# How to decide where to locate a business



## Vanilla (8 Jan 2004)

I would like to set up my own legal practice but I  dont know how to decide where to set up. I live very near a small town that has no other solicitors but maybe it is too small to generate enough business. I  does have a doctors practice and an accountants practice which appear to be doing well. A little further is a large market town with plenty of potential clients but with about five solicitors firms already sharing the potential client base. I don't know whether there is a formula depending on the population etc? Can any one help?


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## Brendan Burgess (9 Jan 2004)

Hi Vanilla

A very interesting question.

Would the local population of the big town see you as a small town solicitor if you set up in small town? 

If you set up in the big town, you could probably still rent an office on Tuesdays in the small town and have the best of both worlds.

Does the Law Society have a practice advisor? I know that the Institute of Chartered Accountants runs courses for people setting up accountancy practices. Maybe the Law Society does the same?

There is every likelihood that there is a specialist advisory firm in the UK running such courses. 

Brendan


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## Vanilla (9 Jan 2004)

Thanks, Brendan. Yes, I'm going to such a course in a few weeks time and am trying to do as much research as I can in the meantime so I will get the best 'value' out of the course. I take your point about being considered a 'small town' solicitor. I suppose I have to decide whether that's something I would mind. Not getting the big jobs/ clients etc.At the moment I feel if I got enough clients to run a reasonable practice I wouldn't mind, but I would like to know if population numbers influence revenue- well, obviously it does- but I would like to know if, based on the population that is there, if I could reasonably expect to make a living...


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## tedd (10 Jan 2004)

If you set up in the big town and go out to the small town one day a week, you can test the market. If you get enough business there, you can gradually increase the amount of time you spend there. You could eventually close or sell your big town practice and relocate.

I think it's easy to go from being "big" town to "small" town in this setting but the reverse might be harder.


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## Brendan Burgess (10 Jan 2004)

Vanilla

UCD has a [broken link removed] which studies, among other things, the location of shops and consumer behaviour. You could contact them to see if there are any principles which might help you decide.

Brendan


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## monk (10 Jan 2004)

*If you set up in the big town, you could probably still rent an office on Tuesdays in the small town and have the best of both worlds.*

Before I read the reply(s) this already came to mind as the best way to go. Definitely a good angle to approach becoming 'the' solicitor in the smaller town


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## Vanilla (14 Jan 2004)

Thanks to all for replying. It wasn't what I wanted to hear- I hoped setting up in the smaller town would be a good idea, as rents cheaper etc, but good to get independant views, and having recieved those views, am rethinking the situation. It won't happen for another few months anyway, but I intend to get as much advice as I can before then.


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## Tommy (14 Jan 2004)

Hi Vanilla

I hope I'm not being smart or anything but (speaking as someone who has themselves opened a professional practice) if I were in your shoes I would place a lot more reliance on your own judgement & knowledge of a particular market and locality than on what a few people might say on an internet message board.


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## monk (14 Jan 2004)

Tommy, that reply did seem a bit smart. As this is a discussion board where people are giving opinions I don't see how your post assists Vanilla. Vanilla I'm sure is capable of making their own decisions, just looking for different point of views from a cross section of people. Why knock this kind of query, and peoples answers, when nobody here is trying to deliberately ruin Vanilla's idea's. If you have positive suggestions/ideas then these should be posted.
I don't run a prof. practice so my opinion is only a general gut feel.. You do run a similar practice so please why not offer your idea's?

My logic:-

- I live in the small town. I require legal services on a fairly regular basis (I assume these are the backbone of a practice?, the rest being fairly infrequent clients where a large population catchment area would be an advantage?)
- I know at the moment I have to travel to the large town for my legal services. I'm fairly used to and comfortable with this. (I assume there is a fairly strong link between solicitor/client who have dealt with each other for a number of years?)

