Solo/ Small FirmToolkit by The Bar Association of San Francisco

Toolkit

A guide to hanging your own shingle written by San Francisco attorneys

published by The Bar Association of San Francisco September 2013

This Solo/Small Firm Tookit has been prepared by a group of small firm and solo practitioners in San Francisco as part of The Bar Association of San Francisco’s (BASF) “Mind the Gap” or MTG initiative. MTG is focused on recent law grads struggling – through no fault of their own – to find full time legal employment in the worst legal job market in a generation. As part of MTG, and recognizing that many in this situation will not find jobs in large or mid-size firms, we have put together this Toolkit as a resource for those who decide to start a small or solo practice.

Tabl e of C on t e nt

Introduction ��1 How to use this book Chapter 1: Existing Resources �� 2 Books ��3 Courses ��5 online resources ��6

Chapter 2: office management �� 7 Accounting ��8 insurance ��10 General Commerical Liability Malpractice Health insurance Workers’ Compensation Office space ��14 Leasing space Working from home Virtual office Shared space technology ��17 Software Hardware finance/ budget ��23 Profit/ Loss Trust account Human resources ��24 Employees Contract workers Virtual assistants Policies Bill collection ��27 Collection tips Credit cards Business structure ��29

Tabl e o f C on t e n t

- c on t inued

Chapter 3: marketing and business development �� 32 website ��33 branding ��35 social media ��37 advertising ��39 networking ��40 referral services ��41 volunteering ��42 publications/ press releases ��43 Speaking appearances ��46

Chapter 4: the practice of law �� 49 choosing your practice area(s) ��50 client acceptance ��51 sample documents/ researching the law ��53 ethics/ professional responsibility ��55 litigation ��56 representation agreements ��58 attorney-client fee disputes ��59

appendix �� 60 mind the gap ��61 acknowledgements ��62

I n t r o du ct i on A couple of notes before you dive into this Toolkit. First, it is a living and breathing document. Whether you are new to this or have insights from years of practice, please share them with us, indeed we need them! We will update this Toolkit periodically. Â Suggestions should go to Leonard Lun, BASFâ&#x20AC;&#x2122;s director of Membership at llun@sfbar.org.

Second, please do not treat everything in here as Gospel. We have done our best to be helpful and informative in starting a law practice, but are not providing legal advice to you or your prospective clients.

Good luck! 1

cha p t e r 1 E x i st in g R e s ou r c e s: B o o ks , C ou r se s , In t e r ne t

E BOX

nyone considering opening a law office should take the time to review the books, courses, and other materials referenced here. Not only do they provide excellent practical advice on what you need to do in order to start and grow a law practice, they are also a source of inspiration written or taught by attorneys who have enjoyed successful careers as sole practitioners and/ or in small firms. While most of these materials are not Californiaspecific, they provide generally applicable information at a level we cannot possibly recreate here.

1 E x istin g R e s ou r c es

BOOK S

B ook s How to Start and Build a Law Practice by Jay Foonberg

Small Business Start Up Kit for California by Pan Pakroo, J.D.

99 Practical advice and a classic “must read” for attorneys considering a solo practice 99 Gives confidence to attorneys going out on their own 99 Available in the American Bar Association bookstore and individual chapters can be purchased for immediate download.

99 Practical advice and a classic “must read” for attorneys considering a solo practice 99 Gives confidence to attorneys going out on their own 99 Latest edition released in 2004, so technological advice is a bit outdated

Solo By Choice by Carolyn Elefant

The E-Myth Attorney by Michael Gerber

99 Practical advice for starting a law firm 99 General business knowledge 99 Helps understand all options for a career

99 Excellent insight on how to approach law-firm management 99 Good advice on running a small business 99 Quick read

1 E x istin g R e s ou r c es

BOOK S

The Associate As Rainmaker: Building Your Business Brain by David King Keller

Minding Your Own Business: The Solo and Small Firm Lawyerâ&#x20AC;&#x2122;s Guide to a Profitable Practice by Ann Guinn

99 Includes a business development checklist 99 Appendices with exercises, goals sheets, and time management forms 99 Tips and strategies for all lawyers

99 How to run a business with helpful, pragmatic advice 99 Marketing strategies to attract new business 99 Helpful worksheets

MORE RESOURCES American Bar Association Book Store apps.americanbar.org/abastore/index.cfm

15% OFF

BASF membership entitles you to 15% off the list price of any of the American Bar Associationâ&#x20AC;&#x2122;s more than 300 titles.

State Bar of California Visit the Solo and Small Firm Section of the State Bar of California website at solo.calbar.ca.gov for more information.

1 E x istin g R e s ou r c es

courses

cour s e s Golden Gate University School of Law The Business of the Practice of Law Professor: Maurice Zilber A course about going solo or forming a small partnership with friends. Or for those entering a firm, their knowledge of the business aspects of practice gives them a leg up. Seminars and Workshops San Francisco Trial Lawyers Association (SFTLA) www.sftla.org Continuing Education of the Bar (CEB) ceb.com The Bar Association of San Francisco (BASF) www.sfbar.org/calendar Practicing Law Institute (PLI) www.pli.edu How to Manage a Small Law Firm www.howtomanageasmalllawfirm.com

1 E x istin g R e s ou r c es

onl i ne r es o urces

onl i ne R e s ource s BASFâ&#x20AC;&#x2122;s Solo and Small Firm Resource Center BASF has put together an online Solo and Small Firm Resource Center for attorneys who need information, resources and tips vital to running a successful practice. Membership is required to access. Blogs Small Law Firms Blog westlawinsider.com/category/small-law-firms Hot topics, events and more for solo and small firm attorneys. My Shingle myshingle.com Inspiring solo and small firm lawyers and those who want to be. Solo and Small Firms www.abajournal.com/blawgs/topic/solossmall+firms American Bar Association offers a large number of blogs and resources for attorneys who are solo or employed in small law firms. Listerv Solo and small firm attorneys face everyday challenges that their counterparts at big and medium sized firms do not. With that in mind, BASF has addressed this important and growing group by creating a listserv for solo practitioners and small firms. Membership is required to access.

cha p t e r 2 Off ic e Ma n ag em e nt

B O LT S

lthough some attorneys reject the term “the business of law” as trivializing the profession, the fact is that all sole practitioners are small business owners. Keeping the doors of your law practice open requires you to treat your law practice as a business. Unfortunately, these are not skills taught in law school. However, plenty of materials exist to show you how to successfully manage a law office. From hiring an accountant to choosing software and insurance to finding an office, the tasks necessary to open and manage your law office may seem daunting at first. But by choosing the right time-saving tools (software in particular), managing your time responsibly, and attacking and prioritizing your to-do list every day, you will be amazed at how quickly you can be up and running.

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accoun ti n g

accoun ti ng Before you make an accounting decision, talk to some bookkeepers. I recommend using QuickBooks [from Intuit]. Assuming everything goes well, you are going to want to be able M att Gl u c k * to hand off the accounting for your business (as well as some of the accounting-related functions, e.g., generating invoices, paying bills) to a bookkeeper. And whereas every bookkeeper knows QuickBooks, their familiarity with other software packages will be hit-and-miss. I spent a couple of weeks using GnuCash, a freeware alternative to QuickBooks. It seemed fine, but I talked to a bookkeeper, and sure enough, she had never heard of it. As the industry leader, QuickBooks also has good integrations with financial institutions for automatically retrieving your data. It’s offered as SaaS (software as a service) or as normal software. If you go the software route, don’t worry about getting the absolute latest version; last year’s will be fine, and will be cheaper. I recommend serving as your own bookkeeper at least until you understand how your books are kept; then hand it off to a bookkeeper as soon as the economics of paying someone to do it makes sense. (Unless you love bookkeeping.)

Pam Ful m e r

I recently spoke with a friend who just started his own practice. He definitely recommended QuickBooks, and suggested getting a subscription to the cloud based software.

Apparently it is only about $40.00 per month and can be easily accessed by any bookkeeper that a solo or small firm practitioner is working with. He says that this worked much better than simply going out and purchasing the software and copying it onto his computer.

