Inflation is at a 30 year High. What that means for Your Law firm.
November 12, 2021
The most recent inflation numbers in the US are showing that as a result of accommodative monetary policy (low interest rates), and extraordinary fiscal policy (government stimulus programs) in response to the pandemic, inflation has climbed over 6% for the first time since 1991. Inflation affects how every company does business and also affects the family budgets of every family in the nation.
Understanding Inflation
The causes and effects of inflation are complex, but in the simplest terms inflation is the rate of increase of prices over time. As inflation increases, everything becomes more expensive. Said another way, it is a decrease in the value of a dollar. When the federal reserve creates money to keep interest rates down, the total money supply increases. With the increase in the number of dollars, each dollar is worth less, so it takes more dollars to purchase things. Inflation can be extremely deleterious to an economy, since it erodes the buying power of every member and business in a society.
Time Management Tips to Increase
Law Firm Productivity and Profitability
It is difficult to find a profession where the old expression “time is money” is more relevant than in the practice of law. Whether you bill by the hour or on a contingency basis, your ability to deliver quality legal work in a timely fashion is paramount to revenue generation and profitability. Continue reading →
While most people know that branding is important in marketing, few people know much about branding other than it identifies a product or service. Beyond that, they have little understanding of how to use branding to improve marketing potential. Knowing how your brand is perceived, and how to use it to increase the likelihood that clients will choose your brand over your competitors is an important part of marketing a law practice.
With the legal market being as competitive as it is, prospective clients are shopping for attorneys more than ever. For this reason it is critical that telephone inquiries be handled quickly and effectively. If you wait too long, the prospective client will probably retain someone else. If you handle the call improperly, you may lose a client you could have otherwise secured. These tips will help you improve your skills at turning inquiries into clients.
The importance of setting objectives in your practice cannot be overstated. Most attorneys are so driven by urgent matters, they lose sight of the big picture. One of my clients described his situation as having a time horizon of about two days. Needless to say his frustration level was high and satisfaction with his practice was low.
If you constantly operate in a reactive mode driven by urgency, your practice will experience highly random results. I speak with many attorneys who feel their practices are
January each year represents a new beginning. It is a time to examine your business over the previous year, assess what went right and what fell short of your expectations. And it is a time to make adjustments to your business plan and tactics to make the coming year better than the last. There are several aspects of your practice that you should examine to assess whether adjustments should be made:
Financial performance (Revenues, Expenses and Profit) vs. Goals
Most attorneys, whether solo or partners in large law firms, struggle with the decision about where to set their fees and retainers. Generally, I find they err on the low side, mostly out of an irrational fear that if they raise their rates by $5.00, all their clients will immediately fire them. Naturally, the result of this will be immediate financial ruin, bankruptcy, homelessness, and ultimately an unmarked grave in potter’s field. Continue reading →
A strategic marketing plan is vital to success in a competitive market. Unfortunately, many attorneys cringe when they think of marketing. They shrink from it partly because they aren’t sure it sends the right message about the profession, and partly because they are in unfamiliar territory. In a perfect world, they would automatically get calls from large clients with interesting cases all of whom pay their bills on time. Continue reading →
I was once in a meeting with a potential client where we were discussing whether it would be beneficial for him to engage me as an advisor. After spending a good deal of time talking about his current situation, his frustrations in moving forward, my qualifications, and the direction our consultations might take if he engaged me, he said to me, A consultant is a guy who looks at your watch and tells you what time it is. Why should I pay you a lot of money to tell me things I either already know or could figure out for myself? Continue reading →
Improve Law Firm Marketing Using Leveraged Networking
Leveraged Networking is a system that helps you get the most return for the time you invest networking. Most lawyers are convinced it is important to network, but they are not sure how to go about it. They go out and meet people, but they get few referrals. To be effective at networking it is vital to understand how and why it works. Whether you are a solo practitioner just starting your practice or a partner with a large firm with a million dollar practice, networking will be the life blood of your practice. Continue reading →
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