|
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.
|