Too few business owners religiously track their financial numbers as a means of monitoring the health of their businesses, according to a post by Drew McLellan on the Small Business Branding blog. Although Drew brings this up in the context of management issues, the importance for marketing should not be overlooked.
And, so it should be for law firms. For instance, a client admitted recently that he doesn’t look enough at his firm’s numbers as a tool of marketing. He’s not alone. The fact is that a law firm’s financials provide a wealth of information that can save time in focusing a firm’s business development efforts.
By delving into the firm’s financials, a firm can uncover the strength of its practices. Further, by discovering which clients are the most profitable, and the industries they represent, the firm provides grist for its marketing focus. It just makes sense for a law firm to concentrate its primary lawyer marketing efforts on those type of clients and practices where the firm is already strong. The numbers will tell you where your strengths are.