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Starting a Solo or Small Firm Practice
By Michael Hodson and Tim Snively of Hodson, Woods & Snively LLP

      
      For background, our general practice firm consists of three partners and two associates. It started as a solo practice and has added about one lawyer a year for the five or so years of its existence. We handle criminal cases, family law, personal injury, collections, employment law, commercial litigation, social security disability — in short, a basic small practice, plaintiff and criminal defense firm.
     This article is intended for newly minted lawyers who are going to attempt to begin a solo practice or join a small firm with the responsibility of developing their own clientele.
     The advice is basic, out-of-the-gate material, so take it for what it's worth. We aren't experts and certainly don't claim to be, but we may have learned a few things by trial and error going through this process ourselves that may help a couple newbies avoid some of our many mistakes along the way.

INITIAL SET-UP
     As an attorney, the first thing you must determine is whether you want to start your own solo practice or attempt to find a small firm in your town that is willing to have a new attorney come in on a fee-splitting arrangement. In your area, there are hopefully a few 1-2 lawyer firms that have an excess of work and are looking for a new attorney to come on and assist them with some of their existing cases and also develop new clients for their firm. The normal arrangement in most of those situations is that the firm will offer to cover normal office expenses (phones, secretaries, copier, etc.) and hand off some of their excess cases in exchange for a fee split of all the monies that the new attorney brings in, normally somewhere between 50%-50% and 70% for the firm and 30% for the new attorney. That arrangement has a number of advantages for a new attorney, but the two most significant are the ability to work with more experienced attorneys and also (hopefully) a steady source of cases from the get-go. Obviously, going into a fee-split arraignment with more established lawyers is by far a safer choice than just hanging out a shingle and trying to make it on your own.
     If you intend on hanging out a shingle and starting a solo practice, the first thing you are going to have to do is find office space.
     If you are practicing in a relatively large town, such as we are up in Fayetteville, you may be able to find office space in a professional building that utilizes a shared receptionist for the entire office. Even if you don't want to practice the fee-splitting arrangement mentioned above, it is worthwhile to see if any of the local attorneys in town have extra office space that you can rent, again providing some access to established lawyers for referrals and also perhaps some secretarial assistance, which you are not going to be able to afford out on your own in the beginning. Regardless, the actual physical location of your office is not one of your vital concerns. As long as it is a professional looking office and it is relatively easy to find, that is all you will need. Before I started practicing law, I was under the impression that I would need an office in some centrally located, busy street, in the event that I would have some prospective clients walk in the door when they saw the "Attorney at Law" sign. After six years of practice, I am still waiting on my first worthwhile walk-in client, and I wasted good money on a fancy metal sign that is now lying on the floor in my office.

TELEPHONE/ADVERTISING

     In the beginning, you can get by with two telephone lines, one being your business line and one being your fax telephone number. Obviously some form of voicemail is a necessity. It's worth the effort to contact the telephone company and see what business numbers they have, rather than taking the first one they assign to you. Because you will only be ordering two lines, you do not have much leverage with the phone company to get one of their prime phone numbers, but it is still worth talking to them about available numbers they have and seeing if there is a number they are willing to give you that is relatively easy for prospective clients to remember. As soon as you get the number, contact all of the phonebook companies that service your area and make sure that your name and number is going to appear in their next issue. It doesn't happen automatically — get it done immediately.
     You also will undoubtedly need to have a cell phone to be able to conduct business while you're on the move. While I know lawyers who are willing to give out their cell phone number to clients, do so with caution. If you give the number out, plan on getting calls from divorce clients on Christmas Eve complaining about their former spouses not turning the children over promptly at 5:00 p.m.
     As to the question of advertising, specifically advertising in the yellow pages, you are undoubtedly going to hear advice all over the board and also get stories of success from a variety of different options. We only have the experience of advertising in Fayetteville, which is an unfortunately competitive market for attorneys. That being said, it is our belief that you either purchase a very large ad in the yellow pages or a small one. We are not believers in trying to split the difference in cost and size in getting a medium-sized ad. Assuming your initial practice is not flush with cash to spend on buying a large yellow pages ad, we would suggest you purchase a relatively small box ad that will go in the text area where your name appears. You'll need to prominently display your name and telephone number, and it's also quite worthwhile listing off a number of areas of practice that you intend to engage in, so that prospective clients needing a particular legal service know that you actually handle those cases when they stumble on your name in the book.

