Law Practice Money: Where Should You Invest?

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Chances are the one thing keeping you from the success you want in your practice (and your life) is the way you are thinking about money.

In all my years being an estate and business planning attorney and then teaching and coaching lawyers and business owners…

What I’ve come to see is that people who aren’t stressed out about money are happy. People who are stressed out about money, aren’t happy.

It doesn’t have anything to do with how much money they had or didn’t have, it had to do with their thinking about money, how they used it, what they did with it and how they felt about it.

So, if you want to be a happy lawyer (and I know you do, or you wouldn’t be here), then it’s time to get unstressed about money and recognize money for what it really is — a tool to support you to have the life and business you want. That’s it. Nothing more, nothing less.

Geoff Hoatson, one of our Personal Family Lawyer® members, recently posted this in our forum:

“I have a close friend who is a CFP, and we were at lunch one day. I asked him ‘hey, I’m where I want to be with my personal savings, do you have any recommendations for investing anything over that?’  He stopped and thought for a second then gave me some of the best advice I’ve ever received. He said ‘If you gave me $100,000, I could maybe earn you $5-10,000 in a year. But if you invested $100,000 into the Hoatson Law Firm, you could make what? $300,000? A million? Investing in your firm is the best investment you could make.’

That advice has really guided the way I’ve been viewing my marketing over the past 4-5 months and I really feel like it’s something that everyone should keep in mind as they try to grow their practice. I’m not saying that you should spend money flippantly, or that you shouldn’t keep a VERY close eye on your ROI. However, you can’t be afraid to spend money when trying to grow.”

That’s some of the best advice I’ve heard in a long time when it comes to money.

What is the best investment you can make right now?

An investment in growing your practice into a sustainable, thriving, service machine that makes you the go-to lawyer in your community.

Once I realized this, everything in my life shifted. I stopped being stingy. I stopped looking for places I could scrimp and save. And I stopped asking how little can I pay and started asking how much can I invest?

I began to measure my investments in “how many new clients will it take to pay back this investment plus plus plus?” If an advertisement could pay for itself with one new client and I thought getting one client was reasonable, I did it.

If investing in a training was likely to bring one new client (or, even better, a few new clients a month), I would jump on it because I knew the ROI would be worth it.

What’s the key to knowing whether your investments (of not only money, but also time and energy) will pay off and be worth it?

You need to know that you can engage just about every prospect you sit down with and for higher fees than you have ever commanded before.

Once you know that you can engage just about every prospect who calls your office, investing in the growth of your practice — marketing, client service systems, trainings, team members and even beautiful office space — becomes not only easy, but desirable.

But, it has to start there. If you do not have a system for engaging just about every prospect who calls your office, there’s some part of you that worries your investments may not be worth it. And that part is smart!

If you cannot engage at least 75% of the people you talk to, that’s the first thing you’ll want to fix. Once you do that, take the doors off — invest as much as you can in everything you can to get the right people calling your office and meeting with you for an educational meeting that will knock their socks off.

Published In: Firm Marketing Updates

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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