Strategies for the
Successful Operation of a Solo Practice in an Urban Environment
(or, Now that I’ve
Finished Law School, How Do I Fly Solo?)
Barbara S. Lauffer
November 29, 2001
The future is not a result of choices
among alternative paths offered by the present, but a place that is
created: created first in the mind and
will, and next in the activity. The
future is not someplace you are going to but one you are creating. The paths to it are not found, but made.[1]
Try
to imagine a solo practice. Have you
conjured up an image of a cramped office in a small town, with the lawyer
wearing a Ben Matlock suit and accepting live chickens in exchange for legal
services? Or have you envisioned a
storefront office in an inner-city neighborhood with stacks of papers and books
scattered around the floor and a sign in the window announcing “SE HABLA
ESPAÑOL?”[2] Do you imagine yourself standing in line
waiting for food stamps? If you have
imagined either of these scenes, consign it to the dusty recesses of your
long-forgotten memory.
Now
imagine a thriving practice, in a well-appointed office with court buildings
and other law firms nearby. Imagine
being paid money, not chickens.
Although statistics report that solo practitioners earn, on average,
less (money) than lawyers in large firms,[3] a lawyer can run a successful solo practice
in a large or medium-sized city.
If you are creative and
independent, a solo practice may be the best way for you to practice law. [4]
“But,”
you ask, “how do I make the transition from law student to full-fledged lawyer,
running my own business? What type of
practice will I have? How will I
attract clients? How will I get enough money to start? Do I need a secretary?” The best way to answer these questions is to
tackle them one at a time.
But
before thinking about how to start your own practice, you must first conquer
your fear of failure/flying. This can
best be accomplished by having a clear plan.[5] In order to create a plan, however, you
must first answer all of the above questions.
In other words, creating a plan means thinking about -- imagining, if
you will -- how you want to practice law.
Planning
– From Law Student to Lawyer
Solo
practitioners are business managers and, as such, they are responsible for managing
finances, personnel, technology, and marketing strategies. If your practice is to continue, having a
clearly delineated business plan is probably the most important
strategic tool you can possess.[6] Planning begins with deciding what type
practice you want; will it be a general practice, will you specialize in a
particular area of law – criminal law, family law, estate planning – or will
you opt for a niche practice?[7]
If
you decide that your practice will focus on a particular niche, you will need to
research your potential market within a defined geographic area. Next, determine where your office will be
located within that area; then, determine whether you want your office to be
convenient for your clients needs (near public transportation, for instance) or
whether you want the office to be near a court building, for your ready
access. This decision depends on the
type of practice you choose to have.
For example, if you plan to practice criminal law, you will most
probably want your office to be in close proximity to the court house. Whereas, if most of your clients rely on
public transportation, having your office accessible to them would be high on
your priority list. These details
should be carefully thought out before you approach a potential financial
lender (whether it is a commercial lender or your Uncle Bill). In other words, you have to envision your
practice as a functioning entity before proceeding with your planning.
Finding
your niche
Your
research begins with touring the community you plan to serve – getting to know
the people by becoming active in the groups in which they are active. Volunteer at a nonprofit organization; go to
the court house and sit in on a trial; hang out at little-league games and
concerts-in-the-park.[8] Get a hot dog or hamburger at the corner
“greasy spoon.” If you are a member of
a religion, join and participate in the programs of a local church, mosque,
temple, or synagogue. When people know
you and associate you with your niche, then your principal business may come
from word-of-mouth, alone. In other
words, get a feel for the community.
Also, go to some of the lawyers in the area and let them know that you
are planning to open your practice in the community. Join and become active in the bar association. You will be marketing your practice with
every conversation you have — for good or ill.
