In the beginning of your business, you are pretty much entirely focused on revenue because you are already spending as little as you possibly can.

Once you’ve got revenue going, you’ll start to notice that your expenses slowly start to creep up.

And it might feel like for every dollar of revenue you bring in, you add another two dollars of expenses.

That is not a winning proposition.

So, today I’m going to share with you three sure-fire ways to increase your revenue without adding any more overhead.

Way #1: Engage More Prospects

One of your biggest expenses is very likely to be marketing.  You are either spending a lot of money on it or a lot of time on it or both.  If you are marketing and not engaging at least 75% of the prospects calling your office, you are losing a whole lot of profit because getting your phone to ring is where all the cost is.

You’ll increase your revenue without increasing overhead if you just start hearing yes from more prospects.

Way #2:  Offer More (Expensive) Services to Your Clients

You can add more revenue to your office without adding any additional overhead by offering those clients who do say yes additional complementary services.

I did this with the Kids Protection Plan  – adding a more comprehensive form of planning for parents with minor children at home added $1,000 to my fees.

And then I found other services I could provide that my clients wanted and were happy to pay me for.

Once I figured this out, I was collecting an additional $1,000-$3,000 on each engagement with no additional overhead.

Way #3:  Get More Referrals

Every time one of my clients sent me a client, I was increasing my revenue without adding any overhead.

So, I built systems into my office that resulted in more referrals.

I always made sure my clients knew how valuable referrals were to me because I worked that into my client engagement process.  I developed a system in which I could comfortably ask for the referral without feeling strange.  And I was always publicly thankful for all referrals – whether they turned into clients or not – by acknowledging the referrer with thanks in my monthly newsletter.

Try one or all three of these and let me know how much additional revenue you make without increasing your overhead.

Related posts:

1. Four Easy Ways To Recession Proof (and Grow!) Your Law Firm
2. More Streams of Revenue For You
3. How to Be the Indispensable Advisor Your Clients Love

So, how do you do it?  How do you manage cash flow when sometimes there are more expenses at the end of the income?

It starts with awareness.

I always hit my financial objectives IF I knew what they were.

I remember how scary it was to run my business “paycheck to paycheck” so I’ve put together a few things I learned along the way.

1. Bring in more/consistent revenue – stop billing hourly, move to flat fee, and consider a recurring revenue based model. Look at how you can increase the value of each client you serve. Know the lifetime value of each client so you know what you can invest to acquire a client.

2. Recognize you are running a business and that requires investment to grow. Fortunately, in most cases and with the right knowledge, you are your best investment. Much better than the stock market.  Don’t reinvent the wheel. Invest in learning the shortcuts you can take from people who have been there and done what you want to do.

3.  Know your numbers – make sure your chart of accounts is set up well to produce the weekly/monthly reports you need to know if you are on track to meet your projections. Look at your numbers every day, if necessary.  Focus on what you want and then take the action steps to make that a reality.

4. Don’t stop marketing – look for ways to market your business every day that don’t cost much or anything at all. Do some marketing activity everyday and show the money Gods how serious you are about making money by being willing to do things that make you uncomfortable.

5. Know where the problem is and fix it. Is the problem getting your phone to ring? Getting prospects into the office once they do call? Or engaging once they get there? Solve the right problem.

6.  Worst case, manage your payables with open communication and not by hiding.  I used to think every bill had to be paid as soon as I received it, but they actually don’t as long as you are in active communication with your vendors. Don’t hide, just communicate.  Ask for longer payment terms.  Be honest and don’t be afraid to say, I’m having a hard time with cash flow and need help.  The worst thing you can do is just not pay and not communicate.  That’s where you get in trouble. And, what I know is that if you stop paying your bills and not communicating, it’s not long before you start seeing your clients stop paying their bills.

If you haven’t already downloaded my Law Business Manifesto and other practice resources, do so at http://www. LawBusinessRevolution.com.  Tell your friends.

I’ve been where you are and built a million dollar law business with the resources I give you there.

You CAN do this.

Related posts:

1. The Law Firm Entrepreneurial Map

As usual when lawyers talk about things like this, I was surprised to hear how many lawyers are answering their own phone when they are in the office or having calls directly transferred to them.

I guess I shouldn’t be surprised though because I used to do it too when I was first in practice and didn’t know any better.

