The world doesn't revolve around you. It will continue to spin around every day even if you don't wake up and put in a full day of work. The sun will continue to rise. The phone will continue to ring. If you are starting a law firm, sometimes this is hard to remember. But what better time to talk about this than around the holidays.
Thanksgiving was on Thursday. As you know, I recently started my own law firm (which, by the way, when do you think it stops being recently and turns into something different, like some time ago, or "back when I started my law firm"), and when Thanksgiving rolled around do you know how much work I did? None. Do you know how much I thought about work? Very little. And you know what, when I checked my email and looked at my website, everything still worked, there were no emergencies, and everything was fine.
This is a lesson everyone needs to remember, for both the holiday season and the rest of the year. It is okay to take a day off from work. It is okay to remember why you are doing what you are doing (which probably involves something other than the law firm itself) and take some time to enjoy your friends and family and take some time to enjoy yourself. When you come back to work everything will still be functioning. And if there is an emergency, you can take care of it. I can guarantee you nothing will happen in one day that will hurt your business.
It's almost time for New Year's Resolutions (and 2010 goals). Don't forget to make it a priority to make your business work for you, and not the other way around.
Happy Thanksgiving.
Saturday, November 28, 2009
Saturday, November 21, 2009
Payment and Your New Law Firm - Always Get Your Money Up Front
Just to warn you, this post is not going to be the most politically correct I've ever written. But this is a blog about how to start a successful law firm, so I have to tell it how it is. I will make a few broad generalizations that I know don't hold true to everyone. That is why they are generalizations. But the lesson holds true, and if you aren't following it, give it a try and see how much better your law firm runs.
Here we go. Your clients do not want to pay their legal bills. They think you are overpriced. They don't understand the kind of expertise, advice, and counsel that you give them, and they will probably never understand that. Your work is, for the most part, intangible. When it is all said and done, though you've worked your butt off and gotten a good settlement, avoided litigation, drafted and executed the perfect contract, or saved the client from jail time, they see the end result and think you didn't do anything - particularly enough to warrant the fee you've agreed to.
And even if your work is not done, as the expenses start piling up, you'll find your clients more and more reluctant to pay their bills on time, if at all. And they will soon find (after you don't get out when you should) that they know you will continue to work even if they don't pay. All of a sudden you are doing a lot of work for free.
But there is a way to avoid this problem. And if you read the title of the post you'll probably already know what it is - get your fee paid up front. This solves several problems. First, you'll know that your client can afford you, which is always a good thing. Second, you won't have to keep hounding your clients for money and you can focus on resolving their case in their best interests. And third, you can get paid for your work.
As a criminal defense attorney I accomplish each of those three goals by charging a flat fee for my work. The prospective client and I come to an agreement for a specific amount of money that includes whatever needs to be done on the case through trial. If the case is resolved earlier, the fee is still earned, as it is my expertise, experience, and skills that are paid for, not my time. I provide a value service, not a commodity, so I don't measure my work in increments of 6 minutes (and I honestly wouldn't even if I was litigating civilly).
If you are not a criminal lawyer and want to continue to bill hourly, this can be done by getting a retainer that is earned down as time goes by. Break it up into segments that the client can pay up when necessary. For example, you budget x dollars to investigate, draft the complaint, and file the lawsuit. Once that is done, you budget x dollars for discovery. Once that is done, you budget x dollars for the drafting and argument of your summary judgment motion. If, at any time, the client can't or won't pay, you can withdraw at a point in the case where the break is clean.
I learned this the hard way over the course of my first couple of years of practice. People will convince you that they can pay, just not right now. You will believe them, either because you want the work or they come off as trustworthy to you. And then time will go by and you won't get paid. And then more time will go by and you still won't get paid. Eventually you'll have to decide whether or not you want to try to collect from them using all the means at your disposal (and most of you won't because you are afraid of bar complaints - I always tried to collect).
When I started my law firm, I made a pact to myself. I promised myself that my new law firm and the success of my new law firm was more important to me than feeling busy. To be successful when starting a law firm, you need to make money. To make money, people have to pay you. If you are the best lawyer out there and can't pay your bills or feed your family you aren't the best lawyer out there.
