As legal accounting specialists, an area we understand deeply is what drives profitability and growth in your practice. As with any business, practice profitability is fundamental to long term viability.
Growth can mean different things to each individual practice. When you consider growth, it might mean growth in the profitability of your practice, increasing fee earners and other employees that support them, or expanding or altering your service platforms.
Before thinking about how to grow your practice, it is important to set goals so that you can then develop the strategies to reach these goals.
Four ways to grow your practice include:
1. Increase the number of clients
Not only might you want to increase the number of clients but be specific about the type of client that is best for your practice.
2. Increase the number of times they return
Think about how often your clients need your services, and then how often they engage your services. If there is a gap, there may be strategies you can put in place to have them engage your services on a more regular basis.
3. Increase the average value of each matter
Your clients may want and need more services so there may be an opportunity for you to increase the number of touch points with clients, which in turn, increases the average spend with your legal practice. The aim is to understand exactly what the clients needs are and make sure you cater for them.
4. Increase the effectiveness of practice processes
The other side of growth is in the systems and processes required to deliver the service. Undertake a review of your practice processes and look for efficiencies – what do your lawyers do that they don’t need to do, that your junior or administration staff can assist them with ? Which processes are not required, and for those that are required, how can these be improved?
A SWOT Analysis is a great tool to assist you analyse your practice. By critically analysing and understanding your practice, you can prepare an action plan that is improvement focussed.
Using a SWOT analysis will help you understand:
- your practices current strengths & weaknesses
- ·your practices future opportunities & threats
Once you have completed your SWOT, you will have the foundations to start building your plan for growth.
Need help developing your strategies for growth? Contact the team at Cutcher & Neale today.