I felt overwhelmed by all there was to do in the early years of my business (even when i didn’t have a whole lot of clients) and yet when the phone rang, I lunged for it like a teenage girl waiting for her suitor to call.  (It could be a client or even better, a prospect!)

Little did I realize how answering my own phone was the worst thing I could possibly do.

It’s counter-intuitive in a way.  I thought I HAD to answer my phone to be a responsive lawyer.  In fact, it’s exactly the opposite. Make these small changes and watch your life (and bank account) improve, dramatically.

1. Have Your Phone Answered With a Smile By Someone Other Than You

Whatever you do, do not let your phone be answered by someone barking “law offices” into the phone upon pick up.  Make sure whoever answers is smiling when they do.

If you have to use voicemail, make your voicemail smile.  Add something quirky or different. So that you come across as a different kind of lawyer right off the bat.  Unless you enjoy being stereotyped in the same bucket as all the other lawyers.

Call Ruby and Total Attorneys both have great services.  (And if you mention I sent you, each of them will likely give you a free test out period.)  I believe Total Attorneys can even schedule appointment for you, which is really important because as you will see below, you want all your phone calls to be scheduled.

2.  Never Take an Unscheduled Call (Except In Case of Emergency)

When you allow the phone to interrupt you and your day even for a few minutes of the time, you will often find yourself at the end of the day wondering why it feels as if you did not get anything done. (a Microsoft study indicated that it can take as much as 15 minutes to get back on task after an interruption and then it often takes longer to get the task completed.  Add up those 15 minutes and you can lose a whole lot of day.)

So, set yourself up so that everything is scheduled. Use time blocking and hire a scheduling assistant to schedule your calls.  Or, if you are more of the virtual type use TimeDriver, Genbook, or BookFresh.

3. Do Better Work & Get More Love

When you stop allowing your phone to interrupt you throughout the day, you are going to get so much more work done and be far more productive.  That means your family is going to be giving you a lot more love because you are going to be home in time for dinner.

Plus, your prospects are going to love you a whole lot more because you are going to be more in demand than if they can get you on the phone right when they call. When’s the last time you got your surgeon on the phone when you called with a question before surgery?

And, your clients are going to love you because you are going to establish right from the first meeting that the reason you don’t take unscheduled calls is because when you are focused on their matter, you are focused and doing great work for them and refuse to be interrupted. When you DO get on the phone, you’ll always be on time (no more annoying phone tag!) and prepared for the call.  You’ll become the responsive lawyer everyone loves.

Finally, you’ll be doing better work.  And ultimately, that’s what it’s all about.

So stop answering your phone and feel the love.

Related posts:

1. How to Be the Indispensable Advisor Your Clients Love
2. The Law Firm Entrepreneurial Map
3. Love, Sweet Love for Lawyers

And I had to look at why I was serving lawyers and whether continuing to do so is the best use of my time, energy and resources.

I made the decision that it was, but only if I was willing to move beyond my safe 2nd stage business and build a business that would radically
and completely change the way legal services are provided to families and small business owners throughout the US and Canada.

To do that, I recognized I’d have to deconstruct my business – release what wasn’t working and re-build on what is and was.

It’s been a difficult process and it’s far from over. But, it’s given me a lot of compassion for those of you who are not satisfied with the old paradigm and are having to deconstruct and reconstruct your law practices to create something truly meaningful.

I wrote about the three stages of the entrepreneurial roadmap on my personal blog a couple of weeks ago and saw that it can help you here too.

So, this week’s Law Business Revolution blog applies the entrepreneurial roadmap to the business of practicing law.

The Law Firm Entrepreneurial Map

The three stages of the entrepreneurial map, as it applies to your law practice transforming into a business.

Stage 1: The True Solo

Stage 1 is all about brand new-ness. It’s about the idea, the vision, and just getting started and getting it done. It’s about figuring out your revenue model (where the money comes from) and getting on the road to freedom.

Generally speaking, you are probably working alone or with a partner. There is no team support or perhaps one person helping youout on a part time basis. (When I first started, I rented office space from other lawyers and my sister sat across the desk from me, helping me out. Within about
three months, I brought in my first part-time employee.)

You have no systems. And probably just one revenue stream, which will be your main service offering. You may be taking anything
that walks through the door just to make your bills.

