Economic Shocks Created Our Grit; Now, We Stand Ready 

When I graduated law school in 2013, the United States was crawling out from the Great Recession’s aftermath, and jumping into a debt ceiling crisis. Since then, we have faced the Covid-19 recession, the boom-then-bust of digital assets, and now—we stand at the cusp of yet another recession.

These shifts don't just affect us mentally, as individuals—-they impact the ability to consider our family’s future or our next strides in life. They also impact every business decision we are part of. They put teams in the hot seat to do more with drastically less, move quicker to find profit—all while protecting against rattles to the company.

At Lawtrades, we’ve watched, learned, and followed how the best in-house teams stay resilient during these moments of turbulence. Those moments have also honed our own abilities to adapt with those teams in times of stress and uncertainty—to fulfill our clients’ goals, which in turn, fulfills our mission.

TL;DR: Standing still during this time isn’t the move. It allows the sharks to circle, and the other swimmers (i.e. competitors) to lap you. As the lawyer in the room, you must take action.

We put together a quick list of key action items to check-off, to evidence to your business that you are ready for battle, and to your own growth, as these times create the experiences required for the next economic crisis—because one will always rear its head when you least expect it.

1. Gut-Check Your Hiring Plan When Numbers Miss

The first lever for many GCs is headcount. If your company’s falling short of revenue goals or capital is tight, don’t be the guy in the room asking for a heftier control environment and more heads. Reassess what roles are truly critical, and scale when growth comes back. 

2. Scrutinize Legal Spend Line-by-Line

Tough times force tough questions. Look at every outside counsel invoice. What could’ve been handled in-house or through a more cost-effective partner or consultant? Shifting work from big firms to in-trench specialists or contractors may result in major savings without a drop in quality.

3. Use Tech to Absorb the Volume

When RIFs happen or hiring freezes hit, the legal work doesn’t stop–instead it increases. Legal teams that thrive often lean into legal tech, contract attorneys, and AI — to create leverage and reduce manual steps. Don’t fear the unknown. Ask around, try new legal tech, and get guidance from new tech-forward contract counsel or consultants, that can 10x your output.

4. Renegotiate Vendor Terms

Your vendors are feeling the squeeze too. We’ve seen many clients successfully renegotiate payment terms (e.g., shift to a 90+ day payment period), defer renewals, or scale contracts based on transaction volume vs. minimum monthly requirements. These steps are especially critical during an interest-high environment - as cash in your coffers earns more cash.

Final Thoughts

The current economic climate is not only challenging, its left-field suprising. However, sitting around for your business to save you cuts at the knees of the stoic lawyer’s role during tough times. Instead, step up now as a strategic business partner. By staying lean, flexible, and tech-enabled, you’ll not only weather the storm but come out stronger–both your business and your skillset.

Raad Ahmed‍

CEO, Lawtrades

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