The latest episode of Osprey Approach’s Empowering Law Firm Leaders podcast explores why many law firm owners work harder without becoming more profitable – and what it takes to build a practice that delivers genuine profit, freedom and sustainability.
In episode 37, Amy Bruce, marketing director at Osprey Approach, speaks to Michelle Peters, former solicitor at a Magic Circle firm turned business growth strategist, author and founder of The Business Instructor, about the mindset shifts and deliberate decisions that separate what Michelle calls ‘grind firms’ from ‘freedom firms’.
This latest conversation covers:
- What a grind firm really looks like and the three freedoms every firm owner deserves
- Why rising fee income doesn’t always mean rising profit
- The three biggest profit leaks draining SME law firms
- From fee earner to CEO: the identity shift that changes everything
Michelle challenges the assumption that growing fee income automatically means growing profit, highlighting how additional staff, management and other costs can see expenditure rise faster than revenue. She encourages firm owners to look beyond turnover and consider what they are actually taking home for the time they put into the business.
The conversation explores three of the biggest profit leaks affecting SME law firms: undercharging, owners spending their time on work that could be delegated, and an over-reliance on referrals. Michelle argues that leaders need to diagnose the problem before trying to fix it, rather than simply adding more people, clients or activity. “The very first thing is to assess what your firm actually needs, because it won’t be the same as other law firms.”
The episode also examines the shift from fee earner to CEO and why law firm leaders need to redefine what success looks like at the top of the business. “We should be using the term CEO in law firms – anyone running a firm is the CEO, and the CEO needs to be directing the strategy, being in the driving seat, deciding the route.”
Michelle also discusses the ‘scaling paradox’ faced by some growing firms, where increasing revenue can be accompanied by falling profitability, and why seeking help earlier can prevent problems becoming entrenched. “The one thing I hear and see a lot is firms wishing they’d actually got help earlier.”
Future episodes of the Empowering Law Firm Leaders podcast series will feature more industry experts including Darren Stott, client experience specialist at Moneypenny.
Watch the full interview with Michelle Peters now to discover more about building a freedom firm, avoiding the scaling paradox, and making the practical changes that drive sustainable profit.