You are probably charging hourly or very low flat fees.

Many (most?) lawyers remain in Stage 1 indefinitely. You may feel frustrated, tired (or exhausted), and as if you are not making as much of an impact (or money) as you’d like.

Stage 2: Enterprising Entrepreneur

When you get tired of doing it all alone, you’ll bring on some team. That’s one of the major signs you’ve made it beyond Stage 1.

You’ll also begin to realize that there’s a pattern to what you do and how you do it.  Yep, you’ve got systems and processes.

You are still working pretty hard, but you begin spending more time working on your business instead of always in your business.

And you may begin to realize that you can’t take everything that comes through the door – you have to narrow your focus to serving one market or just providing services in one practice area.

Financially, you are doing okay. You know how you make money in your business and you are constantly surprised by how much money it takes to make money.  You’d probably like to keep a bit more than you are.

While you have some team support, you are the one managing the team, for the most part. You dream of the day you get to spend all your time doing the parts of your business you really love and let go of the rest.

Stage 3: Legacy Builder

When you hit Stage 3, your work will continue, even if you aren’t there to do it. You spend your time primarily working either on the business or in the business, but not both.

You are clear on who you serve and what you do for them.

If you got sick, took a long vacation or the long permanent vacation, your business would continue.

You’ve got documented systems and process, a team, and other leaders in the company besides just yourself.

The transition from Stage 2 to Stage 3 will be harder than you expect, at least that’s my experience so far.  But, it will be well worth it.

If you try to make this transition too quickly and without the right people in place, the whole thing will blow up in your face.

No matter where you are today and how far it seems you have to go on the journey, if you are in business for yourself, stop for a minute and celebrate.

You are working for yourself. You are in control of your destiny.  You are on the road to freedom.

Related posts:

1. Four Easy Ways To Recession Proof (and Grow!) Your Law Firm
2. 3 Things to Consider Before Choosing a Law Firm Marketing Provider

I just had a laser coaching session with a lawyer last week who told me she didn’t want to build the kind of practice I had because she wanted to keep her fees low.  After talking with me though, she was able to see that not valuing the services she provides isn’t going to help her help more people, it’s going to run her into bankruptcy.

It’s heartbreaking to watch so many lawyers go out of business or not bring home enough bacon simply because they get trapped into thinking about their pricing the wrong way.

When you differentiate yourself based on price, you simply cannot provide value.  You end up competing on the wrong basis.

While price competitors have been in operation since beginning of time, it’s important to understand that if YOU want to build a sustainable, scalable and one day SALEable law business, a core foundational piece of that puzzle is that you are charging enough.

Is that possible in this economy?  Absolutely.

Let me shift your thinking outside the legal world and into the business world for a moment.  Stores that offer super low prices like Wal-Mart and Target are thriving in this economy.  So with that logic, you’d expect high-end stores like Nordstrom or Sacks 5th Avenue to be out of business right now…but they’re not.  In fact, Nordstrom’s profits more than doubled in the quarter ending Jan. 30 according to the WSJ.  Luxury cars like Mercedes and BMW also reported profits last year despite the fact that “no one has money to spend.”

And lawyers doing things the PFL Way are thriving, while charging much higher fees than their “competitors”. How can that be?
It’s simple, really.  People DO have money to spend… you’re simply not doing a good enough job showing them that your law firm is the best place to spend it.

You see, it’s all about the value.  And I’d suspect that you are not clear enough on the value you provide to convey it to your prospects.

This isn’t “blind theory” or Alexis Martin Neely’s random thoughts on life either.  I’ve done it, our Personal Family Lawyers® and Creative Business Lawyers™ are DOING it and so are millions of other small business owners/ entrepreneurs in this country right now.

So how are they doing it?  Here are some things you can do right now:

1. Stop Acting Like a Commodity.

Your prospects have no way to know if you are the best lawyer for them.  To regular folks, all lawyers are the same.  So when you compete on price, you’ll get price shoppers galore who see you as just like everyone else.   But, you are not like all the other lawyers, are you?

So, what makes you different?  And how do you show that to the marketplace?  That’s what you need to focus on and show the world.

