057: Preparing For The Next Economic Crash
The world moves in cycles.
Every up has a down.
We’ve been up for a long time (7-10 years) and we’re due for a down cycle.
Is your law firm ready for a crash?
After this it will be.
Here are three ways to prepare for the pending economic downturn.
1. Perfect Your Systems
Efficient systems ensure a few different things.
First, they ensure a great working environment.
Second, they ensure a great customer experience.
Third, they ensure a steady flow of clients to your law firm day after day.
These three truths operate in reality whether times are good or bad.
The better your client and marketing systems are, the more equipped your law firm will be to handle a crash.
2. Create A War Chest
There is nothing safer and more comforting than cash.
Cash pays the bills. Cash keeps employees around.
And cash gives you the freedom to make rational decisions when things aren’t going well.
I’m building up a war chest right now. My goal is to have one years worth of cash on hand at all times.
I’m not doing this so I can go a year without getting a new client.
That will never happen.
I’m doing this so I can always act from a position of power.
I’m doing this so I can secure a line of credit from the bank to increase my purchasing power even more.
Be Fearful When Others Are Greedy And Greedy When Others Are Fearful
The cash on hand that I was just talking about allows me to do two primary things during the crash.
 Keep marketing and advertising like I was before.
 Take advantage of situations that arise for me to be aggressive.
This could mean purchasing a practice that is struggling.
It could mean doubling my advertising efforts to corner the market (it’s easier during a crash because everyone else is contracting).
It could mean going into another advertising platform where there is now fresh opportunity for growth.
Bottom line – the winter (crash) is coming. Be prepared.