Episode #19 How To Fix The Top 5 Challenges Law Firms Face

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Hello and thank you for joining us today on the Profit Scale Thrive Podcast, where we guide attorneys to overflowing profits, scaled growth, and thriving lives. I am your host, Kelley Brubaker.

We have a secret though - this is a special place because we don't work with every law firm owner, we support the solo attorneys who are single parents because we know the special challenges you face, and we know the business advice out there is not always practical for you and your firm.

Each week we will talk about things that will give you the insight you need to stop feeling overwhelmed, to gain back your confidence, and to finally enjoy your law firm and your life again.

Podcast Episode #19: How To Fix The Top 5 Challenges Law Firms Face

Hello and thanks for joining me today for podcast episode number 19. 

Lawyers have always been known for sticking to tradition. It's no surprise, given that much of law is based on what's happened in the past. But while this mindset is great for practicing law, it's not so great for running a business. As owners of small law firms, it's crucial to be aware of the challenges that can slow down your business or stop it from growing. Here are 5 of the biggest challenges lawyers face when running their law firms, and how you can overcome them.

Challenge #1: "Getting New Clients, Especially Good Ones"

Every law firm needs new clients to succeed and stay competitive. But it's not just about getting new clients, it's about getting good ones. To do this, a law firm needs to let its unique personality shine through. One way to do this is with a great website. A website can help a law firm reach more people and let potential clients get to know them through reviews, videos, and articles. This can help the firm show up in search engine results, turning potential clients into actual ones.

Additional Solutions: 

1. Define Your Ideal Client: Understand who your ideal client is. What type of legal issues are they facing? What is their demographic? What are their values? This will help you target your marketing efforts more effectively.
   
2. Improve Your Website: Your website is often the first impression potential clients have of your firm. Make sure it's professional, easy to navigate, and reflects your firm's personality. Include client testimonials, case studies, and informative content that positions your firm as an expert in your field.
   
3. Content Marketing: Regularly publish high-quality, relevant content on your website. This could be blog posts, articles, videos, or podcasts. This not only helps with search engine optimization (SEO), but also establishes your firm as a thought leader in your area of law.
   
4. SEO: Optimize your website for search engines. This involves using relevant keywords in your content, having a mobile-friendly website, and ensuring your site loads quickly. This can help your firm show up in search engine results when potential clients are looking for legal services.
   
5. Networking: Attend industry events, join local business groups, and engage with your community. This can help you meet potential clients and get referrals.
   
6. Client Experience: Provide excellent service to your existing clients. Happy clients are more likely to refer others to your firm.
   
7. Social Media: Use social media platforms to engage with your audience, share your content, and promote your services. This can help you reach a wider audience and attract more potential clients.

Remember, attracting quality clients is a long-term strategy that requires consistent effort. But by taking these steps, you can significantly improve your firm's client acquisition.

Challenge #2: "Clients Expect More, But Don't Want to Pay More"

Many law firms are having trouble staying competitive with their fees. This is partly because the internet makes it easy to compare prices, and partly because of the rise of DIY legal sites like LegalZoom. More than ever, law firms are having to lower their fees or risk losing business. This can be especially hard for smaller law firms. But by focusing on reducing overhead costs and maximizing billing time, you can keep your prices competitive.

Additional Solutions: 

1. Value-Based Pricing: Instead of charging by the hour, consider value-based pricing where you charge based on the value you provide to the client. This can make your services more attractive to clients as they know upfront what they will be paying for.
   
2. Efficiency Improvements: Look for ways to streamline your operations and reduce overhead costs. This could involve automating routine tasks, outsourcing non-core activities, or investing in technology that improves productivity.
   
3. Specialization: By specializing in a specific area of law, you can position your firm as an expert in that field. This can allow you to charge a premium for your services.
   
4. Transparent Billing: Be transparent about your fees and billing practices. This can help build trust with your clients and make them more willing to pay for your services.
   
5. Alternative Fee Arrangements: Consider offering alternative fee arrangements, such as flat fees for certain services, contingency fees, or subscription-based pricing. This can make your services more affordable and attractive to clients.
   
6. Client Education: Educate your clients about the value of your services and the costs involved in providing them. This can help them understand why your fees are what they are.
   
7. Quality Service: Focus on providing high-quality service to your clients. This can help you retain clients and get referrals, reducing the need to constantly acquire new clients.

By implementing these strategies, you can help your firm stay competitive, even in a market where clients are expecting more for less.

Challenge #3: "Too Much Time on Admin, Not Enough on Law"

Like many small businesses, small law firms often have to do a lot of non-legal admin tasks. This isn't necessarily a bad thing, but when too much time is spent on non-billable tasks, it can stop a law firm from growing. It's important to focus on how to make the most of the time spent on all tasks in the law firm and prioritize streamlining processes.

Additional Solutions: 

1. Delegate or Outsource: Consider delegating administrative tasks to support staff or outsourcing them to a virtual assistant or an administrative services company. This can free up more time for you to focus on billable work.
   