*See the full list of contributing attorneys in the Appendix

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Eric T osca n o

accoun ti n g

QuickBooks is definitely the way to go. If you plan on using Clio as law practice management software, get the desktop version of QuickBooks. At least as of October 2012, Clio supposedly integrated with the desktop version of QuickBooks but not the SaaS version.

I know of some attorneys who keep track of their expenses in an Excel spreadsheet. Â But since most accountants know and use QuickBooks, I think it is well worth the cost of a license. Additionally, if and when you decide to farm out your accounting, it will probably be easier to do so if you use QuickBooks than if you use an Excel spreadsheet.

Craig Da n i e l

We have used FreshBooks for all our timekeeping and invoicing for about two years. It is cloud based and allows our in-house contract-based timekeepers to enter time daily. Our contractors also use FreshBooks to invoice us, so everything is in one place. FreshBooks is a huge timesaver for us.

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i nsuran ce

i n s urance G ener a l Co m m e rc i a l Li ability ( GCL ) ( GC L )

M att Gl u c k

General Commercial Liability insurance (GCL) is cheap for lawyers, and will be required by many or most leases or subleases, anyway. I think a million dollars or more of coverage can be purchased for something like $500 per year. If you are ever going to have clients or anyone else come to your office, it’s a good idea to have GCL. Every major insurer will offer GCL.

M a l pr ac ti ce – L aw y e r s ’ P r o f e ssi onal Li ab i l ity ( LPL ) Eric T oscan o

I originally looked into getting LPL with Marsh. Ultimately, I found a great plan with the Lawyers’ Mutual Insurance Company (LMIC) called the Strong Start Program.

For a $300,000 annual aggregate/$100,000 per claim plan, LMIC offers a first-year rate of $500 per year for attorneys in their first years of practice who meet specific criteria. The minimum policy typically includes $300,000/$100,000 coverage. Two factors to consider in choosing the amount of coverage are (1) whether you practice in an area or areas (e.g., Intellectual Property) where LPL claims tend to be higher and (2) whether you have significant assets.

Ahern Insurance (a partner of BASF) offers LPL to solos/smalls for reasonable rates, but it’s still thousands per year.

M att Gl u c k

LPL insurance is more or less important depending upon whether you have assets that you want to protect. LPL protects you, and it can also be seen as a way that you are protecting your clients in the event you make a mistake that harms a client, they may have recourse against your carrier. You may want to reconsider your level of LPL coverage when you get larger clients in the door.

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Merri Ba l dw i n

i nsuran ce

Keep in mind that if you do not have professional liability insurance, you must inform your clients of that fact for any matter in which it is reasonably foreseeable that you will spend more than four hours of time. Rule of Professional Conduct 3-410.

h ea lt h i n s u ra n ce

M att Gl u c k

Kaiser Permanente offers a wide range of individual health plans, depending upon your needs. I am a relatively low consumer of health services, so I chose a high-deductible, high-copay plan that has relatively low premiums. I pay around $250/month, which includes dental. I also chose the Health Savings Account option, so I can save and use pre-tax dollars to spend when I do need health care.

a t ip o n h e a lth i ns u ra n ce f r o m basf

As a sole practitioner or small law firm, there are a number of important areas to consider while evaluating the most appropriate health insurance options for you, your employees and their families.

Below are five important items to consider as you begin to evaluate your options: • Begin shopping for insurance at least 30-60 days prior to needing coverage in force. There are over 200 different individual and small employer plans available in California. Coverage can take time to understand and implement. Having a 30-60 day lead time will provide adequate time to implement appropriately. • Make a list of the doctors, hospitals and/or facilities that are important to you, your family or your employees. All medical plans have “contracted” or “in-network” providers who have agreed to accept pre-defined amounts for services. Securing a medical plan that has most, or all, of your doctors in-network will provide enormous savings over time.

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i nsuran ce

• Understand a medical plan’s “maximum out of pocket exposure.” Your deductible or copayment is NOT the most important component of your medical plan. An individual or family’s “maximum out of pocket exposure” is the most important number and is the amount that identifies where your exposure would end for covered services in a catastrophic event. Make sure you clearly understand what this amount is and that you are comfortable with this level of exposure. • Learn more about tax-efficient medical plans such as health savings account (HSA) options. Health savings account (HSA) or health reimbursement account (HRA) alternatives can dramatically decrease a subscriber’s financial exposure to medical expenses while at the same time decrease monthly premiums. • Ask about what ongoing or additional services your insurance broker will be providing. Pricing of individual and small employer health plans are identical regardless of which broker you are working with. Most agents or brokers differentiate themselves by providing additional administrative, HR, technology or legal resources which are, in many cases, free-of-charge. Be sure to understand how service-focused the broker you have selected will be throughout your relationship. The health insurance marketplace is rapidly changing. It is important to understand how these changes will affect you and your practice and a knowledgeable insurance broker will be able to help guide you through them.

w or k er s c o m p e n s ation ( WC) A Ti p on W or k e r s ’ C om p e nsat i on In s u r an ce fr om B A SF

California employers are required by law to have workers’ compensation insurance, even if you have only one employee. This is true even if that employee is a family member!

If your employees get hurt or sick because of work, you are required to pay for workers’ compensation benefits.

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i nsuran ce

The benefits include: • • • • • •

Medical care Temporary disability benefits Permanent disability benefits Supplemental job displacement benefits Vocational rehabilitation Death benefits

Below are four important items to consider as you begin to evaluate your options: • Begin shopping for coverage before you hire your first employee. By law, coverage must be in place upon hire. • Keep detailed payroll records. The premium for workers’ compensation insurance is based on actual payroll paid, and is auditable. • Be sure your employees are being classified correctly for workers’ compensation rating purposes. The main rating factor of the premium you pay for workers’ compensation insurance is related to the industry classification(s) assigned to your business. It is important that a correct classification code is assigned to each employee. If an incorrect classification is used, the error will likely be caught at the time of the annual audit and can result in unexpected premium due. A knowledgeable broker can assist with this classification for you. • Is your insurance broker large enough to have access to multiple insurance carriers, yet small enough to offer personal service? • Do you have an advocate to work with in the case of a claim? • Is your broker able to assist with workers’ compensation related compliance tasks such as legal hand-outs, posters and/or enrolling in an MPN (Medical Provider Network)? • Can they offer risk management services, including assessments, classroom safety trainings, and setting up an Injury, Illness and Prevention Program (IIPP)?

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office s pace

Offi ce Space l ea s ed o ffi ce spa ce

M att Gl u c k

Downtown locations (San Francisco or other cities) offer walking-distance access to a host of services. From my building at Bush and Montgomery, I can walk in just a few minutes to a branch of any bank, to UPS, USPS, or Fedex/Kinkos, to Staples, shoe repair, dry cleaners, restaurants, bars, gyms, transit, etc. This is not a small thing in terms of saving time and quality of life.

wo r k f ro m h o m e Eric T oscan o

For someone with dedicated space in their apartment or house (and who is not easily distracted), working from home could be an option. However, rentable space should be available somewhere nearby (i.e., outside the home) to meet with clients.

Vir t u a l Offi ce Ot i s C. Lande r h o l m

Pro: Less expensive Con: Less control over atmosphere and location

I considered using a virtual office (and I still consider adding a virtual office in a second location), but after walking through many of them, I decided they weren’t going to be as available/ accessible to many of my clients. I’m an immigration and bankruptcy lawyer, and I decided it would be more effective to be located in the Mission District and to be able to post a sign outside the window to attract walk-in customers. This would’ve been more difficult at a virtual office (which all seem to be in high rise or tall financial district buildings). That being said, I know other immigration attorneys who have successfully started their firms in virtual spaces, so I know it can be done. It is worth thinking about the atmosphere that you want your clients to feel when they meet you.

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office s pace

S ha r ed S pa ce Eric T oscan o

I began by renting workstation space in a shared office suite with a company called Intelligent Office. Their service is outstanding and includes live receptionist service with a personalized firm/ company greeting, mailbox service, conference rooms and offices rentable by the hour, and a shared copy/printer/scanner.