2. Identify the Value of the Outcome You Provide.

Why can Nordstrom’s charge higher prices for products found elsewhere (i.e. cars, purses, ties, shoes)?  It’s because of the VALUE they’ve attached to their brand (i.e. social prestige, enhanced customer service, increased self-esteem).   They’ve moved themselves out of the commodity market and into the heart, emotion and primal urges of their clients.   You need to do the same thing in your law firm.  Yes, Mr. Customer can get an estate plan for $399 or set up their LLC for $750 or a bankruptcy for $1125 down the street, but what are they NOT getting when they work with that other firm or even worse go online to do it themselves?

3. Move Beyond the Billable Hour

There are only so many hours in a day and you’ll reach an income plateau very quickly when you are billing by the hour. Not to mention that you have to start every month over at zero and there’s absolutely no stability in that.  No matter what practice area you are in (with the exception of contested matters), you can begin billing on a flat-fee/value basis.   If you’re scared to shift, just think of the VALUE your customers will experience having an attorney using flat fee billing.  They won’t be nickel and dimed for every phone call, email and fax that comes through the office.  They can communicate with you as they wish without fear and they can pick their price point of choice if you have membership options.  And believe me, people are willing to pay more for certainty every time.  It’s a win-win for them– and it’s very much a win-win for the health/sustainability of your law firm.

Remember this:  People still have money to spend… even in this economy.  And they NEED your services.  It’s up to you to convey the intrinsic value of working with you (even at a higher price point) to command the income level you want…and rightfully deserve…this year.

PS- If you serve small business owners and want more information after reading this article on how you can participate in our Creative Business Lawyer Program and serve the entrepreneurial/business owner market using flat-fee, membership-based billing and differentiate yourself from all the other business lawyers out there, mark your calendar for March 18th at 12pm PT/3pm ET.  More details coming soon!

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1. It’s Not the Economy; It’s the Experience
2. Give Your Clients the Red Carpet Treatment to Succeed in This Economy
3. What Your Legal Fees Say About You…And How You Can Change That

According to the results, you are frustrated and tired of begging for business and struggling to turn a profit in your small and solo firms.  The statistics show 23% of lawyers surveyed made under $50,000 last year, while 40% of lawyers surveyed felt “very dissatisfied” with the amount they made in 2009.

A large majority also expressed dissatisfaction with the amount of time they wasted on tire kickers, price shoppers and clients who refused to pay their full fee…and quite frankly, what you know you are worth.

That’s a hard pill to swallow, especially after spending up to six figures on your law degree.

The most unfortunate part, however, is how many of these lawyers did do the right things in marketing their practices last year.   99% of lawyers surveyed tried at least one form of advanced marketing (if not many forms) and still failed to see consistent results or good ROI from their efforts.  As you can imagine, these attorneys were off the chart when it came to feeling “very dissatisfied” with their marketing efforts and practice as a whole.

But, here’s the important thing for you to know … the lawyers who felt “very satisfied” with their marketing, practices and income last year all had one thing in common:

They were not just relying on one source of business; instead, they had an automated marketing system to consistently market using a diverse set of strategies without fail-even (especially!) when times got tough.

A good client attraction strategy is like having a diversified investment portfolio.  When one sector bombs, your stock in an unrelated sector shields you from huge loss.  The same holds true with your marketing.  You want to have an integrated and coordinated marketing system set up so that if one source temporarily dries up, it doesn’t affect you.

I’m sure some of you are thinking, “Wow, that’s got to be expensive …I can barely afford to run a nice big ad in the yellow pages, let alone do all this marketing you’re talking about”.  The good news though is that some of the best strategies are low-cost or even no-cost provided you put in the time to set up the system to begin with.

The great news about a system though is that once it’s set up, it’s good to go and will produce consistent, reliable and predictable results for you on an ongoing basis.

So, what does an integrated, coordinated, automated system look like?

I laid it out in detail on this call I hosted.  Listen to it here .

And if you are ready to get your integrated, coordinated, automated system in place for 2010 and beyond, join us for our 2-day virtual event . It will change everything for you. I guarantee it.

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2. Law Practice Managment Debate: Is 2 Days a Week Really Possible?
3. 20 new clients with no legal marketing cost?

You may be wondering, ‘Is my practice next?” “How long will this last?” “Can I afford to ride out the storm?”

