This wraps up my series on how attorneys can increase and keep more of their profits. I’ve been writing on this topic because, to be blunt, I speak with many attorneys who want to make more money but are going about it the wrong way. Attorneys who are willing to think outside of the proverbial box, and accept that the traditional law firm’s business model makes little sense, are going to clean up going forward.
I’ve looked at various topics over my recent posts. Subjects I’ve discussed included:
- Making your law practice more efficient
- Improving law firm profits by leveraging technology
- Attorneys can increase profits with smarter marketing
- Lawyers can increase profits by providing quality service
The steps and suggestions I outlined in each of these posts are pretty basic. I mentioned them because it can be surprising how many solo attorneys, small firms, or even large firms don’t do these basic things. They run an inefficient practice and try to grow their business solely by “getting more phone calls.” What they don’t understand, however, is that you need to be running an efficient operation before you can start worry about growing revenue. The reason for this is two-fold. First, growing revenue without making your firm run smoothly is simply going to result in that new found income going right back out the door in the form of unnecessary administrative time and other waste. Second, an efficient firm (for reasons I laid out in my last post) will inherently increase revenue on it’s own without spending more money on advertising or trying to manufacture new clients. Want to make more money? Follow the steps outlined in the posts above and also check out my 30 days to a better law firm series.
Here’s one last bit of information before I close out this series. Don’t make the mistake that many firms make. That mistake is thinking that the attorneys with the most revenue are also the most successful. There are many large firms which attorneys would aspire to run. Those aspiring attorneys, however, would be shocked to find out that the owners of those large operations don’t take home much in way of income and may even be losing money. Some of the most profitable operations I’ve dealt with are solos or small firms, with small offices, who run a highly efficient operation. What matters is not how much revenue you bring in, it’s how much income you take home at the end of the day.
Why do you feel so many attorneys make the mistake on focusing on revenue without first improving efficiency? Chime in through the comment form below.