The most valuable assets to any practice are the lawyers that make up that practice. It sounds basic, but can be easily overlooked and underestimated. Everything you need to be successful is in your reach, but you must reach out to get it. What follows are my top ten recommendations for starting and maintaining your own practice. Naturally, every lawyer envisions a different practice, has different experiences, expectations and tolerances. Some lawyers want a few good clients, others want as many clients are possible. Any of these tips can be tailored to meet your needs and, by all means, are only beginning suggestions.
This article also assumes that you have decided the type of practice you want to maintain, have narrowed the fields of law you want to focus on (not too narrow, but not too expansive so that you get involved in situations that you are unfamiliar with and can make costly mistakes in time or law) and are approaching the experience with an open and positive attitude.
No. 1 Tip: Let Everyone you Ever Knew or Wanted to Know Know!
Starting and maintaining a law practice is like any other business, it depends on selling product and getting clients. It goes without saying that your product must be good, but even a good product will never get utilized unless people know about it. Moreover, you absolutely never know from where you might be securing your first or next good client. They sometimes come from the least expected and weirdest places. "someone else says this attorney is good." In mining your contacts, reach far and wide. The best clients usually come from referrals, as they have an immediate comfort level:
- Mailings: Everyone you Ever Knew
When I started my practice, I sent out a mailing to everyone I ever knew since elementary school, my friends' friends, my relatives, everyone I had ever worked with anywhere, my former adversaries, regulators, etc. Anyone I could think of. I sent these mailings, not once, but every time I had a shred of news. Mailings can include announcements about your practice, holiday cards, articles you authored or are quoted in, notices or other information about the law or your practice. I still send out several mailings a year. - Alumni & Reunion Services: Everyone you Wanted to Know
If you do not have the names of everyone you remember from school (or even if you do), there are alumni an reunion services like Classmates.com, which have message boards and send out mailings, have local reunion and alumni events. Go to these events and participate. When you are starting a practice, you have some time, use it to get your name out there. - Telephone, Organizations & Lunch: Talk to People
Friends, family and colleagues want to help you, let them. In order to help them help you, you need to get your message out to them. You need to engage them in what you are doing. Everyone is very busy today, but if you call someone, or meet them for lunch, you can get them excited about what you are doing and they will be more motivated to help you. Moreover, you are making sure they remember you and know what you are doing. They may also have helpful suggestions. Listen to what people have to say and decide for yourself. Similarly, showing up at industry seminars, meetings and parties will help you get re-acquainted with people not in your "inner circle," but who might want to be. Further, call people who you deem to have succeeded, meet them for lunch, coffee or just a short visit at their office if they are too busy and pick their brain. They will more likely than not be willing to help.
Tip No. 2: Get Involved
Get involved in trade organizations as much as possible. Go to meeting at the New York State, City or County bar associations. Join sections dedicated to the work you do and volunteer on projects. Take an interest in advancing the interests of lawyers similar to yourself and you will develop strong new allies. From these people you can be the recipient of wonderful referrals, especially when client conflicts arise. Lawyers want to refer cases to people that they know will handle the matter with the care of a person dedicated to the type of law that they do, as well as someone whom they feel personally comfortable with in doing so.
Tip No. 3: Get a good website
Websites are important today and can serve three purposes:
- Show Who You are and What You Know
A website today is like a good business card. It gives the client something to look at that describes your practice and you. Moreover, depending upon how much information you are willing to share and how much time you are willing to devote to developing the site, it can give the client an indication about your methodologies, style and acumen. It feels to a client like something concrete that they can hold on to. If you do not like talking about yourself or answering questions about your experience, a good biography section can help you avoid awkward questions by informing the client before you even meet them. Getting clients in the door is step one, keeping them there is step two. - Generates Business
A website will likely not generate business on its own; however, there are definitely services available to promote your site. Companies like FindLaw provide these services, as do technology firms at various sizes. They will even create websites for you at minimal time commitment or you can create a listing to refer people to or where people are searching for lawyers. However, if you do advertising, being able to list a website will increase the value of any advertisement, as people are drawn to going to websites over just making a call blindly. - Case Management
A website can also help manage your practice. It can provide information about the progression of the types of matters you handle, so that clients have a foundation before and after you meet with them that will, hopefully, lessen the need to repeat yourself and start from "square one" with each client.
Tip No. 4: Advertise Wisely
Advertising can be a useful tool and will depend upon the type of business that you maintain. While the yellow pages may be good for personal injury lawyers, it may not be great for corporate lawyers. However, corporate lawyers may do well advertising in the Wall Street Journal. It is all about finding your audience.
Look at what your colleagues are doing and try different things. Don't sign long term contracts blindly, do negotiate with advertising salespeople and don't be afraid to ask questions of them and your colleagues. Different things work for different people.
Tip No. 5: Join Bona Fide Referral Services
The New York City and New York County lawyers associations maintain a great referral service: "Legal Referral Service." Other organizations also maintain referral services and lists of lawyers, such as AARP, Public Investors Arbitration Bar Association and others.