INITIAL SOFTWARE/ HARDWARE

     Obviously, you'll have the necessity for a good computer, fax machine, and laser printer. There is no need in the beginning to have any case management software or any other sort of particularized legal software. With the initial caseload that you'll be handling, the expense would far outweigh the possible benefits you derive from utilizing it.
     In terms of word processing software, either the basic Microsoft Word program or Corel WordPerfect will be sufficient for your initial needs. The easiest way to initially organize files is to create a folder for each letter of the alphabet and then create separate folders for each of your clients underneath those alphabetic subfolders. We would also highly recommend you create a folder for form files. In that folder you should collect example pleadings that you stand a likelihood of reusing, after slight modifications, in future cases. Organizing them in a separate form file will allow you to be able to quickly recall where they are without having the necessity of searching through a number of previous client files in order to find that great brief you wrote (or borrowed from a colleague) months ago.
     It is quite important to have a good laser printer, and one of the primary reasons is that it will alleviate the necessity of ordering pre-printed envelopes and letterhead. With a good laser printer you'll have the ability to set up a template or macro that will serve as your letterhead substitute by printing directly on your letters. It's easy and it's going to save you a good bit of money over time. Eventually you'll want to spend the extra money and buy the fancy letterhead and pre-printed envelopes because you are "supposed to," but keep your expenses to a minimum in the beginning — sensing a theme yet?
     The Arkansas Bar Association has done the lawyers in this state a great, great service by providing a legal research tool that is free to all members of the Association. Arkansas VersusLaw is available as a free service to all members of the Arkansas Bar Association and is easily accessible from the Association Web site at www.arkbar.com. While this research tool is by no means perfect, we would highly suggest relying on it rather than paying a rather hefty fee to one of the pay services out there.
     You also will need some basic accounting software to track your outstanding invoices, expenses and (hopefully) income. From the beginning of our practice we have used QuickBooks for this purpose and have found that it is sufficiently suited to the needs of a solo or small firm practice. It is worthwhile to coordinate with your accountant in picking whatever accounting software you want to use, so they can help with the initial set up and also help with developing categories of expenses and income that will be input as deposits and checks as they are being issued. Having this relatively organized on the front end will provide two services for you: First, you'll have the ability to pull up reports inside that program to determine where your income is coming from, and more importantly where your expenses are going to, and secondly, it will provide an invaluable service when it comes to tax time every spring.

NETWORKING/CLIENT DEVELOPMENT

     In the early stages of your practice, you're going to have to figure out every possible way you can to get potential clients in your office. As you are not going to have much of a legal reputation in the community and only a minor advertising presence, the best way to go about getting clients is referrals from other lawyers and people you know.
     It's worth it to spend a fairly significant amount of time early on in your practice meeting as many local attorneys as possible. Go to the courthouse before court is in session - there should be a regular crew of lawyers having coffee there. Join your local bar association. Knock on doors and introduce yourself.
     Undoubtedly, there will be a number of attorneys who are looking for newer lawyers to hand off some of those cases that are frankly not worth their time. Though it may not be worth a more established lawyer's time, some of these "dog" cases are certainly worth your efforts as a new lawyer. In addition to picking up these cases and earning a fee or two, it also will establish a relationship between you and these lawyers for possible additional referral work in the future. Besides the income possibilities, you're also going to need a number of lawyers around town that you can consult with for basic legal advice, pleadings, and to bounce questions off of, and it is a good way to get your foot in the door with those folks.
     Within the bounds of the ethics rules governing solicitation, it's also important to circulate your business card out to as many people as you possibly know. When we first opened our office, the first thing we did was to send a letter to all of our law school classmates and about every friend and family member we could think of informing them about our new legal practice and included a few copies of our business cards. Carry cards with you everywhere, and don't be shy about handing them out to people. You never know where the next case is coming from.
     In addition to meeting as many local attorneys as you can, it is imperative that you go by and introduce yourself to all of your local judges, their case coordinators, their court reporters and also your local clerks. The court clerks should be great resources for you throughout your practice. The case coordinators are vitally important as your practice progresses. They are the gatekeepers to your local judges, and remaining in their good graces might mean getting a continuance in a case or an early trial setting. Lastly, the judge's court reporters have seen more trials than you'll ever experience in your lifetime. The ones we deal with in Washington County have an uncanny ability of correctly predicting a jury result at the end of a case and also can give some of the best trial advice and tips for improvement that you'll receive anywhere. Aside from those useful attributes, they undoubtedly have some of the funniest stories you'll ever hear about the practice of law.
     In further effort to expand your network of possible referrals and potential clients, it's a good idea to get both politically active and also attempt to get involved in a few local charities. On the political side, make an effort to meet the local elected officials and during campaign season offer to do some fund raising on a few campaigns. Join your local Democratic or Republican Central Committee. Inevitably, some of the people you're going to meet who are active in local politics are not only some of the bigger movers and shakers in your community, but their network of friends and business associates ranges far and wide. The same thing holds true for the people you'll meet in the charitable arena. One of the keys is simply to get your face in front of people and make them think of your name when they or their friends need a lawyer. Basically, network with as many people as you can think of who may be the source of future referrals — bail bondsmen, chiropractors, doctors, bankers, real estate agents.
     It's worthwhile to contact the Arkansas Public Defenders Commission in Little Rock at 101 East Capitol Avenue, Suite 201, and ask for the application to be put on the list to receive possible criminal conflict appointments in your jurisdiction. Many of the judicial districts now have permanent conflicts offices, but you may be working in an area without one. In the same vein, you should contact your local Juvenile Court Judge and ask to receive any appointments from his or her court. Juvenile appointments are usually available to new lawyers because the money is not great. It's also a fine way to get your feet wet in the courtroom setting and get used to thinking on your feet in front of a judge.
     We are behind the curve on having an internet presence, but after talking to a number of lawyers that have Web sites up and running, it's something every firm should be doing. The key is content. Merely having a one- or two-page Web site with your basic biographical information isn't sufficient. You need to have links to other sources or have your own content that is substantive and helpful to individuals with a particular problem looking for a lawyer who knows something about their issue. The more content you've got on your Web site, the more you are going to pop up on internet searches — or so I'm told. Spend a little time cruising the web and looking at other firms' sites; you'll quickly get an idea of what works and what doesn't.

