ToolkiT

A guide to hanging your own shinglewritten by San Francisco attorneys

published by The Bar Association of San FranciscoSeptember 2013

This Solo/Small Firm Tookit has been prepared by a group of small firm and solo practitioners in San Francisco as part of The Bar Association of San Francisco’s (BASF) “Mind the Gap” or MTG initiative. MTG is focused on recent law grads struggling – through no fault of their own – to find full time legal employment in the worst legal job market in a generation. As part of MTG, and recognizing that many in this situation will not find jobs in large or mid-size firms, we have put together this Toolkit as a resource for

those who decide to start a small or solo practice.

TABle oF ConTenT

InTroducTIon ...................................................1How to use this book

chapTer 1: exISTIng reSourceS ............... 2BookS .................................................................3CourSeS .............................................................5 online reSourCeS .............................................6

chapTer 2: oFFIce managemenT .............. 7ACCounTinG ......................................................8inSurAnCe ..........................................................10

General Commerical liabilityMalpracticeHealth insuranceWorkers’ Compensation

oFFiCe SpACe .......................................................14 leasing spaceWorking from homeVirtual officeShared space

TeCHnoloGy ......................................................17 SoftwareHardware

FinAnCe/ BudGeT ...............................................23 profit/ lossTrust account

HuMAn reSourCeS ............................................24 employeesContract workersVirtual assistantspolicies

Bill ColleCTion ..................................................27Collection tips

Credit cards BuSineSS STruCTure ...........................................29

TABle oF ConTenT - ConTinued

chapTer 3: markeTIng and buSIneSS developmenT .............................. 32

WeBSiTe ...............................................................33BrAndinG ...........................................................35 SoCiAl MediA ......................................................37AdVerTiSinG ........................................................39neTWorkinG ......................................................40 reFerrAl SerViCeS ...............................................41VolunTeerinG ....................................................42puBliCATionS/ preSS releASeS ............................43SpeAkinG AppeArAnCeS .....................................46

chapTer 4: The pracTIce oF law .............. 49CHooSinG your prACTiCe AreA(S) ....................50ClienT ACCepTAnCe ............................................51 SAMple doCuMenTS/ reSeArCHinG THe lAW ....53 eTHiCS/ proFeSSionAl reSponSiBiliTy ................55 liTiGATion ...........................................................56repreSenTATion AGreeMenTS ............................58 ATTorney-ClienT Fee diSpuTeS.............................59

appendIx ....................................................... 60Mind THe GAp .....................................................61ACknoWledGeMenTS ........................................62

1

inTroduCTion

A couple of notes before you dive into this Toolkit.

First, it is a living and breathing document.

Whether you are new to this or have insights from years of practice, please share them with us, indeed we need them! We will update this Toolkit periodically.

Suggestions should go to leonard lun, BASF’s director of Membership at llun@sfbar.org.

Second, please do not treat everything in here as Gospel.

We have done our best to be helpful and informative in

starting a law practice, but are not providing legal advice to you or

your prospective clients.

good luck!

CHApTer 1

exiSTinG reSourCeS: BookS, CourSeS, inTerneT T H e B o x

Anyone considering opening a law office should take the time to review the books, courses, and other materials referenced here. not only do they provide excellent

practical advice on what you need to do in order to start and grow a law practice, they are also a source of inspiration written or taught by attorneys who have enjoyed successful careers as sole practitioners and/or in small firms.

While most of these materials are not California- specific, they provide generally applicable information at a level we cannot possibly recreate here.

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1 exiSTinG reSourCeS bookS

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bookShow to Start and build a law practice by Jay Foonberg

9 practical advice and a classic “must read” for attorneys considering a solo practice

9 Gives confidence to attorneys going out on their own

9 Available in the American Bar Association bookstore and individual chapters can be purchased for immediate download.

Small business Start up kit for californiaby pan pakroo, J.d.

9 practical advice and a classic “must read” for attorneys considering a solo practice

9 Gives confidence to attorneys going out on their own

9 latest edition released in 2004, so technological advice is a bit outdated

Solo by choiceby Carolyn elefant

The e-myth attorneyby Michael Gerber

9 excellent insight on how to approach law-firm management

9 Good advice on running a small business

9 Quick read

9 practical advice for starting a law firm 9 General business knowledge 9 Helps understand all options for a career

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minding Your own business: The Solo and Small Firm lawyer’s guide to a profitable practiceby Ann Guinn

9 How to run a business with helpful, pragmatic advice

9 Marketing strategies to attract new business

9 Helpful worksheets

The associate as rainmaker: building Your business brainby david king keller

9 includes a business development checklist

9 Appendices with exercises, goals sheets, and time management forms

9 Tips and strategies for all lawyers

MORE RESOURCES

american bar association book Store apps.americanbar.org/abastore/index.cfm

State bar of californiaVisit the Solo and Small Firm Section of the State Bar of California website at solo.calbar.ca.gov for more information.

1 exiSTinG reSourCeS bookS

BASF membership entitles you to 15% off the list price of any of the American Bar Association’s more than 300 titles.

15%oFF

5

golden gate university School of law

The Business of the practice of lawprofessor: Maurice Zilber

A course about going solo or forming a small partnership with friends. or for those entering a firm, their knowledge of the business aspects of practice gives them a leg up.

Seminars and workshops

San Francisco Trial lawyers association (SFTla) www.sftla.org

continuing education of the bar (ceb)ceb.com

The bar association of San Francisco (baSF) www.sfbar.org/calendar

practicing law Institute (plI)www.pli.edu

how to manage a Small law Firmwww.howtomanageasmalllawfirm.com

1 exiSTinG reSourCeS courSeS

courSeS

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1 exiSTinG reSourCeS onlIne reSourceS

baSF’s Solo and Small Firm resource center

BASF has put together an online Solo and Small Firm resource Center for attorneys who need information, resources and tips vital to running a successful practice.

Membership is required to access.

blogs

Small law Firms blogwestlawinsider.com/category/small-law-firms

Hot topics, events and more for solo and small firm attorneys.

my Shingle myshingle.com

inspiring solo and small firm lawyers and those who want to be.

Solo and Small Firms www.abajournal.com/blawgs/topic/solossmall+firms

American Bar Association offers a large number of blogs and resources for attorneys who are solo or employed in small law firms.

listerv

Solo and small firm attorneys face everyday challenges that their counterparts at big and medium sized firms do not. With that in mind, BASF has addressed this important and growing group by creating a listserv for solo practitioners and small firms. Membership is required to access.

onlIne reSourceS

CHApTer 2

oFFiCe MAnAGeMenT

7

nu

T S & B o l T S

Although some attorneys reject the term “the business of law” as trivializing the profession, the fact is that all sole practitioners are small business owners. keeping the doors of your law practice open requires you to treat

your law practice as a business. unfortunately, these are not skills taught in law school. However, plenty of materials exist to show you how to successfully manage a law office. From hiring an accountant to choosing software and insurance to finding an office, the tasks necessary to open and manage your law office may seem daunting at first. But by choosing the right time-saving tools (software in particular), managing your time re-sponsibly, and attacking and prioritizing your to-do list every day, you will be amazed at how quickly you can be up and running.

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Before you make an accounting decision, talk to some bookkeepers. i recommend using QuickBooks [from intuit]. Assuming everything goes well, you are going to want to be able to hand off the accounting for your business (as well as some of the accounting-related functions, e.g., generating invoices, paying bills) to a bookkeeper. And whereas every bookkeeper knows

QuickBooks, their familiarity with other software packages will be hit-and-miss. i spent a couple of weeks using GnuCash, a freeware alternative to QuickBooks. it seemed fine, but i talked to a bookkeeper, and sure enough, she had never heard of it. As the industry leader, QuickBooks also has good integrations with financial institutions for automatically retrieving your data. it’s offered as SaaS (software as a service) or as normal software. if you go the software route, don’t worry about getting the absolute latest version; last year’s will be fine, and will be cheaper. i recommend serving as your own bookkeeper at least until you understand how your books are kept; then hand it off to a bookkeeper as soon as the economics of paying someone to do it makes sense. (unless you love bookkeeping.)

i recently spoke with a friend who just started his own practice. He definitely recommended QuickBooks, and suggested getting a subscription to the cloud based software.

