MyShingle : Solo and Small Law Firm Management and Marketing

Last week, Larry Bodine posted here on a New Jersey ethics ruling that allows a law firm to own another law firm as a wholly-owned subsidiary.  I haven't had time to read the decision closely or focus on the implications, which I believe are mixed, but here is Larry's view on what the decision could mean:

    • Law firms can buy and sell other law firms as investments.

    • Law firms can hire a pinpoint boutique to handle a spike in client demand, and then sell it off or shut it down when the demand falls off.  The owner firm wouldn't have to fire any of its own staff, as happened when the technology bubble burst.

    • The owner law firm can acquire a smaller firm without having to charge big-firm rates or pay big-firm salaries.  A large firm could own, for example, an insurance defense firm, pay the lawyers bottom dollar, and be able to bill out at $100 an hour.  This means big law firms won't leave money on the table.

    • Owner law firms can acquire less glamorous practices, like collection law firms (which are very profitable and make a 40% commission on debts collected) without having to sully its own reputation.  This can be very handy when the big firm has a bank as a client, and is happy to do its securities and acquisition work, but doesn't want to foreclose on mortgages.  It makes the owner law firm a full-service firm.

    • Big firms can get into profitable areas they won't touch now - like matrimonial law and plaintiff's personal injury law - without having to have their own lawyers do the work.  Of course, the subsidiary PI firm would be conflicted out of suing clients of its owner.

    • Law firms can market themselves like General Motors, and have separately branded divisions, like Cadillac, Chevrolet, Pontiac and  Buick.

    • Or, law firms can market themselves like General Mills, with individual brands like Betty Crocker, Pillsbury, Green Giant and Häagen-Dazs.

So what's the value for solos...?

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Dan Hull highlights this great compliment from a client that came to him via Patrick Lamb.  "We don't have their phone number, we have their DNA" is the compliment.   Though some of use might prefer a hefty monetary bonus  for excellent service, let's not forget that this kind of endorsement (particularly one making its rounds on the blogs) is worth its weight in gold many times over with the referrals and future business that it will help generation.

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Why is it that when small firm attorneys represent court appointed indigents at rates equivalent to one third of market that the work is not classified as "pro bono," but when a large firm takes a bath on fees for representing the former governor of Illinois, an ABA committee chair recognizes that as pro bono?  Why is it that when a solo lawyer runs a blog on some aspect of legal practice that provides first rate substantive information at no cost (as in here or here or here to name a few of dozens of examples) it's called marketing, but when a large firm provides substantive information at no cost, it's deemed pro bono?

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Eight months after Hurricane Katrina, the legal community remains affected by these types of impacts.  But lawyers have not forgotten their Louisiana colleagues.  Efforts include those by the Indiana Bar , which held its spring getaway meeting in New Orleans and this free technology assistance offered by several bar associations to assist Louisiana attorneys and firms in rebuilding its practice.  Ernie the Attorney will be speaking at the second event which he describes as being aimed at solo and small firm attorneys.

MyShingle would love to hear from Louisiana lawyers impacted by Katrina to learn more about whether you've made it back on track.  If you'd be interested in guest posting, please email me at carolyn.elefant@gmail.com.

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What do romance novelists and new solo lawyers and bloggers have in common?  All have within them the potential to catapult to success as the result of Internet technology.  Whereas back in the mid-1990s, the Internet and the dotcom boom turned many ordinary folks into gazillionaires in unbelievably short periods of time, today the Internet is now responsible for taking some writers - and potentially lawyers - who toil in obscurity - and   making them stars as reported in this article, Romance, Writ Large from today's issue of the Washington Post.  Listen to this story from the article:

Here again, technology has had an impact. MaryJanice Davidson, a 36-year-old Minnesota writer, described her career as going "from the trailer park to the New York Times bestseller list in zero to 60." She had been trying to sell her manuscripts since she was 21, and "was tired of being told that no one was interested in paranormal or really sexy books." So she turned to e-publishing. Her first book, "Adventures of the Teen Furies," was a young adult fantasy about a group of teenagers who were into gaming and their gaming personalities took over. It was published by e-book publisher Hard Shell Word Factory. "Little did I know," Davidson said, "that the New York publishers were keeping an eye on the e-books." In 2003, Cindy Hwang, then senior editor for Berkley Books, read  Davidson's novel "Undead and Unwed" online and called her, seeking to  buy the print rights and offering her a three-book contract. It was, Davidson acknowledges, "like winning the lottery." The series, which has transitioned into hardcover, is about a secretary named Betsy Taylor who, in Davidson's words, "is turned into a vampire and fired on the same day. She has to find a new job and figure out where she is going to live. . . .