The workstation arrangement worked out fine for the first couple of months. Whenever I needed to meet with clients, I just rented an office or conference room for the meeting. After I got busier, I upgraded to an office. I recommend working in a suite with attorneys and/or other professionals as co-tenants. Fellow attorneys could be a great source of advice and referrals. Fellow professionals are potential clients.

Getting a sublet to rent an office in a suite of lawyers and/or other professionals is an attractive option. Such an arrangement can come quite bare-bones, or with a full range of amenities. M att Gl u c k Such arrangements commonly include a shared reception area, kitchen area and copier. Many also include a shared receptionist, and a conference room – these are nice items but can have a significant impact on the cost of the space. Some sublets will include other resources such as Internet, treatises or other legal materials. Sharing space may also create the potential for shared secretarial, bookkeeping, or legal assistant/paralegal time. Not to be overlooked is the benefit of working with other colleagues around, creating the potential for socializing, using each other as sounding boards, and other interactions. Sitting in an office by yourself waiting for the phone to ring has the potential to be depressing.

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office s pace

Looking for a place to hold a client meeting or mediation? BASF offers meeting space to accommodate large and small gatherings. Our meeting rooms can accommodate from two to 26 people and are available by the hour or day.

A T ip o n r e n t i n g r oo ms fr o m B A SF

Located in the heart of the financial district at 301 Battery Street, between Sacramento and Clay Streets, BASFâ&#x20AC;&#x2122;s offices, on the third floor of the stately Bently Reserve building, offer a convenient and secure meeting place. Discounts are available with BASF membership. More information and photos at www.sfbar.org/about/meeting_facilities.aspx

MORE RESOURCES Some Considerations for Sharing Office Space www.sfbar.org/forms/sfam/q12010/sharing-office-space Via San Francisco Attorney magazine In todayâ&#x20AC;&#x2122;s rough and tumble times, a solution for the headaches related to expensive rents for office space can often be mitigated by sharing office space with another business. However, before you consent to signing your name on a lease agreement, there are several considerations that deserve your attention. Read more...

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te chn ol ogy

t echnolog y S oft wa re Law Practice Management Software

M att Gl u c k

Law practice management [LPM] software is often cloud based which can be a good fit for a mobile office. Most tend to offer a variety of functions that integrate with each other, including contact management, calendar, task lists, matter/engagement management, time sheets, time capture, billing/invoicing, and more.

You can associate (upload) key documents and communications (emails) with matters, a good way to keep things organized and accessible. Major providers include Clio and RocketMatter. Lexis and many other companies also offer LPM products.

I chose Clio after having heard stellar reviews from two fellow solos. Clio is SaaS, so there is never a need to update and it Eric is available on any device with an Internet connection. Clio T oscan o makes timekeeping and invoicing very easy, integrates with Microsoft Outlook, and includes lots of very useful features. And, it is a relative bargain at only $49.00 per month. Clio offers new users a free thirty-day trial. After using Clio for almost five months, I think it is excellent and affordable, but I have been a bit frustrated by the QuickBooks integration. Clio supposedly integrates with the desktop version of QuickBooks. However, before you can actually download usable data (e.g., invoices and payments) from Clio, certain fields in the applications need to be mapped. (After my first unsuccessful attempt to download data from Clio, I ended up having to spend an hour on the phone with my CPA to correct all the mistakes caused by the fields not being mapped.) If you don’t have the expertise to do it yourself, you’ll need to hire an IT expert to help. Otherwise, Clio is a great option.

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te chn ol ogy

Electronic Calendaring Software Deadlines.com is a web-based litigation calendaring program. You put in the dates of events (e.g., service of the complaint), and it will return the dates of triggered deadlines M att Gl u c k (e.g., date to respond to the complaint). You can then sync (or upload for Mac) the dates into your calendar program. It’s only $20 per case per month, a cost that can be passed through to your litigation clients. Deadlines.com is a product of Aderant, a big legal software company serving firms big and small. This means they have an army of moles getting the latest updates to procedural rules that affect calendaring, including (in many jurisdictions) local rules. While ultimately it is every lawyer’s responsibility to calculate their own deadlines, it seems to me that Deadlines/Aderant is going to do a better job than me (or you) most of the time. There are likely other companies offering similar products.

Automatic Time Capture Software There is a type of software that runs in the background and captures data on the time you spend in each application, generally specifying time spent in each document, on each webpage, M att Gl u c k etc. There are many, many such programs, with a host of different functionalities. Some integrate with LPM software as a way to bill time. I have found that using this software also helps me identify times or days when I am overdoing the multi-tasking – jumping around from one thing to another every couple of minutes. I have not found any automatic time capture software that I have felt was a good fit for my practice in terms of value (they tend to be subscription-based), but I remain hopeful.

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te chn ol ogy

Sales and Marketing Software If you are thinking of hiring someone to handle your law office’s marketing and client relations, consider Infusionsoft first. You can E ri c use this powerful sales and marketing automation software to T o scan o automate communications with clients and potential clients, create automated email “drip” campaigns based on practice area, attract potential clients with free reports, and streamline routine tasks. Taking full advantage of Infusionsoft’s powerful tools will save time, increase revenues, and improve client relations.

iPad Apps for Legal Research There are at least a couple low cost or no cost apps that are available for legal research. One that I have used that works well is Fastcase. The app is free and you can also sign up without Pam F ul m e r being charged a fee. But if you want to add more than the most basic features, there will be a charge. A quick look at the Fastcase website shows $695 a year for one membership, and $995 for the most loaded membership. You can also pay by the month.

Moving to the Cloud I am in the process of moving all my software and data to a virtual server, which would mean that all my applications and data E ri c would run off a server in the cloud. I like this solution because T o scan o my data will not reside on a single PC or server and I would not need to worry about backing it up. Additionally, working off a virtual server is ideal for a distributed/virtual work environment (i.e., where users are in different physical locations) and would obviate the need for me to purchase equipment for other users.

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te chn ol ogy

All a contract attorney, paralegal, assistant, etc., would need is an Internet connection and the software allowing that person to connect to the virtual server. Â The IT experts at Centarus,Inc., based in San Francisco, are getting me set up. I highly recommend them for IT support.

MORE RESOURCES Law Office Software by Aaron R. Feldman cclawyer.cccba.org/2012/07/law-office-software Via Contra Costa Lawyer Assessing the pros and cons of the myriad law office software available out there is like taking a trip down a rabbit hole. There are a multitude of products from which to choose. The process of sifting through them is daunting, overwhelming and sometimes even exhilarating. It is hard not to be seduced by features that seem great, but which you may ultimately never use. The key is to look around at the options and at the same time look at your practice and your overhead to determine what products are the best fit for your office. Read more...

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te chn ol ogy

HARDWARE Renting Computers and Hardware

Pam F ul m e r

My friend who opened up his own law firm told me how surprised he was at how cheap it is to rent the computers and the equipment from certain computer equipment rental companies. At the end of the lease, you have the option of buying the equipment that you have been leasing.

Printers and Toner To start, I used a small but sturdy Brother all-in-one for my printer/ copier/scanner/fax and I recommend it. You save a lot of money Ot i s C. (and space) from avoiding a big industrial copier (though there Lande r h o l m are times when I need to take larger jobs to FedEx Office), but the new Brothers can handle up to 50+ pages of automatic feed scanning and copying – which is worth its weight in gold! But, beware that toner costs more than you’d ever expect!

M att Gl u c k

Toner is crazy expensive. And beware of cheap toner! I bought second-rate toner on Amazon, for a quarter of the price of OEM toner. Sure enough, my printer wouldn’t recognize that the replacement toner cartridge was full. Also, it leaked yellow toner everywhere. I wound up buying the expensive name-brand toner.

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te chn ol ogy

MORE RESOURCES Office Systems by Matthew M. Hart cclawyer.cccba.org/2012/07/office-systems Via Contra Costa Lawyer This article touches on recommendations for phone systems: cell, land line, answering machines, as well as furniture, copiers, etc.

