SO HOW DO WE DEVELOP OUR LEGAL BUSINESS?
You have been practicing law successfully, handling files, winning cases, working tirelessly and billing many hours. But, now you hear you are expected to engage in business development. “What does that mean? How do I do it? Where do I find the time? I was never taught anything about this in law school!"
As we progress from young associates to successful majority partners, we learn that we are expected to develop business for the practice. Yet, we need training in business development. We never learned about it in law school. We have so little time. Why is this important, and how can we make it happen?
In today’s newsletter, I will discuss why business development is so important to us, some of the common obstacles we encounter, and a step-by-step process for you to get started in building your book of business.
Why is business development so important?
In summary, the compelling reason why business development is so critical is to grow your financial leverage and success. Your value to your law firm is not based solely on how well you perform as a lawyer, how many hours you bill, or your success rate. A law firm is a business. It is about generating revenue and becoming more profitable. Therefore, to be a partner, to have a bigger share of the pie, or to develop your own profits, you must learn how to develop your business. Building your book of clients makes you more valuable to your firm and gives you the freedom to move somewhere else if you wish.
These are some of the many ways that business development is so important to you:
Staying competitive. In today’s legal market, competition for clients is fierce. Focusing on our business development allows us to differentiate ourselves from our competitors and stay competitive.
Building relationships. Business development allows us to build relationships with potential clients and referral sources. Those relationships are valuable in generating new business and developing a network.
Generating new clients. An effective business development program helps us to attract new clients and grow our client base.
Increasing revenue. Our business development activities help us to increase our revenue by attracting higher-paying clients and securing more work from existing clients.
Developing leverage with our firm. When we have a sizable book of business, our firm has a greater desire to promote us, make us a partner, and give us a more significant share of the profits. As a result, we obtain leverage over our future with the firm.
Securing personal freedom. When we have a sizable client base and a large amount of annual revenue, we can take our book of business to another firm that is more attractive to us or to open our own firm. We will have the freedom to choose the future we want.
What are some of the most common objections lawyers make to business development?
“I don’t have enough time.” We have to bill so many hours. There seems to be no time in the day. Due to our heavy workload and demanding client needs, we often have limited time to focus on business development. As a result, it can be challenging to develop new business and build relationships with potential clients
.“I don’t know what to do.” We have not been trained in business development. We did not learn anything about it in law school. Our present firm expects us to grow a book of business but has not shown us how to do it. We feel lost. We do not know how to market our services effectively.
“My strength is in working files.” We often know we do great work as lawyers and prefer to focus on our legal work. That is our comfort zone. As a result, many of us resist change and hesitate to invest time and effort into business development.
“I do not know enough people.” Many feel they have a limited network of contacts. They are uncertain about how to leverage their existing network to generate new business effectively.
‘I need more support.” Unfortunately, some law firms do not provide sufficient resources, such as marketing and business development support. As a result, it is more challenging to succeed in developing new business without that support.
So, how do we successfully build our book of business?
It can seem like a daunting task, but it is so important. Here are ten steps to developing your business development plan:
Develop your niche. What is your particular area of expertise? What is it that sets you apart from other attorneys? What is the legal field in which you excel? Concentrating in a particular area of law can help you differentiate yourself from your competitors and position you as an expert in that field. The more specific your niche, the easier it will be to differentiate yourself.
Identify your target market. Who are the potential clients you wish to attract? What area of business do you want to serve? Identify the types of clients and companies you want to help. Then tailor your business development efforts to reach just the right people.
Build your network. Find ways to connect with potential clients in your target market. Attend industry events, and join relevant associations and groups. Find ways to communicate with colleagues and potential clients pertaining to your service area. For example, I used to work in insurance defense primarily focused on transportation. My clients were specialized insurers who insure trucking companies and self-insured trucking companies. I joined various professional associations relevant to those industries, participated in conferences that insurers and trucking companies attended, and developed true expertise in that arena. Also, connect with other lawyers who can be referral sources and power partners. Developing a strong network will help you generate leads and referrals.
Choose your own path. We each have our own individual talents and preferences. Be yourself. Utilize your particular skills to approach business development consistent with your preferences. For example, if you are a skilled writer, write for journals in your area of expertise. If you enjoy speaking, find conferences at which you can be a speaker. If you prefer connecting personally, find a networking group you can meet with regularly. You do not have to do everything. You should pick the path that you are most comfortable with and that works best for you.
Establish yourself as a thought leader. Share your expertise by writing articles, speaking at conferences, and offering to serve as a source for media interviews. As a result, you can become known as the leader in your field. In this way, you will establish your credibility and visibility in your area of expertise.
Focus on exceptional client service. Delivering superior services and exceeding your clients' expectations will help you build a positive reputation in your field. In addition, providing outstanding service to your current clients will lead to repeat business and to referrals to new clients.
Market effectively. Develop effective marketing strategies to attract clients. Build a compelling website. Create excellent social media profiles. Perhaps advertise in relevant publications.
Be proactive. It does not work to wait for business to come to you. Instead, contact potential clients and referral sources to introduce you and your services.
Leverage technology. Use technology to streamline your business development efforts such as email marketing or tools to track your leads and contacts.
Measure your results. Regularly track and evaluate the success of your business development efforts. This will help you determine what works best and what needs to be modified.
Conclusion
Business Development is a daunting task. We face a lack of time, inadequate training, and our own limiting beliefs. Yet, it is critical to our success and freedom. Apply these ten steps to grow your business today!