With the current mass layoffs from the likes of Google, Amazon, and Twitter, it’s simple to think about a looming (or current) financial downturn. Some practices are comparatively recession-proof. However, all companies would seemingly profit from asking what they’ll do if the demand for authorized companies decreases.
Considerably counterintuitively, we’ve additionally seen a decreased urge for food for outdoor funding in authorized know-how merchandise. After a slew of acquisitions over the previous few years, it seems that non-public funding is beginning to dry up. Which makes some sense. On the entire, attorneys are seemingly going to spend much less cash within the close to future. That means, they’ll seemingly spend much less on their know-how.
But, to be able to compete in a recession, know-how is simply the factor attorneys must be doubling down on.
Small Agency Authorized Expertise
There are two methods to compete with different attorneys in an financial downturn. Legal professionals both have to win the prevailing pool of potential new shoppers or broaden the market they will serve. Authorized know-how, and know-how as an entire, may help with this.
Enhancing Productiveness
Most attorneys know that know-how may help companies automate duties and improve effectivity. Though they aren’t at all times implementing applicable procedures, they’re conscious of the capabilities, nonetheless. Investing in know-how that helps improve productiveness lowers the price of doing enterprise. This, in flip, implies that a regulation agency can both lower its costs or improve its margins.
Growing Shopper Satisfaction
Along with enhancing productiveness, know-how may help regulation companies improve their shopper satisfaction. Whether or not a agency attracts shoppers by referrals or Google evaluations, joyful shoppers usually result in extra shoppers. Utilizing shopper relationship managers (CRMs) to trace and delight present and potential new shoppers can simply be the sting one wants in a aggressive market.
Broadening the Market
Maybe extra subtly, know-how can even assist companies broaden their market. No, we’re not speaking about utilizing Chapter software program to interrupt into a brand new space of regulation (though that has worth). Right here, we imply offering worth that present shoppers didn’t essentially know a agency had.
Many instances, this implies productizing present companies, like, providing automated residential leases. This may act each as a supply of a gentle earnings and as a lead magnet.
Different instances, this will imply educating shoppers about what a regulation agency can actually present. May a regulation workplace be a spot the place native companies get collectively in Mastermind classes?
Investing in Authorized Tech
It doesn’t matter what strategy a agency takes to organize for financial uncertainty, one factor is evident—know-how may help. We by no means advocate merely throwing cash at software program corporations. However tightening the belt mustn’t come on the expense of effectivity, productiveness, or safety. In reality, as one can see from above, that is the time to do extra with know-how, not much less.
Subsequent Steps
In case you’d prefer to study extra about how to decide on authorized know-how, try our Field Guide to Buying Products and Services. There, you may study various kinds of authorized tech, what they’re used for, and which of them is likely to be proper to your apply.
Final up to date February twenty third, 2023