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fi nance / b udget

fi nance/ budge t pr o fit/ l oss E ri c T o scan o

I strongly recommend coming up with at least a one year budget before moving forward with your law practice. I did my first budget in QuickBooks 2013, but subsequently created a separate budget in Microsoft Excel. I actually prefer working with the Excel budget even though it probably makes more sense to keep all financial data together in QuickBooks.

t r ust acco u n t E ri c T oscan o

I opened my trust account at the same time I opened my business operating account. According to the State Bar of California: “[l]awyers who handle small amounts of money for their clients, or money that is held for a short period of time, must . . . deposit[] these funds into an Interest on Lawyers’ Trust Account (IOLTA).” (www.calbar.ca.gov/Attorneys/MemberServices/IOLTA.aspx.)

For most new solos, this will probably apply to most funds held in a trust account. A list of banks eligible to provide IOLTA accounts is available at www.calbar.ca.gov/Attorneys/MemberServices/IOLTA/EligibleInstitutions.aspx. When opening an IOLTA account, an attorney will need to provide the bank with 1. A copy of the State Bar’s “Notice to Financial Institutions” form (downloadable from www.calbar.ca.gov/Attorneys/MemberServices/IOLTA/Guidelines.aspx) 2. The State Bar’s federal taxpayer identification number. Additionally, attorneys must update their state bar profiles when a new trust account is opened. Ensuring proper accounting of an IOLTA/trust account is beyond the scope of this Toolkit, but resources are available on the state bar website. I find myself using my trust account less and less frequently, as I rely more on credit cards for payment and security.

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HUMAN RES OURCES

HUMAN RE S OURCE S E m plo y e e s While I have not yet hired any employees, I believe a sole practitioner’s first hire should be an administrative assistant – E ri c whether traditional or virtual. With everything a sole practitioner T o scan o needs to attend to – printing, scanning, mailing, and other administrative tasks – should be delegated to an administrative assistant. The more these tasks are farmed out, the more time will be available for legal work. I recommend litigators open an account with FirstLegal or another filing and courier company. A sole practitioner must be sure to properly classify the individual hired as an employee or independent contractor. Employers must withhold income taxes, withhold and pay Social Security and Medicare taxes, and pay unemployment tax on wages paid to an employee, but not on wages paid to an independent contractor. (See www.irs.gov/Businesses/Small-Businesses-&-Self-Employed/Independent-Contractor-(Self-Employed)-or-Employee%3F.) The California test and the federal test to determine whether a worker is an employee or an independent contractor differ in some cases. In California, the right of direction and control, whether or not exercised, is the most important factor in determining an employment relationship. At the federal level, the test to determine whether a worker is an independent contractor or employee requires considering behavioral control, financial control, and relationship of the parties. (See www.taxes.ca.gov/iCorE.bus.shtml#Federal.) Before hiring your first employee, it may be a good idea to consult an employment attorney for further information, and perhaps a more senior attorney for an exemplar employment agreement. My accountant recommended Paychex for handling payroll.

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HUMAN RES OURCES

C o nt r ac t w o rk e rs When things get busy enough to require additional help with legal work, a sole practitioner may wish to hire a contract E ri c attorney rather than a full-time associate. This will give the sole T o scan o practitioner a chance to get to know the contract attorney and become familiar with his or her work. If a good fit, the sole practitioner could continue working on other projects with the contract attorney and potentially hire him or her. If not a good fit, the sole practitioner can always end the relationship at the conclusion of the project. In addition to or in lieu of hiring a contract attorney, a San Francisco-based sole practitioner may consider taking on a law student intern. Students at San Francisco-based law schools (UC Hastings College of the Law, University of San Francisco Law School and Golden Gate University Law School) are based here year-round, while many students at law schools in and around the Bay Area (UC Berkeley Law School, Stanford Law School, Santa Clara Law School, UC Davis Law School and McGeorge Law School) look for summer internships in San Francisco. For more information, contact the schools’ offices of career services. Finally, I believe there is at least one paralegal school in the Bay Area that requires its students to complete an internship. Thus, there may be opportunities for additional paralegal help at no cost.

Vir t u a l Assista nts I have looked into hiring a virtual assistant. I will likely do so in lieu of hiring an administrative assistant/legal secretary. Eric Depending on your practice, a virtual assistant could be a great T o scan o solution for a solo attorney spending too much time on administrative matters but lacking the resources and/or space for a physically present administrative assistant/legal secretary. A virtual assistant can do just about anything that does not require physical presence, e.g., answering phones, communicating with clients, preparing electronic documents for mailing.

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HUMAN RES OURCES

The two biggest drawbacks I foresee are an inability to print and deliver hard copy documents to me and to scan documents I receive at my office. I am attempting to retain as many of my files as possible in digital format, so it is frequently necessary for me to scan and shred.Â I would love to be able to farm this out to an assistant, but mailing documents to be scanned seems tedious. Former paralegal Dortha Hise (www.dorthahise.com) offers virtual assistant services through her company on an independent contractor basis.

P ol ic i e s Sole practitioners should have a policy manual in place before hiring an independent contractor, employee or intern. It may be Eric a good idea to reach out to a more senior attorney and ask to T o scan o use his or her policy manual as an exemplar. Â In his book How to Start and Build a Law Practice, Jay Foonberg sets forth a list of topics that should be covered in a policy manual. (see page 3 of this Toolkit for information about the book)

2 Off ic e man ag e me n t

BILL COLLECTI ON

Bi ll C ollec ti on COLLECT I ON T I P S A number of different lawyers cautioned me upon hearing I was hanging out my shingle saying, “Be sure you get paid. Many people want a lawyer; fewer want to pay for one.” Most solos/ M att Gl u c k small firm lawyers (as well as big firm lawyers) have horror stories about getting stiffed on the bill, and I think writing off some receivables is an inevitable fact of life, and should be built into your business model/projections. That said, there are tools to help you collect: • Send regular bills. Don’t let a big receivable pile up by not sending out an invoice every month. • Ask for a substantial retainer. If a potential client balks at a $5,000 retainer, that may be a red flag even before you bill an hour. • Get an evergreen retainer. If the client’s always ahead, you don’t have to chase. • Get an enhanced retainer as trial approaches. If you’re going to be limited in your ability to withdraw, get a big chunk of money from your client in advance to limit your downside (if you lose at trial). • Have provisions in your engagement agreement that specifies that any judgment or settlement will be paid to your trust account AND that the client agrees to your subtracting any outstanding balance owed from said judgment or settlement before paying your client. • Meet the potential client in person, and trust your gut instincts about them. • Credit checks – I’ve never run one, but in theory it’s a good idea. My engagement agreement authorizes me to run a credit check on the client. • Don’t be timid about following up and demanding that you get paid.

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BILL COLLECTI ON

C r ed it C a rd s Consider accepting credit cards. The vast majority of my clients prefer to pay via credit card. LawPay is my credit card E ri c provider and I am very happy with them. LawPay takes a T o scan o percentage of each charge and also charges a flat monthly fee. LawPay permits clients to pay via credit card into either a trust account or operating account. LawPay also complies with the strict California ethics rules pertaining to credit cards and trust accounts. (See State Bar Formal Opinion 2007-172, available at ethics.calbar.ca.gov/LinkClick. aspx?fileticket=ngt5WX-QswE%3D&tabid=838.) Have clients provide credit card information up front as security in addition to, or in lieu of, a deposit. Include a clause in the fee agreement authorizing the attorney to charge the credit card only (1) if a payment is a certain number of days past due or (2) if the client otherwise consents.

MORE RESOURCES “Getting Paid” by Luis M. Montes cclawyer.cccba.org/2012/07/getting-paid Via Contra Costa Lawyer Lawyers, like most business people, often have difficulty getting paid for the professional services they have rendered. “Accepting Credit Cards” by Gary Dubrovsky cclawyer.cccba.org/2012/07/accepting-credit-cards Via Contra Costa Lawyer This article address the ins and outs of credit card transactions, IOLTA accounts and fees charged by banks, and the professional services they have rendered.

