Budgeting for a new legal tech investment requires data-driven analysis and careful planning to ensure a smooth implementation without putting excessive financial strain on your law firm. Below, we discuss several factors to consider as you evaluate technology options and how they fit within your budget parameters.
Defining Your Budget
The very first stop when embarking on a new tech investment journey is your budget. There’s no chicken-or-egg debate here – the budget absolutely comes first. Legal tech comes in all kinds of shiny colors, but the one you reach for must realistically match your financial statements (and also your needs – for more on that, check out this post.
One of the benefits of budget planning is that numbers strip away any emotion from the process. As you analyze your firm’s financial health, identify how much you can allocate to legal technology without compromising day-to-day operations. Tech investments involve a large upfront outlay followed by recouping that investment over time, so having a clear grasp on your financial commitment will enable you to pursue options in line with your current and future goals. Here are some other things to include in your budget analysis:
- Upfront investment outlay
- Training costs
- Implementation expenses
- Ongoing tech support
- Security costs
- Maintenance and future upgrades
Each vendor may price their services slightly differently, so be sure you have a clear understanding of what is and isn’t included in the packages you are quoted so you can effectively compare products and services. Selecting the right legal technology is a significant decision. If you have questions about budgeting for technology expenditures or when it’s the right time to upgrade technology, get in touch with us at Honeycrisp. We’ll guide you through the process of selecting the right technology as well as assist with implementation and ongoing maintenance.