If you are having trouble getting paid from your legal clients take a step back and think about how you are presenting your fee options. Think about how you value your services internally and what you deserve for the work you are providing - and don't take anything less than that. Moving forward, think about options you can present to your clients that allow you to actually get paid and allow you to do the work your clients need.
Here we go. Your clients do not want to pay their legal bills. They think you are overpriced. They don't understand the kind of expertise, advice, and counsel that you give them, and they will probably never understand that. Your work is, for the most part, intangible. When it is all said and done, though you've worked your butt off and gotten a good settlement, avoided litigation, drafted and executed the perfect contract, or saved the client from jail time, they see the end result and think you didn't do anything - particularly enough to warrant the fee you've agreed to.
And even if your work is not done, as the expenses start piling up, you'll find your clients more and more reluctant to pay their bills on time, if at all. And they will soon find (after you don't get out when you should) that they know you will continue to work even if they don't pay. All of a sudden you are doing a lot of work for free.
But there is a way to avoid this problem. And if you read the title of the post you'll probably already know what it is - get your fee paid up front. This solves several problems. First, you'll know that your client can afford you, which is always a good thing. Second, you won't have to keep hounding your clients for money and you can focus on resolving their case in their best interests. And third, you can get paid for your work.
As a criminal defense attorney I accomplish each of those three goals by charging a flat fee for my work. The prospective client and I come to an agreement for a specific amount of money that includes whatever needs to be done on the case through trial. If the case is resolved earlier, the fee is still earned, as it is my expertise, experience, and skills that are paid for, not my time. I provide a value service, not a commodity, so I don't measure my work in increments of 6 minutes (and I honestly wouldn't even if I was litigating civilly).
If you are not a criminal lawyer and want to continue to bill hourly, this can be done by getting a retainer that is earned down as time goes by. Break it up into segments that the client can pay up when necessary. For example, you budget x dollars to investigate, draft the complaint, and file the lawsuit. Once that is done, you budget x dollars for discovery. Once that is done, you budget x dollars for the drafting and argument of your summary judgment motion. If, at any time, the client can't or won't pay, you can withdraw at a point in the case where the break is clean.
I learned this the hard way over the course of my first couple of years of practice. People will convince you that they can pay, just not right now. You will believe them, either because you want the work or they come off as trustworthy to you. And then time will go by and you won't get paid. And then more time will go by and you still won't get paid. Eventually you'll have to decide whether or not you want to try to collect from them using all the means at your disposal (and most of you won't because you are afraid of bar complaints - I always tried to collect).
When I started my law firm, I made a pact to myself. I promised myself that my new law firm and the success of my new law firm was more important to me than feeling busy. To be successful when starting a law firm, you need to make money. To make money, people have to pay you. If you are the best lawyer out there and can't pay your bills or feed your family you aren't the best lawyer out there.
If you are having trouble getting paid from your legal clients take a step back and think about how you are presenting your fee options. Think about how you value your services internally and what you deserve for the work you are providing - and don't take anything less than that. Moving forward, think about options you can present to your clients that allow you to actually get paid and allow you to do the work your clients need.
Monday, November 16, 2009
How to Network When Starting Your Law Firm
One of the things I try to do a lot is talk to other people who have started their own law firm or are thinking about starting their own law firm to find out what they are doing. Invariably the ones that aren't making any money or are really struggling are spending a lot of time "networking." This means going to meetings with various other struggling practitioners and handing out business cards and acting like something is going to come of it. If you are doing this - stop it - it won't work!
What I always ask these people to tell me is this: how much business have you referred to anyone you met at those networking events? How many people have you met there that you have followed up with and actually had a discussion with at some other point? The answer is almost always "none" and "a couple," at best. When I hear that then I ask them why they are wasting their time doing it since they aren't seeing any results. Sometimes it clicks, sometimes it doesn't.
