Solo Practice University® » Solo & Small Firm Practice

Why Young Solos Want to Partner Up and What They Should Do Instead

Rachel Rodgers — Thu, 10 May 2012 11:30:14 +0000

Should I partner with another attorney when starting my practice?

This is a question often asked by young lawyers who want to go solo. And the answer often given by seasoned solos is either 'no' or the more emphatic 'hell no.' This response is usually accompanied by a horrifying story of a partnership gone bad that wrecked the credit, reputation, sanity, etc. of one or both of the partners. Hence, the response, don't partner up.

Why Young Lawyers Really Want a Partner

Few of the young lawyers seeking a response to this oft-asked question are really looking for a partner. I think what these young lawyers are really looking for (as I was when I was in their shoes not long ago) is confidence.

These young solos are scared. For many of them, every lawyer that they share their solo plans with has negative things to say. Having a partner gives them someone to share their struggles with, someone to review their work and someone else with the seemingly-crazy idea of going solo. It also means instead of just having a solo practice that rests squarely on their shoulders, they have a "real" firm with more than one attorney. This gives young lawyers starting out a sense of legitimacy.

While some young lawyers will greatly benefit from partnering with the right person, having a partner in their solo venture will not solve the ‘lack of confidence’ problem. Additionally, the loneliness, responsibility and work review can be dealt with in a much simpler way.

What Young Solos Should Do Instead

As many a seasoned solo has told a young solo, taking on a business partner is like getting married. Therefore, finding the elusive “right” partner is like finding a spouse - often requiring years of searching. And, of course, maintaining the relationship is just as much work as maintaining a good marriage.

As any married person will tell you, being single is much simpler than being married. And the last thing a young solo needs is to further complicate the process of starting and running a law practice.

The fears that come up when considering the solo life can be resolved with one bold action:

Put yourself out there.

Announce your freaking firm to the world! Tell every lawyer, law student, recent grad, law professor, judge you know that you’re going solo. Attend conferences and other networking opportunities and tell the lawyers you meet that your a new lawyer and you’re going solo. And don’t say you’re thinking about it when you’ve really already decided it. Don’t downplay what you’re doing. Talk about it. Don’t sheepishly hide in your office. Put yourself out there.

Do this, even though you may run into negabots who will not be supportive of your solo plans. In my experience and the experience of many other young solos I know who have done this, you will make connections with colleagues who remember the fear (and exhilaration) they experienced when they went solo. They will support you. They will respond to your emails and send you resources. They will become mentors and friends.

That’s how you obtain mentors who can give you guidance and a boost of confidence when fear comes up. That’s how you obtain solo peers you can commiserate with when things are tough and celebrate with when things are going great. Its also how you get advice and referrals, find out about relevant events and develop a community of cheerleaders and friends in fellow lawyers. Coincidentally, its also how you will find the right business partner, if that is the right path for you.

Written by Rachel Rodgers

Guest Lecture with Jared Correia – Tech for New (and Not So New) Lawyers

Susan Cartier Liebel — Tue, 08 May 2012 11:30:52 +0000

Jared receives countless questions from new solo lawyers and solos who have been in practice for decades but need advice on law practice management. We like to ask Jared what it is on lawyers' minds and (no) surprise…it's technology, cloud securiy, google, and law practice management software. However, you might be very surprised by what Jared has to say. I was. Join us as we discuss these important and timely topics.
If you are a new lawyer in Massachusetts or a paying member of the Massachusetts bar, be sure to connect with Jared. LOMAP's services are free for those who qualify.

The audio is about 45 minutes. Listen or download directly below.
Guest Lecture with Jared Correia

Jared D. Correia, Esq., is Law Practice Management Advisor at MassLOMAP (Massachusetts Law Office Management Practice). Prior to joining LOMAP, he was the Publications Attorney for the Massachusetts Bar Association (“MBA”). He was the first Publications Attorney for the MBA, and established the continuing legal education publication protocols and standards. In addition to overseeing the MBA’s CLE Publications, he also managed the MBA’s version of Casemaker, an online legal research product provided free of charge to MBA members. Prior to joining the MBA, Mr. Correia was a private practice attorney, working in the areas of general practice and disability law, in small firms on the Southcoast, North of Boston and just outside of Boston. Mr. Correia’s general practice encompassed a diverse range of legal subjects, including the handling of administrative hearings, personal injury law, family law, tax law and property law matters. Mr. Correia is active in raising funds for cancer research and has founded a charitable organization to benefit autistic children. He is a graduate of Suffolk University Law School and Saint Anselm College, where he was a captain of the Saint Anselm College Debate Team that finished second nationally in 2000.

Connect with Jared on Twitter . You can also follow LOMAP on Facebook, visit the website or read the blog.

Written by Susan Cartier Liebel

What Are You Doing To Help Your Business In This Troubled Economy?

