By Steve Fretzin & Diane Camacho
From Struggling to Thriving
Lawyers face a unique challenge when building a practice. Legal expertise forms only one part of the equation and successful firms rely on sound operational strategies. Diane Camacho, a veteran in legal management, understands this dynamic more than well. Her work with law firms reveals the critical elements needed for sustained growth and, of course, success.
For those who aren’t familiar with Diane, she’s been in the legal field for over 30 years, starting as a secretary before moving into management roles at both small firms and national branches. Today, she specializes in helping solo and small law firms streamline operations, address financial hurdles, and make strategic decisions that support sustainable growth. In short, she’s the go-to expert when law firms are looking to build a foundation that allows them to thrive, not just survive.
Many attorneys reach a point where they’ve built up a strong book of business and are ready to branch out, but making that leap can be intimidating. Diane guides those attorneys through the process, ensuring that they can start billing clients immediately after leaving their previous firm. This process is invaluable for lawyers who want to maintain momentum in their careers without the daunting task of setting up operational logistics on their own.
One of the more important things is to having systems in place right from the beginning, and not overlook the operational side of running a law practice. Having a clear plan for how the business will function, including financial management and client intake, is crucial. When done correctly, attorneys can focus on what they do best—practicing law—while leaving the administrative and operational concerns to experts like Diane.
Another aspect to consider, is the financial management of a law firm, which can often be a stumbling block for lawyers. Diane noted that many firms do not fully understand the costs associated with their services. For example, they may hire an associate without calculating whether that additional hire will actually result in increased profitability. This lack of understanding of the true cost of services, whether billed on an hourly or flat fee basis, often leads to financial stress.
Diane emphasized the importance of looking beyond just hours billed. Attorneys must consider the full cost of their operations, including staffing, and be diligent about tracking their realization rates. It’s not enough to work hard; you need to ensure that the work you’re doing is actually generating the income you expect. Understanding financial reports and making data-driven decisions are key to maintaining a healthy practice. A law firms need to have a clear understanding of their financial health through regular reporting. Whether it’s profit and loss statements, accounts receivable, or understanding client profitability, having accurate and up-to-date data is essential.
Another major issue facing law firms today is technology integration. Older generation lawyers, especially, are hesitant to adopt cloud-based systems. Diane sees this resistance often and explains that the security advantages of moving to the cloud far outweigh the costs. Because you can’t protect information on a physical server as effectively as you can with cloud-based solutions. She stresses the need for law firms to prioritize the security of their data.
But it’s not just about security. Embracing technology also means streamlining processes through automation. Diane noted that many law firms have invested in software that has automation capabilities but fail to use them due to the upfront time and cost of setup. This is a missed opportunity, as automation can save countless hours on repetitive tasks, freeing up attorneys to focus on billable work.
For smaller firms, automation in client intake is becoming increasingly popular. Tools like Calendly or Acuity simplify scheduling and ensure that clients don’t have to go through the back-and-forth of finding meeting times. While there may be initial resistance to these automated systems, once implemented, they are overwhelmingly appreciated by clients.
Every law firm operates differently, and there’s no one-size-fits-all solution. Whether it’s compensation models, succession planning, or operations management, Diane works closely with each firm to develop strategies tailored to their specific needs. This personalized approach ensures that firms can achieve their goals while maintaining their unique identity.
As law firms continue to evolve, those that embrace operational efficiency, financial clarity, and technological advancements will have a distinct competitive advantage. With experts like Diane guiding the way, attorneys can focus on what they do best—practicing law—while building a practice that’s set up for long-term success. Whether it’s automating processes, managing finances, or structuring compensation, the key is to stay adaptable and forward-thinking.
For more information about taking your law practice to the next level, please email me directly at [email protected].
Steve Fretzin, an expert at legal business development, is the author of four books regarding the topic and is the host of the Be That Lawyer podcast. He has helped hundreds of attorneys across the world dramatically grow their book of business while living a well-balanced life. He can be reached at [email protected].