Parker's Points
April 2008
Recession Proof Your Practice - 10 Ways to Beat a Downturn in the Economy
There is lots of talk of recession these days. Whether the talk is true or not here are 10 things you can be doing for your practice to bolster your chances of surviving and thriving through rough times. The best time to start is right now!
- Check Financials Regularly - When clients are under financial strain bills don't get paid, contracts get cancelled, and engagements are terminated. Make adjustments regularly to compensate for lost revenue.
- Spend Smarter - Now is probably not a good time to buy big ticket items unless you know they will pay for themselves in a very short time frame. Put off purchases except essentials until market conditions improve. Even in good times it is important to cost justify your large expenses. What is the payback? How long does it take?
- Write and Follow a Marketing Plan - When things are slow your time must be spent in marketing your practice. Having a solid marketing plan will keep you focused on the steps you need to take.
- Network - Now is the time to solidify your network. Talk to old clients, referrers and other lawyers. Networking works both ways. See how you can help them and then see if there are ways they can help you.
- Focus on Retaining and Servicing Current Clients - How else can you help the clients you have? Listen to them. Find out their needs during a business slow down. See how you can offer your service in a way that helps them. Is this the time to try fixed pricing rather than hourly billing?
- Hold on to Good Employees - It is hard to find good employees so if you have them resist the temptation to cut your staff. If someone isn't performing however you can not afford to keep them on. Now is the time to get tough.
- Don't Complain - Complaining about the economy is not productive and lowers morale. As the leader of your practice it is up to you to motivate your staff by describing your vision of your practice. You must show excitement about it so that they "catch" your enthusiasm.
- Check Practice Area - Some practice areas do better than others in a recession. Check the areas your firm handles to find the ones that are better than others in tough times. Not all industries or market segments are hurt by a poor economy either. Look to see if you can shift your practice in a way that results in more work.
- Bill Regularly - This is the time to be on time with billing. Timekeepers must be diligent about recording time and sending out bills monthly. Delays in billing will mean your clients pay you later. This can have a cascading effect so that you have to delay paying your bills. It could mean extra fees for you and might even mean your salary and your staffs' salaries are jeopardized.
- Take Good Care of Yourself - Worry and stress are not
healthy for you or your practice. Do whatever is necessary to keep yourself
feeling confident, rested and relaxed. Hiring a coach can help you to
keep everything in perspective. With a coach your business can grow even
in tough times.