Increasing practice revenue can be challenging for a solo attorney. When you spend your days handling countless client-related tasks, as well as the administrative responsibilities of the practice, the challenge of bringing in more money can be a bit overwhelming. But how will you ever grow your solo law firm without taking the steps to improve revenue?
There are numerous strategies and steps that solo practitioners can take to increase the money flowing into the firm. Keep reading to explore some ways to grow your law practice revenue earnings.
A successful solo practice needs to have effective practice management tools in place to handle day-to-day responsibilities. If you are running your practice from a stack of notebooks and no standard process, you are asking for trouble down the line.
A practice management system involves a documented routine that can be done the same way regardless of who is handling the task. A solo practitioner only has so much time in a day to complete all that needs to be done. An efficient practice management system helps you stay organized, so you can better manage your time. It will also make the delegation of tasks easier when you are ready to grow your firm.
Current clients are a great resource for new business and increased revenue, but cultivating these relationships requires excellent client services. Make sure you are exceeding client expectations by communicating regularly and providing top-notch representation.
Happy clients become repeat clients. They also refer your law firm to others in need of legal services. By establishing exceptional customer service within your firm, you develop a positive reputation within your legal community and long-term relationships with your clients. A good reputation means repeat business and client referrals, which leads to greater revenue.
How do you know if your clients are happy? Feedback is a great way to gauge the level of client service your solo law firm is providing. Implement a system where clients can quickly and easily provide you with their impressions of your services, both positive and negative.
Ask clients with positive responses to write reviews, but don’t disregard the negative comments. Use them to identify shortcomings within your firm and work to correct them.
Every law firm needs a marketing plan, even solo practices. First, look over your finances and try to establish a marketing budget. Once you know how much you can afford, you can better strategize the best ways to get your firm name out. Maybe you need to upgrade your website or update that blog with no posts. If you can afford it, a professional marketing expert may be an option.
If you are on a limited budget, as many solo law firms are, look into some free marketing techniques, like joining organizations within your community or writing guest posts for websites related to your practice area.
There are numerous options out there to fit all budgets, but you have to put in the effort. A solo law firm does not become successful without a plan. You need to identify ideal clients and create a marketing strategy to reach them if you are going to increase revenue.
Far too many solo law practices miss out on revenue opportunities by not capturing all of their billable time. If you are procrastinating with time tracking, waiting until the end of the week or the billing cycle to record your time, you are probably missing out on thousands annually.
The memory is unreliable, and you are not going to accurately recall the details of a task you completed weeks ago. To be properly compensated for all of your billable time, you need to track as soon as you complete a task.
A convenient app, like the one offered by the TimeSolv legal billing system, allows you to track time from the convenience of your smartphone or mobile device. Even when there’s no Wi-Fi available, you can track your time and it will sync with your office system once you have internet service.
Raise Your Rates
The quickest way to increase revenue is to increase your billing rates. When was the last time you considered raising your rates? If wasn’t within the last year, you are overdue.
Think of it this way. Every year that you practice law is one more year of expertise that you offer your clients. In addition, the cost of living increases annually. If you were working as a law firm employee, you would likely get a salary review once a year, why not do it for yourself?
Potential clients often perceive more expensive services as superior to less costly options… and clients who want the best are willing to pay for it. You don’t have to implement a huge increase. Even a small change can bring higher-paying clients and make a difference in your firm’s revenue.
Improve Your Billing Process
How is your firm’s current billing process? If it’s convoluted and time-consuming, you need to make a change. After all, there is no revenue without sending invoices. Late and inaccurate invoices are the quickest way to undercut profits.
TimeSolv streamlines the billing process, so you can quickly and efficiently turn tracked time into customized invoices. With an effective billing process in place, you can prevent inaccuracies while promoting quicker client payments, and quicker payments translate into greater revenue.
Review Your expenses
Another aspect of increasing revenue is cutting back on the money going out of your firm. You should be reviewing your law firm expenses on a regular basis to find unnecessary costs. If you find that you are paying for things you could do without, cut it off.
For example, are you renting big expensive office space when you could really run your office virtually? Depending on the specifics of your solo firm, switching to a virtual office could bring a huge financial benefit.
Take the Steps to Increase Revenue Earnings for Your Solo Law Firm
There are numerous ways to increase revenue earnings for your solo law firm. Try implementing one or two of them and watch for revenue growth. To learn more about TimeSolv, click here for a free 30-day trial.
About Erika Winston:
Erika Winston is a freelance writer with a passion for law. Through her business, Personal Touch Edits, she helps legal professionals deliver effective written messages. Erika is a regular contributor to TimeSolv and a variety of other publications.