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BU SINE SS STRUCT URE

B u si ne ss S t ruc t ure LLP, LLC a n d S o l e P ro pr ie tor sh ip If you are starting out solo, your two principal options are to operate your law practice as a sole proprietorship or as a E ri c professional corporation. A sole proprietorship does not create T o scan o a separate legal entity and is the simplest structure for tax purposes, but does not provide the sole proprietor with any shield from liability. A professional corporation creates a separate legal entity, is treated differently than a sole proprietorship for tax purposes, and provides greater protection from liability. I ultimately chose to open my law office as a sole proprietorship but may opt to become a professional corporation if/when I hire an employee.

Al i ci a Gá m e z

Solo practitioners and small firms have several business structures available to them.

Sole Proprietor A solo practitioner can practice as a sole proprietor. The sole proprietor form provides no liability protection: as a sole proprietor, you are personally responsible for claims arising from your business, and your personal assets are at risk. Insurance is your best friend. Make sure you have a good liability coverage for your premises to cover “slip and fall” claims and professional liability insurance for claims arising from your practice. Umbrella insurance is a good idea; it provides broad coverage for claims of personal liability. For income tax purposes, your income as a sole practitioner is reported on your individual income tax return. California does not impose a business or entity-level tax on the sole proprietor. Limited Liability Company The limited liability company is not available to lawyers. California Corporations Code section 17375 prohibits limited liability companies from rendering professional services, including legal services.

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BU SINE SS STRUCT URE

Limited Liability Partnership The limited liability partnership is available to multiple-attorney practices. The limited liability partnership form allows partners to limit their vicarious liability for their partners’ and employees’ acts, provided that the LLP is registered and maintained in accordance with statutes and the State Bar’s Limited Liability Partnership Rules and Regulations. The LLP does not protect you (or your personal assets) from claims arising from your own actions or from errors or omissions in your own legal practice. Again, professional liability insurance provides protection in the event of a claim arising from your legal practice, and umbrella insurance provides protection for other claims of personal liability. For tax purposes, there is no federal income tax at the entity level. LLPs are taxed as partnerships, which means business income flows through to the partners and is taxed on their personal income tax returns. California does impose an $800 annual tax on the LLP but not an entity-level income tax (www.ftb.ca.gov/businesses/bus_structures/LLpartner. shtml). In addition, the State Bar imposes fees and requirements on the LLP (www.calbar. ca.gov/Attorneys/MemberServices/LimitedLiabilityPartnership.aspx; rules.calbar.ca.gov/ Rules/Title3ProgramsandServices.aspx). Professional Corporation The professional corporation form is available to solo and to multiple-attorney practices. Like the LLP, this liability shield can serve to protect the personal assets of the practice owner from certain claims. The professional corporation does NOT provide a liability shield for malpractice or for actions that the individual attorney personally takes. For the solo practitioner who performs most tasks personally, the professional corporation provides precious little liability protection. It may protect against “slip and fall” claims, but not if you were responsible for the premises. For tax purposes, the corporate form imposes an entity-level tax at the state and federal level, though the owners may elect to be taxed as an S-Corporation (www.irs.gov/Businesses/Small-Businesses-&-Self-Employed/S-Corporations). California imposes an $800 per year, minimum franchise tax and an entity-level tax on the net income of the corporation (www.ftb.ca.gov/businesses/bus_structures/cCorp.shtml). California also imposes a tax on the net income of S-Corporations (www.ftb.ca.gov/businesses/bus_structures/ sCorp.shtml). As with the LLP, the State Bar imposes fees and requirements on the professional corporation (www.calbar.ca.gov/Attorneys/MemberServices/LawCorporations. aspx; rules.calbar.ca.gov/Rules/Title3ProgramsandServices.aspx).

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BU SINE SS STRUCT URE

MORE RESOURCES “Choice of Entity” by George Cabot cclawyer.cccba.org/2012/07/choice-of-entity Via Contra Costa Lawyer This article discusses the selection of the form of entity under which to practice law is different depending on whether the lawyer is a solo practitioner or in partnership with other lawyers.

cha p t e r 3 M a r ke t in g a n d B u s i n e ss D ev e l o pm e nt

G UP

arketing and business development include all of the strategies you implement to fulfill the dream of why you became a lawyer in the first place: to make a living while serving appreciative clients. This section will provide you with innovative ways to add new clients and grow revenue. Your goal is to become â&#x20AC;&#x153;top of mindâ&#x20AC;? when members of your target audience have a need for your practice skills. Go through this section to learn about: websites, branding, social media, advertising, networking, referral services, volunteering, the art and science of selling, the mindset of successful rainmakers and much more.

3 mar ke tin g / b us i n e ss develo p men t

Web site

web sit e I recommend Brett Fullmer at 888-645-9449 or brett@quickonlinestore; www.quickonlinstore.com. He made my website www.gallenberglaw.com. He is friendly, affordable and available for any questions you may have. He can make the updates for you and maintain it. He doesn’t provide content. However, something I really like about him is that he can set up your website in such a way that you can do your own updates (which is really cost effective), basically he will set it up so you can do updates just by typing in content as you would do in a Microsoft Word document) you wouldn’t need to know how to do HTML). He also can train you on SEO (search engine optimization).

R o sa Vi g i l G a l l e nb e r g

His rates for attorney websites are in the $1,000-$2,000 range depending on the specifics of your website. He can also help you set up Google analytics, and your email. He charges me by the hour, therefore, I only pay for the time he actually spends on my website, when I need him.

d av id kin g ke l le r

E ri c T o sca n o

Website development strategic support: Howard Hale at h@howard-hale.com, 206-355-0313, or www.howard-hale.com.

I bought a WordPress theme and built my website myself. www.wordpress.org

3 mar ke tin g / b us i n e ss develo p men t

Emm y Paste r na k

M a r ga r e t M ur r ay

Web site

Ken Matejka with Legal PPC will set up and maintain websites, and does an excellent job running Google ad campaigns for all marketing budgets. He specializes in search engine optimization for solo practitioners and small firms. Contact information is 415-513-8736, ken@legalppc.com, www.legalppc.com.

I recommend Erin Ferree: www.elf-design.com or elf@elf-design.com.

Jessica Gore of Gore Creative is a multitalented designer who does numerous projects for BASF. She designed www.sfbar.org and continues to produce electronic newsletters and special projects for the bar. She understands the legal market and the challenges in marketing a law practice. Her services cover branding, print and online marketing, communications and design strategies. She can guide you through a redesign of your logo, website or marketing materials, counsel you on best practices for designing and writing for the web or simply provide a comfortable place to vent your frustrations and sound out ideas. www.gorecreative.com

A T ip o n w eb d e s i g n a n d co py- w r it i n g f r om B ASF

Virginia “Ginger” Bisek is a copy writer, editor, content strategist and project assistant who believes that multi-tasking makes for a more interesting work day. She took BASF’s 2005 website and did a complete overhaul working closely with each department’s “Subject Matter Experts” (SMEs) to create copy that briefly and concisely told the story of the work of The Bar Association of San Francisco. She also understands the work of a solo/small law firm and has written copy for numerous clients across the United States. www.virginiabisek.com

3 mar ke tin g / b us i n e ss develo p men t

Br an din g

B rand i ng What is personal branding and why do attorneys need to brand? Personal branding is the process whereby people and their careers are marked as brands. Personal branding is a form of self-marketing – promoting yourself as a complete package which includes not just your knowledge and expertise but your appearance, your clothing, and how you carry yourself. By creating a brand around yourself, your name, and your career, you build a reputation that is attractive to others so that you can generate business and expand your network (and hopefully, your net worth!).

