During the great recession in 2008, numerous law firms across the US felt the effects of the downturn. Some strategized their way out of the economic plunge, while others had to shut their operations. Recently, the global economy has been going through an unprecedented growth spurt. While this recession is different from past recessions because it's affecting businesses large and small, there are some similarities between them. For example, both recessions have caused companies to cut their spending on legal operations as well as services such as marketing or IT.
How do law firms and legal professionals survive this economic downturn? How do we come out of this recession? As a law firm owner, you're always looking for ways to keep it running smoothly and efficiently. If you've been working in legal operations for a while, you know many important tasks are involved in keeping everything organized and running smoothly.
One of the essential things legal operations does is help businesses manage their data so they can make smart decisions based on real-time analysis of their finances. This means using technology like a SaaS-based platform or cloud services that automate processes so they don't have to spend as much time doing them themselves and saving money.
Another reason why it is recommended to focus on legal operations: it helps you grow! You'll have access to more opportunities because all of this work will go into assisting people in understanding how their information should be used by anyone else who needs help accessing it.
Legal operations are not just about how to deal with the external environment but also internal processes. It's a process of entity management, including all the data related to them. The legal entity in question must be managed to operate effectively, efficiently and legally. The process involves all steps, from creating a new entity through its registration and regulation as well as payment processing operations.
Making sound decisions ahead of time and acting now can help ensure that your law firm not only survives during tough economic times but thrives. Here are some ways your company can better prepare for a coming recession, grow business, and engineer your soft landing – no matter what happens.
Cash inflows and customers are any business' lifelines. They must be protected. Your law firm might operate as planned with a healthy inflow and outflow of cash. Likewise, decreasing expenses is key to controlling your outflows of money. Additionally, nurturing relationships with your customers and clients will help you retain and grow your business.
Expanding your law firm's offerings can help further reduce the risk for your business if and when the economic dip occurs. Extend your services to more audiences, grow your services portfolio and diversify your workforce strengths. Ultimately, diversifying allows your law firm to deliver more services in more ways to even more clients, resulting in more significant and diversified revenue streams.
Investing in the right technology for your law firm can save money, help you be more efficient, serve your clients in the best possible way, and enable you to focus on day-to-day activities that contribute to your bottom line. Platforms like Traact can ease your legal team's workload by automating redundant tasks and reminding them to perform crucial tasks. Entity Management, Contract Lifecycle Management, Permits and Licenses, Board Meetings, Matter Management, and Dispute & Litigation can be easily handled with the new-age platform.
Justifying cutting expenses during recessions is easy. Intelligent business leaders know it is just as important to make tough decisions during the good times as terrible. The key to surviving a recession is to analyze your budget and get your law firm in order economically. Take an in-depth look at your law firm and its parts. You can better determine which factors are critical to your firm's overall performance and success; and which aspects can be eliminated to run lean before the next crisis comes around.
Recessions are inevitable, but proper preparation can help your law firm come out on top during the downturn. The fact is, everyone needs legal services. If they don't have access to legal representation, they are at a massive disadvantage in their dealings with the law. So the question is, how can we ensure everyone has access to the best legal services possible? Get in touch with us at firstname.lastname@example.org or book a free consultation today.