Creating a Successful and Resilient Law Practice
With the COVID-19 outbreak causing a near complete lockdown of the country, life has changed in a huge way. Businesses all over Canada are suffering after having been forced to close their doors roughly two months ago. In most respects, law firms are no different. COVID-19 has exposed the vulnerabilities of many law firms, both small and large, including their reliance on open courts for revenue. As a lawyer, it is easy to get lulled into a false sense of confidence regarding job security. Many people believe that since crime will always exist, criminal lawyers will always be needed. The COVID-19 outbreak and lockdown that has accompanied it has shown that this is not always the case. With courts shut down, even recession proof criminal lawyers have been without work. The pandemic has put into perspective how important it is as a lawyer or any business owner to control expenses and make regular investments in the business. Control Expenses Law firms can experience periods of rapid growth during a strong economy. However, without proper budgeting and planning, they can just as easily find themselves failing during periods of economic downturn. This is especially true when there is little to no notice, as was the case with COVID-19. With overhead expenses remaining and no new business, many law firms have found themselves struggling financially, in some cases, not being able to cover overhead expenses. The best way to avoid this is to consistently manage the firm’s expenses. These expenses include rent, insurance costs, support staff and technology. While it may be tempting to spend more on expenses when the economy is strong, it is important to have overhead expenses that may be managed for a period