Susan Cartier Liebel — Mon, 07 May 2012 11:30:30 +0000

John Jantsch wrote a terrific piece a few years ago called "7 Time-Tested Ways to Dig Out From a Recession". My position, however, is a little different. You should be doing these things ALL THE TIME.

While you can read all seven ideas on John's great site, I'm going to highlight numbers three, six and seven because I know the first two are the hardest for me and the last should be done religiously:

3) Get out from behind the computer – Building personal relationships is always in style. It’s very tempting to sit and write blog posts and participate on social networking sites, and while these aren’t always bad things – sometimes you need to go out and shake some hands. Make it a point to go to several industry conferences every year. Join an industry or chamber type group and go to events where you can make connections with prospects and partners. Join a referral group such as (fill in the blank) and participate. Go visit your customers and ask for referrals.

It is very easy to get comfortable communicating solely on the internet. It's fast, fun and you are not locked into a schedule. However, if you are reading my blog or any blog on a regular basis, subscribe to RSS, sync your e-mail with your IPhone, the fact is you are in the distinct minority of all your potential clients. Most people are simply not as up-to-speed technologically and by the time they figure out what you already do effectively, you will have moved on to something even more advanced.

And while we socialize with like-minded professionals on the internet, the fact is there is a huge gap between us and the many potential clients and referrers of potential clients out there who could use your services. Get out, mingle, physically meet others, professionally socialize even if it is just a few select times a year.

6) Repackage your products and services with offers to act- This goes along with differentiating really, but sometimes you’ve got to give that tired old dog a new look. Find simple ways to relaunch yourself, your people, your products, your services, your packaging, to give yourself a new start in your market. You don’t need to start from scratch, look for innovative ways to repackage, reprice, redeliver, re-guarantee and re-communicate about what you do. Make them an offer they can’t refuse, make it so bold they must rehear you.

This is so true. Give your blog a face lift, create some excitement about a change in your services or products. Promote if you are switching over to a Virtual Law Office or offering unbundled legal services or revamping your pricing from billable hour to value pracing. Try to attract your market in a novel and exciting way. It will not only invigorate your potential client base, it will also invigorate you. Practicing in the same rut only gets you deeper into the ground. When you eventually try to step out you will feel like a neanderthal and overwhelmed at the changes you will now first have to make.

7) Fix the marketing gaps – In every way, shape, and form that your business comes into contact with your prospects and customers it is performing a marketing function – good or bad. You must look at all of your customer touchpoints and turn them into positive, brand-building opportunities. Tear down the lead generations touches, sales touches, service touches, delivery touches, follow-up touches, transaction touches, and billing touches and make sure that every single one of them is a performing a killer marketing function for your business.

Every word you write, every syllable you utter, every piece of paper with your name on it is a touch point with your brand and a business opportunity. You just have to realize it. Once you do you will see all the unconscious marketing opportunities you have available to you and will understand the phrase "you are on 24/7."

Time to take inventory of all your touchpoints with clients and fellow attorneys including your use of social media like Twitter, Facebook, LinkedIn, YouTube. You will be amazed how many marketing opportunities you may very well be missing or using incorrently which, when used correctly, can help fill the client pipeline…especially when times are tough.

Written by Susan Cartier Liebel

Retirement and the Solo Practice – A Gold Mine for a Young Lawyer

Susan Cartier Liebel — Tue, 24 Apr 2012 11:30:31 +0000

This post was written by Bob Minto and has been reprinted with permission. Link to original article.

Robert W. Minto, Jr. has served as President and CEO and Director of ALPS Corporation since 1987. He also serves as President and CEO of Attorneys Liability Protection Society, Inc., A Risk Retention Group; Peak Investment Management Ltd; ALPS Risk & Insurance Services Inc.; and Foundation Services Corporation, all subsidiaries of ALPS Corporation. Mr. Minto also serves as President and CEO of Lawyers Reinsurance Company (Vermont). Mr. Minto received his B.A. degree in Business Administration from the University of Washington in 1969 and his J.D. from the University Of Montana School Of Law in 1973. He served as an Associate (1973-1977), a Principal (1978-1991) and Of Counsel (1991-2000) with the law firm of Worden Thane & Haines in Missoula, Montana. Mr. Minto has been a member of the State Bar of Montana and the American Bar Association since 1973. He serves on the State Bar of Montana Lawyers Fund for Client Protection; the State Bar of Montana Law Practice Management Committee; and the Montana Justice Foundation. He also serves on the Board of Governors of Property Casualty Insurers Association of America (PCI).

Last week I turned sixty-five and realized that I am not far off being eligible for Social Security and Medicare. The problem is I don't feel old enough to be eligible for either, and I have no desire to retire. Sixty-five used to be the milestone that people kept in mind as the date when they got the gold watch and started drawing their retirement from their employers defined benefit pension. Very few of those exist anymore and most of them have been turned over to the Pension Benefit Guarantee Corporation (PBGC) as part of a corporate chapter 11 bankruptcy filing. Now for many of us it's just another birthday with no meaning greater than any other. This thought string got me thinking about lawyers and retirement generally.

