Law Practice Management
| Publication year | 2023 |
| Citation | Vol. 29 No. 1 Pg. 0058 |
| Pages | 0058 |
Unlocking Profitability: Building a Profitable Law Practice
A profitable law practice is the cornerstone of a thriving legal career.
BY NKOYO-ENE R. EFFIONG
In the fiercely competitive legal land-scape, building a profitable law practice is not just a desire; it is a necessity for longterm success. In this article, we explore why profitability matters, how it impacts professionalism, and how you can begin or continue to design a profitable law practice.
As the director of Law Practice Management, I have the privilege of speaking with attorneys across the state about their law practices. One issue that I encounter frequently (outside of trust accounting issues) is the overworked, underpaid attorney who is struggling to stay on top of a huge caseload. Often, what we uncover is that they have unwittingly created a volume practice for themselves because they have not priced or positioned their services appropriately. Running a volume law practice requires a level of precision and process for which many have not designed their practice to have. As a result, many lawyers find themselves in the rat race bringing on more clients than they can handle. All the while, they are barely paying expenses and meeting payroll. There is another way, a more profitable (and peaceful) way.
Picture it: you open your banking app and check the balance in your operating account. All your auto drafts have been posted, rent is paid, payroll ran and there is still a healthy amount of money in the account. You can actually pay yourself that reasonable salary that the IRS requires ...
This is what building a profitable law practice can bring. Confidence. Security. Ease.
A profitable law practice is the cornerstone of a thriving legal career. It enables you to attract and retain top-tier talent, invest in cutting-edge technology and provide exceptional client service. Profits open doors to growth opportunities, allowing you to expand your practice and explore new areas of specialization. Moreover, profitability ensures stability during lean times, allowing you to navigate economic uncertainties without compromising the quality of your services. A profitable practice also bolsters your reputation, reinforcing the perception that your legal expertise is worth every penny.
There is also a sense of peace that comes from knowing you will have the resources you need to lead...
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