Published in the Tuesday July 18, 2019 edition of the Chicago Daily Law Bulletin
Time flies when running a business. Major milestones tend to sneak up on you. While I hate to be the bearer of bad news for those who have been caught up in everyday work this past winter and spring, I must share a sobering piece of information: It is already time for midyear reviews.
But, there is some good news: You should find the general information in this article even more useful if this year’s halfway point seemed to arrive too quickly.
I believe there are certain behaviors that build strong legal businesses and reinforce positive results. I will focus on two main activities most lawyers could put into practice immediately:
- Focusing marketing efforts.
- Using data to make operations decisions.
Apart from drawing on my own experience, I have reached out through my network to get some other perspectives. This is not specific advice, but I still hope you find something here that helps you focus the success of your practice following your midyear review.
Marketing focus
One of the first steps toward efficiency is identifying your best clients. Depending on your perspective, a best client can be different things to different people. However, from a marketing perspective, your best client is the one who is best suited for your type of practice and one that will be the most profitable.
Although a big, contested litigation case may produce large fees, it may not be your best client if your practice is geared to a volume-based practice.
Communicating your niche
Once you’ve identified the clients and cases you are looking for, you must make sure your marketing is directed to those types of clients and that your message is being heard by them.
If not, you have some miscommunication somewhere along your marketing pipeline. Two conceptually related, but practically different areas of the law, are probably conflated in clients’ minds. Your website marketing materials, your social media accounts or even word-of-mouth exchanges could be causing potential clients to misinterpret the focus of your practice.
Troubleshooting
There are a few questions you could start asking to improve marketing effectiveness.
Are you sending your message somewhere your ideal clients can see it? Are you communicating the exact issues or types of cases you would like to handle?
Are you maintaining focus on your ideal cases and clients across your blog, social media and other campaigns? Are you answering the questions your best clients have already asked you?
Optimizing your message
If you are already getting good leads, there are still opportunities for improvement. New clients may have looked at many options before they arrive at your doorstep. Find out why you stood out. More often than not, it will be how a person feels about you.
Remember, you do not have to make everybody instantly relate to you — just focus on the clients you want the most. This consistency has the potential to form a truly trusting professional relationship right from the start.
Operations focus
Building a profitable practice depends on satisfying your clients’ needs. However, it is important to realize that getting good results and doing so efficiently are two very different things.
Identifying your most profitable cases is one key to a successful practice. Quantifying a few variables is essential. Variables include the fees earned compared to the time and cost of the people required to complete the case, as well as allocating fixed costs such as rent, to the equation. For some, this analysis can be done on their own. If not, involving knowledgeable professionals such as an accountant makes sense.
Managing your entire practice
When more than one worker is involved, things often become complicated quickly. Fred Cohen, a lawyer and CEO of Zola Suite, shared some of his thoughts on this subject with one of my team members. I will pass them on in entirety to you here:
“As a business owner, I often find myself too busy chopping wood to stop and sharpen the ax. Many of the attorneys I work with find themselves in this same boat: They consistently work in their businesses — but not on them.
“The only way to build sustainable success is to regularly sharpen your ax and focus on your business plan. What are your goals for 2019? How are you going to get there? What systems, people or processes do you need to accelerate growth? Are you running your practice as systematically as possible?
“In answering these questions, avoid making assumptions. Instead, look to the data to challenge what you think to be true and use this information to make better decisions.
“What data, you ask? All of it! Everything from pipeline management and client touch points to productivity tracking and timekeeping should be measured and managed. The right practice management software can help you do that; perhaps, that’s the ultimate sharpener.”
I find one way to improve the future of a practice is to take some time to look back at past success. Practice management systems often help maximize the efficiency of these moments of reflection. The best tools provide scannable overviews as well as deep details.
Working with what you have
If you do not have automated data collection and analysis systems set up, taking a few hours to crunch numbers yourself could serve a similar purpose. Try to be as thorough as possible. As Cohen explained above, any aspect of your operations could show you how to drive further success.
Bonus focus
Of course, you probably do not want people to feel like they are merely a number — even if you are keeping a detailed account of all the time and resources you spend on each case. I find that my clients and colleagues alike truly appreciate a personal, compassionate approach — especially when I am talking about the numbers side of a case.
This appreciation does more than just make everyone happy. It also drives my business and makes nearly every aspect of my job easier.
Speaking of appreciation, thank you for reading. I hope the rest of your year is focused, efficient and successful.