The world has changed a lot over the past forty years, and the legal profession is no exception. When I joined my first firm I didn't buy in, I just made a commitment to participate in the buy-out of senior partners when they retired. It was neat, clean and easy. I didn't get hit coming in when I didn't have a lot of money and had a young family to care for. I had some years to get my practice better established and my financial situation a bit better situated before the first senior partner retired. It worked well and the buy-out represented little more than his share of the receivables as of the retirement date and it actually worked out that paid monthly over a period of years, I came out net ahead as the receivables covered the early payments. In talking with firms today, they have different mentalities (varied) which include buy-in, no buy-in, no plan, and a whole bunch more options that I don't understand. Today, firms seem to be more worried about lawyers leaving early and who owns the clients and how do we deal with defections. These are indeed different times. Retirements in mid- to large firms generally go pretty smoothly, with little or no buy-out, but a well-funded 401(k) plan to make the golden years comfortable.

As the old saying goes "old lawyers never die they just lose their appeal." I am beginning to think "die" should be replaced with "retire," at least as far as for those in solo practice or small firms of 1, 2 and 3 person(s). Where economics remain tough and available, retirement plans consist of IRAs and not 401(k) plans. Sure you can incorporate a solo practice and set one up, but if you do you have to fund for employees and the headaches become much more difficult with safe harbor rules and the like. Besides, if you fully fund it every year you will be taking it out of your own pocket and somehow that seems harder to do than when you take it out of the firm's collective pocket.

So how do solos and small firms manage the transition? I find that mostly they ignore it until they have to deal with it and then it usually means breaking things up. The lifelong practice of bringing younger lawyers into a practice so you could turn over clients seems to be waning as fewer and fewer young lawyers want to take on solo practices and many of them have so much debt going in that they can't support themselves and make the debt payments. I know of several cases of small town practices just closing because the lawyer at age 75-80 decided he or she needed to give it up. They can't even give their practice away.

Today you just don't find good mentoring going on in many firms. The partners don't have time to spend (waste) teaching a new lawyer all the things about practice that they don't teach in law school. In a small practice with a retiring attorney you have a gold mine, a virtual mother lode if you will. They aren't trying to build a practice, their economic needs will be considerably smaller and they will want a place to come to the office and have coffee for a number of years so they will be around when you have questions or need help or even to fill in so that you can take a vacation.

I can go on for hours about the benefit of taking over an existing practice, in a city or a small town, but I think you get the picture. It's about getting started on the right foot, learning the ropes from a pro and not having to take everything that comes in the door to survive.

Why do I care about transitioning practices rather than closing them? I have a lot of reasons, but mostly it's about continuity for clients, and finding a way for older lawyers to slow down and still remain useful in their own eyes (big one here) and able to make a huge contribution to the future of the profession. I know a lawyer right now in his eighties that still comes to the office (all alone) every day that outsources his clerical work and handles non-court matters for his clients. He enjoys the clients, but he wasn't a good planner and still needs the money to supplement his social security and Medicare. His practice (I know it very well) could easily produce enough to support a young lawyer and a secretary if he didn't refer the court matters out of the office and he could probably work less and have just about the same income if he had a younger lawyer helping him with the office administrative stuff. In addition I can't think of a better mentor for a young lawyer than this particular gentleman.

My point of this particular ramble I am not really sure, but I guess I want to bring focus to an ever growing issue. \

Being a Baby Boomer, I have an army of brothers and sisters at the bar that will be facing practice transition in the next ten years and I see it as an opportunity for law schools and law students to make a difference. The law schools could start focusing on pairing graduating students with these opportunities rather than settling to post them on an employment board in the student lounge. They can develop mentoring guidelines and suggestions that give order to the transition and give a little thought to how they might assist older lawyers frame or posture their practices to make them more attractive to a young lawyer in the coming years. The local and State Bars might look at what they can do to help make the generational connections work better and promote the advantages of small firm practice.

I don't know where the practice is heading; I wish I did, but I can tell you it will change. The signs from the large firms indicate a struggle to make the economics work, and the signs from the small firms indicate insufficient structure to make them attractive to new lawyers. We probably should have been thinking about this a few years ago, but we didn't so now we get to crunch and try to catch up with solutions.

Written by Susan Cartier Liebel

What Clients Want

Debra Bruce — Thu, 19 Apr 2012 11:30:27 +0000

In 2000 Mel Gibson starred in a movie called “What Women Want” in which a freak accident caused his character, Nick Marshall, to suddenly have the ability to hear women’s unspoken thoughts. He initially found it to be a very disconcerting experience, because (1) he discovered that he had some erroneous assumptions, and (2) women’s impressions of him were not very flattering. In fact, many of them thought he was a jerk. It turned out that what they said to him and what they actually thought did not exactly coincide.

