By Gretchen Selfridge
Whether you are starting up your legal business or have been in practice for a long time it is easy to let your operations take a back seat. And, while your cases are your mainstay, high operational costs can be a significant drag to your business, decreasing your profitability and draining your resources. Sometimes it is the costs that are in the background, set up once and long forgotten where significant efficiencies can be found.
As we near springtime, it is a good time to look at contracts, make a few phone calls and reevaluate your business needs which change over time whether it is growth, employee changes, economic impacts or personal ones. Most likely, the size of your business and your risk taking vulnerability will change at a more rapid pace than your business arrangements.
A good place to start is to take a look at any recurring expenses – monthly, quarterly, annually and question each one. In some cases you may be able to trim down, in other cases, increased capacity is what may be needed.
To get your thoughts started:
Review your insurance coverage – legal malpractice, errors and omissions, workers compensation and office package policy. Check with your broker to make sure you are adequately covered – not too much, not too little, to protect yourself, your partners and your business.
What costs do you outsource – payroll, accounting, IT and others. Make a few phone calls to ensure that the fees you are paying are competitive and what you are getting is what you want.
Look at your telecommunications costs – what cell phone plans do you have. Do you have more capacity than is needed? Are you running into additional costs that can be avoided? Don’t forget your office phones as well – number of lines, perhaps you have an unused fax machine. Increased bandwidth on your internet may save you time and frustration as well.
These are just a few examples. This is one of those cases that a few phone calls in a short period will get you back in touch with your costs and you may find some quick areas to implement cost savings or areas for better efficiency may be found.
Nielsen & Geenty Insurance Services, Inc. is an insurance brokerage specializing in Lawyers Professional Liability Insurance. Cedar Ridge, CA (877) 856-9231