A law firm is just like any other business, which means that you need revenue to keep your doors open. Ideally you want your law firm’s revenue to increase over time, which can be nerve-racking and painfully difficult, especially if you are a solo or a partner in a small law firm.
Let’s face it. You want to focus on practicing law, and not worry about revenue. But because revenue is critical to your law firm, here are 5 keys to increase your law firm’s revenue.
1. Get New Clients. Sounds simple, doesn’t it? That’s because it really is that simple. When a client pays your invoice, that is revenue. More clients paying more invoices equals more revenue. So you can increase your revenue by getting new clients or doing more work for existing clients. In a previous article, we discussed several ways to market your law practice to get new clients, so we won’t discuss them again in this article. The important thing to remember is that new clients will drive more revenue to your law firm.
2. Broaden Your Horizons. Have you considered handling legal matters or representing clients who are 1 hour or more from your office? Have you considered taking on cases in other practice areas? Have you considered adding another attorney with a book of business to your law firm? What about creating a virtual law office online to represent clients in other parts of your state? Broadening your horizons is another way to increase your law firm’s revenue.
3. Stop Beating Dead Horses. A large share of a lawyer’s time can be spent on collecting unpaid fees from clients. But it’s much more than just time for a lawyer. It’s also the stress and mental energy expended on worrying about what you will do if the client’s fees remain unpaid. That’s a lot to think about and to deal with.
You can’t increase your revenue if you are constantly chasing fees. So let the dead horses go, and invest in a better system so that you won’t have to chase fees.
4. Invest In Business Books. Since reading case law, statutes, contracts, etc. is already a part of your daily job, you probably don’t want to receive advice about doing more reading. But we are going to give it to you anyway: read! Reading business books from experts (defined as someone with real-world business experience) not only will educate you, but it can also spark ideas that you can use to increase revenue.
5. Embrace Technology. For some reason (perhaps it comes from schools training lawyers to be risk-averse), lawyers are reluctant to embrace technology. Those that do embrace technology, do so warily. Repeat this in the mirror to yourself: “technology is my friend. Technology is my key to greater revenue.” With the increasing capabilities of smartphones, instant messaging apps, and online payments, technology enables you to be a lot of places at once and to still get paid. For these reasons, technology should be embraced.
Do you have any keys to increasing law firm revenue? We would love to hear from you.
This article is intended to convey generally useful information only and does not constitute legal advice. Any opinions expressed are solely those of the author, not LawChamps.
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