10 Strategies every law firm should know

16 Jun 2015

We’ve summed up ten important strategies law firms should know and where possible look to implement.

 

The 80/20 Rule

80% of your profit will come from 20% of your clients. Do you know who they are? Nurture them and create the time to look after them by not working for other clients at a loss.

Disposal

If you have a loss making office or work type you should seriously consider parting company with it. Keeping it affects the morale of the rest of the business ties up capital and management resource, holding back your opportunity to develop other things. Someone within the business may be very happy to take it away and work on it as their own business. 

Focus

Find the things that you are good at and which are profitable, look to grow them. Find more of this work and become known as experts. You do not have to be all things to all men. 

Succession

Put a succession plan in place and do so early. It could be that the future of the business lies with the younger people already within it. If not, then joining forces with another firm can be the answer. Either way do not leave it until the last minute. 

Join Forces

Being larger can allow you to have critical mass in key business areas, increase your geographic spread and give economies of scale in support costs. There are a number of ways to achieve this, being acquired by a larger firm, a merger of equals, the acquisition of a smaller firm or a joint venture.

Broaden the Base

Add new business areas which complement or improve the quality of what you do. This can be achieved by laterally hiring someone who can bring some clients with them. It is important to make sure that the person will fit, that they can do what you want and that they will deliver.

Watch out for gorillas

Develop a spread of clients and sources of revenue. If you have a small number of large clients they can hold you to ransom and cripple the business if they leave. Like a 500lb gorilla they will sit where they like. 

Invest in marketing

Money spent on winning work and promoting the firm should be seen as an investment. Spend carefully, but money spent wisely will generate a return in increased revenue and profit. 

Look after your people

Businesses get the staff they deserve. If you do not have good people, you cannot acquire and keep good clients. Don’t over pay them and don’t pander to them, but invest in them, train them and motivate them.

Delivery of reliable quality means having good systems.

You need to have documented systems and processes in place. That way you can get your people to work to them and deliver reliable quality at a reasonable price. You need to delegate. The systems guide your team in knowing what to do.

 

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