Do not underestimate the importance of evaluating your divorce services market potential when starting your new divorce services business.
Once you understand the scope of the overall market potential for your divorce services business, the next step is to understand your opportunity for carving out your slice of the market.
It is not enough to know that there is a big market potential in the size of the total market.
For example if you have to go from zero market share to controlling 15% of the market in one year to be successful you might want to consider another business. Gaining 15 points of market share in one year for a start-up business, while not impossible under the right circumstances, it is highly unlikely for 99.9% of businesses.
Also just like all politics is local so is your business potential. You must know, if there is realistically an opportunity for you to carve out enough of a market share of your own local market to be successful.
So step one is…
1. Knowing how big is the total market potential
2. Realistically what is your local market potential
In the case of a divorce services business, the overall market is sizeable and growing. According to a July 2, 2012 CNBC.com report, “The Big Business of Divorce”, there are approximately one million divorces each year in the United States. This means there are about two million people in need of divorce services and other services related to starting life anew.
As a comparison, the divorce market is as least as big as the bridal industry or bigger yet. “If you think about the bridal industry, it’s a $2 billion industry,” said Francine Baras, co-founder of Start Over Smart, an expo business that brings together services for the newly divorced. “No one has a number for the amount of money that is probably in the divorce industry. “And not only is the market underserved, it has not actually been looked at as a niche.” (1)
And, the more people marry the likelihood of multiple divorces per person actually increases. The percentage of first marriages that end in divorce is about 50%, 67% of second marriages, and 74% for third marriages. And the trend is growing.
One divorce lawyer told CNBC reporter Brian Shactman that he had seen a 38% increase in business from 2010 to 2011, which he attributed in part to the improving economy. As income grows, divorce becomes more affordable, and “the dynamic has returned to dividing assets, as opposed to dividing debts”. (1)
So, the divorce services market is growing; but what percentage of that market can your divorce services business realistically expect to attain? Remember it is not just how big the market is but more importantly how much of your local market can you realistically obtain and is it sufficient to be a viable business.
A basic market potential analysis would answer this question. It would include the population and divorce statistics for your county, as well as other factors.
For those who are seriously considering joining the Divorce With Dignity Network, we offer a customized market potential calculator that allows you to make your own assumptions to determine your divorce services market potential in your own county.
The calculator creates a report that helps you analyze information about typical sales revenue averages and an estimated total annual income, based on such factors as your legal professional status, the mix of services you offer, and marketplace competition.
Take Away
The divorce services market is growing and the potential for a divorce services business to succeed has never been better. Becoming a Divorce With Dignity Provider owner can put your business in a very advantageous market position and give you that extra “boost” toward your market share goal.
If you are considering starting a peaceful divorce services business, or adding an additional revenue stream to your already existing legal firm, we invite you to visit our websitePeacefulDivorceBusiness.Com to learn more about the potential you could have in owning your own peaceful divorce services business.
Cited Work
(1) The Big Business of Divorce By: Brian A. Shactman Published: Monday, 2 Jul 2012 | 1:03 PM ET http://www.cnbc.com/id/48045774/The_Big_Business_of_Divorce
