setting up a law office do it right the first time

Presented by:Robert A. Zupkus, EsquireZupkus & Angell, P.C.Denver, CO

Alan J. Klevan, EsquireLaw Practice StrategiesWellesley, MA

o Don’t ProcrastinateDon’t Procrastinateo Be EfficientBe Efficient

o Stay on Top of ThingsStay on Top of Things

o Now . . .Now . . .o 1.2 million licensed attorneys in the country1.2 million licensed attorneys in the countryo Approximately 80% (that’s 960,000) are actively Approximately 80% (that’s 960,000) are actively

practicingpracticing

o And in the FutureAnd in the Futureo 78% Bar Exam Pass Rate for July 2010, Including78% Bar Exam Pass Rate for July 2010, Including

90% Bar Exam Pass Rate for First Time Test Takers90% Bar Exam Pass Rate for First Time Test Takerso MoreMore Attend Law School Than Ever Before; Attend Law School Than Ever Before;

MoreMore Pass Bar Exam Than Ever Before; Pass Bar Exam Than Ever Before; MoreMore Attorneys Than Ever Before Attorneys Than Ever Before

o Business Planning (Very) 101Business Planning (Very) 101

o Step One: Have OneStep One: Have One

o What to IncludeWhat to Includeo Summary of PracticeSummary of Practiceo Client ServicesClient Serviceso Administrative PlanAdministrative Plan

o Tied ConsiderationsTied Considerationso Budget and FinanceBudget and Financeo Marketing PlanMarketing Plano Begin With an Exit StrategyBegin With an Exit Strategy

o Living DocumentsLiving Documents

o Choiceso Soloo Partnershipo Professional Corporation

o C or S Corporationo LLCo LLP

o Considerationso Tax Treatmento Liabilityo Statutory and Regulatory Requirementso Resourceso Written Agreements

o Personal FinancesPersonal Financeso NecessitiesNecessitieso LuxuriesLuxurieso Don’t Don’t CommingleCommingle!!

o Operational AccountOperational Accounto Start-Up CostsStart-Up Costso Continuing CostsContinuing Costso Research Purchases/Be Smart About What You BuyResearch Purchases/Be Smart About What You Buyo Tie to Business PlanTie to Business Plano Don’t Don’t CommingleCommingle!!

PUT ASIDE ONE YEARS’ WORTH OF FUNDSPUT ASIDE ONE YEARS’ WORTH OF FUNDS

o IOLTA AccountingIOLTA Accountingo Access Resources for UnderstandingAccess Resources for Understandingo Tips: Different Color Checks/Cover Account ChargesTips: Different Color Checks/Cover Account Chargeso Perform Your ReconciliationsPerform Your Reconciliationso Don’t Commingle!Don’t Commingle!

o Support SystemSupport Systemo Can You Afford Live Personnel?Can You Afford Live Personnel?o Virtual AlternativesVirtual Alternativeso Don’t Do It Don’t Do It AllAll, If You , If You Can’tCan’t Do It All Do It Allo Your FamilyYour Familyo Your MentorYour Mentor

REMEMBER: Every Hour You Spend on REMEMBER: Every Hour You Spend on Administrative Tasks Is An Hour You Are Not Administrative Tasks Is An Hour You Are Not

Spending BillingSpending Billing

o What Are You?What Are You?o What Services Do You Provide?What Services Do You Provide?o What Is Your Niche?What Is Your Niche?o What Is Your Specialty?What Is Your Specialty?o How to Find Out: Self Evaluation and Market How to Find Out: Self Evaluation and Market

ResearchResearcho Fake It to Make ItFake It to Make It

o To Whom Is Your ConcernTo Whom Is Your Concerno Two Types of MarketingTwo Types of Marketing

o Direct ClientDirect Cliento Referral MarketingReferral Marketing

o How Do You Reach Your AudienceHow Do You Reach Your Audienceo NetworkingNetworkingo Traditional Advertising/MarketingTraditional Advertising/Marketingo New Media Advertising/Marketing: The Web and The New Media Advertising/Marketing: The Web and The

Web 2.0 Web 2.0

o Where Will You Where Will You Work?Work?

o Home OfficeHome Officeo Business Business

OfficeOfficeo Virtual OfficeVirtual Officeo Office ShareOffice Shareo o Pros and ConsPros and Cons

o It’s Up to YouIt’s Up to You

Most Essential Office Hardware, Often Overlookedo Your Computer

Desktop vs Laptop vs Netbook vs Tablet

Don’t Buy Out-of-the Box!