Bryan
Schwartz, a Chicago lawyer, explains how serendipitous finding your niche may
be. While watching the HBO film, If
These Walls Could Talk, he became aware of many of the legal difficulties
that gays and lesbians encounter. After
doing a little research he discovered that there were very few gay and lesbian
law firms in the Chicago area. After
researching further, he decided to “pair his firm’s strengths (representing
mid-sized businesses) with the entrepreneurial gay and lesbian community and –
voilà – a new niche law practice was born.”[9]
Choosing
the business form
After
deciding on the type of practice, then determine which legal business
organization fits your needs. Will you
organize as a corporation, sole proprietorship or limited liability company
(LLC)? There are advantages and
disadvantages to each.
The
main advantage of organizing as a corporation is that you have limited personal
liability for the debts of the corporation.
The major disadvantage is that your profits will be taxed twice – when
declared by the corporation as earnings and when you receive a dividend or
salary from the corporation. Also, the
corporation requires considerable time to form because of its complexity.
The
sole proprietorship is the most obvious form to choose. Its major advantage is that it is simple to
form, requiring no formal organization.
Also, it has the greatest flexibility of all the possible organization
choices. Its disadvantage is that you
are personally liable for any liability incurred by the firm. This obstacle may be ameliorated, however,
by having ample insurance – general and malpractice.[10]
An
LLC is a hybrid form which offers limited liability and, at the same time,
operates under the same tax structure as the sole proprietorship. The member may opt to have the IRS treat the
company as a corporation, however, although that option would subject the owner
to the double taxation described above.
The downside is that the single-member LLC has
not been fully tested before the IRS and there is uncertainty as to how the IRS
will handle issues relating to single-member
LLCs.
The
business plan
A
business plan is an absolute necessity.
Without it, your practice is almost guaranteed to fail. The business plan includes:
·
A
description of the practice,
·
the
marketing plan,
·
the
financial management plan, and
·
the
case management plan.
In
order to convince a prospective financial lender that your business would be a
good risk you must present a well-thought-out plan to him. Also, it would be advantageous to have a
good credit rating, thus demonstrating your excellent management capability. (You were able to live within your
excruciatingly inadequate law school budget.)
Assuming your credit rating is good, there are several options: You may borrow the money from a bank, your
family and friends or private investors.
Financing
– Where will I get the money?
Unless
you (or your spouse) are independently wealthy, your main worry is about how
you are going to finance your practice.
Law school taught you how to “think like a lawyer,” but, unless you went
to one of the few law schools having programs devoted to helping graduates
start their own practices,[11]
law school did not teach you to think like an entrepreneur.
In
order to get a loan, first determine how much money you think you will need to
set up your office, run your practice, and support yourself and your family for
at least a year. Some veteran solo
practitioners recommend having enough cash to last two to three years because
it takes at least two years for a start-up firm to “turn the corner.”[12] (Turning the corner is the point at which
you are earning enough money to cover your business, personal and income tax
expenses.)
In
determining your financial need for a year compute your average personal
expenses for the past five years, making allowances where necessary to account
for unusual expenditures (purchasing a car, for example). Add to that amount the projected expenses
for your law practice. Your business
expenses can be further divided into the start-up costs and operating
costs. Start-up costs include office
furniture, computer, software, fax machine, telephone equipment, office supplies,
office rental deposit, and insurance.
Operating expenses include office lease, telephone and fax service,
interest expense, insurance, law library (a considerable expense), marketing
expense, parking, transportation expense, etc.
Then, add your projected income taxes.
This list is by no means exhaustive.
It only serves as a guide to give you an idea of the kind of
costs included in each category. (The items included in these categories are
dependent upon numerous factors which you will, hopefully, be better able to
determine after reading this article.)
After you have calculated your projected financial
needs, you can pursue financing. First,
determine the amount you can contribute.
If you have purchased a top-of-the-line computer, printer and fax
machine while you were in law school, you may be able to invest these items in
your law business. If you are married,
maybe your spouse is willing to invest in your practice. Do you have savings, stocks or bonds that
you are willing to liquidate? Try to
gather and contribute as much equity as you can. Your startup costs minus the equity equals the amount you must
borrow. If you estimate that you need
about $25,000[13] to start
and you can invest $5,000 worth of computer equipment or money, then you only
need to borrow $20,000.