M a r in a S ar m ie nt o Fe eha n

Today with the prolific use of the Internet and social media, a personal brand is an essential part of legal career success, and at the very least, of career survival. As an attorney, your word is your reputation and your reputation is your brand. Attorneys sell their expertise, knowledge, and problem-solving abilities, an intangible skill set known as “intellectual property.” This makes the legal profession ideal for personal branding so attorneys can set themselves apart based on their strengths, skills, and personality. To brand properly, a strategy is needed – one that considers the target audience, your career goals, and the appropriate platform(s) to reach your audience and promotes your brand consistently. For now, to get you started, here are a few links for you to explore personal branding: • California Minority Counsel Program (CMCP) Personal Branding Blog: www.cmcp.org/?blawg_personalbrand • Eight Tips for Attorneys to Build Your Personal Brand: www.personalbrandingblog.com/8-tips-for-attorneys-to-build-your-personal-brand • Personal Branding – You Are What They Google: www.theprlawyer.com/2012/10/personal-branding-you-are-what-they.html • Developing your Personal Brand: www.americanbar.org/publications/law_practice_today_home/law_practice_today_ archive/november11/tips-from-a-fellow-attorney.html • BASF Webinar: “Brand You: Professional Branding for Attorney Success” www.sfbar.org/basf-bulletin/2013/Feb2013/professional-branding.aspx

3 mar ke tin g / b us i n e ss develo p men t

Br an din g

Lastly, Positive Counsel, a legal career consulting firm, helps attorneys build a personal brand that distinguishes you from the competition. Through the use the 360Reach personal branding assessment (www.reachcc.com/360reach), Positive Counsel creates a branding strategy that capitalizes on your strengths unique abilities. To learn more about personal branding for attorney success, go to: www.positivecounsel.com.

E ri c T o scan o

I worked with a fantastic local graphic designer, Eli Blair Media, to design my logo and create business cards, letterhead, and envelopes. Eli Blair Media used gotprint.com for printing. www.eliblairmedia.com

MORE RESOURCES “Branding Yourself Online: Tips for Spinning Your Story with Blogs And Other Social Media” by David King Keller tinyurl.com/BrandingYourselfOnline Via the American Bar Association Book Publishing Division There has been an explosion of ways lawyers can use the Internet to build a personal brand. This article offers tips for spinning your story with blogs and other social media.

3 mar ke tin g / b us i n e ss develo p men t

soc ial m edia

s oc i al med i a merri bal dw i n

Ethical considerations: For social media as for any other medium, make sure you understand and comply with State Bar of California rules governing attorney advertising and solicitation. See State Bar of California Standing Committee on Professional Responsibility and Conduct Formal Opinion No. 2012-186.

ethics.calbar.ca.gov/Portals/9/documents/Opinions/CAL%202012-186%20%2812-2112%29.pdf

MORE RESOURCES “Social Media Marketing” by Ivette M. Santaella cclawyer.cccba.org/2012/07/social-media-marketing/ Via Contra Costa Lawyer The standard ways of marketing our law practices – yellow pages, radio or TV ads – have given way to less expensive or no-cost solutions with the same or better results – social media. We hear so much about social media, but what exactly is it? “Social Media For Lawyers” by David King Keller http://tinyurl.com/SocialMedia4Lawyers Facebook, LinkedIn and Twitter are leading social networking sites, each offering a unique platform to help you share information with your personal and professional contacts. Get an indepth overview of using social media tools in your practice.

3 mar ke tin g / b us i n e ss develo p men t

soc ial m edia

T ip s on S o c i a l Me di a F r o m B A SF

Some easy steps to creating your brand in social media: LinkedIn • Set up a company page on LinkedIn blog.linkedin.com/2008/11/17/creating-company-profiles-on-linkedin/ • Send status updates, use images so your updates stand out • Make sure you have a cover photo • Join groups and participate in them – comment, post discussions, etc. www.socialmediaexaminer.com/5-ways-to-use-linkedin-groups-to-build-influential-connections Twitter • Learn about @mentions, hashtagging: support.twitter.com/articles/166337-the-twitter-glossary# • Tweet about your practice area using hashtags #FamilyLaw, #Immigration, etc. • Share news and resources by retweeting (RT) • Link back to blog posts or content on your website • Live tweet from seminars you attend: dev.twitter.com/media/live-tweeting • Follow attorneys and firms in your practice area • Follow local and national law reporters • Follow bar associations Technology Tuesday Webinars on Social Media [Password for all videos: techreplay] • Social Media ROI: vimeo.com/59613478 • Twitter for Lawyers: vimeo.com/40753943 • Blogging 101 for Lawyers: vimeo.com/37261164

3 mar ke tin g / b us i n e ss develo p men t

adve rtisin g

adver tisi ng Ot i s C. La nde r h o l m

Mark L. Lass e r

Google Adwords is a self-serve way to market your business at whatever budget you can afford. It is a great way to start bringing traffic to your website without breaking the bank. (Though I have found out, that the more money you invest into it, the more it pays for itself).

I think Google AdWords is more effective in smaller markets (e.g., Truckee versus San Francisco). You won’t be able to afford to rise to the top of the search list with the bigger law firms in larger markets.

3 mar ke tin g / b us i n e ss develo p men t

Ne tw orkin g

N e t work i ng Recommendations for Building Your Business Through Networking • Article: Network Like a Pro: tinyurl.com/NetworkLikeAPro • Among both attorney and non-attorney groups • Non-Attorney Groups: • Business Networking International (BNI) • Rotary Groups • Association memberships • Neighborhood Associations (e.g., Mission Merchants Association) • Chamber of Commerce • Attorney Groups: Bar Associations (BASF, Barristers Club, Minority Bar Coalition, American Bar Association) CLE groups (Attorney Action Club and San Francisco Lawyers Network). • Listservs • Mentorship • Alumni associations • College • Law school • Sports associations

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r e fe r r al services

re f e rral s erv i ce s BASF maintains a state bar certified Lawyer Referral and Information Service (LRIS), which was established in 1946. Knowledgeable, multi-lingual legal interviewers refer prospective clients to pre-qualified, ethical, insured attorneys in good standing with the State Bar of California, in over 20 principal practice areas and over 100 sub-areas of law. In addition, referrals are made to over 250 different legal resources in the Bay Area, when it is determined that the client’s needs are better served through a governmental or community based organization.

T i p s on th e Lawyer Ref e r r al a n d I n f or mat i on S e rv i c e f r o m B A SF

Attorneys interested in receiving client referrals from LRIS in their area of practice should apply to become LRIS members and must have a San Francisco office. The LRIS Attorney-to-Attorney Advice Program and Reduced Fee Services Program are available for newer attorneys who wish to participate while they are gaining legal experience. Please contact Carole Conn, LRIS Director of Public Service Programs, at 415-782-8934 or cconn@sfbar.org to learn more, or visit www.sfbar.org/lawyerreferrals/att-join.aspx.

3 mar ke tin g / b us i n e ss develo p men t

V olunteerin g

V olun t eer i ng The Justice & Diversity Center’s (JDC) Legal Services Programs (www.sfbar.org/jdc/ legal-services/index.aspx) provide pro bono legal and related social services to low-income and homeless San Francisco residents. JDC provides these services primarily through the use of volunteer attorneys. JDC takes a holistic approach to legal services, seeking to address the full range of legal and social services issues that prevent clients from retaining stability in their lives.

Ti p s on th e Justic e & D i v e r s it y Ce n ter o f B ASF

Becoming involved with JDC’s Legal Services Programs is an excellent way to gain experience as well as develop and hone your legal skills. Volunteering for JDC’s Family Law, Eviction Defense, and/or Consumer Projects provides you with extensive substantive law training, supervision and support from JDC staff, litigation experience and client contact, as well as introductions to attorney mentors. For more information about volunteering with JDC, email probono@sfbar.org.

3 mar ke tin g / b us i n e ss develo p men t

Pr / Media

P re ss R elea s e s / M ed i a Ti p s o n PR/ Me d ia fr o m B ASF

Working with the media can be frustrating at times and exhilarating at others. There is nothing better for your business than seeing your name and law firm in print, but there is nothing worse than seeing you or one of your attorneys misquoted. So how do you manage the message?

