Why Your Law Firm Is Getting Bigger—But You’re Getting Broker (And How to Fix It)
- TLTurner Group Marketing
- Apr 2
- 3 min read
Updated: Apr 8
Your Law Firm is growing. You’ve added staff. You’ve taken on more cases. Maybe even moved into a bigger office.
But here’s the problem…
You're making less money than you were when the firm was smaller. Sound familiar?
If so, you’re not alone. We see this scenario play out at law firms all the time—and it’s fixable.
In this post, we’ll break down the three most common reasons law firms grow in size but shrink in profit, and what to do to make sure you get paid more as your firm grows—not less.
The Real Problem: Growth Without Profit
Here’s what we hear from law firm owners all the time:
“We’re busier than ever, but I feel like I made more money when I had a smaller team.”
It’s a frustrating place to be—because it feels like growth. But without intentional financial strategy, it’s easy to grow the firm while shrinking the owner’s paycheck.
Let’s walk through why this happens and what you can do about it.
1. Timing Gaps Between Hiring and ROI
New hires take time to ramp up. Even experienced attorneys and paralegals won’t be fully productive on day one. Yet you start paying their full salary immediately.
This creates a temporary dip in profit—but if you're not prepared for it, it feels like the sky is falling.
How to fix it:
Set clear on-boarding milestones: “By week 2, support X cases. By week 4, handle Y tasks independently.”
Communicate these expectations from the start.
Build a financial cushion for new hires’ ramp-up period.
When firms plan for this lag in productivity, they reduce stress and avoid panic decisions (like over-hiring or under-utilizing).
2. Setting the Wrong Goals (Or No Goals at All)
Many firms don’t set financially aligned performance targets for their team. Instead, they base goals on:
What they did at a previous job.
What they heard at a conference.
Or they don’t set any at all.
The result? Team members are busy—but not generating the revenue required to support growth.
How to fix it:
Work with a CFO (even a fractional one) to calculate:
Required billable hours by role.
Minimum case volume.
Realistic targets based on your firm’s pricing and cost structure.
Break goals down by person and by case type.
💡 Real-life example:
We helped a firm map out how many cases their attorneys and paralegals needed to support based on their salaries and hourly rates.
The result?
Everyone had clarity—and the firm saw a profitability boost within 60 days.
3. Not Knowing Your Breakeven and ROI Points
Before you add costs (like a new hire), ask:
“How many cases do we need to cover this new cost?”
Most firms don’t do this math—and they fall behind.
How to fix it:
Calculate your breakeven: What does it take to cover a new hire’s cost (salary, benefits, overhead)?
Then, calculate your desired ROI (Return on Investment): How many cases (or billable hours) do they need to generate to be profitable?
Adjust staffing accordingly:
Maybe you don’t need a full-time hire—just a contractor
Maybe it’s seasonal work, not year-round
Maybe you need to raise pricing instead of adding more people
What Happens If You Don’t Track This?
Here’s what we’ve seen firsthand:
Staff gets paid…
The firm keeps growing…
But the owners and partners take home less and less each month.
Eventually, you're running a bigger operation that feels like it’s “doing well,” but the numbers don’t reflect it.
How to Stay Profitable as You Grow
If you want to make more money as your firm grows (and not less), here’s your roadmap:
Set realistic on-boarding timelines for new hires
Define performance goals tied to your actual financials
Know your breakeven and ROI targets before expanding
Track your progress weekly using a firm scorecard or dashboard
Don’t Know Where to Start? We Can Help
If you're not a numbers person (or just don’t have time to dig through spreadsheets), we’ve got you covered.
At TLTurner Group, we offer:
Bookkeeping
CFO services
Data analytics and weekly financial scorecards
We help Law Firms like yours:
Get crystal-clear on what’s working.
Avoid costly hiring mistakes.
Ensure growth = more profit.
Want to feel confident that your firm’s growth is actually paying you more?
Click to schedule a consultation
Let’s Make Sure You’re Not Growing Into Broke
Your Law Firm should be growing your impact AND your income. If you’re feeling the strain of “bigger but broker,” don’t wait.
We’ll help you fix the math behind your mission.
📩 Contact us: contact@tlturnergroup.com🌐 Website: tlturnergroup.com
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