The profession is at a crossroads and facing some of the most difficult challenges for generations.

None are greater than the challenges facing small firms.

The pressure exerted by financial institutions, whether professional indemnity insurers, lenders or before-the-event insurers, means that the concept of a level playing field is in serious doubt if those who offer a good service to clients at a reasonable cost cannot access those clients or are prevented from acting for them.

Just as importantly, regulation should be set at a minimum level of cost and intrusiveness necessary to ensure that clients are always protected.

But this should also permit firms of all sizes and models to operate effectively without a disproportionate burden being placed on them.

Later this year, small firms in particular face the new challenge of alternative business structures.

Many ABSs will look very familiar.

They will either be firms that already have non-lawyer partners, or firms which choose to attract external capital to their business.

The Solicitors Regulatory Authority has outlined 11 possible business models.

In reality, of course, some will be very different, in that they will not be competing openly for clients on the high street, but will already be acting for the client in some other capacity, whether as claims farmers, providers of household content insurance, or even funeral directors.

Does this now mean the end of the small practice?

I do not believe so. Yes, there are difficult times ahead, but we have always been a resilient and innovative profession and we too can take advantage of the new regulations and opportunities to ensure that we not only survive but thrive.

Help will be needed. I feel strongly that it is incumbent on the Law Society to provide a high level of support to all our members as they decide what options are best for them and their business.

To compete on a level playing field, firms should not have to worry about their arbitrary removal from lenders’ panels or unfair discrimination in respect of their professional indemnity insurance premiums.

This means that there is a clear role for the Society to continue to work with these organisations and institutions to ensure that, as long as firms and individuals continue to operate to the high professional standards expected of them (regardless of their business model), they can be confident of their future success.

There are a number of ways in which the Society must help to ensure that solicitors feel confident of facing the future and are equipped to make the sorts of decisions that will be demanded of them.

First, it must continue to promote the solicitors brand, and to make clear to the public that solicitors – and only solicitors – can offer the expertise, training, regulation and insurance which can give their client total peace of mind.

At the same time, it must protect the solicitor brand as a hallmark of integrity and expertise.

Practical steps, like launching the Conveyancing Quality Scheme to help solicitors meet increased pressure from insurers and lenders, must continue.

The Society will continue to help provide clarity on how solicitors can navigate the new regulatory and legal services market.

While it is recognised that an ABS business model will not suit, or be the choice of, everyone, the Society will: publish an ABS practice note this month; update its website with the most up-to-date and accurate information possible; and commission a toolkit for the autumn, focusing on how firms of different types and sizes can tackle the practical challenges of reviewing their business model.

The Society will also run a programme of national roadshows across England and Wales over the coming months to ensure that all our members are as fully informed and well prepared as possible.

The roadshows will comprise three parts, covering the main options that solicitors face. The first session will address setting up or becoming an ABS.

SRA-regulated law firms may consider applying to become an ABS from October 2011.

Session two will focus on a variety of business models that firms could consider to improve their competitive position in the market.

Some firms or solicitors might choose to merge their practice, or to close and leave the profession altogether.

Given the complications surrounding, and the recent changes to, rules concerning exit strategies, we believe that it is important to provide some clarity on the issue.

Session three, therefore, will discuss the options for members who might be interested in mergers, change management and exit strategies.

I ask you to actively engage with the support that the Law Society is offering and the measures taken to promote the excellent service that you provide to your clients.

We want to do our utmost to support the profession as we face the future together and with confidence.

In addition to all of the practical assistance that can be given, the Society must also ensure that the profession remains united and retains its sense of pride in shared values, with confidence in its future.

As Sir Winston Churchill said: ‘One ought never to turn one’s back on a threatened danger and try to run away from it. If you do that, you will double the danger.

'But if you meet it promptly and without flinching, you will reduce the danger by half.’

Go to the Law Society site for more information on the ABS roadshows.

Linda Lee is president of the Law Society