If you want to know how to make and keep small law firm profit, you’ve come to the right place. In this article, we’ll share with you tips and advice on generating not just more revenue, but more profit using techniques from the straight up financial but also including marketing, time management, mindset, and more.
In the spirit of this quote from Robert T. Kiyosaki, author of Rich Dad, Poor Dad,
It’s not how much money you make. It’s how much money you keep.
Our 2024 Summit experts have come together with their top Do’s and Don’ts to help you achieve just that: more money in your pocket as you own and run a small or boutique law firm.
So to get started in maximizing your small law firm profitability, read on.
About The Small Law BIG PROFIT Summit
But first, joining the Small Law BIG PROFIT Summit December 9-12 is going to be the best way to see these experts in action, get insights and action plans for the next year, and interact with your peers in a preview of the Scaling Small Law Together community.
With dedicated expert sessions and panel discussions dedicated to helping you to maximize profit in small law, you’ll also find expertise to help you with time management, hiring and HR, sales and marketing, setting up processes and automations and more.
Register to join the Small Law BIG PROFIT Summit at smalllawbigprofit.com.
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Do's and Don'ts for Small Law Firm Profit
Productivity Coach Sarah Reiff-Hekking
True Focus Coaching, Inc.
DO: Make sure that you are taking in work that you love to do and pays you well.
DON’T: Confuse taking every piece of business that comes your way and a full day with a profitable sustainable business. Do make sure that you are taking in work that you love to do and pays you well.
Business Development Coach Susan Gold
Susan Gold Coaching
DO: Align yourself with potential clients that have the need, ability to pay and willingness to pay. You can't help everyone, unless you are funded by other means, so you must become profitable, pay yourself and create a business development “ecosystem” that feeds the best clients to you.
Fractional Sales Leader and Coach Evan Polin
Polin Performance Group
DO have a clear understanding of your values and the things that motivate you so that you can build a firm and a lifestyle that you are happy with.
DON'T just try to make as much money as possible- if your firm is profitable but you don't have time to enjoy the lifestyle that makes you happy (or you don't enjoy working with your clients), the money won't matter.
Marketing Agency Founder Marc Apple
Forward Push | Law Firm Marketing
DO: Prioritize investing in cost-effective digital marketing strategies that provide long-term benefits.
DON’T: Chase every shiny marketing trend that comes with a high price tag but minimal long-term return.
Sales Coach Steve Fretzin
BE THAT LAWYER with FRETZIN
DO: Regularly review your firm’s expenses and cut unnecessary costs. Whether it’s software you’re not fully utilizing or overpriced vendors, trimming the fat can significantly improve your bottom line.
DON’T: Overlook the value of outsourcing non-billable tasks. Your time is too valuable to spend on admin work, bookkeeping, or marketing tasks that could be handled by experts. Focus on what you do best—serving your clients—and delegate the rest.
Financial Advisor Michael Schodrof
Alex Brown/Raymond James
DO: Do small things well ... manage your Cash in a fund that will pay you something, yet stay liquid and available.
DON’T: Avoid planning or think that you will get to it later. Make a plan now and modify the plan as the situation evolves.
Fractional CFO Walter Miller
Norman Professional Services
DO: Ask for help understanding how your practice turns time into dollars. It's a complex workflow that can always be improved.
DON’T: Think that every other practice owner has it all figured out. Running your own law firm can be lonely; reach out for help.
Branding Expert Laura Sauter
Agency Bel
DO: Be a good human first and remember your bedside manner. "People will forget what you said, and they’ll forget what you did, but they will never forget how you made them feel.” (Maya Angelou)
In branding, this rings true: it’s about far more than what people see; it’s about how you make them feel.
Law Firm Services Expert Ron Bockstahler
Amata Law Offices
DO: Invest in scalable, on-demand support services. This ensures that you only pay for the services you need when you need them, optimizing spending and maximizing profitability.
DON’T: Overextend by hiring full-time staff for all administrative tasks. Fixed overhead costs can drain resources during slower periods. Flexibility with on-demand services can help maintain financial health.
Profit First Expert and Fractional CFO Jessica Gonifas
Silver Peaks Accounting Services
DO: Know your numbers, review your financials monthly, focus on Profit First, just get started.
DON’T: Put your head in the sand and neglect your financials or beat yourself up if you don't have your financials house in order.
Systems Engineer and Consultant Belle Walker
Belleview Consulting
DO: Keep a big picture attitude in mind when designing your operations. It is too easy to optimize a small detail and unintentionally cause big pain down the line.
DON'T: Be penny wise and pound foolish.
Technology Expert Dan DeFay
NorthStar Technology Group
DO: Prioritize cybersecurity to protect your firm's finances. Small law firms often overlook the financial impact of data breaches, which can lead to costly lawsuits, lost clients, and reputational damage. Investing in preventative security measures helps you avoid these financial drains and keeps your hard-earned revenue secure.
DON'T: Underestimate the cost of inaction. It’s tempting to delay cybersecurity investments or view them as non-essential, especially for small practices with limited budgets. But the cost of a breach, both in immediate expenses and long-term damage to your reputation, far outweighs the cost of preventative measures. Failing to secure your firm’s data not only puts your earnings at risk but can also erode client trust, making it harder to keep the clients you’ve worked so hard to win.
Make & Keep Small Law Firm Profit: My Take
My background in investments coupled with years of experience working with small law firm owners leads me to this advice for you:
DO: Think like an investor. Understand the impact of ROI (Return on Investment) and how the way you spend your time and money can either turn into opportunities or just be time and money down the drain. Learn to think and act smart with where your time and money is going so that you can create profit, not run on a hamster wheel.
DON’T: Jeopardize your future by focusing solely on today’s billable hour. Yes, you want (and might need) the immediate revenue that comes with it. But you could also be investing that hour into something that will multiply your revenue or profit exponentially in the future.
Achieving more profitability in your small law firm isn’t just about working more hours. It's about making more from every hour you invest.
By focusing on the strategies shared by our experts including aligning your marketing with the right clients, managing your finances, and leveraging people and process that will allow you to scale, you can build a firm that’s successful, sustainable, and best of all... profitable.
Ready to turn these insights into action?
Get your access to the Small Law BIG PROFIT Summit. With expert advice, actionable plans, and panels of fellow law firm owners who've forged the path ahead... this is your chance to get onboard for More Profit and Less Stress!
Check out the details at smalllawbigprofit.com.
