Strategy

Where are you going, and why?

These may seem like silly questions but many firms have neither asked not answered them. With

price-cutting competition for fees in conveyancing and the low rates paid for publicly-funded work, to name just two areas, profits have been hard to come by in recent years. You work harder than ever and yet seem to have less and less to show for it.

The first and perhaps most important question concerns the motives of the partners. There are firms that very deliberately choose to put service to clients above profit; they may operate in areas where many people need the help of good lawyers but few can afford it. There are also many firms that are in business to make profits, seeing their work as a means of making the best living possible. And there are many firms in between.

There is no right or wrong here; each and every one has a perfectly valid reason for being in business. But until partners are clear in their own minds what they are in it for it is hard to plan. Until you are clear about where you are going you cannot even start the journey.

Every business is a living thing that needs attention and nurture. The business world today is changing at such a pace that simply standing still will always mean being left behind as competitors gain advantages and clients find new ways to get what they need. It is therefore critical that you regularly:

Review how your business is performing in each area of activity (See Performance)Look at your markets and your clients. Are you providing what they want and need and are they still the right ones for you? (See Marketing)Consider where you sit in relation to your competitionThink about whether partners and staff are getting what they want and need from the firmLook constantly at the way things are changing and consider what could help your business

Do you routinely produce annual budgets? And then monitor your performance against them? I cannot stress enough how important this is. It need take only a few hours but it will give you an insight into your business that you really do need.

If you have not done this before, it isn't complicated. You could ask you accountant to do it for you but frankly, as so much of what goes into this comes from your own intimate knowledge of your business, it is perhaps easier to do it yourself.

If you have never done this before click on this page for some guidance: Budgeting

This is a big subject and we will develop it on further pages over the next few weeks and months.

IMPORTANT NOTE

All the opinions expressed are those of the contributors, are based on personal experience and are given in good faith. The ideas and suggestions here have worked for us but every situation is different. As a result, we are sure you will understand that no liability can be accepted for anything that may arise from following advice on this site.