The legal industry continues to face challenges and opportunities that demand innovative approaches to business management.
To properly meet these challenges, law firms must adopt forward-thinking strategies to remain competitive. These strategies must combine robust planning with advanced technology to enhance efficiency, profitability, and client satisfaction.
As part of InfoTrack’s very first Fall Double Features CLE webinar series, two separate presenters offered key strategies and actionable insights designed to help legal professionals excel in the face of a rapidly changing legal industry:
- Stephanie Everett, CEO of Lawyerist and co-author of The Small Firm Roadmap, discussed how to set legal practices up for financial growth in 2025. (Watch now.)
- Ruby Powers, founder of Powers Law Group, P.C., a Houston-based, full-service immigration law firm, who delved into the many opportunities legal professionals have to grow their business with new technology, including artificial intelligence. (Watch now.)
Whether it’s mastering the art of budgeting, optimizing cash flow, or embracing AI-driven tools, Everett and Powers lock onto one unifying theme: A legal professional’s future success hinges on their ability to adapt and innovate.
This article provides nine key highlights from both of these presentations, designed to help any legal professional position their firm for growth and success in the future months.
Additionally, for a more comprehensive look into the topics and ideas – including many not listed in this article – you can access an on-demand version of Everett and Powers’ presentations by clicking here.
According to Stephanie Everett, financial planning is the most critical groundwork for establishing operational stability and growth for your legal practice.
To help legal professionals accomplish this, Everett detailed six critical steps, ranging from the importance of budgeting and leveraging financial projections to make important decisions, to managing cash flows and monitoring KPIs:
1. Budget for growth
More than just a spreadsheet detailing potential costs, a budget a comprehensive plan that details expected revenues and expenses.
For 2025, Everett says firms should focus on using budgets as a strategic tool to identify growth opportunities and mitigate risks.
For instance, you might forecast increased revenue from high-value cases but also plan for potential cost increases due to staffing needs or technology upgrades.
A well-crafted budget ensures resources are allocated efficiently and helps the firm remain agile in responding to unforeseen challenges.
2. Leverage financial projections for decision-making
Financial projections allow you to simulate various scenarios and evaluate their impact. For example, introducing a new practice area, such as intellectual property law, requires projecting both the revenue potential and associated costs.
These insights enable you to make informed decisions while minimizing risks.
3. Ensure sustainable profitability
Profitability isn’t just about revenue – it’s about managing expenses and accurately reflecting owner compensation.
A firm targeting a 12% profit margin might determine this translates into a specific monthly revenue target after accounting for salaries, technology costs, and other expenses. Sustainable profitability provides a solid foundation for reinvestment in growth opportunities.
4. Set and achieve revenue goals
Revenue targets should be clear and tied to specific objectives. For instance, if you want to increase your annual profit by $200,000, you must calculate how many additional cases or billable hours are required.
These targets can then be broken down into monthly goals, helping your business stay on track.
Moreover, leveraging data on average case values can guide marketing efforts.
If your average case value is $10,000, securing 20 additional cases annually might require doubling outreach efforts or refining client acquisition strategies.
5. Manage cash flow for stability
Cash flow management is crucial, especially for firms with delayed payments.
In 2025, strategies like retainer agreements, flat-fee billing, and frequent invoicing will be key to maintaining liquidity, Everett advises.
Additionally, setting aside reserves for taxes and unexpected expenses can safeguard your financial health during periods of uncertainty.
6. Monitor performance with KPIs
KPIs such as revenue per attorney, client conversion rates, and average case resolution times allow you to track progress.
Regularly reviewing these metrics ensures alignment with goals and facilitates timely course corrections.
For a more detailed breakdown on best practices for comprehensive financial planning for your law firm, watch Everett’s webinar “Game Plan 2025 by clicking here.
As technology continues to evolve, its role in shaping legal practice is becoming more pronounced.
Ruby Powers affirms that those who embrace technological innovation are better positioned to meet the demands of modern clients while maintaining operational efficiency.
Here are three of the major takeaways from her presentation:
7. Embracing AI to enhance efficiency
By now, it’s common knowledge that AI tools are revolutionizing law firm operations, automating tasks such as document review, legal research, and billing.
However, Powers notes that while she was skeptical like many others in regards to AI at first, she now encourages lawyers to use the available tools to streamline processes. She adds that this pivot has resulted in more time to devote to her clients.
For example, an AI-powered research tool can analyze case law in minutes, freeing up attorneys to focus on strategy.
By 2025, Powers predicts that firms utilizing AI will gain a competitive edge in both cost savings and client service.
Of course, with the rapid adoption of technology comes the need for compliance with evolving ethical and regulatory standards.
For example, if a firm opts to utilize AI, you must ensure their systems adhere to data privacy laws and avoid potential biases. Powers encourages lawyers to stay informed about these regulations, as it is essential to maintaining client trust and avoiding legal pitfalls.
8. Strengthening client engagement
Powers predicts that in the near future, clients will demand greater transparency and convenience from legal professionals.
You can meet these expectations through digital marketing, client portals, and innovative billing models. Offering a subscription service for routine legal advice, for example, builds client loyalty and provides a steady revenue stream.
Furthermore, Powers observes that the rise of virtual law firms is reshaping the industry, offering flexibility and cost savings. The upsides to this are tremendous in that firms that operate remotely can reduce overhead costs while accessing a broader talent pool.
In 2025, embracing agile project management methodologies will help you adapt quickly to changing demands and client needs.
9. Prioritizing continuous learning
Beyond meeting the requirements of state bar associations, continuing education is critical for staying competitive in 2025.
Powers cites multiple opportunities for legal professionals to do this, ranging from attending legal technology conferences, participating in webinars, and engaging with thought leaders who can provide valuable insights into emerging trends and best practices.
Powers concludes that law firms that foster a culture of learning will be better equipped to navigate the complexities of a rapidly changing industry.
To stay informed of best practices, as well as future continuing learning opportunities, sign up for the InfoTrack newsletter.
Speaking of continuous learning opportunities, to learn more about the changes that will impact the future of the legal industry, watch Powers’ webinar The Future of Law Practice Management by clicking here.
Preparing for the future
The legal industry of tomorrow will be defined by firms that successfully merge financial strategy with technological innovation. By adopting the practices and tools outlined above, you can position yourself for success in an increasingly competitive landscape.
Are you ready to take your law firm to the next level?
At InfoTrack, we understand the unique challenges and opportunities law firms face.
Whether it’s streamlining e-filing processes, simplifying nationwide process serving, or automating other important workflows, InfoTrack empowers you to focus on what matters most — delivering exceptional legal services to clients.
By adopting InfoTrack’s innovative solutions, you can enhance efficiency, improve accuracy, and achieve your financial and operational goals.
