Profits are the name of the game in business, and every owner loves making them. However, improving the profitability of a law firm is never easy and needs to be approached strategically.
Firms have to deal with a lot of market pressure; they have to shoulder emotional barrage of clients, keep an eye on competitors and keep partners and paralegals updated about the firms business. While there is no single solution to improving profitability, here are some ways to improve the profitability of your law firm:
Build your network
Branding should be an investment every law firm takes seriously. Strong brands command respect among peers and open doors for collaborative opportunities. A strong brand also attracts new clients and strengthens the firm's presence within the industry. Fact is, big brand names command huge pay cheque because a customer would rather pay more per hour to a big brand than a firm with little to no brand identity.
Build your brand
Networking is one sure way to keep your work slate busy. Networking is essentially creating relationships that can lead to new opportunities. Keep a database of your past clients and maintain good communication with them; you don't know when a friend of theirs might need your services. Attend events and meet professionals from diverse industries, you will be amazed at how many opportunities may arise. Networking will also allow you to refer work onto others when it doesn't fall into your area of expertise, and in time they will do the same for you. The more people you connect with, the bigger your circle of influence grows, and the more you stand a chance to land a new client. Setting networking/BD KPI's for your team can be an excellent way of rapidly expanding the network of you and your firm.
Gather industry insights
The business environment is ever changing. Firms that can adapt to the change are the ones that thrive. It is pretty straightforward; adapt or fail. With proper insights, you will be on top of industry trends and how they will affect your business. A key to improving profitability is to use these industry insights to put yourself ahead of the competition. But you have to know how to utilise these insights to create an impact; both for you and clients. Will law firms automate repetitive tasks in two years to come? Will it be profitable to hire employees on a permanent basis or to work on short contracts? These questions will lead you to better position yourself in the industry and make profits while other firms are trying to adapt.
Invest in intelligent legal software
The legal business has a lot of routine tasks that can usurp your energy. Instead of going the traditional way, you can accomplish considerably more by investing in practice management software. As a firm, you have to be aware of technological advancements in the industry and make good use of them to increase your profit margin. Using an integrated practice management software like LawMaster can improve your profitability by handling your routine tasks, giving you time to shape your vision for the firm.
Profitability improvement does not have to be a far-fetched dream. The earlier you consider these ways and commit to them, the bigger your profit margin will grow. Improving profitability takes consistent work, but it is very achievable. Productivity leads to profitability, contact us today to see how LawMaster can improve your firms productivity by at least 30%.