You Have to Spend Money to Make Money

Our law firm is at a stage where we are rapidly growing and expanding, not in the area of attorneys but in the area of staff and support.  As we continue to bring more support people on in order to provide better legal services, increase quality and improve responsiveness, I have to wonder.  Will this increase in expenses result in an increase in revenue?

There’s an old saying that I think that applies well in my situation.  You have to spend money to make money.  One of the things I learned my first year as a law firm is that it is important to take risks with capital.  I took a tremendous risk by investing my own money in start-up operations.  All of my start-up costs were re-reimbursed by the end of the year.  The good news for this year is that the firm gets to invest a portion of its revenue back into the company.  but I suppose it doesn’t make a difference since the money would otherwise be distributed to me as income.  Regardless, we are taking a healthy dose of risk in reinvesting money in ourselves.  I’ll let you know how it works out.