I often talk about the different phases of law firm growth. Firm I work with generally fall into three phases;
Small solo firm with one or two support staff bringing in a mid six figure revenue - These firms benefit from professional law firm bookkeeping.
Firms looking for growth and looking to scale from six figures to seven figures - these firms may be ready for introductory fCFO services and professional bookkeeping.
Firms that are solidly in the $3-$6 million range looking to reach the next big milestone of growth with a larger team - These firms should be working with a fCFO and making strategic financial decisions.
Today I want to talk about that firm in the middle section. The firm owner who has made a decision to grow and exceed that 7 figure revenue goal this year. THIS is the firm that is ready to start with fractional CFO services.
As law firm owners strive to grow their firms from mid-six figures in revenue to the coveted seven-figure mark and beyond, a profound transformation in mindset is not just beneficial—it's essential.
The journey to scaling a law firm is marked by significant changes, including the hiring of more associates, paralegals, and support staff. This growth is not just about increasing numbers; it's about strategically building a team capable of handling an increase of clients and work, leading to continued growth. For many law firm owners, accustomed to a hands-on approach with every client, this transition can be challenging.
Law firm owners have to come to terms with the fact that their firm will serve clients they've never met personally. Moving from being involved in every case to overseeing operations from a distance marks a significant shift in role and perspective. This evolution can be hard for solo practitioners who pride themselves on personal client relationships.
Another critical mindset shift revolves around financial expectations and achievements. Many law firm owners start their practices with modest financial goals, often aligning with the mid-six-figure income bracket. However, breaking into seven figures, something you as a firm owner may have never imagined, can come with a shift in mindset.
A firm owner should reflect on and adapt their mindset concerning these two key areas: operational growth and financial success. By recognizing and addressing these hurdles, firm owners can more effectively navigate the journey from a solo or small practice to a thriving, high-revenue firm.
Scaling a law firm requires more than just strategic planning and business acumen; it demands a profound shift in the owner's mindset. As legal professionals embark on this journey, understanding and embracing these changes is crucial for achieving sustained growth and success.
Bringing in outside vendors, such as a fractional CFO, can help you navigate these changes in your firm. Sometimes it is good to have an outside perspective that reminds you why you decided to pursue these big growth goals.