Best practices for building a smart law firm

The phrase smart law firm might bring to mind technology and streamlining tools, but those represent only the beginning. Modern law firms will embrace the future with new business models and strategic thinking for sustainable growth.

Smart growth

The smartest business leaders begin with real data. If you have existing clients, begin there. Understanding your current client base and their satisfaction level will help you make more informed decisions moving forward.

Once you have a clear picture of your current law firm reality, you can plan for the future in strategic ways by adding complementary practice areas, reaching out to a new subset of your current target market and more.

Thomson Reuters brings up some relevant food for thought around how you think about growth in your firm:

“Quantity or quality: when it comes to your firm’s work, which is more important for growth? Adding new clients or taking on additional matters can boost profits. Increasing the quantity of work can be a seductive pull. But, foundational to the growth of any organization is providing high-quality work.”

More clients and more work either means more of your time personally or a need to add staff. For most independent lawyers who seek a better work-life balance, the former become untenable quickly. Adding staff can make sense, but you should think through what that entails before diving in. Collaborating with other firms or working with contractors offers an opportunity to expand without the commitment of full-time staff.

Thinking in terms of higher quality work, on the other hand, can help you achieve growth without giving into hustle culture or longer hours. Can you expand your offerings to existing clients in a way that leads to more robust contracts, for example?

Strategic slowness

Growth does not have to happen overnight to lead to success. In fact, slow growth can help you carefully implement new processes and address any growing pains that happen along the way. If you try to expand every part of your business all at once, it can easily get out of hand.

Law Week Colorado recently published a piece on a concept called strategic slowness that could help a lot of independent lawyers and small law firms. They write:

“In a speed-driven business culture…a Stanford management professor is promoting a new watchword in that very outlet: slowness. Robert I. Sutton has drawn wide attention for his seemingly unlikely advice that leaders who want to propel forward their organizations should adopt a mantra of ‘strategic slowness.’ Forward-thinking law firm leaders searching for impactful, eye-catching ways to boost their struggling business models should not overlook this novel yet commonsense planning lens.”

Sutton points out that adopting a slower approach to business and growth can help law business owners:

  • Make better long-term decisions
  • Solve problems with more effectiveness and accuracy
  • Boost creativity
  • Proceed ethically
  • Reduce bias in decision-making
  • Improve working relationships by eliminating some friction and pressure
  • Deliver higher quality work to clients
  • Leave room for better mental and physical health

A slower pace might feel counterintuitive at first, but consider what’s truly important to you as you build your business. You have the ability to define your own success as a lawyer.

Manageable costs

Smart growth also means making carefully considered financial decisions, such as:

  • Choosing alternative office space that allows for lower overhead
  • Adopting only the tech tools that lead to greater efficiency and ease in your business
  • Outsourcing functions that require too much of your time and draw your focus away from core work
  • Reduce expenses like travel and meals by meeting virtually more often
  • Opt for a mixed marketing strategy that includes low-cost strategies in addition to paid advertising
  • Consider digital alternatives for items like business cards, correspondence and more

Working with an investment advisor or financial advisor can also help you make the most of your money as your small law firm grows.

Looking for a place to grow your small law firm sustainably and strategically? Reach out to us to schedule a tour of one of our shared office communities for lawyers in Denver and Las Vegas.