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Achieving Sustainable Growth as a Law Firm Owner

Achieving Sustainable Growth as a Law Firm Owner

Can you grow your business revenue without working longer hours?

That is arguably the biggest question law firm owners wake up with. The rush, the all-nighters, and the relentless pace that got them through law school and built their successful career is no longer serving their desire to scale sustainably.

As the author Margaret Bonnano said, “Being rich is having money; being wealthy is having time.” Most business owners desire not only financial success but also freedom over their calendar, location, and the type of clients they work with.

The question is, how can do this practically? If working longer hours is not the solution, how can law firm owners grow their practices while achieving a healthier work/life balance?

This is where the Utilization Rate Formula comes in.

The Utilization Rate Formula

At a law firm, the traditional thinking is that to generate greater profits you either bill more hours or increase your hourly billable rate, an approach that can go against the best interest of the client.

Instead, here are Amata we use the Utilization Rate Formula to calculate what needs to happen to drive down expenses, produce more work, and increase your profitability.

Achieving Sustainable Growth as a Law Firm Owner

This formula allows us to achieve leveraged and scalable growth without hurting profitability or the client experience. The key is utilization – only paying for time that is billable to your clients, eliminating all under-utilized time and expenses.

Using the Utilization Rate Formula, you would divide the number of billable hours by the total number of available hours (x100). So, if a paralegal on your staff billed for 32 hours from a 40-hour week, they would have a utilization rate of 80%. This means you need to pay for the under-utilized time, in this example 8 hours, from your profits.

By employing the on-demand paralegal team at Amata, you are only paying for the time they do billable work for you. So, in the example above, you would only pay for 32 hours that you are able to pass along to your client, saving 8 hours that you won’t have to pay for. By delegating and using leverage in this way, you are able to scale your business and profits without placing constraints on your time.

The New Growth Model for Law Firm Owners

After working with more than 600 law firms and professional services companies, we created a unique model that helps you build a thriving company that supports your life — instead of taking away from it.

We do this by protecting your bottom line first. The fast-changing markets of today require service businesses to stay lean and flexible so they can respond to the fluctuating demand of clients. In months when this client demand is high, Amata can expand your offices and provide flexible staffing to meet your growth. In months of contraction, we can reduce your office space without penalizing you for it (like most office and staffing companies do).

Achieving Sustainable Growth as a Law Firm Owner

And when it comes to office space, you continue to enjoy the full benefits of a traditional office, with the added benefit of being able to add or remove office space as you need it. Considering that office space and staffing are the two greatest expenses for most law firms and professional firms poised for growth, this means a huge pressure is taken off your back. 

You can grow at your own pace, save hundreds of thousands of dollars annually, and stay at the forefront of innovation.

Another reason our model is so powerful is that top talent today requires more than a lavish office. They expect reasonable hours, easy-to-access offices, and the freedom to thrive in their personal lives just as much as they do in their careers. We help law firms and professional service firms create an environment that attracts these top performers while staying lean in their operations.

Our role is to help you practice your profession on your own terms. So whether you are working remotely, on-site, or a combination of both, we have solutions for you.

For example, our flexible staffing options allow firms to work with the same staff every day but only pay for the time they actually use. This may mean 5 hours/month for a senior paralegal, 56 minutes/month for a receptionist, and 10 hours/month for an assistant.

By eliminating unnecessary spending (e.g., an 800-square-foot library in the middle of the office), we allow clients to invest in tech, team, and client relationships that will take their business to the next level.

From 7-Day Work Weeks to Exploring America

Amata was born out of a deeply personal pain. Ron Bockstahler, our founder, was a declared workaholic. For decades, he didn’t take two days off in a row until he realized that you should treat your personal life the same way you treat your career. This means having clear and inspiring personal goals and committing to achieve them. 

Looking for exploration and to break the patterns of tradition, Ron went on an 8-year RV adventure with his wife across all 50 States in America and 9 Canadian provinces. Surprisingly, his business continued to soar, and he was earning more while living life to the fullest.

Today, Ron competes in Ironman races and is a father of 6 children:

Amata began by managing the backend operations for lawyers, including tasks like litigation copy work and small print jobs. From the beginning, our primary focus has been putting our clients first, doing whatever it takes to create an environment where you can thrive both professionally and personally.

We believe that growing a business without enjoying life is not worth it. That is why we offer innovative solutions that allow you to keep expanding your firm while protecting your profitability, client experience, and work/life balance.

Contact our team and explore how our unique model can help you achieve sustainable growth.