New Year's resolution?

The benefits of running your own law firm are clear: you control your own destiny, reap your own rewards and determine your work/life balance. With these come clear responsibilities...

Always remember: you are running a business

Life in the legal world can be hectic. It’s a demanding profession where day-to-day work can mean that business performance considerations can slip.

Being a great lawyer does not automatically mean you are a great business person. It’s prudent to take on board the advice of professionals:

• Employ a good accountant who can take you through the key financial considerations
• Focus on your profit and loss statement regularly
• Get a firm grip on cashflow
• Ease your burden by using the right practice management software.

Pay particular attention to cashflow. Businesses don’t go bust due to a lack of profitability. They go bust because they can’t pay the bills. You should know your precise cashflow position at the end of every working day.

Invoice regularly

The art of maintaining positive cashflow is to invoice clients regularly. If you do this each month, or even more often, you are more likely to get paid on time and in full. Don’t be afraid to use interim billing. Clients find it easier to afford and pay for your services in bite-sized chunks – and it will keep your bank manager happy. The longer you wait before sending out the bill, the less likely you are to get paid.

Market yourself professionally

The starting point for promoting your business is your website. It’s your brochure, directory entry, online storefront, client care mechanism and your newsletter all rolled into one. Websites are not a one-off transaction. They require maintenance to maintain your position on search engines including Google.

That requires advice and input from web professionals who manage search engine optimisation on a daily basis and who can help you write blog articles that will generate traffic for your site.

Of course, it’s not all just about e-marketing – traditional methods count too. Don’t overlook these when developing your plan.

Top tips

• Contact LSoS early, they have plenty of information to help your new start and will support you through the process
• Contact your bank early as well, it can take a while to setup a new business bank account

Invest in the right software

Keeping track of profit and loss, cashflow and managing your client marketing, time recording and billing is easy with the right practice management software.

It pays to opt for a PMS system where accounts and case management are in a single system and you can access all the relevant financials and case information without duplication of effort.

If you are thinking about striking out on your own, good luck, take care and contact us.

0345 202 0578 or innovate@lawware.co.uk