Key Considerations: Processor speed -- multiple core SDRAM 3GB+ Hard Drive --GB + speed Operating System

Windows 7 Professional Ultimate

Mac OS X

Does it work with what you have?

Second, or Multiple Monitors

Remote Access

Multifunction versus Multiple Machines

Does It OCR?

Desktop versus Portable

Bundle Packages: Scanner plus PDF Converter

o Fujitsu ScanSnap with Adobe Acrobato Kodak ScanMate with Nuance PDF PaperPort & OmniPage

Scanning Process + Naming Conventions

o Create Workflow for Scanning Processeso Create Coherent and Consistent Naming Conventions

PDF = “Portable Document Format”

o Image Scan (Non-OCR) versus Text Scan (OCR)o *Only OCR’d Documents May Be Manipulated*

Converter Program Options

o Adobe Acrobat 10 (“X”) (the “Gold” Standard)o Nuance PDF Converter 7 (the “Silver” Standard)o Cheap or Free Options (the “Bronze” Standards)

o PDFForge/CutePDF, e.g.

Advantages of PDF:o Looks the Same on Every Computero Bates Stampingo Forms Creationo Metadata Removalo Encryption and Password Protection

Key Considerations: Print Quality Printing SpeedMultiple Trays vs Switching Trays Networkability

o Brother HL-2240 Laser Printer ($120), 24 ppm

o Lexmark E260dn Ink Printer ($180), 35 ppm

o HP Laser Jet M1522nf ($325), 24 ppm + multifunction

o Canon imageClass MF8050Cn ($500), 8-12 ppm + multifunction

Also see:www.brighthub.com

Example: HP Ink Cartridge for Example: HP Ink Cartridge for many DeskJet printersmany DeskJet printers Part #C6656AN - $19.99 for 19 mlPart #C6656AN - $19.99 for 19 ml 3,786.4118 ml = 1 gallon3,786.4118 ml = 1 gallon Ink cost = $3,983.70/gallonInk cost = $3,983.70/gallon

Study by TÜV Rheinland across Study by TÜV Rheinland across all brands found:all brands found: Printers report ink empty when Printers report ink empty when

20% to 64% ink remaining (Kodak 20% to 64% ink remaining (Kodak EasyShare 5300 was worst)EasyShare 5300 was worst)

Single ink cartridges report empty Single ink cartridges report empty when average of 20% of the ink is when average of 20% of the ink is leftleft

Buy Your Tech Tools and Toys from Discount Websites:o Shopzillao NewEggo CTI Storeo Tiger Directo Buy.como Geeks.com

Coupon Sites:o Groupon.como RetailMeNot.como DealCoupon.com

Issues of Traditional Faxo Jammingo Out of Papero Out of Inko Overwriting

eFax is the Answer

Compare Services at: www.faxcompare.com

o iPhone

o Android

o Blackberry

Compare + Contrast @

Key Considerations:Compatible w/ Operating System, Email + CalendarData Plan Battery Life Usability Wireless Synchronicity

Microsoft Exchange ServerMobile Me

o Microsoft Office 2010

o Google Docs

o WordPerfect Office X5

o Open Office 3.3To-Do: Draft Documents Create Spreadsheets Build Presentations Email + Calendar? (Sync?) Key

Considerations: Features Cost Conversion Collaboration Upgrades

Common Features:

o Master Case Listo Holistic View of Practice/Chronological View of Caseso Contact Management + Conflict Checkingo Calendaring + Taskso Email Archiveo Document Managemento Time + Billing Product Choices:

o Traditional Software Download-AbacusLaw, Amicus Attorney

o SaaS-Clio, Firm Manager, RocketMatter

o Hybrid: Traditional/SaaS-Needles + eCase

o Email Add-On-Credenza

o Excel

o Quicken vs Quickbooks

o RTG Billso Tabs3

o Built-Ins

o Chrometao Smart Time

o Trust Accounting

o Hire Accountant?

State Ruleso Massachusetts Data Privacy Laws + Regulations

-MGL c. 93H + 93I-201 CMR 17.00

o SJC Interim Guidelines for the Protection of Personal Identifying Data

Compliance Options for Encryptiono by Documento by Emailo by Device

o WISPo Security Safeguards

-Paper-Electronic Systems

Data Backupo Daily (to Device)o Weekly (to Device)

-rotate 2-3 harddrives, take off-siteo Online (Continuing)

INSURANCE:INSURANCE:

YOUR SAFETY NETYOUR SAFETY NET

Insurance? Why?Insurance? Why?What do I insure?What do I insure?

