This post wraps up my series on how law firms can cut waste from their budget. My goal over the last several posts has been to give attorneys ideas on how they can increase the bottom line. It’s common for law firms to feel that the only way to grow profits is to grow revenue. Unfortunately that approach tends to lead to an out of control cost structure and can leave a lawyer burning money like this:
If, however, one understands that profits are also a function of expenses then they can really grow the bottom line and will wind up looking like this guy:
I’m sure you would rather look like the latter.
I’ve addressed a number of topics over my last few articles. Subjects I have looked at included:
- Why attorneys should avoid pay-per-click management companies
- Why law firms should avoid needless hiring
- Why attorneys should focus on improving efficiency
- How law firms can save money by consolidating IT vendors
One thing to take from these articles is that one should not be singularly focused on “getting more phone calls.” For many firms, such an approach may lead to higher revenue but, in fact, will lead to flat or even declining profits (which is the number that really matters after all). Want to get ahead in your practice? Focus on getting your expenses down.