How often do you stop to take the time to answer this question? Once a month? Once a quarter? Never? Or does it keep you up late at night as you consider the money wasted on law firm tools that no one in your practice, including yourself, ever uses.
Unfortunately, as a consumer centric society, we are always looking for things that claim to be able to make our lives easier with the only requirement being a cost investment from us. It sounds good, right? We all fall into the trap, most likely because we are so incredibly busy each day, in looking for the magic bullet that will make everything better. You know the promises I’m talking about:
While there are law firm tools that can make a tremendous impact on the profitability and efficiency of your law firm, you need to think about what you actually need to get there.
Not a day goes by that we don’t see firms that are spending their hard earned dollars on tools that not only go unused but provide duplicate services. There is little analysis and thought that goes into the monthly, let alone annual, spend on tools designed to make running the law firm easier. Over time, the costs stack up and the law firm doesn’t get any more efficient.
Ready to cut the fat and determine what you actually need? Here are a few steps you can take today:
1. Do you know what you spend money on each month? You need a budget. Right now. Yes, there may be annual costs that you pay but that doesn’t mean you can’t plan to set aside money each month so you are ready to pay the annual bill when it comes due. Start a careful budget analysis: What do you pay? Where is it paid? What is the value promise on the services you should be receiving? Was it ready to go out of the box? Or did you buy another service that sounded great but, in practicality, was just another wasted investment?
2. Have you used it in the last month? While that may sound dramatic it is a strong place to start when you are looking to make serious cuts and take back your profitability. If you didn’t use it, why or why not? If you did use it, did it deliver the results you were expecting? Is it duplicated by another tool you have?
3. Does it need customization? Not all law firm tools are ready to go upon delivery. They are just that, law firm tools. Now you, or a team member or a company you hire, needs to come in and make sure it works the way you need it to. While, yes, this is another investment, you need your law firm tools to perform.
4. Do you fall into the sweat equity trap? Yes, there is no question you can do it all yourself. The question is: Should you? Your most valuable asset is your time and your law firm’s most valuable asset is you. At the end of the day your time is money and spending a full, billable work day on implementation or solving a problem that should not be there when you are practicing law doesn’t make a lot of sense. Be careful of the sweat equity trap and remember, you are the lawyer. You need to be able to focus on what you do best.
While law firm tool analysis takes time, this is a critical investment in your law firm’s success. By eliminating wasted money on tools that are duplicative or do not work correctly and choosing to invest in the ones that you know will make a difference in the overall efficiency of your law practice, you are making smart business decisions. These decisions will not only make you a stronger lawyer and business owner but, overtime, will increase your overall satisfaction in your law firm.
