Trial Magazine

Devon M. Jacob

Jacob Litigation

(founded 2013; national civil rights law)

Mechanisburg, Pa.

When I first began talking to friends about founding a firm, two of them who worked in finance encouraged me to write a business plan. As they described it, there were two goals: to make sure that I had really considered what it would take logistically to start the specific type of law firm that I desired and to create a substantive document that could be used to support loan applications.

I found this process invaluable but daunting. At the time, I did not know what a professional business plan constituted, let alone how to draft one. This task prompted me to research how to operate a law firm and to discover issues that I never realized I needed to consider. For me, the process consisted of asking questions, getting answers, and then getting answers to my new questions.

For example, I knew I needed malpractice insurance, which I learned meant that I needed firm letterhead and a client fee agreement to attach to the application. This meant that I needed to educate myself on how to obtain a proper logo that passed ethics rules related to advertising and could be used both electronically and on paper. With each issue I researched, I discovered additional questions I had not yet considered but that needed to be answered. At the end of the process, I was significantly more prepared for my business venture.

Admittedly, the plan that I created was not at the level that a person with an MBA would prepare; however, it worked because I remained honest to the process. For example, I used conservative numbers to make realistic financial predictions that would ­hopefully hold true. I did my best to honestly predict actual future expenses and to determine how much funding would be necessary to launch the firm and sustain it until revenue would begin to flow. For me, having enough prior legal experience to predict the lifespan of a case—from start to conclusion—was crucial. I then built in a cushion, just in case I got it wrong. I cannot stress enough that a business plan should never be based on hopes and dreams.  

This process also made me consider what should not be a service that I would provide to either the law firm or clients. Essentially, I discovered what services I would need to outsource—this can be expensive, but so can fixing mistakes. Hire professionals to handle services outside your expertise. For example, I don’t practice commercial law, so I hired an attorney to advise how to structure the law firm entity to meet my needs. I also hired a CPA to handle the firm’s tax obligations. I refer clients to other professionals to handle legal matters that are necessary but collateral to the service that I am providing.

Today, I am my own boss. I operate for myself and my clients, without having to please anyone else. My law firm implements my vision. It’s what I wanted, and it all started with my business plan. 

Shayla Reed

Reed Law Offices

(founded 2006; specializing in nursing home litigation)

Omaha

I started my practice in 2006, but it wasn’t until about a year ago that I got serious about organizing our office procedures. My biggest regret is that I didn’t do this sooner. If I could go back, the first thing I would do differently is implement written systems for every phase of a case, from start to finish.

Two books that inspired me are Good to Great by Jim Collins and The Power of a System by John Fisher. Good to Great covers general systems useful for any business. The Power of a System, however, is written by a personal injury attorney who shares his own firm’s written systems and the rationales behind them. Having a general ­framework to start with, along with samples, made drafting my firm’s systems less daunting.

It can be overwhelming to try to draft detailed descriptions and time lines for every aspect of each case type, but I was able to break down this task into hour-long sessions. I would often spend my hour commute dictating a specific system into my phone. Then, I cut and paste my dictation into a master document. It took many hours to complete, but tackling it in small chunks made it much more manageable.

The biggest change we have seen since implementing clear systems has been increased efficiency. We now have a new case time line, which sets forth clear deadlines for each phase of the case from the initial client phone call to resolution of the case by settlement or trial.

For example, after we sign up a new client or agree to investigate a case, within seven days our staff must create client computer and hard files, confirm receipt of the client’s signed contract, confirm receipt of all signed medical authorizations, and order all of the client’s medical records dating back five years. If we don’t receive medical records within 30 days, then staff must follow up. Medical records must be received within 60 days of signing up the client. Within 90 days of signing, all medical records must be organized, ­Bates-stamped, and ready to put into a medical chronology. Our ultimate goal is to accomplish all tasks and to secure a trial date or settlement within 12 months of signing up the client. This is challenging but worthwhile.

Staff also must send an update letter to each client every 30 days. This forces us to examine every client file and ensures that action is taken on the file monthly. As a result, client satisfaction has improved, and the phone does not ring as often because clients are better informed about their cases.

With these systems in place, it is easier to train new staff; monitor staff performance; stay on top of all of our cases; and be proactive, not reactive, in litigation. It also has dramatically decreased my stress level and anxiety, which is priceless. If only I had done it sooner. But, as the saying goes, “There is no better time than the present.”

Raymond Jones

Law Office of Raymond R. Jones

(founded 2012; employment law and criminal defense)

Washington, D.C.

