Archive for June, 2009

Firm Financial’s: May 2009

Posted by Peter on June 30, 2009
finance / 2 Comments

2009 – FINANCIALS

May

YTD

Gross Income

4,976.67

30,419.56

Monthly Business Expenses

Office Supplies

73.74

Train ticket(s)

32.3

Malpractice Insurance

83.7

Credit Card processing fees

27.75

Web host

9.95

Mail/postage

25.19

Cell phone

170.55

eFax service

19.95

eVoice service

29.95

Cash/lunches/gas

281.41

Computer/software upgrades

0

Service organization dues

0

Northwest suburban bar assn. dues

0

Client Reimbursement

0

Bookkeeper

50

Networking/Leads Group – fee

360

Office Space

189

Business Expense Total:

1353.49

5,723.08

2009 Net Income:

3,623.18

24,696.48

Peter’s Commentary: A solid month but still short of my monthly gross income goals. Began attending a weekly leads/networking group that included some upfront costs that I hope will payoff in the future. $189 was high for office space expenses but what that really means is we had several new client meetings which should mean higher future income.

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The Interview: Russell Knight, Spanish-Speaking Attorney and Newbie Solo in Chicago

Posted by Peter on June 24, 2009
entrepreneurship / No Comments

Editor’s Note: I meet so many great and interesting attorneys through SIC that after only 4 years I thought it might be useful to hear from some other voices in this space.  I mean there are so many things that I don’t even know that I don’t know…perhaps others know. Plus, I’m a big junkie of good conversation and interviewing so it’s fun for me too.  Russell graduated from the University of Illinois law school, was licensed to practice in November 2006, and started his solo practice earlier this year. Interestingly, he’s also fluent in Spanish which we discuss a bit below, with both English and Spanish Websites.

SIC:  Why’d you start your law practice?
RK:  I started my law practice because I saw that my boss (another solo) was making more
money than I was.

SIC:  Describe the timing of your launch in terms of point-in-career, experience, life factors, and
finances.

RK:  I'm 31 and my wife works and we have no kids yet. I realized that I go solo now while I
have my wife's income and no child related expenses or I never would. My wife takes care of my
day to day expenses. I saved a significant but not massive nest egg to get started. I'm 2 months in
and I still havn't exhausted it.

SIC:  What are your primary practice areas and how did you select them?

RK:  My primary areas are criminal law, family law and bankruptcy. I practice in these areas
because that is what my experience from my prior job was in.

SIC:  How do you office?

RK:  I rent from an older more experience attorney. I can't recommend this enough. My landlord
is an incredible resource who has offered me very affordable rent, great advice, and even a few
referrals.

SIC:  How have you tried to attract clients? What works/doesn’t work for you?

RK:  I personally studied how to appear in Internet searches and put a lot of time into it. It's
complicated and everyone is trying to sell you "the secret to high Google rankings" but you never
really know what you're going to get. I now get a lot of clients off the Internet. I also network like
crazy. I let people know I speak Spanish and have reasonable rates. The only thing I've done that
laid a complete egg was sending out letters to people I didn't know if I didn't follow up. If I
followed up, the letters would pay off sometimes.
 
SIC:  How did set your fees
RK:  I set my fees based on what my old boss used to charge.  My clients are mostly working
class and can't afford big retainers and the possibility of endless bills so I use a flat fee system.

SIC:  What are the best and worst decisions you’ve made in running your solo practice?

RK:  My best decision about starting a solo practice was planning early. I was thinking about this
for over two years. I wrote down every idea and reviewed them constantly.  My opening went off
without a hitch and I immediately started getting paying clients.  My worst decision was billing
too low for my first half a dozen clients or so.

SIC:  I know you’re fluent in Spanish, how have you targeted that niche population?

RK:  I have a Spanish website.  I write letters and personally visit social agencies that deal with
Chicago's Spanish speaking population. I network with every spanish speaking lawyer I meet.  
Soon, I will be hosting legal seminars in a spanish speaking church.  Same as what anyone does, I
guess.  Only in Spanish.

