Most leaders of small law firms are considering changes to the way they manage their firm and the services they deliver, in preparation for the entry of new providers into the market from October, according to research seen exclusively by the Gazette.

A survey of 58 small firms by consultants 360 Legal Group found that 72% of respondents either strongly agreed or agreed that their firm needed to change aspects of its business model in response to the transformation of the legal market.

Some 82% felt that they would need to develop the services they provide to clients, and the way these are marketed.

More than 40% thought the firm’s management team would need to be bolstered, with suitable non-lawyer business professionals hired to manage the business commercially.

Nearly half (46%) said they were ‘actively considering’ becoming an alternative business structure. Just over one-fifth felt their firm would need to take advantage of the introduction of external investment permitted under the Legal Services Act to remain competitive.

Viv Williams, chief executive of 360 Legal Group, said: ‘In the two-to-five partner range, we have seen a huge increase in strategic planning among the firms we deal with this year, compared to last.

'They clearly believe that change is coming in 2011, and in planning for that they are very open to making changes to their service, products and structure – and even funding in many cases.’

David Furst, chairman of accountants Crowe Clark Whitehill, said: ‘As confirmed by these findings, our law firm clients are recognising the need to develop services in response to coming changes in the market.

‘You will see the emergence of the multi-disciplinary practice, with a lawyer, an accountant, and an independent financial adviser creating "one-stop shops", or working much more closely together.’