Get connected to local and national organizations and list servers in your field as soon as you can. AAJ, bar associations, other professional organizations—you need all of them to help you with the legal and the firm management sides of your practice. Today, I spend about 60 percent of my time on law and about 40 percent of my time on everything else.

If someone asks me for advice about starting a firm but says that he or she is only interested in focusing on law, then I question whether that attorney should hang a shingle. If you know you’re not going to enjoy managing a business, then you’re setting yourself up to fail. And even if you do have that entrepreneurial spirit, you still need support to get ahead.

As a sole practitioner, you’re going to be alone in the office. You can’t walk down the hall and ask Bob how he’d handle X or for feedback on Y. Building outside connections and networks means that you can be on your own and still have people to ask for sample orders or advice on hiring paralegals.

Some people don’t like the idea of networking or making that a priority, but when you’re running your own firm, networking is a business necessity. It’s how you get information about best practices and standards in your area—for example, fair salaries for different types of employees—and how you get referrals. My first client came through a referral, and I still get a substantial percentage of my clients through referrals today. You have to put yourself out there. If people don’t know who you are, then you can’t turn to them for support.

Your professional connections also can save you time. One of the biggest surprises for me is how many calls I get from vendors. I used to feel like I needed to listen to every single one to figure out the best price, but that was a waste of time. Now, I get recommendations from contacts I trust and use the time I save to get work done.

N. John Bey

Bey & Associates

(founded 2008; personal injury law)

Atlanta

The pressure that  you’ll feel as a firm founder is unique—and also ­sometimes enormous. You’re suddenly responsible not just for the quality of your own work but for other people’s livelihoods. Families depend on your success.

Sustainability has to be one of your primary goals, and one of the ways you can help ensure longevity is by making your firm reflect you. Before you step out on your own, take the time to think about what makes you tick and what your core values are. For years, I kept a personal statement inside a desk drawer as a reminder of who I am and why I wanted to practice law. Especially on tough days, I would reread it, reflecting on what I wanted to accomplish and whether I was still doing those things.

You always need that broader purpose. When I evaluate myself and my firm, one of my biggest fears is discovering complacency. Once you stop being motivated and pushing innovation, then that’s when you fall behind. Innovation can be small or big changes, but the ability to keep an open mind to change is what matters.

I wish I had done some things differently when I first started—like focusing more on balancing work and family—but one thing I was very happy about was building a firm environment that reflects what’s important to me. You can see that in various ways—for example, in our commitment to giving back to the community and in the creation of an office where people feel empowered and are continually challenged through coaching and other opportunities to grow and learn.

Don’t get distracted by external expectations or pressures of what a law office should look or be like. Focus internally and ask what makes you happy. Create the environment that you want to be in—experiencing that success every day will keep you motivated.

Gwen-Marie Davis Hicks

GDH Law

(founded 2013; personal injury, business law) 

Lanham, Md.

Interviewing other successful firm founders made me reflect on what guidance I would offer. My main advice is to remember that you’re not just practicing law—you’re in the business of law.

Focus on what it takes to keep the office running. Know how to do every job: how to print envelopes, how to do case intake, how to restart the server. Most likely, you’ll be the one doing these tasks for at least the first few years. And even if you hire staff before that, this knowledge will enable you to make smart hiring decisions. You’ll know how long ­something should take, and you’ll be able to provide better constructive feedback.

When considering starting your practice, don’t overlook the challenges that come with being a business manager. We recently began working with a human resources consultant who has made a really positive difference, allowing us to proactively address potential challenges that arise when you have staff—for example, what to do when everyone requests the day after Christmas off. Working with someone with this expertise has been great, and it’s also been helpful to brainstorm with someone who has an outside perspective. It’s easy to do things a certain way because that’s how you’ve always done them, and bringing in fresh eyes can help you reevaluate these habits and patterns.

Ultimately, you are the person making the decisions. That’s one of the most appealing things about founding a firm, but it doesn’t mean you don’t have to make difficult or unpleasant choices.

Sometimes, you can’t take a case that you feel passionately about because the legal liability isn’t there. Other times, you have to fire an employee whom you really like because of poor work product. These are problems you face because you’re running a business. You can’t run away from them—so be prepared to tackle them.

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Gwen-Marie Davis Hicks is the founder and managing partner of GDH Law in Lanham, Md. She can be reached at gdavis@gdhlawfirm.com. Mandy Brown is an associate editor for Trial magazine.