Finishing strong and making Q4 a financial success
Within the legal landscape, staying ahead of the curve is not just an option – it’s a necessity. Therefore, as we enter Q4, you must be able to make this period a financial success for your firm. After all, this means you’re putting your best foot forward come 2024!
With that in mind, here are some tips to finish 2023 on a high note!
1. Warm up frozen business relationships.
Q4 is the perfect time to warm up frozen business relationships, ensuring that your relationship with clients is stronger than ever when the new year rolls around.
One way to achieve this goal, particularly around the holidays, is by handing out gifts to your clients. Whether they’re serving as a ‘thank-you’ for referrals or a simple sign of appreciation, gifts are a great way to ensure you remain at the forefront of your client’s mind.
While this does incur some expenses of its own, a study from Coresight reported that “80% of corporate gift buyers say gifting has improved their relationships with clients.” As such, it’s a worthwhile expense!
2. Check in with your team.
Over the past few years, turnover rates within the legal field have been at a record high. For example, one study found that the average associate attrition rate at Am Law 100 firms was 16% pre-pandemic. By 2021, this had risen to 27%.
However, time and time again, studies have found that firms that make a real, concentrated effort to check in with and care for their employees report much lower turnover rates. This is hardly surprising – in an industry known for being cut-throat and competitive, legal professionals are looking for companies that will respect and care for their needs.
During employee check-ins, be sure to ask about what you can do better moving forward. For example, you need to update your employee wellness program or offer more development opportunities. Not only will this help strengthen your relationship with your team, but doing so will also help you attract top talent.
3. Assess your systems.
Q4 is the perfect time of year to assess your systems and take inventory of what is working and what isn’t. This could include completing a technology audit, where you determine whether or not you are using technology correctly within your firm. For example, it could be that you’re underutilizing tech, especially if your team is performing specific tasks manually that could easily be automated. This is particularly important when you consider that “according to recent data from the American Bar Association, just 10% of legal firms have completely adopted technology, implying that most companies continue to rely on old techniques.” .
4. Upgrade your marketing strategy.
Upgrading your marketing strategy can also make Q4 a financial success, especially if your new methodologies help you obtain new clients or increase referrals. Pay close attention to how your brand performs on social media – is your content getting the kind of traffic it deserves, or are you bringing forth little ROI?
If the answer is the latter, it’s clear that you need to go back to the drawing board and identify where you may be going wrong. For example, you may be focusing on social media platforms that your target audience doesn’t use often, meaning you’re missing out on a vital opportunity to connect. Alternatively, you may not post consistently enough, causing your firm to fade into obscurity.
5. Set goals for 2024.
As we move closer to the end of the year, you should also be sure to revamp your firm’s business development plan by setting new goals for 2024. However, before setting new goals or financial targets, you should analyze your performance throughout the previous year. Did you reach all of your goals? What setbacks did you face along the way? What do you need to do differently moving forward?
Being able to answer these questions means it can make it easier to set goals for 2024.
6. Review your financial landscape.
The best way to ensure you finish strong and make Q4 a financial success is by closely examining your finances. Set out some time in your schedule to review your books and financial reports and analyze your performance over time. This task should help you outline any mistakes you have made throughout the year, reducing the chances of you dealing with the same setbacks in the future. It will also enable you to assess the profitability of your firm.
At FinOp Group, we have years of experience in legal accounting and can help with all tasks, from bookkeeping to payroll management.
If you need help making sense of your finances, please do not hesitate to get in touch today!
