Maximum Lawyer How to Treat Your Law Firm Like an Asset (Not a Job)
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Are you a law firm owner looking for strategies to build a better business? In this episode of Maximum Lawyer, Tyson interviews Jonathan Hawkins, an attorney specializing in advising law firms on business management and legal strategy. Jonathan shares practical insights on building strong client retainer agreements, protecting against associate turnover, and planning for partnership transitions.
Jonathan shares some strategies law firms need to use to protect themselves when associates leave and take clients with them. One thing to embed in your processes is establishing partnership agreements with lawyers you hire. This is a way to outline stipulations as it relates to a lawyer leaving and taking a client. Though a client has the ultimate choice, it can be included in an agreement that a lawyer should not encourage their client to leave with them. As a firm owner, this protects your downside and provides you with some sort of protection when it comes to losing clients.
Tyson and Jonathan chat about value drivers for law firms and how owners can enhance their practice when it comes time to sell. A big value driver for a potential buyer are the employees. If a new owner is looking to take over, having solid employees and a good leadership team will attract someone to jump in. It will make the transition much smoother and leave the buyer feeling confident in their decision. Another value driver are marketing systems. If your firm has great systems to market itself, someone will be more inclined to buy because they see the dedication that exists within the firm and how it presents itself.
Listen in to learn more!
2:17 Advice on foundational systems for new law firms
4:09 Strategies to protect law firms when associates leave
9:57 Common legal protections firms neglect
28:27 Additional value drivers for law firms
36:34 The importance of succession and incapacity planning
Tune in to today’s episode and checkout the full show notes here.
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