Difficult economic times have ended an unprecedented six-year period of revenue and profit growth enjoyed by law firms, and analysts are predicting that the situation will get worse before it begins to get better, with a turnaround not forecasted until the end of 2009. In the interim, there are several strategies for lawyers and legal administrators to consider in order to survive, and even thrive, in these turbulent times. Below are seven tips for your firm to remain competitive in a down economy.

• Remain Close to Your Existing Clients . Focus on your current clients—particularly your key clients. Find ways to get closer to them by serving as an invaluable resource and trusted advisor, reaching out with an unbilled phone call. Let them know that you appreciate their loyalty by rewarding them with incentives. Remember that your key clients are the entities that represent your most immediate sources of revenue. They’re going through the same tough times and are facing similar financial and operating pressures, and to acknowledge that with a fee incentive will speak louder than a pair of tickets to a sporting event. Proactively keep the lines of communications open and strengthen your key relationships with an in-person visit.
• Offer Creative Staffing and Billing Solutions . Be willing to negotiate. It's always better to sell something for less than nothing for more, especially with those prospects and clients where you are looking to grow the relationship. Your clients are going to be looking for deals as well as great value. Where feasible, restructure your pricing arrangements to make them more attractive to clients and prospects. Use discounts to get work in new service areas. Offer to second associates who aren’t being fully utilized. While your client reaps the benefit of outside counsel at a lower cost, your firm avoids lay-offs and your associates get invaluable work experience.
• Fire Some of Your Clients . When business softens, it is the perfect time to get rid of the clients who are costing you money. Apply the 80/20 rule to your client base. Strengthen your relationships with those who are contributing the most. Take a hard look at where 80% of your profitability (not sales volume) lies. Seriously consider ceasing business with clients who actually cost you money.
• Maximize and Build Your Network . Stay in touch with people you like and respect, even if they can't help you immediately. Strengthen your referral network by setting up meetings with current and prospective referral sources. This could be your accountant, a non-competing lawyer or the guy who lives across the street from you. Partner with other businesses to cross promote. The Holiday season is here; make an effort to talk to people at cocktail and dinner parties—the person you casually exchange dialogue with over smoked salmon crostini could be your next big lead. Seek out professional organizations that have constituencies that could help you directly or indirectly grow your business.
• Get Your Name Out to the Public . Make use of a little extra free time and jump on the chance to write an article for a professional association (which you have probably been putting off for some time) or speak to members of your local Chamber of Commerce.
• Target Your Communications . Adjust your marketing initiatives to address the current economic situation. Launching a teleconference series on market distress, a website forum or interactive website page addressing the issues your clients are facing will strengthen your position as an asset to your clients.
• Don’t Cut Your Marketing Budget but Allocate Wisely . It is well documented that brands who maintain (some even increase) their marketing during a recession—when naive competitors are cutting back—can increase market share and their return on investment at lower cost than during good economic times. Assess your planned marketing budget. Make a list of the mandatory and proven ‘must haves’ and the less compelling ‘nice to haves’. Then ask yourself “what if we dropped the ‘nice to haves and added that budget to the ‘must haves’”?

On a final note, maintain a positive outlook. The economy is cyclical and while we are currently heading down, a rebound is guaranteed. Things may get worse before they get better, but those who take a proactive approach to marketing and business development will be able to weather the storm and position themselves for the next upswing.