How to grow your law firm and stay on the path to success

Starting a new law firm or growing an existing one is like setting out on a journey. You need to have a final destination in mind to ensure you are on the road to success rather than heading for a dead end.

Many lawyers start their own firm with the idea of practicing in the area of law they specialise in. But looking a little further into the future can help you grow faster. What’s the ultimate vision?

Founders thinking of starting their own law firms should start with their end goal in mind and work backwards to lay the right foundations. Whatever your vision looks like, ask yourself daily: ‘What am I going to do today to get me to where I want to be tomorrow?’

Having a long-term goal will help anchor a strategy for growth.

Processes can be established to facilitate growth, with recruitment focused on attracting the right talent for the firm and investments made in the right technology to efficiently handle new work and boost profitability.

Setting up a law firm, or growing an existing one, can be both challenging and rewarding. Following a few key steps, and avoiding some common pitfalls, can put you on the path to success.

Get the balance right

Starting a law firm is a balancing act between growing the business and creating enough space to do the billable work that will finance your dream.

Like any small business a new law firm needs to:

• Market itself to new clients
• Build the right team
• Invest in the right technology
• Manage money

But the catch for a founder is every minute spent growing the business is a minute not spent on billable work.

Getting the balance right is crucial.

Four essential ways to grow your law firm

With so much to do each day in a new firm, it is easy to lose sight of key priorities. By breaking tasks into four manageable areas and giving them equal attention, founders can stay on track.

1. Grow your external presence: Enhance your social media and marketing presence and try to increase your personal network to attract the right clients to allow your business to grow.
2. Build your team: Recruiting the right people is essential. Maximise your chances by hiring before the firm is overwhelmed with work to avoid rushed decisions.
3. Get the right technology: Invest in technology to improve efficiency, manage increased workloads, and enhance sustainability and profitability.
4. Manage your bottom line: A firm can’t grow if it doesn’t have the budget. This makes managing the firm’s funds and increasing the bottom line a top priority.

Download 4 ways to grow your law firm

Seven mistakes to avoid for law firm success 

1. Don’t do everything yourself: Delegating is one of the hardest disciplines for many managers to master but is essential for success. If a founder tries to do everything, they quickly find they have no time to work on revenue-generating activities.
   
2. Not investing in business development: Founders should spend the time they have wisely. If their conversion rate is 50%, they will have to spend twice as long prospecting clients.
3. Overselling: Don’t oversell to win a client. Doing this means the firm will either fail to deliver as promised or go over time and budget to satisfy them. Either way it is a lose-lose situation.
   
4. Bringing your work home: Don’t let your law firm take over your personal life. When the pipeline gets full, allocate it within working hours.
5. Slow processes: Operational inefficiencies can cruel a firm’s growth. Get the processes and technology right at the start so that when the workload increases it can be managed efficiently.
6. Forgetting about marketing: Referrals can get a firm only so far. Marketing is essential to growing revenues and workload. Grow your social media presence, increase your marketing materials, and maintain and increase your personal network.
7. Making the wrong hires: The wrong hires can set a law firm back significantly. Hire before the firm is drowning in work to prevent rushed decisions.

By following these steps and avoiding these common pitfalls, law firms can lay a strong foundation for sustained growth and success.

Download 7 mistakes to avoid for law firm success

Next in Our Series: Innovations in Office Management and Administration

Stay tuned for our next article, where we explore the transformative power of technology in office management and administration. Discover how automating routine tasks can free up your team to focus on delivering exceptional legal services. We will share strategies to enhance your firm’s productivity and operational excellence, ensuring you stay ahead in a competitive market.

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