The question “how to grow a law firm” is frequently raised, and it’s no wonder: running a law firm is a challenging task and growing one often becomes more complicated, especially in today’s marketplace.
The legal industry is a hyper-competitive field that continuously demands specialized growth hacking strategies to stay ahead of the cutthroat competition.
If you want to develop your law firm in a safe and sustainable way, you’ll need to start with a strong foundation of strategic planning, which you should build on in-depth analysis and realistic assessments of your current processes and where you can improve.
It’s easy to go and get exposed to out-of-date business approaches, which might have worked for the lawyers you learned from. But in today’s fast-changing legal industry, you’ll need to stay on top of developments to distribute your efforts and resources better.
Key steps and foundations of a good growth strategy that every modern law firm should pay attention to:
1.Focus on being a delegate
Although having a strong work ethic is admirable, it isn’t always in your best interest when it comes to business development, especially if you’re already occupied with potential clients or marketing your services. You’re probably doing work that doesn’t require your attention. So delegating can free up a lot of time & generate growth opportunities. Analyze your professional responsibilities & come up with a list of questions to ask yourself when you’re unsure if a task can be delegated or not. Write them down, and refer back to them.
2.Make systems that work efficiently
Every law firm must have a working system clearly outlined to avoid wasting time and money. This also enables law firms to build a healthy atmosphere for clients and employees. It’s essential to set workflows from which the firm’s operations will flow smoothly in the right direction. Once you have the structure in place, it’s about onboarding new clients, hiring new associates to meet the needs of overwork.
3.Make a wise decision on hiring
Growing a law firm can be difficult without the right people in your team. And as your firm grows, don’t be afraid to put together a team that can help you. Hiring full-time staff isn’t the only option to keep the company afloat. Another way is to assign tasks (such as document analysis, research & writing, litigation, contract review) to outside consultants or legal process management service-providing professionals. By eliminating these tasks from your plate, you can reduce your firm’s workload. This allows you and your team to concentrate on your top priorities.
4.Keep up with the latest trends
Efficient managers understand the need to adopt modern management practices as consumer and business dynamics change. This allows their law firms and businesses to capitalize on strengths and opportunities while mitigating or eliminating risks and promoting creative strategies.
Usually, managers excel at keeping things running smoothly, not modifying them. Taking input from co-workers and trusted team members, change can be scary, but it also holds a lot of promise. These shifts can also come from the most unexpected places, so pay attention.
5.Keep financial management efficient
Many law firms do not operate within a set budget. Furthermore, they do not estimate revenue from the profession as a whole or for particular practice areas. That is because the ability to make such estimates is hampered by the fact that the law firms lack clarity on the overall revenue numbers or an estimate of revenue per practice region. This also makes it difficult for businesses to detect growth trends. So make a proper list of top Financial KPIs that you need to take into account & manage accordingly.
6.Make a marketing strategy that brings numbers
How would you increase the customer base if they are unaware of your presence and the services your law firm provides? To overcome this issue, successful legal practice management requires a marketing plan that can either expand or retain the law firm’s profitability. You must determine where your ideal client will search for a lawyer to ensure that you are present. So a well-balanced marketing strategy demands a presence on the web and social media.
Digitization is the gateway to successful operations for businesses in all sectors, law firms are no exception. In order to expand your company in 2021, you’ll need to focus more on available technologies. Advanced technologies are assisting law firms these days in generating leads, converting them into clients, and retaining them.
Law Firms who use technology grow faster: Firms that used online credit card payments, client platforms, and client intake solutions together regularly gained over 20% more revenue per lawyer per month—and as much as 39% more in August, according to the 2020 Legal Trends Report—than firms that didn’t use these technologies.
Getting more clients, expanding your law practice, and becoming a success story takes effort, planning, and even a change in mindset—but the payoff will be well worth it. Commit to a thorough examination of past and current successes, consumer data, and previous win/loss strategies. This will assist you in identifying the areas that need change and ensuring that you are taking the necessary measures to correct your law firm’s previous shortcomings. Don’t worry if all of these changes sound overwhelming at first. Slow down and make sure you’re not rushing the development process or trying to do too much at once.