Source: LinkedIn Workforce Report, July 2020
The Signal: Even in the midst of a pandemic, one industry is seeing hiring demand grow faster than health care: law. According to LinkedIn, hiring in the legal field has not only returned to pre-COVID levels, but is rising faster than health care as law firms bulk up their bankruptcy staff -- and lawyers hang out their own shingle -- in preparation for the expected surge in COVID-19-related bankruptcy filings.
“I don’t know how fast it will come or how far inland it will go,” attorney John D. Penn told ABA Journal. “But the tsunami is on its way.”
Both law firms and insolvent companies alike will need the help of legal talent with a diverse set of backgrounds -- litigation, mergers and acquisitions, taxes, etc. -- in order to navigate the months to come.
This combination of diverse needs and overwhelming demand opens a series of opportunities, including...
Playing Matchmaker: The most obvious opportunity is to help law firms and business owners find qualified bankruptcy specialists with the right backgrounds and experience by building:
- Specialized recruiting firms
- Premium job boards
- Talent marketplaces
Hire an Esquire is an example of a talent marketplace for the legal field
Niche recruiting firms can earn several million dollars per year. For example, GreenForce -- a company in our Small Business Database -- generates $5m in revenue with 30% margins recruiting talent for cannabis companies.
Similarly, our report on job boards showed that niche job boards in high-end industries, like Aviation Job Search, can generate $6k-$20k+ per day with relatively light traffic. The key is to specialize. Rather than generalizing as platforms like Hire an Esquire do, focus on a specific legal specialization in order to stand out, build authority, and attract early clients.
Two niches worth paying attention to: restaurant bankruptcy and lease restructuring.
As many as 231k restaurants are expected to close as a result of the pandemic, and many chains are dropping dozens of locations.
- California Pizza Kitchen is closing 59 locations.
- TGI Fridays is closing 70+ of its 386 locations (~20%).
- Dunkin’ is closing a whopping 800 locations.
Virtually all of these franchises, along with the myriad mom and pop restaurants facing closure, will need lawyers to help sort out the paperwork, especially their lease agreements, many of which are in default due to quarantines and business closings.
Practice Makes Practice-Perfect: Many attorneys, emboldened by the overwhelming demand for their expertise, are opening their own practices.
“This is a now-or-never time for anyone in the industry who ever wanted to strike out on his own,” attorney Scott A. Underwood told ABA Journal.
But running a law practice is different from being a lawyer, and these people will need guidance and support as they build their businesses. There may be an opportunity to create premium business training catering specifically to attorneys.
Training of any kind may find a willing audience, as a recent report from Leadership for Lawyers shows that 65% of legal firms have suspended some or all of their professional development training.
Source: Learning and Development Practices in Professional Service Firms During the COVID-19 Crisis
The same report showed that large global firms are primarily decreasing their external coaching budget indicating that it could be better to focus on smaller firms and practices. Those that are currently focused on training in the following areas:
- Leading remote teams
- Leading change and innovation
- Business development and marketing during crises
- Building internal communities for support and peer coaching
- Resiliency and dealing with stress
- Return-to-work practices
Support for the Next Chapter: Filing bankruptcy can be traumatic for small-business owners. With so many Main Street businesses now facing closure, there’s likely a need for communities designed to offer those business owners support, education, and motivation for whatever comes next.
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