Sole Practitioner, Business Planning Tips

04/07/23 Excellentconsultingonline.com 1

Doric E. Earle, [email protected]

www.doric.us214-502-6472

Seven “Solo” Survivor TipsSeven “Solo” Survivor TipsSeven “Solo” Survivor TipsSeven “Solo” Survivor Tips


WIIFMWIIFMWhat’s in it For ME?What’s in it For ME?

• Reinforce things you are doing right from a business and practice management perspective

• Introduce potentially new concepts and tools with respect to planning and managing your practice

• Discuss social media as a tool for marketing your practice

• Provide sources of additional information regarding planning


AgendaAgenda

1. Think Like a CEO: Your Practice is a Business2. What’s Your Situation? 3. Write it Down, Make Your Plans4. Cash is King: Know Your Numbers5. There is No “I” in Team: Solo Means Solo6. The Sustainability Drivers: Marketing & Sales 7. Take the Map Out Again: Are You On Course? • Appendix – Examples, URLs, related info


DefinitionsDefinitions

• An entity’s business plan is a formal document that communicates its goals, directions, and desired outcomes to various audiences

• The goal of business planning is to anticipate and accommodate the future by identifying issues, opportunities, and problems

• A business plan should be a living document that gets reviewed and updated as circumstances warrant


#1. Think Like a CEO: Your Practice #1. Think Like a CEO: Your Practice isis a Businessa Business

• It’s a rare practice that is accidentally financially successful.

• Regardless of the type of law you practice or how good a lawyer you may be, you must view your practice as a business.

• Neglecting business fundamentals will ruin your practice, in a hurry.

• The way to avoid disaster is to plan.


The Planning ProcessThe Planning Process INFORMATION GATHERING AND ANALYSIS (SWOT):

1a - INTERNAL ASSESSMENT 1b - EXTERNAL ASSESSMENT

IDENTIFICATION OF CRITICAL ISSUES FACING THE ORGANIZATION.

DEVELOPMENT OF GOALS AND OBJECTIVES. FORMULATION OF STRATEGIES FOR EACH GOAL/OBJECTIVE. PREPARATION FOR OPERATIONAL PLANNING BASED ON THE

PLAN GOALS (DEVELOPING ANNUAL OBJECTIVES). DEVELOP FINANCIAL AND MARKETING PLANS ALIGNED WITH

OBJECTIVES DEVELOPED FOR YOUR PLAN. CREATE METRICS WITH WHICH TO MEASURE YOUR SUCCESS.

CREATE REPORTING PROCESS & OUTPUT SHOWING METRICS. (MOST IMPORTANT) REVIEW PLAN REGULARLY, MAKE

ADJUSTMENTS, MOVE FORWARD.


#2. What’s Your Situation? #2. What’s Your Situation?

• Business focus - What kind of law are you best at? • Mgmt Style - Are you detail oriented or big picture?• Efficiency -Are you using your time efficiently?• Market Position - Who are you competing against?• Profitability - Are you managing your finances

properly?• Planning - Do you have a one year, two year or three

year view of your practice?

Info. gatheringactivity



More Detailed Questions More Detailed Questions • Although it seems like common sense, these are the

kind of things that are forever tripping up solo practitioners (attorneys, doctors, architects, artists and musicians, among others):– Cash flow – regular billings, collections, expense forecast,

emergency reserves, investment capital, taxes.– Marketing – finding new clients, understanding your

market, defending your market, branding and differentiation.

– Resources – leaving enough time to do the work, knowing where to turn to get temporary help, not adding staff.

– Technology – avoiding using too much or too little technology for your circumstance.

– AND PLANNING! See the above!Info. gathering

activityInfo. gathering

activity


Situational Assessment Using SWOT: Situational Assessment Using SWOT: Strengths, Weaknesses, Opportunities, ThreatsStrengths, Weaknesses, Opportunities, Threats

The most important activity in your business planning effort, something that can save considerable heartburn as you practice your craft, is to truly assess your self and your practice. We do not do everything well. We are not the only game in town. Clients come and go. A semi-annual SWOT can be liberating and practice-saving.

