I was disappointed to read this week that a conveyancing firm is closing. Whatever the size of the firm, I am always saddened to hear of firms closing, and I think about the staff and the clients, and the different upheavals they will now go through.
However, when you see the way in which this particular firm grew and how it grew, you have to think about the business decisions which will have been made along the way.
For a firm to grow from 77 members of staff to 181 in the space of 12 months, and then to have net liabilities of almost £2.5 million, we can only wonder about the business model and how did a firm get to that position.
However, one of the most startling things that I saw was that part of the firm was owned by an estate agency.
I am sorry, but this brings me back to a common discussion point of mine: fees. Charge properly. Do not be dependent on referral fees. Look after your staff, both financially and emotionally. Look after your clients and don’t do the work for very little reward, especially if paying referral fees.
Any such fees bring down your profit margin, no matter how much work you have. Clients will pay more for a quality service and that is what needs to be provided because it does enable investment in both staff and technology.
There is a saying I have pinned to my office notice board for all to see:
Turnover is vanity, profit is sanity.
Charge a good fee and stay sane!
