Treasure Hunt: Uncovering Potential Existing Revenue Is Even Better Than New Revenue

Business owners, including law firm owners, are always on the hunt for new revenue.  It’s like the everlasting gobstopper of planning for the next year or the next quarter. 

 

Oftentimes, the search for new revenue from new sources becomes sort of like stepping over a quarter, to pick up a dime.  New revenue can be more expensive to get, than simply uncovering additional revenue from the work you’ve already put in. 

Let me tell you what I mean, by outlining some examples: 

 

-Can you raise your rates?  If so, even an incremental increase can generate lots more money, when you consider that you bill a not insignificant number of hours every year & that you theoretically would not have to put in any extra work to generate more cash. 

 

-Are you charging for everything you could be?  If your clients call & email you all the time, track every minute, and charge for it all.  If you’re doing work outside of the original scope, there are some more hours to bill.  What if your clients need rush jobs?  Charge extra. 

 

-On a related note, if you’ve got a leaky billing funnel, fixing that can increase all of your utilization rate (percentage of time billed), realization rate (billed items that make the final invoice) and collection rate.  Not for nothing, one place where you might lose money is when staff aren’t billing to expectations.  Button that up, while you’re at it. 

 

-Heck, eliminate collections entirely, by simply automating all law firm payments, rather than trying to collect in arrears (which does not work in staggering fashion). 

 

-If you have multiple practice areas, develop a cross-selling motion to generate new types of work, from the things you’ve already done.  For example, if you’ve just completed a real estate closing, figure out a way to ask about getting an estate plan done, too. 

 

-A similar strategy could be used to remarket to existing clients, for referrals. 

 

And, this is just the tip of the iceberg. 

 

So, stop searching for revenue outside of your firm, with such mind-blowing desperation; first, look inward. 

 

. . . 

 

If you want to make more money, there are all sorts of tricks we could teach you.  Reach out today! 

Through a unique partnership between the bar association and Jared Correia's Red Cave Law Firm Consulting, Vermont Bar Association members have access to experienced law practice management consultants at a special discounted rate.

To get started, visit Red Cave's Vermont Bar Association landing page, and start running your law practice like a business.