I decided to write this post because I went to a "networking" event last Thursday night and it reminded me of the scenario I described above. Why did I go, you might be asking, if I know I'm not going to get any business out of it? Well, for starters, let me point out that I didn't say you couldn't get any business out of it, I just described a scenario where people don't and won't get business out of it.
Why do I go? I go for two reasons. First, I don't know very many people in town. I've only lived here for a year and been open for five months. So I don't know very many attorneys either. And, even more specifically, I don't know very many attorneys that are around my age, which I like to know because it is fun to hang out with them. Second, I see it as a way to make a lot of money in the future, once people know who I am. It just needs to be done right.
For every networking event I have two goals: (1) have a great time; and (2) meet and make a connection with at least one new person. Sounds pretty easy, right? And it is. And that's what makes it fun. And that's what takes the pressure off of you to go out there and perform like some networking rock star that comes off as a needy, struggling attorney hoping to find someone to throw you some business. You end up having a fun time, meeting some nice people (you always meet more than one person because usually the person you meet knows someone else there, and the snowball begins) and usually talking a lot about how fun it is to start a law firm.
So, how do you make money at networking events like these? You simply have to give people what they want - referrals. But isn't that taking money out of your pocket? No, because you are referring people to them that handle things that you don't. For example, at the networking event I was at I met a patent attorney, a family law attorney, an estates attorney, and a business law attorney. They do things I don't do. When people ask me for help in those areas I can send them to them without the fear of losing my criminal defense business. And, when people come to them with problems I can help them with, they can send them to me without fear of losing their business.
You beginning to see how this works? It's all about give and take, and the more you give, the more you will get over the long run. That's why this is a long term marketing strategy. You have to get to know these people (you do not want to refer business to someone who will do a good job - that makes you both look bad) to send them business, and they have to experience getting business from you to get business from them (usually - at some point you will be the first to receive business - remember this, thank them for the referral, and keep them informed on what is going on - within the ethical rules of course - this will get you more referrals).
And one last thing - be yourself, whoever that is. For example, when I go to these things I'm usually the one to say the things that everyone else is thinking. I'm not trying to be proper. I'm not trying to be passive (though I am always respectful). I'm trying to show people who I am and learn about who they are. The only way to do that is to be yourself.
So, the next time you go to that networking event, collect those cards that people give you, and then send them an email by at the latest the next day telling them it was nice to meet you and offering to go get some coffee with them (you buy if you ask them to go). You will have probably received between three and five business cards so it shouldn't be too difficult (I got four at mine). While you are at the event find out what they do and begin thinking about ways you can help them in their practice. You'll be surprised about the money that will start flowing in after.
Related Posts:
What I always ask these people to tell me is this: how much business have you referred to anyone you met at those networking events? How many people have you met there that you have followed up with and actually had a discussion with at some other point? The answer is almost always "none" and "a couple," at best. When I hear that then I ask them why they are wasting their time doing it since they aren't seeing any results. Sometimes it clicks, sometimes it doesn't.
I decided to write this post because I went to a "networking" event last Thursday night and it reminded me of the scenario I described above. Why did I go, you might be asking, if I know I'm not going to get any business out of it? Well, for starters, let me point out that I didn't say you couldn't get any business out of it, I just described a scenario where people don't and won't get business out of it.
Why do I go? I go for two reasons. First, I don't know very many people in town. I've only lived here for a year and been open for five months. So I don't know very many attorneys either. And, even more specifically, I don't know very many attorneys that are around my age, which I like to know because it is fun to hang out with them. Second, I see it as a way to make a lot of money in the future, once people know who I am. It just needs to be done right.
For every networking event I have two goals: (1) have a great time; and (2) meet and make a connection with at least one new person. Sounds pretty easy, right? And it is. And that's what makes it fun. And that's what takes the pressure off of you to go out there and perform like some networking rock star that comes off as a needy, struggling attorney hoping to find someone to throw you some business. You end up having a fun time, meeting some nice people (you always meet more than one person because usually the person you meet knows someone else there, and the snowball begins) and usually talking a lot about how fun it is to start a law firm.