Apparently it is only about $40.00 per month and can be easily accessed by any bookkeeper that a solo or small firm practi-

tioner is working with. He says that this worked much better than simply going out and purchasing the software and copying it onto his computer.

2 oFFiCe MAnAGeMenT accounTIng

accounTIng

MATT GluCk*

pAM FulMer

*See the full list of contributing attorneys in the Appendix

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QuickBooks is definitely the way to go. if you plan on using Clio as law practice management software, get the desktop version of QuickBooks. At least as of october 2012, Clio supposedly integrated with the desktop version of QuickBooks but not the SaaS version.

i know of some attorneys who keep track of their expenses in an excel spreadsheet. But since most accountants know and use QuickBooks, i think it is well worth the cost of a license. Additionally, if and when you decide to farm out your accounting, it will probably be easier to do so if you use QuickBooks than if you use an excel spreadsheet.

We have used FreshBooks for all our timekeeping and invoicing for about two years. it is cloud based and allows our in-house contract-based timekeepers to enter time daily. our contractors also use FreshBooks to invoice us, so everything is in one place. FreshBooks is a huge timesaver for us.

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CrAiG dAniel

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general commercIal lIabIlITY (gcl) (GCl)

i originally looked into getting lpl with Marsh. ultimately, i found a great plan with the lawyers’ Mutual insurance Company (lMiC) called the Strong Start program.

For a $300,000 annual aggregate/$100,000 per claim plan, lMiC offers a first-year rate of $500 per year for attorneys in their

first years of practice who meet specific criteria. The minimum policy typically includes $300,000/$100,000 coverage. Two factors to consider in choosing the amount of coverage are (1) whether you practice in an area or areas (e.g., intellectual property) where lpl claims tend to be higher and (2) whether you have significant assets.

Ahern insurance (a partner of BASF) offers lpl to solos/smalls for reasonable rates, but it’s still thousands per year.

lpl insurance is more or less important depending upon whether you have assets that you want to protect. lpl protects you, and it can also be seen as a way that you are protecting your clients in

the event you make a mistake that harms a client, they may have recourse against your carrier. you may want to reconsider your level of lpl coverage when you get larger clients in the door.

malpracTIce – lawYerS’ proFeSSIonal lIabIlITY (lpl)

2 oFFiCe MAnAGeMenT InSurance

General Commercial liability insurance (GCl) is cheap for lawyers, and will be required by many or most leases or subleases, anyway. i think a million dollars or more of coverage can be purchased for something like $500 per year. if you are ever going to have clients or anyone else come to your office, it’s a good idea to have GCl. every major insurer will offer GCl.

InSurance

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2 oFFiCe MAnAGeMenT InSurance

keep in mind that if you do not have professional liability insurance, you must inform your clients of that fact for any matter in which it is reasonably foreseeable that you will spend more than four hours of time. rule of professional Conduct 3-410.

Merri BAldWin

healTh InSurance

kaiser permanente offers a wide range of individual health plans, depending upon your needs. i am a relatively low consumer of health services, so i chose a high-deductible, high-copay plan that has relatively low premiums. i pay around $250/month, which includes dental. i also chose the Health Savings Account option, so i can save and use pre-tax dollars to spend when i do need health care.

MATT GluCk

As a sole practitioner or small law firm, there are a number of important areas to consider while evaluating the most appropriate health insurance options for you, your employees and their families.

Below are five important items to consider as you begin to evaluate your options:

• begin shopping for insurance at least 30-60 days prior to needing coverage in force. There are over 200 different individual and small employer plans available in California. Coverage can take time to understand and implement. Having a 30-60 day lead time will provide adequate time to implement appropriately.

• make a list of the doctors, hospitals and/or facilities that are important to you, your family or your employees. All medical plans have “contracted” or “in-network” providers who have agreed to accept pre-defined amounts for services. Securing a medical plan that has most, or all, of your doctors in-network will provide enormous savings over time.

A Tip on HeAlTH inSurAnCe FroM BASF

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2 oFFiCe MAnAGeMenT InSurance

California employers are required by law to have workers’ compensation insurance, even if you have only one employee.

This is true even if that employee is a family member!

if your employees get hurt or sick because of work, you are required to pay for workers’ compensation benefits.

workerS compenSaTIon (wc)

A Tip on WorkerS’ CoMpenSATion inSurAnCe

FroM BASF

• understand a medical plan’s “maximum out of pocket exposure.” your deductible or copayment is noT the most important component of your medical plan. An individual or family’s “maximum out of pocket exposure” is the most im-portant number and is the amount that identifies where your exposure would end for covered services in a catastrophic event. Make sure you clearly understand what this amount is and that you are comfortable with this level of exposure.

• learn more about tax-efficient medical plans such as health savings account (hSa) options. Health savings account (HSA) or health reimbursement account (HrA) alternatives can dramatically decrease a subscriber’s financial exposure to medical expenses while at the same time decrease monthly premiums.

• ask about what ongoing or additional services your insurance broker will be providing. pricing of individual and small employer health plans are identi-cal regardless of which broker you are working with. Most agents or brokers differenti-ate themselves by providing additional administrative, Hr, technology or legal resourc-es which are, in many cases, free-of-charge. Be sure to understand how service-focused the broker you have selected will be throughout your relationship. The health insurance marketplace is rapidly changing. it is important to understand how these changes will affect you and your practice and a knowledgeable insurance broker will be able to help guide you through them.

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2 oFFiCe MAnAGeMenT InSurance

The benefits include:

• Medical care• Temporary disability benefits• permanent disability benefits• Supplemental job displacement benefits• Vocational rehabilitation• death benefits

Below are four important items to consider as you begin to evaluate your options:

• begin shopping for coverage before you hire your first employee. By law, coverage must be in place upon hire.

• keep detailed payroll records. The premium for workers’ compensation insur-ance is based on actual payroll paid, and is auditable.

• be sure your employees are being classified correctly for workers’ compensation rating purposes. The main rating factor of the premium you pay for workers’ compensation insurance is related to the industry classification(s) assigned to your business. it is important that a correct classification code is assigned to each employee. if an incorrect classification is used, the error will likely be caught at the time of the annual audit and can result in unexpected premium due. A knowledgeable broker can assist with this classification for you.

• Is your insurance broker large enough to have access to multiple insurance carriers, yet small enough to offer personal service?

• do you have an advocate to work with in the case of a claim?• is your broker able to assist with workers’ compensation related compliance tasks

such as legal hand-outs, posters and/or enrolling in an Mpn (Medical provider network)?

• Can they offer risk management services, including assessments, classroom safety trainings, and setting up an injury, illness and prevention program (iipp)?

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2 oFFiCe MAnAGeMenT oFFIce Space

oFFIce Space

MATT GluCk

work From home

For someone with dedicated space in their apartment or house (and who is not easily distracted), working from home could be an option. However, rentable space should be available some-where nearby (i.e., outside the home) to meet with clients.

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vIrTual oFFIce

pro: less expensiveCon: less control over atmosphere and location

i considered using a virtual office (and i still consider adding a virtual office in a second location), but after walking through many of them, i decided they weren’t going to be as available/

accessible to many of my clients. i’m an immigration and bankruptcy lawyer, and i decid-ed it would be more effective to be located in the Mission district and to be able to post a sign outside the window to attract walk-in customers. This would’ve been more difficult at a virtual office (which all seem to be in high rise or tall financial district buildings). That being said, i know other immigration attorneys who have successfully started their firms in virtual spaces, so i know it can be done. it is worth thinking about the atmosphere that you want your clients to feel when they meet you.

oTiS C. lAnderHolM

leaSed oFFIce Space

downtown locations (San Francisco or other cities) offer walking-dis-tance access to a host of services. From my building at Bush and Montgomery, i can walk in just a few minutes to a branch of any bank, to upS, uSpS, or Fedex/kinkos, to Staples, shoe repair, dry cleaners, restaurants, bars, gyms, transit, etc. This is not a small thing in terms of saving time and quality of life.