Banks
consider the amount of owner’s equity in relation to the amount of the loan –
the debt-to-equity ratio -- when determining whether your business is a good
risk.[14] A debt-to-equity ratio of 2 to 1 is
considered healthy. That is, if you
need to borrow $50,000, you should have $25,000 in equity. But that rule depends on the type of
business. If the business is a
service-oriented business, a law practice for example, then the debt-to-equity
ratio can be higher. The national
average debt-to-equity ratio for law firms is about 4 to 1.[15] However, new businesses typically have
higher debt-to-equity ratios than older established businesses.[16] And since 4 to 1 is the national average for
law firms, this ratio is lower than for a new start-up law firm. All of this is good news because this means
that you can probably get your $20,000 loan from a bank if you have at least
$5,000 in equity to invest in your practice.
(Providing, of course, that you have an excellent credit rating.) Which means that obtaining a loan of $20,000
with an initial investment of $5,000 gives a debt-to-equity ratio of 4 to 1 –
the national average for law firms.
An
Experiment in Obtaining Venture Capital
The
BusinessFinance.com[17] website is a rich resource to use when planning to finance your practice. There you will find over 78,000 business
loan and venture capital sources, step-by-step manuals on presenting a funding
request and obtaining venture capital and a step-by-step means to search for
funding sources specifically tailored to your needs. I used the search method to find potential lending sources for a
model start-up solo law firm.
On
the home page:
·
I
selected and clicked on the “Government SBA Lenders”[18]
category.
·
I
clicked on “Step 1” to find matched government business loan providers.
·
I
proceeded through “Step 4,” using the following information:
o
Loan
amount ........................ $ 25,000
o
Equity
..................................
5,000
o
Home-based
office
o
“A”
credit rating
o
Sole
Proprietorship
o
Summary
information: Plan a start-up sole proprietorship law firm. Money used for furniture, office equipment,
office supplies, malpractice insurance, and miscellaneous items. Plan to start a general practice.
·
Outcome:
I obtained 16 matching potential funding sources!! AND my debt-to-equity ratio was 5 to 1!
Sixteen
potential sources is an excellent result.
You should probably try it yourself.
Setting
Up – What do I do for an office?
Now
that you have an idea about your likelihood of getting start-up money, you have
to consider the setting for your practice.
Will you operate from your home or have an office away from home? If you decide on the latter, will you opt to
share space with other lawyers or choose to set up your own office?[19]
Working
from home
If
you have a modest amount of start-up money, a home office may seem like the
obvious choice. But unless you have
other reasons to have your office at home, such as wanting to be home with your
small children, there are other options which may be just as inexpensive with
far more advantages. In addition,
working out of your home may negatively effect how your clients perceive your
professional abilities[20]
and your clients will know where you live.
Erica
Pascal, a lawyer and mom who practices from her home shares this scenario:
·
“It
is 10:30 Saturday morning. You are
deeply involved in cleaning your refrigerator and dressed for the
occasion. A new client (whom you’ve
only talked with on the phone) decides to “drop by with that real estate
contract” for your review.
·
Your
three-year-old reaches the front door before you do. He screams, “mommy, I don’t know this man” and slams the door in
your client’s face.
·
A
client calls on your home phone with a question, because ‘I know you work at
home so you have my file handy.’ It is
(a) 7:30 A.M., (b) 9:00 P.M., (c) 3:00 Sunday afternoon.”[21]
Do
you really want that?