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It's one thing to go solo with a portfolio of business, but quite another to start from scratch.  Yet, many lawyers, including me, have started firms without any business to speak of.  And this article, Solos' First Step: Converting Contacts into Clients , Douglas S. Malan The Connecticut Law Tribune (April 27, 2006) shares stories of how other lawyers found their first client.  One recent grad, Matthew Brovender, built a practice through referrals that he generated as a result of a contacst he met through a judicial clerkship.  He's also got a pen with a great tagline: "The call is free. Will you be?"
Other solos have milked contacts and experience from their earlier career lives, such as formal social worker turned lawyer, Laura Caldwell-Gaines or from serving as pro bono counsel to a youth hockey team, for Eric Opin.

How did you find your first client?  One of these days, I'll share my own story.

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Like Barry Kaufman, I'm a huge fan of the law library and recognize that it's an indispensable tool for solo practitioners.  Which is why I'm thrilled to be able to offer this Guest Post, Eight Reasons Solo Lawyers Should Use Law Libraries  from Mary Whisner, the assistant librarian for reference services at the Gallagher Law Library of the University of Washington School of Law.  Mary also runs Trial Ad Notes, a blog about trial advocacy. 

Eight Reasons Solo Lawyers Should Use Law Libraries

One. Librarians.

    * Libraries employ people whose job is to help you use the library and figure out your research puzzles. Law librarians specialize in legal materials and the needs of legal researchers. Many are legally trained. We keep up with new sources and techniques and can often save you hours in your research. What's more important to you than your time?

    * Librarians also create online guides to help you with your research. See my library's collection of guides, for instance. So we can help you with your research without ever meeting you - even at 2:00 a.m., if that's when you're looking for some research pointers.

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Talk to any solo, and invariably, he or she will share a story of a client from hell.  You know who I'm talking about:  the one who won't pay the bills, who calls at all hours, who wonders why a 20 page motion took 10 hours to draft or who complains about how lawyers are money grubbers.  But just as troublesome as the client from hell are the clients who are your pals.  As I describe below, it's these guys, the friendly clients, who pull you in too close, to the point where you may compromise your professional judgment.  And then these clients who you thought were friends and colleagues revert back to ordinary clients, they'll be the first to turn on you when you need their support.

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Human Lawyer, a UK Blogger, posts about an article by Susan Singleton in this quarter's issue of the Solicitors Sole Practitoners Group Quarterly Magazine that talks about how to save money off big legal publishers and stay current with developments in your field."  The list includes these tips:

    * Subscribe to nothing unless there is a major business case for it
    * Write for as many publications as you can
    * Join relevant legal committees for areas where you are involved
    * Never buy any product which is free or available on the internet elsewhere
    * Do not assume that because another firm or many firms have a product that a sole practice "has to have it."

This list works well for my energy regulatory practice, which subscription fees can be exhorbitant.  But I've managed to avoid paying out money in part because I've done many of the things that Singleton recommends.

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Solo Janell Grenier celebrated her Third Blogoversary over at Benefits Blog and shares her impressive visitor stats, though not her secrets of how she's managed to keep up her efforts for so long.  Benefits Blog's popularity does not surprise me.  Even though I know nothing about "tax, benefits or ERISA," the subject of her blog, I can tell that her site is incredibly thorough and packed with substance and often, I read it just for the pleasure of the analysis and the obvious effort that goes into it. 

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The ABA GP Section just posted a list of quality of life resources that offer information on work-family balance, de-stressing and some silling "time wasters."  In the three years that I've been blogging MyShingle, I've noticed a proliferation in work balance resources, but not much improvement on the part of lawyers to strike a better balance.   So while these resources are important, the next step you need to take is to stop reading or thinking about a better balance and start taking action to achieve one for yourself.

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Rob Robinson summarizes the list of 60 Marketing Tips in 60 Minutes from an ABA Techshow presentation.  I've used many of these tips with success (like niches with riches) and others, I know I should be using, like following up after speaking engagements or improving my Power Point skills.  Finally, some of the tips, like marketing at trade shows have never worked for me.

I realize that the list is a bit superficial, but it's a summary, after all.  Readers, do share - which of these tips have worked best for you or alternatively, proven ineffective?

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Gender disparity at large firms is not unique to the US; our colleagues down under in New Zealand share these problems also, as reported in Flexible work practices avoid gender disparity (April 21, 2006); NZ Lawyer Issue 38.  According to the article, women comprise over a third of all law practitioners, but less than 20 per cent of partners are female.  (which may be a better record, proportinally, than the US). 

