A recent study of small law firms found that 75% were challenged by finding new business. That’s not surprising when you consider how easy it is for your competitors to market to your prospects and referral sources. When you are competing against firms of all sizes doing similar work to you it’s crucial to make the most of every new business opportunity. Outsourcing legal work to skilled freelance attorneys can help firms be more competitive by providing an avenue to get work done, without increasing overhead, so you can spend more time on business development.
Most lawyers hate to turn away business, but sometimes it feels like a necessity. Solos and small firms may not have the time, staff or the expertise to handle every matter and the logical choice is to refer it out. However, hiring a qualified freelance attorney with the right experience can enable a firm to take on these cases.
The biggest advantage of outsourcing is how it can reduce costs while improving efficiency and profitability. A freelance attorney can handle work on a flat fee basis, which costs less than hiring a full time employee. Associates are expensive, and you have to consider salary, benefits and overhead. Much of that is saved with outsourcing. In addition, outsourcing means fewer resources need to be devoted to managing and training employees. The time and monetary savings can then be reinvested in your firm – such as using it for software and equipment, office space, marketing, support staff, consultants and other things to help your practice prosper.
Alternatively, you can pass along the savings to clients by reducing your rates to make you more attractive to prospects. In a recent survey, 47% of consumers said they want a firm that provides fixed fees. Many firms report that they feel the pressure to reduce rates and/or provide flat fee billing. Outsourcing provides predictable labor costs so firms can make their rates more competitive, and make clients happy.
The ability to provide additional services to clients is also an important competitive advantage. The more ways you can help your client, the stronger your relationship will grow. It’s a lot easier to get more business from an existing client than it is to find a new one. This relationship not only provides more revenue from the direct business, but may result in more referrals to further help your firm. Outsourcing gives firms flexibility to help clients as needed and do so at an affordable cost for the firm.
If you want to make your firm more competitive, consider hiring a freelance attorney. LAWCLERK™ provides a secure and confidential online platform where you can look for attorneys with the right skill set and the right price for your matter.