2. Invest in Technology: Use technology to automate routine tasks. For example, there are software solutions available that can automate time tracking, billing, document management, and other administrative tasks.
   
3. Process Improvement: Review your firm's processes and look for ways to make them more efficient. This could involve eliminating unnecessary steps, reducing duplication of effort, or streamlining communication.
   
4. Training: Ensure that all staff members are adequately trained in administrative tasks. This can help reduce errors and improve efficiency.
   
5. Time Management: Use time management techniques to prioritize tasks and manage your time more effectively. This could involve setting specific goals for each day, using a task management tool, or blocking out time for specific tasks.
   
6. Hire a Practice Manager: If your firm is large enough, it may be worthwhile to hire a practice manager. This person can handle the administrative side of the business, allowing you to focus on practicing law.

By implementing these strategies, you can reduce the amount of time spent on administrative tasks and focus more on billable work, helping your firm to grow.

Challenge #4: "Too Many Legal Tech Options"

In the past, the legal industry has been slow to adopt new technology. But the pandemic has forced many industries, including law, to rely more on technology. This has led to great strides in legal technology, but it's also left many law firms feeling overwhelmed by all the options. To overcome this, law firms need to think about what their specific needs are and then explore the options that can meet those needs.

Additional Solutions: 

1. Identify Your Needs: Start by identifying what your specific needs are. What tasks are you hoping to automate or streamline? What problems are you trying to solve? This will help you narrow down your options and focus on the technologies that can meet your needs.
   
2. Do Your Research: Once you've identified your needs, do your research. Look for reviews and case studies of different technologies. Attend webinars or demos to see the technology in action.
   
3. Start Small: Don't feel like you have to adopt all the latest technologies at once. Start with one or two that can have the biggest impact on your practice. Once you're comfortable with those, you can consider adopting more.
   
4. Ask for Help: Reach out to colleagues or industry experts for recommendations. They can provide valuable insights based on their own experiences.
   
5. Training: Make sure you and your staff are properly trained on any new technology you adopt. This will help ensure you're getting the most out of your investment.
   
6. Evaluate Regularly: Technology is constantly evolving, so it's important to regularly evaluate whether the tools you're using are still meeting your needs. If they're not, don't be afraid to switch to something else.

By taking a strategic approach to adopting legal technology, you can overcome the overwhelm and make the most of the tools available to you.

Challenge #5: "Managing Time"

Lawyers work long hours. This is especially true for lawyers who own and run their own practices. They have to balance their responsibilities to their clients with the demands of running their firm. It's no surprise that time management is a challenge.

Additional Solutions: 

1. Prioritize Tasks: Not all tasks are created equal. Identify which tasks are most important and prioritize them. This can help ensure that the most critical tasks get done first.
   
2. Delegate: If there are tasks that can be done by someone else, delegate them. This can free up your time to focus on the tasks that only you can do.
   
3. Use Technology: There are many tools and apps available that can help with time management. This could include calendar apps, task management tools, or time tracking software.
   
4. Set Boundaries: It's important to set boundaries between work and personal time. This could involve setting specific work hours, taking regular breaks, or making sure to take time off.
   
5. Improve Efficiency: Look for ways to make your work processes more efficient. This could involve automating routine tasks, streamlining communication, or improving your workspace.
   
6. Plan Ahead: At the end of each day, take a few minutes to plan out the next day. This can help you hit the ground running in the morning and make the most of your time.
   
7. Take Care of Yourself: It's important to take care of your physical and mental health. This can include getting regular exercise, eating healthy, getting enough sleep, and taking time to relax and recharge.

By implementing these strategies, you can improve your time management skills and find a better balance between your work and personal life.

Working in law can mean long hours and lots of stress. But I hope some of the solutions I’ve provided here can help you manage your work more effectively and reduce your stress. 

Listener’s Question of the Week

And now, it’s time for our Listener’s Question of the Week!

Today’s question is from Shelby. I have listened to several of your podcasts. In the beginning, you mention that your niche is solo attorneys who are single parents. I am curious to know the why and how.

Thanks, Shelby, for your question. Yes, I am a single parent. My divorce was finalized in 2019 but we were separated in early 2017. So, it’s been 6 years now. My girls are just now 12 and 15. It’s been a rough 6 years.

So, while Profit Scale Thrive is not a CPA firm, I am a CPA whose prior (now closed) company was a CPA firm, but my firm runs very similar to a law firm. I have been a firm owner since 2005. When I started on my own, I felt that many groups and conferences were geared towards men – as if women didn’t own firms. It was off-putting to me.  I am happy to see nearly 20 years later, more women in prominent places in the market.

Let me state that I’ve never felt being a woman is a detriment – I’ve always done what I want even if “girls don’t do that” – I bought my first house by myself at age 23. I rode a Harley for years until I started having kids. I raced in autocross until my kids started getting busy with their activities, and I decided I’d rather spend time with my kids while they want to spend time with me; Autocross will be there when I’m an empty nester.

Once I became a single parent, my mindset with my business dramatically changed. Instead of my firm generating extra cash for my family, it now needed to be a source of steady income to support the basic needs for me and my girls. 

