Top 4 Business Mistakes Law Firms Should Avoid

The business of law has its own set of rules and regulations. Nevertheless, as with any other businesses, it can suffer due to certain mistakes, industry inaccuracies, and errors made by law firm or its staff. Whether your law firm is large or small or whether you have a solo practice, these business mistakes can lost you dearly.

Given below are the four most common business mistakes that law firms should avoid

1. Not Focusing on Your Niche

This is particularly applicable to smaller law firms and solo practices. In an attempt to gain more clients and business, there is a temptation to spread yourself too thin and take on cases outside your area of expertise. Don’t give in to this temptation. Focus on your niche, as it allows you to deliver greater client satisfaction that will automatically enhance business and profitability. Once you are well established, you may expand the services your firm provides by hiring experts in other areas. Larger law firms that handle diverse cases should assign specific areas of work such as corporate law, environmental issues, and real estate to specific people. Having everyone look at everything is a sure recipe for disaster.

2. Not Marketing Effectively

Some law firms do not believe in marketing at all and want to rely completely on word of mouth and referrals. This is a mistake. At the other end of the spectrum are law firms that spend heavily on advertising and are puzzled by the lack of results. Marketing is an essential tool to promote your law business, but it needs to be used intelligently to offer maximum value. It is not necessary to have a full-page ad in a national newspaper. You may get better results with a small ad in a local magazine that has a greater chance of being read by your target clients. Your website can also serve as a cost-effective marketing tool.

3. Not Paying Attention to Receivables

Providing the best services to clients costs money, but when clients don’t honor their bills on time, most lawyers are reluctant to follow-up. Some clients may take advantage of you and delay payment even further. If this situation continues, you will be left low on cash, which will ultimately affect the quality of service. Remember that clients will not leave your firm because you ask them to pay what they owe, but they will surely leave if your level of service goes down.

4. Not Communicating with Clients

Not communicating is a common mistake that most lawyers commit without even being aware of it. The volume of work in a law firm is so large that you tend to be overwhelmed and may actually have no time to communicate with your client. Sounds unbelievable? But it is true. Communication with your clients is very important for business. You may be working very hard for their interests, but they need to know it. Giving regular updates to your clients by phone or email is essential. These are some of the most common business mistakes that law firms regularly make. Avoiding these mistakes will help keep your clients happy, and you will be able to retain them longer than you would otherwise.

The Golden Rules

  • Find your niche and become an expert in it
  • Market yourself well
  • Pay attention to cash flow
  • Stay in touch with your clients

Getting to Know the People Working at a Law Firm

Legal aid seekers may find it hard to determine whom to talk to regarding their concerns because of the many people who are employed in a law firm, especially the large ones. These frequently happen particularly if the law office lacks an information desk to assist their clients. Hence, this article will try to help you identify those personnel and their jobs for you to know who to approach for your particular case.

In common legal practices, law firms have a certain hierarchal structure. This is to create a smooth flowing relationship among the employees, particularly concerning their task. Here is a typical list of a law firm staff:

1. Law Firm Owners – They are commonly referred to as partners. Usually, the law firm is named after them since they are the most prestigious lawyers in the company. Because of their vast experience and expertise in their field, their service fees are considered the highest.

2. Legal Associates – These individuals are also lawyers. However, they do not share the ownership of the firm. Associates have much lesser experience as compared to partners, but may also be very good in their own specialization. In due time, they may possibly be partners in the firm. Clients may also expect lower charges from them.

3. Contractual Lawyers – If in case the employed lawyers are not enough to handle the upsurge of cases brought by their clients, the law firm may hire contractual lawyers. They serve as supports to the associates and doing they work on a part-time basis. They are being paid based on an hourly rate and mostly getting higher compensation from their other clients outside a firm.

4. “Of Counsels” – Commonly, these lawyers are formerly connected with a law firm who opted to continue his or her relationship with the company after his or her quasi-retirement. Nevertheless, it is up to the owners of the firm to decide regarding their working arrangement.

5. Legal Clerks – Usually, they are law students who are tasked to work on legal researches or to assist the lawyers in setting up their clients’ cases. They also do other jobs that may be assigned to them by the lawyers. This serves as their training ground for their future profession as lawyers.

6. Paralegals – Legally trained individuals but do not have their professional licenses yet. Ordinarily, they are equipped with practical knowledge of the law that may be very useful for the lawyers to whom they work with.

7. Secretaries – Their role is very vital for every lawyer. They help in organizing the schedules, making client calls, and all other tasks that may be appointed to them by the lawyers.

8. Legal Investigators – They are assigned to work in the field, to make an investigation on a certain case handled by the law firm.

9. Administrations Officers – They are in-charge of the internal dealings of the law firm. Depending on their need, law firms may hire a human resource officer, accountant and any other important positions.

10. Receptionists – They are the front-liners of a law firm, assisting the clients about their legal concerns and ensuring them of having a great visit to the office.

Law Firms – How to Pick the Best One for You

If you are in need of professional and reliable legal advice, then you need to think about the aspects you would like to define the chosen law firm and where to look for that particular law firm. No matter if you need business consultancy or you have been sued and you need competent legal representation, a professional law firm can help you out.

Aspects That Define a Truly Reputable Law Firm

First and foremost, the employees of the law firm must have extensive knowledge in their field of activity – the more customers they have had in the past, the better! Part of the knowledge is given by “hands-on experience”, this is why lawyers that have represented many people in the past are more preferred than beginners – even so, this is not a general rule.

Moreover, the lawyers should talk to you in clear and plain English, rather than using that legal talk only professionals tend to understand. The lawyer must not forget to offer clear and concise advice and explanations whenever you need them. Also, keep in mind that just like it happens with medicine and other professionals, law has different branches: there is the tax law, civil law, criminal law, divorce law and so on. It is essential to choose the one that best meets your needs.

Certification is also highly important, as you must only work with skilled, certified and competent people who have received accreditation from professional bodies. The accreditation is a very good indicator that will help you see whether the law firm in question is actually the most qualified one for your situation.

The client-lawyer privilege is another important aspect, as this is related to mutual respect and understanding – the lawyer must understand your case, he or she must not be judgmental and the lawyer must offer unbiased, objective and useful legal advice. In order to do so, the lawyer must firstly be qualified for the job.

Where to Look for Good Law Firms?

When it comes to selecting the best firm out of several law firms, it must be mentioned that there is more than just one place where you can go and look for reputable lawyers. There are special legal societies where all the law firms are listed – these institutions can put you in touch with a local firm and you can arrange a consultation, to see whether the firm meets your needs. On the other hand, you can rely on word of mouth – ask your acquaintances for recommendations, and you might be surprised to find an affordable and professional lawyer nearby! On the other hand, the local newspaper or the Internet can also come in handy – especially the local newspaper, as most attorneys and lawyers choose to advertise their services there.

The last step you need to do prior to signing the contract is to talk to the desired law firms face to face, to see if you are on the same wavelength. Make sure to ask essential questions, such as the hourly rate, the track of record, the availability and such. In some cases, it can help to set a fixed spending limit that will allow you to stay within the limits of your budget. Last, but not least, make sure to ask your attorney about his expertise and the services he specializes in.