Small law firms do not fail because they are small. If they are anything like most small businesses, they can fail due to insufficient working capital, lack of resources, inefficiency and poor leadership skills.
Contrary to popular thought, law firms generally do not fail due to competition or adverse market conditions but rather a lack of passion, vision and inefficiency are top contenders.
Consider these top reasons for failure and how to avoid them:
Lack of training
Investing in your employees is first and foremost. This begins with recruiting the right people. When you hire passionate staff and train them well, chances are they will want to succeed and help push your firm’s growth. Offering support and guidance to your staff is paramount. Provide regular feedback, positive reinforcement and reward staff when appropriate.
Having a strong vision for your firm and leading by example will help to instil the right behaviour in your team and keep your firm on the cutting edge. Ensure your core values are incorporated through all aspects of your firm, from your marketing efforts through to the service you provide to your clients.
Leaders should also understand that success often relies upon the need to quickly adapt to change and improve systems where necessary. Resisting change and refusing to keep up with new technologies will not only hurt your firm’s growth but can decrease your firm’s competitiveness in the market.
Focusing on the business elements of your firm is just as important as doing client work.
Think about your firm as an overall – how can you increase efficiency? Adopting automated processes for your billing, document handling and marketing is one place to start. Consider ways to improve client communication, i.e., streamlining how clients make enquiries and appointments.
Once you have developed a more thorough understanding of how your law firm operates in a business context, you can start to explore what opportunities are available to your firm.
Embracing technology is one way forward. Staying at the forefront of new technology enhances how your clients interact with your firm, cuts down admin time and human error.
The team at Zaliet have created the Service Portal to help your firm do just that. The Service Portal is designed to help your clients book an appointment, make a payment, read documents and make an enquiry – all in one place.