Thursday, April 11, 2013

Manage All Seven Revenue Generating Strategies

It's always good to refresh your memory of the ways in which a practice can increase its revenues. More importantly, you should have a plan in place to manage the improvement of revenues using each strategy. Yet so few law firms or lawyers do.

First, let's review the seven main ways to increase revenues.

1. Add new capabilities or experience.
2. Attract new clients.
3. Increase referrals.
4. Reduce client attrition.
5. Increase rates and fees.
6. Add attorneys.
7. Increase leverage.

Interestingly, most firms, if they have plans at all, only have them for one or two of these revenue producing strategies. Yet each strategy deserves its own plan.

Plans need not be complicated rituals or documents. A simple list of the activities that you commit to doing to improve revenues through each strategy can suffice. A list of the activities to, for example, increase referrals, might look like this:

  • Map out the people I come in contact with each day and determine who can refer work to me.
  • Ask to speak at the next Chamber of Commerce presentation.
  • Identify three non-competitive local attorneys and schedule lunch with them.
  • Create a marketing piece entitled 'why refer our firm'
  • Join a referral group
  • Identify community leaders and professionals and take one of them to lunch each month.
  • Refer an existing client to another attorney or professonal each week.
As the saying goes, those that fail to plan, plan to fail. Don't fail at driving revenues on all seven cylinders.

If you'd like to talk about increasing your practice revenues, give Eric a call at 502-693-4731. You'll find that I am an eager resource and that it costs nothing to talk.

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