May 25, 2006
The Entrepreneurial Law Firm in Three Steps
The Entrepreneurial Law Firm in Three Steps
The entrepreneur’s sprit is a restless one. Here is a three-step classic road map that has been used by many entrepreneurs to transform a moderately successful service business into a significant financial success.
1. Figure out how to package the business’ services in order to market and price them like a product (the razor strategy)
2. Figure out how to add a service component to the packaged service product (the razor blade strategy)
3. Add amenities around the product and services to create a unique, high-value experience for the customer.
Can the tried and true three steps work for a law firm? There are entrepreneurial firms already doing it. Here is a hypothetical example just to illustrate the application of the three steps:
1. An estate practice bundles its services in several different packages, each targeted to different segments of the population—the up-and-coming professional, the young married couple, the mature high-net-worth couple. The packages are sold for a fixed price, and promotional materials use the same look and feel as the brochure for a car.
2. An estate practice adds an optional monthly fee to its service package. This razor blade service includes updating the documents for changes in law and keeping the client informed of any changes or expected changes in taxes, laws, court decisions, and regulations that might affect their estate or estate plan.
3. The estate practice adds an extension to its office along with upscale hospitality staff, all specifically designed to cater to higher-net-worth clients. Everything about their high-worth facility and services is designed to reinforce the special VIP status of the firm's high-net-worth clientele. The experience provided for the client benefit raises the firm to an entirely new level, attracting high-net-worth clients.
The key is to focus on opportunities and to think strategically.
- What does the firm do best?
- Who are the prospects for our service?
- What distinguishes one type of prospect from the other?
- What is unique about each type?
- How can we build our services to appeal to some of the larger segments of the prospect population?
- What is the value proposition that appeals to those groups?
- How could we price this to be a success with the selected targets?
- What opportunities are there to provide a related ongoing service associated with the initial package of services?
- What experiences, amenities, etc. would appeal to our target groups, making our relationship more valuable for them?
Can you apply the three-step strategy to areas where your firm excels? Give it a shot. Maybe the light will come on, and your firm will start operating at a new, faster pace—entrepreneurial speed.
Morepartnerincome.com is sponsored by Juris, Inc. For information about Juris® products and services for increasing law firm performance and partner income, go to www.Juris.com.
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Filed under Alternative Billing, Marketing by Tom Collins