THE MISSING COMPETENCY

As lawyers, we have been trained well in the law and how to seek out answers. In fact, I might even suggest we have been trained to become contrarians. Imagine being married to us? Law school taught us using the traditional Socratic Method to think critically and analyze situations to get a result for clients. In fact, every lawyer in the world can take either side of any issue, just ask us. But, as I coach attorneys on running their law practice, I have identified a missing “core” competency to be a successful attorney, I note a common theme. Inconsistent cash flow, frustration, overwhelmed, and worst of all, no money. While we have been trained exceptionally in the law and how to think critically and analytically for any issue put before us, I realize few of us have the competency on how to run a business. Knowing how to run a business is a core competency most lawyers are missing, but unfortunately cannot succeed without.

Fortunately for me, prior to law school, I was a Certified Public Accountant. I was born and raised in a family business and our Sunday afternoon dinner was the "board meeting." My parents did not permit me positions of authority until they were earned. I started in the warehouse then graduated to the truck driver. Eventually, I was brought into the office to learn the accounting, public relations, and other elements of running a successful business. My parents were able to increase their business 37 fold in the 25 years they owned it before selling it to the third generation in 1991. That's when I left and completed law school. So, as I entered law school, I entered from the perspective of an entrepreneur who was raised in a family business and then, while working as a Certified Public Accountant for a Price Waterhouse, got to audit the books of other businesses to see how they operated, efficiently or not.

So, how do you teach someone the core competency of learning a business? It could take years but, when a system is created, it may only require months. For example, if you do not know how to cook hamburgers but are able to buy a McDonald's, Wendy's, or Burger King Franchise, they would have all the systems, structure, marketing, and support necessary for your success. The same is true with the law. Unfortunately, since the law does not permit "franchises", you must seek out successful business models proven in the industry and help create a meaningful result for clients. I have been fortunate in creating those systems to run a successful estate and elder law practice, and it is my absolute passion in life to share them with every attorney I have the ability to interact with. Many are available for free as part of my passion to help people succeed. But, what if you choose to do it on your own? Then, you have to define how you will get there. To have a successful business, the most critical element is distinguishing and tracking revenues and expenses. You must control your fixed expenses and have as many "variable” expenses as possible. Variable expenses are important because do not exist unless there is revenue associated it; whereas, fixed expenses are there whether you generate income or not. So, if you minimize your fixed expenses and maximize your variable expenses you should be able to maintain and operate profitably. You must also ensure you have the minimum amount of sales you need to pay fixed expenses, variable expenses and YOU! You must have a sales program in place to identify how you're going to generate the necessary leads for you show clients value so they actually hire you. And finally, after using your marketing to generate leads, and showing the value, you must be able to keep your promises made and get the client the result they paid you for. If you do, they will speak well of you to their friends; the greatest form of marketing. This creates a harmonious cycle of referrals from clients. In my recent analysis of my own business, I realized more than 20 percent of the referrals into our office where coming from clients. That cannot occur unless you have a systematic approach on how to deal with clients so you, and each of your team members, can be consistent.

So, are you comfortable knowing the law alone? Don't be. Knowing the law in and of itself will not help you have a successful business. Seek out your solution on how to run a business and go. That combined with your legally technical competency is a winning combination. Receive a free 90 minute exercise “The Revenue Focuser” to see how you can begin profitability in as little as 30 days.