Solos/Small Firms

Surburban Lawyers Explain Why Their Firms Are Prospering

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Some smaller and suburban law firms in the Minneapolis area are doing better than their big firm counterparts—and location, practice areas, flexibility and lower rates are some of the reasons why.

Several lawyers talked about their survival tactics in interviews with Finance and Commerce. In some cases, these firms are not only getting business that used to go to the big firms, they are also hiring some of their lawyers with books of business, according to Amber Hennen, branch director of Robert Half Legal. Law firms with in-demand practice areas are doing particularly well, she said.

Lawyer James Kretsch of Kretsch & Gust in Edina said it’s easier for smaller firms to control their overhead. Big firms, on the other hand, can’t react quickly when the economy changes.

He also stressed his lawyers’ activities within social and civic organizations. The contacts they make, he said, can turn into clients. “People want to do business with people they know,” he told Finance and Commerce. “It’s more than just shaking hands. It enables people to see you in a different environment—without your tie on—and see how you behave. … Hopefully, they get a better feeling for you as a lawyer as a result.”

Kretsch also said his firm has benefited because it charges lower rates than the big firms. “For some reason, in the last 18 months, we’ve received new clients because they no longer can afford—or have a desire to afford—the rates that are being charged by the larger firms.” Another benefit, he said, is having a broad mix of clients and business lines.

Another Edina lawyer, David Hammargren, of Hammargren & Meyer, agreed that rates are a factor. He also cites the firm’s suburban location. His firm represents many homeowners in construction defects cases, “who want convenience and prefer not to go downtown.”

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