Essential Advice for Building and Managing a Successful Law Practice
Tips from Practice Management Pros Peggy Gruenke and Alan Klevan
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Craft a Simple Business Plan — Just for You
Develop a straightforward business plan that helps you stay focused on your goals, strengths, and ideal clients. Use it to answer key questions like: Am I profitable? Where’s my money going? How can I attract more business? -
Create a Budget and Monitor Cash Flow
Running your firm without a budget is like driving blindfolded. Start tracking what you earn and spend using a basic spreadsheet. Don’t worry about past data — begin now and build from there. -
Know Your Monthly Revenue Goal
Calculate how much you need each month to stay afloat. Write it down, keep it visible, and track daily progress. Anything you earn above that is your profit. -
Identify Your Best Referral Sources
Great clients often come from people who already trust you — past clients, fellow attorneys, family, and friends. Nurture these relationships; they’re invaluable. -
Don’t Waste Money on the Wrong Clients
Evaluate your marketing spend. Are your paid leads turning into good, paying clients? If not, rethink your strategy — poor-fit clients can cost more than they bring in. -
Show Gratitude to Your Referrers
Thank those who send clients your way. Consider a donation to their favorite cause, a quick phone call, a thoughtful gift, or even a good book you enjoyed. -
Deliver Outstanding Client Service
Audit every client interaction — from your website to email replies to document delivery. Aim not just for satisfaction but for exceptional service that gets people talking. -
Systematize Your Workflow
Read books like The Checklist Manifesto or The E-Myth Attorney to understand the value of documented processes. Streamline repetitive tasks to improve efficiency and consistency. -
Leave the Office and Network
Strong relationships don’t form behind a desk. Meet referral partners, engage with connectors and influencers, and grow your circle both online and offline. -
Be Consistent with Follow-Ups
Small gestures like checking in or asking good questions build trust. Create systems to ensure follow-ups don’t fall through the cracks. -
Engage New People — Sit Next to Strangers
Next time you attend an event, break out of your comfort zone. Practice your introduction and expand your network by meeting someone new. -
Volunteer Your Time
Whether it’s a community board or local school, volunteering is a great way to meet people and give back — all while building goodwill and visibility. -
Let Clients Talk First
When meeting with clients, listen more than you speak. They want to feel heard and understood before they’ll trust you to solve their problems. -
Learn to Say No
Not every client is worth taking. Use the 80/20 rule — 20% of clients may cause 80% of your headaches. Don’t be afraid to turn work down. -
Rate Your Clients: A to D
Know who your ideal clients are. “A” clients are respectful and refer others. “D” clients are difficult and drain your energy. Let go of the ones who don’t serve your business. -
Set Expectations Early
At the first meeting, explain the process clearly. Outline key steps and manage expectations to reduce misunderstandings and foster trust. -
Be Confident When Discussing Fees
Maintain eye contact when talking money. Confidence signals professionalism. If a client seems unsure, it may indicate payment problems ahead. -
Don’t Discount Your Fees
If a client pressures you to match another lawyer’s lower price, hold your ground. Reducing your rate can damage trust and devalue your service. -
Bill Promptly and at the Right Time
Clients perceive higher value right after a result is delivered. Bill during this peak appreciation window to reinforce the worth of your work. -
End Relationships with Care
Just because a case ends doesn’t mean the relationship should. Conduct an exit interview, send a warm closing letter, and request a review — all while keeping the focus on the client.
