Law Firm Growth Checklist: 12 Steps to Sustainable Success

Want to grow your law firm? Here's a 12-step checklist to boost your success:

1. Set clear goals
2. Plan your finances
3. Create work systems
4. Improve client services
5. Grow your team
6. Build better marketing
7. Track money health
8. Use better tools
9. Keep clients happy
10. Add new services
11. Build partnerships
12. Plan for size

Why use this checklist? Simple: businesses with plans are 30% more likely to hit their growth targets.

Join Mastery Group if you want even more structure and a community of like-minded law firm owners to tackle growth with.

This guide covers four key areas:

• Foundation Building
• Action Steps
• Sustainability
• Expansion

Follow these steps to aim for a healthy 30%+ profit margin. This is what we target for our clients.

Ready to grow your firm? Let's dive in.

Quick Comparison:

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Building Your Foundation

A solid foundation is key for law firms that want to grow.

Let's look at three areas that'll set you up for success.

Set Clear Goals

Want to keep your firm on track? Set clear goals.

It's not just a nice idea - research shows it actually boosts how engaged your team is and how well your firm does overall.

Make your goals SMART:

• Specific
• Measurable
• Achievable
• Relevant
• Time-bound

Break big goals into smaller chunks. It's easier to see your progress that way.

At Velocity Work we set what we call "Rocks" each quarter, and we keep you and your team accountable to them.

Plan Your Finances

Want your firm to grow and stick around? You need a solid financial plan.

Aim for a 30%+ profit margin. Here's what to include in your budget:

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You can set yourself up for business success the same way you would prepare for a case.

Use reliable, unbiased evidence to support every number and projection in your financial plan.

Create Work Systems

Good systems help your firm grow.

Law firms using cloud-based practice management tools see 20% more casework and 26% more revenue. That's a big deal.

In 2023, 81% of law firms started using more automation for things like:

• Signing up new clients
• Creating documents
• Billing
• Tracking time
• Talking to clients

Velocity Work members share automation tips with one another on an almost weekly basis, increasingly testing and implementing AI solutions for caseload management, email triage and other tasks.

But here's the thing: you need to measure how well these systems work.

Keep an eye on things like how much you bill each month, how much of your work you actually bill for, and how much of that you collect.

Check these numbers regularly to see what's working and what needs to change.

Taking Action for Growth

You've laid the groundwork. Now it's time to push your firm forward. Let's zero in on three key areas that'll drive growth.

Improve Client Services

Happy clients = growing firm.

It's that simple. But here's the kicker: BTI Consulting Group found that poor communication is a top reason clients ditch their law firms.

Even worse? Only 4-5% of unhappy clients speak up.

The rest? They either put up with bad service or quietly take their business elsewhere.

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All of these tips are strategic initiatives in and of themselves. It's important you're tackling stuff like this regularly, at least on a quarterly basis.

You can make a ton of headway on your client experience quickly, especially if you team is on board to help.

Grow Your Team

Want to grow? You need a solid team.

And get this: good teamwork can boost productivity by 30%. So, hire smart and develop your people.

Don't wait until you're swamped to hire. And don't rush to hire people who aren't the right fit.

Figure out what roles you need to grow, and fill them proactively. And hey, if full-time hires aren't in the cards, consider outsourcing some legal processes.

To do this well, you need to be planning out the next quarter and your annual goals really well - otherwise you're going to end up hiring blind.

Build a workplace where people want to be.

Encourage open talk and teamwork.

Set up regular check-ins and clear reporting to keep everyone on the same page.

At Velocity Work our clients revisit their accountability charts regularly, which outline roles, responsibilities and areas that need more coverage across the entire firm.

Build Better Marketing

For small law firms (especially those under $1-2 million in revenue), less is more.

Pick one marketing channel and nail it with a clear message.

Here's why it matters:

• 75% of online searchers never look past page one of search results. SEO is key.
• 66% of online consumers prefer short videos to learn about services.

