Known for their consistency and resilience, law firms must change to stay profitable under the backdrop that many firms are facing challenges with technology adoption, losing market shares, and fulfilling clients’ needs.

More than ever, the market and client demands are driving law firms to look for opportunities for global expansion. And, indeed, opportunities always come with risks, adding more pressure on firms.

Why is it important for law firms to scale up to a global playing field?

Catching up with client footprints

With international trade on the rise and an increased number of trade agreements, clients prefer to expand globally and establish their subsidiaries in multiple countries with strong strategic links.

In spite of the fact that this opens work opportunities and brings in more revenue streams, law firms have to plan for contingency in the event that a client opts for a country where they have no previous experience. Clients will also want a law firm with a good understanding of the ins and outs of international law.

In short, unable to become part of an international workflow and catch up with clients’ footprints, law firms will lose out on the profit of global expansion.

Maintaining long-term relationships

Without a strong network across borders, law firms may be exposed to the risk of losing clients when global expansion is more important than ever.

For example, when a long-time client needs legal representation overseas and your law firm cannot deal with the matter, you are at risk of losing that client to a firm that can.

The clients might look for another firm that has an office in the jurisdiction the project is taking place, or a firm that has developed more presence than yours through a relationship or affiliation making it possible to stay involved in managing the project.

Scaling up and staying competitive

While it isn’t wrong to have a long-term relationship with a loyal customer, it cannot be the ultimate goal. Serving one client, or a small handful of local clients is not an ideal strategy for long-term growth, firms must look to expand their presence further and wider.

Firms should consider stepping up their marketing campaigns by means of sending out emails to targeted clients and building a larger network in order to establish their brand, build credibility, get repeat customers, and convert new leads.

When it comes to competition in the global market, the challenge in global expansion isn’t about whether your firm can deliver a project or not. Instead, it’s about how fast you can deliver it, how efficiently you can get to your results, and how well you can employ your budget for projects.

All of that, combined with being able to meet and exceed customer expectations, is the ways law firms can stay competitive.

Whether small or large – global expansion is the same for each law firm

There has been an outdated perception that large law firms can safely rest on their laurel when it comes to global expansion because they have virtually infinite resources to tackle any problems occurring during the transition.

However, the reality frequently disappoints us. Larger firms mean larger international footprints, meaning they require more effort to manage the process. And, large firms may not always have enough experience or expertise for matters of expansion in every country.

On the other spectrum are smaller law firms thinking there is no need for them to expand, and that staying local is enough. However, with the world constantly evolving in terms of technology and client demands, they will soon be conscious of the fact that there is no other choice but to scale up to stay relevant.

Shortly speaking, scaling internationally is alike for both large and small law firms. No one can escape the fast-paced changes around the world, and firms have to be ready for such a transition sooner or later.

What law firms should know for successful global expansion

Make the right decisions for penetration

There isn’t a one-size-fits-all formula for law firms to use in making decisions for their entry into the international arena. Even so, a good start can be coming up with a penetration strategy in foreign jurisdictions, whether by setting up from scratch or by merging with or acquiring local practice groups or firms (which is especially effective for large firms since it requires commitment and management).

For mid-sized firms, a better strategy would be to seek cooperations with like-minded law firms in foreign jurisdictions and develop a close working relationship with them. And, for small firms with no clients or sufficient work to justify the hard work of building partnerships, they should consider participating in professional associations and law firm alliances to expand their networking.

Navigate local laws

Expanding to different countries, the firms will have to deal with different regulations for providers of legal services. These regulations vary depending on the industries in which the clients the firms serve work. As a result, firms, large or small, have to structure themselves to have compliance with these different regulations.

Cooperate with a third-party service

It is a challenge for any law firms to manage international work on its own effects, and scaling to provide additional client services often demands investment.

One way to expand efficiently is to have collaborations with a third-party service that understands jurisdictional requirements and has feet on the ground to attain necessary information. An entity formation and compliance partner who provides a single point of contact for building global presences.

It is because the process differs from their local jurisdiction that law firms looking to expand business in other countries are likely to hit roadblocks. Regulations, rules, and the laws of the land are not always clear, and there may be questions about establishing a legal entity.