Solo and Small Law Firms – Where is the Revenue?
The story may be familiar, but it has to be told so all can learn from it.
One or two attorneys decided to leave the Big Firm and start they own. The registration, preparing the Article of Incorporation and such is just a piece of cake. Then the Clients and cases show up on the horizon and the need to generate more and more business to grow. Incredible hours are put into cases to make the Clients happy and the practice run.
Somehow the cash situation does not feel like being in line with the amount of work done. Something is off. Looking at the heart of the matter, you may see the following issues:
• Working on a client matter without a fully executed contract
• Not invoicing the Client for a long time, then when invoiced, you realize that the contract is not executed; or if executed, due to the long delay of invoicing the Client is renegotiating the due balance
• No proper timesheets showing your time on cases
• You pay all your bills but not invoicing for revenues
The “excuse” is usually something like “Between cases and lead generation, I don’t have time to deal with administrative matters.” Sounds familiar?
The consequences of not taking care of bookkeeping, tax, payroll, invoicing, appropriate web site updates are that you are working a lot but not gaining much. Also, if your bookkeeping and accounting is lagging behind, how can taxes, invoicing or proposal estimating be completed in a timely and precise matter?
Time is what we sell – no question about it. An attorney with a busy schedule and lot of competing priorities (including lead generation) can’t spend hours every week with business administration. But being busy and successful with your clients’ cases should not cost you – it should earn you more.
So, what advice can be given to someone in this situation? When you work a lot, assume you earn accordingly, but you don’t because you can’t do it all? Why should you do it all?
Go to those working with small law firms. They are also professionals – of a different field. Be honest and state where you need assistance. The sooner you do it, the sooner your firm will be up to date and profitable again. It is not only about your bottom line – it is also about your peace of mind.
My name is Sylvia Pacher, managing director for the Virtual Corporate Services team, and I invite you to discover what a virtual corporate service group can take off of your shoulder to make you more billable, profitable, and probably happier because you can focus on what you do best. We can do everything else. Please let me know if you have questions – I am always here to assist you with making your business grow bigger, stronger, more profitable and competitive. Please email me personally: spacher@myvirtualcorporate.com
One or two attorneys decided to leave the Big Firm and start they own. The registration, preparing the Article of Incorporation and such is just a piece of cake. Then the Clients and cases show up on the horizon and the need to generate more and more business to grow. Incredible hours are put into cases to make the Clients happy and the practice run.
Somehow the cash situation does not feel like being in line with the amount of work done. Something is off. Looking at the heart of the matter, you may see the following issues:
• Working on a client matter without a fully executed contract
• Not invoicing the Client for a long time, then when invoiced, you realize that the contract is not executed; or if executed, due to the long delay of invoicing the Client is renegotiating the due balance
• No proper timesheets showing your time on cases
• You pay all your bills but not invoicing for revenues
The “excuse” is usually something like “Between cases and lead generation, I don’t have time to deal with administrative matters.” Sounds familiar?
The consequences of not taking care of bookkeeping, tax, payroll, invoicing, appropriate web site updates are that you are working a lot but not gaining much. Also, if your bookkeeping and accounting is lagging behind, how can taxes, invoicing or proposal estimating be completed in a timely and precise matter?
Time is what we sell – no question about it. An attorney with a busy schedule and lot of competing priorities (including lead generation) can’t spend hours every week with business administration. But being busy and successful with your clients’ cases should not cost you – it should earn you more.
So, what advice can be given to someone in this situation? When you work a lot, assume you earn accordingly, but you don’t because you can’t do it all? Why should you do it all?
Go to those working with small law firms. They are also professionals – of a different field. Be honest and state where you need assistance. The sooner you do it, the sooner your firm will be up to date and profitable again. It is not only about your bottom line – it is also about your peace of mind.
My name is Sylvia Pacher, managing director for the Virtual Corporate Services team, and I invite you to discover what a virtual corporate service group can take off of your shoulder to make you more billable, profitable, and probably happier because you can focus on what you do best. We can do everything else. Please let me know if you have questions – I am always here to assist you with making your business grow bigger, stronger, more profitable and competitive. Please email me personally: spacher@myvirtualcorporate.com
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