Eventually, however, Nick realized that he could use his new abilities to do research that would allow him to understand women better. He began to modify his own assumptions, expectations, perceptions and behaviors, based on his research. His interactions became more effective and enjoyable. He became more successful in his career.

Our clients don’t always tell us what they are thinking, either. Do you ever wish you understood what your clients really want? Do you wonder what they think of you? Do you sometimes assume that, as the lawyer, you know what’s best for them? Clients may vary quite broadly in terms of their expectations, beliefs and desired outcomes, even for similar cases or transactions. So it is understandable that occasionally clients may seem inscrutable to us.

Questions to Ask Your Clients

If you want clients to be happy with your services, but unlike Nick Marshall, you can’t read their minds, try asking them what they want. You probably already have a few standard questions that help you to do your job. Here are a few that can help you to know more about what your clients think that job is.

What outcomes are you trying to achieve?
Which of those outcomes are “Must Haves” and which are “Nice to Haves”?
What are your biggest concerns?
How do you prefer that we communicate with you?
How often would you want to hear from us?
What questions or concerns do you have about how this process will work?
What are your assumptions about how we will work together?
Is there anything you want from me that we haven’t discussed?

What All Clients Want

Despite their many differences, there are a few things that almost all clients want, and here are some tips on how to give them what they want.

They want to be heard. Listen to them without interrupting. Be patient and let them tell you their story, even though you’ve dealt with situations like this a hundred times, and you know what is coming next. You may be anxious to impress them with your knowledge, but your efforts to do so may undermine your relationship with them. It’s ordinary and familiar to you, but it may be the most important event in their life. Feeling heard is so important that one client in Texas was disappointed when his attorney won the case on summary judgment. That stunning victory kept the client from getting to tell his side of the story.
They want to be understood. Paraphrase the salient points you hear, reflecting back to your client what you heard. Ask whether you have understood correctly. Then ask if there is more you should know. If you really want them to feel understood, include feelings you heard or observed. For example:
- “It sounds like you’re mad because he didn’t…”
- “I’m gathering that you’re worried that they might…”
- “The betrayal is painful to experience.”
- “You’re anticipating an exciting opportunity if you can make this deal.”
- “It must have been scary to go through that.”
They want a solution to their problem or help in achieving their goal. They may already have a strategy in mind for getting what they want. Sometimes their underlying goal is to regain their dignity or avoid losing face. Some clients will state their goal in terms of their strategy, instead of the actual outcome desired, making the questions described above even more important. Since they lack your experience and expertise, their strategy may be flawed, unethical or even illegal. If you understand the real outcomes they want and the reasons for them, you can craft better solutions. You can avoid alienating your client when you tell them you won’t be adopting their strategy.
They want to trust you. They need you and depend on you. If they seem wary or suspicious, that means there is more to learn about their fears or beliefs. By asking questions that ferret out their assumptions and expectations, you can make sure both of you are on the same page. That will help avoid some circumstances that might erode their trust in you. Communicate with them regularly about their matter, to bolster and maintain their trust.
They want to feel respected and appreciated. Everyone deserves respect as a human being, even those who lack social skills, commit crimes, or make dumb mistakes. If you and your staff treat them respectfully, in addition to being happier clients, they are more likely to behave respectfully toward you. Be sure that you and your staff demonstrate appreciation for their business in ways they can understand, through your communications, your actions, your punctuality, and the care that you give to their legal matters.

Remember that clients are the sin qua non of your law practice. It’s worth the investment of your time and effort to uncover what they want, and to adapt your own assumptions, expectations and behaviors accordingly. If any of you readers have additional tips on how to discern what clients want, or have made some surprising or amusing discoveries, I invite you to share them in the comments below.

Written by Debra Bruce

Should You Charge For An Initial Consult?

Susan Cartier Liebel — Mon, 16 Apr 2012 11:30:51 +0000

This is a very common question a new lawyer asks. The thought process goes something like this:

1. I want to get the (any) client in the door.

2. Everyone else gives a free initial consultation, I think?.

3. I'm too afraid to charge for a consultation because the potential client won't come in.

4. But my time is money.

5. So, how much should I charge?

6. No, I shouldn't charge for the consultation.

The dilemma is obvious. You want to get the potential client in the door but you also don't want to give your time away.

In my opinion, it all turns on where you are in the growth curve of your overall professional life and legal career. Notice, I said, "legal career" not growth curve of your solo practice.

These are my opinions based upon my experience and others but they present a smorgasbord of options from which you can choose. Or please debate or add to the list.

As a new solo your goal is to get as many potential clients in the door as possible so you can practice your client interviewing skills as well as actually having the opportunity to have clients hire you. Initially, you will not generally have many clients (unless you are a seasoned lawyer with hip-pocket business and are going solo). The real value and benefit in this approach when you first open your doors is not so much the exchange of dollars for time, but the opportunity to get clients into your office. Period.