A) In my small town a new legal practice has been set up. 
_(A question just came to me. Vanilla, do you live here? know alot of potential clients here? established pillar of society and all that? I might change my thought path if these are affirmatively answered)_ 
OK, so a new practice has set up here and it would be more convenient to do my regular legal business here, but, I don't know anybody who does business there who can recommend them... I don't like change and the bar-fly's reckon the practice is going to struggle(is this an Irish condition?) and I don't like change(another Irish condition?) - my current solicitor and me have worked together for a long time. They're not great all of the time but they are a well established practice making a living in this 'larger' town so they must be the norm..

B) I see there's a new practice in the larger town, I don't go in (see reasons above re scepticism/don't like change) but I've noticed a new entrant in a town that is not my locality, so I am just curious about how they get on and don't hear anybody trying to put them down(out of sight/out of mind in the smaller town, not good gossip?) So the new practice gets some business in the larger town because there is space in the market(for the irregular stuff?) so they can keep going. They now have a bit of space to put in place feeler's to reach their target market (the small town). A simple move but very astute. They place adds etc. around the smaller town welcoming anyone requiring any type of legal assistance (nothing too big or too small, that sort of thing), to pop along to the now to be regular once/twice a week sessions you will be holding in the town for the local populations convenience. This goes down well with local's who might have little legal issues they mightn't't have bothered going to the larger town with, but now somebody is reaching out to them that could assist. This visiting solicitor from the larger town gains a reputation, from their good business practice, and this leads to praise/recommendation via word of mouth (another Irish condition? word of mouth is worth its weight in gold, some threads on this site give example). The person(s) requiring regular legal assistance hears this back and decides the solicitor who is courting business in the small town should at least be tried out for their business.. And they all live happily ever after! Goodnight! The solicitor ends up with enough business in both towns to set up 2 office's and retires to the Bahama's as a local gets caught up in a tribunal and bring their own solicitor...


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## <A HREF=http://pub145.ezboard.com/baskaboutmoney.s (14 Jan 2004)

> Tommy, that reply did seem a bit smart. As this is a discussion board where people are giving opinions I don't see how your post assists Vanilla.



As a discussion board it's also sometimes necessary to state the obvious in case the original contributor or other perusers haven't copped it. Tommy's point was fair enough in my view.  Then again I've been accused of being too smart myself recently


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## Tommy (14 Jan 2004)

Monk

What, precisely, is wrong with the idea of Vanilla relying primarily on their "own judgement & knowledge of a particular market and locality", as I recommended?


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## monk (14 Jan 2004)

Vanilla is a regular poster in the site and I'm sure he/she knows how this site works. Also, as a solicitor I would be surprised if they made a decision solely from replies on this thread. The 'about AAM' link at the top of the board states gives a run down of what you can expect from the board in way of non-expert opinion's. Especially as you have opened a professional practice and could provide some valuable insight that Vanilla may not have thought of. 
AAM is a resource, one of many that people should use when making financial decisions etc. I don't see the need for every second reply on AAM to be 'read up on it yourself' or 'rely on your own judgment', can you not just give your opinions and have some sort of disclaimer link at the bottom 'Askaboutmoney is not a substitute for professional advice'. Although 0 is handy with the googling..


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## <A HREF=http://pub145.ezboard.com/baskaboutmoney.s (14 Jan 2004)

> I don't see the need for every second reply on AAM to be 'read up on it yourself' or 'rely on your own judgment', can you not just give your opinions and have some sort of disclaimer link at the bottom 'Askaboutmoney is not a substitute for professional advice'.



You'd be surprised how often you have to spell things, even the seeming obvious, out and how you can get into the habit of playing it safe and doing so even if it irritates the odd person...


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## Tommy (14 Jan 2004)

> can you not just give your opinions and have some sort of disclaimer link at the bottom


...and people may complain that they were misled because they didn't read "the small print"



> Especially as you have opened a professional practice and could provide some valuable insight that Vanilla may not have thought of.



