Welcome to The One Minute Manager. Our goal is to provide you with quick tips that will enhance the success of your practice. Within 60 seconds you will gain an idea that will increase your profitability or simply ease the burden of a difficult management issue. We hope you will find this a valuable resource.

The One Minute Manager . . . . .

A recent article in the National Post indicated that 97% of Canadian businesses employ 5 or fewer employees; a further 2% employ up to 500 employees; with only 1% being large scale employers. The Canadian business community is clearly dominated by very small players. A further article stated that there are just over 470,000 millionaires representing 1.5% of the population. Again, a very small consumer marketplace of wealthy individuals.

Despite a marketplace that is dominated by micro businesses and struggling individuals, most law firms direct their marketing efforts towards the major players. Unquestionably the lucrative fees and lawyer egos are the drivers for this direction. Acting on behalf of Mega Corporation has more appeal and intellectual challenge than the ABC Machine Shop.

However, a reality check is needed. Ask your accounting department to provide you a list of your top 25 clients in descending order of fees billed. A lucky few will have a small number of clients in the $100K plus category, but you will note a dramatic drop off in fees billed as you go down the list. The classic 80/20 rule usually applies where 80% of your revenue is generated by 20% of your clients.

The question is whether you are losing revenue potential from the 80% of clients that have been marginal contributors. If your marketing efforts are focused on the major clients and the marketing budget is consumed mostly by the rainmakers, then you have unrealized potential from those smaller clients that are already in your door.

Allocate a portion of your marketing budget to the under-appreciated mass that sits below your top billing clients. More importantly, make these clients the training ground for your junior partners and high potential associates. This is your growth area for the successors to your rainmakers and future revenue. This simple shift in marketing direction serves the dual role of succession planning and growing the business from 98% of the marketplace that is largely untouched by your competitors.