You want as many chances as possible to practice these interviewing skills, polish your dialogue and get comfortable with discussing fees and collecting fees/retainers. You also want to develop your radar for the unwanted clients, those clients who will drain your time, resources and your very soul. You are also giving yourself an opportunity to canvas clients to find out how they heard about you, what they have heard about you and more importantly, are the clients who are coming to you the type of clients you want to service. This is the marketing aspect of the interviewing process which you need to perfect.

As a practicing solo developing your areas of concentration, depending upon the areas of law you are practicing, you may want to charge a consultation fee because;

1) as your knowledge grows, (or in your previous life you have twenty years of other professional experience) your 30 or 60 minutes with a client can be worth more than an inexperienced lawyer's three hours. You impart more experiential value.

2) Sometimes potential clients are consulting with you to eliminate you as the lawyer for the opposing party because your reputation precedes you. If you get eliminated without collecting money for your time it can be costly not to bill for the consultation. (For example, if you only represent men in the dissolution process, would you ever want to meet with a woman if they are just trying to conflict you out? Why take $250 and be bumped out of a $15,000 retainer?)

If you are now at a stage in your life where you are skilled in screening clients on the telephone and you have other options with your time, including billing out on another matter or a day at the beach with your child, you are at the stage where you can establish a real calculable 'value' for your time and should consider charging for that initial consultation.

If you are at this point, you should consider using a different marketing tool. Charge for your time with a catch. If you are hired, the fee collected for the consultation is used against the intial retainer or flat fee. Some will charge one hour at their normal hourly rate regardless of the actual length of the consultation so the client doesn't feel rushed. Others will charge hour for hour. Again, it is a personal choice. Potential clients now feel more invested in you with this leveraging tactic against the retainer.

Experienced solos with major reputations in their practice areas (except in contingency areas) generally will charge a fixed consultation fee for the consultation. The consultation fee is never leveraged against the retainer. These lawyers know the value of their knowledge and time and, most often, so does the client. These lawyers are not worried that another lawyer is doing free consultations.

Fees for initial consultations, in my opinion, turn on experience, marketing strategy, and the norm for the practice area. If you have a unique take on this common quandry, please share .

Written by Susan Cartier Liebel

Generating Business Through Legal Insurance Referral Programs

Douglas Greenberg — Tue, 10 Apr 2012 11:30:30 +0000

In my most recent posts, I have discussed a variety of attorney marketing methods. But given the uncertainties of marketing, one often wishes there was a better way. What if, instead of marketing, we could rely on a free service guaranteed to bring us clients? All you would need to do is sign up, sit back, and let the business roll in.

Sound too good to be true? It isn’t. It’s called legal insurance.

Legal insurance is a type of insurance that offers its members prepaid or discounted legal services. Companies and organizations purchase the insurance and then offer it to their workers as an employee benefit. When an employee needs an attorney, he or she searches the provider’s listings for a participating lawyer in the area. The employee calls the attorney like any other prospective client. And the relationship ensues normally.

Since the companies seek to offer a wide variety of legal services, all different types of lawyers may apply. So this may be of interest to you regardless of your practice area, whether it’s family law, bankruptcy, real estate, or otherwise. The catch with these plans is that the rates the attorney can charge are pre-set by the insurance company. Often, the pre-set rates are fairly low, and the cases are generally not very lucrative. In some cases, the insurer pays the member’s bill in full. In others, the bill is paid only in part. In still others, the insurer pays nothing at all but pre-negotiates a discounted rate with the attorney.Thus, you will need to inquire into a member’s coverage before taking their case. ( What strikes me about this is in many ways the model is very similar to a RocketLawyer – free signup by the lawyer for an opportunity to get legal business from people seeking legal services but at pre-determined below market rates guaranteed by the provider - just not a pre-defined audience like a union or corporations.)

For a budding solo, these legal insurance referrals offer another source of revenue, a reliable albeit moderate one. With legal insurance plans, at least the paying variety, there are few, if any, collection issues. The attorney submits a claim to the insurance company and the claim is processed as a routine insurance claim. Thus, the attorney is assured of receiving at least some remuneration. Such reliable cash flow can be very important to a fledgling practice by keeping the lights on as you build your book of business. Moreover, by doing good work for these initial clients, you can generate good word-of-mouth and online reviews–as I’ve discussed previously, these are key to building your client base.

Another nice thing about legal insurance companies is that they largely negate the need for expensive referral services. When I first began as a solo, I received numerous sales pitches from paid referral services. All required expensive up-front fees and though many promises were made, none offered any sort of guarantees. In short, I felt the incentives in these arrangements were slanted in favor of the provider. Once you pay the initial cost, what assurances do you have that there will be an adequate number of quality referrals? Indeed, after doing some research I found that these plans generally suffer from a low level of customer satisfaction.

