Large firms can also get trapped, but in a different way. Larger firms often rely too heavily on a few rainmakers to cultivate business. As the firm grows, so do the expenses, and more pressure is placed on the rainmakers to bring in business. Soon they are bringing in a disproportionate percentage of the revenues. When an important partner leaves or retires, large chunks of revenue are stripped from the firm and no one knows how to replace it.
Expenses are still high but now revenues are dramatically reduced.
Unless the firm finds a white knight it implodes, sometimes within a matter of months. The key failing in both cases is the lack of a proactive marketing plan. When you take a passive reactive approach to marketing, your revenues are highly dependent on others. You give up control. A marketing plan for attorneys doesn't necessarily mean television advertising and direct mail campaigns.