Law firm growth is at the top of most firms' minds. But while often considered important, most firms aren't actively engaged in efforts to grow the firm as they are working with current clients. Taking the time to set up and follow through on various tactics goes a long way to achieving the goal. See these tips to get started so you see growth in the coming year.
As they say, the devil is in the details. Define your ideal outcome. Is it growth in the number of clients, cases, billings, or some other parameter? You may have multiple goals which is great but be sure you only set as many as the firm can address.
Developing a clear growth strategy that aligns with the firm's vision and long-term goals means you need to know those too. Identify target markets, practice areas, and client segments that offer growth potential and that your firm can provide with confidence.
Focus on attracting new clients and expanding existing client relationships. There are many options here, including online and offline options. Check out some of our recent blog posts about efforts to increase client count. Consider adding some marketing and business development strategies to increase visibility, such as online marketing, networking, referrals, and targeted advertising.
One effort that you are already addressing can make a big difference in providing great customer care. To maximize the benefit of what you are already doing, be sure to have a review site for your firm and encourage clients to post reviews. This simple step can help without much time or effort on the part of your firm.
Depending on the areas of law your firm practices, and how many other law firms in your area offer similar services, your growth may be limited. Consider expanding into other related practice areas or perhaps something new. When looking at your options, review the growth potential in that area of law. Some demographic trends may be helpful. Develop or hire attorneys with experience in these areas. Keep in mind these updates should further differentiate your firm from competitors and attract clients looking for help.
Depending on your strategic plan, your firm may need to hire additional attorneys or legal staff. When considering your options, remember the balance between cost and benefit. Surely, hiring someone with less experience benefits the firm financially, but may not be enough to attract the client base your firm needs. Ongoing training and development for the entire team, whether new hires or not, is critical. Certainly, CLEs are important but consider additional training.
Growth at any cost isn't in the best interest of the firm. Leverage technology to streamline repetitive, mundane processes to maximize the efficiency and productivity of each member of the firm. Look for case management software that gives your firm the tools to easily and accurately track time, create invoices, offer an optional client portal, document automation, task and calendar management, and more. Keeping an eye on overhead costs, focus on the technology capability the firm needs, and select the platform that offers that. It's super easy to get caught up in the onslaught of capability but unless you really need the features, do you need to pay for them? Consider SimpleLaw. We offer all the tools attorneys and law firms need to maximize their efficiency at a low cost.
This is all about networking. Connecting with fellow attorneys and law firms that offer complementary services or completely different practice areas are a great way to gain new leads. You never know when someone's current client may need your firm. Attend your local Bar Association social events. Bring lots of cards. Consider getting involved in a local community group - for example, your local Chamber of Commerce. Look for opportunities to create a broad and diverse network. And stay in touch!
Growth should be beneficial to the firm financially. This may take some time if you expand your practice area options. But keeping an eye on investment expense versus revenue is important. Create and implement strong financial practices to support profitable growth objectives. Monitor key financial metrics, such as revenue, profitability, and cash flow. Develop a financial plan, including budgeting, pricing strategies, and effective billing and collections processes. If you already work with an accountant, consider engaging them to develop your strategy and monitoring process. Look for case management software that tracks all of this data to make it easy to monitor, too. Like SimpleLaw.
As they say, the one constant is change. As your firm pursues different growth strategies, it's highly likely other firms in your area are doing the same. There are always new social media outlets popping up, new ways to network, and of course, changes in demographics. Set a regular schedule to review the firm's performance, growth initiatives, and market trends. Analyze data and feedback to identify areas for improvement and adjust strategies accordingly. Be agile and adaptable to changing market dynamics and client needs.
Growing your law firm efficiently doesn't need to be difficult or require a lot of time. The key is starting. Taking on all of these tasks can feel daunting. Start with one or two. Do a quick Google search for law firms who also offer your areas of practice. Attend a networking event. The key is getting started.