Renegotiate your contracts with vendors for office supplies, back office support, computer systems and software licences.

 

Try renegotiating your lease.

 

Don’t scrap the annual Christmas get-together or summer barbecue, but spend less on office parties and functions.

 

Brainstorm other money-saving options (e.g., renting out office space and outsourcing services).

 

Rev up your marketing efforts (law firm budgets typically range from 1 per cent to 3 per cent of gross revenues).

 

Focus on existing clients.

 

Target your best clients who generate the most revenue for the firm.

 

Visit clients at their workplace. Ensure they know you are not charging them for this visit.

 

Designate a client relations partner (or someone else other than the client’s lawyer) to obtain client feedback.

 

Boost the frequency of annual cash flow forecasts to every 3 or 6 months.

 

Be vigilant about collections. Collect early. Offer alternative payment methods (e.g., by credit card).

 

Carry out credit checks on new clients. Get retainers upfront.

 

If strapped for cash, try to postpone your bill payments from 30 to 45 days.

 

As a last resort, consider merging with another firm with a profitable complementary practice.

 

Reassure firm members that you are on top of the situation.

 

Communicate the steps you are taking to lead the firm through this tough patch.

 

Tell people if they are not going to be laid off.

 

Look at developing expertise in thriving practice areas (e.g., litigation, labour and employment, bankruptcy, intellectual property, estate planning and family law).

 

Target clients in active or recession proof industries (e.g., infrastructure, fast food franchises and discount retailers).

 

Consider alternatives to laying off lawyers and staff (e.g., lawyer secondments, unpaid leave and sabbaticals, job sharing and reduced hours).

 

“Right-size” your firm by dismissing chronically under-performing lawyers, but ensure layoffs are handled sensitively and fairly.

 

Use technological applications to deliver legal services faster, better and at lower cost (e.g., to create new precedents and commoditize legal products).

 

Adopt time- and cost-saving advances like teleconferences for meetings instead of travel.

 

Hire a consultant to review your tech systems to see where money could be saved and services improved.

 

Propose reasonable flat fees and non-hourly billing alternatives to attract and satisfy cost-conscious clients.

 

Talk to clients for input on reasonable fee solutions (e.g., not charging for travel time).

 

Consider freezing rates for a year for your best clients.

 

Position the firm to do the kind of legal work you want to do for the kind of clients you want to have.

 

If prudent and necessary, get partner buy-in and agreement to reduced compensation and monthly draws.