Business development is a fundamental aspect of the legal profession, having the power to facilitate promotion opportunities for associates, and a raw capability for revenue generation for those in self-employment. For many legal professionals, business development forms a key part of their strategy during slow periods. When there is time to devote to marketing, blogging, advertising, and executing similar efforts, business growth takes the foremost position. However, a growing argument suggests that regardless of workload, lawyers should always invest time in business development as predictability of slow times is often a game of chance. Furthermore, having a pipeline of new matters could provide a safety net during any unforeseen dry spells.
Anecdotal evidence supports this view. For instance, consider an unnamed Biglaw firm. The associates at this firm spent years on a multi-million dollar matter. They saw their efforts rewarded, as their track record led to promotional opportunities to partnership. Revenue from this single case continued to flow in, leading to financial benefits for associates, staff, and the entire firm.
The lucrative matter abruptly came to an end leaving many in a scramble for substantial work. Pivoting to business development, the firm then committed to searching for fresh opportunities. While they were able to generate some new business, it was a modest sum to the previous work they had become accustomed to.
The previous contacts the firm had developed over a period of years, while working on this large matter, had become stale. The firm discovered that trying to kick-start relationships and networking demanded a substantial input of time and resources. The financial setbacks that the firm suffered consequently led to rounds of layoffs, a circumstance which may have been avoided had the firm consistently applied itself to business development.
For many lawyers, client work often precedes business development. This common practice exposes firms to the dangers of leaning on a single lucrative matter, leaving them unprepared for the unexpected. Considering that lawsuits can be resolved and transactional matters concluded at unanticipated times, forecasting a lawyer’s business cycle can be inherently challenging.
Though devoting time and energy to business development may detract from billable hours in the short-term, the long-term financial health benefits of such a strategy validates its importance. As a result, it is essentials that lawyers consistently dedicate significant time and resources to business development, irrespective of their current workload.
Please read the full discussion on this critical issue on Above The Law.