Better Business DECISIONS It’s In the Numbers
ot Fads
4. Will what’s happening shift behaviors or create new needs, new markets, or new customer segments?
How do you determine the time and money to spend on business development and marketing? When can you afford to hire an additional paralegal or associate? How much revenue must you collect every month just to keep the office running? How much money can you take home from the business every month?
It can be really tempting to jump onboard with fads, but you don’t want to build your business on something that isn’t sustainable. Look for trends that lead to newmarkets and learn how you can fill those needs in the long term. Slow Cooker Raspberry White Hot Chocolate
These are all questions that can only be answered by looking at your numbers regularly and knowing them intimately.
You can manage what you measure. You may have a gut feeling of how your practice is doing or how close you are to achieving your goals. However, regularly measuring the performance of your firm’s various aspects gives you essential clarity and awareness.
INGREDIENTS • 1 cup white chocolate chips • 14 ounces sweetened condensed milk • 2 cups heavy cream, divided INSTRUCTIONS 1. In a slow cooker, combine white chocolate chips, condensed milk, 1 cup cream, and milk. Cover and heat on low about 2 hours. 2. In a large bowl, mix remaining 1 cup cream, powdered sugar, and vanilla.
• 3 cups milk (any variety will do) • 2 tablespoons powdered sugar • 1 teaspoon vanilla • 4 tablespoons raspberry liqueur or syrup 3. Using a hand or stand mixer, whip until stiff peaks form. 4. Serve mugs of hot chocolate with about 1 tablespoon of raspberry liqueur or syrup to taste and a dollop of whipped cream.
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Look at your bank statements regularly.
• Use a simple spreadsheets or financial reports from your accounting system to track a short list of KPIs (key performance indicators) that are meaningful to your practice and its goals.
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Look at your top and bottom line.
• Write down how many new clients you get each month and track where they are coming from.
• Figure out which type of cases are the most profitable.
• Track how much your overhead increased since last year.
The answer to most of your business questions can be found in your numbers. If you have a steady stream of new clients, but you have a hard time taking home enough money, focus on evaluating your pricing structure and your employee cost. Prudent law firm owners also realize the importance of having an updated cash flow report and budget. Don’t be afraid — creating them is easier than you might think!
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