Blog Archive for February 2012

Many businesses suffer from an inability to properly define their business, and law firms are no different. What types of cases allow you to be the most profitable? Many law firms simply try to take whatever case comes their way in their chosen practice areas. While some firms are successful in handling a high volume of cases, even high volume firms must define what cases are the best and allow them to be as profitable as possible.

What Cases Pay the Bills?

When looking at your firm’s cases, which ones keep the lights on and which ones make a good year a great year? Most businesses experience a phenomenon called the Pareto principle. The Pareto principle originally stated that 80% of the land in Italy was owned by 20% of the population. In business, a common maxim is that 80% of your sales come from 20% of your clients. Thus, logic would dictate that your firm should try and acquire more of those large cases that make your firm’s year. But are big cases really the only thing your firm should focus on? After all, everyone wants big cases. The answer is probably a combination of cases is most profitable.

What is My Firm’s Core Competency?

A better question for your firm to ask is what case is really your firm’s core competency? For some firms, it may be products liability or complex litigation for personal injury cases. For other firms, a core competency could be handling simple personal injury claims quickly. Whatever your firm is good at should be the type of case your firm should focus on acquiring more of. The big cases will come if you develop a good enough reputation for handling a specific type of case. It is very rare that your firm will get a crack at a large products case without first proving yourself on a smaller case. The same thinking applies to personal injury or medical malpractice as well. Some may rubbish this line of thinking by saying that luck matters more than experience in acquiring large cases. We don’t think simply chalking business up to luck is accurate. Rather, firms must make their own luck in order to be successful.

Luck = Preparation + Opportunity

A teacher of mine in high school used to repeat his mantra of luck occurring when preparation meets opportunity. In terms of business development, businesses have to make their own luck by being prepared for opportunities whenever they might arise. Law firms should also try and make their own luck in terms of generating large cases by being prepared for when opportunities come knocking at your door. In order to be best prepared for these large case opportunities, your firm needs to know what its bread and butter case is and try to be the best it can be in that particular practice area. Through experience and developing a strong track record in trying certain cases, your firm will be able to capitalize on opportunities and see more of the types of cases that keep your law firm afloat. Many of these high value cases will come from referral sources as we have stated before, so it is in your firm’s best interest to handle every case with the same attitude and dedication no matter its value. You never know when a small case can turn in to a business development source. To learn more about generating high value cases, contact Network Affiliates today.