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2 oFFiCe MAnAGeMenT oFFIce Space

Shared Space

i began by renting workstation space in a shared office suite with a company called intelligent office. Their service is outstanding and includes live receptionist service with a personalized firm/company greeting, mailbox service, conference rooms and offices rentable by the hour, and a shared copy/printer/scanner.

The workstation arrangement worked out fine for the first couple of months. Whenever i needed to meet with clients, i just rented an office or conference room for the meeting. After i got busier, i upgraded to an office. i recommend working in a suite with attorneys and/or other professionals as co-tenants. Fellow attorneys could be a great source of advice and referrals. Fellow professionals are potential clients.

Getting a sublet to rent an office in a suite of lawyers and/or other professionals is an attractive option. Such an arrangement can come quite bare-bones, or with a full range of amenities. Such arrangements commonly include a shared reception area, kitchen area and copier. Many also include a shared reception-ist, and a conference room – these are nice items but can have a

significant impact on the cost of the space. Some sublets will include other resources such as internet, treatises or other legal materials. Sharing space may also create the potential for shared secretarial, bookkeeping, or legal assistant/paralegal time. not to be overlooked is the benefit of working with other colleagues around, creating the potential for socializing, using each other as sounding boards, and other interactions. Sitting in an office by yourself waiting for the phone to ring has the potential to be depressing.

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MORE RESOURCES

Some considerations for Sharing office Spacewww.sfbar.org/forms/sfam/q12010/sharing-office-spaceVia San Francisco Attorney magazine

in today’s rough and tumble times, a solution for the headaches related to expensive rents for office space can often be mitigated by sharing office space with another business. However, before you consent to signing your name on a lease agreement, there are several considerations that deserve your attention. read more...

looking for a place to hold a client meeting or mediation? BASF offers meeting space to accommodate large and small gatherings. our meeting rooms can accommodate from two to 26 people and are available by the hour or day.

located in the heart of the financial district at 301 Battery Street, between Sacramento

and Clay Streets, BASF’s offices, on the third floor of the stately Bently reserve building, offer a convenient and secure meeting place.

discounts are available with BASF membership. More information and photos at www.sfbar.org/about/meeting_facilities.aspx

A Tip on renTinG rooMS FroM BASF

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2 oFFiCe MAnAGeMenT TechnologY

SoFTware

law practice management Software

law practice management [lpM] software is often cloud based which can be a good fit for a mobile office. Most tend to offer a variety of functions that integrate with each other, including contact management, calendar, task lists, matter/en-gagement management, time sheets, time capture, billing/invoic-ing, and more.

you can associate (upload) key documents and communications (emails) with matters, a good way to keep things organized and accessible. Major providers include Clio and rocketMatter. lexis and many other companies also offer lpM products.

i chose Clio after having heard stellar reviews from two fellow solos. Clio is SaaS, so there is never a need to update and it is available on any device with an internet connection. Clio makes timekeeping and invoicing very easy, integrates with Microsoft outlook, and includes lots of very useful features. And, it is a relative bargain at only $49.00 per month. Clio offers

new users a free thirty-day trial. After using Clio for almost five months, i think it is excellent and affordable, but i have been a bit frustrated by the QuickBooks integration. Clio supposedly integrates with the desktop version of QuickBooks. However, before you can actually download usable data (e.g., invoices and payments) from Clio, certain fields in the applications need to be mapped. (After my first unsuccessful attempt to download data from Clio, i ended up having to spend an hour on the phone with my CpA to correct all the mistakes caused by the fields not being mapped.) if you don’t have the expertise to do it yourself, you’ll need to hire an iT expert to help. otherwise, Clio is a great option.

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TechnologY

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electronic calendaring Software

deadlines.com is a web-based litigation calendaring program. you put in the dates of events (e.g., service of the complaint), and it will return the dates of triggered deadlines (e.g., date to respond to the complaint). you can then sync (or upload for Mac) the dates into your calendar program. it’s only $20 per case per month, a cost that can be passed

through to your litigation clients.

deadlines.com is a product of Aderant, a big legal software company serving firms big and small. This means they have an army of moles getting the latest updates to procedural rules that affect calendaring, including (in many jurisdictions) local rules. While ultimate-ly it is every lawyer’s responsibility to calculate their own deadlines, it seems to me that deadlines/Aderant is going to do a better job than me (or you) most of the time. There are likely other companies offering similar products.

automatic Time capture Software

There is a type of software that runs in the background and cap-tures data on the time you spend in each application, generally specifying time spent in each document, on each webpage, etc. There are many, many such programs, with a host of different functionalities. Some integrate with lpM software as a way to bill time. i have found that using this software also helps me identify

times or days when i am overdoing the multi-tasking – jumping around from one thing to another every couple of minutes.

i have not found any automatic time capture software that i have felt was a good fit for my practice in terms of value (they tend to be subscription-based), but i remain hopeful.

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2 oFFiCe MAnAGeMenT TechnologY

Sales and marketing Software

if you are thinking of hiring someone to handle your law office’s marketing and client relations, consider infusionsoft first. you can use this powerful sales and marketing automation software to automate communications with clients and potential clients, cre-ate automated email “drip” campaigns based on practice area, attract potential clients with free reports, and streamline routine

tasks. Taking full advantage of infusionsoft’s powerful tools will save time, increase reve-nues, and improve client relations.

ipad apps for legal research

There are at least a couple low cost or no cost apps that are available for legal research. one that i have used that works well is Fastcase. The app is free and you can also sign up without being charged a fee. But if you want to add more than the most basic features, there will be a charge. A quick look at the Fastcase website shows $695 a year for one membership, and

$995 for the most loaded membership. you can also pay by the month.

moving to the cloud

i am in the process of moving all my software and data to a vir-tual server, which would mean that all my applications and data would run off a server in the cloud. i like this solution because my data will not reside on a single pC or server and i would not need to worry about backing it up. Additionally, working off a virtual server is ideal for a distributed/virtual work environment

(i.e., where users are in different physical locations) and would obviate the need for me to purchase equipment for other users.

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pAM FulMer

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2 oFFiCe MAnAGeMenT TechnologY

All a contract attorney, paralegal, assistant, etc., would need is an internet connection and the software allowing that person to connect to the virtual server. The iT experts at Centarus,inc., based in San Francisco, are getting me set up. i highly recommend them for iT support.

MORE RESOURCES

law office Software by aaron r. Feldmancclawyer.cccba.org/2012/07/law-office-software Via Contra Costa lawyer

Assessing the pros and cons of the myriad law office software available out there is like taking a trip down a rabbit hole. There are a multitude of products from which to choose.

The process of sifting through them is daunting, overwhelming and sometimes even exhilarating. it is hard not to be seduced by features that seem great, but which you may ultimately never use. The key is to look around at the options and at the same time look at your practice and your overhead to determine what products are the best fit for your office. read more...

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hardware

renting computers and hardware

My friend who opened up his own law firm told me how surprised he was at how cheap it is to rent the computers and the equip-ment from certain computer equipment rental companies. At the end of the lease, you have the option of buying the equipment that you have been leasing.

printers and Toner

To start, i used a small but sturdy Brother all-in-one for my printer/copier/scanner/fax and i recommend it. you save a lot of money (and space) from avoiding a big industrial copier (though there are times when i need to take larger jobs to Fedex office), but the new Brothers can handle up to 50+ pages of automatic feed scanning and copying – which is worth its weight in gold! But,

beware that toner costs more than you’d ever expect!

Toner is crazy expensive. And beware of cheap toner! i bought second-rate toner on Amazon, for a quarter of the price of oeM toner. Sure enough, my printer wouldn’t recognize that the re-placement toner cartridge was full. Also, it leaked yellow toner everywhere. i wound up buying the expensive name-brand toner.

