Building a Law Firm Economic Model

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 client demands
• retain 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 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. 

Download "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)

Another powerful resource for your law firm is the editable Economic Model Template. The template considers production, payroll, overhead, and profit per group. T