What Should Lawyers And Accountants Worry About In The Current Economic Downturn?

Bruce Marcus, a pioneer in law firm and professional services marketing, writes on this topic in the most recent issue of The Marcus Letter, www.marcusletter.com, including:

The answer lies in firm management. And do it now – before the deluge hits your firm.

First, reassess the situation. Check your client list for potential weak companies. Weak companies that may be caught up in the economic downturn become slow payers, and then no payers. Either increase collection methods, or be prepared to let them go and cut your losses.

Second, check your firm. You don't want to give up real talent, but in today's climate, you don't want to carry staff (including partners) who aren't carrying their share of the load.

Third, think productivity. Review all your management processes, from partnership agreements to cash flow management to marketing. Make sure your electronics are up-to-date, and are really saving you money. Look for potential return on perks and club memberships. Preserve capital as best you can. And take your banker to lunch - you may need him or her.

Fourth, look to your marketing. It's not an expense, it's an investment. If you use it wisely, and give the marketing professionals a chance, sound marketing may give you the best return on your investment.

Fifth, pay closer attention to the industries your major clients are in. That's where the early warning signs will be.