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MORE RESOURCES

office Systems by matthew m. hartcclawyer.cccba.org/2012/07/office-systems Via Contra Costa lawyer This article touches on recommendations for phone systems: cell, land line, answering machines, as well as furniture, copiers, etc.

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2 oFFiCe MAnAGeMenT FInance/ budgeT

proFIT/loSS

i strongly recommend coming up with at least a one year budget before moving forward with your law practice. i did my first budget in QuickBooks 2013, but subsequently created a separate budget in Microsoft excel. i actually prefer working with the excel budget even though it probably makes more sense to keep all financial data together in QuickBooks.

FInance/ budgeT

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TruST accounT

i opened my trust account at the same time i opened my business operating account. According to the State Bar of California:

“[l]awyers who handle small amounts of money for their clients, or money that is held for a short period of time, must . . . deposit[] these funds into an interest on lawyers’ Trust Account (iolTA).”

(www.calbar.ca.gov/Attorneys/MemberServices/iolTA.aspx.) For most new solos, this will probably apply to most funds held in a trust account. A list of banks eligible to provide iolTA accounts is available at www.calbar.ca.gov/Attorneys/MemberServices/iolTA/eligibleinstitutions.aspx. When opening an iolTA account, an attorney will need to provide the bank with

1. A copy of the State Bar’s “notice to Financial institutions” form (downloadable from www.calbar.ca.gov/Attorneys/MemberServices/iolTA/Guidelines.aspx)

2. The State Bar’s federal taxpayer identification number.

Additionally, attorneys must update their state bar profiles when a new trust account is opened. ensuring proper accounting of an iolTA/trust account is beyond the scope of this Toolkit, but resources are available on the state bar website. i find myself using my trust account less and less frequently, as i rely more on credit cards for payment and security.

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2 oFFiCe MAnAGeMenT human reSourceS

emploYeeS

While i have not yet hired any employees, i believe a sole practitioner’s first hire should be an administrative assistant – whether traditional or virtual. With everything a sole practitioner needs to attend to – printing, scanning, mailing, and other administrative tasks – should be delegated to an administrative assistant. The more these tasks are farmed out, the more time will

be available for legal work. i recommend litigators open an account with Firstlegal or another filing and courier company.

A sole practitioner must be sure to properly classify the individual hired as an employee or independent contractor. employers must withhold income taxes, withhold and pay Social Security and Medicare taxes, and pay unemployment tax on wages paid to an employee, but not on wages paid to an independent contractor. (See www.irs.gov/Businesses/Small-Businesses-&-Self-employed/independent-Contrac-tor-(Self-employed)-or-employee%3F.) The California test and the federal test to determine whether a worker is an employee or an independent contractor differ in some cases. in California, the right of direction and control, whether or not exercised, is the most important factor in determining an employment relationship. At the federal level, the test to determine whether a worker is an independent contractor or employee requires considering behavioral control, financial control, and relationship of the parties. (See www.taxes.ca.gov/iCore.bus.shtml#Federal.) Before hiring your first employee, it may be a good idea to consult an employment attor-ney for further information, and perhaps a more senior attorney for an exemplar employ-ment agreement. My accountant recommended paychex for handling payroll.

human reSourceS

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conTracT workerS

When things get busy enough to require additional help with legal work, a sole practitioner may wish to hire a contract attorney rather than a full-time associate. This will give the sole practitioner a chance to get to know the contract attorney and become familiar with his or her work. if a good fit, the sole practitioner could continue working on other projects with the

contract attorney and potentially hire him or her. if not a good fit, the sole practitioner can always end the relationship at the conclusion of the project.

in addition to or in lieu of hiring a contract attorney, a San Francisco-based sole practitioner may consider taking on a law student intern. Students at San Francisco-based law schools (uC Hastings College of the law, university of San Francisco law School and Golden Gate university law School) are based here year-round, while many students at law schools in and around the Bay Area (uC Berkeley law School, Stanford law School, Santa Clara law School, uC davis law School and McGeorge law School) look for summer internships in San Francisco. For more information, contact the schools’ offices of career services.

Finally, i believe there is at least one paralegal school in the Bay Area that requires its students to complete an internship. Thus, there may be opportunities for additional paralegal help at no cost.

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vIrTual aSSISTanTS

i have looked into hiring a virtual assistant. i will likely do so in lieu of hiring an administrative assistant/legal secretary. depending on your practice, a virtual assistant could be a great solution for a solo attorney spending too much time on administrative matters but lacking the resources and/or space for a physically present administrative assistant/legal secretary.

A virtual assistant can do just about anything that does not require physical presence, e.g., answering phones, communicating with clients, preparing electronic documents for mailing.

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2 oFFiCe MAnAGeMenT human reSourceS

The two biggest drawbacks i foresee are an inability to print and deliver hard copy documents to me and to scan documents i receive at my office. i am attempting to retain as many of my files as possible in digital format, so it is frequently necessary for me to scan and shred. i would love to be able to farm this out to an assistant, but mailing documents to be scanned seems tedious.

Former paralegal dortha Hise (www.dorthahise.com) offers virtual assistant services through her company on an independent contractor basis.

polIcIeS

Sole practitioners should have a policy manual in place before hiring an independent contractor, employee or intern. it may be a good idea to reach out to a more senior attorney and ask to use his or her policy manual as an exemplar. in his book How to Start and Build a law practice, Jay Foonberg sets forth a list of topics that should be covered in a policy manual.

(see page 3 of this Toolkit for information about the book)

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2 oFFiCe MAnAGeMenT bIll collecTIon

collecTIon TIpS

bIll collecTIon

A number of different lawyers cautioned me upon hearing i was hanging out my shingle saying, “Be sure you get paid. Many people want a lawyer; fewer want to pay for one.” Most solos/small firm lawyers (as well as big firm lawyers) have horror stories about getting stiffed on the bill, and i think writing off some receivables is an inevitable fact of life, and should be built into

your business model/projections. That said, there are tools to help you collect:

• Send regular bills. don’t let a big receivable pile up by not sending out an invoice every month.

• ask for a substantial retainer. if a potential client balks at a $5,000 retainer, that may be a red flag even before you bill an hour.

• get an evergreen retainer. if the client’s always ahead, you don’t have to chase.• get an enhanced retainer as trial approaches. if you’re going to be limited in

your ability to withdraw, get a big chunk of money from your client in advance to limit your downside (if you lose at trial).

• Have provisions in your engagement agreement that specifies that any judgment or settlement will be paid to your trust account And that the client agrees to your subtracting any outstanding balance owed from said judgment or settlement before paying your client.

• Meet the potential client in person, and trust your gut instincts about them.• credit checks – i’ve never run one, but in theory it’s a good idea. My engagement

agreement authorizes me to run a credit check on the client.• don’t be timid about following up and demanding that you get paid.

MATT GluCk

credIT cardS

Consider accepting credit cards. The vast majority of my clients prefer to pay via credit card. lawpay is my credit card provider and i am very happy with them. lawpay takes a percentage of each charge and also charges a flat monthly fee. lawpay permits clients to pay via credit card into either a trust account or operating account. lawpay also complies with the strict

California ethics rules pertaining to credit cards and trust accounts. (See State Bar Formal opinion 2007-172, available at ethics.calbar.ca.gov/linkClick.aspx?fileticket=ngt5Wx-Qswe%3d&tabid=838.)

Have clients provide credit card information up front as security in addition to, or in lieu of, a deposit. include a clause in the fee agreement authorizing the attorney to charge the credit card only (1) if a payment is a certain number of days past due or (2) if the client otherwise consents.

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2 oFFiCe MAnAGeMenT bIll collecTIon

MORE RESOURCES

“getting paid” by luis m. montescclawyer.cccba.org/2012/07/getting-paid Via Contra Costa lawyer lawyers, like most business people, often have difficulty getting paid for the professional services they have rendered.

