This article is the beginning of a series on how attorneys can increase and keep the profits of their law firms. Interested in making more money? If the answer is “yes” then read on. If the answer is “no” then, well………….., forward this article to a friend who is not ideologically opposed to prosperity. I’m writing on this topic because I regularly receive calls from lawyers who think there is only one way to make more money from their practice – increasing phone volume. While, for obvious reasons, increasing your phone volume is important, the fact of the matter is that most law firms are hemorrhaging out more money than they can hope to make up through marketing. Focusing on the tips I’ll be discussing will be a step towards looking like this guy:
as opposed to looking like this guy:
Let’s get to it.
Most law firms focus solely on revenue and miss a very important point – what you keep at the end of the day is a lot more important than the raw amount you bring in. Until you nail down this concept there’s little point in growing your revenue; without focusing on your profit margins an increase in revenue just means more money that is going somewhere rather than your pocket. You might as well be taking your cash and doing this with it:
Over my next few posts we’ll look at how you can increase profits and keep that extra money by:
- Cutting inefficiencies out of your practice
- Making better use of technology
- Reducing what you spend on advertising through the use of smarter marketing
- How providing quality client service improves your profit margins
I’ve previously written on how attorneys can cut waste from a law firm budget. My upcoming posts will expand on the topics I offered up in that discussion while also addressing how to increase revenue. Want to take home more money at the end of the day? Stay tuned for my coming posts. If you don’t, then don’t. Given the struggles of the legal profession, however, making your practice a more efficient business isn’t an option anymore – it’s a necessity. Stay tuned.