Can you believe that Q3 is in full swing already? For law firms, Q3 is a time to get serious about reaching revenue goals, especially if they’re not on track to exceed those goals already. The third quarter is one of the best times to make changes that will bring increased revenue to your firm because there’s still plenty of time to see a big shift in your firm’s financials by the end of the year, based on the actions you take today. If you’re a firm owner looking to increase revenue this quarter, we have some advice to share about how to make it easier. Today, we’ll be talking all about the “little” things you can do to increase your revenue and keep cash flowing into your firm continuously over the last two quarters of the year.
How to Optimize Law Firm Revenue
The first thing attorneys need to do to increase their revenue in Q3 is to evaluate their law firm’s current financial status. By taking a look at historical data, you’ll be able to easily identify where your firm could use improvement. I recommend looking, specifically, at metrics like billable hours and WIP to get a good idea of where you are with your goals today. It’s also a great idea to get some cash flow projections so that you have a deeper understanding of how your firm would perform in different scenarios.
Many attorneys have also increased law firm revenue of their law firm by optimizing their systems.
Even beyond attracting new business or understanding your cash flow projections, simply re-evaluating where you stand with your systems can give your firm a huge boost when it comes to your revenue goals. For example, a law firm that is under-billing might choose to implement better billable hours tracking practices and see an immediate increase in revenue without actually needing to find new business. Take a close look at all the systems that exist in your business and identify areas for improvement. Where could your firm stand to tighten up operations and what kind of a difference could it make when it comes to how much work you actually bill this year?
If you want to optimize law firm revenue, you should consider your options for expansion.
Expansion can mean internal expansion or external. Here are three pathways we see law firms expand in order to increase their revenue:
Increase Law Firm Revenue Per Lawyer by Adding Higher Ticket Practice Areas
If your firm isn’t currently offering services in a related but higher ticket practice area, it might be a good idea to hire some attorneys who specialize in that area. This will increase you revenue per lawyer overall and bring good cash flow to your firm as well.
Increase Law Firm Revenue with Marketing Based on ROI
The key here isn’t just to invest in marketing. It’s to invest in marketing that is proven to give you a great return on investment. You can determine your best pathways here by taking a look at previous marketing campaigns and choosing to replicate the ones that had the best and most immediate ROI.
Expand Your Pricing Model
One way to increase revenue that doesn’t require hiring new attorneys or working with marketing professionals at all is simply to change how your firm does pricing. You can either adjust your rates overall or even introduce new, alternative fee arrangements that can help you secure more potential clients.
How can my law firm increase revenue in Q3 and Q4?
The best way to increasing your law firm’s revenue is to work with an established bookkeeping professional who can help you determine your most profitable services, make helpful cash flow projections, strategize your growth, and more. If you need a professional like this in your corner, schedule a free consultation today.
