Get more profitable. As lawyers, getting paid for the great work you do is not always simple and it can become consuming. Here are some great tips to implement to help make you more profitable

1. Bills Out; Money In
Indiana State Bar Association
Solo Small Firm Conference 2015
Presenters
Peggy Gruenke

2. Accidentally
Successful?
Are You….

3. • Know the sources from
where your clients
originate
• Know WHY your clients
hire you
• Where the time goes
• Know the sources of
your income
• Know what you’re
spending
• Concentrate on
improving revenue

5. To learn how to be better
lawyers
To learn how to be better
business owners
Support your local bar
association’s events

7. Law Firms are Simple Businesses
Forbes article in 2014, law firms ranked
2nd as profitable business model
Average profit margin – 17.8%
Low operating costs
Predictable expenses
Increased focus on efficiency and tech

8. Financial health dependent on 4 simple concepts:
1. Getting the work
2. Doing the work
3. Getting paid for the work
4. Repeat

9. Steady flow

11. 1.Your current bank balance
2.Your current past due invoices
amount
3.Your Trust balance
4.And the name of one client to fire!
Write down these numbers:

12. How much larger could that bank balance be and how
much smaller could the past due balance be if you
made these changes….

13. Some Billing Tips

14. Enter Your Time

16. Use Software MADE for Lawyers
Pick One and Stick With It

18. Bill Every Month – even Twice a
Month

19. Nothing is free that costs you
your time.

20. Manage Your Client and
Expectations

21. Get it in
Writing
Clearly
identify
terms of
engageme
nt
Ask how
you are
doing
Ask for
feedback
as matter
progresses
Don’t
annoy
your
clients
Return
phone calls
and emails
Send them
copies of
important
documents
Document,
Document,
Document
Record advice
or instructions
that involve
significant
issues or
outcomes
Memorialized
communicati
ons help
confirm what
was said or
done
Communication

22. Manage
Expectations
Not just at start
but throughout
matter:
Discuss
outcomes, how
long, fees,
expenses
Meet or Beat
Deadlines
Set realistic
deadlines;
Under promise,
over deliver;
Don’t
procrastinate
Get the $ Up
Front
Get a retainer
and replenish
it.
Stop Work if
No Payments
Management

24. Build a Roadmap of the Case

26. The one “technology” your clients really wish you’d get
better at using is the telephone. Call them back!

27. Get Retainers and Get Them Replenished.

28. Make Bills Easy to Read

30. Value (Task) Bill

31. Charge Interest

32. If your clients stop paying you,
don’t ignore them. Fire them.

33. Clip a picture of your kids to the top of
your stack of invoices

35. Write-offs are not discounts

36. Bonus Tip. Take Credit
Cards

38. Flat Fees and Law Firm
Economics
Do They Benefit Your Clients?
• It’s predictable
• It’s transparent
• Shared risk
• It builds trust
• It simplifies the “getting
paid” process
• Focus shifts to workflow
and execution

39. Are Flat Fees Right for Your Firm?
Will flat fees improve profits?
Do they expose you to a new set of desirable
clients?
Do you have the marketing platform for your
flat fee services?
Do you have the right metrics in place to
measure the financial performance of flat fee
cases?

40. What Do You Measure?
Exam historical data
• Billing data
• Collections history
• Number of flat fee cases
• Cost per flat fee matter
• Revenue per flat fee matter
• Practice areas used
• Indirect impact – flat fee
clients who engage firm for
additional services

41. Reporting
Simple Dashboard Report

42. In the State/Provincial Bar We
TRUST
Monies in trust not your asset
Follow the rules
Available is NOT Cleared
Retainer concepts
Make your CPA understand
Make your BANK understand
B

43. Thinking like a lawyer doesn’t pay the bills.
Thinking like a business person does.

44. Key Metrics You May
Measure
Hours Entered vs. Billed
Discounts
Write-offs
Expenses
Realization Rates

45. Reports for Your Firm
Cash in the bank
Amount billed each
month
Accounts Payable
Accounts Receivable
Work-in-Progress
How much time was
written down/off
B

46. Conclusion
Time is inventory - don’t ignore it
Concentrate on building revenue
Know the sources of your business
Bill regularly, consider value billing
Don’t work for free
Understand your finances
Review your budget

47. What will you change when you get
back to the office?

48. Thank you!
Peggy Gruenke
pgruenke@legalbizsuccess.com.com
Me - @peggygruenke http://www.linkedin.com/in/peg
gygruenke