Our client ran a niche law practice with a strong reputation, primarily driven by referrals. However, despite the stellar reputation, they struggled with managing their team, delegating tasks, and had issues concerning pricing and work allocation. When they first engaged with Cathcap, the revenue stood at $617,000 with a profit margin of 1.9%. The ultimate goal? To sell the firm and enjoy retirement.
There were persistent inefficiencies in task delegation, which would sometimes burden attorneys with paralegal work. The firm operated on an underpriced flat fee system; they needed more money upfront and to have bigger retainers for any hourly work.
There was also a problem with Accounts Receivable; the firm had A/R over five years old. The owner personally struggled with letting go of some of his responsibilities. And we totally understood that. This firm was the result of his hard work, dedication, and determination. It's challenging to delegate when you've built something from the ground up.
This lack of delegation, combined with the presence of less efficient staff members, posed obstacles to the firm's productivity. Furthermore, Arthur faced challenges in his endeavor to sell his firm at an appropriate price, as prior sales attempts had not yet materialized.
Cathcap stepped in with a comprehensive approach to the firms' challenges. We reinforced the mindset and business coaching, helping shift the perception of the team's abilities and recognizing the potential value others could offer. We overhauled the firm's pricing strategy, which resulted in a threefold hike in the flat fee over seven years.
We stressed the importance of proactive planning for growth, ensuring that both the mindset and necessary infrastructure were aligned for expansion. The firm's work processes were streamlined with a focus on efficient task delegation, emphasizing the need to offload and harness the potential of paralegals, positioning them as valuable assets to clients and the firm.
To address the lingering A/R issues, we helped the firm collect more money upfront and advocated for heftier retainers for hourly assignments. By instituting robust systems, refining financial procedures, and organizing files meticulously, the buyer appeal increased.
Our partnership with the firm led to amazing results. The firm’s revenue soared to $1.83 million, while the profit margin broadened to 10.8%. Simultaneously, the owners take-home pay surged by 147%. As a result of our intervention, the firm became a well-oiled machine with streamlined systems and a more adeptly managed team. After previous challenges in finding a prospective buyer, the firm found its match in 2017. More than the measurable accomplishments, the owner's mindset underwent a significant shift. He gained a refreshed outlook on growth, delegation, and recognizing the capabilities of his team, allowing him to confidently step into retirement, assured that his legacy was entrusted to capable hands.