If, keeping all of this in mind, you decide to stick your toe in the pool, there are a large number of legal insurance companies. In truth, I have yet to explore all of them. But, so far I have been most impressed with ARAG. ARAG is one of the larger legal insurance providers and their service is run quite professionally. ARAG’s fees are relatively clear cut. Its website is easy to use. And, if you have any problems, a courteous and helpful operator is only a phone call away.There are other plans as well, though I have less familiarity with them. I have tended to stay away from plans which offer no payment to their members. Not only do these plans strike me as stingy, I have generally gotten little if any business from them after signing up.

Signing up as a network attorney is surprisingly easy, and generally only involves the submission of minor paperwork such as an application and proof of malpractice insurance. Simply look on the provider’s website and click the links for joining as an attorney. There should also be a phone number for this specific department.

Although you may ultimately outgrow the comparatively low compensation associated with legal insurance plans, they are a valuable resource to consider as you’re starting out in solo practice. Until you have enough business to be picky and choosy, it’s hard to ignore a no-cost, guaranteed source of work that pays on time.

Have you worked with through legal insurance referrals? If so, what was your experience. Any recommendations?

Written by Douglas Greenberg

When Your Great Reputation As A Lawyer Just Isn’t Enough (Part 2)

Susan Cartier Liebel — Mon, 09 Apr 2012 11:30:38 +0000

Last week we talked about how one's 'great reputation' is only half the battle when getting clients. The other half is delivering on the promise of your great reputation. And this is the hardest half. So, let's continue the story.

After having such an unfulfilling relationship with the first builder, I sought out other builders. But there was also another reason I went with a new builder besides lack of communication and follow-through. After my builder worked with the insurance company to get to a proper and fair dollar amount to do repairs he then sent me his estimate to do the repairs. Let me rephrase that. He sent me his estimate to do one quarter of the repairs for the full value of the insurance check. That's right. He told me, and I quote, 'with the insurance's crappy labor rates and thin overhead margins we can't possibly do all that work.' Here he was telling me that based upon his company's business model, he couldn't do all the work required, but he could do some of the work and take all the monies to cover his bloated overhead. (I know, stop laughing. I'm not ignorant of the world of insurance. Just didn't expect him to be that much of a hog. But apparently he underestimated this particular client.)

The reality is, this is totally parallel to the traditional law firm model. This builder has a number of permanent builders on his staff, pays health care, provides 401ks, dressed in designer polo shirts, drives a huge new gas-guzzling truck and, he, the general contractor, (think the senior partner) doesn't do any work besides stopping in once in a while to check out the work in between courting new clients. He's the figurehead.

But let's talk about the new builder I've hired. First, while he was very cautious not to be rude, he was pretty appalled at the price tag presented by my former builder but said this builder bills himself as a premium builder and has a lot of layers of overhead he has to sustain. My new builder, on the other hand, shops the various components of the job to qualified and reputable independent contractors in their specialty – decking, siding, painting, foundation work. He then coordinates these independent contractors while getting his own hands dirty, too, doing his speciality. He doesn't mark up materials, nor does he mark up the independent crews' prices for the job. He simply takes a percentage for his work as GC. Therefore, ALL the required work will get done with the monies provided by the insurance company with a little left over to fix our lawn which will get destroyed once the heavy machinery moves in.

As you can tell, the quality of the work isn't compromised by having the work done this way. As a matter of fact, what shocked me was the new builder pointed out critical issues that were not addressed by my builder that simply had to be corrected. This was not part of the first builder's estimate. If it had been then his estimate would have gone over the amount of the insurance check and now I would have been taking money out of my own pocket to get one quarter of the work done! I also would have had an end product that was sub-par and potentially dangerous and a liability issue. Now his 'great reputation' totally was gone for me. Prior to this, being greedy, having a bad business model still left the quality of his work intact. Now this was destroyed. His business model had become 'profit before anything' and that's really tragic.

However, with my new builder, I, the client, only have to deal with the one person. He puts together a team to do the work as required and takes care of coordinating their efforts, paying them, and he has no overhead that he must pass along to me because each independent contractor is responsible for their own overhead.

Smart solos are starting to do this. They are creating networks or collaboratives which allow them to take on bigger jobs in direct competition with Big Law. Others have written on this subject before as the idea is not necessarily anything new and there are some networks and collaboratives emerging. But like the introduction of the automobile, which only became a true disruptor when it stopped being just a new toy for the rich and instead replaced the horse and buggy for the masses, this model has a ways to go before it becomes mainstream. However, you will probably see more and more legal collaboratives as time goes on because the economy is ripe for this type of disruption. The key is getting started now.

I wanted to present this analogy today, though, because sometimes it's hard to visualize how it can actually play out until you see it in play with something you might have more familiarity with such as home construction. More importantly, we already know clients don't want to pay for profit margins and one-note players like senior partners. They don't want to pay for the learning curve of associates. They don't want the open-ended billable hour. They want the best work at the best price* with good and easy communication and results. Have you started thinking about a model like this? I bet you already have a referral network in play and maybe haven't considered the possibilites. This is the basis for the model discussed above. Put your thinking cap on!