The same problems plague New Zealand's women attorneys; long hours make it difficult to balance work and family.  But at least, the New Zealanders recognize a practical alternative (as opposed to many in the US who overlook the most obvious solution of starting a firm):

Practical alternatives to the burden of meeting chargeable time expectations include starting up a law firm with like-minded partners or becoming a sole practitioner or barrister. North Shore law firm Lewis Callanan is managed exclusively by female partners. Partner Rowena Lewis stated that managing a small law firm provided greater flexibility and the ability to opt out of overtime. She succinctly summed up the firm's view on working hours: "I don't do weekends". If she works less, she earns less.

Maybe it's time we look to see what other countries are doing to address gender disparity here.

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A Texas solo is missing, according to this Texas Lawyer article (4/20/06), State Bar of Texas Steps in After Solo is Reported Missing.  According  to the article, 

Britt Hall, a Houston solo, has not been seen since Jan. 3, according to a private investigator who is searching for him. And State Bar officials say Hall has not been to his leased law office for months.  While those close to the 41-year-old lawyer are worried about him, some of his clients are angry.

The State bar disciplinary commission has now taken over Hall's practice to protect his clients from any prejudice; it is not a disciplinary matter.

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This article, Blogs Continue to Multiply reports that currently, there are 35.5 million blogs, 60-75 times more than were online just three years ago, with 75,000 new ones born daily.   In some ways, it seems like information overload - who could read so many blogs - but I still think the trend bodes well for forward thinking solos who've jumped on the trends.  Penetration of blogs means that more members of the public seeking legal services will seek out blogging lawyers because they understand the value of the resource that they provide.  Also, as blogs expand, they do so not just horizontally, i.e., covering more topics, but vertically, more depth of coverage of topics.  Thus, we see not just one PI Law blog, but multiple local PI based sites; readers can choose some or all that they want to read.  Even with solo practice, there's another blog born, if not every minute, than almost every month it seems.  (see here) My point here is don't let the number of blogs frighten you from jumpng into the fray.

Hat tip to reader and solo legal research and writing attorney Lisa Solomon for the story.

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Readers, you may have noticed that MyShingle has been a little bare recently.  The low post volume was the result of a major matter that I just completed and also, a week away from the office in Las Vegas, both business (speaking at a conference) and pleasure (family spring break vacation).  Though the artificiality of Las Vegas made it easy to forget the office for a while, I couldn't help but notice all kinds of marketing lessons as I wandered along the Las Vegas strip.  I lost about $15 gambling but gained lots of little marketing nuggets that I'll share with you now.  So here it is - Lessons from Las Vegas on Lawyer Marketing.

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It's finally spring in the DC area, the weather is warmer, the azalea's are blooming and so are the new solo blogs.  This time, it's Ben Cowgill, who already blogs the content laden Legal Ethics who's started up Solo Blawg, a weblog for lawyers in solo and small firm practice.  Ben asks "Is there room in the blogoshere for another blog about solo practice?"  He says absolutely, and I agree.  I have always said that there's no one single way to start a successful solo practice and there's no one single way to blog about solo practice either.   Reading each solo blog (like here and here and here) you get a sense of each solo's personality, interest and passion; each blog voice is distinct and individual, in contrast to the cookie cutter sound of biglaw sites like this or this or this or this or, well, you get the idea!).

So, let the April azaleas bloom and let one thousand solo blogs bloom!  I'm glad to be here at MyShingle, in the thick of it all.

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So, you want to work in public interest, but can't find a position or afford to take one?  Why not start your own firm instead, with a public interest firm on the side?  That's what Scott Levine of Aegis Professional Services did as reported in this article,  Scott Levine Fulfills dream of starting public interest firm, Gail Appelson, St. Louis Post Dispatch, (4/13/06).  The operation is a combination of a law firm that provides one stop shopping for entrepreneurs (at reasonable rates) and the Stetin Center, a public interest entity to be funded by donors and staffed by law firm attorneys and volunteers. 

If you've always dreamed of a public interest job, you don't need to give up on the dream because you don't think you can afford it or because your present firm doesn't approve.  Build a firm like Levine and create those opportunities for yourself.

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There's some nice press here for fellow solo and blogger, Hoosier Lawyer,  Steve Terrell.  Formerly with big law firm Ice Miller, Terrell has opened his own firm, with this mission:

Justice, like quality legal services, should not be only for big corporations and those who can afford the highest-priced lawyers from the biggest firms. During my 13 years in a 200-plus lawyer firm, one of my partners had a Scale of Justice in his office. He placed a roll of dollars on one side of the scale, and tilted the scale in that direction. It was something with which I was never comfortable.

The Pledge of Allegiance ends: "with liberty and justice for all." I believe that this should be the objective of our legal system. It is the objective of this law firm.

How many of us have started a firm with that mission in mind?  Take a look at the article about Steve and what else he has planned for his new shingle.

