The Challenges Of Running A Small Law Firm In The 21st Century
Not only do you need to be an excellent lawyer... but you're also burdened with running a small business.
In today’s marketplace, with shifting client expectations and increased competitive pressures, it’s harder now to find the right balance between practicing law and running a small business.
The good news is that you’re very good at being a “lawyer.” The work you put in during law school and your years of practice have given you a solid foundation. You know how to find the right law for your case, and you know how to interpret the law and apply it to the facts. In your early years of practice, you figured out how to get up to speed quickly on an issue, complete due diligence, and manage a matter. You’ve improved how you do these things with each matter you’ve worked. That’s the art and science of practicing law, and it’s the reason you’re considered a skilled professional.
The tasks you perform as an attorney are essential and always will be. It’s apparent that not only do you need to be an excellent lawyer… but you’re also burdened with running a small business.
As an attorney, you sell your advice and expertise. As a small business owner, you also have overhead, staffing costs, and administrative responsibilities. If you’re not practicing law, you’re not making money. But managing the increasingly complicated operational side of your firm takes you away from the practice of law. With clients demanding more, attorneys are saddled with more administrative tasks. And while these tasks are essential to the success of your business, it’s the practice of law that creates revenue.
Running a profitable business takes other skills, such as managing finances, billing, and collections. When you’re running a small business, you’re actually doing a lot more than practicing law. You’re also thinking about things like budgeting, staff management, and business development. Now, larger firms have entire teams that take care of these things. But attorneys in smaller firms often have to do it all by themselves.
In the 2016 State of the US Small Law Firm Survey done by Thomson Reuters, 40% of an attorney’s time is spent on activities other than the practice of law. If you’re not practicing law and billing your hours, you’re not making money. The common denominator for all of us is: Time = Money. Unfortunately, as a small business owner, you have to spend a lot of time doing these administrative tasks to keep the business profitable and stay afloat.
But what if you could reduce the time you spend on these necessary administrative tasks and get back to doing what you love, practicing law?
That’s the reality of today’s Modern Practice.
By pulling together the practice of law with effective business processes, you can streamline your operations to eliminate unnecessary operational overhead. You’ll maximize your firm’s productivity to create and maintain a competitive advantage over your peers in the market.
Want some help ensuring you have more time to focus on practicing law and less time on administrative tasks? Watch the Modern Practice webcast to get valuable tips to streamline your practice and drive towards a profitable future.