Home
offices and the IRS
Should
you decide to work at home and you intend to deduct the start-up and operating
expenses from your income, the office should be physically separate from your
living space, preferably with its own entrance. Chapter 26 of the U.S. Code, the Internal Revenue Code, § 162(a),
provides that “[t]here shall be allowed as a deduction all the ordinary and
necessary expenses paid or incurred during the taxable year in carrying on any
trade or business.”[22]
If
you use your home office occasionally, then Internal Revenue Code §
280A(c)(1)(A) [23] allows a
home office deduction for expenses allocable to the portion of the home used on
a regular basis as “the principal place of business for any trade or business
of the taxpayer.”[24] However, for tax purposes, “the relative
importance of business activities engaged in at the home office may be
substantially outweighed by business activities engaged in at another
location.”[25]
Renting
office space from an established firm
A
relatively inexpensive option may be to rent space in a larger firm. Sometimes large firms with excess leased
space rent out unoccupied offices, with or without secretarial and other
support, and with or without furniture.
The
executive suite
Leasing
space in an executive suite is a particularly flexible option. Executive suites offer a variety of
arrangements – from a fully-furnished office with access to conference rooms,
secretarial, typing, and mail services to part-time rental of office space or
conference rooms.[26] This flexibility, including the ability to
make short-term rental agreements, may be a perfect arrangement for a solo
lawyer entering practice.[27] For example, if you have a home office and
lease a conference room on those occasions when you have to meet a client you
may be able to eliminate a major disadvantage of the home office – projecting
an unprofessional image.
You
have to shop around, however, in order to find the right décor, quality office
assistants, security, and ability to maintain confidentiality.[28]
The
Law Suite
A
law suite is an executive suite for lawyers only. Again, it has the advantages of reduced expenses, professional
mailing address, and flexibility. In
addition, it provides relief from the administrative problems of maintaining a
library. It also provides access to
other lawyers for their help with individual cases and the possibility of
overflow work. Some disadvantages are
the inconsistency of practice mix and receptionist indifference.[29]
Getting
your own office
Getting
your own office requires more work and probably more money. But, you will have more control in
structuring the ambiance and selecting
the personnel.
Marketing -- How do I get clients?
Marketing
is another essential strategic tool.
While making your “walk-about” in the neighborhood you have selected to
serve, you have become sensitive to the needs of the community. You also know the niche you plan to
fill. Now, you must communicate your
concepts to the public. How is your
practice distinct from all the others?
What are the particular values and abilities you are bringing to the
practice of law? Your marketing plan
should include a mission statement in which you present the nature and purpose
of your practice, the services you intend to provide and your vision for the
future; advertising in the yellow pages of your market area; and the
word-of-mouth advertising you have developed through relatives, friends and
acquaintances acquired through your networking efforts. Since your practice will be new, you should
include your mission and vision statements on your Web site and pared down
versions in the yellow pages advertisement.
Including mission and vision statements in your presentations to the
public will reveal your interest in serving the public and may help to attract
clients who are disenchanted with lawyers and the legal system.
The
trend toward pro se litigation and the rise of Web-based and print self-help law
indicate that there is an increasing number of people who are availing
themselves of the legal process, without lawyers – some due to disenchantment,
some due to lack of funds, and some due to an independent spirit. Although representing oneself in court is an
American tradition, the increase in such representation is troubling to both
judges and lawyers. Judges are
concerned because pro se litigants, unfamiliar with court procedure, slow down
the judicial process. Lawyers are concerned
because of economic reasons and a fear that these litigants are not receiving
protection of their rights. Both courts
and judges are searching for ways to remedy these problems.[30]
The
rise of pro se and self-help representation need not be a problem for you,
however. You may be able to tap this
potential market by attracting those who can afford lawyers but who fail to
seek legal help. A way to begin is to
write and post mission and vision statements.
Other ways to attract the disenchanted will be discussed later under the
topic “Serving Clients....”
