New year, new firm

We are now in 2015, an election year, which means five months of promises, continued low interest rates and increased investment in capital projects. Whoever wins the election is facing a huge national economic debt that will need to be addressed. It is, therefore, essential in these 'false dawn' times that we make New Year's resolutions and follow them through. Below are a few to embrace.

1. Plan your future

In the last six months, more firms have decided that they need to engage and establish their strategy than in the last six years. Additional revenues have given both the headroom and confidence to begin the inevitable process of change. Make it your resolution to arrange a meeting with your fellow partners and colleagues to decide what sort of firm you want to be in five years' time - do you retain your independence, consider being acquired or merge with another firm?

2. Corporate governance

The Chancellor of the Exchequer's Autumn Statement has taken away the opportunity for goodwill transfers into limited company structures, but this should not stop you making a resolution to examine the advantages of converting your partnership or LLP into a limited company. Succession and exit planning, outside investment, plus the added opportunity to run your business properly, should encourage you to consider a corporate structure.

3. Cash management

Resolve to change your terms and conditions and inform clients that you need either cash in the client account or invoices to be paid within seven days. Lock-up has to be reduced to give you the headroom to invest in your business.

4. Under-performing staff

In his book Good to Great, Jim Collins says businesses that accept mediocrity as the norm never become great. Accepting underperformance in partners and fee earners means you will never be successful. Make it your resolution to address this fundamental issue with your colleagues - people make your business work but if you don't have the right ones, business will continue as it is. Mediocrity is no longer acceptable.

5. Technology

By utilising hosted private platforms and cloud technology on a pay-as-you-use basis, you can embrace technology. Recognising technology is the key to many a firm's future and failure to do so could result in your firm being left behind. Not only does it improve efficiency, but it will also reduce staff costs and overheads. Yes, there will be occasions when clients pay a premium for the 'grey matter', but will that be an exception or will it become your only income stream? If you are to compete with others then your only option is utilising and embracing technology.

6. Find your niche

What makes you different from your competitors? What will encourage clients and customers to return and how will you win and convert new business? If you fail to embrace social media and other forms of specialist marketing, your firm will fall behind those that do. Identify your specialisms and exploit them.

7. Become more accessible

Clients want access to their solicitor when they choose, not when you decide. Outsource your telephony to make yourself more accessible and be available from 8am to 8pm, six days a week. You can have calls patched through to your mobile - converting one new matter per month will more than pay for this service.

8. Lean management

Investigate how much of your back office work could be outsourced. Most of the non-critical but essential aspects of running a law firm can be outsourced on flexible contracts and can be turned up or down as required.

9. Converting business

'Sales' is not a dirty word and your resolution should be to train some, if not all, of your staff in converting new business and cross-selling. If fellow partners, fee earners and support staff are not capable, then replace them with people who are. You can outsource this function as many forward-thinking firms are doing, both for inbound call-handling and to dedicated teams of business development specialists. It's hard enough in this market to even be considered to provide a quote; therefore, ensuring you convert calls into new instructions is an essential part of your future.

10. Do something

2015 could well be the year we see some of the zombie businesses fail: doing nothing should not be an option, and making a resolution to take at least one of the above steps should start your firm thinking about future strategy. I have received at least one call per week in the last six months from firms that have decided that now is the time to change. If you don't, it might well be too late. SJ

Viv Williams is the CEO of 360 Legal Group