While you may not support your entire practice with these services, developing a practice is the product of many lead sources.
Tip No. 6: Be Ready for a Rough Start
Unless you are very fortunate, it takes time to build a practice, so build your support system. Have some money saved up to get you through tough periods and get your cheerleaders ready. It takes courage to start a practice and if have made it to this step, congratulate yourself.
- A Story from the Trenches
I had no plan to start my own practice. I was a securities lawyer or about eight years before starting my practice. The firm I was at was downsizing and I took a modest package. I took a few months off, and then I did some work with the City of New York at the request of a friend that needed help when the City was going through the police brutality scandals.
I knew one thing: I never wanted to work at another law firm again. My experiences were not awful, actually, I had a lot of freedom at the last firm that I worked at, but I knew I needed more freedom.
Clients and colleagues started calling me about work (my first matter yielded me less than $1,500- I was thrilled). A friend at the time suggested that I start a practice. Influenced by the power of suggestion, I said "why not." I rented a desk at a larger office for $750 and off I went. My planning was over several weeks -- I simply jumped in the pool feet first, so to speak. The first year (which was half a year); I believe I earned about $30,000. Clearly, I did not live off of that, I lived off a meager savings and meager severance, as well as still paying student loans amongst all my other bills. This is why you need to be prepared; however, I never looked back and have done (much) better every year consistently.
- Keep Overhead Low
To manage the rough times, it is necessary to keep your overhead low. Find shared space and use your advertising and marketing dollars wisely. Start small and modestly, you can always upgrade your practice. Clients and colleagues will understand if you do not start your practice at the Trump Towers. While it is likely important to find a good working space, do not over commit yourself.
Tip No. 7: What you Know: Experience, Models and Reality
I saw few people start a practice right out of law school and even fewer succeed at that. Personally, I believe you need to gain experience, not only legally, but from a business perspective, by watching and learning other lawyers before starting a practice.
Prior law firms I worked for had different business models. For example, at one small general practice I worked at, it maintained a community base and did things like send out yearly small token gifts to clients to keep the firm in the clients' minds for friend and family referrals, repeat business, etc. That firm refers me business still today. I am highly specialized, they are not. When they have a matter in my area, where they do not practice, they send it to me. Other firms I have worked at sent me cases that they could handle, but had conflicts between clients. It is not always possible, but it is best not to bum bridges, but to maintain good contact with all the lawyers you know, good sources of referrals.
Other firms I worked out focused on being in the press and speaking at seminars, as well as sending out newsletters. Again, you need to tailor your business model to your desired client base. In either case, you need to keep yourself open minded and flexible. You will likely have to make changes to the types of clients and matters you are handling, at least in the short term. In any event, your goals need to be realistic.
Tip No. 8: Be Prepared to Work Hard
As I stated above, you may not get paid a lot in the beginning, but get ready to work a lot. Eight hours will not be enough. Working for yourself, at least in the first few years, is the hardest job you will ever have. You will have many roles:
- Salesperson:
As stated above, it is your job to sell yourself or create an environment where others will do it for you. You need to bring in the business and then execute the business. - Lawyer:
You need to execute the work, very well. - Manager:
You will be in charge of managing your office: finding an office, getting malpractice and liability insurance, calendaring everything, conflict searches, retainer agreements, updating retainers and hourly rates, ordering supplies, managing phone calls and sifting through mail and e-mails, as well as billing for the work. Never let a client get too far in the hole, or you will be digging yourself out of it. Be prepared to spot and get rid of problem clients. - Book-keeper:
You will be in charge of managing client funds, escrow activity and tax issues.
Tip No. 9: Get Help When you Need It
At some point, you will probably have a difficult decision: do I want to do all the work and make all the money or pay for someone to help. Get someone to help you; it will increase your profits and personal life in the long haul. You will need help at some point and help can come in many forms:
- Part-Time Help
Start small and start with part-time help. Try not to spend money on head hunters from the outset, but ask friends and colleagues for references. If you are not successful that way, headhunters can be helpful. - Interns and Work Study
Law schools and colleges are eager to get their students working. They sometimes contribute to the hourly rate you pay the student through work study programs. Mine these opportunities. Do not feel uncomfortable calling career service office to make postings, get resumes and even for direct referrals from the work-study or career service offices. This help can be effective, as students are very eager, and cost-effective. It is very important to screen a number of candidates until you feel comfortable with a student that seems committed to the job. The best candidate is no necessarily one with experience, but the on who wants the job the most. - An Associate
When you are ready, an associate is a great asset. You will have more time to go out and get more business. The associate can help you do the work. Even a first good draft can really move your practice along and help your regain the life you lost building your practice.
Tip No. 10: Be Good to Your Clients
Be good to your clients. Give them freebies, discounts and kind words. Clients pay your bills. They are also your future. They have friends and colleagues. Treat all your clients with the same level of service and respect, whether their matter is large or small, as you never know who they know that may need your service. More importantly, though, it is the right thing to do.