So, how do you make money at networking events like these? You simply have to give people what they want - referrals. But isn't that taking money out of your pocket? No, because you are referring people to them that handle things that you don't. For example, at the networking event I was at I met a patent attorney, a family law attorney, an estates attorney, and a business law attorney. They do things I don't do. When people ask me for help in those areas I can send them to them without the fear of losing my criminal defense business. And, when people come to them with problems I can help them with, they can send them to me without fear of losing their business.
You beginning to see how this works? It's all about give and take, and the more you give, the more you will get over the long run. That's why this is a long term marketing strategy. You have to get to know these people (you do not want to refer business to someone who will do a good job - that makes you both look bad) to send them business, and they have to experience getting business from you to get business from them (usually - at some point you will be the first to receive business - remember this, thank them for the referral, and keep them informed on what is going on - within the ethical rules of course - this will get you more referrals).
And one last thing - be yourself, whoever that is. For example, when I go to these things I'm usually the one to say the things that everyone else is thinking. I'm not trying to be proper. I'm not trying to be passive (though I am always respectful). I'm trying to show people who I am and learn about who they are. The only way to do that is to be yourself.
So, the next time you go to that networking event, collect those cards that people give you, and then send them an email by at the latest the next day telling them it was nice to meet you and offering to go get some coffee with them (you buy if you ask them to go). You will have probably received between three and five business cards so it shouldn't be too difficult (I got four at mine). While you are at the event find out what they do and begin thinking about ways you can help them in their practice. You'll be surprised about the money that will start flowing in after.
Related Posts:
Law Firm Marketing with Adwords - Yodle Review
Update on Law Firm Online Marketing With Yodle
Update 2 on Law Firm Online Marketing with Yodle
Starting a Criminal Law Firm and Out of the Box Marketing
Monday, November 2, 2009
When Starting a Law Firm, Don't Be Afraid to Ask For Help!
I can't remember how much I've told you about myself (aside from the things I'm doing to open a successful criminal defense law firm) and I'm not going to look back to figure it out. So, if this is more detailed or less detailed than you already know, too bad (if you care).
In general, I am a criminal defense attorney and DUI attorney (I consider them to be different technically) who, almost one year ago from today moved from a small city in the Midwest to a large city in the Pacific Northwest. When I moved to said city, I didn't know a soul in the legal community. I'd never practiced in said city. I wasn't familiar with their rules, practices, procedures, and how things "really" ran. I pretty much went in cold. All I had was my (semi-considerable) experience from the Midwest.
To figure out what was going on in my new city, I reached out. I sent completely blind emails to anyone I could find any shred of compatibility or commonness with and asked them if they would meet and talk with me about stuff. I asked stupid DUI questions to get lunch, I asked stupid criminal defense questions to get a coffee. And anytime I met anyone anywhere that did what I did, I sent them an email and asked if they'd like to talk. And I learned a lot pretty quickly.
In no time flat, I also realized something that I wasn't sure I really knew, believed, or understood about most legal communities out there - there is a pretty high level of camaraderie, particularly with those that do what you do. Sure, the world is competitive, and they aren't going to give you their clients (and maybe not even their marketing secrets), but when in the trenches of battle with the opposition, many many people like to extend a helping hand.
And I was reminded of that, very thoughtfully, today. I was in a hearing, on a very routine, mundane matter that can be dismissed without the client there (I'll let you try to figure out what it is). When my client's name was called, I stood up, made my arguments, and got shot down by the judge on every one. I did my best, but just couldn't come up with anything she'd buy. But, before she ruled against me, she sat my case off to the side and said "we'll come back to this in a minute." I had no idea what was happening, so I went and sat back down and kept looking at what I had to try to find something that would work.
Then another attorney came over and sat down next to me, someone that I knew was very good at his job and that had a lot more experience dealing with the kinds of problems we were addressing. He introduced himself and asked if he could see what I was looking at. After about 10 seconds he looked back, pointed, and said "right there is a problem - bring this up and the case gets dismissed." I took the opportunity to ask him a couple of questions about what he showed me and some other things, and thanked him for his help.