There
are limitations on the ways in which lawyers may advertise and solicit clients,
however:
Advertising
in general
Advertising
is permitted in general with certain restrictions. Model Rule 7.1 of the Model Rules of Professional Responsibility
prohibits a lawyer from making “false or misleading communication about the
lawyer or the lawyer’s services. A
communication is false or misleading if it:
(a) contains a material misrepresentation of fact or
law, or omits a fact necessary to make the statement ... not materially
misleading;
(b) is likely to create an unjustified expectation
about results the lawyer can achieve...; or
(c) compares the lawyer’s services with other lawyer’s services, unless the
comparison can be factually substantiated.”[31]
Solicitation
The
general rule is that solicitation is not permitted. Solicitation is defined in Rule 7.3 of the Model Rules of Professional
Conduct as in-person or live telephone contact with a prospective client. There are two exceptions in which
solicitation is permitted: where the lawyer has a family relationship or a
prior professional relationship with the person solicited.[32] In Ohralik
v. Ohio State Bar Association, the Supreme Court made a distinction between a face-to-face solicitation and
solicitation through the media because, reasoned the Court, there is the
“potential for overreaching ... inherent in a lawyer's in-person solicitation
of professional employment.”[33] The Court’s concern was that a lawyer who
solicits a client in person may exert undue pressure on the potential
client. This is due to the lawyer’s
superior position over the solicited individual, especially if the individual
is in a vulnerable, emotional position (a divorcing spouse, for instance). Therefore, although you may solicit clients
through the media, you may not tell someone to hire you as his lawyer. You may say that you are a lawyer; and you
may say that your practice area is family law.
But you cannot offer your services to a stranger who is contemplating
divorce.
Serving
Clients -- How do I keep clients?
After
you find your niche and your reputation -- for being trustworthy, reliable and
concerned for your clients’ interests --
increases, your planned marketing needs may decrease because then you
will have acquired the best marketing you can have -- word-of-mouth
advertising. [34] When clients are satisfied, they tell others;
and those others tell still others.
The
client-centered practice
According
to the Bureau of Labor Statistics, there will be roughly 800,000 lawyers
competing to acquire and keep clients by 2008.[35] It will be a clients’ market. Even now, clients are demanding that lawyers
be more sensitive to their needs: They
want their attorneys to return their phone calls; they want to be listened to;
they want their documents to be finished when the lawyer says they will be
finished. Therefore, in order to keep
clients from leaving the firm, lawyers must be more responsive to clients’ demands. Forrest Mosten, one of the original partners
of Jacoby & Meyers, the self-proclaimed “peoples’ law firm,”[36]
thinks that “[w]e do not have too many lawyers. We just need a way to link lawyers who want business with the
consuming public who have unmet needs.
This is a marketing dream!”[37]
Because
there is growing skepticism regarding lawyers, it behooves you focus on and
build your practice around your clients’ concerns. The term “client-centered” was first coined by psychotherapist
Carl Rogers who, in the 1940s,
developed a non-directive approach to psychotherapy.[38] That is, the “client” (no longer referred to
as “patient”) directed the course of his/her therapy. This was a revolutionary approach to therapeutic technique which
had previously been dominated by therapies -- psychoanalytic and behaviorist --
in which the therapist is the boss.
Rogers’ approach is based on the
belief that clients can be trusted to make their own decisions and do not need
to be directed, motivated, rewarded or controlled by a therapist who is in a
superior position.[39] The client-centered practice is the
application of the client-centered concept to the attorney-client
relationship. In the traditional
attorney-client relationship, the lawyer is boss.
In
order to make your practice client-centered you must establish your practice
and set up your office with that intention in mind. The layout of the office, the type of furniture and decoration,
the hiring of staff, all have to reflect the client-centered approach. You have to be genuinely concerned about the
affairs of your clients. This means
that after drawing up the will, your relationship with your client is not
over. You have to build a relationship
with your clients. Send greeting
cards. Send out news bulletins when a
law changes that may have an effect on your clients. Visit and inquire about family members even when there is no
pressing business. Clients with whom
you have a relationship are more likely to remain with your firm and they are
also more likely to tell potential clients about your services. Unhappy clients leave; and when they leave
they also tell others about their bad experiences. As a consequence, not only do you lose the unhappy client, you
also lose the potential clients he or she would have brought to the firm.