“accepting credit cards” by gary dubrovskycclawyer.cccba.org/2012/07/accepting-credit-cards Via Contra Costa lawyer This article address the ins and outs of credit card transactions, iolTA accounts and fees charged by banks, and the professional services they have rendered.

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2 oFFiCe MAnAGeMenT buSIneSS STrucTure

llp, llc and Sole proprIeTorShIp

buSIneSS STrucTure

if you are starting out solo, your two principal options are to operate your law practice as a sole proprietorship or as a professional corporation. A sole proprietorship does not create a separate legal entity and is the simplest structure for tax purposes, but does not provide the sole proprietor with any shield from liability. A professional corporation creates a separate

legal entity, is treated differently than a sole proprietorship for tax purposes, and provides greater protection from liability. i ultimately chose to open my law office as a sole propri-etorship but may opt to become a professional corporation if/when i hire an employee.

Solo practitioners and small firms have several business structures available to them. Sole proprietor A solo practitioner can practice as a sole proprietor. The sole proprietor form provides no liability protection: as a sole propri-

etor, you are personally responsible for claims arising from your business, and your per-sonal assets are at risk. insurance is your best friend. Make sure you have a good liability coverage for your premises to cover “slip and fall” claims and professional liability insurance for claims arising from your practice. umbrella insurance is a good idea; it provides broad coverage for claims of personal liability. For income tax purposes, your income as a sole practitioner is reported on your individual income tax return. California does not impose a business or entity-level tax on the sole proprietor. limited liability company The limited liability company is not available to lawyers. California Corporations Code section 17375 prohibits limited liability companies from rendering professional services, including legal services.

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AliCiA GáMeZ

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2 oFFiCe MAnAGeMenT buSIneSS STrucTure

limited liability partnership The limited liability partnership is available to multiple-attorney practices. The limited liability partnership form allows partners to limit their vicarious liability for their partners’ and employees’ acts, provided that the llp is registered and maintained in accordance with statutes and the State Bar’s limited liability partnership rules and regulations. The llp does not protect you (or your personal assets) from claims arising from your own actions or from errors or omissions in your own legal practice. Again, professional liability insurance provides protection in the event of a claim arising from your legal practice, and umbrella insurance provides protection for other claims of personal liability. For tax purposes, there is no federal income tax at the entity level. llps are taxed as partnerships, which means business income flows through to the partners and is taxed on their personal income tax returns. California does impose an $800 annual tax on the llp but not an entity-level income tax (www.ftb.ca.gov/businesses/bus_structures/llpartner.shtml). in addition, the State Bar imposes fees and requirements on the llp (www.calbar.ca.gov/Attorneys/MemberServices/limitedliabilitypartnership.aspx; rules.calbar.ca.gov/rules/Title3programsandServices.aspx). professional corporation The professional corporation form is available to solo and to multiple-attorney practices. like the llp, this liability shield can serve to protect the personal assets of the practice owner from certain claims. The professional corporation does noT provide a liability shield for malpractice or for actions that the individual attorney personally takes. For the solo practitioner who performs most tasks personally, the professional corporation pro-vides precious little liability protection. it may protect against “slip and fall” claims, but not if you were responsible for the premises. For tax purposes, the corporate form imposes an entity-level tax at the state and federal level, though the owners may elect to be taxed as an S-Corporation (www.irs.gov/Busi-nesses/Small-Businesses-&-Self-employed/S-Corporations). California imposes an $800 per year, minimum franchise tax and an entity-level tax on the net income of the corpora-tion (www.ftb.ca.gov/businesses/bus_structures/cCorp.shtml). California also imposes a tax on the net income of S-Corporations (www.ftb.ca.gov/businesses/bus_structures/sCorp.shtml). As with the llp, the State Bar imposes fees and requirements on the profes-sional corporation (www.calbar.ca.gov/Attorneys/MemberServices/lawCorporations.aspx; rules.calbar.ca.gov/rules/Title3programsandServices.aspx).

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MORE RESOURCES

“choice of entity” by george cabot cclawyer.cccba.org/2012/07/choice-of-entity Via Contra Costa lawyer This article discusses the selection of the form of entity under which to practice law is different depending on whether the lawyer is a solo practitioner or in partnership with other lawyers.

2 oFFiCe MAnAGeMenT buSIneSS STrucTure

CHApTer 3

MArkeTinG And BuSineSS deVelopMenT

32

Bu

i l d i n G u p

Marketing and business development include all of the strategies you implement to fulfill the dream of why you became a lawyer in the first place: to make a living while serving

appreciative clients. This section will provide you with innovative ways to add new clients and grow revenue. your goal is to become “top of mind” when members of your target audience have a need for your practice skills. Go through this section to learn about: websites, branding, social media, advertising, networking, refer-ral services, volunteering, the art and science of selling, the mindset of successful rainmakers and much more.

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3 MArkeTinG/ BuSineSS deVelopMenT webSITe

webSITei recommend Brett Fullmer at 888-645-9449 or brett@quickonlinestore; www.quickonlinstore.com. He made my website www.gallenberglaw.com. He is friendly, affordable and available for any questions you may have. He can make the up-dates for you and maintain it. He doesn’t provide content. However, something i really like about him is that he can set up

your website in such a way that you can do your own updates (which is really cost effective), basically he will set it up so you can do updates just by typing in content as you would do in a Microsoft Word document) you wouldn’t need to know how to do HTMl). He also can train you on Seo (search engine optimization).

His rates for attorney websites are in the $1,000-$2,000 range depending on the specifics of your website. He can also help you set up Google analytics, and your email. He charges me by the hour, therefore, i only pay for the time he actually spends on my website, when i need him.

Website development strategic support: Howard Hale at h@howard-hale.com, 206-355-0313, or www.howard-hale.com.

i bought a Wordpress theme and built my website myself.www.wordpress.org

roSA ViGil -

GAllenBerG

dAVid kinG keller

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3 MArkeTinG/ BuSineSS deVelopMenT webSITe

ken Matejka with legal ppC will set up and maintain websites, and does an excellent job running Google ad campaigns for all marketing budgets. He specializes in search engine optimization for solo practitioners and small firms. Contact information is 415-513-8736, ken@legalppc.com, www.legalppc.com.

i recommend erin Ferree: www.elf-design.com or elf@elf-design.com.MArGAreT

MurrAy

eMMy pASTernAk

Jessica Gore of Gore Creative is a multi-talented designer who does numerous projects for BASF. She designed www.sfbar.org and continues to produce electronic newsletters and special projects for the bar. She understands the legal market and the challenges in marketing a law practice. Her services cover branding, print and online marketing, communica-

tions and design strategies. She can guide you through a redesign of your logo, website or marketing materials, counsel you on best practices for designing and writing for the web or simply provide a comfortable place to vent your frustrations and sound out ideas.www.gorecreative.com Virginia “Ginger” Bisek is a copy writer, editor, content strategist and project assistant who believes that multi-tasking makes for a more interesting work day. She took BASF’s 2005 website and did a complete overhaul working closely with each department’s “Subject Matter experts” (SMes) to create copy that briefly and concisely told the story of the work of The Bar Association of San Francisco. She also understands the work of a solo/small law firm and has written copy for numerous clients across the united States.www.virginiabisek.com

A Tip on WeB deSiGn And Copy-WriTinG FroM BASF

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3 MArkeTinG/ BuSineSS deVelopMenT brandIng

brandIngWhat is personal branding and why do attorneys need to brand? personal branding is the process whereby people and their careers are marked as brands. personal branding is a form of self-market-ing – promoting yourself as a complete package which includes not just your knowledge and expertise but your appearance, your clothing, and how you carry yourself. By creating a brand around

yourself, your name, and your career, you build a reputation that is attractive to others so that you can generate business and expand your network (and hopefully, your net worth!).

Today with the prolific use of the internet and social media, a personal brand is an essential part of legal career success, and at the very least, of career survival. As an attorney, your word is your reputation and your reputation is your brand. Attorneys sell their expertise, knowledge, and problem-solving abilities, an intangible skill set known as “intellectual property.” This makes the legal profession ideal for personal branding so attorneys can set themselves apart based on their strengths, skills, and personality.