One of the keys to working with the media is to always be ready for that 10 second sound bite. It can be a quote, a statement of fact or an opinion, but it must be well thought out and to the point. This day and age, nothing is off the record (as you have seen when politicians are caught making comments in front of a live microphone). If you talk to a reporter or answer an email, assume every word that you have said or written will appear in tomorrow’s paper or on the radio. Always look your best, as a photo or video can be posted on Facebook or on YouTube instantly. Here are some other tips for working with the media: • Follow reporters on social media, especially on Twitter, as most reporters and publications have a presence here • Subscribe to local newspapers printed and/or online • When you post on social media, make your post one that will draw the attention of a reporter. For example, if you are an expert in a specific area of law and there is breaking news that relates to that topic, post something using the hashtag of the case name in question. This is one way a reporter might find you. • Work to become a subject expert or go-to person for information in your practice area • Introduce yourself to a reporter or editor at a social occasion and exchange business cards • Participate in seminars and workshops on media

3 mar ke tin g / b us i n e ss develo p men t

Pr / Media

How do you get yourself known in the legal community and generate a buzz around your practice? • Send out press releases (electronic, not paper) when your firm has news of importance • Write op-eds for newspapers or letters to the editor to get your opinion known (note that most papers limit the number of submissions in a year). The Recorder, for example, has a section in their newspaper called “In Practice” where attorneys are invited to submit areas in a substantive law, practice areas or law firm management. The contact for submissions is Vitaly Gashpar and he can be reached at vgashpar@alm.com. • Write articles for alumni magazines and blogs and bar journals • Start a blog and consistently publish at least weekly • Produce videos about yourself and your firm; videos are a great way to market yourself • Keep your website current and high on the search engine lists; consider hiring an SEO expert to help you with key word advertising If you have a busy practice and cannot handle the added work of public relations and social media, outsource that work. Here are some ways: • Hire a public relations or communications firm which specializes in the legal industry • Hire a contractor who can help you on an hourly basis or on a monthly retainer; this is a great way to get into the social media arena • Subscribe to a service which filters social media information and delivers to you a digest of important news and cutting edge topics And when a crisis happens to you or your firm, hire an expert! You may need to save your reputation, your practice, your clients and your future.

3 mar ke tin g / b us i n e ss develo p men t

Â Â Pr / Media

Here are some vendors to consider: Blattel Communications A full-service communications and marketing firm dedicated to the legal industry. They handle public relations, marketing and crisis communications and build PR and marketing plans which will give you a clear roadmap to follow. www.blattel.com Whittaker Communications Carl Whittaker has over 25 years of experience assisting law firms and non-profits with public relations and marketing matters. He provides focused, practical advice on public relations, positioning, marketing and communications planning, and website development. www.whitakercom.com Infinite Public Relations Offers professional services and litigation/crisis communication to companies in law, financial services, accounting, and consulting. They use creative storytelling, time-tested public relations methods, and knowledge of their clientsâ&#x20AC;&#x2122; businesses to effectively place them in top-tier, targeted publications and media outlets. www.infinitepr.com

3 mar ke tin g / b us . d e v e l o pmen t Spe aki ng Appe aran ces

Speak i ng A ppearance s There are many ways that an attorney can market themselves and their firm. Below, there are several resources on how to develop business, market your firm and sell your services. However, one of the most effective ways to sell yourself is to allow people to know who you are and how you stand apart from other attorneys in your practice area.

Ti p s o n S p ea k i n g A p p e a r an c es fr o m B ASF

If your goal is to develop business, you should be looking for opportunities to get in front of potential clients and/or others who might be in a position to refer cases to you. This can include speaking on specific areas of law; presenting on ways to solve problems (legal and pre-legal); teaching others how to develop an expertise in an area of practice, etc. Opportunities to speak and present exist in the following places: • • • • •

Metropolitan, local, and national bar associations For-profit continuing legal education organizations Non-legal trade and business associations Law school classes (be a substitute for one night for an adjunct professor) Community organizations such as elder centers, religious organizations, small business groups, etc.

Your target audiences are, 1) potential clients, and, 2) others (including lawyers) who can refer matters to you that they themselves cannot handle. People will remember you and refer cases to you based upon your presentation as an expert on a particular topic. These connections can also lead to other lawyers inviting you to co-counsel on a matter given your expertise in a specific area. Think of these speaking engagements as one-on-one networking on steroids! You have the opportunity to talk to potentially 100+ people at once about your skills, knowledge and problem solving ideas. The key is to remember that in every presentation you give you should provide the audience with examples of how you have solved “real” problems with your skills and knowledge.

3 mar ke tin g / b us . d e v e l o pmen t Spe aki ng Appe aran ces

Your goals in making speaking appearances: • • • • • • •

Show others you are a knowledge expert in particular area of law Show others how to solve problems in a particular area of law Teach others how to become a knowledge expert Answer questions Connect with the audience Engage the audience where appropriate Impress the audience so they will hire you as their lawyer and/or refer a client, family member or a friend to you; or ask you to co-counsel in a case with them

3 mar ke tin g / b us . d e v e l o pmen t

mor e r es o urces

MORE RESOURCES Get guidance on strategies and tips on business development for your solo or small law firm. All articles are by David King Keller. “Rainmaker’s Mindset Mastering Motivation and Technique” http://tinyurl.com/RainmakerMindset “Making Time For Business Development: Making The Impossible Possible” http://tinyurl.com/FindingBusinessDevTime “The Art and Science of Selling“ http://www.amazon.com/dp/0470874368 “The Neuroscience of Stress Reduction How to Stay Centered-Aware-Resourceful” http://www.kbdag.com/SiteResource/Site_108939/Customize/Image/ PDF-4.pdf “Major Benefits of the Micro-Break” http://tinyurl.com/Micro-BreakBenefits “The Optimal Performance State and How to Create It” http://tinyurl.com/OptimalPerformance “Network Like A Pro” http://tinyurl.com/NetworkLikePro “Social Media For Lawyers” http://tinyurl.com/SocialMedia4Lawyers “Branding Yourself Online” http://tinyurl.com/BrandingYourselfOnline

cha p t e r 4

T THE NI

T h e pr act i c e o f l aw

GRITTY

nce you’ve set up your law firm, now it is time to practice law! Much of that is beyond the scope of this Toolkit, and beyond the scope of the books and other materials referenced at the beginning of this outline. But here are some basic insights on getting started, and some resources we hope you’ll find useful.

4 th e pract ic e of l aw

pr acti ce area s

choo si ng y our practice areas E ri c T o scan o

If you don’t yet know what type of law you wish to practice, I would follow Jay Foonberg’s advice and be a general practitioner for your first six months to get a better sense of the practice areas you enjoy the most. Ultimately, focusing on two or three practice areas is probably a good idea. (see page 3 of this Toolkit for information about the book)

4 th e pract ic e of l aw

clie nt acceptan ce

C l i en t A ccep tance Ensuring that a client is going to be a good fit for you is important. You should not accept every opportunity that comes matt your way, even if you are first starting out. One of the most g l uc k important questions is whether the client is going to pay your bills. Many more people want legal services than are willing or able to pay for them. There are a variety of ways to try to gauge whether a potential client is a potential paying client – one item is to ask for a reasonable but substantial retainer up front, and see how the client responds. If you get pushback on a retainer that represents only ten hours of your time, you might interpret that as a red flag. You also want to avoid situations where a client is likely or certain to be unhappy with your work. This can arise when a client has unrealistic expectations about what you can accomplish or what the engagement is going to cost. I recently declined an engagement where there was only $15,000 at issue. I felt that it was very likely that I was going to have to charge at least the amount or more, and after several conversations, I did not think that the potential client recognized that reality, and that she was going to be unhappy with the outcome of the engagement. Even if she paid the bill (and I thought it was likely that she would not), you don’t want an unhappy client or former client.

4 th e pr acti c e of l aw

cl i e nt accep tan ce

MORE RESOURCES “Screening Clients” by Spojmie Jasiri cclawyer.cccba.org/2012/07/screening-clients/ Via Contra Costa Lawyer Whether you are a seasoned attorney or new to the legal profession, you can never be too careful in creating a systematic approach to screening clients. Establishing and implementing an effective client screening system can significantly reduce the risk of a grievance or malpractice claim. BASF’s Attorney/Client Fee Dispute Program see page 59

4 th e pract ic e of l aw

sample docs / r e search

Sample D ocumen ts / Rese archi ng the Law E ri c T o scan o

The Rutter Guides in Westlaw and the Matthew Bender Guides (as well as California Forms of Pleading and Practice) in LexisNexis both provide many excellent sample documents.

