I was recently working with one of my long time clients – a top law firm in Detroit.  As we all know, the Michigan economy has been in a downturn for several years.  But, this firm has been having the best fee producing results in its history. And, while they do a lot of turnaround work, this is not the predominant driver of its success.

The experience of this client is not unique. 

Preparing to Originate Don’t panic. Digging deeper into the situations of your clients and top people in your network can readily uncover opportunities. Change does bring needs to the surface, if you look for them. Sharpen your focus on top relationships, key clients, advantageous niches and needed services. Embrace alternative fee arrangements and help clients save even more cash flow through the services you offer. Work closely with your clients on a downturn plan. Look for lax efforts and inattention on the part of competitors. Use your extra down time build strong relationships in the future.

Today, there are many firms that continue to generate record levels of fees in the face of the wide spread recession.  And the rainmaking partners that we work with are adapting to the times and continuing to fortify relationships, find new opportunities and close business.  All without becoming desperate or frantically chasing business

Why Is a Business Downturn a Great Time To Do Business Development?

Why do rainmakers thrive in this environment?  First, they are always proactive and client focused. So, they use the economic times as a reason to get even closer to their clients and to help navigate the rough waters.  Two, they know that their clients and contacts are hurting and need their help.  Third, they are always adding business value to their clients in excess of the fees they charge – and they are open to arrangements that may save the client costs.

Finally, they know that many of their competitors are either complacent or more passive. Many firms who are reliant on transactions or single matters often don’t stay connected or build relationships when there is no active work. So, when work dries up; they are nowhere to be found.

Rainmakers look at things differently than the average attorney. Certainly, clients are looking to cut costs and save money in a downturn – and attorney fees are not exempt from this. Also, clients may not be pursuing the number and range of deals as they do in good times.

But, there are also positive aspects. Here are a few that rainmakers have shared:

• Economic pain is acute: Client buy services to avoid or alleviate point of business “pain”.  The economic downturn brings a lot of business pain to the surface
• Change is the norm: Tough times don’t allow the status quo to prevail. Changes in the business – reducing the work force, re-negotiating contracts or selling assets all create opportunities for the go-to business advisor
• Costs must be reduced: Attorneys can be an asset in reducing costs well in excess of their fees.
• Relationships are solidified: Attorneys are in the relationship business.  People remember those people who were there, shoulder to shoulder, working through the tough times. Even if you aren’t doing any active work, just being a sounding board or source of informal advice and counsel will be highly valued.
• New services erupt:  Think about the credit crisis areas as an example. Litigation exposure can come out of the blue.  The need for employment work and troubled supplier workouts rise dramatically.
• Alternatives are considered:  Some clients must be open to making changes. For example, clients who may have paid the top rates of big law firms may now be looking for lower cost alternatives
• Current attorneys may be inattentive or distant:  Again, any clients are served by attorneys who may have historically taken the client for granted. If there is no current work, the attorney may be missing in action.  Now is a good time to court clients in this circumstance.
• People are displaced: Losing a job is devastating.  So, make it a point to be a good business friend to your contacts and clients who are displaced. Make time for coffee, offer to make introductions and be an empathetic listener. When they land again, they will remember your help.
• You may have more time:  Some people will have less billable time, especially in cyclical businesses such as real estate. Use this time to make more contacts and become more prominent in the association you target.

OK. So, there are possibilities and opportunities out there.  So, what do you do?

Your Personal Marketing Plan for a Business Downturn: Critical To-Dos

Your business development plan should be more pro-active, relationship-focused, selective and contact-based than ever before. Here are the critical to-dos:

1. Prioritize your business relationships and intensify your "A" relationships: Your business relationships with clients, colleagues, allies and contacts are your most important career assets; and a business downturn can help to improve the depth, quality and breadth of these relationships. People remember and value how you help them in tough times. Sit down and inventory your relationships. Prioritize them as A, B, and C  –  where A's are your ideal relationships, as well as those who are willing and able to help you grow your practice. For each A, think through how you can best help them right now and in the months ahead.
   