StrengthsStrengths

WeaknessesWeaknesses

Opportunities Opportunities

ThreatsThreats

InternalInternal

ExternalExternalH

elpfulH

elpful

Harm

fulH

armful




SWOT DEFINES YOUR….SWOT DEFINES YOUR….• Your legal knowledge and

expertise • Your relevant life experiences• Effort and capital invested in

your practice• Talented staff or associates• Your family• Your network

• Business plan• Organization • Cash management• Marketing• All the admin stuff you hate to do

• Other attorney practices • Capitalization• The economy• Tax liability• Other?

ST

RE

NG

TH

S

WE

AK

NE

SS

ES

OP

PO

RT

UN

ITIE

S

TH

RE

AT

S•New area of interest or expertise•New alliances•Assumption of someone’s practice or clients•Optimized efforts allow more client cases

•New area of interest or expertise•New alliances•Assumption of someone’s practice or clients•Optimized efforts allow more client cases




#3. Write it Down, Make Your Plan#3. Write it Down, Make Your Plan• Based on your SWOT what’s your business plan? • What are your goals and objectives? • Brainstorm, outline how you will handle

money/collections, new client intake, client problems, your banking relationships, marketing, your activity.

• Think about your goals and how to measure whether you have reached them – not as easy as it sounds.

• Where do you want to be in one, two, five years?

Goal setting activity

Goal setting activity


Basic Business Plan Should….Basic Business Plan Should….

• Be harder to create than to maintain

• Focused on goals and objectives

• Map actions to get from current state to desired future state

• Be easy to read • Be useful for banks,

potential partners, other interested parties as it demonstrates you are not just “winging it”

• Executive Summary• Practice Description - Law

Specialty, Board Certifications, Degrees

• Practice Structure & Organization

• External/Internal Assessment - SWOT

• Marketing Plan • Financial Plan• Operational Plan• Feedback & Adjustment

Cycle• Appendices – Financials, etc

Simple Plan TOCSimple Plan TOC


A Mind MapA Mind Map• Augment traditional plan with this visual map of your practice• Easy to follow logic flow of your activities, priorities

Source: http://freemind.sourceforge.netSource: http://freemind.sourceforge.net

Operational Planning

Operational Planning


#4. Cash is King: Know Your Numbers#4. Cash is King: Know Your Numbers

• Accounting and financial management must be part of your routine.

• Collections, cash flow, expense management – knowing your financial situation at all times is vital (duh).

• Setting aside money for and filing appropriate tax returns and payments is often overlooked. IRS hates that!

Financial PlanningFinancial Planning


Financial Questions to Ask YourselfFinancial Questions to Ask Yourself

• Do you know how capital you need to run your practice for a year? – How much overhead can you afford?– How much of a draw (salary) do you need to survive?– What is your projected tax liability?

• Do you have clients ready and waiting? How long will that supply last? How will you promote your practice? Can you afford them?

• Where will you work? Hold client conferences? Who will answer the phone? Can you survive with only a part time admin.?

• What is your profit target?Financial PlanningFinancial Planning


Use a Simple Financial Tracking Use a Simple Financial Tracking Spreadsheet to Manage Your $Spreadsheet to Manage Your $

Cash-Flow Budget WorksheetCash In-Flow: Budgeted: Actual:

Proceeds from start-up loans: ............ .............Fee Income: ............ .............Other Income: ............ .............

Total Cash Available: ............ .............

Cash Out-Flow:Payroll:

Attorneys (fee sharing) ............ .............Paralegals (P/T) ............ .............Other Timekeepers ............ .............Secretaries (may be combined) ............ .............Administrative (virtual asst.) ............ .............

Total Payroll Exp.: ............ .............Taxes and Benefits:

Payroll Taxes ............ .............Group Insurance ............ .............Parking ............ .............Other - ............ .............

