Are you interested in making more money? Of course you are. Otherwise you wouldn’t be reading a blog like this. Many lawyers, unfortunately, don’t look at both ends of the profit equation. These attorneys only focus on increasing revenue and don’t give the expense side the attention it deserves. Want to make more money? Reducing those expenses is the easiest way to do so.
There are two ways for law firms to cut their overhead. The first is with a pair of scissors like this:
The second way to get expenses down, and increase the bottom line, is to develop a plan and attack your firm’s overhead. Doing so will make your profits look like this:
That trend in your profits will, in turn, keep you from looking like this:
I’ve written before on why the legal profession is struggling. As the profession continues to struggle it will turn out that the successful attorneys will, in part, owe their success to controlling overhead.
I’ll be addressing a number of topics over my next few posts. Subjects I’ll be looking at include:
- Why attorneys should avoid pay-per-click management companies
- The fact that law firms often hire employees without the need to do so
- How lawyers err by hiring without first focusing on increasing efficiency
- How law firms waste money by utilizing excess vendors
- How firms lose money to outdated IT structures
My goals with these posts is to address many of the common problems which exist in law firms and to give you a plan of attack against the one’s which exist in your firm. Want to make money? Get those expenses down by following the steps we’ll be addressing.
Whey do you feel attorneys often treat decreasing expenses as a lower priority than the increase of revenues? Please chime in through the comment section below.