5 sure fire strategies to increase law firm revenue
Law firms are under a lot of competition nowadays. On top of that, there’s the added challenge of having more law firms springing left and right. This makes competition in the legal industry even stiffer.
However, it’s essential for law firms to maintain their revenue-earning potential and profitability to survive. This may sound straightforward, but it takes a lot of hard work. After all, law firms also have to balance being a practiced profession, where quality is of utmost importance, while still earning an income.
This post will explore some strategies to help you increase your law firm’s revenue.
- Create a website
The legal industry today isn’t exempted from digitalization. This means when it comes to marketing, law firms will also have to strike the Internet. If your law firm doesn’t have a website yet, then you’re missing out on the potential clients you may reach. Remember the general rule that the more traffic and clients you have, mean a higher potential revenue.
So, if you don’t have one yet, then it’s about time for your firm to create a website with an attractive landing page. This helps increase your reach over the Internet, thereby also improving your firm’s trustworthiness and authority.
With that said, remember these tips when creating a law firm website:
- Make use of white space and avoid unnecessary visual clutter on your site.
- Keep your contact information easily accessible to your website visitors.
- Don’t overdo the use of images and other graphics.
- Take care of your existing clients
Bringing in new clients is always challenging for any business, your law firm included. So, when you already have a steady number of loyal clients, take care of them. It’s easier and cheaper to nurture existing clients than it is to work hard to gain new ones.
Moreover, when your existing clients are happy with your legal services, word-of-mouth marketing will do its magic. They’ll be more likely to recommend your law firm to their own family, friends, and other networks of connections. These are people who may be looking to hire a lawyer in your area.
Hence, existing clients have now become good referral sources as your revenue may increase with little marketing effort from your end.
- Look into new practice areas
Learning never stops. If you’ve been too focused on a single or minimal number of practice areas, then you may want to expand your reach. You can do this by submitting to further study and specialization to touch on other areas of law, you may not have been specializing in or catering to as a firm. Or, if you have several lawyers in your firm, then you can also hire those specializing in an area you haven’t yet covered.
When you expand your reach to other legal practices, you’re effectively increasing your client reach as well. Now you can cater to more clients, which you may have had to turn down in the past. As a result, your firm’s revenue potential significantly soars as well.
- Automate whatever you can
One of the advantages that law firms and other businesses have today is the advantage of technology. Use this strategically for your law firm by automating whatever you can.
When you automate, you’re reducing the physical time spent on doing repetitive and manual tasks which are costing you a lot of time. This includes the time that could’ve otherwise been spent with other profit-generating activities in your law firm, such as facing clients and preparing legal paperwork.
You can automate some facets of your law firm’s practice by using adequate software for your practice. You can use this for communicating with your clients, managing bills, payroll, and other facets of running a law firm.
- Cut down on unnecessary expenses
Perhaps there are areas in which you may have been overspending. Maximizing your law firm’s revenue necessarily entails cutting down on expenses.
For instance, you might have other lawyers who opt to start working from home during the pandemic. If this is the case, then you may no longer need to have a big an office as you do now. This can significantly lower your rent and expenses on other utilities.
If your law firm hasn’t been bringing in as much profit as is possible, then the sure-fire tips above will come in handy. Law firms thrive and survive, depending on their profitability, reputation, and quality. Start your new business year with a higher standard by applying the strategies above.