niche this year. Often associated with Big Law, independents and small law practices have an opportunity to target smaller M&A contracts or collaborate with other firms on some bigger deals.
  • Labor and Employment. Employers have faced some of the toughest employment law challenges in their histories this year. As reported by Bloomberg Law:

“Labor and employment partners were on speed dial during 2020 as workforces around the country were upended by the pandemic. Only bankruptcy and corporate work outdid labor and employment in demand growth during through three quarters of 2020, according to Thomson Reuters Peer Monitor Index.”

As employees consider their remote work options, that could prompt a wave of relocations in 2021 and 2022 that could further add to employment law needs.

Regional Opportunities

Some law practice areas are particularly suited to Denver and Las Vegas law firms, such as:

  • Cannabis Industry. In both Colorado and Nevada, the cannabis industry has presented an opportunity for small law firms to develop a niche representing either businesses or consumers.
  • Gaming Industry. An obvious potential niche for Las Vegas lawyers, gaming law also represents an opportunity for Colorado attorneys. Beyond casinos, sportsbooks betting is legal in Colorado as of 2020.
  • Environment, Agriculture and Land Use. From water rights to environmental impact and land use cases, both Colorado and Nevada lawyers can make a name for themselves in these niche practice areas.

How to Choose a Niche

Your niche should reflect not only your personal capabilities and interests, but a true opportunity in your region. As this Attorney At Work writer points out:

“Major industries, like health care, construction, or transportation, have been discovered and covered by law firms. But industry subcategories (like medical practices, marine construction, or short-line railroads) or niches within an industry (such as labor and employment work for hotels) often present untapped opportunities for the niche law firm.”

Drill down into a larger industry or practice area to find a niche with growth potential and unmet demand.

Importantly, your niche should also energize you. You should feel excited to dive into your work and support your target clients. Steer away from practice areas that make you yawn or cringe just thinking about them. Especially as an independent lawyer or small firm, a true passion for a specific area will translate through all your client interactions. That passion is contagious, and it gives your clients confidence that you care enough to serve them well.

Start with the services you offer now and consider which other areas might complement them. If you would like to branch into an entirely new practice area, start by researching some of the top needs in your state: begin here for Colorado and here for Nevada.

Create Success in 2021

The most successful law firms in 2021 will be the ones whose leaders pivot and meet changing client needs. From new practice areas to new ways of delivering services, consider how you can make a shift to help ensure your success this year and beyond.

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