To brand properly, a strategy is needed – one that considers the target audience, your career goals, and the appropriate platform(s) to reach your audience and promotes your brand consistently. For now, to get you started, here are a few links for you to explore personal branding:

• california minority counsel program (cmcp) personal branding blog: www.cmcp.org/?blawg_personalbrand

• eight Tips for attorneys to build Your personal brand: www.personalbrandingblog.com/8-tips-for-attorneys-to-build-your-personal-brand

• personal branding – You are what They google: www.theprlawyer.com/2012/10/personal-branding-you-are-what-they.html

• developing your personal brand: www.americanbar.org/publications/law_practice_today_home/law_practice_today_archive/november11/tips-from-a-fellow-attorney.html

• baSF webinar: “Brand you: professional Branding for Attorney Success” www.sfbar.org/basf-bulletin/2013/Feb2013/professional-branding.aspx

MArinA SArMienTo

FeeHAn

36

lastly, positive Counsel, a legal career consulting firm, helps attorneys build a personal brand that distinguishes you from the competition. Through the use the 360reach personal branding assessment (www.reachcc.com/360reach), positive Counsel creates a branding strategy that capitalizes on your strengths unique abilities. To learn more about personal branding for attorney success, go to: www.positivecounsel.com.

i worked with a fantastic local graphic designer, eli Blair Media, to design my logo and create business cards, letterhead, and enve-lopes. eli Blair Media used gotprint.com for printing. www.eliblairmedia.com

3 MArkeTinG/ BuSineSS deVelopMenT brandIng

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MORE RESOURCES

“branding Yourself online: Tips for Spinning Your Story with blogs and other Social media” by david king kellertinyurl.com/Brandingyourselfonline Via the American Bar Association Book publishing division There has been an explosion of ways lawyers can use the internet to build a personal brand. This article offers tips for spinning your story with blogs and other social media.

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3 MArkeTinG/ BuSineSS deVelopMenT SocIal medIa

SocIal medIaethical considerations: For social media as for any other medi-um, make sure you understand and comply with State Bar of Califor-nia rules governing attorney advertising and solicitation. See State Bar of California Standing Committee on professional responsibility and Conduct Formal opinion no. 2012-186.

ethics.calbar.ca.gov/portals/9/documents/opinions/CAl%202012-186%20%2812-21-12%29.pdf

Merri BAldWin

MORE RESOURCES

“Social media marketing” by Ivette m. Santaellacclawyer.cccba.org/2012/07/social-media-marketing/Via Contra Costa lawyer The standard ways of marketing our law practices – yellow pages, radio or TV ads – have given way to less expensive or no-cost solutions with the same or better results – social media. We hear so much about social media, but what exactly is it?

“Social media For lawyers” by david king kellerhttp://tinyurl.com/SocialMedia4lawyers Facebook, linkedin and Twitter are leading social networking sites, each offering a unique platform to help you share information with your personal and professional contacts. Get an indepth overview of using social media tools in your practice.

Some easy steps to creating your brand in social media:

linkedIn

• Set up a company page on linkedin blog.linkedin.com/2008/11/17/creating-company-profiles-on-linkedin/

• Send status updates, use images so your updates stand out• Make sure you have a cover photo• Join groups and participate in them – comment, post discussions, etc.

www.socialmediaexaminer.com/5-ways-to-use-linkedin-groups-to-build-influential-con-nections

Twitter

• learn about @mentions, hashtagging: support.twitter.com/articles/166337-the-twitter-glossary#• Tweet about your practice area using hashtags #Familylaw, #immigration, etc.

• Share news and resources by retweeting (rT)• link back to blog posts or content on your website• live tweet from seminars you attend: dev.twitter.com/media/live-tweeting• Follow attorneys and firms in your practice area• Follow local and national law reporters • Follow bar associations

Technology Tuesday webinars on Social media [password for all videos: techreplay]

• Social Media roi: vimeo.com/59613478• Twitter for lawyers: vimeo.com/40753943• Blogging 101 for lawyers: vimeo.com/37261164

TipS on SoCiAl MediA FroM BASF

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3 MArkeTinG/ BuSineSS deVelopMenT SocIal medIa

39

3 MArkeTinG/ BuSineSS deVelopMenT adverTISIng

adverTISIngGoogle Adwords is a self-serve way to market your business at whatever budget you can afford. it is a great way to start bringing traffic to your website without breaking the bank. (Though i have found out, that the more money you invest into it, the more it pays for itself).

oTiS C. lAnderHolM

i think Google AdWords is more effective in smaller markets (e.g., Truckee versus San Francisco). you won’t be able to afford to rise to the top of the search list with the bigger law firms in larger markets.MArk l.

lASSer

40

3 MArkeTinG/ BuSineSS deVelopMenT neTworkIng

neTworkIngrecommendations for building Your business Through networking

• Article: network like a pro: tinyurl.com/networklikeApro • Among both attorney and non-attorney groups

• non-Attorney Groups: • Business networking international (Bni)• rotary Groups• Association memberships

• neighborhood Associations (e.g., Mission Merchants Association) • Chamber of Commerce

• Attorney Groups: Bar Associations (BASF, Barristers Club, Minority Bar Coalition, American Bar Asso-ciation) Cle groups (Attorney Action Club and San Francisco lawyers network).

• listservs• Mentorship• Alumni associations• College• law school• Sports associations

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3 MArkeTinG/ BuSineSS deVelopMenT reFerral ServIceS

reFerral ServIceSBASF maintains a state bar certified lawyer referral and information Service (lriS), which was established in 1946. knowledgeable, multi-lingual legal interviewers refer prospective clients to pre-qualified, ethical, insured attorneys in

good standing with the State Bar of California, in over 20 principal practice areas and over 100 sub-areas of law. in addition, referrals are made to over 250 different legal resources in the Bay Area, when it is determined that the client’s needs are better served through a governmental or community based organization.

Attorneys interested in receiving client referrals from lriS in their area of practice should apply to become lriS members and must have a San Francisco office.

The lriS Attorney-to-Attorney Advice program and reduced Fee Services program are available for newer attorneys who wish to participate while they are gaining legal experi-ence.

please contact Carole Conn, lriS director of public Service programs, at 415-782-8934 or cconn@sfbar.org to learn more, or visit www.sfbar.org/lawyerreferrals/att-join.aspx.

T ipS on THe lAWyer reFerrAl And inForMATion

SerViCe FroM BASF

42

3 MArkeTinG/ BuSineSS deVelopMenT volunTeerIng

volunTeerIngThe Justice & diversity Center’s (JdC) legal Services programs (www.sfbar.org/jdc/legal-services/index.aspx) provide pro bono legal and related social services to low-income and homeless San Francisco residents. JdC provides these services

primarily through the use of volunteer attorneys. JdC takes a holistic approach to legal services, seeking to address the full range of legal and social services issues that prevent clients from retaining stability in their lives.

Becoming involved with JdC’s legal Services programs is an excellent way to gain expe-rience as well as develop and hone your legal skills. Volunteering for JdC’s Family law, eviction defense, and/or Consumer projects provides you with extensive substantive law training, supervision and support from JdC staff, litigation experience and client contact, as well as introductions to attorney mentors. For more information about volunteering with JdC, email probono@sfbar.org.

T ipS on THe JuSTiCe & diVerSiTy CenTer

oF BASF

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3 MArkeTinG/ BuSineSS deVelopMenT pr / medIa

preSS releaSeS / medIaWorking with the media can be frustrating at times and exhilarating at others. There is nothing better for your business than see-ing your name and law firm in print, but there is nothing worse than seeing you or one of your attorneys misquoted. So how do you manage the message?

one of the keys to working with the media is to always be ready for that 10 second sound bite. it can be a quote, a statement of fact or an opinion, but it must be well thought out and to the point. This day and age, nothing is off the record (as you have seen when politicians are caught making comments in front of a live microphone). if you talk to a reporter or answer an email, assume every word that you have said or written will appear in tomorrow’s paper or on the radio. Always look your best, as a photo or video can be posted on Facebook or on youTube instantly.

here are some other tips for working with the media:

• Follow reporters on social media, especially on Twitter, as most reporters and publications have a presence here

• Subscribe to local newspapers printed and/or online• When you post on social media, make your post one that will draw the attention of

a reporter. For example, if you are an expert in a specific area of law and there is breaking news that relates to that topic, post something using the hashtag of the case name in question. This is one way a reporter might find you.