Here’s the good news about the economic shakedown:

I don’t want you to believe a word I’m saying here. I want you to test it out in your own business. I know it works because it’s what turned my law firm into a million dollar business within three years and has my Personal Family Lawyers and private coaching clients doubling and even tripling their income right now by making a few fundamental shifts in the way they do business.

And the really good news is that it doesn’t have to take a whole of time, effort or money to make this shift in your business. But, the return on your investment will be phenomenal.

So what does high concept/high touch look like in your law firm?

Essentially it means creating a WOW experience that appeals to all of your prospect’s or client’s senses, not just their minds.

There’s a new business model emerging as a result and if you are prepared to embrace what client’s really want . . . high concept / high touch and interaction, you will completely differentiate yourself in the marketplace and your business will thrive.

Try some of these out in your practice:

Continue reading Alexis’ guest article on Lawyerist.com……

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2. 3 Keys to Raising Your Fees In ANY Economy
3. It’s Not the Economy; It’s the Experience

I’ve heard quite frequently that clients feel as if they’ve fallen into a black hole.

What that means for you is that you can make a huge impact on your clients and turn them into raving fans by counteracting this experience.

What happens in your practice right now after your client writes you a check?  When do they hear from you again?  When do they get reminded that the investment they just made was a good one? If this follow up is happening, is it happening the same way, at the same time, for each client? Is it being tracked so you’re sure no one is falling off the radar?   

If you couldn’t answer these questions affirmatively, you are sabotaging the hard work you put into the client engagement process.

Fortunately, automating your follow-up and creating a WOW experience after the client engagement process is easier than you think.

To get started, you’ll need to set up a practice management system (there are many to choose from), or even an excel spreadsheet that lays out what needs to happen (and more importantly WHEN it needs to happen) after a prospect becomes a paying client of your firm.

Next week, I’ll outline a simple process for you to follow that will make a HUGE difference in how your clients talk about you to their friends, family, clients and colleagues, which will result in far more referrals for you. 

Stay tuned and until then think about what you’d want to receive from your lawyer if you’d just made a big investment in his or her services.

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The new world of Web 2.0 has made things a bit like the Wild Wild West in terms of law firm marketing.  Everything’s new, there’s no guidelines and quite frankly, it can be a bit scary at times.  I understand.  I was once boggled by the myriad of opportunities too.

But, you must take the time to understand your options.

In today’s world, with more choices than ever, your law firm will never have a steady stream of prospects calling if you are not marketing.  And let’s be honest, marketing can be extremely time consuming, has a steep learning curve and typically requires a lot of expensive trial and error.

Fortunately, once you figure it out, business (and life) becomes much easier.  And when you have the one-two punch of attracting the right prospects and engaging over 80% of the ones that call your office, now you’ve got a real business. [ed note: if you aren't engaging over 80% of the prospects who call your office, you are wasting a whole lot of your time & most of the money you spend on your marketing.]

I can definitely understand the desire to outsource a substantial part of your lead flow.  Who wouldn’t want someone else to handle what is for many of you the most difficult part of your business – getting the phone to ring?

In response, companies have sprung up that claim they will get your phone to ring by leveraging the power of the internet. Not all companies are the same though.  Here’s what you should look for when you are engaging any outside legal marketing company to help with your marketing:
1.  Pay for results only.

Pay-for-results or (pay-per-performance) means you only pay if you get results.  But, not all results are the same.

Beware of the companies promising to get your website to the top of the google or other search engines. That’s not necessarily the results you want or care about.  Sure, they can get you to the top of google for certain keywords, but are those the keywords your prospects are searching for?  What about all the other searches?  And, what happens when people get to your website?  Is your website primed to convert looky-loos into your clients?  If your site is like most lawyer sites I’ve seen, no.

If you are not prepared to make the time and money investment in building a website that converts (we can cover that another day), you may want to look for a company that is going to deliver you qualified contacts.

2.  No long-term contracts.

Look for a provider that doesn’t require you to sign a long-term contract.  If it’s pay-for-results or pay-per-performance, why require a long-term contract?  Either you are getting the contacts or you aren’t.

