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LawBiz® TIPS – Week of September 29, 2015

LawBiz(r) newsletter

Two Ideas to increase cash in the bank:

Collect your already billed fees for work performed; be more vigilant.

Demonstrate the value you can provide to new prospects resulting from your expertise in their industry and your service ethic.

As summer ends and before the mood changes to holidays, examine the progress you've made this year. Look at the good stuff and stay focused.

Ed signature

Don't Count on One Big Fish

A fishermen who spends hours trying to reel in one big fish wins big if he ends up pulling that fish into his boat. But if the line breaks or if the fish disengages itself from the hook, then the fisherman has lost in a big way, and he has no other smaller fish to compensate for the loss.

Similarly, what if you lost your largest client? What impact would that have on your practice? That depends on how large your practice is and how large the volume of revenue is that you receive from a given client.

You always have to balance the size of the book of business versus the size of the revenue in the firm. The bottom line is that at no point should any single client represent more than 10 percent of your total revenue. If you lost 10 percent of your revenue, it would hurt but it wouldn't cripple you or force you to close your business. You could go on and build other areas of your practice or bring in other lateral partners and associates as a replacement of that 10 percent. That 10 percent magic number is sacrosanct. I learned that in industry, and I carried it forward in professional practice as well as now in coaching and consulting.

I'm not suggesting that you get rid of the client. I'm not suggesting that you do less work for the client. I am suggesting, however, that you put greater emphasis on increasing your revenue so that you make that client less significant in the totality of your revenue consideration.

I am also suggesting that you be careful on the capital decisions you make unless you have an even flow of revenue spread out among a variety of clients. Do not make capital decisions based on the continuation of revenue from any client who represents more than 10 percent of your revenue.



Don't Count on One Big Fish

Check out this month's special!

LawBiz® Registry: Buy or Sell Your Practice

Ed Poll on YouTube

Buy or Sell Your Practice 

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New Life After Law Coaching Program



"Ed's command of the podium and his connection and interaction with the audience were outstanding. His skills enabled us to successfully implement a new culture into the organization without damaging our relationships with outside counsel."

Torrance, CA

"When I had my own private practice as a solo practitioner, I wanted to run my office as efficiently and profitably as possible. I researched business coaches and discovered that most had "passive" models as their basis for coaching, i.e. they would promise all the things they would do for my practice without my having to invest time and energy into the process. I'm so glad I chose Ed Poll instead, for he had an "active" model, i.e. how much I got out of the coaching was directly dependent upon what I put into it. Over a period of six months, Ed conferenced with me and gave me weekly assignments for structuring my practice as well as giving me tips on how to work with clients from the initial interview through to the end of the case. After working with Ed, I didn't have a single outstanding account receivable over $500. The time I spent working with Ed was invaluable and I would recommend him to any attorneys interested in improving the quality and profitability of their practices."

Los Angeles, CA

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London, England


Ed Poll, LawBiz® Management   |   |   |   |


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