A
client-centered approach is highly desirable when the client is from a racial
or ethnic group different from that of the lawyer. Interracial communication may be especially fraught with the
potential for misunderstanding. The
lawyer, after all, is a counselor in addition to being an advocate; and
client-centered legal practice may not be so distant from client-centered
therapy. In addition, the ABA Model
Rules encourage lawyers to consider moral, economic, social and political
factors when serving a client’s interests.[40]
Unbundling
legal services
Unlike the traditional law practice, where the
lawyer is boss, the concept of “unbundled” legal services is a client-centered
approach to the del
ivery of services.
In Unbundling Legal Services: A Guide to Delivering Legal Services a la
Carte, Forrest S. Mosten,[41] the originator of the concept, defines
unbundling as follows: “The client is
in charge of selecting one or several discrete lawyering tasks contained within
the full-service package.”[42] The full-service package, according to
Mosten, includes advising the client, legal research, gathering of facts,
discovery, negotiation, drafting of documents, and court representation. Although traditional legal service purports
to offer the full-service package, it offers, instead, an amended-service
package since few clients can afford perfect representation.[43] The unbundled client specifically contracts
for the extent and depth of services provided by the lawyer and decision-making
power between lawyer and client remains in the hands of the client.[44] Ideally, the client should also be
computer-literate and capable of doing his own research. This leaves the lawyer free to use her time
to accomplish tasks only she can perform.
Mosten describes the typical unbundling client as
having the need and desire to control his own life.[45] He need not be a college graduate or even a
high school graduate. There are
numerous prisoners, for instance, without a formal education who are conducting
sophisticated legal research from within prison walls.[46]
Now that you have a picture of the typical
unbundling client, what, then, is the unbundling lawyer like? Mosten recommends giving yourself an
unbundling mindset quiz to determine whether unbundling is right for you:
Table 1[47]
|
UNBUNDLING MINDSET QUIZ |
Check |
|
|
·
I want to spend more time in direct contact with clients and less
time interacting with lawyers on the opposing side or the court system. |
___ |
|
|
·
I am able to give up control of doing the legal work myself and am
comfortable in helping clients who do most of the work on their own. |
___ |
|
|
·
I am flexible with changing roles with clients and even adapting to
new roles requested by the client (when not in conflict with my own
professional or personal ethical boundaries). |
___ |
|
|
·
I am willing to accept payment for current work only and begin an
engagement without an advance retainer or deposit.[48] |
___ |
|
|
·
I like helping people make better decisions. |
___ |
|
|
·
I like having people get help they can less “unafford.” |
___ |
|
|
·
I am able to handle watching clients take my sound advice and make
poor or self-destructive decisions – and still be willing to help them pick
up the pieces and try to make lemonade out of lemons. |
___ |
|
|
·
I like to teach clients skills and concepts that will make their case
go better – and maybe even improve their lives. |
___ |
|
|
·
I like to prevent problems from ever ripening into conflict. |
___ |
|
|
·
I like to reduce my billing load and work on more of a cash-and carry
basis. |
___ |
|
|
·
I like to have more control over my life by not being subject to
canceling vacations or working nights and weekends. |
___ |
|
|
·
I am willing to try new approaches that are different from the way I
currently practice or even different from the way I was trained.[49] |
___ |
|
|
·
I like working with people who like to shop for bargains. |
___ |
|
|
·
I am willing to work with people who may have a high mistrust or
disregard for lawyers. |
___ |
|
|
·
I am willing to work with people who have mucked up their legal
rights and/or case strategy when the best that can happen is cutting a loss
rather than attempting to gain a win. |
___ |
|
|
·
I want to provide clients with the space in my office so they can do
their own background reading, watch helpful videos, do their own legal
research, prepare their own work, or just relax and calm down.[50] |
___ |
|
|
·
I want to help people maximize their lives and reduce their legal
risks in areas far removed from the presenting problem that brought them into
the office. |
___ |
|
|
·
I want to meet and learn from other innovative and caring lawyers who
share my goals and professional commitments.[51] |
___ |
|
This
quiz is not meant to determine whether you would be successful in an unbundled
practice, but mainly as a means to introduce a frame of reference for the
unbundled approach.