3.  Screening that benefits you and not the provider.

I’ve heard a rumor that some pay-for-performance companies screen the inquiries and cherry pick the best cases for themselves or their buddies. I understand this is most common in the personal injury arena and can’t confirm it, but watch out for it if you are 1 of 5 or 6 attorneys getting contacts in a specific area.  Look for a company that delivers you ALL of the contacts that come in for your specified area without room for discretion about which of the contacts you get and which you don’t get.

If you use these guidelines before you choose a company to outsource your marketing to, you’ll have very little, if any, risk.

And, while you know I’m a big fan of outsourcing so you can be the lawyer you’ve always wanted to be, don’t rely on outsourced marketing as your only source of leads.  Make pay-per-performance online marketing part of your mix, but be sure you’ve got your own internal systems for becoming THE go to lawyer in your local community as well.

Related posts:

1. Four Easy Ways To Recession Proof (and Grow!) Your Law Firm
2. Law Firm Marketing Strategy: Don’t Pay Lip Service to Relationships
3. Law Firm Marketing Action Plan: How to Get More Referrals in 2010

With hundreds of emails a day from clients, office staff, associates, family and friends, it’s hard to get a handle on what really needs your attention and what can wait until later.

And right now, you are the filter of it all-which means reading each and every email and responding (or forwarding them) accordingly.

Email is a huge drain that is not only keeping you from your creative genius, but also from enjoying free time and staying on top of everything you need to do to meet your client’s needs.

Hard Lessons Learned from Productivity “Gurus”

Until recently, I was very guilty of spending too much time filtering emails and responding to things that really didn’t need my attention.

A couple of years ago, I read Tim Ferris’ book, the Four Hour Workweek, and even interviewed him for the Law Business Revolution members.  Honestly, I tried to implement his suggestion of only checking email twice a day and using autoresponders to handle the rest. Sadly though, I learned the hard way that Tim’s strategy DOES NOT work for client service focused businesses!

My clients, friends and family felt the autoresponders were cold and detached from my usual attentive nature. They wanted to speak with me, their lawyer or their coach, and I was essentially telling them “you’re just not important enough for my time right now”.

Not to mention, some of the things that came through really did require my immediate attention and just couldn’t wait until my “designated email checking time” later that evening.

So needless to say, I fell of the Tim Ferris wagon very quickly.

Letting go of Your Email IS Possible

But I had to do something because my inbox was out of control. At any one time, I’d have as many as 500 emails waiting for a response from me (and that was after I had deleted the ones that I could toss or respond to quickly!)

I began to notice that my stress level corresponded nearly exactly to the number of emails waiting for my reply. I had to do something! Fortunately, after a brainstorming session with my Executive Vice President, Laura Lee Sparks, I discovered a very doable way to relinquish control of my email without letting down my clients or allowing work to fall through the cracks.

Essentially, you need to hire an email manager to act as your filter. Your email manager must be someone you trust to determine what’s important and what can be handled by other members on the team.

Your email manager will send the things that need your attention within 24 hours to a special, private email that only you and a few trusted team members know about. He or she will personally respond to everything that needs acknowledgment with a pre-scripted message that can be edited in appropriate circumstances. Something along the lines of:

Subject line: Alexis Has Received Your Message

Sincerely,
Michelle Foster

Emails should then be labeled in folders or marked with icons in your original email account so you know what needs your attention, what’s been responded to and what is just FYI when you log in to check your account once or twice a day.

Take the Leap and Let Go of Email Management!

I’m the first person to admit that delegating email to an email manager can be scary-especially for us control freaks.

But, I can promise you that once you get a system in place, you’ll never look back. You’ll realize just how much time you were wasting each day and you’ll now have more time to do that which brings more revenue and enjoyment into your business and your life.

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About the Law Business Revolution

The Law Business Revolution is a legal marketing and training organization focused on helping attorneys attract quality clients, start and manage productive law firms, systematize their businesses and ultimately help lawyers attain more time and greater resources than ever before.

Training through the Law Business Revolution includes (but is not limited to), private and group coaching led by professionals that surpassed the 7-figure mark in their own firms and businesses, client engagement strategies, client attraction strategies, educational, relationship-based marketing techniques designed to get results, lead generation training, campaigns for consumers, referrals and prospects and systematizing a firm to run on autopilot.

Licensed attorneys are welcome to download over $22,500 of free practice building resources courtesy of the Law Business Revolution at http://www.lawbusinessrevolution.com .

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