*best price doesn't mean lowest price. Remember, I was willing to pay a premium for great quality. I just wasn't willing to pay a premium price for dangerously sub-par work.

Written by Susan Cartier Liebel

ReZooming – The Tortoise and the Hare

Debra Vey Voda-Hamilton — Thu, 05 Apr 2012 11:30:19 +0000

You may be wondering why I picked this title for my March installment of "The Rezooming Attorney". It is an interesting choice. We attorneys are hares, wanting things done, impatient when things don't happen or they don't happen soon enough for us. That's where this rezooming article comes in.

When you decide to rezoom your legal career, you go into the process thinking it’s a no brainer. I loved what I did before; I will just go back to it. Or, I hated what I did before; I will change it and pursue my passion instead. It will happen overnight. Not so fast!

After reading the most recent post from my SPU colleague, Annie Tunheim, "A Solo (A) Broad", who relocated to Australia and is rezooming her career there, one sentence struck me as the most illustrative of our rezooming journey; she was taking her time.

“A slow solo practice can be seen as a negative, as there is no traditional law firm paycheck direct-deposited every two weeks. But a traditional law firm would not allow for making the kind of life choices like I’ve made, and I don’t begrudge the decision to walk away from the traditional law firm (and the accompanying lifestyle, or lack thereof) in the slightest. I’m grateful that at this point my practice has allowed for my workload to ebb and flow depending on the circumstances of my life. And now that life is stable here (and I’ve gotten the urge to lie on a beach out of my system), I am eager to spend more time working on growing my practice.” Annie Tunheim-A Solo (A) Broad-March 27th, 2012

Rezoomers sometimes think we need to do this re-entry thing quickly or we are a failure. Actually, it is quite the opposite. We come back into the practice realizing, by dint of our life experiences, that we need to find and focus on our passion. Don’t be a lazy focuser! Don’t play it safe and secure, practicing law in the legal world you knew. Focus on what part of the law is drawing you back and create a legal-life around that which is entertaining to you. If we do this, doors will open with opportunities and our future will unfold just the way we pictured it.

The trick is we have to picture it. This is where the tortoise comes in. We need to take time and focus. As Rezoomers, some of us have the luxury of picturing ourselves back in the law doing what it is we love because we have been there before. Some of us haven’t practiced law or hated what we did before and want to change it.

For me, I no longer wanted to litigate animal law conflicts. I wanted to create a venue where people in conflict over animals could go. In this venue they could have the difficult conversation, after the conflict arose and before litigation ensued and stop "suffering in silence". I dreamed of what it would be like but had no idea, in 2010, of the ‘how to’.

In January 2010, I attended the NYSBA Annual Meeting. I have spoken about the value of attending these kinds of meetings in the past. However, not as a venue for inspiration! This was the first Bar meeting of any kind I’d ever attended in my 27 years of being an attorney. At the Animal Law Committee meeting, the discussion centered around new laws they were championing, despite the courts reluctance to take their cases, and how they would continue to push the envelope and make these new laws despite the courts push back.

At the Dispute Resolution Committee meeting the next day they spoke about how the Courts appreciated their presence in the legal arena. Courts felt strongly that some cases were better handled though ADR first and litigation as a last resort.

My inner voice went off with rockets. Create the ADR piece for Animal Conflict Resolution. I spoke to Columbia University School of Law Honorary Chair, Vivian Berg about my idea. She thought it was brilliant. I left that day thinking this will be easy, who wouldn't want to have the ability to discuss their conflict over an animal rather then harbor bad feelings for a lifetime or head into a court system not predisposed to take on such issues.

Initially, my passion had me going for training in ADR – Mediation, Arbitration and Collaborative practice. Each field spoke to me in a unique way. I committed myself to Mediation and Collaborative Practice. I have conducted mediations and found comfort in a process that enables parties to drive their own solution.

What does this have to do with the Rabbit and the Hare?

It has taken two years to get here. Each opportunity that came along brought me one-step closer to where I am today. There are no short cuts to be taken or experiences to be missed, good and not so good. Each was a learning experience.

What has been my constant is the tortoise-like determination to get to the finish line and bring, to the public and legal community alike, the fully developed concept of applying Mediation and Collaborative Law to Animal Law Conflicts. It is what I am passionate about. It is what gets me out of bed everyday and has me write and speak in venues large and small.

As Annie Tunheim concluded on her journey:

“So, now I am beginning to set goals—not in monetary terms per se—but practice goals such as increasing my participation in forums that could lead to future clients, and hours a day working on current matters vs. client development, continuing education and business matters.” Annie Tunheim-A Solo (A) Broad-March 27th, 2012

Whether you are a rezooming attorney or starting out in this admirable profession, remember it is the fire in your belly that gets the job done. Ignore it to your peril; embrace it to your success. Susan would say she had a fire in her belly when she started Solo Practice University®. We all think it happened for Susan overnight, and yes it was a pretty quick success. The success probably matched the fire in Susan's belly. She knew she was meant to create something wonderful, which she may not have seen at all like SPU initially, but that evolved as she experienced the process. Yet here she is with a wonderful platform and service available to all of us in the solo practice community.

