| Bar Bulletin |
March,
2003 |
| Solo/Small Firm
Practitioner |
|
Getting it Right From the Start
by Pat Yevics
Over the next two
months, this column will focus on items and issues that practitioners must
consider when starting a new solo practice or when joining with another
practitioner to start a new firm. Whether you are newly admitted to
practice or are moving from a large firm or government agency, there are
items to consider. We will start this month with a new solo practice, and
next month we will discuss specific issues related to joining forces with
another practitioner or practitioners leaving another setting to start a
new firm.
Develop the right
habits from the start; it will save you time and money later. Being a solo
practitioner is not an excuse for bad management.
If you are in a
personal relationship, make certain that your partner understands the time
it takes to start a solo practice.
Being a solo
practitioner can be an isolating experience, especially if you practice
from your home (more on that later). You will need to have a network of
other practitioners for support and information. If you are new to the
practice of law or new to the area, you need to decide early how to
develop these relationships. The best place to start is with a bar
association.
Services you will
need before starting your own practice:
- Good childcare
(even if you are working out of your home)
- Good housekeeper
- Good CPA
- Good Tech
Support (do not spend a lot of time doing it yourself)
BASIC EQUIPMENT
The following are
items you must have, at a minimum, to start:
- Phone (You
should get a phone number as soon as possible, and have at least two
lines.)
- Cell Phone
- Personal Digital
Assistant
- Computer (You
may want to consider a laptop if you plan to be mobile.)
- Laser Printer
- Fax Machine
- Copier (If you
are starting from your home on a temporary basis, you can get a scanner
that will allow you to scan documents and then print them. This is only
for short-term use.)
Software:
- Time and Billing
- Accounting
- Case management
- Research
software (If you are not certain exactly what practice areas you will
need, you might want to wait to make certain you buy only what you
need.)
- Office furniture
if you are planning to rent office equipment. Keep the cost as low as
possible. It can always be upgraded when you become more established.
LOCATION
What type of law
you practice could determine where you practice. Consider your proximity
to the following:
- Courts
- Government
agencies
- Law Libraries
(May allow you to postpone buying some publications)
- Public
transportation (Very important for certain types of practice)
- Banks
- Accessibility
for elderly and disabled
- “Networking”
opportunities
- Meeting space
Space:
Look for “office”
space. There are a number of options:
- Home (Not the
best and not for all practice areas, but more acceptable than in the
past. Must be a separate area to which other family members do not have
access because of confidentiality issues. All rules of confidentiality
apply, even in home offices.)
- Shared space
(Many attorneys have office space available for rent. You cannot give
your clients the impression that you are part of any firm. Your name
must be listed separately as J.Jones, Attorney at Law. If reception
service is offered, your phone must be answered separately with your
name or just “law offices”)
- Executive Suites
(These facilities rent small offices and there is a separate charge for
other services.)
If renting empty
office space, be frugal with the furnishings. Do not spend money you do
not have. Many spaces come furnished with a desk and chair but you may
have to provide filing cabinets.
Practicing from
home:
If you plan to
practice from home, you must have a separate phone line. No one but you
should answer the phone. You should have separate computer that is not
your home computer, as there are confidentiality issues.
When recording your
voicemail message at a number that you have given to professional
associates, make certain you have your name on your message.
FINANCES
Understand
budgeting issues:
- Determine
current fixed expenses. List all of your fixed personal and professional
monthly expenses to determine your needs.
- How long can you
live without an income?
- Do not buy more
than you need to start. Use other resources until you are certain of
your needs.
- Set up your
chart of accounts so that you can immediately begin tracking where your
money is going.
- Do not start to
accept money from clients until you have set up a trust account, which
most Maryland banks can provide. Choose one of the MLSC/MSBA Honor Roll
Banks. Find the list at
http://www.mlsc.org/honor_roll.htm.
- You need both an
operating account and a trust account. They should have “operating
account” and “trust (or escrow) account” on the respective checks, and
should be in different colors to avoid confusion.
ADMINISTRATION AND MARKETING
- Change your
address and information with the MSBA and Client Protection Fund. You
can change your information securely online at the MSBA at https://www.msba.org/directory/update/index.cfm.
Since the public has the ability to search for members by practice area
and location, please make certain that you include your practice areas.
- If you are
currently in practice, make certain you have a mailing list of all
current clients, prospects, referrals and business associates. Send
notices with your new address and contact information. Determine how
e-mail to an old address will be forwarded to you. This is especially
critical if you have been with a firm or agency.
- Get business
cards. Do not spend a lot if you are taking only temporary space.
- Get a domain
name before you begin to give out your e-mail address. Go to
www.networksolutions.com
to determine what names are available.
- As a solo
practitioner your name is your firm. Do not hesitate to use your name as
your domain name. Besides, most of the really clever names are taken.
- Determine how
you are going to cost-effectively let people know you are now “J. Jones,
Attorney at Law”.
- If you are
leaving a firm, there are rules about when you may and may not inform
clients. Make certain you know those rules when telling clients.
- Send
announcements to all small local newspapers.
- Join state,
local or specialty bar associations.
- Explore what
civic, social or professional associations/organizations will have
potential clients and/or referral sources. Join and participate in those
organizations.
- If you are
leaving a firm and bringing a secretary or assistant, make certain you
set up a payroll account or use a payroll service.
- Determine your
billing and collection policy as soon as possible. If you are a new
practitioner, this is a great opportunity to teach your clients from the
start how you manage your practice. (More information on billing and
collection can be found at
http://www.msba.org/departments/loma/articles/articles.htm)
For additional
information on these topics, please e-mail Pat Yevics at
pyevics@msba.org. Include what
information you are requesting, your name and mailing address.
Additional
information is also available at the MSBA website:
To receive a copy
of LOMA’s How to Start a Solo Practice, please e-mail
pyevics@msba.org, and include
your name and mailing address.
And finally, if you
would like to talk about these or other issues, please contact Pat Yevics
at (410) 685-7878 or (800) 492-1964, ext. 3039, to schedule a time to have
your questions answered.
