Friday, April 27, 2012
The Monsoon- Making Rain in the Southwest: Know Your Numbers
The Monsoon- Making Rain in the Southwest: Know Your Numbers: A few years ago the medical industry launched a preventative health campaign about the importance of knowing key numbers rel...
Know Your Numbers
A
few years ago the medical industry launched a preventative health campaign
about the importance of knowing key numbers related to personal wellness. If memory serves right they focused on
things like blood pressure, cholesterol, and optimum body weight. The idea behind the campaign is to take
charge of your health before it is too late.
I think as lawyers, we can learn a lot from that campaign. The
health of your law practice depends upon a few key numbers. Just as the medical industry wants us
all to know our health numbers while there is still time to do something about
it-my goal is for lawyers everywhere to learn their key numbers before it is
too late.
So,
what key numbers am I talking about?
1.
Your overhead
2.
Your profitability
3.
Your size of your portable book of business.
Your Overhead
As we all learned in contracts, there are costs to doing
business. Yet many great lawyers
glaze over the importance of getting very granular on your overhead costs. It is very difficult to make strategic
decisions without understanding what it actually takes to keep the lights
on. And, just in case you are
sitting there thinking, this paragraph is not for me because I am at a firm,
this paragraph is for everyone.
Whether you are the writing the check for the utilities or practicing at
a big firm where someone is paid to write the check, you HAVE to know what your
overhead is.
Your Profitability
I know, I know, I am not playing fair. I told you there were three key numbers
you needed to know and at this point you have probably realized that to know
your profitability you have to know some other numbers as well (your billing
rate, your collection rate, your overhead, etc) Sorry, but at the end of the day the health of your practice
depends on whether or not you are profitable and how large that margin is.
Your Portable Book of
Business
When I first entered the legal industry people called a book
of business a “book of business”.
However the last three years have taught many people that not all books
are created equal. To gauge the
health of your law practice, you must know how many of your clients would move
with you if you decided to house your practice under a different roof. If you are a solo, it is an easy
equation-your entire book of business.
If you are an attorney at a big firm, it is much more complicated. Often the clients of big firm attorneys
have multiple and complex contacts at the firm. So, if you left your firm how many of your clients would
actually leave with you? Keep in mind,
it is unethical to reach out to your existing clients about potential
moves. A little scary-huh? Actually, it shouldn’t be, if you know
your critical health numbers, you will have all the facts to evaluate your
current practice situation and all the tools to advocate for the best
deal.
While
many of us missed the “how to run a law practice” class in law school, the
stark reality for every lawyer is that the law is a business. You will be fine as long as you know
your critical numbers and run your law practice like the business it is.
About Jonelle- Jonelle Vold is
a business development coach that is passionate about your success. A
mother of twins, former Assistant Dean at a tier-one law school, attorney, and
seasoned sales professional, Jonelle understands the challenges of
high-level professionals. Her coaching philosophy is every person has the
ability to be a rainmaker by cracking their own personal code and doing
business with intention. You can reach Jonelle at jonelle@jonellevold.com or
www.jonellevold.com.
Tuesday, April 17, 2012
The Monsoon- Making Rain in the Southwest: Thinking of starting your own firm? 10 tips from ...
The Monsoon- Making Rain in the Southwest: Thinking of starting your own firm? 10 tips from ...: The current legal market has many people considering leaving the comfort of big firm practice to hang their own shingle. If you are ...
Thinking of starting your own firm? 10 tips from a lawyer hack
The current legal market has many people considering leaving the comfort of big firm practice to hang their own shingle. If you are one of those folks wondering about making the leap to a firm of your own, you are probably desperate for the guidebook, checklist, or white paper that will tell you how to successfully start you own practice. Well-you are in luck, several of those resources actually exist. Of course, these books and lists are written by people who may have different skills, different ideas, and a different definition of success from yours. Thus-there is no perfect guide for you. Business ownership is a very personal journey. Your success and happiness in this journey will be directly correlate to your ability to reach your vision of success. So, read the books, listen to experts, but recognize from the outset that this is YOUR journey, take only the ideas that resonate with you. After all what does the author know about you and your vision of your practice? And before you form the question-Yes-of course this advice applies to anything I write as well. After all, I earn a living as a consultant to law firms not running a law firm.
Now that we have called a spade a spade, lets get down to business. If you are thinking of making the leap from employee to entrepreneur, here are ten tips to help you get your ducks in a row before you make the leap.
1. Do an honest evaluation of your skills and your situation.
a. Can you truly tolerate the risk of running your own business?
b. Will your family situation allow for the roller coaster of business ownership?
c. Do you have the discipline to be your own boss?
2. Create a business plan. Take a hard look at the numbers and create your WRITTEN business plan for success. There are several free services available that will help you put together a business plan including the Small Business Administration. Go to a free workshop, attend a seminar online, do whatever you need to do to learn how to write a business plan. After all, you may be the best lawyer on the block but if you don’t have a plan to turn those skills into a sustainable revenue stream-you are going to wind up back as an employee at someone else’s law firm.
3. Create a business development/marketing plan. When you are a solo-you are a solo. You are solely responsible for every facet of your business. If you don’t have a plan and a strategy for when and how you are going to bring in new business, it won’t happen. I could spend MANY MANY pages writing all the things that need to be in your business development plan. For now, just recognize that you must have a plan. Your business it too important to trust to serendipity and wishful thoughts. You need to understand where your clients will likely come from and what you need to be doing on a regular bases to create new clients. The key is consistent and strategic actions.
