An MBA, a Harvard Law Degree, a wealthy upbringing?
The one common asset possessed by law firms that break a million per year in annual revenue is none of the above. It’s a Business Plan.
A majority of lawyers who go out on their own, or enter a small law firm for the first time are completely unaware of the need for a formal business plan. Even the concept of this document is foreign and seems like an overcomplicated process, when…well we’re just going to sell legal services. Something you’ve been trained to deliver and are fairly confident in your ability to do so.
But, there is so much more to achieving law firm success than selling and delivering legal services. Seven parts to be exact.
The seven functional areas of your law firm are as follows; Marketing, Sales, the Factory, People, the Physical Plant, Metrics/Money…and last but definitely not least YOU.
Each has its own processes, procedures, costs, and directly impacts the other functional areas. So without an understanding of what needs to happen in each of those sections for you to make a profit…the road to success becomes an uphill climb.
Outline exactly how much money you need to live the life you want. Not the life you’ll settle for, but the life you and your family deserve. Which includes college tuition, a client friendly office space, possibly a new car, etc.
Recognize that sales are a part of every business, including a law firm. And that by selling your services for a fair and justifiable rate you are actually helping more people. The percentage of people in this country who have an unmet legal need is staggering, and so is the number of people you could help by providing jobs…simply by helping the first group who have a legal problem.
Write a business plan. This is not a complicated document, and shouldn’t take you two months of late nights at the office. We host webinars and workshops facilitating this process, and the average is two days to one week, depending on how far out you want to plan. Short-term is the next six months, especially useful for brand new firms, and long-term is five years, a critical practice for operating businesses.
Want a Cheat Sheet?
No problem. For the first time ever we are sharing our Business Plan Workbook for free. No catch, no obligations. Use this as your step by step outline for determining where you want to be, and how you are going to get there.
Download a free copy of our business plan workbook here. Which breaks down the seven functional areas of a successful law firm, and outlines business that should work for you. Not the other way around.
How to Manage a Small Law Firm has built its business on helping small law firm owners grow their organizations from less than $50,000 a year to millions in annual revenue. That’s a fact.
What’s more, is the law firms aren’t just making money, they are building happier lives for the owner and their staff. We believe that building a sustainable law firm doesn’t have to result in depression, guilt, or self-sacrifice. We start with your goals in mind and work backwards to create a plan that works for YOU.
Questions, comments, or concerns are welcome. We are real people with real answers, and if you don’t believe us, just ask our clients. They won’t mind.
The One Thing that Million-Dollar Small Law Firms have in Common (Sponsored) was originally published on Lawyerist.com.