What do all lawyers have in common?
Well, it might not be all of them, but most dream of opening their own law firms one day. If you’re already in private practice, thumbs up!
However, it’s one thing to establish a law firm and it’s another thing to turn it into a large, successful firm. Law firms fail just as much as other types of businesses do, recording an astonishing 92 percent failure rate.
Proper law firm management is one of the keys to running a successful firm, but what does it take?
Read on to learn some of the common management mistakes law firm owners make and what you can do differently.
1. Failing to Stick to the Business Plan
A law firm is a business that needs to make money, failure to which it will collapse. And like all businesses, any firm needs a business plan before it can open its doors.
Most lawyers know the importance of drawing up a plan. However, some owners deviate from the plan soon after the business is up and running. This is a big mistake.
Business plans aren’t there just to guide you through the launch phase. They should also guide you to long-term growth.
Abandoning the original plan, mostly because everything seems to be going well, can end in disaster. If your business plan fleshed out a specific expansion strategy, for instance, failure to follow the strategy can lead you to a rapid, unsustainable expansion.
2. Inadequate Staffing
As a small law firm, you’re probably running on a shoestring budget. It’s therefore understandable that you might want to hold off on building a big team.
However, understaffing can hurt the operational efficiency of your firm and stunt its growth. Prospective clients who call the firm might fail to reach anyone, simply because you don’t have a receptionist.
Or, you can easily misspend money on law office supplies because you don’t have a clear picture of what the firm needs or doesn’t. Hiring a law firm manager will help you reduce expenses and keep the office running efficiently.
Know the key positions you need to fill as soon as possible and expand your team as your firm grows.
3. DIY Marketing
Law firm marketing is an important part of law firm management. Competition for clients is getting fiercer by the day, so you need an effective marketing strategy to build and expand your customer base.
Some law firm owners double up as marketing specialists, which is a mistake. Although you might have some marketing proficiency, marketing is not the best use of your time. Perhaps you’re doing it to save money, but you’ll best serve your firm when you hire a marketing professional.
You can always outsource to a law firm marketing agency, which is way cheaper than hiring an in-house professional, and way more effective than taking the DIY approach.
Avoid These Law Firm Management Mistakes
It’s no secret that many small law firms fail because of poor management. Don’t let yours become part of the statistic. Learning the common law firm management mistakes will help you know the potential challenges that lie ahead and implement measures to avoid them.
Keep tabs on our blog for more small business advice.
