Kerry M. Lavelle - The Business Guide to Law
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Creating and Operating a Successful Law Firm
Cover design by Jill Tedhams/ABA Publishing.
The materials contained herein represent the opinions of the authors and/or the editors, and should not be construed to be the views or opinions of the law firms or companies with whom such persons are in partnership with, associated with, or employed by, nor of the American Bar Association or the Solo, Small Firm and General Practice Division unless adopted pursuant to the bylaws of the Association.
Nothing contained in this book is to be considered as the rendering of legal advice for specific cases, and readers are responsible for obtaining such advice from their own legal counsel. This book is intended for educational and informational purposes only.
2015 American Bar Association. All rights reserved.
No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise, without the prior written permission of the publisher. For permission contact the ABA Copyrights & Contracts Department, .
Library of Congress Cataloging-in-Publication Data
Lavelle, Kerry M., author.
The business guide to law: creating and operating a successful law firm /Kerry M. Lavelle.
pages cm
Includes index.
e-ISBN: 978-1-63425-237-9
1. Law offices--United States. 2. Practice of law--Economic aspects--United States. 3. Law offices--United States--Management. I. Title.
KF315.L36 2015
340.068--dc23
2015015638
Discounts are available for books ordered in bulk. Special consideration is given to state bars, CLE programs, and other bar-related organizations. Inquire at Book Publishing, ABA Publishing, American Bar Association, 321 N. Clark Street, Chicago, Illinois 60654-7598.
www.ShopABA.org
To my mom and dad, Martin and Patricia Lavelle, for demonstrating to me my first example of an endearing partnership; To my wife, Lyn, the greatest partner one can ever have; and To Tim Hughes, Ted McGinn, and Matt Sheahin, my first law partners, for believing and buying in (both figuratively and literally) to these disciplines, principles, and concepts that are required to build a great law office.
Section 1
The Start-Up
Chapter 1
While Still in Law School
Chapter 2
General Thoughts on the Hours Required
Chapter 3
Working on Your Business and in Your Business
Chapter 4
The Five-Tool Attorney
Chapter 5
Core Decisions
Chapter 6
The Necessities
Chapter 7
Finding Office Space
Chapter 8
Departments in Your Law Office; Law Office Management
Chapter 9
Billing
Chapter 10
Collections
Chapter 11
Specialist versus Generalist
Chapter 12
Social Media Networking
Chapter 13
Traditional Networking
Chapter 14
Clients
Chapter 15
Best Practices
Chapter 16
Checklists and Document Library
Chapter 17
Perils of Being a Solo Practitioner
Chapter 18
Ethical Rules and Avoiding Disciplinary Action
Section 2
Growing a Law Practice
Chapter 19
General Concepts in Growing a Law Practice
Chapter 20
Hiring Support Staff
Chapter 21
Hiring Attorneys
Chapter 22
Hiring the Right People
Chapter 23
Leadership
Chapter 24
Building the Business Plan
Chapter 25
Firm Management
Chapter 26
Marketing and Lead Generation System
Chapter 27
Lead Conversion
Chapter 28
Client Fulfillment and Satisfaction
Chapter 29
More Than Profits, You Need a Winning Culture
Chapter 30
Building a Winning Culture
Chapter 31
Segregating Practice Groups and Management Work
Chapter 32
The Income Partner
Section 3
The Succession Plan
Chapter 33
The Succession Cycle
Chapter 34
What Are You Really Selling? The Valuation Analysis
Chapter 35
The Preliminary Disclosure; Testing Interest
Chapter 36
Financing
Chapter 37
The Agreement
Chapter 38
The New Management Team
Chapter 39
Are You Really Ready to Sell Below 50%? 33%?
Chapter 40
Fixing the Mature Practice
Chapter 41
The Small Firm Merger
What intrigued me about writing this book? I recently visited a local bookstore and checked http://www.Amazon.com to see what other books exist on starting and growing a law practice. Initially, I was shocked by the amount of material that was out there for an individual wanting to start his or her own law practice. I took the time to review the books that I have used over the years and also investigated the new books that are on the market for growing a law practice.
In a very short period of time, I was energized by the vision I had for this book as being very different from anything available in the marketplace.
Over twenty-five years ago, I purchased a copy of How to Start & Build a Law Practice by Jay G. Foonberg, and that wonderful book provided me guidance and inspiration at the time I needed it most. However, after the jumping off point of starting my own practice, I found myself learning as I went along, reading not only law practice books but also business books that provided a completely different insight on how to run a business, which also happens to be a law firm.
There are many outstanding books written by law professors, judges, and many young lawyers who started a law practice that provide guidance and methodology for answering many of the initial questions that a young practitioner would have: Where do I set up my office? How do I best take advantage of social media? What business entities do I use to structure my practice? How much time and economic analysis go into the office design and furnishing? How much money do I spend on technology?
This book is completely different.
This is a business book. While it will answer all those necessary questions (and more) that are important in creating and growing a unique business known as a law firmI am a lawyer who started and grew a law practicethis book goes through in great detail the time needed by you, and how best to spend it, to grow your own law firm.
You need to understand early on in the progression that a law firm is, in fact, a unique business enterprise (I guess many professional service businesses would argue that they, too, are unique). A law firm business model is unique in that most of the marketing that you will be doing will be promoting individual lawyers, including yourself , and yet you need to spend enough time managing your law firm, or as we will more frequently refer to it, working on the business. Doing this involves a difficult mix and blend of your time, all on top of practicing law.
It is not by accident that this book is divided into three specific sections.
The first section, The Start-Up, touches on the topics that are discussed in many books about priorities and provides some conclusions as to the best ways to structure your start-up. It focuses on associated costs and how to make core decisions, secure office space, establish billing and collecting procedures, create your entrepreneurial model, develop marketing strategies, and offer guidance for key decisions.
The second section, Growing a Law Practice, takes a successful solo practitioner or small partnership and lays the foundation for adding a second, third, fourth, or even tenth, and possibly twentieth, lawyer to the firm. It is difficult, but not impossible. If you create the correct foundation in your early start-up years, the growth of a law firm is a natural progression. The progression is systematic, but it still takes a certain amount of fortitude to add payroll, infrastructure, support, and other third-party contractors to help you be as efficient working in the law firm, as a productive attorney, and working on your business to help grow the business.
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