I have already contributed to this discussion, and offered an insight that I thought was worthy of mention. Looks like I shouldn't have bothered when all I seem to get is repeated "more, more, more..." demands from you


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## <A HREF=http://pub145.ezboard.com/baskaboutmoney.s (14 Jan 2004)

Funnily enough, as in this case, it's rarely the person who originally solicited comments who gets worked up about people stating the obvious etc...


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## Vanilla (14 Jan 2004)

I appreciate everyones comments and that some very busy people have taken time out to reply to my query. Two things-

Tommy, be assured I won't make my decision solely on this boards replies, however having been almost dead cert to open in the smaller town, the fact that a number of people automatically thought the bigger town was the better option has given me food for thought. Especially where I've followed those peoples comments on other threads and found them informative and interesting. At the end of the day, I realise the decision will be mine and mine alone.

Monk- " pillar of the community?!!!" :lol  I just don't know what to say to that...only joking, I know what you mean. I'm a relative blow-in to the area, but I have worked in the larger town for a number of years which has in its catchment area the residents of the smaller town, which means I've dealt with quite a few people from the area, and I've moved to live just outside of the smaller town, although I wouldnt be a member of any clubs, societies etc in the area as yet. I guess that's something I should think of doing.


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## Tommy (14 Jan 2004)

Hi Vanilla

Good to hear that  

Again I am reluctant to comment in detail as some people seem rather er, sensitve around here, but if I were in your shoes, I would be reluctant to change my plans on the basis of the (by definition, generalised) feedback you receive here. 

IMHO, your best bet is to talk to people in your own profession who have made similar moves in the past, and (as Brendan advises) any practice advisory personnel in the Law Society or elsewhere that are knowledgeable in this area. You should look at other options such as possible partnerships with other like-minded solicitors, or buying into an existing practice.

I know plenty of solicitors who have opened up in small towns and they all seem to be doing well. In any new business, it is essential for the business to have some sort of "unique selling point" to differentiate them from their larger competitors and opening in a small town may be easier than trying to compete on day 1 with more established and stronger firms 5 or 6 doors away in a bigger town. 

Ultimately IMHO your own character, professionalism and integrity will in the long run be far stronger success factors for your practice than your location of your office.


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## temptedd (16 Jan 2004)

But bear in mind that some potential customers would prefer to travel away from the small town to get their legal advice. Personally, neither I nor anyone in my family would dream of using a legal adviser from the small town I come from. I wouldn't want them knowing my business and irrespective of how professional and ethical the solicitor is, in my experience these qualities are not uniformly shared by their secretarial and admininstrative staff.

I would disagree with Tommy's view that someone who has set up a professional practice is in a better position to advise you Vanilla. My perspective is that the professions would be a lot better off if they spent a little more time listening to their customers, for a change.


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## Tommy (16 Jan 2004)

> But bear in mind that some potential customers would prefer to travel away from the small town to get their legal advice


This may be true of some customers but surely this is as good a reason as any to locate to a small town, as one would expect a lot of business to come from the population of the bigger town nearby, who don't necessarily want to use their local solicitor.



> irrespective of how professional and ethical the solicitor is, in my experience these qualities are not uniformly shared by their secretarial and admininstrative staff.



I think this misses the point that all professional firms nowadays must implement and operate proper ethical codes for staff encompassing things like confidentiality etc. It also misses the point that it is unlikely that the employees of any business will all be natives or residents of the town or region in which the business is located.



> I would disagree with Tommy's view that someone who has set up a professional practice is in a better position to advise you Vanilla.



Why? Surely they will be more knowledgeable about the ordinary day-to-day pitfalls, problems and situations that one has to encounter in running the business? Does it not also hold that if one is opening a bar/restaurant/construction business etc that others who have done similarly in the past will be more aware of the issues involved than your ordindary Joe in the street? 

eg Should a bar owner depend on his customers to advise him on licensing law, dealing with suppliers, pricing issues, health & safety issues, employment regulations, tax etc etc...?



