Managing a law firm is an excellent way to make a positive impact on the community. There are millions of people in the United States who need legal advice each year. Some customers feel like legal advice is too expensive. Many attorneys charge hundreds of dollars per hour.
However, running a law firm is more expensive than people realize. As a result, lawyers must charge a substantial hourly rate to remain profitable. Numerous lawyers have significant student loan payments each month as well.
No matter what industry a business operates in, increasing sales is the key to financial success. Most lawyers believe that customers will come to their business when there is a legal need. As a result, these business owners wrongly assume that an advertising plan is not required.
Waiting for customers is the wrong approach for any business owner. Instead, a legal firm should have a marketing plan to boost sales. Providing discounts to clients who pay over a certain amount is a proven way to increase sales. Another great way to find new clients is to offer current clients financial incentives for recommending the business.
Any law firm that does not have a website should invest in one as soon as possible. Most people who need legal advice look at different online options before making a decision. Without a prominent website, a business could miss out on finding new clients. Websites are not expensive to build or maintain, and a new website can drastically improve sales for a law firm.
One growing area of the legal industry is providing online advice to clients. Online counseling is beneficial for both the client and the business owner. Most legal questions asked online are easy for attorneys to answer. Although the business still charges money for legal answers, it is much less than the typical hourly rate.
Customers like this option because it provides a more affordable way to get quality legal advice. In the coming years, many legal experts believe that online legal advice will continue becoming more popular.
Lawyers are notorious for frivolous expenses in business. After spending nearly a decade in college, many lawyers feel like they are entitled to spend a lot of money. When operating a business, reducing expenses is one of the most vital aspects of success.
Business owners should have a monthly budget with goals for both income and expenses. Expenses should be tracked each month. After a few months, a business owner will see all of the opportunities to save money.
Sell Clients to Other Firms
There are times when it makes sense to sell current clients to other law firms. Some clients are more of a hassle than they are worth based on the income the business receives. Many aspiring lawyers want to purchase clients from established firms. Law firm profitability should be a considerable focus for any business owner.
This strategy increases profits in multiple ways. Not only will the legal firm have fewer clients to manage, but the business owner can then focus on other clients that have larger legal needs. Most law firms will pay thousands of dollars for the rights to a client. Selling just a few clients can result in substantial income.
Although managing a company is an arduous process, a successful business is a great way to increase a person’s income. As the legal field becomes more complex, the need for lawyers will only increase. There are simple ways to increase profits within a law firm. Focus on reducing expenses and increasing sales from compelling advertising. Over time, providing superior service at an affordable cost is a proven plan for success in this industry.
by: Dennis Hung