Now, I always struggled to leave town without my kids with me because I missed them, but I found it much more difficult to leave town for 3-day conferences as a single parent. Not only because I’d leave the office for 3 days but because I now had additional logistics of figuring out how my kids would be taken care of while I was away. I share custody 50/50 with my ex, but I feared his judgement and questioned if he’d use my out-of-town conferences against me in court.

When I did go to my first out-of-town conference as a single parent, I realize several things – 

• Many of the notes I had taken sounded great in theory, but they were not realistic for me to implement for a variety of reasons – mainly because they took time or skills I didn’t have.
• When I got back home, I did not have anyone to talk though new ideas with. While personally, I rarely recommend having partners in business, it’s lonely being a solo-practitioner.
• Looking back at notes, an overwhelming majority were notes I had taken over and over from different conferences, webinars and books. The tools may have changed over time, but the foundational theory was the same.
• I realized that I am my own worst enemy. My self-doubt and self-limiting beliefs. Poor mindset is my kryptonite.

I was sad, upset and embarrassed with myself that I had been spending so much time, energy and money on conferences all these years and I did **NOTHING** with the information.  What I really needed was to buckle down, stop drooling over the next shiny object I saw, and start implementing the proven things that would grow my business one at a time.

I hired a coach to hold me accountable and help me review and revise my priority list on a continuous basis. I have someone to celebrate my wins with and do a postmortem on any shortfalls. Someone to bounce ideas off of and talk through if a new idea has wings attached to it or an anchor.

I reassessed how I worked with clients. I had been doing typical CPA work. Posting transactions. Running payroll. Paying bills. Analyzing budget to actual reports. While all of this matters to every business, it tells you what already happened. It has limited use for the future of the business – where the business can go – where the business wants to go. It has value, but…

My coach’s help combined with the progress I made in my business, made me realize how I could help clients cut out the noise they were being bombarded with from their inbox and social media feeds.  The fact is, we know what works. I love new technology, but let’s get to the basics and get efficient. Grow our bank balance. Scale the firm to a size that comfortably supports our lives for real work-life balance. Now, this is valuable work that I take pride in. I love celebrating my client’s wins!

If you would like to submit a question for a future episode, please send an email to [email protected].

Inspirational Quote

This week’s inspirational quote is from Franklin D Roosevelt, “When you reach the end of your rope, tie a knot in it and hang on.”

Final Thoughts

Final thoughts for today! 

Good stuff today for sure! No matter where you are in your firm right now, I am sure that something in today’s podcast will help you make the next step up in your firm.

For me, time management is a huge challenge. I have such a bleeding heart and want to take care of everyone around me to the detriment of myself. At one point not too long ago, I found myself overwhelmed with no time for anything and too much focus on non-billable admin work. I had to be honest with myself that I was spending too much time volunteering in a Board position for my kids’ PTA at school trying to *gasp* run the PTA as a legit business instead of the lackadaisical state it was in. I was also the co-Secretary of my town’s business group with the responsibility of managing our Facebook page, all member communications, taking the official notes for our monthly meetings and managing our town’s annual garage sale event.

The problem was my mental and emotional health was taking a beating. Men, put on the earmuffs for a second, but women, you’ll understand this – my body and mind are betraying me as I am in perimenopause. I let my heart dictate my life. 

I’ve since reclaimed my calendar. I’m working on my mid-year goal reset. I’m feeling better about how I’m spending my time each day.

Is there anything that you agree or disagree that I talked about today? Did I not mention something that you find works for you? Let me know – send me an email, DM or post a comment if you are watching on YouTube.

Before I sign off for today, for listeners of my podcast, you have an opportunity to get a copy of my newly published book for free! 

“Stop Struggling and Start Thriving A Guide To Transform Your Law Firm”

Download the Free PDF Now 👉 CLICK FOR FREE BOOK

Also, it is available for purchase on Kindle or paperback HERE.

If you have any questions about today’s episode, feel free to comment if you are watching on YouTube or send me an email to [email protected].

If you know someone who might need to hear this information, please share this episode with them or if you are on YouTube, tag them below! 

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Did you enjoy this episode? Please consider leaving a review. 

And before I go – remember - profit is something you intentionally plan for in the beginning. It is not a potential bonus at the end of the year!

Thanks, and have an amazing day!

Whether you are thinking of hanging your shingle or you have been running your law firm for a few years, today we will talk about the 5 challenges I hear most from my clients about running their practice. I offer up multiple ways you can overcome these challenges so you can thrive in your business and in your life.

And, for listeners of my podcast, you have an opportunity to get a copy of my newly published book for free! 

“Stop Struggling and Start Thriving A Guide To Transform Your Law Firm”

👇 Click the link to download your guide today. Let's pave the path to profitability together!

#StopStruggling #StartThriving #LawFirmProfitability #eBook

Download the Free PDF Now 👉 CLICK FOR FREE BOOK

Or it is available for purchase on Kindle or paperback HERE.

Be sure to follow and subscribe to get notifications for future episodes!

✉️ EMAIL: [email protected]
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