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 →
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 →
After grinding away for years in the law factory, you come to the desperate conclusion that the only way you are going to maintain your sanity is to go out on your own…. Continue reading →
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