The
unbundled practice starts with the design of the waiting room. When your client approaches, she is
immediately aware that she is a welcome
guest in your office: There is a sign at the entrance encouraging her to read
the brochures; the staff is attentive and helpful; the chairs are comfortable; and
there is a client library with computer/internet access in which she may browse
at her leisure (and it’s FREE!). There
is also a video player and monitor with tapes explaining various practice areas
and your approach to serving the potential client’s legal needs.
Your
office has a flipchart and overhead projector in two corners with a round table
and several adjustable chairs on one side.
Your desk is positioned in such a way that the light from the window
does not shine in her eyes. She is
impressed! There is even a shelf with
pretzels, candy and other goodies. Even
though she had to wait to see you she is not irritated. She had been so engrossed in reading the
learning materials in the waiting room and library that she was almost
disappointed when you came into the waiting room and asked her to come into
your office.
This
is your client’s initial conference.
When she phoned you about her divorce you sent her your brochure packet[52]
in which she has been made aware that you stress education about the family law
system and procedures. Your brochure
also has informed her that you offer discrete divorce services -- referring to
the client’s ability to obtain
assistance for separate and distinct tasks. She also knows that, whether it is filing a petition for
dissolution and obtaining a default judgment, understanding and participating
in a child custody evaluation, planning a discovery strategy, or enforcing a
judgment, the client is in charge of the extent of services rendered.[53] During your phone conversation, you had also
recommended that she visit your website while waiting for her packet to arrive
in the mail. So, although unbundling is
new to her, she has received a considerable amount of information about your
services and process so that she is not totally in the dark.
But
to make sure that she has a firm grasp of unbundling you ask a few questions to
make sure that she understands that it is she who chooses the functions the
lawyer will perform in the unbundled practice.
Sometimes the lead is shared with the client and at other times, the
client may wish the lawyer to take the lead and act as coach.[54]
Mosten:
“A legal coach can give perspective and guidance to self-representing litigants
who are otherwise on their own. Some
examples of this role ... include the following:
§
Evaluating
legal rights so the client can gain the coach’s prediction of how a judge might
rule on a particular issue.
§
Using
public information to offer a clear sense of reality. With published reports of jury verdicts and settlements, civil
litigation coaches can provide clients with a range of realistic outcomes to
help decision making. With availability
of computerized child support and spousal support guidelines, the coach can run
a number of scenarios so that the client can gain an understanding of the range
of possibilities.
§
Since
lawyers have access to experts (accountants, appraisers), a legal coach can
quickly call an expert to gain reality or make a referral for the client to
gain this data input from a reputable and cost-conscious expert.
§
The
coach can give procedural guidance regarding how long it will take to get a
hearing, the inside dope on the assigned judge, and information about deadlines
and other court requirements”[55]
The
client-centered, unbundled approach to a niche practice has been given
preference because it is flexible and flexibility is an important asset when
starting a solo practice with no experience.
Managing
-- How do I fly this thing?
Furniture
You
may rent or purchase furniture. If you
decide to purchase, used furniture is an option if you need to cut costs. But since your furniture reflects the type
of client you want to attract, care should be taken when making your selection. If you decide to locate in an executive
suite or rent space in another firm’s office, you may not have to purchase
furniture initially because many of these spaces are already furnished.