• work to become a subject expert or go-to person for information in your practice area

• Introduce yourself to a reporter or editor at a social occasion and exchange busi-ness cards

• participate in seminars and workshops on media

TipS on pr/ MediA

FroM BASF

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3 MArkeTinG/ BuSineSS deVelopMenT pr / medIa

how do you get yourself known in the legal community and generate a buzz around your practice?

• Send out press releases (electronic, not paper) when your firm has news of impor-tance

• write op-eds for newspapers or letters to the editor to get your opinion known (note that most papers limit the number of submissions in a year). The recorder, for example, has a section in their newspaper called “in practice” where attorneys are invited to submit areas in a substantive law, practice areas or law firm management. The contact for submissions is Vitaly Gashpar and he can be reached at vgashpar@alm.com.

• write articles for alumni magazines and blogs and bar journals• Start a blog and consistently publish at least weekly• produce videos about yourself and your firm; videos are a great way to

market yourself• keep your website current and high on the search engine lists; consider hiring

an Seo expert to help you with key word advertising

if you have a busy practice and cannot handle the added work of public relations and social media, outsource that work. Here are some ways:

• Hire a public relations or communications firm which specializes in the legal industry• Hire a contractor who can help you on an hourly basis or on a monthly retainer; this is

a great way to get into the social media arena• Subscribe to a service which filters social media information and delivers to you a

digest of important news and cutting edge topics And when a crisis happens to you or your firm, hire an expert! you may need to save your reputation, your practice, your clients and your future.

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3 MArkeTinG/ BuSineSS deVelopMenT pr / medIa

Here are some vendors to consider: blattel communicationsA full-service communications and marketing firm dedicated to the legal industry. They handle public relations, marketing and crisis communications and build pr and marketing plans which will give you a clear roadmap to follow. www.blattel.com whittaker communicationsCarl Whittaker has over 25 years of experience assisting law firms and non-profits with public relations and marketing matters. He provides focused, practical advice on public relations, positioning, marketing and communications planning, and website develop-ment. www.whitakercom.com Infinite public relationsoffers professional services and litigation/crisis communication to companies in law, financial services, accounting, and consulting. They use creative storytelling, time-tested public relations methods, and knowledge of their clients’ businesses to effectively place them in top-tier, targeted publications and media outlets. www.infinitepr.com

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3 MArkeTinG/ BuS. deVelopMenT SpeakIng appearanceS

SpeakIng appearanceSThere are many ways that an attorney can market themselves and their firm. Below, there are several resources on how to develop business, market your firm and sell your services. However, one of the most effective ways to sell yourself is to allow

people to know who you are and how you stand apart from other attorneys in your practice area.

if your goal is to develop business, you should be looking for opportunities to get in front of potential clients and/or others who might be in a position to refer cases to you. This can include speaking on specific areas of law; presenting on ways to solve problems (legal and pre-legal); teaching others how to develop an expertise in an area of practice, etc.

opportunities to speak and present exist in the following places:

• Metropolitan, local, and national bar associations• For-profit continuing legal education organizations• non-legal trade and business associations• law school classes (be a substitute for one night for an adjunct professor)• Community organizations such as elder centers, religious organizations, small business

groups, etc.

your target audiences are, 1) potential clients, and, 2) others (including lawyers) who can refer matters to you that they themselves cannot handle. people will remember you and refer cases to you based upon your presentation as an expert on a particular topic. These connections can also lead to other lawyers inviting you to co-counsel on a matter given your expertise in a specific area.

Think of these speaking engagements as one-on-one networking on steroids! you have the opportunity to talk to potentially 100+ people at once about your skills, knowledge and problem solving ideas. The key is to remember that in every presentation you give you should provide the audience with examples of how you have solved “real” problems with your skills and knowledge.

TipS on SpeAkinG AppeArAnCeS

FroM BASF

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3 MArkeTinG/ BuS. deVelopMenT SpeakIng appearanceS

Your goals in making speaking appearances:

• Show others you are a knowledge expert in particular area of law• Show others how to solve problems in a particular area of law• Teach others how to become a knowledge expert• Answer questions• Connect with the audience• engage the audience where appropriate• impress the audience so they will hire you as their lawyer and/or refer a client, family

member or a friend to you; or ask you to co-counsel in a case with them

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3 MArkeTinG/ BuS. deVelopMenT more reSourceS

MORE RESOURCES

Get guidance on strategies and tips on business development for your solo or small law firm. All articles are by david king keller.

“rainmaker’s mindset mastering motivation and Technique” http://tinyurl.com/rainmakerMindset

“making Time For business development:making The Impossible possible”http://tinyurl.com/FindingBusinessdevTime

“The art and Science of Selling“ http://www.amazon.com/dp/0470874368

“The neuroscience of Stress reduction how to Stay centered-aware-resourceful” http://www.kbdag.com/Siteresource/Site_108939/Customize/image/pdF-4.pdf

“major benefits of the micro-break” http://tinyurl.com/Micro-BreakBenefits

“The optimal performance State and how to create It” http://tinyurl.com/optimalperformance

“network like a pro” http://tinyurl.com/networklikepro

“Social media For lawyers” http://tinyurl.com/SocialMedia4lawyers

“branding Yourself online” http://tinyurl.com/Brandingyourselfonline

CHApTer 4

THe prACTiCe oF lAW

49

TH

e n

i T T y G r i T T y

once you’ve set up your law firm, now it is time to practice law! Much of that is beyond the scope of this Toolkit, and be-

yond the scope of the books and other ma-terials referenced at the beginning of this outline. But here are some basic insights on getting started, and some resources we hope you’ll find useful.

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4 THe prACTiCe oF lAW pracTIce areaS

chooSIng Your pracTIce areaS

if you don’t yet know what type of law you wish to practice, i would follow Jay Foonberg’s advice and be a general practitioner for your first six months to get a better sense of the practice areas you enjoy the most. ultimately, focusing on two or three practice areas is probably a good idea. (see page 3 of this Toolkit for information about the book)

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clIenT accepTanceensuring that a client is going to be a good fit for you is important. you should not accept every opportunity that comes your way, even if you are first starting out. one of the most important questions is whether the client is going to pay your bills. Many more people want legal services than are willing or able to pay for them. There are a variety of ways to try to gauge

whether a potential client is a potential paying client – one item is to ask for a reasonable but substantial retainer up front, and see how the client responds. if you get pushback on a retainer that represents only ten hours of your time, you might interpret that as a red flag.

you also want to avoid situations where a client is likely or certain to be unhappy with your work. This can arise when a client has unrealistic expectations about what you can accomplish or what the engagement is going to cost. i recently declined an engagement where there was only $15,000 at issue. i felt that it was very likely that i was going to have to charge at least the amount or more, and after several conversations, i did not think that the potential client recognized that reality, and that she was going to be unhappy with the outcome of the engagement. even if she paid the bill (and i thought it was likely that she would not), you don’t want an unhappy client or former client.

MATTGluCk

4 THe prACTiCe oF lAW clIenT accepTance

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4 THe prACTiCe oF lAW clIenT accepTance

MORE RESOURCES

“Screening clients” by Spojmie Jasiricclawyer.cccba.org/2012/07/screening-clients/ Via Contra Costa lawyer Whether you are a seasoned attorney or new to the legal profession, you can never be too careful in creating a systematic approach to screening clients. establishing and implementing an effective client screening system can significantly reduce the risk of a grievance or malpractice claim.

baSF’s attorney/client Fee dispute programsee page 59

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4 THe prACTiCe oF lAW Sample docS/ reSearch

Sample documenTS / reSearchIng The law

The rutter Guides in Westlaw and the Matthew Bender Guides (as well as California Forms of pleading and practice) in lexisnexis both provide many excellent sample documents.

