A lot of law firms are focused on how many new cases they are retaining. This is especially true in law firms where repeat and frequent business is needed.
Many firms will celebrate when they’ve brought in some new cases. New cases make a law firm feel good. New clients ensure the law firm is sustaining and moving forward. New clients can ensure that the law firm is remaining on sound fiscal ground. New clients equals security.
There is no question that a law firm should focus on generating new business from marketing, referral sources and repeat business from former clients. But the number of cases a law firm is closing is equally important and something most law firms spend a lot less time tracking.
So, take a week where a small, solo law firm has brought in three new cases in a week. For a solo, that might be a nice week. On the surface, the law firm might be very pleased.
However, if the law firm finished and closed five cases that week, the law firm is still down two cases. This means that this law firm is actually shrinking by two cases.
If you are a law firm owner, it is important to track the number of new cases coming into the firm. The larger the law firm you have, the more important it is track it versus a solo small firm where the individual law firm owner can probably track it in their head. Knowing how much new business is vital in making lots of critical decisions for the law firm in terms of marketing, management, recruiting and technology.
On the other hand, it is vital to track how many cases are being closed at the same time. For any law firm that is trying to at least remain static, it’s critical that the law firm is bringing in as many new cases as are being closed out. For any law firm that is attempting to grow, it is vital that the law firm is bringing in more cases than are being closed.
No matter your law firm’s goals, be sure you are tracking how many new cases are being opened. But do not overlook the number of cases being closed at the same time.
If you have any thoughts, feel free to share them below.