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Tag Archives: law firm profitability

10 Signs Small Law Firms are leaving $10k a Year on the Table

10 Signs Small Law Firms are leaving $10k a Year on the Table

“If you’re not earning adequately, you’re probably not taking care of your clients adequately,” says law firm practice management consultant, Ann Guinn. Ms. Guinn believes a majority of solo and small firm attorneys are leaving money on the table, upwards of $10,000 annually and unnecessarily. “In my 30-something years in the legal industry, I never met an attorney or law ... Read More »

Friday Share: 8 Habits of Highly Profitable Law Firms

Friday Share 8 Habits of Highly Profitable Law Firms

Three law firm characteristics drive profitability: behavior, strategy and culture.  This idea is conveyed in a presentation published by the BTI Consulting Group: 8 Habits of Highly Profitable Law Firms. The presentation is this week’s Friday Share.  The eight profitable habits are as follows: 1. Fewer, but Larger Clients. The presentation says that profitable firms have fewer clients, but those clients ... Read More »

The Five Gears Driving Law Firm Profitability

The Five Gears Driving Law Firm Profitability

Cost-cutting can improve margins in the short-term, but profit is just one gear among several affecting law firm profitability, according to a white paper titled Driving Profitability Forward. Gears are a sound analogy for framing the business of law, because while a gear moves independently, as part of a system, gears are interdependent. When one gear falls out of sync… ... Read More »

Core Concepts in Measuring Law Firm Client Profitability

Core Concepts in Measuring Law Firm Client Profitability-header

Note:  This is a guest post by David J. Caiati, manager of Professional Services with the LexisNexis software division. Law firms continue to struggle with finding innovative ways to sustain a traditional business model.  The key issue confronting firms of all sizes is how to maintain the same profit margins enjoyed over the years while at the same time addressing ... Read More »

A Study in Futility: Rising Legal Rates, Falling Realization

A Study in Futility Rising Legal Rates Falling Realization

According to a 2015 study published by The Managing Partner Forum, standard hourly rates for surveyed attorneys have continued to rise in recent years – even in light of difficult economic conditions – from an average of just over $375 at the beginning of 2008 to right around $450 at the beginning of 2014. From a law firm perspective, it ... Read More »

Legal Spend Trend: Big Law Winning More IP Litigation Work

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A new edition of the CounselLink Enterprise Legal Management Trends Report finds the largest of law firms – those with 750 or more attorneys – are winning market share in highly competitive IP litigation work.  An announcement published online notes: The largest firms are winning a growing share of market in IP litigation – from 36% in 2011 to 61% ... Read More »

 Drill Deeper than Income to Understanding Law Firm Finances

Drill Deeper than Income to Understanding Law Firm Finances

Note: The following is an excerpt from a new eBook titled 15 Ideas for Getting a Jump-Start on 2015 which is freely available with registration. Lawyers are expected to learn what they need to know about practicing law in law school. Looking at the course offerings from any law school you will find criminal law, torts, administrative law, business law, family law and ... Read More »

The Secret Law Firm Metric Clients Will Pay to Improve

The Secret Law Firm Metric Clients Will Pay to Improve

Hint: It’s not a financial metric, but it can have a big impact on improving law firm profitability and growth. What’s more, it’s really not that big a secret if you’ve been listening closely to the clues your clients have been dropping: Like trying to negotiate lower rates, taking a long time to pay your bills, or simply “forgetting” to ... Read More »

The Two Simple Drivers of Law Firm Profitability

The Two Simple Drivers of Law Firm Profitability-3

Finding the bottom line, or net profit, at law firms is not easy. Law firms aren’t widget makers, and the business model is unique because the model centers on people not widgets. At the same time, any firm that wants to stay in business has to establish a framework for understanding the drivers of profitability at your firm: The simple ... Read More »

CPA:  How to Fairly Calculate Timekeeper Profitability Ratios

How to Fairly Calculate Timekeeper Profitability Ratios

Note: The following is an excerpt from a new eBook titled 15 Ideas for Getting a Jump-Start on 2015 which is freely available with registration. One concept that my CPA firm is working with several law firms on is adopting an objective way to gauge and compare the profitability of individual producers, all the way from paralegals to partners. For obvious reasons, most ... Read More »