   
2. Get even closer to your top clients: There is a fundamental rule that rainmakers live by. Rainmakers know that they are in the relationship business. And this is never truer than in a business downturn. Going through tough times together, making the needed adjustments and tackling some painful difficulties will strengthen your relationship. Have a specific client action plan to routinely meet with senior executives to understand their business priorities and management agenda. Conduct a relationship review to find out what's working and where improvements can be made. Meet with executives across the board and at different levels. Emphasize face time and one-on-one marketing. Remember that your best clients are your competitor's best prospective clients. And, if they're having trouble, you want to be the one to help them out of it.
   
   
3. Develop a downturn plan with your top clients: Meet with your top clients and conduct a "how's business" dialogue. Use the downturn as a reason to even dig deep into their management agenda. Come up with an action plan to address their challenges. Be more pro-active and forward-thinking than your competitors (who could be even more aggressive during the hard times). Consider having the client conduct a “reverse seminar” where they educate you and your team on their current business goals and challenges. 
   
   
4. Adopt a "helping" mindset: Don't just focus on business development. Instead, concentrate on how you can help your A and B contacts to make it through the business downturn. Can you make introductions for them? Can you simply listen and empathize with them? Can you get them some value-added resources or ideas to address their current priorities? Is there an industry or business conference that you can both attend for mutual value? Can you help those who are being displaced? Make it a goal to meet or talk with all of your A and B contacts in the first quarter to see how the business downturn is impacting them and their families.
   
   
5. Focus even more selectively on market niches: Don't be too generic or diffuse in your business development:  it is even more likely than usual to fall on deaf ears. Focus more precisely on a discrete set of ideal potential clients in small segments. For the list of clients, identify the specific business trauma they are facing and the results they seek. Then, focus all of your business development energy and effort on landing these specific clients…so that you are clearly relevant, valuable and differentiated from the average attorney.
   
   
6. Pick 1-2 business problem/service areas and market them intently: Based on your thinking and analysis in step 5, pick the 1 or 2 services areas that have some immediate relevance. Define all the different ways that you can promote these specific services to your target niche. Write up case studies. Book speaking engagements. Create client briefings. Meet with your firm marketing professional to develop a cohesive, integrated marketing plan.
   
   
7. Co-market with professional allies: Don't go through a business downturn by yourself. Recruit a professional ally and build your practices together. Find a like-minded entrepreneur in a related professional field (accountant, banker, consultant, financial planning professional). Define mutual goals and a co-marketing plan. Introduce each other to your clients and contacts. Double team business associations. Meet monthly and re-commit to your shared goals and action plan.
   
   
8. Team with firm rainmakers: Make an appointment with a firm rainmaker that you know. Ask them what business development initiatives they are pursuing and what help they need to pursue these initiatives. Volunteer to help out and develop a work plan together.
   
   
9. Give each proposal opportunity your absolute best effort: When you have the opportunity to win some work, treat it like a big case. Research the client. Interview contacts who work at the client or have inside knowledge. Identify the business trauma and results they desire. Explore how they will make a decision and the criteria they will use.
   
   
10. Embrace alternative fee arrangements: Clients want fee certainty. Think about creative ways for clients to consolidate work with you.  This can range from outsourcing to fixed fee arrangements. Clients are demanding these changes; so figure out how to make it work.
    

I am old enough to be through four recessions in my business career – and this one is bad and somewhat unique. But, tough times never last.  So, make the most of it right now, gain the business you can, and ensure that you come out of the recession better off than before.

© 2009 PBDI/SAGE PDI. This article comes from the April 2009 Issue of ORIGINATE!, the online monthly newsletter (with ongoing support resources) dedicated to helping individual lawyers develop business successfully in order to build their careers. Our September 2008 anniversary issue is complimentary; otherwise articles are usually available to subscribers only. Find out more about subscribing at www.pbdi.org/originate.