By Jared Correia, IndyBar Law Practice Management Consultant
Well, it’s almost 2023. And things are looking up. It has certainly been two long years.
But, in addition to looking back, the end of the year is also a great time for law firms to start looking to the future. The last business quarter of the year is an excellent time to prepare your law firm for a successful next year.
Now, most law firm owners kind of float on the stream, not giving much thought to how the firm operates beyond, “The money keeps coming in, so I guess we’re good.” But, there are a few things you can do to ensure your law firm is better suited to start in 2023.
Here is an overview:
1) Make revenue projections. Most law firms try to make as much money as possible. And, while that’s a reasonable approach, it’s not a goal. in itself. Yeah, I’d love to make $1 billion this year too – but is it likely? (Very unlikely, actually.) Creating revenue projections for the coming year is more about establishing within reason Where feasible income goals for the new year. (And, there’s nothing wrong with putting a little pressure on trying to stretch and do more than you think is possible.) Plus, it’s not that hard to do. Set your annual gross revenue goal, then add as many new cases as you need to reach that number, based on the average case value. Now, not only do you have a gross revenue goal, but you also have a pathway to achieve it, in terms of the number of cases you need to present on a weekly, monthly, and/or yearly basis.
2) Generate new marketing campaigns. Now, generating revenue projections should result in additional queries. Like, how are we going to achieve these case numbers? If you need to generate more cases to meet your revenue forecast, then you need to figure out how to do that. Are you going to double existing avenues or do you have to create new ones? At this point, if you don’t have a formal marketing program, now would be a good time to create one. If you have one, now would be a good time to modify it to add new marketing campaigns that will help you achieve your goals and keep your marketing efforts fresh.
3) Revise your budget. If you want to overhaul your marketing platform to increase your revenue based on the revenue projections you have set, why not increase your profit margin as well? Similarly, the end of the year is a good time to do a budget review to aim to make cost-saving changes in the new year. You can start with subscription tools, as these can add up, but don’t stop there. Make sure each line item is on the board.•
Jared is available for free to IndyBar members. Contact him at [email protected]