CLIENTS AND FEES
     Like the rest of this article, our practical experience is limited to Northwest Arkansas so take this advice with more than a grain of salt. Getting paid for your work (or more appropriately, not getting paid for your work) by far is the most annoying thing about the practice of law. It's always been a bit of a mystery to me, but potential clients seem willing to pay everyone in their life providing them a service, except for their attorneys. When a client's air conditioner or car breaks down, they are fully aware that they are going to have to come up with the entire bill prior to the work getting done, but they are going to want to get you to do legal work on the promise of their big tax refund that should be in the mail any day now. As a general rule, the bottom line is this: Whatever money you get from a client up front is the only money you're ever going to see. Price accordingly. You are going to hear 50 different stories about how you are going to get paid in the future with this or that guarantee. Assume they are lying, because they are — that assumption will save you a lot of unintentional pro bono work.
     As to what you charge for your services, again talking to some local attorneys is going to point you in the right direction. For new lawyers up here in Fayetteville some of the following guidelines seem to be about right: about $100-$125 an hour for any hourly work; $500 or so for an uncontested divorce; $300-$750 for a misdemeanor criminal case; and $1,000-$3,500 for felony criminal charges (assuming you are not handling higher level felony cases, which honestly, you shouldn't be doing alone in the beginning anyway). Get the potential client in the office before you quote a fee. You will get a bunch of calls of people just calling everyone in the phone book for quotes — if they aren't serious enough to have a face-to-face meeting, they aren't going to be serious enough to pay a fee. Gauging what fee to charge is more of an art form than a science. You need to not only know how severe (and therefore time consuming for you) the case is going to be, but what financial abilities the client and his family and friends have that they are willing to put toward getting you paid. Do not be embarrassed to ask the questions you need to get a feel for your client's ability to pay the fee you are about to quote. Lastly, get at least half of your money before you enter any appearance or go on the record for your new client. If you file something or go on the record for a client before you get paid, you are on the hook with the Court and it may be tough, or impossible, to get off the case and you are ethically bound to do your damnedest for the client in that situation, even if you are working for free.
     Hanging out a shingle and starting a practice on your own fresh out of law school is a frightening prospect and after doing it myself, not one that I'd recommend to many. You have to have the ability to maintain your sanity and emotional balance on the inevitable months in the beginning where you make zero dollars and zero cents. You also have to be able to restrain yourself from immediately blowing money when you do hit a good payday, because you'll need that money to make it through a lean time around the corner. The best advice we can give is to keep your expenses as low as possible; they will seem to expand on their own anyway. You have to have the desire to get out and beat the bushes for new clients and take some dog referrals from other lawyers. You cannot have too much pride to not ask for advice. The whole experience can be quite humbling, more than occasionally annoying and will toy with your self-confidence and your faith in the whole legal system.
     Though the road is not easy, if you make it, the reward is fantastic. There is a immense sense of accomplishment building up a practice from nothing and being in charge of your own destiny (at least on the job). Lastly, you are your own boss — there isn't anyone looking over your shoulder that you have to report to about every move you make or hour you spend. Take a random afternoon off to play a round of golf, play with your kids, read a good non-legal book on the back porch, or plan a big evening for you and your spouse. Enjoy. It's a great job if you can get it.•

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