Should a lawyer do administrative tasks to save money? Of course, the answer is no.
Struggling business owners will spend time to save money, whereas successful business owners will spend money to save time. Because you can always get more money—you cannot get more time. So, you need to ensure the work you spend your time on makes the biggest impact.
This is called leverage and leverage is the best kept secret of the rich.
It works like this:
If you spend five hours per week on administrative work at $400 per hour x 4.3 weeks per month it will cost you $8,600.00 per month of billable client hours. Over the course of a year that is $103,200.00 of billable time that you could be billing to a client if you weren’t doing administrative work yourself—such as client billing and collections, payroll, HR, marketing, etc.
And may I say, probably spending more time on administrative work since you went to law school to practice law.
Elizabeth M. Miller is presenting a webinar for members of Law Office Manager on Nov. 15, 1 p.m. ET. She will discuss the pros and cons of flat fee billing. Sign up here.