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Sweet, Someone Who Can Clearly Describe the Problem with Under-Billing

Posted by Peter on June 24, 2009
billing / 2 Comments

I’ve posted before on the problem of under-billing here and here and for different reasons including several seminars I’ve been involved in of late have been thinking a lot about the problem of under-billing and what a practice killer it can be. I think a decent analogy would be the issue of pricing a house to sell. So my wife and I have a semi-regular ritual of watching TLC’s Property Ladder on Saturday mornings. It’s a program about renovating homes and then flipping them for a profit. And after watching many episodes one realizes the importance of pricing the home for sale after all the renovation is complete. Frequently the first-time flippers will make all sorts of mistakes and go over-budget and miss their timelines, ect., BUT, regardless of how well the flippers did on everything up until the open house (good or bad) if the home is priced improperly the flipper will often be in big trouble and not sell the house.

It’s similar to pricing your legal services. You can do everything else right such as actual lawyering, business management, even marketing and yet really not retain clients and build the kind of business you want if the price ISN’T right.

Trey Ryder’s weekly e-mail marketing newsletter did a great job of explaining this under-billing/under-charging problem (as an aside, the e-mail newsletter is a free sign-up and often quite informative).

Here’s a blurb that underscores the big problem…

ADVICE:  I encourage my clients to charge on the high end.  It’s much better to be the most expensive lawyer in town and have people appreciate your knowledge and experience — than to be the cheapest lawyer in town and have prospects question your skill.

Certainly, not every person in your city can afford you.  But you don’t want everyone as a client.  If only 30% of the population can afford you, then ask yourself if you can earn a good living from that 30%.

Not long ago I received a call from a tax and estate planning lawyer who was seeking high-income clients.  He wanted as clients only people who had incomes in the top 5% of the local population.  But he wasn’t sure enough of those people existed for him to launch a marketing effort.  His market area has a population of 2,000,000.  5% of that number is 100,000. I explained that if he got only 1% of the top 5% as clients, he would still have 1,000 new clients.

And while 1,000 new clients seems overwhelming, it points out that the number of prospective clients in almost any target audience is greater than most lawyers care to handle.

No matter how narrow the audience you’re trying to reach, you can probably find hundreds of prospects in that target audience.  The key is having a competent marketing program that can effectively identify, reach and harvest those prospects so they become your clients.

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Self-Marketing and GREAT Lawyers

Posted by Peter on June 24, 2009
marketing / No Comments

I’ve had these couple articles in my “to read” pile for a while and both are quite worthwhile…Self-Marketing is key to being a Top Lawyer & What Makes a Lawyer Great?  And look at that one answers the other…well, sort of.

On Self-Marketing…

Everyone has a personal brand even though most don’t seem to know it. Your personal brand is how decision-makers view you. It is the total sum and breadth of your work history, reputation, involvement, initiative and personal values. Brand you is riding on whether people think you are competent, committed, available and willing to offer counsel. Sometimes for free. And often after hours.

Surely something that has hit me over the head over the last 4 years. Question, rank the importance of the following items in building a law practice:  marketing, business management, and substantive legal skill? Sadly when I started my solo practice I would have ranked the items:  1. substantive legal skill; 2. marketing; 3. business management…today, 1. marketing; 2. business management; 3. substantive legal skill.

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Lawyers and Non-Parties who don’t file Appearances

Posted by Peter on June 23, 2009
litigation / 2 Comments

The definition of an “Appearance” for court purposes – a piece of paper that gets filed that says I lawyer am representing a client as sayeth on the Appearance I’ve filed.  And you’re supposed to file this BEFORE you appear in court to represent a client, with a rare exception or two.  But I always see this abused in two ways and way too often judges let it slide.

First, like I witnessed today, a lawyer shows up a couple hours after the case had been resolved, had not brought any kind of motion (just asks the clerk to have the case re-called), had NOT filed his Appearance and then steps up as if he’s the attorney of record.  If I’m a judge I simply do not let that person address the court until I see a filed Appearance. It’s rife with potential trouble notably in terms of inadvertantly subjecting a person to a court’s jurisdiction where it may not otherwise lay.  And as a laywer it’s just tacky…take 5 minutes, prepare an appearance, drop it in the no fee box, then, go to court.