The San Francisco Law Library offers free access to Westlaw/ LexisNexis in hour-long intervals. It is an excellent resource and probably sufficient for an attorney just starting out. I looked into plans with both Westlaw and Lexis. Although I had always used Westlaw, I ended up getting a plan with Lexis due mainly to the steep discount they offered me as a new solo.

MORE RESOURCES “Legal Research” by Kristen Bargmeyer cclawyer.cccba.org/2012/07/legal-research/ Via Contra Costa Lawyer Are you looking for a good value in legal research? We all need information and for those of us watching our overhead, legal research databases can be prohibitively expensive. Luckily, there are some legal research resources that can help a solo or small firm get the information they need for less.

4 th e pract ic e of l aw

Tip s o n S am p l e D o c u m e n ts a n d L e ga l Res ea r ch f r om B ASF

sample docs / r e search

LexisNexis California Judicial Council Smart Forms

BASF members receive free access to over 1,000 Smart Forms, including California Judicial Council Smart Forms and California County Forms. www.sfbar.org/membership/benefits_tools.aspx

It’s a quick, easy way to assemble the latest forms, featuring a fillable, tab-through format; documents can be saved as PDFs. BASF members save on a wealth of other products and services from LexisNexis – including research, practice management, client development, and more. BASF membership is required to access Lexis/Nexis products and services.

4 th e pract ic e of l aw

et hi cal/ pr o f. r e spon sibil ity

Et h i cal / P ro f e ssi onal Responsibility d av id kin g ke l l e r

• Ethics CLE Online from BASF tinyurl.com/CLE-EthicalWaysToGrowPractice • BASF Ethics Committee Hotline: call BASF front desk for a referral at 415-982-1600 • California State Bar Ethics Hotline: 800-238-4427 or 415-538-2150

4 th e pract i c e o f l aw

l iti g ati on

l iti gation One of the most expensive but necessary programs that a litigator may purchase is rules-based calendaring software. The decision of which calendaring program to select is often driven by what D e e A. Wa r e integrates with the document management software that you choose, e.g., Time Matters integrates with LawToolBox and Practice Master integrates with CompuLaw. Other providers include Westlaw, Lexis and Abacus. However, rather than purchasing calendaring software or manually calculating dates, small firms also have the option to use an online calendaring service that charges a per case fee, such as Deadlines.com and LawToolBox.com. Deadlines.com has a basic pricing structure of $20/case/month for one to five cases or Preferred pricing of $15/case/month for six or more cases. LawToolBox offers two pricing options – a one-time per case fee and a monthly subscription rate. There is also an additional monthly fee to synch dates from LawToolBox into Outlook or Time Matters which varies based on the number of users. The synching feature is included in the monthly rate on Deadlines.com. Online calendaring providers suggest that per case charges can be passed on to clients. Before doing this, you should consider how passing on such an expense will be received as few, if any larger firms would directly pass on the cost of purchasing calendaring software.

4 th e pract ic e of l aw

l iti gati on

MORE RESOURCES “Storytelling & the New Media Jury” by Steven Thompson & Andrew Lloyd cclawyer.cccba.org/2012/07/storytelling-the-new-media-jury/ Via Contra Costa Lawyer In today’s courtroom, litigators’ paramount concern is keeping the jury’s focus on the facts and evidence introduced in a case. Static photos, flipcharts, chalkboards, foam core boards, and separate pages of documents will certainly help convey your points, but a modern jury expects and responds better to a more visual and dramatic experience. By riding the wave of multimedia presentation technology that is changing litigation in America, and by learning how it can apply to your practice, you will more effectively present your case in ADR, hearing, settlement conference or at trial.

4 th e pract i c e o f l aw

Re pr ese ntation Agr e em ents

R epre s en tation A greements You need to be familiar with the requirements in the Business & Professions Code that govern fee agreements and billing: Merri Business and Professions Code Section 6146 6149.5. Prepare B a l dwi n form fee agreements that comply with the statutory and ethical requirements and that are tailored for your practice and the type of matters and clients you expect to work with. The State Bar of California has sample form fee agreements that you can use as a basis for your own forms. www.calbar.ca.gov/Portals/0/documents/mfa/Sample-Fee-Agreement_%20r.pdf

4 th e pract i c e o f l aw

Attor ne y-C lie nt Fe e Dis put es

Att orne y- Client Fee Disputes Merri B a l dwi n

Try to avoid fee disputes with your clients through frequent communication; the use of detailed time entries on bills; prompt and regular billing; management of accounts receivable; and the collection of advance deposits towards fees. Fee collection matters often provoke legal malpractice claims, so try to avoid being in that position.

If you do find yourself in a situation in which you need to take action against a client for unpaid fees, make sure that you comply with the Mandatory Fee Arbitration Act provisions of the Business & Professions Code, section 6200 et seq. The Bar Association of San Francisco has good resources for both attorneys and clients, including the Notice of Client’s Right to Fee Arbitration that you are required to serve before you commence a fee action. www.sfbar.org/adr/feedispute.aspx

BASF’s Fee Dispute Program began when the Mandatory Fee Arbitration Act was enacted in 1978. This program provides a means for attorneys and clients to resolve a fee dispute and avoid the time and expense of taking a dispute to court. At issue is the amount of fees and/or costs the client must pay, or has already paid, to the attorney. www.sfbar.org/adr/feedispute.aspx

A Ti p A b o u t Att or n e y- Cl i e n t Fee D i s p ut e s F r om B ASF

appen d i x

append i x

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mi nd t h e gap

Mind the Gap Offers Opportunities for Under/Unemployed Attorneys 2013 BASF President Christoph Kearney, Keker & Van Nest, announced one of his initiatives at his installation on December 11, 2012, that focuses on attorneys in their first few years of practice, or those in transition. The initiative, titled Mind the Gap (MTG), is a play on words for attorneys to not get lost in the gap between law school and practice, or big firm and solo practice. The goal of the Mind the Gap Initiative is to provide recent law school graduates who are unemployed or underemployed with training, work experience, mentorship and debt reduction information. This initiative consists of five key components. These include: 1. Training: Practical/lawyering skills training, as well as information regarding starting a practice. 2. Experience: Hands-on experience with the Justice & Diversity Center (JDC) case work. 3. Mentoring: Mentoring from JDC staff attorneys and other volunteers, including alumni networks. 4. Connections: Networking and connecting with firms for potential contract or other legal positions. 5. Debt Reduction: Debt reduction information and seminars. A monthly electronic newsletter is sent to MTG participants, which includes the latest information on the key components, as well as â&#x20AC;&#x153;Trendingâ&#x20AC;? information such as jobs, announcements and articles of interest. An archive of past newsletters [www.sfbar.org/mind-thegap/mtg-resources.aspx#enews] can be found within the MTG webpages. [www.sfbar. org/mind-the-gap/] Want to participate? Email mindthegap@sfbar.org. Want to become a mentor? Email mindthegapmentor@sfbar.org.

a ppend i x b acknow le dgem ents

The Bar Association of San Francisco (BASF) gratefully acknowledges the following people who were instrumental in the preparation of this Solo/Small Firm Toolkit: Merri Baldwin Rogers Joseph O’Donnell

Rosa Vigil-Gallenberg The Gallenberg Law Firm

Marina Sarmiento Feehan Positive Counsel

Dee A. Ware Ware Law

Pam Fulmer Novak Druce Connolly Bove & Quigg

BASF Staff Carole Conn Kerstin Firmin Sayre Happich Yolanda Jackson Leonard Lun Mairi McKeever Ann Murphy Emmy Pasternak Susan Salkind

Alicia Gámez Law Office of Alicia M. Gámez Matt Gluck Law Office of Matthew J. Gluck David King Keller Keller Business Development Advisory Group Otis C. Landerholm Landerholm Law Office Mark L. Lasser Lasser Law Office Margaret Murray Law Offices of Margaret E. Murray Eric Toscano Toscano Law