When the judge called me back up I made the one last argument and the judge dismissed the case! She'd seen what he had seen and wanted to give me a chance to get a case dismissed that should have been dismissed. And she knew that the other attorney would come over and help me out to figure out what was wrong. And neither one of them had to do that.
I guess the point of my post is this. At some point we were all young attorneys, or just opened our criminal defense offices, or moved to a new area, or transitioned to a new area of law. And at some point we could have all used a couple of helpful hints on how to proceed on an issue. And, I hope, in a couple of years, I'll be able to hand out some helpful hints on how to proceed on an issue. The practice of law is not easy. A lot of answers are hidden out there like needles in haystacks. And it is your responsibility, if you know where the needles are hidden, to show others. Sure, they are competing with you, but if you have to worry about them taking all of your business, you are already fighting a losing battle.
The next time you have the opportunity to help someone else out in the industry, do it. It will make you feel better, it will make them feel better, and you'll probably make a new friend out of it. And, remember, the more friends you have, the better off your life, your practice, and your wallet will be.
In general, I am a criminal defense attorney and DUI attorney (I consider them to be different technically) who, almost one year ago from today moved from a small city in the Midwest to a large city in the Pacific Northwest. When I moved to said city, I didn't know a soul in the legal community. I'd never practiced in said city. I wasn't familiar with their rules, practices, procedures, and how things "really" ran. I pretty much went in cold. All I had was my (semi-considerable) experience from the Midwest.
To figure out what was going on in my new city, I reached out. I sent completely blind emails to anyone I could find any shred of compatibility or commonness with and asked them if they would meet and talk with me about stuff. I asked stupid DUI questions to get lunch, I asked stupid criminal defense questions to get a coffee. And anytime I met anyone anywhere that did what I did, I sent them an email and asked if they'd like to talk. And I learned a lot pretty quickly.
In no time flat, I also realized something that I wasn't sure I really knew, believed, or understood about most legal communities out there - there is a pretty high level of camaraderie, particularly with those that do what you do. Sure, the world is competitive, and they aren't going to give you their clients (and maybe not even their marketing secrets), but when in the trenches of battle with the opposition, many many people like to extend a helping hand.
And I was reminded of that, very thoughtfully, today. I was in a hearing, on a very routine, mundane matter that can be dismissed without the client there (I'll let you try to figure out what it is). When my client's name was called, I stood up, made my arguments, and got shot down by the judge on every one. I did my best, but just couldn't come up with anything she'd buy. But, before she ruled against me, she sat my case off to the side and said "we'll come back to this in a minute." I had no idea what was happening, so I went and sat back down and kept looking at what I had to try to find something that would work.
Then another attorney came over and sat down next to me, someone that I knew was very good at his job and that had a lot more experience dealing with the kinds of problems we were addressing. He introduced himself and asked if he could see what I was looking at. After about 10 seconds he looked back, pointed, and said "right there is a problem - bring this up and the case gets dismissed." I took the opportunity to ask him a couple of questions about what he showed me and some other things, and thanked him for his help.
When the judge called me back up I made the one last argument and the judge dismissed the case! She'd seen what he had seen and wanted to give me a chance to get a case dismissed that should have been dismissed. And she knew that the other attorney would come over and help me out to figure out what was wrong. And neither one of them had to do that.
I guess the point of my post is this. At some point we were all young attorneys, or just opened our criminal defense offices, or moved to a new area, or transitioned to a new area of law. And at some point we could have all used a couple of helpful hints on how to proceed on an issue. And, I hope, in a couple of years, I'll be able to hand out some helpful hints on how to proceed on an issue. The practice of law is not easy. A lot of answers are hidden out there like needles in haystacks. And it is your responsibility, if you know where the needles are hidden, to show others. Sure, they are competing with you, but if you have to worry about them taking all of your business, you are already fighting a losing battle.
The next time you have the opportunity to help someone else out in the industry, do it. It will make you feel better, it will make them feel better, and you'll probably make a new friend out of it. And, remember, the more friends you have, the better off your life, your practice, and your wallet will be.
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