“Don’t sell yourself short just to win deals,” advises Rory O’Keeffe, founder of RMOK Legal, during a recent Platforum9 Session. Drawing from his experience in both global law firms and as a founder, O’Keeffe shares practical insights on how small law firms can approach business planning effectively.
Understanding the Fundamentals
One common misconception among lawyers is the difference between marketing and sales. “You forget that the algorithm you have for Google searches or LinkedIn won’t throw your name up because you don’t have the backing of a big marketing team,” O’Keeffe explains. Instead of focusing solely on marketing, small firms need to prioritize their product, delivery model, and pricing before moving to sales and marketing efforts.
The Product-Market Fit
For small firms, success begins with defining a clear product offering. “You can’t be all things to everybody,” O’Keeffe emphasizes. “You have to edit yourself down to the core of what you want to go out there to sell.” This focus helps identify the right market and enables more effective targeting of potential clients.
Smart Business Planning
O’Keeffe recommends applying the SMART framework (Specific, Measurable, Achievable, Relevant, Time-bound) to business planning. This includes setting clear targets for:
- Financial goals
- Risk management
- Operational improvements
- Strategic initiatives
- Client acquisition
- Technology implementation
The Technology Factor
Small firms don’t need expensive, comprehensive systems at the outset. O’Keeffe suggests starting with basic tools for invoicing and matter management that integrate with essential functions like tax reporting. As the firm grows, more sophisticated systems can be implemented based on actual needs rather than perceived requirements.
Pricing Strategy
While many clients still ask for hourly rates, O’Keeffe advocates for retainer models, particularly for small firms. “The best place to be for small firms is to be on a retainer model because then you’ve got an element of guaranteed income each month,” he notes. This approach not only provides stability but encourages regular client engagement.
Growth Targets
When planning for growth, O’Keeffe suggests setting ambitious but achievable targets. “A minimum of 10% growth” should be the baseline, he advises, noting that setting challenging goals can motivate teams and drive success. However, he emphasizes that growth targets should align with the firm’s overall vision and desired lifestyle.
Client Relationship Management
Success isn’t just about winning new clients but maintaining relationships with existing ones. “You don’t know who else they’ve been talking to, what conferences they’ve been going to,” O’Keeffe warns. Regular check-ins, feedback sessions, and understanding clients’ future plans are crucial for maintaining and growing relationships.
Looking Forward
For small law firms planning their 2025 strategy, O’Keeffe emphasizes the importance of:
- Understanding your market position
- Setting clear, measurable objectives
- Implementing appropriate technology solutions
- Developing sustainable pricing models
- Maintaining strong client relationships
- Regular review and adjustment of plans
As O’Keeffe concludes, success in small law firm management isn’t just about legal expertise – it’s about building a sustainable business model that delivers value to clients while ensuring the firm’s long-term viability. “Get your pricing right, get your delivery model right, and then it makes sales a lot easier, and your marketing will have more impact.”
