Six Strategy Questions That Predict Your Future
There are six questions that will predict the future of your law firm. These questions portend your future income and your ability as a business leader.
If you cannot answer any of these questions or if the answer to just one of these questions makes you uncomfortable, you need to focus on your business strategy.
Listen to the audio program I recorded that discusses the importance of these questions and the strategy you develop to help shape your future.
Question 1: How does this end?
When you build a business you strive to develop something that increases in value as time passes.
Most businesses build up equity and the owner can sell them when it’s over. Professional practices can also be sold if they are built properly.
The challenge comes in setting up your exit strategy as early as possible. Why? Because you must create the market for selling your law firm.
Question 2: Where is your leverage?
There are three primary points of leverage for a law firm. They are: People, Processes and Practice (training and development of the people with whom you work).
What is your strategy to develop leverage?
Question 3: What is the lifetime value of your clients?
The most difficult way to grow is to find new clients over and over. Yet that’s what most lawyers focus on.
How deep are your client relationships? Is your law firm positioned to take advantage of the trust clients have placed in you?
Question 4: What is the predictability of your income?
How much will you make tomorrow? Next week? Next month? Next year?
If you know where your clients are and how to develop deep relationships with them, along with their lifetime value, you can easily predict your income.
Question 5: How difficult is it for a competitor to duplicate your business model?
There should be enough barriers to entry to discourage competitors from entering your practice area. Look for things that are difficult, develop a practice based upon them, and find ways to systematize your practice.
Question 6: Is it possible to plug someone into your systems and have them replicate your success within one year?
If you cannot plug someone new into your business model, that is a sign you have nothing of value to sell.
You may think these questions are not applicable to you. You may think you cannot address these issues because of the practice area within which you work. You may think it is too late for you to shift your strategic focus.
If you think any of these things, you’re wrong.
The time is now to review your business strategy through the lens of these questions.
If you struggle with the answers. reach out to me. I can help you think through these things. For an investment that can be easily recouped by attracting just one new client, I can work with you to develop a strategy that will allow you to create a bright, prosperous future.
Visit Dave Lorenzo Private Client Experience for more details.
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