The New Year is a Perfect Opportunity to Close Budget Gaps
As we enter 2024, the New Year brings with it a chance to make pivotal organizational changes, fostering budget growth for your firm. Like individuals who set resolutions, elder law and financial advisor firms set high expectations for the year ahead.
Are budget gaps from the previous year causing concern moving forward? Addressing these issues is crucial for the long-term financial health of your firm. Making tough decisions is part of the process, but it’s vital to consider each decision carefully before committing to any notable changes that impact your clients.
Review Client Fees
Discussing client fees is always a sensitive topic. The goal isn’t simply to increase prices; instead, it’s about understanding the profitability of different fees you’re charging and matching any added costs. For example, many firms are providing staff raises at a rate of 3-4% each year, and it makes sense to offset those added costs by raising fees where appropriate. This avoids reducing the cashflow of your business.
In reviewing client fees, assess the time invested in each client and identify the most time-consuming tasks or case types. This analysis can provide valuable insights. Ask yourself: Are routine tasks taking up too much time and costing your clients more? Streamlining these processes can allow you to allocate your time more effectively, enhancing value for your clients. This approach can justify higher fees or enable you to take on more clients without increasing fees.
Moreover, tracking specific tasks, clients, and case types can illuminate where your time is most profitably spent. Are you dedicating excessive time to lower-paying clients at the expense of more profitable cases? It might be time to reconsider offering services that are time-consuming yet bring in minimal revenue.
Another aspect to consider is your firm’s internal expenditures. The cost of extensive paperwork, for instance, might seem negligible, but it can add up. Think about the reams of paper bought and the substantial shipping costs incurred. These are underrated areas to consider for budgetary adjustments.
With rising USPS prices, have you explored partnerships or vendor agreements with shipping companies? These agreements could offer bulk deals, reducing the need for frequent runs to make purchases from local office supply stores. This shift not only saves money but also streamlines your operational processes.
Also, consider the areas where you are spending resources as a complimentary service to clients. Do you do free deeds and deed searches? This and other items cost time and resources, so it may be time to consider passing some of that cost onto clients. When you give away time and resources, you give away money. It’s vital to provide value to your clients to keep them coming back, but you need to consider which areas actually provide value while not tying up significant resources.
Work with The Million Dollar Solution®
Why do we call ourselves The Million Dollar Solution®? It’s a reflection not just of our success but of the success we foster in other elder law and financial advisor firms through our solutions. In navigating the crucial operational decisions your firm faces, we are here. Schedule your free strategy session with The Million Dollar Solution® and let’s make 2024 a year of unprecedented financial growth and operational efficiency for your firm.