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This month at Law Practice Today is a roundtable discussion on whether it makes sense for law firms to outsource.  The discussion seems geared for larger firms and talk about outsourcing support staff functions as much as legal research and traditional contract lawyering.  The issue has another article by Ed Poll on choosing a virtual assistant. Also on the topic of outsourcing, I'm looking forward to hearing more from one lawyer who just might be the Greatest American Outsourcer on his experiences with his successful virtual law clerk program.  State tuned.

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Between Lawyers has this discussion over whether lawyers should advertise by voice. 
Dennis Kennedy writes:

It does make sense. If you are hiring a lawyer for his or her advocacy skills, wouldn't you ideally like to hear (or see) some examples of the lawyer in action? Event planners routinely ask for samples from prospective speakers.

Has anyone out there gotten hired as a result of an online voice sample?  Write in and let me know.

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I could not resist posting this photo of my very own cheerleaders for solo practice.
 

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I have a feeling that the state bars will be a little less busy reprimanding lawyers in Staten Island for unprofessional conduct after the decision reported in $2M award yanked after lawyer's theatrics go too far, (Staten Island Advance 4/7/06).  Now that lawyers know that unprofessional remarks can cost them and their clients money, they ought to have a financial, if not ethical, interest in controlling themselves in the courtroom.

Was the judge's action an appropriate response?  Should he have penalized the client so severely for her lawyer's actions?  Or will the judge's decision help to show clients that an overly aggressive lawyer isn't necessarily the best choice?  I'm sure that a decision like this one will make lawyers think twice about their courtroom tactics and with so much unprofessional conduct, there's nothing wrong with that.  At the same time, if judges are going to police conduct, they need to make sure that they don't go too far so as to deter lawyers from zealously representing their clients.

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"Bully my client and I'll bully you," may not be his firm's formal tagline, but that's the type of service that small firm lawyer Noah Geary delivers, as described in this article Sticking up for the weak:  Lawyer Gains Reputation for Taking on Bullies, Pittsburgh Post-Gazette (4/9/06).   According to the article:

A lawyer for 10 years, Mr. Geary, 34, is becoming a legend in his field. He's secured reversals for two defendants in murder cases and, more recently, agreed to represent a woman accused of robbing a bank with an unloaded gun.  In 2004, Mr. Geary was successful in getting the 1977 double murder convictions of David Munchinski, of Fayette County, overturned.

Standing up to bullies doesn't come easy though, and the article describes that Geary can often be found late at night in his office working his cases.  But when you're just 34 and on a mission to  address abuses of power,  you probably don't mind keeping those kinds of hours.  Let's just hope this guy doesn't burn out.

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For those solos who work from home or are thinking about doing so, here are two articles of interest.  First, from the Washington Post (4/3/06) comes this article, Working at Home, and Not Alone, about spouses who both work from home and how they negotiate their space.  And for those who already work from home, Grant Griffith offers this test to see if maybe you've outgrown your home office.

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This article, Graying of the Bar (Seattle Times, 4/10/06) raises some concerns for solo and small firm lawyers reaching the later stages of their careers.  As the article describes, state bars are finding that they are investigating more complaints against older lawyers who may be suffering from mental health issues, but continue to practice law.  At the same time, the problem of a few older lawyers can spoil things for those older lawyers who remain sharp later into their careers (think, for example, the Supreme Court justices, many of whom are in their 70s and 80s).

If you find yourself working with an older solo or small firm lawyer, or up against one in court who you think might be suffering from a mental health issue, why not reach out and suggest tactfully that they seek help from a bar counseling program.  Many of these older lawyers have mentored us and now, as they age, we can return the favor.

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In her article Small Shops Do the Heavy Lifting, Lovely Dhillon quotes a statistic that I've known for a long time, that in fact was my impetus for starting this site:  a majority of firms in the U.S. are solo and small practices, a whopping 89 percent in fact.
Even though solo practitioners and small law firms constitute such a significant part of the legal profession, there traditionally has not been as much training and support as one would expect for solo and small-firm practitioners.  The article goes through the obstacles and also points out the important role that we solo and small firm practitioners play in the judicial system - expanding access to justice.

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I've spent much of the past three weeks in seclusion, almost exclusively focused on a 75 page response in opposition to two summary judgment motions in a federal civil rights matter that I've been handling for close to four years.  During the process, I had a chance to read some classic Supreme Court and Circuit court decisions by Justice Harlan and Judge Posner, among others, who write not only with precision, but with panache, who always include a couple of "money quotes," that pop off the page.  And that got me to wondering - why don't legal writing classes ever teach the art of writing "the money quote?"  Here's what I mean...

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