4. Sharpen your time management skills. Before you jump from the safety of being an employee, become an expert in time management. For many the most difficult part of running your own show is creating the time to practice law and run a law office. If you let it, your business will swallow every second of your time. You have to understand how to create time for the critical functions. This means having a laser sharp focus on your priorities and practicing every day with intention of what you need to achieve rather than in reaction to whatever the world throws your way.
5. Talk to those who have already made the leap. Talk to your friends from law school and your former co-workers. Ask them the hard questions. Find out what tools and resources they are relying upon. You are going to need to know everything from what time and billing system are they using to who created their website and everything in between. Start these conversations now, take notes, write down their ideas, and begin your due diligence.
6. Build a knowledge network. If you are practicing in a big firm you have the luxury of access and brain power of the other members of the firm. Once you jump, it will be just you and perhaps a partner or two. Either way, it is very unlikely that you will have the immediate access to the knowledge that is currently within your firm. Instead build a network of attorneys that you can call with questions and use as a sounding board.
7. Do not over spend. New business owners are easy targets for unscrupulous vendors. Buy only the essential things you need to get started. You can add software, research services, and everything else later when you really understand what you need. Most attorneys need only a few essential services to open up shop.
8. Double your budget and multiple your time. Inevitably in the beginning everything cost more than you think and takes more time than it should. Don’t fight this-just plan for it. Whatever budget you have come up with to start your law practice, double it. If it costs less-good for you. If the unexpected costs arise-you are prepared. Likewise with your time. You will be amazed at how long it takes to call the insurance broker, meet with the landlord, set up the phone system, etc. etc. Give yourself ample time for the initial administrative issues.
9. Do one more gut check. Why are you starting your own practice? Is this really your dream? What does success look like? How big do you want to grow? Can you handle the solitude of solo and small firm practice? Is your family ready for this?
10. Go for it! If this is really what you want and you have done your homework-go for it with gusto! Trust yourself. You have been successful up until this point in your life. Why would that suddenly change? Believe in yourself and in your abilities. Being a business owner means you will have some ups and downs-the successful business owners recognize that both are short-lived and the real joy is in the process. Go for it!
11. And a bonus tip-surround yourself with positive people who will keep you motivated, help you work through any issues that come your way, and provide you with the occasional push to keep you moving in the right direction.
If you still think you want to hang your own shingle, here are some great resources to help you make the transition.
About Jonelle- Jonelle Vold is a business development coach that is passionate about your success. A mother of twins, former Assistant Dean at a tier-one law school, attorney, and seasoned sales professional, Jonelle understands the challenges of high-level professionals. Her coaching philosophy is every person has the ability to be a rainmaker by cracking their own personal code and doing business with intention. You can reach Jonelle at jonelle@jonellevold.com or www.jonellevold.com.
Thursday, April 5, 2012
The Monsoon- Making Rain in the Southwest: The Truth Will Set You Free
The Monsoon- Making Rain in the Southwest: The Truth Will Set You Free: Recently, I was meeting with a prospective client. Having spent her entire legal career in government practice, she was ...
The Truth Will Set You Free
Recently, I was meeting with a prospective client. Having spent her entire legal career in government practice, she was reluctant to engage in any form of business development. As we talked through business development and all the different tools for building relationships with strategic partners and those folks who might actually have problems you can solve (e.g. clients), a light bulb went off for her. Suddenly she realized that her magic formula for finding new clients is her former career in government.
During the conversation we talked through the concept of an Ideal Client or someone who you are uniquely situated to serve because you have the exact knowledge or strengths to solve their problems. We discussed referral relationships and how important it is for others to understand who to refer you. Finally, we discussed how her background is unique and has afforded her expertise and situational experience that her competitors do not have. The light bulb went off when she realized that her business development plan could and should reflect who she is, what she brings to the table, and her unique background and abilities. Further, her business development efforts should center around anticipating and solving problems for her Ideal Client!
The look on her face as she savored this new found knowledge was priceless. Somehow somewhere along the way she had come to believe that business development was about gregarious interactions with total strangers as you shamelessly sell a skill set you don’t actually have. As I explained to my new client, there are 100 ways to build relationships, your business development plan should reflect those things that you do well and are willing to do lots of. The key to business development is taking consistent and strategic actions while finding ways to add value or be of service to your potential clients. Just like snowflakes, no two business development plans will be exactly the same.
The realization that she could develop business by being exactly who she already was and leveraging her strong regulatory background was a huge relief for my client. So much so that it has me wondering how many other professionals are out there thinking that to build a book of business they should abandon all the successful things that have brought them to this place and follow some prescribed business development method that is not a good fit for them?
The moral of today’s story is a simple one- the truth will set you free. Business development is not something you do once or twice a year to satisfy your boss. Business development is part of the way you practice and run your business. YOU are the key to a successful business development plan. Your plan should be a truthful an accurate description of YOU filled with strategies and activities that play to YOUR strengths and solve problems for the clients YOU are uniquely qualified to help. We are all potential rainmakers. Some of us are just further along in the process.
If you are struggling to bring in new business-chances are your strategies are not aligned with your strengths. Need help creating an effective business development plan that works for you? Well-call me of course! My strength is seeing your potential and developing business development strategies that work for you.
About Jonelle- Jonelle Vold is a business development coach that is passionate about your success. A mother of twins, former Assistant Dean at a tier-one law school, attorney, and seasoned sales professional, Jonelle understands the challenges of high-level professionals. Her coaching philosophy is every person has the ability to be a rainmaker by cracking their own personal code and doing business with intention. You can reach Jonelle at jonelle@jonellevold.com or www.jonellevold.com.
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