Total Taxes & Benefits:

Office Expenses: ............ .............Telephone ............ .............Equipm.Rental ............ .............Equipm.Maint.& Reps ............ .............Rent ............ .............Utilities ............ .............Dues & Subscriptions ............ .............Taxes ............ .............Insur.-Prof.Liability ............ .............Insurance -0ther ............ .............Advertising ............ .............Library Expenses ............ .............Office Supplies ............ .............Travel Expenses ............ .............Prof.Exp.(CPA,etc.) ............ .............Bank Charges ............ .............

Total Office Expenses: ............ .............Client Related Expenses:

Client Development ............ .............Filing Fees ............ .............Court Reporters ............ .............Expert Witnesses ............ .............Travel ............ .............Parking ............ .............Other ............ .............

Total Client Related Expenses: ............ .............

Total Cash Out-Flow: ............ .............

Surplus or Shortage: ............ .............(cash available less cash out-flow)

Source: State Bar of Texas Source: State Bar of Texas



Then “See” Where Your $ Are Going Then “See” Where Your $ Are Going

By keeping up with your monthly cash flow you can track your expenses, see where you are spending your $.

Totatl Monthly Expenses Total Client

Related :Expenses

5%

& Total Taxes :Benefits

20%

Total Office :Expenses

19%

Total Payroll :.Exp56%



#5. There is no “I” in Team#5. There is no “I” in Team: : Solo Solo Means SoloMeans Solo

• Going solo means traveling light – keep your team virtual and or temporary, avoid long-term investments.

• Leverage technology, use the Internet, Shareware, Blogs, Virtual Assistants, Air Card.

• Use tools like FreeMind, Excel, Quickbooks, ProDocs, Westlaw, Replicon, Orbitz.

OperationalPlanning

OperationalPlanning


A Virtual Office A Virtual Office What tasks can you assign to a Virtual Assistant?• Prepare wills, powers of attorney, corporate

documents, agreements, legal forms, and court forms from precedents, digital dictation sent by .wav files, emails and fax;

• Attend the court office to file documents; • Attend adjournments and to set trial dates; • Work on backlog in document production; • Prepare financial and do daily accounting; • Assemble the information (such as photos and

documents) for evidence books; • Complete reporting letters and post closing follow-ups

using merge letters and a summary; • Transcribe the recording of meetings; • Attend discoveries to take notes and to transcribe; • Answer forwarded phones, arrange for courier pickups

and deliveries, make travel arrangements, and order supplies.

TOOLS: •Virtual Assistants•ProDocs, Westlaw•Other Law Apps. (Docket, Calendar, etc.)•MSOffice, Google Docs, Adobe Suite•Quickbooks, MSMoney•eFax, Skype, AIM•Webex, GoToMeeting•FaceBook, MySpace, Twitter, YouTube, Digg, Blogs, SlideShare, RSS•Laptop, Air card, Web-backups, wireless printer, PDA

TOOLS: •Virtual Assistants•ProDocs, Westlaw•Other Law Apps. (Docket, Calendar, etc.)•MSOffice, Google Docs, Adobe Suite•Quickbooks, MSMoney•eFax, Skype, AIM•Webex, GoToMeeting•FaceBook, MySpace, Twitter, YouTube, Digg, Blogs, SlideShare, RSS•Laptop, Air card, Web-backups, wireless printer, PDA

OperationalPlanning

OperationalPlanning


#6. The Sustainability Drivers: #6. The Sustainability Drivers: Marketing & SalesMarketing & Sales

• Internet and social media tools allow you to stay in touch with clients through frequent blogs, tweets, article posts and e-mails.

• With social and other marketing tools – “U 2 can ‘tweet’”. 140 characters is good for pointing your clients to an article or blog of interest.

• You must always be thinking how to land your next client, next engagement and expand your network…..always!

MarketingPlanning

MarketingPlanning


Circle of EffectivenessCircle of Effectiveness

Where do you fall on this continuum?

