This morning I consulted my Magic 8 Ball about the impact of the economic meltdown on law practice (which, as I understand it, is the same technology currently utilized by Hank Paulson and Ben Bernanke) and the results were sobering:
As the stock market makes yet another pirrouetting nosedive, we have by now heard opinions from both ends of the spectrum: “don’t panic, it’s panic that is the problem” and “it’s all over, barter your legal services for canned goods” If that doesn’t cause you some massive cognitive dissonance, go buy yourself another cup of coffee and wake up. I traded my 401k portfolio to a barista for a grande latte this morning. But I digress.
Here’s the thing: you can only control what you can control.
I don’t want to go all Yoda on you or anything, but this is a good time to figure out the difference between what you can control in your practice and what you can’t. Freaking out about the things that you can not control not only doesn’t help, it also comes with the opportunity cost of not doing some things that might help at least a little.
The things you control will not solve this problem (unless you happen to be a key member of the international financial community, in which case I humbly suggest that you STOP READING THIS BLOG POST AND FIX THE ECONOMY), but they may help dampen the negative impact. Think of it as boarding up windows before a hurricane. If the storm is bad enough it won’t save you, but it can’t hurt and might help.
In that vein, here are 3 things you can control, 3 things you can focus all your excess worry and energy on right now:
- Collect — your outstanding accounts receivable.
- Stop — working for clients who are not paying you.
- Slash — budget items that are not mission critical.
You might have other things that you can control, as well, but if you focus on just these three, you may collect a bit more income, stop doing some unprofitable work, and slash a few expenses that don’t help you serve your clients or make money. The result is a bit more positive cash flow to help you keep on trucking.
At least that is what my Magic 8 Ball told me.
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