Solo In Chicago…Grow Your Practice!

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.

April 2009

Gross Income $4,136.67 YTD: $25,442.89

Business Expenses

Office supplies 54.14

Train ticket(s) 32.30

Malpractice insurance 167.40

Credit card processing fees 7.50

Web host 9.95

Mail/postage 103.80

Cell phone(s) 67.10

eFax 29.95

eVoice 29.95

Petty cash/lunches/gas 378.83

Computer/technology upgrades 390.87

Service organization dues 200.00

Northwest bar assn dues 165.00

Client reimbursement 132.30

Business Expense Total: $1,769.09 YTD: $4,369.59

April 2009, Net Income: $2,367.58 YTD: $21,073.30

Peter’s Commentary:  A very expensive month actually…biz expenses for April nearly equaled the previous three months combined. Mainly the costs were a couple large client marketing initiatives and some technology infrastructure stuff so nothing of a repeating monthly variety. But that’s still a scary number when I look back to only $653 for the month of February. Still not consistently reaching my $6,000 monthly gross income goal. I’m counting on an uptick in the real estate market and some of my marketing investment starting to payoff better pushing my gross income upwards.

March 2009 YTD
Gross Income $13,554.22 $21,306.22

Business Expenses

Office supplies 253.75

Train ticket(s) 70.40

Malpractice insurance 87.88

Credit card processing fees 40.61

Web host 9.95

Mail/postage 58.30

Cell phone(s) 184.25

eFax 19.95

eVoice 29.95

Bank service charge 15.00

Office space 33.75

Petty cash/lunches/gas 147.52

Business Expense Total: $951.31 $2,600.50

March 2009, Net Income: $12,602.91 $18,705.72

Peter’s Commentary: Good month though a tad slanted due to finishing up a sizable case that had dragged on for many years with a big chunk of fees delayed due to the sale of a home. Expenses $300 over last month which is disturbing and something to keep an eye…mostly just some one time purchases of some necessary office furniture.

February 2009 YTD

Gross Income $4,940.29 $7,752

Business Expenses

Office supplies 39.99

Train ticket(s) 32.30

Malpractice insurance 83.70

Credit card processing fees 23.68

Web host 9.95

Mail/postage 68.03

Cell phone(s) 92.00

eFax 19.95

eVoice 54.95

Bank service charge 30.00

Office space 45.00

Marketing materials 70.51

Petty cash/lunches/gas 83.17

Business Expense Total: $653.23 $1,649.19

February 2009, Net Income: $4,287.06 $6,102.81

Peter’s Commentary: Sort of a ho-hum month but with momentum starting to build. Since February income is primarily January billing there’s a bit of a holiday period hangover/slowness and some seasonal slowness related to our real estate practice. Made some marketing investments that I expect to payoff in coming months.

I’m a big fan of the Consumerism Commentary…very well done and informative financial blog. One of the best things they do over there is the primary blogger posts his personal balance sheet each month. So I can see his income, expenses, ect. Very useful for helping readers get their finances under control.

Partly to motive myself regarding financial management and frankly to lay it all out there for our readers, I’m going to start doing the same here for my solo practice law firm. I’m not laying non-law firm stuff out here or getting too personal, but I do want everyone to learn about building a law practice and selfishly I’d like to put it out there from my own benefit, namely hearing from our readers about what I can be improving upon.

So here is my Firm’s income/expense figures for January ‘09:

Gross Income $2,811.71

Business Expenses

Office supplies 71.95

Annual ARDC fee (law license) 289.00

Train ticket(s) 32.30

Service organization dues 100.00

Malpractice insurance 96.24

Credit card processing fees 15.91

Web host 9.95

Mail/postage 37.58

Cell phone(s) 91.00

eFax 59.90

Bank service charge 15.00

Office space 40.00

Court fee 25.00

Petty cash/lunches/gas 112.13

Business Expense Total: $995.96

January 2009, Net Income: $1,815.75
Peter’s Commentary: January’s generally my Firm’s least profitable month of the year by far and it was likely worse than usual this year. On the one hand I was out of the office and town a LOT so there wasn’t a lot of billing done in January so most of the revenue was of a residual nature from clients who are paying down past-due balances. And on the expenses side, nearly 1/3 of the expenses was my annual law license fee which is a once a year expense.