If you’re a believer in the doom and gloom outlook for the profession (and I am), then you’re likely wondering what you should do about it.

What actions should you take to prepare for the dark days to come?

My Armageddon Action Plan

1. Outsource everything other than your core function. If you’re not good at it, ditch it. That includes accounting, technology, legal functions outside the core, and administration. Reduce your headcount.
2. Eliminate real estate. Cut the expense by shrinking and do away with the long-term commitment. If you own it, sell it. If you lease it, cut the term and the square footage. Don’t end up personally liable for a big space you can’t use.
3. Make all remaining costs variable, starting with payroll. Implement variable pay plans for all employees and make all other expenses rise and fall with revenues. Negotiate new deals on everything as your commitments end.
4. Clean up your books and stop extending credit. If you’re owed money collect it. If you’re extending credit – stop. If there’s debt, pay it off and resolve any contingent liabilities.
5. Experiment with new offerings. It’s time to figure out what’s going to work in the new marketplace, and this is the time to test your ideas while you still have the cash flow from the existing practice. Gather data as you go and measure your results.

The incumbents are almost always killed off by the challengers. Put yourself on both sides of the equation by being the challenger as well as the incumbent. Assume the challenger will win, and prepare your business for giving up the incumbent role rather than being strangled by it.

These steps put you in a posture that allows you to adapt to the changes as you figure out the new model. It’s essential that you take action now as each of these steps can take a couple of years to take full effect.

What Will Things Look Like Post-Armageddon?

For some, the new model will look much like plumbing (because you’ll be a plumber). For some, the new model will look like selling copiers (because you’ll be selling copiers).

For those left in the legal arena, it’s difficult to know exactly what things will look like because no one really knows. Some experts are making their best guesses (here and here). But their best guesses are still guesses.

The key is to be ready as the new model emerges so you can take advantage of the changes and compete with the challengers.

This is musical chairs. One of the chairs just got pulled away.

Will you find a seat?