OperationalOperationalEfficiency (Low Cost)Efficiency (Low Cost)

- Fast, cheap, high churn

Customer LoyaltyCustomer Loyalty (Trusted Partner)

- Expensive but durable - Consider 80/20 rule

Circle of Effectiveness- Best results by Balancing all 3Best results by Balancing all 3

Innovation (Creativity)-Time consuming-Game changing

OperationalPlanning

OperationalPlanning


Old Marketing Fading• Digital marketing is greatly increasing, while traditional marketing is decreasing. • Many of the popular digital marketing channels (YouTube, Google, Facebook) provide special opportunities for nonprofits & small biz

http://www.marketingcharts.com/wp/wp-content/uploads/2008/10/epsilon-cmo-survey-digital-interactive-spend-increase-september-2008.jpg


What Can Social Media Do 4 U?What Can Social Media Do 4 U?

Connect with individual clients

Connect with individual clients

Share content, photos

Share content, photos

Write a blogWrite a blog

MarketingPlanning

MarketingPlanning


#7. Take the Map Out Again#7. Take the Map Out Again: : AreAre You On Course?You On Course?

• Regular self-assessment and metrics keep you on course – manage your goals, set / achieve your milestones and know when it is time to change direction.

• Most plans fail because they are rarely looked at again once they are created.

• Create a plan that is simple but meaningful to you.

Review & Adjust

Review & Adjust


The Planning The Planning ProcessProcess

A business plan can take as little as a few days or as long as several months to write – depends on time, source data and desire.

What is yourPracticeFocus?

What is yourPracticeFocus?

SWOTSWOT

BuildSub-plans.

BuildSub-plans.

Put it All

Together.

Put it All

Together.

Review Regularly

& Adjust.

Review Regularly

& Adjust.

StartStart

Review & Adjust

Review & Adjust


Prioritizing Planning ActionsPrioritizing Planning ActionsExecution Matrix

Relative Ease of Achieving Results

Rel

ativ

e Im

po

rta

nce

Easy Medium Hard

Hig

hM

ediu

mL

ow

#6

#1 #2

#5

#4

#7

#3

Legend:#1 – Prepare goals & objectives – what business are we in? Are we doing the right, smart things?#2 – Determine current organization status – health check#3 – Identify & begin writing business plan#4 – Establish budget & operational / marketing plan#5 – Execute Plan#6 –Active participation in networking activities#7 – Review and adjust business plan

Legend:#1 – Prepare goals & objectives – what business are we in? Are we doing the right, smart things?#2 – Determine current organization status – health check#3 – Identify & begin writing business plan#4 – Establish budget & operational / marketing plan#5 – Execute Plan#6 –Active participation in networking activities#7 – Review and adjust business plan

Review & Adjust

Review & Adjust


Appendix: Examples, Web SitesAppendix: Examples, Web Sites

• The multitude of Social Media Sites


Social Media and Other Useful SitesSocial Media and Other Useful Sites• http://www.dallasbar.org/• http://www.businessweek.com/smallbiz/• http://en.wikipedia.org/wiki/List_of_social_networking_websites• http://www.linkedin.com• http://www.plaxo.com• http://www.twitter.com• http://www.google.com, www.youtube.com• http://www.flickr.com/• http://www.facebook.com• http://www.myspace.com• http://www.digg.com• http://www.doshdosh.com/list-of-social-media-news-websites/• http://www.sitesketch101.com/• http://www.irs.gov/businesses/small/• http://www.virtualassistantsdfw.com/Services.html• http://www.blawlog.com/2009/01/everything-but-hot-coffee-virtual.html• http://www.abanet.org/lpm/lpt/articles/mgt04062.shtml• http://www.flock.com• http://freemind.sourceforge.net (Freemind mind mapping SW)

http://www.linkedin.com/

http://www.plaxo.com/

http://www.twitter.com/

http://www.google.com/

http://www.facebook.com/

http://www.myspace.com/

http://www.digg.com/


FreeMind FreeMind


Contact InformationContact Information

• Doric E. Earle, MBA• [email protected]• www.doric.us• 214-502-6472• Linkedin.com, plaxo.com