The 3 Step Growth Accelerator Plan for Small Law Firms (That Will Work Even During Lockdown)
It’s still possible to get new clients, and increase your fee income and profits from existing clients, during this lockdown.
Individuals and businesses still need your help, maybe more than ever. But you can only help them if you can:
(a) attract them to your firm (rather than them going to your competitors);
(b) convert them into paying clients (at the right fees); and
(c) do the work profitably so that you can continue to pay your team, your overheads, and yourself.
If you want to grow, then all these three elements need to be working efficiently in your firm or practice. If any one is missing or underperforming, you’ll be on a downward curve.
But here’s the most important thing…
As everything around us continues to change, we must change too.
Which means you need to adapt the way you attract and convert new clients, and how you maximise profits from existing clients, to the current situation.
This involves a 3 step process: analysing the needs of your firm or legal practice, identifying what you should adapt, and then making the right changes.
Step 1: Identify where you are on the Practice Growth Scale and where you want to be
The Profitable Practice Scale measures two key indicators: your incoming work (client instructions) and your profits.
Where are you on this Scale, and where do you want to be?
Your answer will tell you which strategies will enable you to grow. At the lower levels of the Scale, marketing and conversion strategies should be your priority because you need to attract more client enquiries and convert them at the right fees. But as you progress up the Scale the ‘maximise’ strategies become critical because you’ll want to increase the value of each client so you can boost your fee income and profits without constantly needing new clients.
Step 2: Assess what’s stopping you from moving up the Practice Growth Scale
If you’re not getting as many clients as you want, or are working too hard for the income you’re making, it’s highly likely that at least one of the 3 Essential Elements of a successful practice (Attract, Convert, Maximise) is not functioning properly in your business.
You can assess this by applying a traffic light rating to each element to see if it’s red (not getting the results you want), amber (on ‘go slow’ or costing too much time and money) or green (getting the right results at an acceptable investment of time and money).
Where do you currently have red or amber lights?
Step 3: Apply the right ‘Accelerators’ so you can turn red and amber lights to green (and increase clients, fee income, and profits)
To accelerate getting to a green light in each area you can install specific ‘Accelerators’ into your practice. Think of these as projects or strategies that you need to implement. Which ones are right for you will depend on what your firm needs most. For example:
- If you don’t have enough enquiries from ideal clients, you may need the Accelerator called ‘Magnetise Clients’ which means using the right kinds of marketing to attract them.
- If you find that potential clients are pushing back on your fees, you need a way to ‘Neutralise Price Resistance’ which involves asking the right questions and saying the right things so clients can see the value of your services.
- If you find you’re working hard but not seeing the financial results you want the answer may be the Accelerator called ‘Mine The Client Gold’ which will enable you to get more instructions from existing clients.
Depending on where you are on the Profitable Practice Scale, and where you have ‘red’ or ‘amber’ lights, you may need some or all of these three Accelerators. You’ll likely need others too – there are nine Accelerators which will benefit most firms or practices.
The important thing is to install the right Accelerators into your firm or practice, in the right order. Otherwise you risk wasting your time, energy and financial resources and will still have red or amber lights slowing you down or stopping you from achieving your goals.
You can get more help identifying exactly what your firm needs in order to have more clients, fee income, and profits in one of my free online planning sessions. Register at www.thebusinessinstructor.com/plan
About the Author
Michelle is also the author of the No.1 Best-Selling Book ‘The Client Magnet Strategy for Lawyers’ which is available on Amazon, or you can download the first four chapters FREE at www.thebusinessinstructor.com/book