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New disruptive model set to meet increasing digital business demand
New digital transformation and growth in online business commerce have increased demand for law firms, with one NewLaw firm set to provide a new model to deal with the influx.
Tony Zhang
LegalVision has reported a 52 per cent increase in enquiries from people interested in setting up online businesses in the second quarter of 2020 compared to the first quarter.
Lachlan McKnight, chief executive officer of LegalVision, said that they had had an influx of businesses looking to register trademarks and patents to protect their brand and inventions.
“The overall results show a fascinating insight into what’s happening on the ground for not only businesses trying to survive, but also for those who have lost their jobs,” he said.
“Businesses are contacting us in the thousands every month to quickly get privacy policies, terms and conditions and shareholders agreements drafted by lawyers as they prepare to launch new businesses or move their existing business online.”
The data showed a 17 per cent increase in business structuring enquiries, including new business formation, partnership structuring and business owners protecting assets through trusts.
The firm also saw a 27 per cent increase in regulatory and compliance enquiries as more businesses look to import more goods or obtain licences to trade online. Intellectual property enquiries also saw a 27 per cent increase.
Mr McKnight believes the uptick is tied in with the increase in online businesses being formed, what’s happening at grassroots level to survive and thrive at this time.
The firm also saw a 12 per cent increase in enquiries about disputes.
“We’ve anecdotally been dealing with more businesses experiencing issues around debt recovery and unpaid invoices due to economic uncertainty and business shutdowns, unfortunately,” Mr McKnight said.
“We’ve seen a 29 per cent decrease in corporate immigration enquiries with fewer businesses hiring talent from overseas because of border shutdowns.
“There has also been a 24 per cent decrease in enquiries around selling businesses, with a recessionary economic climate not conducive to be selling a business right now.”
In seeing the growth across the space, the 100-person firm is launching a new subscription service which offers unlimited lawyer consultations and free legal templates for only $199 a month.
LegalVision reported the subscription service has had a 129 per cent uplift in the second quarter of 2020 compared to the first quarter.
Mr McKnight said that with many traditional law firms charging $500 or more for a one-hour consult, or charging in six-minute increments, the company is intent on disrupting the traditional law firm business model.
“Our subscription service has had a 129 per cent uplift in the second quarter of 2020 compared to the first,” said McKnight.
“After the GFC, in the US, we saw the birth of many [start-ups] which became [multibillion-dollar] businesses including Instagram, WhatsApp, Uber, Airbnb and Slack.
“Australia’s last recession was in 1991; we all have some catching up to do when it comes to innovation and digital transformation as we’ve had it a little easier here compared to other global counterparts.
“Our companies can either choose to be those that innovate like Disney or Apple or maintain business as usual like Blockbuster and Toys“R”Us.
“I know what we’ll be recommending to our clients!”
