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

Are You Making These Business Mistakes?

William Gladstone said that ‘No man ever became great or good except through many and great mistakes’.

Mistakes are one of the best learning opportunities we have in our businesses but sometimes we’re not aware of them, choose to ignore them (praying the situation will change) or try to dodge them by staying in the comfort zone.

If you feel that you’re not making progress check out these 6 common business mistakes that can keep you spinning your wheels…….

Mistake # 1Lack of vision or not being on purpose in your business and your life can have you heading off in the wrong direction, wasting time and energy on the next bright shiny thing that promises to make you money or solve your problems. When you get on purpose life begins to flow. As the author Dr Wayne Dyer said, ‘When I chased after money, I never had enough. When I got my life on purpose and focused on giving of myself and everything that arrived into my life, then I was prosperous’.

Mistake # 2Negative and critical thinking patterns can blind you from noticing positive aspects and potential opportunities that surround you every day. These limiting beliefs and low expectations can keep you in that familiar comfort zone when you could be taking a few risks, expanding your experiences and who knows ‘hitting gold’ from time to time!

Mistake # 3Not having a handle on the numbers! When you don’t keep track of conversion rates, profit margins or pricing then it’s difficult to make decisions that are going to have a real impact on your business success for the long term.

Mistake # 4Offering too broad a range of services for too wide an audience. It’s tempting to want to offer as much as possible to as many people as possible, in the hope that something sticks, but the problem with this approach is that it dilutes your message and your brand. Experts and specialists are more sought after and are usually paid higher fees than generalists.

Mistake # 5Inconsistent marketing. When your tweets dry up or your blog has not been updated for months it sends a message that you are neglecting your business. It may be that you’re busy but keeping your marketing fresh and engaging keeps you at the forefront of other people’s minds for when they do need your services

Mistake # 6 – Neglecting your self care. Running a business can use up huge amounts of energy and time but business owners often put themselves at the bottom of the list of who they look after. Neglecting your health and vitality can lead to exhaustion and burnout in the long run. If you are a solo business owner you are your business’s most important asset. So put the oxygen mask on yourself first!

Business Mistakes Other People Make – How To Learn From Them

Undoing the damage caused by business mistakes is often difficult, which is why it’s best to avoid them in the first place. It’s hard to generalize, of course, as it depends on your business and the mistake you’ve made. It’s always painful, though, to have to clean up a mess that you realize could have been avoided. Even a fatal mistake is a learning experience that can help you if you ever decide to start over again. As long as you have the right attitude, you can always try again with some extra knowledge under your belt. With internet businesses, you can almost always rebuild them, as this doesn’t even require any capital. If you’re smart, you will start off by studying the kind of mistakes other businesses have made and learn the lesson painlessly.

If your work habits are sub-standard, nothing else you do in your business is going to be able to compensate for this. In saying that, there are an abundant amount of ways to display poor work customs such as lack of discipline, for instance. The leading step is to ethically look at how you devote your work day and realize what you are really achieving. Also, you can create a schedule such as working for 60 minutes without disruption and breaking for ten minutes. Don’t just assume your work habits are good, as the only thing that matters is what you’re really doing with your time. This is really the most fundamental part of building a business, though many courses and books don’t cover it much. Self-improvement is one of the most popular categories of product.

There are endless videos, books, magazines and so forth. Yet, many of the biggest customers for these products still feel that some piece of the puzzle is missing. Many of the people who order these products don’t implement what they’ve learned. There’s also the issue of consistency, as many people don’t stick with a method long enough to see lasting results. Another common thing is people know they can improve, but they’re too lazy and don’t want to make the effort – or it’s not instant enough. To make lasting changes, you have to be ready to commit yourself to the self-improvement process for the long haul. No matter if you feel like you’re regressing certain days, just make sure to achieve better results tomorrow.

So many people actually believe they have the skills necessary to do certain business and marketing activities, when in reality commonsense is not enough to handle what needs to be done. Here’s a classic example of this that’s been repeated by countless numbers of IM marketers. Someone hears about article marketing, and they think it’s easy. All they have to do, they think, is submit articles to a directory after writing them. Obviously, there is much more to article marketing, something that most people are aware of if they have any experience.

There are good and horrible ways to write articles. Effective headline writing is something that you should focus on in order to get the maximum amount of views. Despite being familiar with this type of marketing, you can always learn something new, so keep that in mind. When you first set up an online business, you will almost certainly make a few mistakes. Do your best to find trustworthy resources where you can learn the basics. Some quality internet marketing books or courses are a worthwhile investment. Then get started and be small about it and build on it. Any mistakes can be considered part of your education, and you’ll never have to make them again.