3 Things Every Attorney Needs in Their Financial Plan to Make Their Firm as Profitable as Ever
Every law firm needs smart financial planning -- and that goes way beyond just putting money in a savings account.
You want to make sure your firm is as profitable as possible, and that all of your costs and budgets are neatly organized and accounted for.
Not only will this make you more money every year…
but it will make your firm much more attractive to potential buyers when you start to formulate your exit strategy for eventual retirement.
Think of it this way: what’s good for you now (streamlined services, organized books) will be good for your firm in the long run.
Separate Revenue by Service Area
If you offer more than one service area, you need to split them up so you can figure out which one is more profitable. The answer may end up surprising you. Offer real estate law AND estate law? Break them out into separate revenue streams to see which one makes you the most money. Then, work on expanding that area to make your business even more successful. It’s common to offer a more generalist approach when first starting out, but as your firm grows you want to ensure you’re not wasting time and resources on a part of your business that’s not bringing in enough revenue.
A Marketing Budget
I’m sorry to break the news to you, but marketing is a must. Even if you get a lot of business through referrals, you still need to budget for marketing, whether that’s Google adwords, SEO on your website, a savvy social media manager, or traditional TV or newspaper ads. At Core Solutions Group, Inc., we look over our clients’ books and help them develop a marketing budget that makes sense. We also help you cut any marketing costs that aren’t bringing in enough revenue - like cutting those pricey YellowBook ads in the digital age!
This is essential. (For more info, check out our post here on must-know tips for attorneys planning their retirement!) Even if you’re only in your thirties or forties, you need to think ahead NOW to plan for your retirement. We always recommend diversifying your portfolio: stocks, an IRA, and property are good places to start. Our financial roadmapping service helps you plan for retirement effectively, no matter what stage your business is at. We also recommend working with a financial roadmapping team: not just a tax accountant OR just a financial planner. Our team-based approach means that we’ll all be working save you the most money possible.
If you’re ready to start talking financial roadmapping with Core Solutions Group, Inc. or have any questions about retirement strategy for attorneys, click here to learn more about our services and to book your free 20-minute efficiency call.