Law firms struggling with cashflow problems - FRJ Business & Marketing Solutions

August 2012

Cashflow problems are getting worse for law firms as Britain’s economy struggles in the recession, new research has found.

According to a survey of firms, carried out by the Law Society’s Law Management Section (LMS), 40% experienced more cashflow pressures in the three months to August (2012) than in the previous quarter.

Of the 51 firms surveyed as many as a third said they had considered merging with another practice to ease their cashflow worries.

One in eight said they had injected extra money into the business, while a similar percentage admitted reducing partner salaries.

A third of practices said they were operating within 25%  of their overdraft limit, while one in six admitted operating within 10% of their limit on a regular basis.

Fareeda Jaleel, founder of FRJ Business and Marketing Solutions, said: ‘In these tough economic times it is vital that firms have a clear strategy and plan in place to ensure future growth.

‘It may be stating the obvious to say that firms need to understand their business model inside out in order to succeed, but so many don’t. It is not enough to simply muddle through because in a recession only those that have proper plans and goals for the future will survive.’

Fareeda Jaleel

Fareeda Jaleel is an energetic strategic business planner with extensive experience in various sectors in B2B and B2C markets. Fareeda’s personal mantra is that the answers always lie in the numbers and achieving an ROI from marketing and business development, whether it is relating to sales targets, creating pipeline or building the profile of the business from an investment perspective.

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FRJ Business and Marketing Solutions offer great value, practical advice to help you achieve your business goals.
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GET IN TOUCHSocial links
Taking seamless key performance indicators offline to maximise the long tail.