Increase Profit by 90%

What would you have to do at your firm to increase your profits by a whopping 90%? Double your billable hours? Fire all your staff? No, it’s simpler than that. It’s called alternative billing — more specifically in this instance billing on a flat or fixed fee basis. Read this article recently published on Law.com about how the five-attorney Ambrose Law Group of Portland, Oregon switched from the billable hour to a flat-fee structure, and achieved an increase of 90% in profit as a result.

As a side benefit, past due accounts receivable become a distant memory when you bill on other than an hourly basis.

Before you start high-fiving your partners about embracing this alternative in order to discard your timesheets, keep in mind that at the heart of improving profitability is maintaining good data regarding your actual cost (e.g. hours spent) versus what you bill (flat fee). So excellent timekeeping habits are still a must.

To gain a better understanding, you may want to purchase and read Winning Alternatives to the Billable Hour by James A. Calloway and Mark A. Robertson and also the ever-popular How to Draft Bills Clients Rush to Pay by J. Harris Morgan and Jay G. Foonberg.

Remember, if you’re a member of the Pennsylvania Bar Association you get a special discount, so be sure to have your discount code handy before you place your order. If you haven’t done it before and don’t know the code, contact me on the hot line. If you want to discuss alternative billing strategies personally, we can do that, too.

For those of my faithful readers who are NOT members of the PA Bar Association, contact your own state’s Practice Management Advisor. If you don’t have one in your state, be sure to suggest to your Bar Officers that they consider hiring one. You can look here to find out if these is one who services your bar.

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Other Links to this Post

  1. Law Practice Management » Blog Archive » Does General Counsel Trust You? — May 23, 2007 @ 5:30 am

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