FOCUS YOUR EFFORTS WITH THESE 3 QUESTIONS :
1 . How is my firm performing currently ?
To solidly map out where you want to take your firm in 2023 , you must first identify your starting point — the firm ’ s current state of affairs .
This means not only combing through your firm financials and case portfolio , but also assessing your firm ’ s operations . Was the business profitable this year ? Is your caseload at capacity or do you have room for growth ? Is your office location and space adequate for the upcoming year ? Do you have a content and loyal workforce ?
Whatever the answer may be to these questions and others , clearly defining the present status of the firm will assist in the formation of a plan for the future .
2 . What goals will we work toward in 2023 ?
Lay out exactly what you want to achieve over the next year ( and beyond ). Identify goals that serve an important purpose in propelling the success of your firm , not just those that are “ easy wins .”
For example , if you find in step 1 that you have additional capacity to take on more clients , consider setting a goal to increase your case intake by some defined amount . Or , perhaps seek to enter a new practice or geographic area in order to grow and diversify your firm .
Or , you may find your focus lands on stabilizing your firm ’ s cash flow . In many cases , law firms have fragmented financial resources , such as a mix of credit card use , “ friends and family ” investments and bank financing . Implementing one stable source of working capital can allow you to more efficiently operate your firm while taking on new opportunities as they present themselves .
3 . Do I need to increase my resources ?
After evaluating where the firm is today and what the outlay is required to keep things running smoothly , you ’ ll need to determine whether you have sufficient capital that can be allocated toward your 2023 goals .
Budgeting is a key component . Having too much capital for your firm can be just as damaging as having too little — depending on the cost and type . By having a budget in place , you can protect your firm from overspending or taking on more debt than is reasonable to accomplish your goals .
Common use of funds that a plaintiffs ’ firm might budget for may include :
• Growth or practice expansion
• Case expenses
• Navigating cash flow gaps
• Marketing and advertising
If your current resources can ’ t keep pace with your new ventures , explore other solutions to see if making a change would be beneficial . A line of credit specifically tailored to contingent fee practice can be a good way close the cashflow gap when necessary , allowing you to quickly adapt to your firm ’ s needs as they change .
Alternatively , there may be other financing products better suited to your firm ’ s business model and goals , such as a nonrecourse advance or a post-settlement loan . Having working capital secured and ready for you to draw upon when new opportunities arise is paramount to your firm ’ s success and future growth .
Start 2023 with an adaptable plan in place and capital to support your objectives and any unforeseeable changes as they occur . This will put your firm in the best position to achieve its goals , maintain seamless operations and importantly , provide the best service to its clients .
The Trial Lawyer x 33