The word “small” may portray that handling a firm or business would be a piece of cake. But it is not.
If you are the owner of a small firm or a startup, then you know. Are you lost about where to start with your small firm? Well, buckle up because you are here for a long ride.
We are here with a guide to help you manage your law firm.
We will explore the importance of legal billing services in legal management. We will also discuss which management software can streamline your workflow process.
So, let’s start with a breakdown on how to manage a small law firm.
A Management Guide For A Small Law Firm
Build A Highly Skilled Team
The first and foremost step is to hire the right category of experts for your team.
Distribute roles equally among the new hire, no one individual can take on more than one role. Also, assign them tasks that they are qualified to do, this way you can avoid errors.
Another step you could take is invest in your current team’s professional growth. Encourage them to continue their legal education. Provide hands-on training on new implementations; such as legal project management software. Also, while reviewing the strengths, try to offer constructive feedback.
How Do I Build A Strong Team For My Law Firm?
Keep a budget for the development opportunities.
Pick senior team members to supervise their junior teammates. Think about it this way: you are encouraging your team to broaden their horizons, which in turn gives you better productivity and openness to changes.
Revise Your Financial Health & Budget
Having a financial plan is a life and death scenario in a small law firm. You have to know the ins and outs of cash flow and how much money you are investing in a certain period of time.
You have to monitor and review your revenue, operational costs, and profit margins to identify areas of improvement. You could use a legal spend management software to see the trend and keep track of your costs.
Creating a detailed budget plan using a billing tool helps follow strict spending budgets and watch out for the firm’s accounts receivable management.
Organize the Payment Structures
It’s time to establish the payment plans you want to charge your clients. Chances are a small law firm has limited resources. Thus, you need to set the ideal pricing and payment structure.
Offer many flexible and transparent pricing models, be it hourly rates, fixed fees, contingency fees, or retainers fees. These plans are based on the complexity of the case and the client needs.
Laying out the option of credit cards or online payments will encourage clients to complete their payments within deadlines.
Pricing plays a big role in bringing a lead. The best way to deal with this is to offer value for the price.
Collect Client FeedBack
Your small law firm’s management approach should be client-oriented. After all, positive word-of-mouth and reviews on corporate platforms (e.g., Clutch, Trust Pilot) matter most to leaders and businesses all over the world.
When you are hiring a team of experts, ensure that they have exceptional customer service skills.
Moreover, the best way to understand your client is by conducting a client satisfaction survey that helps you know what a client prefers and where they are unhappy.
Based on the answers, you can improve your service delivery. Use a legal case management software to centralize your reports, data, and client feedback for better review.
Case Scenario:
A client is having issues with the legal billing service at your firm, such as the pricing model provided is not ideal for them as of now because of some unprecedented issue.
As a firm, you need to hear this out and make an exception for the client.
Boost Client Experience
There are three things that clients expect a firm to commit to when joining hands with them.
- Strong Communication
- Transparent Billing
- Tailored Services
To improve and maintain strong communication between client and service provider, a small law firm can implement several tools even within budget restriction, such as a free legal case management software.
The best way to understand what your clients need is by regularly checking up on them. Lastly, providing detailed and clear invoices keeps clients reassured regarding no hidden fees.
Standard Operating Procedures (SOP)
Standard operating procedures (SOP) assists the company with performing their assigned tasks effectively without making any costly mistakes. An SOP is meant to ensure that all clients are receiving the same quality standard legal service.
Any small to big task in your small law firm should have a written SOP that each member should know.
Having such documentation helps firms show their compliance with regulations such as the HIPAA (health insurance Portability and Accountability Act of 1996) and stay safe from future audits.
Establish SMART Goals
At first, you need to set Specific, Measurable, Achievable, Relevant, and Time-bound (SMART) goals. From revenue growth to team expansion, plan them all down; make sure to keep all your goals SMART.
Set quarterly milestones, keep a tracking system, and let the team know about the goals. Communicating transparently is key to building trust and collaboration among team members.
Lastly, being adaptable is very important.
Be open to new ideas, strategies, and tools in order to stay up-to-date with trends. This enhances a firm’s operations and eventually impacts the results positively.
Redefine Your Marketing Strategy
Then, shift your focus on your marketing strategy. A small law firm needs budget-friendly actions. Lucky for you, marketing doesn’t have to cost much. Your marketing needs to be consistent and targeted; here is a way to go about this:
- Search Engine Optimization (SEO): With effective SEO, you can optimize your website and bring in organic traffic.
- Content Marketing: Publish SEO-optimized blogs and case studies on topics that resonate with your audience.
- Social Media Presence: Share client testimonials, celebrate success stories, and give out legal tips on social platforms such as Facebook and LinkedIn.
- Email Marketing: Establish a newsletter that informs readers of your firm’s updates and valuable insights. Share that to all your current and prospective clients.
Focus on Streamlining Workflow
When establishing a small law firm, there are many management aspects that can be improved with the help of technology. First, identify which task takes up most of your billable hours. Streamline that task with the help of a legal workflow automation software.
Investing in updated technology is bound to minimize manual work. It also makes time for employees to focus on important tasks.
Attention! Try to keep these tools updated:
- Case Management Tools: Keep your firm tiptop and efficient.
- Legal Billing and Payments: This encourages on-time payments.
