Most businesses have the advantage of one owner, a small executive team, and an understanding that the business needs to grow. However, with law firms, you have many more people involved in the decision-making process. Not to mention that it takes a lot of work to run a law office.

There will undoubtedly be some hiccups along the way to success, whether you're operating a small law business or growing to become a more extensive legal practice. When providing legal services, you must make sure your staff is the best on the market, your marketing is effective, and your client relationships are excellent.

Is there anything else to consider?

The answer is yes. Managing a legal practice involves more than just attracting the best clients; it also affects how well your company is set up.

A profitable business could fail if it cannot handle a growing workload due to bad administrative procedures. Additionally, managing a law firm involves effective communication, which may be attained with practical, dedicated software.

And it is not all. Law firms must improve their game regarding technology, marketing, finances, leadership, HR, and more. So let’s talk today about some of the challenges small and large legal practices face and what managing partners can do about them.

Work From Home Is the New Normal

Many of your employees may work remotely if your company has partners in other countries or worldwide. However, even if all your clients are local, many still work from home. Today, remote work is typical; therefore, many teams at small or large law firms will only be returning to the office.

How do remote work and legal practices get along? The answer is technology.

Remote work has become substantially easier thanks to secure cloud applications created especially for law firms. You can set together a firm-wide technology strategy with a cloud-hosting provider or technology consultant.

Your team will be able to work together efficiently thanks to an excellent legal practice management application, which provides a central location for organizing activities and projects and links your calendar, documents, and emails to client cases.

Find a management software that supports your practice area and jurisdiction and embrace the new world.

There is a Rising Need for Delegation and Hiring Outside Experts

According to the experts at howtomanageasmalllawfirm, managing human resources is a challenging and dynamic task in legal practice. You must ensure you have the proper experts on the team and that the team is engaged and focused on providing our clients with outstanding service as administrators and managers of the legal industry.

A skilled law firm administrator must also know the firm's objectives while negotiating the complex web of state and federal rules governing employment and benefits.

In other words, one or more managing partners in a law firm might not be enough in today’s economy and competitive environment. Instead, it is possible to bring outside experts such as your business manager, human resources expert, COO, CFO, IT experts, and more. These professionals can carry the business while your lawyers perform their legal obligations for the clients.

In the current setting, you need to make the most of your time, which is your most precious resource. Thus, consider delegating administrative and non-billable tasks. Lawyers and paralegals can work more efficiently and profitably when they can concentrate on the needs of their clients with fewer interruptions and distractions.

Having your personnel specialize in particular jobs and work areas is another way to increase productivity. For example, in smaller law firms, it is typical for one employee to serve as the office manager, billing coordinator, paralegal, and even part-time receptionist. Given the staffing challenges of beginner law firms, this makes sense.

However, outside bookkeepers, virtual receptionists, and team members who are specialists in particular duties (like IT, marketing, office management, etc.) can frequently complete their work more quickly and occasionally for less money.

Law Firms See More Financial Challenges than Other Businesses

Unique financial and budgetary considerations are challenging law firms these days. As a result, the fundamentals of law firm financial statements, cash management, trust accounts, and client costs, as well as management and profit centre reporting, alternative business entities, ownership compensation models, alternative/appropriate fee arrangements, and legal process/legal project management, are all mandatory concepts to consider.

Regarding financial operations, law firms need to:
  • Examine and implement ways to increase sales and reduce costs to increase profitability.
  • Determine the benefits and drawbacks of the ownership structure for your firm.
  • Decide how to embrace fee choices and connect service value to price more effectively.
  • Improve the management of legal projects and processes.

Bottom Line

Growing a law firm takes time. It would help if you built up a strong and steady firm reputation to attract new clients and retain current ones. Your reputation will also dictate the fees your contract for your services and how much you pay out in bonuses to your staff.

In conclusion, law firms need to be managed differently than other types of businesses, especially if you want them to run successfully and at the highest level possible. However, if you take the time to understand your firm's challenges and manage them intelligently, you can navigate the current realities successfully.