The San Francisco law library offers free access to Westlaw/lexisnexis in hour-long intervals. it is an excellent resource and

probably sufficient for an attorney just starting out. i looked into plans with both Westlaw and lexis. Although i had always used Westlaw, i ended up getting a plan with lexis due mainly to the steep discount they offered me as a new solo.

eriC ToSCAno

MORE RESOURCES

“legal research” by kristen bargmeyercclawyer.cccba.org/2012/07/legal-research/ Via Contra Costa lawyer Are you looking for a good value in legal research? We all need in-formation and for those of us watching our overhead, legal research databases can be prohibitively expensive. luckily, there are some legal research resources that can help a solo or small firm get the information they need for less.

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4 THe prACTiCe oF lAW Sample docS/ reSearch

lexisnexis california Judicial council Smart Forms

BASF members receive free access to over 1,000 Smart Forms, including California Judicial Council Smart Forms and Califor-

nia County Forms. www.sfbar.org/membership/benefits_tools.aspx

it’s a quick, easy way to assemble the latest forms, featuring a fillable, tab-through format; documents can be saved as pdFs.

BASF members save on a wealth of other products and services from lexisnexis – including research, practice management, client development, and more.

BASF membership is required to access lexis/nexis products and services.

T ipS on SAMple doCuMenTS And leGAl reSeArCH

FroM BASF

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4 THe prACTiCe oF lAW eThIcal/ proF. reSponSIbIlITY

eThIcal / proFeSSIonal reSponSIbIlITY

•ethics cle online from baSF tinyurl.com/Cle-ethicalWaysToGrowpractice

•baSF ethics committee hotline: call BASF front desk for a referral at 415-982-1600

•california State bar ethics hotline: 800-238-4427 or 415-538-2150

dAVid kinG keller

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4 THe prACTiCe oF lAW lITIgaTIon

lITIgaTIon one of the most expensive but necessary programs that a litigator may purchase is rules-based calendaring software. The decision of which calendaring program to select is often driven by what integrates with the document management software that you choose, e.g., Time Matters integrates with lawToolBox and practice Master integrates with Compulaw. other providers

include Westlaw, lexis and Abacus. However, rather than purchasing calendaring software or manually calculating dates, small firms also have the option to use an online calendaring service that charges a per case fee, such as deadlines.com and lawToolBox.com.

deadlines.com has a basic pricing structure of $20/case/month for one to five cases or preferred pricing of $15/case/month for six or more cases. lawToolBox offers two pricing options – a one-time per case fee and a monthly subscription rate. There is also an additional monthly fee to synch dates from lawToolBox into outlook or Time Matters which varies based on the number of users. The synching feature is included in the monthly rate on deadlines.com.

online calendaring providers suggest that per case charges can be passed on to clients. Before doing this, you should consider how passing on such an expense will be received as few, if any larger firms would directly pass on the cost of purchasing calendaring software.

dee A. WAre

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4 THe prACTiCe oF lAW lITIgaTIon

MORE RESOURCES

“Storytelling & the new media Jury” by Steven Thompson & andrew lloydcclawyer.cccba.org/2012/07/storytelling-the-new-media-jury/ Via Contra Costa lawyer in today’s courtroom, litigators’ paramount concern is keeping the ju-ry’s focus on the facts and evidence introduced in a case. Static photos, flipcharts, chalkboards, foam core boards, and separate pages of docu-ments will certainly help convey your points, but a modern jury expects and responds better to a more visual and dramatic experience. By riding the wave of multimedia presentation technology that is changing litigation in America, and by learning how it can apply to your practice, you will more effectively present your case in Adr, hearing, settlement conference or at trial.

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4 THe prACTiCe oF lAW repreSenTaTIon agreemenTS

repreSenTaTIon agreemenTS

you need to be familiar with the requirements in the Business & professions Code that govern fee agreements and billing: Business and professions Code Section 6146 6149.5. prepare form fee agreements that comply with the statutory and ethical requirements and that are tailored for your practice and the type of matters and clients you expect to work with. The State Bar

of California has sample form fee agreements that you can use as a basis for your own forms. www.calbar.ca.gov/portals/0/documents/mfa/Sample-Fee-Agreement_%20r.pdf

Merri BAldWin

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4 THe prACTiCe oF lAW aTTorneY-clIenT Fee dISpuTeS

aTTorneY-clIenT Fee dISpuTeS

Try to avoid fee disputes with your clients through frequent communication; the use of detailed time entries on bills; prompt and regular billing; management of accounts receivable; and the collection of advance deposits towards fees. Fee collection matters often provoke legal malpractice claims, so try to avoid being in that position.

if you do find yourself in a situation in which you need to take action against a client for unpaid fees, make sure that you comply with the Mandatory Fee Arbitration Act provisions of the Business & professions Code, section 6200 et seq. The Bar Association of San Francisco has good resources for both attorneys and clients, including the notice of Client’s right to Fee Arbitration that you are required to serve before you commence a fee action. www.sfbar.org/adr/feedispute.aspx

BASF’s Fee dispute program began when the Mandatory Fee Arbitration Act was enacted in 1978. This program provides a means for attorneys and clients to resolve a fee dispute and avoid the time and expense of taking a dispute to court. At

issue is the amount of fees and/or costs the client must pay, or has already paid, to the attorney. www.sfbar.org/adr/feedispute.aspx

Merri BAldWin

A Tip ABouT ATTorney-ClienT Fee diSpuTeS FroM BASF

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appendIx

appendIx

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appendIx A mInd The gap

mind the gap offers opportunities for under/unemployed attorneys

2013 BASF president Christoph kearney, keker & Van nest, announced one of his initiatives at his installation on december 11, 2012, that focuses on attorneys in their first few years of practice, or those in transition.

The initiative, titled Mind the Gap (MTG), is a play on words for attorneys to not get lost in the gap between law school and practice, or big firm and solo practice. The goal of the Mind the Gap initiative is to provide recent law school graduates who are unemployed or underemployed

with training, work experience, mentorship and debt reduction information.

This initiative consists of five key components. These include:

1. Training: practical/lawyering skills training, as well as information regarding starting a practice.

2. experience: Hands-on experience with the Justice & diversity Center (JdC) case work.3. mentoring: Mentoring from JdC staff attorneys and other volunteers, including

alumni networks.4. connections: networking and connecting with firms for potential contract or other

legal positions.5. debt reduction: debt reduction information and seminars.

A monthly electronic newsletter is sent to MTG participants, which includes the latest infor-mation on the key components, as well as “Trending” information such as jobs, announce-ments and articles of interest. An archive of past newsletters [www.sfbar.org/mind-the-gap/mtg-resources.aspx#enews] can be found within the MTG webpages. [www.sfbar.org/mind-the-gap/]

want to participate? email mindthegap@sfbar.org.

want to become a mentor? email mindthegapmentor@sfbar.org.

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appendIx B acknowledgemenTS

The Bar Association of San Francisco (BASF) gratefully acknowledges the following peo-ple who were instrumental in the preparation of this Solo/Small Firm Toolkit:

merri baldwin rogers Joseph o’donnell

marina Sarmiento Feehanpositive Counsel

pam Fulmernovak druce Connolly Bove & Quigg alicia gámez law office of Alicia M. Gámez matt gluck law office of Matthew J. Gluck david king kellerkeller Business development Advisory Group

otis c. landerholmlanderholm law office

mark l. lasserlasser law office

margaret murraylaw offices of Margaret e. Murray

eric Toscano Toscano law

rosa vigil-gallenbergThe Gallenberg law Firm

dee a. wareWare law

baSF StaffCarole Conn kerstin Firmin Sayre Happich yolanda Jackson leonard lun Mairi Mckeever Ann Murphy emmy pasternak Susan Salkind