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I spoke with a client last month about his outstanding accounts receivable, and we agreed that he would focus his attention on dealing with this issue. He assigned two staff members to make sure all the bills were sent out on time and that clients were called who needed to be called by virtue of the age of their outstanding balances. This month, I was pleased to hear that the money has started flowing. His cash intake is 40% higher than last month because of his focus on the collection process. All bills for November went out by the 3rd; he is expecting another good month of collections. December is a particularly good month to have good collections and reduce outstanding accounts receivable. Many people will seek to put off paying bills because of the tax wrangling in Washington, D.C. You will need extra effort to succeed. What is your situation?
Breakfast with Ed in Providence, RI - December 11th, 7:30-9:30am. Contact me.
lawbiz.com |
Selling a PRE-Owned Law Practice
Pre-owned Cars
In recent years the makers of luxury vehicles like Cadillac and Mercedes have developed a marketing strategy to diminish the long-held stigma against used cars. They instead call their vehicles "pre-owned," implying that all the kinks have been worked out and that the purchaser will receive real value with almost as much prestige.
Profits = Revenues - Expenses
Lawyers looking to sell their practices can similarly maximize the value they realize from them by borrowing this concept to create a PRE-owned law practice. In this instance PRE stands for the value creation dynamic of any business enterprise: Profits equal Revenues minus Expenses, in other words, P = R - E. This dynamic applies throughout the life of a legal practice, but is especially important in maximizing practice value when the time comes to sell. A profitable practice is more valuable, and the simple fact is that lawyers who enjoy the practice of law generally have a more profitable practice.
The Secret to a Successful Practice
Are you selling your practice because you're unhappy and burned out? Or do you still love the law and enjoy helping people? The latter attitude is the true secret to a successful practice. Older lawyers who continue to apply the client service lessons presumably learned throughout their careers ought not to see the profitability of their practices in jeopardy. This avoids the danger too often faced by aging lawyers or lawyers committed to closing their practices, who may emotionally leave their clients long before they close their doors. In such instances clients become dissatisfied, profitability decreases, and the value of the firm is diminished.
Good Will and Reputation
A profitable practice shows that a lawyer is focused and passionate about the practice of law, and that they are still effective at client service. The simple truth is that such lawyers are having fun, and they are earning good money even as they are maximizing both revenues and client service. This is essential for a successful practice sale, for a practice in which a lawyer is still emotionally invested is one with a higher amount of goodwill: the client base and client loyalty that the selling lawyer has created over the life of the practice. Profitable firms with satisfied clients have maximum goodwill that can be realized in a practice sale.
The PRE-owned practice is one where the P = R - E equation is positive, assuring the seller and the purchaser of maximized value. The goodwill, the reputation of the firm, continues beyond the lawyer who built it. And that lawyer has the satisfaction of a life in the law well lived.
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Special Price:
$99
until Jan 1
(reg. $139)
Three book package!
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Looking for ways to make your practice more successful?
To Order: 1-800-837-5880 or order online at lawbizstore.com.
Keeping the financial side of your practice running smoothly requires a thorough knowledge of how generating the business, doing the business and collecting your fee intersect. Ed offers you insight on engagement agreements, pricing methods, and collection strategies to improve your firm's bottom line, as well as Disaster Preparedness to make sure your firm will be ready when the unexpected happens.
Learn more.
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What Clients Are Saying:
"I worked with Ed for a year while working to become a partner in my law firm. With Ed's coaching, I was able to achieve that goal at the end of the year. Through his coaching techniques, Ed showed me
how to communicate assertively and confidently with the partners I needed to persuade to vote for my promotion into the partnership and to convince them of my abilities. I can honestly say that without Ed's help, I would not have made such an excellent impression on my partners."
KR
"I'm gradually learning, through my weekly coaching sessions, how to get in touch with what I like to think of as my 'inner Ed.' With 'Ed in my head' between coaching sessions, I have been able to negotiate better fees and attract more work and a higher quality clientele. With Ed as my ally, the stress of being a sole practitioner is greatly reduced."
AS
New York
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