For any business, choosing which road to take in the future is an important step. Setting out a strategic vision and plan for the next 3 to 5 years makes good business sense and gives all employees, managers and partners a sense of purpose and direction on which to base decisions impacting financial results.
Many law firms find themselves in an enviable position of being cash positive every month. This feature can wrongly lead firms to ignore the planning process, instead opting for the “if it isn’t broke don’t fix it” mentality.
Whilst this approach in the short term will probably seem sensible, on a longer-term basis, firms may start to notice changes in their market. Over time,
- new firms will come and go,
- technology changes the dynamic of handling certain types of work,
- fees fall / profitability becomes a challenge,
- instructions slowdown or stop from a referral source,
- a local competitor rebrands and starts to change how it talks to customers,
- you lose a key member of staff to a competitor or they start up on their own.
These are all examples of how other firms and businesses in your sector are strategising and planning to change your market for you.
Who is managing and driving your business / department forward. If the answer is nobody but you’re performing well, that’s great but is that more luck than judgement? In the longer term your competitors will catch up and maybe pass you and those long held relationships can change as people retire and move businesses.
A good question to ask yourself is are you working in the business or on the business? Are you too busy working to even think about the future? If the answer is yes, it is time to take a different approach.
Whilst there are many differing threats to the legal services markets, one of the biggest risks you will face today probably comes from your fellow competitors. They are out there considering their strategy and planning for the future.
It doesn’t have to be like this. You can have a direct impact on your business and control what happens next. Let your competitors start to worry about you and your future plans.
If you are unsure about how to start planning for the future or what to put in your strategic pan, please contact Blueprint for an informal, no obligation, free consultation. We provide honest advice about your potential and can guide you through to a positive future.
By Matthew Florendine | March 2023
Matthew Florendine is our Chief Executive and has over 20 years’ experience in the legal and insurance sectors. Matthew is a non-practising barrister following call to the bar in 1999 and he completed an Executive MBA from Bath University in 2006. Matthew is the lead in designing and delivering any long-term business strategies, as well as being able to deliver one-year business plans to achieve stability and ultimately growth.