Managing a law firm, just like an organization, requires you to make good decisions. You need to allocate the available resources properly and design a system that can raise productivity in your firm.
Finance marketing activities are also necessary. Besides, you will have to make payments on various malpractice premiums. Here are tips to help you improve your firm’s finances and revenue stream:
1. Identifying your Benchmarks
You can start this by evaluating the revenue and expense stream at your firm. If one of the two surpasses the other, then you can start making crucial changes. Identify what you want to maximize or reduce them.
Most law firms aim at reducing the cost per client metric. Others aim at raising profitability by generating good quality leads. You should always have a realistic number that you should aim at regardless of your goals.
2. Improving the Billing System
Although attorneys are the main pillars of law firms because they generate revenue, it is your billing system that can put your financials in the right place. Not having an effective system for tracking billing hours as well unpaid invoices will mean that your attorneys will not be paid for their actual work.
3. Automate and Outsource
Your firm will have to spend money on assistants and paralegals considering the involved amount of work. For effective delivery of services and management of money, you will have to outsource various activities such as marketing and legal research.