> My perspective is that the professions would be a lot better off if they spent a little more time listening to their customers, for a change.



This may be your opinion but surely this viewpoint has little relevance here. Any practising professional can only survive in business if they have among other things a strong customer service focus. Of course this involves listening to customers and taking their opinions on board. However It will be impossible for the professional to provide good customer service on a sustainable basis, if basic and avoidable mistakes are made in relation to the running of the practice. Customers will not forgive the professional if slipshod service or poor advice is dispensed as a result of inadequate planning within the practice. This is why specialist advice is essential.


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## jem (16 Jan 2004)

Have to agree with Tommy, 
As one who set up an Accountancy practice a few years ago I feel that I have learnt a lot through experience. Myself and another Accountant in practice regularly discuss different things trying to share information and practical experience.


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## Brendan Burgess (16 Jan 2004)

Tommy

It's not just about confidentiality and ethical codes. There are people who just do not want other local people to know their business. It's just one of the many factors to consider.

Brendan


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## Tommy (16 Jan 2004)

Hi Brendan

I am aware of that. However I am unsure that this is as big an issue as some people think. 

I know of solicitors, accountants, auctioneers and bank branches that derive a large share of their client base from the immediate neighbourhood, even in small towns. Although some people will prefer to bring their business elsewhere (as I mentioned above) it seems that many people prefer to avoid the inconvenience of travelling elsewhere. 

In any case, what goes around comes around and a solicitor can expect to gain as much they will lose from this factor, regardless of where they locate.


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## temptedd (17 Jan 2004)

> This may be your opinion but surely this viewpoint has little relevance here.



If I didn't think my viewpoint had relevance here I wouldn't have posted it. Frankly, it's high-handed of you to dismiss views that do not tally with your own.

If I were setting up a professional legal practice I would be extremely interested to hear what potential customers think. It's called market research.


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## Tommy (17 Jan 2004)

> Frankly, it's high-handed of you to dismiss views that do not tally with your own.


Hang on a second, I never dismissed your view or did I deny that talking to potential customers would be a good idea. However you did dismiss my opinion (which I and others have justified at length) that Vanilla needed to talk to other professionals that had already taken the plunge. I can't see how you could have a problem with that


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## temptedd (17 Jan 2004)

This thread deals with a specific aspect of setting up a professional practice:  location of practice.

What I said was:


> I would disagree with Tommy's view


. 

That is, I would disagree with your view that fellow professionals are in the best position to judge the best location.

I have no problem disagreeing on this issue. I do have a problem when you wish to determine whose views are "relevant" and whose are not.


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## heinbloed (17 Jan 2004)

*how ...*

Don' t ask for an opinion if you don't want to hear it .


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## Tommy (19 Jan 2004)

*Re: how ...*

Hi temptedd,

I think you may have misunderstood my earlier comment. In order to clarify the point, I hope you don't mind if I repeat myself.

You objected to the following comment:


> This may be your opinion but surely this viewpoint has little relevance here.



The "viewpoint" to which I referred was as follows:


> My perspective is that the professions would be a lot better off if they spent a little more time listening to their customers, for a change.



Believe it or not, I don't disagree with the sentiment you expressed here. However, I also don't see really how much relevance this has to the specific issue being discussed - the location of Vanilla's practice. 

We all have our opinions on how well or how badly certain businesses and industries listen to their customers. If Vanilla is able to listen well to their customers and operate their practice accordingly on that basis, he/she will do well no matter where their base is situated.

Do you see where I'm coming from?


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## Tommy (19 Jan 2004)

*Re: how ...*

Marie's post on setting up a therapist's practice  gives a good example of the industry-specific issues that need to be tackled when forming a professional practice. Obviously things will vary slightly for different industries with different regulatory requirements etc but some of what she says will hold for all types of professions.


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## Vanilla (21 Jan 2004)

*Re: how ...*

Thanks again, Tommy.


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