One caveat: on occasion, you will be confronted with a new or existing client that is giving you a bad feeling, a hard time or some other issue. Make the hard decision to turn the client away or transition the client in a reasonable and documented manner to another attorney. You do not have to take every client. Sometimes personalities do not match in a material way, or the client does not respect you enough to pay you. There will be more clients, no matter how much you may feel you need the one that is giving you the headache.
Starting my own practice changed my life and changed me. It took time, but I now have a better quality of life. It also made me stronger as a person and as a lawyer. Having the ultimate responsibility for everything and meeting that responsibility is a wonderful feeling.
HELPFUL LINKS:
INDUSTRY & GOVERNMENT LINKS
US Small Business Administration
26 Federal Plaza
New York, New York
www.sba.gov
www.sbaonline.sba.gov
www.business.gov
Workshops, Seminars, Pamphlets & Development
Assistance for Funding and Expanding
212-264-4354 General Information
212-264-4507 Business Counseling
212-264-1481 Loan Assistance
212-264-9487 Marketing & Consumers
212-264-4322 Minority Business
212-624-1481 Women's Business
U.S. Dept. of Commerce
www.doc.gov
NYS GOV'T INFO LOCATOR
1-800-732-7232
212-417-4000
http://Dos.state.ny.us
NYS Division for Small Business
Department of Economic Development
212-827-6150
www.dos.state.ny.us/corp/corpwww.html
NYS Small Business Referral Service
212-618-6618
NYC Commercial Property Leasing
212-863-5000
Consumer Fraud & Crime Victims
1-800-771-7755
NYC Department of Consumer Affairs
212-487-4444
http://www.ci.nyc.ny.us/consumers
BANKING, FINANCE & LOANS
NYS Banking Division
http://www.banking.state.ny.us
NYC Department of Finance
718-935-6000
http://www.nyc.gov/finance
INSURANCE
NYS Department of Insurance
http://www.ins.state.ny.us
LICENSING & PERMITS
1-800-342-3464
NYS Licensing
42 Broadway, 5th Floor, NY, NY
212-487-4436
MARKETING DEMOGRAPHICS
http://www.fedstats.gov
PRESS RELEASE COMPANIES
http://www.prnewswire.com
http://www.businesswire.com
http://www.mediainfo.com
NEWS RESOURCES
http://newslink.org
http://www.ajr.org
http://www.wsj.com
http://www.nytimes.com
SITES FOR WOMEN IN BUSINESS
Nat. Organizations for Women
http://www.now.org
http://www.nownyc.org
http://www.womenonwall.com
NYS Division for Women
212-681-4547
NYS Human Rights Division
Sex Harassment Hotline
1-800-427-2773
NYC Commission on the Status of Women
212-788-2738
http://www.nyc.gov/html/csw/home.html
NY Women's Bar Association
212-752-5544
EMPLOYMENT ISSUES & DISPUTES
US Equal Employment Opportunities Commissions (EEOC)
1801 L Street, NW
Washington, DC 20507
http://www.eeoc.gov
202-663-4900
US Department of Labor
http://www.dol.gov
Statistics
212-337-2400
Workers' Compensation
1-800-347-1997 General Information
Unemployment
212-306-7500 General
212-306-7686 Discrimination
212-No2BIAS Bias Complaints
http://www.oag.state.ny.us
Equal Employment Practices Commission
212-240-7902
Department of Labor
212-416-8700
http://www.labor.state.ny.us
NYC Human Rights Division
40 Rector Street
New York, New York
212-306-5070
http://www.nyc.gov/html/cchr/html/main.html
(click on Human Rights Division in Agency List)
HUMAN RESOURCES TRAINING
www.fairmeasures.com
TAXATION ISSUES
US Internal Revenue Service
http://www.irs.gov
1-800-829-3676 Forms
1-800-820 Information
NYS Department of Taxation
http://www.dos.state.ny.us
1-800-641-0004 Real Estate Taxes
1-800-462-8100 Income Tax Forms
1-800-225-5829 Income Tax Information
1-800-443-3200 Refunds
NYC Department of Finance
http://www.nyc.gov/finance
Business Tax Forms
1-718-435-6739
1-718-935-6000 Information
SMALL BUSINESS CHECKLIST
Questions To Answer Up-Front:
- Have you made a Business & Marketing Plan?
- Have you Chosen an Accountant & Bookkeeper?
- Have you Chosen an Insurance Agent?
- Are you looking at Commercial Real Estate Leasing and do you know what is negotiable?
- Do you have the Necessary Licenses to Operate your Business?
- Do you have or anticipate Employees?
- How are you going Protecting Yourself and Your Business?
- Are Your Trademarks & Servicemarks Registered?
- Is Your Work Copyright Registered?
- Are Non-Disclosure Agreements in Place?
- Do Non-Competition Agreements Expire? When?
- Do you have Agreements with your Clients and other Businesses to Insure you Get Paid and Don't Get Ripped off!
- What are Your Financing Obligations?
- Have you though about Start-Up Incentive Programs?
- What Are Your Client Deadlines?
- Have You Documented Your Work & Client Contacts/Issues?
- What Supporting Documents Do You and Others Have?