As you embark on this race remember the passion is the tortoise, the fleeting fame and fortune, the hare! It will come if you listen to your gut. It may not come as fast as you want or hope. If you stay the course, you will long pass the 'hare' of your rezooming self and revel in the tortoise bringing you to the place you were meant to be.

For me, the tortoise has put me in the right place at the right time to meet people who moved me one step closer to my passion. I listened to myself and attended events where powerful alliances were made. It has only been two years since my return to the practice of law, and I just co-sponsored my first CLE on “The Application of Mediation and Collaborative Practice to Animal Conflicts” at St John's Law School. The passion is fueling the process, and I wouldn’t have it any other way. Go out and find your passion, take your time as the tortoise does. You will never regret the outcome.

Written by Debra Vey Voda-Hamilton

Are You On Your Client’s Side?

Suzanne Meehle — Thu, 29 Mar 2012 11:30:19 +0000

In case you haven't noticed, I have beef with the whole billable hours thing. I have heard all the arguments in favor of billing by the hour, and I have heard all the arguments against it, and at the end of the day it comes down to this: whose side are we on anyway? Under the Rules of Professional Conduct, we are to zealously represent our clients' best interests at all times. How can racking up higher and higher fees, with no end in sight, be in the clients' best interests?

At Big Law, my value was calculated in six-minute increments. The more .1′s and .2′s I put on my time sheet, racking up higher bills for my clients, the more valuable I was to the firm. Well duh! You HAVE to be a profit center in order to be a valuable employee to any business, much less a law firm. And if the law firm's model is billing by the hour, you are only as valuable as the number of hours you bill. There was not much incentive to be efficient, to do excellent work or provide value for each second that you billed. At the end of the day, no matter how good a lawyer I was, if my production of billable hours was not so good, I was considered not as good a lawyer as a coworker who did sloppy work but racked up the billable hours. That's the game.

I began to resent my time sheet and what it represented. My clients were almost uniformly unhappy with their bills. Some accused the firm of gouging them. Others fired the firm and went elsewhere. Some stayed with us, but were very guarded about how we billed our time. I watched others go out of business as they struggled to keep up with the mounting legal costs.

That's how I learned that the billable hour was the enemy of the lawyer who truly has the client's – rather than her own – best interests at heart. It was not in my clients' best interests to agree on an hourly fee with no idea of how much time it would take to do the work.Hourly billing is, by its very nature, open-ended and skewed in favor of the lawyer. The client never knows exactly what the bill will be until he gets it at the end of the month. The lawyer has a strong incentive to bill more hours to the client, not to get the work done quickly.

All of which is why I ditched the billable hour when I went out on my own. Never mind the freedom from having to track every second of my day. The true beauty of my billing method is that it is always an arms' length negotiation. I tell the client what I am willing to do for what fee, and if the client disagrees with the fee they have a choice: go elsewhere or negotiate a lower fee for less service. This negotiation is up front, before services begin.

Once the client and I have reached an agreement, our interests are aligned. I collect from the client up front and put the money in my IOLTA trust account. It stays there until I have completed the work, at which point the fee is earned. So the client has some skin in the game because they have paid in advance. I am not paid anything until the work is complete, so I've got some skin in the game as well. It is in both the client's and my own best interests for me to do the work well and as quickly as possible. I find that this method works well for everything from forming a new corporation to drafting a will to litigation.

Yes, I said litigation. While I do not consider myself a litigator, I do sometimes go to court on behalf of my clients. When I do, I do not bill by the hour. Instead, I negotiate a fee for each phase of representation and we go from there.

When I was in a partnership (between Big Law and Solo), my partner was a litigator who insisted that flat fee representation would not work for litigation because, "You have no idea how much time it will take or how much work will be involved." I don't dispute that you do not know how much time will be involved with a litigation. I do dispute that you don't know how much work will be involved. I charge a fee to send a demand letter. Another to file a complaint and serve summonses. Another to file a motion. Another to appear in court or attend a deposition or mediation. I break it down sufficiently so that my client isn't blind-sided by my bill. They know in advance what the fees and costs will be to handle each phase of representation when we get there. And if something truly unexpected comes along, we will negotiate a fee for handling that as well.

The funny thing is, I'm not cheap. I probably charge something comparable to most of the Big Law firms for similar services. But that's not the point. The point is that my clients know what the fee will be up front, before the work gets started. My interests are aligned with my client's interests. And I am free to zealously represent them without my invoice getting in the way.

Have you given up the billable hour? Do you do unbundled representation? How have you handled litigation which lawyers say 'can't be unbundled'?

Written by Suzanne Meehle

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