Having trouble finding your next associate? We can help. Reserve your demo today!Talk to Us
Start HiringCreate accountTalk to us
Free guide

Home Attorney Resources Economics of Law Firm Guide

The economics of a law firm

Being a successful lawyer and running a successful law practice are two different things. The first speaks to your talent, training, and experience; the second requires an entirely different set of business skills.

$496,600
All-in cost of one associate
1,800
Billable hours to break even
12
Chapters

What's inside

The full guide, section by section

Twelve parts, from what a firm actually costs to run to where the profit leaks out. Here is the shape of it; the PDF has the figures, the benchmarks, and the worked examples in full.

1

The costs of operating a law firm

Payroll and benefits, office and equipment, insurance and bar dues, taken line by line.

2

Attorney roles in a law firm

What each role in a firm actually means, past the version in books and television.

3

The costs of hiring an associate

What an associate costs a firm, set against NALP salary survey data.

4

Managing finances for a law firm

How the money is tracked, forecast and kept under control.

5

Business plan: why all lawyers need one

Vision, current and forecast market trends, and the marketing plan inside it.

6

Do you really need a bricks and mortar office

Whether a physical office is still a necessity, given the tools available now.

7

Pricing strategies to maximize profits

The love hate relationship with the billable hour, and what else is on the table.

8

Four things you really should outsource

Which work leaves the firm, and which should not.

9

Tax considerations for attorneys

What running your own firm changes about your tax position.

10

Navigating networking

Finding new clients and generating more revenue for the firm.

11

The economic pitfalls of a problem client

What the wrong client costs you, past the unpaid invoice.

12

Investing wisely to grow your business

Where to put money back in, and in what order.

"

This would mean if the associate is expected to bill and collect 1,800 billable hours, their hourly rate would be calculated as $496,600 / 1,800 hours = $275 per hour.

EC
The Economics of a Law Firm
What a full-time associate has to bill to break even

Get the guide

Read the whole thing

Get the Economics of a Law Firm

Tell us where to send it. No cost, and we will not pass your details on.

Keep exploring

More attorney resources

Guides, worksheets, sample projects, and webinars, all free.