Every successful non-lawyer business transforms itself every few years in its continuing quest for growth. Small firms seldom do.
Law school stunted the thinking of most lawyers by telling them “you’re not a business person – you’re a professional,” inferring that a “business” was somehow slightly dirty and inferior to the professional firm. So most solo/small firm attorneys spend their careers working in “non-businesses.” They treat it like a job – come in, work hard, go home. They don’t plan for growth and change. They don’t plan for attracting new business – another legacy from law school – the “better mousetrap” theory of marketing – just do good work and clients will come. Even growth – hiring staff or associates – is resisted, and usually done only with reluctance, and resentment of the expense.
What’s the distinction?
It’s a job when the owner does all the work and is the center of everything, and when they’re gone, no business gets done.
The “legal business” has a”life” outside the lawyer. First, it has a clearly identifiable operating structure –
- “Externalized knowledge” – forms, checklists, procedures for all phases of firm operations, from office management to basic legal processes and functions
- An organized resource base of standardized “boilerplate” documents, letters, etc.
- At least one well-trained, quality staff member who facilitates and supports firm operations
- Technology adequate and fully functioning — a true network with server and backup, current (and legal) software and functional contact & client management and/or case management software
- Effective case, file and client management procedures and systems
Second, it has an active and clearly definable marketing program, consisting of:
- A complete and maintained client, former client and prospect database
- A basic marketing plan and list of targeted organizations and activities
- A documented base of active referral sources
- An effective website and web presence
- A documented list of firm marketing activities and organizational involvement
- Professionally managed finances – financial & billing software, accrual accounting, and a fully functioning collections management system
Every week I talk to skilled, experienced attorneys who are somewhere in the middle or late phase of their careers and are still at the “job” level, who want to transition, sell – or just keep the practice from killing them. I have only two solutions to offer: quit the job, or evolve it into a legal business. A job has little sales value; the legal business has much.
If you’re one of those attorneys, maybe it’s time that you explored going over to the “dark side” – building yourself a business that works for you, instead of just continuing to work hard. The payoff is considerable – now, and in the future, when you’re thinking about transitioning.