- Document Automation: Saves time in generating documents.
- Cybersecurity Solutions: This tool ensures all-time client data security.
Monitor and Evaluate
Now, you have taken well-planned steps to manage your small business; however, you cannot sit at that.
We cannot overstress how your small law firm has to prioritize tasks that will bring in leads and increase billable client hours. Furthermore, you need to perform quality checks on the firm’s performance with the help of KPIs.
By monitoring the work processes, you can identify the strong points and weaknesses in the strategies. After studying it, you can make improvements accordingly.
Future Legal Trends
Once you have gotten the hang of managing the firm, things don’t end here. The world is evolving every day, and to stay in competition, you and your firm need to keep your eyes and ears open for industry changes and trends.
Artificial Intelligence (AI), a hot and controversial topic around the globe. Some say it will take over the world; others say we need to shape it in a way that it doesn’t take over an employee’s job.
Legal Process Outsourcing (LPO) has many legal firms hiring virtual assistants to free lawyers from some tasks. This way lawyers have time to practice and focus on their cases.
Mobile applications are used to remain in contact with clients; however, security concerns arise then. No worries! There is always a more secure option out there if you keep an eye out.
Put Together a Growth Plan
How To Do It?
Before getting into it, we would like to bring to your attention that your business plan has to be updated at least once a year to increase your competitive advantage.
What should your growth plan have?
- Identify your target market,
- Inform you regarding current client satisfaction levels,
- Establish new strategies for attracting new clients, and
- Sketch out your short and long-term goals
Set Goals
So, you have to start by setting clear goals for your legal practice.
Small law firms tend to lean towards more of an informal approach. Whether you are a small or large firm, that doesn’t matter. What should matter is what best aligns with your preferences and needs.
To keep the balance it is best you have a mix of short term (4-6 months) and long term (3-5 years) goals.
It is important that you are willing to adjust your goals overtime. As you work your way into your goals, new opportunities may arise, shifting your focus to a new goal. This change is alright as long as you are satisfied with the output it brings for your firm.
Analyze Growth Opportunities
When assessing growth opportunities, a law firm should have a profit margin of 40% to 50%. Furthermore, with the right strategy, that form can unlock a lot of potential.
Just know that you need to be resolute in your growth and not get carried away. You will have to put in your best in all areas of your firm: team development, financial planning, and invest in marketing.
Invest in Digital Marketing
| SEO | You need to leverage SEO to make your firm’s website more visible to potential clients. |
| Website Design | Applying technical creatives will create an attractive and high-performance website.Potential clients love a well designed website. |
| Branding | Publishing good, share-worthy content on your site will catch the attention of prospective clients.Producing a powerful brand takes time, commitment and consistency. |
| Lead Generation | For a steady stream of new clients, you need to maintain a constant flow of attorneys lead generation every month.There is always a hidden opportunity to achieve growth goals. |
Commit To Your Management Strategy
Having ambitious financial goals and making strategic investments is the key to unlocking a firm’s full potential.
Small law firm owners need to challenge their own growth instead of sticking to “just getting by” as advised by the famous legal industry expert, Moshe Amsel.
TEDTalk: Outsourcing and Automation in a Law Firm
Outsourcing and Automation-this combination can optimize your small law firm’s growth process by bringing in more cases and expanding the client base.
Legal process outsourcing is saving business owners when in tight spots. It takes repetitive and administrative tasks off your plate. For instance, outsourcing legal research gives lawyers free time to focus on more important matters and ultimately improves client experience.
Legal workflow automation is the more advanced way of dealing with manual tasks. With automation, you can streamline processes and have quicker response times.
Both outsourcing and automation help minimize the risk of errors and ensure accuracy and consistency. All of this while maintaining the quality standard of output and still being within budget.
Parting Thoughts
Managing a small law firm is not as easy as it may seem. But now worries, we have got you covered. From building your team of experts, setting your goals, to implementing your management strategy and keeping track of it.
It’s all about effort, commitment and consistency. Establish a strong, structured goals plan but be open to adjustments and improvements. After all, staying up-to-date with trends and innovations is vital in the competitive legal industry.
Outsource legal services and utilize various management tools to automate your workflow process
End your hesitation by being fully prepared before joining the game of survival.
Frequently Asked Questions
What are the essential steps to managing a small law firm?
- Build a highly skilled team
- Revise your financials
- Organize your payment structures
- Gather client feedback
- Boost client experience
- Establish SOPs
- Establish SMART goals
- Refine your marketing strategies
- Streamline workflow
- Monitor and evaluate
- Keep up with trends
How can I improve client management in my small law firm?
- Prioritize clear communication
- Maintain a proactive client engagement
- Set up clear goals and objectives
- Utilize modern technology to streamline processes
- Collect client feedback and tailor processes as needed to build trust.
- You can use legal CRM software to boost your efforts to establish strong client relationships.
What are the best practices for law firm financial management?
- Keep track of your finances and manage expenses.
- Improve legal billing services and provide alternative payment options.
- Invest in legal software and integrate the system thoroughly.
Rafia Alam Rowshni delivers a unique combination of legal knowledge and content creation talent using SEO Tools and SERP analysis. She has a solid background in public health and legal services and knows the complexities of the legal world. She can translate complex subjects into simple, concise, and entertaining information that audiences can actually use.
