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Running a law firm is not the easiest business in the world. The legal world is complex and demanding and comes with a lot of risks and compliance.
But that shouldn’t get in the way of growing the firm and aspiring to be a leader in the industry.
The right growth strategies are important to increase profitability and create a strong business foundation to thrive in competitive markets.
Here are five strategies to support the growth of your law firm.
#1 Expand your location
Acquiring multiple geographical locations is an effective maneuver for any law firm wanting to expand its reach and drive sustainable growth. New locations allow you to grow your client base and your reputation. Always look for areas that would benefit from your presence and have a high potential growth rate.
#2 Diversify your services
Diversifying your services can be an effective and efficient way to grow your law firm. By considering the areas you can dive into across different industry verticals can help you evolve to a multidisciplinary practice and can serve your clients in more than one way, as well as driving in new clients.
#3 Automating your administrative tasks
A large portion of time spent in law firms is not with clients, but conducting the behind-the-scenes tasks that are not billable. By changing the way you work and embracing new, innovative technologies, you can create more efficient ways of working while saving money. This means you can focus more time and resources on delivering billable hours. For example, legal document automation can help to reduce the time spent creating contracts (and even the accidental human errors!) by using branded templated and pre-populated data.
#4 Restructure the firm
Restructuring your law firm can help eliminate areas of the business that are not necessary and free up space for more areas that will increase revenue. When restructuring any business, the most important first step is to evaluate the current structure. This not only includes personal but the business procedures, fee structures, operational elements, and IT infrastructure. This can be a huge, positive change for law firms that have outdated systems and processes. In recent years, technology has progressed to develop systems that are more accurate and efficient, optimizing operations and online file management systems.
#5 Mergers and Acquisitions
Mergers and acquisitions can fast track your business growth and profitably by joining forces with areas that you lack internally. This means you can quickly expand your client base, acquire new capabilities and skills, and even a fresh perspective. By merging with an existing, successful business you can build on each other’s strengths and fill the weak gaps. If you choose to acquire different areas of business, you can accelerate your growth with an already up and running business, rather than starting from scratch. Mergers and acquisitions are an excellent way to build business strength and competitive advantage.
There are many different ways to accelerate the growth of your law firm, depending on the time, money, and energy you are willing to invest and how quickly you want to reach your goals. Regardless of which strategies you choose from, you must have a clear goal and plan in place.
