Starting a Law Firm | Spending Money to Make Money
This post is from the first blog I started, called “How to Start a Law Firm.” Over the years I’ve moved to different sites a few times and wanted to catalog all of my content in one place. If an article refers to a link and there is no link, sorry, that’s consequence of the move. Enjoy!
I know I’ve talked about this before on here (at least I think I have) but there are decision you will be asked to make every day that require you to shell out money. And I’m not talking about paying for phone services or things like that. This money decision I’m talking about typically comes in the form of you paying someone to do something you could do yourself.
Now, if you are asking yourself “why pay someone to do something you could do yourself?” this post is specifically for you.
When you first start your law firm you won’t even have to ask yourself this question – you probably won’t have any choice in the matter because you won’t have the money to spend. You’ll have to do it yourself. But once the phone starts ringing and you start actually having to manage your time and resources, you’re going to have to start spending some money – if you want to keep making more money that is.
What I’m talking about here is leverage – using what you’ve got to get even more. Leverage is an extremely powerful and effective tool if used right. And it’s easy to learn how to use it right.
Here’s a perfect example. When I started my law firm it was just me. I answered the phone, I did the paperwork, I folded the laundry, I mopped the floor, I went to court, I did it all. But eventually I found myself missing calls ordering valium online legal because I was in court so much. I found myself spending a lot of time doing paperwork and filing paperwork. All of that time I was losing to those activities was hindering me from going out and getting new work. So I hired Kelsey.
For the sake of this post let’s say I pay Kelsey $10/hour (I don’t, I pay her more than that, but it makes the math easier). Let’s say she works 40 hours a week – that’s $400 week or $1600 a month. For $1600 a month she has freed me from the responsibility of answering the phone, filing paperwork, following up with clients for documents, filling and mailing newsletters, and many other things. Do you think I can make more than $1600 with my new found 160 hours of free time? You betcha.
Yes, I know that seems like a lot of money, and I know it’s a leap of faith to hire someone and let them help you. I mean, what if you hire them and then the phone mysteriously stops ringing, right? That would suck.
But here’s the honest truth – it’s not going to stop ringing. It’s going to ring this month just like it did last month. Actually, that’s a lie, it’s not going to ring like it did last month – it’s going to ring more because you’re going to have the time to go after those marketing opportunities that you’ve just let slip away because you’ve been so busy drafting notices of appearance. You’re going to schedule more meetings because you’re not going to miss any more calls.
If you’re not ready to spend some money to make some money I get it. I was there. And that’s okay. Just know you are limiting your law firm’s true earning potential by holding yourself back.
Go get em.