What is a Businesslike Law Firm?

Published August 16, 2011

As regular readers know, I registered the phrase “The Business of Law®” nearly two decades ago because so few lawyers and law firms cared about the concept. The Great Recession has done much to change that, but there are still lawyers who contend that getting business issues right distracts them from their real purpose in life, serving clients.

The reality is that running a law firm in a businesslike way improves the professionalism of the practice of law. The purpose is not simply to get more money for the lawyer; it also benefits the client by approaching client service more efficiently, avoiding the service lapses that often result in malpractice charges. The dos and don’ts for businesslike law firm conduct are mirror images of each other. Here are half a dozen of the most important ones.

  1. Don’t put the firm first. Do put the client first. Lawyers are skilled at persuasion with judges, juries, partners and peers. Try consciously persuading your clients of the value you provide and you’ll have a better chance of retaining them.
  2. Don’t just take whatever clients are available. Do target your clients. Define the location, demographics, occupation, financials and other characteristics of clients who will give you the work you want. A business that tries to grow without a clear idea of where it wants to grow will soon find itself floundering.
  3. Don’t sell time. Do provide service and value. Value is ultimately determined by the client, not the attorney. But the attorney must educate the client about “value” by showing how the services delivered to the client coincide with what the client wants and needs to have.
  4. Don’t try to keep your options open. Do have a budget. Budgets define successful business planning. Involve the client in the budgeting process, get formal approval of the completed budget, and communicate constantly about how expenses are tracking.
  5. Don’t view technology as a cost threat. Do use it as a way to give clients more value. Technology is making the practice of law more efficient, with resulting downward pressure on both costs and fees. Law firms should partner with their clients and show them how they use technology efficiencies to increase the volume of work that can be done more efficiently.
  6. Don’t be a bank for your clients. Do emphasize collections. If the client hasn’t paid the fee while your firm continues to work on and bill for their matter, you are extending a no-cost loan to the client. Keep track of when clients are behind on their payments, and be firm in requesting payment.

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Audience type: Large Law Firms, Small Law Firms, Sole Practitioners