Want to market better? Try these:

• Create content that solves client problems
• Optimize your website with pages for each service
• Get involved in local events
• Start an email newsletter to stay in touch with clients

And don't forget to track your results. Measure what works and tweak your approach over time.

Keeping Growth Going

You've got momentum. Now, let's keep it rolling with smart tracking and the right tools.

Track Money Health

Want to grow? Keep an eye on your cash. Here are the numbers that really matter:

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The key to sustainable profitability is keeping track of crucial law firm financial metrics - you absolutely must have facts to work from.

These numbers can also drive your targets for the future.

If your profit margin is below 30%, you have something to target with other initiatives.

Use Better Tools

Old-school firms use old-school tools. Don't be that firm.

Get a good Law Practice Management Software (LPMS) that handles:

• Case management
• Document storage
• Time tracking
• Client communications
• Billing and accounting

Does it work? You bet. A 2024 HighQ survey found that 98% of firms said their document management got WAY better after using the right tools.

At Velocity Work we've worked with clients who use nearly every LPMS in the industry. We use those tools to source important metrics that help us plan out strategic plans for the next year or quarter.

Keep Clients Happy

Happy clients = growing firm. It's that simple.

The American Bar Association says 63% of clients would refer others to firms that actually listen to feedback.

So, how do you get that feedback? Try this:

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It can feel overwhelming to set this stuff up if you haven't implemented feedback loops in your law firm.

However, there are a lot of affordable software tools for this. Check out Typeform for feedback surveys (even video-powered feedback requests) as one example.

Getting Bigger

Want to grow your firm? Let's explore smart ways to expand while maintaining quality.

Add New Services

Adding practice areas can protect your firm during economic downturns and increase revenue.

The trick? Start with services that complement your existing offerings.

Take family law practices. They often add estate planning because these areas naturally overlap. During divorces, clients typically need to update their estate documents anyway. It's a win-win that serves existing clients better.

Here's what successful firms consider when adding services:

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"We consult with a lot of our clients about expanding practice areas, and for what it's worth, it is not something to treat lightly. It can be transformative, but only if it's based on facts, not feelings." - Melissa at Velocity Work

Build Partnerships

Smart partnerships can turbocharge your growth. We have a lot of clients that use partnerships as their primary growth lever.

The secret? Finding the right fit. Look for partner firms that:

• Handle different practice areas
• Serve similar clients
• Share your values
• Have solid reputations

Law firms can unlock new growth avenues via a partner and it can widen your influence in your local legal market.

You can also explore non-legal partnerships; CPAs, financial advisors, and other professionals.

Plan for Size

Ideally you're able to plan ahead as you grow - to hire smart and to build systems that support your business as it expands.

Strategic planning with some accountability is the recipe we use to support this, but you can do the basics on your own.

To scale smoothly:

• Prepare your tech stack for more users
• Document your processes now - this is critical
• Train team leaders before you need them to widen their role
• Set up systems that work for 2x your current size

Velocity Work has supported clients who've started at $300k and crossed $2m a few years later.

If you use good financial data and strong operational systems to plan out your upcoming quarters, you can effectively plan for growth the right way.

Conclusion

Measure Results

To grow your firm, you need to track the right numbers. Here are some key metrics successful firms keep an eye on:

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Note that our approach is to customize the most important metrics based on your individual firm.

Your goals should drive your KPI metrics. You may want more freedom, and you might accept some inefficiencies to achieve that goal.

But it can't hurt to start somewhere. Get good data on your firm now, and iterate from there.

When to Do What

Start with the basics: clear goals and simple systems.

Focus on client service and smooth operations first.

Once you've got that down, you can branch out. Make clients happy. Make the team happy.

Then get down to the larger strategic plan, focused on growth and efficiency.

Moving Forward

Here's what to do next:

Set up a dashboard for your KPIs. Check it monthly to catch problems early.

Use tech smartly - 98% of firms say they handle documents better after getting the right tools.

Implement reliable workflows and systems so your team can get more efficient and remain accountable.

Keep measuring, tweaking, and getting better.

Growth isn't a finish line - it's a journey of constant improvement and expansion.