I’ve Scaled My Freelance Paralegal Business to Six Figures - Now What?

Scaling a freelance paralegal business to its first six-figure revenue year is truly not as difficult as some might make it out to be. To be honest, what I found to be the most vital for that first mile stone was consistency. Most paralegal businesses never see their first client because they give up before too long, as paralegals get in their own heads about if they’re actually capable of building such a business in the first place.

I have countless educational materials (blogs, webinars, podcast episodes) that guide you on the journey to start a freelance business that IS scaleable. However, I want to dedicate today’s blog on what to do once you’ve scaled it to six-figures and feel like you’re “stuck” there, wanting to hit multiple six-figures and beyond.

This topic is also wildly beneficial for someone that has not yet hit six figures with their freelance paralegal business. It is good to know the growth challenges and strategies that will take place in the upcoming phases of your business, so you structure and take action today in your current place that will prepare you for those moments.

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Overcoming Challenges in the Growth Phase:

Let’s start first by discussing a couple of the most common challenges you will encounter that, if not focused on, will keep you stuck at the lower six figure mark.

a. Managing Workload:

As you scale your business, you become busier with tasks beyond paralegal work. If you’re making more money, you’re obviously acquiring more clients. Congratulations, your branding, marketing, and referral generation are working!

Now more than ever, as you find yourself onboarding and working with more clients, it is imperative that you create standard workflows and procedures. From the discovery call to intake, onboarding to performing work, you need to refine and establish these.

Even if you’re still a one-man or one-woman show, make sure you’re recording your processes and repeating them to perfection time after time. Have standard procedures for how your workload is balanced throughout the week as well.

  • Systemize your workflow to handle an increasing number of clients, from onboarding all the way to the engagement of work.

b. Setting Competitive Rates:

In business, setting your prices at a point where you’re not completely out of budget for the value you’re providing, but also not too low where your perceived value decreases and your profit margins diminish is going to be something you need to evaluate year over year.

When I help my paralegals through their freelance paralegal business establishment, we discuss this from day one with the pricing. You always want to make sure that your prices fall in perfect balance that gives you room for growth.

For instance, as you scale your business and it takes more money to manage your client list, you’re paying subcontractors or employees to work with your attorneys, you’re requiring more systems and softwares, or all of the above, you want to be sure you have room to do that and still make profit.

30% of $500,000 is more than $100,000, but 10% of $500,000 is less than $100,000.

  • Regularly assess and adjust your pricing based on market trends and your expertise.

  • Offer value-added services to justify premium rates.

  • Analyze your growth plans and make sure your rates are aligning with your needed profit margins

c. Building a Team:

While it is absolutely achievable to scale into $100,000 earnings as a solo freelance paralegal, going beyond that will likely require a support system and/or a team. Simply put, you will eventually run out of hours and your pricing can only be so high. While I do teach my paralegals in my courses how to scale a solo business without hiring a team, chances are if you want to scale to multiple six figures and beyond, you will need at least SOME form of a team behind you.

Start working on developing your network, educate yourself on best recruiting practices, and have a clear and defined roadmap for when you will start bringing in each next hire (depending on your business model).

Scaling a business into and beyond multiple six-figures is always going to begin and end with the people you hire.

Implementing Strategies for Scaling:

What got you to 50k won’t get you to 100k. What got you to 100k won’t get you to 300k. So on and so forth for the rest of your scaling journey. So lets talk about a few things you will have to consider throughout this journey.

a. Diversify OR Perfect Services:

Now, I don’t want anyone on the brink of multiple six figures to go and shake up every service offering that has gotten them to this point. However, it is vital that you always evaluate the way you’re delivering these services and/or identify complimentary services and products that can be added.

This might look like packaging your products (or “productizing” your services), adding physical or digital products that you commonly find yourself repeating for each client that can be created once and sold over and over again.

It might look like adding a new practice area you frequently find your clients dabbling in as a complimentary service in their firm.

b. Automation and Technology:

If your business begins and ends with you, it is only scalable to the extent you have the time for. As we discussed managing workloads in the paragraphs above, you also want to be identifying ways you can start streamlining and automating your common administrative, marketing, CRM, or collaboration tasks.

  • Invest in tech tools to streamline processes and improve efficiency.

  • Automate repetitive tasks to free up time for higher-value work.

c. Marketing and Branding:

Marketing and branding is a never ending marathon, and its absolutely not a sprint. Your main goal with marketing and branding year over year should always be brand trust and awareness.

As you scale your business and start going through growth pains it is common for marketing and branding to take a back seat to the actual fulfillment and CRM of your existing clients.

If this is you, thats a GOOD thing. You’re worrying more about the clients you have than the clients you’re trying to get, and that is one of the best business principles.

However, you want to stay consistent, and shutting off your marketing is never a good idea, so make sure you’re developing a comprehensive marketing strategy, complete with execution and accountability so that it never falls of the back burner.

As you scale, you might also find additional resources to hire a marketing team. Make sure whatever you’re hiring for fits in with what actually works for your business, and spend the most resources in that effort. (PRO TIP: make sure from day one you are tracking and gathering data from all of your marketing channels so you actually know what is working best).

Financial Management:

a. Track and Analyze Finances:

As you scale, one of the most important things you can do for your business is track your financial data and analyze for forecasting, adjustments needing to be made, and future strategies.

For instance, you should have a year over year P&L, monthly, and quarterly. You should be tracking this in comparison for each year and finding which percentage of your income comes from each quarter.

This will help you to forecast busy and slow seasons, as well as make adjustments to your profit margins, keep your business swimming and money in your pocket during the slow seasons.

This will also give you the best insight as to when you should make bold financial decisions, where you should better allocate your resources, and what your next year might look like on trend.

  • Use accounting software to monitor income, expenses, and profits.

  • Plan for taxes and set aside a portion of earnings for business development.

b. Seek Professional Advice:

One of the best and most important professional mentor you can invest in during the early stages of your business scaling into the multiple six figures is a financial professional.

Marketing professionals are great. Business development consultants are great. Obviously, lawyers are great, too, depending on where you’re headed as it relates to risk.

However, nothing kills businesses in their early scaling phases more than poor financial management. Consider investing in a fractional CFO, trusted accountant, or other financial consultant.

Conclusion:

Scaling a freelance paralegal business to multiple six figures is a journey that requires resilience, adaptability, and a commitment to continuous improvement.

By laying a solid foundation, acquiring clients strategically, overcoming growth challenges, and implementing scaling strategies, you can turn your freelance paralegal business into a thriving enterprise. Stay focused, stay informed, and celebrate each milestone on your path to success.

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