How
lavish should my furnishings be, you ask?
The short answer: as lavish as you can afford. Lavish does not mean ostentatious, however. Furniture should be tasteful and fit the
office space. That is, the furniture
should not be so large as to make a small office seem cramped. Don’t forget to sit in the chairs intended
for clients to make sure they are comfortable and sturdy. Jay Foonberg, in How to Start and Build a
Law Practice recommends that you include several straight-back chairs
because clients who are old or who have injured bodies have difficulty getting
out of soft chairs.[56]
Filing
system
No
matter what filing system you use, you should consider whether the building in
which records are stored has earthquake and fire protection. It would be wise to invest in smoke
detectors and highly rated file storage cabinets. You should also have a fireproof safe for storing clients wills
and other important papers.
Also,
get insurance coverage for office contents with extra coverage for records
reconstruction. Other safety tips
include: storing an updated client list, copies of tax returns, depreciation
schedules for capitalized assets, and accounting records at an off-site
location.[57]
Technology
Attempting
to enter solo practice without having a computerized time, billing and
accounting system – a system that is fully compatible with your case management
package – would be suicidal for your practice.
The specific product you select is an individual choice.[58] But, even if you have accounting software,
you should, nevertheless, acquire a working knowledge of the principles of
accounting. Accounting is known as the
“language of business.” You should be
able to read and understand a balance sheet, income statement, and cash flow
statement. Otherwise, you would be at a
severe handicap in running a business in addition to being poorly-prepared when
handling your clients affairs.
Model
Business Plan
Now
that you have considered the type of practice you plan to have, how you will
set up your office, your marketing strategy, your approach to serving clients
and management considerations, you can draw up your business plan.
Following
is a model plan for a solo startup firm:
·
Description
of the firm
o Your practice is a sole
proprietorship.
§
All
profits and losses are reported directly to your income tax return.
§
You
have unlimited liability; both the assets of the firm and your personal assets
are subject to the claims of creditors.
§
There
are no formal requirements to start the firm.
If you are starting your practice in California, however, and the firm
has a name other than yours,[59]
you are required to file a fictitious business name, or DBA,[60]
statement with the county clerk and publish notice.[61]
o It is a start-up venture.
o You are offering
client-centered legal services.
o Describe the community in
which you are located.
·
Your
marketing plan
o Your clients are the large
segment of the community who are presently not using legal services or who now
choose to use self-help methods or non-legal help.
o You plan to keep your
clients and expand by delivering competent, client-oriented legal services.
o Your fees will be based on
an unbundled approach. That is, the
client will choose the legal services s/he feels s/he needs.
o Marketing will be by
word-of-mouth, web page, yellow pages, and community-generated methods.
·
Your
financial management plan
o Start-up costs estimated at
$25,000.
o Your contribution will be
$5,000.
o Accounting will be
double-entry based on the cash method initially. Accounting, time, and billing will be fully automated.
·
Your
case management plan
o The management will be based
on a client-centered, unbundled approach.
o The start-up staff will
consist of a secretary and one paralegal, both of whom will be amenable to the
client-centered approach.[62]
Take
your plan to the prospective lenders you collected from BusinessFinance.com, get your loan
and set up your practice.
Now that everything is working right, what do I do
now? Fly!
Rather
than bore you with interminable, how-to details (encountered in researching the
topic), the “reader-centered” approach has been chosen to present the ideas
resulting from that research. These
ideas are just that, ideas. Laying out
numerous commandments about what to do is hopeless; you have to have the
confidence to put the ideas into practice.
You must first envision the practice you want; then develop a strategy
to implement your vision. Stay
flexible, above all.
Basically,
this was intended only to help you get over your fear of flying. Is there a tailwind or a headwind? Is the global positioning system (GPS)[63]
functioning correctly? Here’s hoping
that this vision will help you to become a successful lawyer, charting your own
course into the future.