Building a Law Firm Economic Model

June 14

Law firms that understand their economics are more likely to capture and maintain an edge in today’s highly competitive legal market. 

A law firm’s economic model defines how the firm runs from an economic perspective and allows a firm to:  

  • generate fees
  • reward origination 
  • manage overhead
  • invest earnings, and
  • define the threshold profit levels.

When a law firm understands its economics, it knows what drives the firm's practice, profitability, and success. It is also in a better position to:  

  • adapt to unforeseen changes 
  • work more efficiently
  • respond to evolving client demands
  • retain the best attorneys

Law firms that are able to operate within a defined economic model have a sustainable competitive advantage.

Building an economic model is as much a strategic exercise as it is a financial one. Both disciplines must have input into the process.

 

A good process, the right modeling tools, and experienced support can reduce the frustration,  and fatigue related to creating a financially and strategically sound economic model.  Our latest eBook can help. 

EBOOK-Building-Economic-ModelDownload "Building a Law Firm Economic Model" (pdf) to guide your law firm through the following: 

  • What is an economic model and why is it important to your law firm? 
  • The essential components of building an effective economic model
  • Additional resources include an editable One-Page Economic Model (pdf)

Download the eBook