Second, it perhaps bothers me more when a non-party, non-attorney is allowed to step up and address a court on behalf of a litigant who chose not to appear. And this one has hurt clients of mine more than once where I’m ready to take a default say Order of Possession or something in the landlord/tenant area and I can’t get this done because a judge lets a non-party “represent” a party in court (why have lawyers if non-lawyers can just step up for another party?).

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The Worst Decision for a Sole Practitioner?

Posted by Peter on June 20, 2009
billing, finance, leadership / No Comments

Here’s a teaser for ya to entice you to watch our June 30th Webcast.

SIGN-UP NOW…only 47 seats remaining.

The question:  What’s the worst decision you’ve made in your early years in solo practice? The unanimous answer:  UNDER-BILLING…in other words, under-valuing the worth of your legal services. And it kills you for at least 3 reasons:

  • If client pays, you’ve cost yourself that difference between what you’re worth versus what you actually billed.
  • You’ve lowered the perceived value of your brand…right or wrong the cost of a product or service often equates to it’s perceived value or luxury.
  • You often lower your performance expectations (and actual performance) to match your billing rate. Ideally you give the same effort for your best clients and say that pro bono case but I’ve felt the leak of lowered performance that’s hard to totally avoid

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Observations from the Circuit Court

Posted by Peter on June 20, 2009
ethics / No Comments

I saw a couple things in court recently I didn’t love and thought I’d write about them here.

First, a lawyer who doesn’t appear on a client’s case in court even though client was told about it in advance.  I observed this while sitting in a courtroom recently and didn’t like it. It wasn’t just entering an agreed order or something like that. There were lawyers for one parent and a child’s representative and then a client who just said my lawyer can’t be here today. You shouldn’t do that both for client perception reasons and ethical reasons. I mean how would you feel if your lawyer essentially says you’re not important…I’m not showing up today. I wouldn’t call that diligent representation (rule 1.3).

Second, lawyer’s who whine about getting paid by their client to me as the opposing lawyer. Obviously this is an issue we all face but I think it’s just plain tacky to complain to your opposing lawyer about it and it’s admitting weakness to your opponent giving her an advantage. I wouldn’t hesitate to file some papers and cause you to do some additional work to push a lawyer out of the case if it helps my client.

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Never too Old to be a Judge

Posted by Peter on June 19, 2009
Cook County / No Comments

That’s sort of what the Supremes ruled yesterday regarding Cook County Circuit Court law division presiding Judge William Maddux’s lawsuit concerning mandatory judge retirement at age 75. The law that was ruled unconstitutional required a judge to step down at the end of the term during which he turned 75. He could run again but that would be more difficult than facing the mere 60% “yes” vote retention election that other judges who weren’t 75 face.  Here’s some media coverage.

Good ruling, right? I mean judgment doesn’t leave ya at 75…it’s not like you’re flying an airplane.

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New Small Business Blog from The Grey Lady

Posted by Peter on June 17, 2009
entrepreneurship / 7 Comments

Because if you have your own practice you’re an entrepreneur and small business person before you’re a lawyer…

You’re the Boss:  The Art of Running a Small Business

A diverse group of contributors including a Chicago small businessman.

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Free CLE Moderated by SIC

Posted by Peter on June 17, 2009
CLE / 2 Comments

No joke ISBA is offering several FREE Webcasts including one entitled:

Brick by Brick: Building a Law Practice in Challenging Times

June 30, 2009 @ 12pm from your desktop!

Here’s a blurb…

In this panel discussion webcast, the speakers provide practical advice for starting and building a small firm practice during a financial crisis by drawing on personal experience. Topics include naming your firm, choosing a location, running your practice efficiently, client referrals, billing and collections, blogging, staffing, and much more! Peter Olson will host the webcast and be available to answer questions via the chat feature throughout the course of this program. Course materials are available onscreen and for download during the webcast.

Access to this program is restricted to ISBA members only.

Thanks to my fellow panelists Cheryl Morrison and Charles Drennen…it was quite fun to put on in-studio with no audience.

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