Lawyers’ Professional Lawyers’ Professional Liability (LPL)Liability (LPL)Business Owners’ (BOP)Business Owners’ (BOP)Workers’ Compensation Workers’ Compensation (WC)(WC)HealthHealthDisabilityDisabilityLifeLife

Why do I need Professional Why do I need Professional Liability?Liability?

Different governing bodies insist or suggest insurance be carried

Mistakes HappenNot even necessary to make a

mistakeClient perception or expectation of

a result often drives the claim process

Financial burden to defend one’s actions can be devastating

Know Your Insurance Know Your Insurance RequirementsRequirements

Various Insurance Requirements Various Insurance Requirements MA, 211 CMR 24.00 LLC and LLPMA, 211 CMR 24.00 LLC and LLP

Minimum $100,000 Per Claim Per Licensee/ Minimum $100,000 Per Claim Per Licensee/ $250,000 Aggregate Per Licensee or $250,000 Aggregate Per Licensee or

$500,000 Per Claim/ $1,000,000 Aggregate$500,000 Per Claim/ $1,000,000 Aggregate Court, Rule 3:06, LLC and LLPCourt, Rule 3:06, LLC and LLP

Minimum $50,000 + $15,000 Per Licensee, But Not Minimum $50,000 + $15,000 Per Licensee, But Not in Excess of $500,000in Excess of $500,000

Lawyers Referral Service(s)Lawyers Referral Service(s) $250,000 Each Claim/$500,000 Aggregate$250,000 Each Claim/$500,000 Aggregate

Rule 4:02, Subsection 2ARule 4:02, Subsection 2A Advise the BBO whether or not you carry insuranceAdvise the BBO whether or not you carry insurance

American Bar Association has been American Bar Association has been compiling insurance statistics since compiling insurance statistics since 19901990 4-6% of lawyers have a claim in any 4-6% of lawyers have a claim in any

given yeargiven year Most never have a claimMost never have a claim

65% of all claims come from firm size of 65% of all claims come from firm size of 1-5 lawyers1-5 lawyers

137.2%

2-532.9%

6-109.0%

11-399.7%

40-993.3%

100 +7.9%

Percent Of Claims By Firm Size

DATA COLLECTED FROM THE ABA PROFILE OF LEGAL MALPRACTICE CLAIMS

REAL ESTATE20.1%

CRIMINAL5.1%

PERSONAL INJ-PLAINTIFF

21.6%

COLLECTION AND BANKRUPTCY

7.3%

FAMILY LAW10.3%

PERSONAL INJURY-DEFENSE

2.9%

BUS TRANSACTION COMMERCIAL LAW

4.7%

CORP/BUSINESS ORGANIZATION

4.9%

ESTATE, TRUST, PROBATE

9.7%

ALL OTHER13.5%

PERCENT OF CLAIMS BY AREA OF LAW


Insurance- Claims MadeInsurance- Claims Made

Nature of Claims MadeNature of Claims Made The only type of professional policy availableThe only type of professional policy available

Not like your automobile where the policy in force Not like your automobile where the policy in force at the time of the accident defends youat the time of the accident defends you

Generally the Policy in Force at the Time the Generally the Policy in Force at the Time the Claim is made against you is the one that Claim is made against you is the one that responds.responds.

Policies must be continuously renewed or Policies must be continuously renewed or coverage ceasescoverage ceases

Think RAM on your computer- as long as the Think RAM on your computer- as long as the computer is on, you have memory. When you shut computer is on, you have memory. When you shut it off, RAM is lostit off, RAM is lost

Insurance LimitsInsurance Limits

What Limit of Liability to Buy?What Limit of Liability to Buy? ““Eroding” Limits PolicyEroding” Limits Policy

Costs to Defend- the Defense Attorney is Costs to Defend- the Defense Attorney is Always Paid First.Always Paid First.

Costs of Settlements or DamagesCosts of Settlements or Damages Will There be Enough Left?Will There be Enough Left?

Exposures GROW Over Time.Exposures GROW Over Time. Is Your Limits Choice Sufficient?Is Your Limits Choice Sufficient?

For TodayFor Today For tomorrowFor tomorrow

Insurance Limits- How Insurance Limits- How Much is Not Enough?Much is Not Enough?

• Consider the Dollar Value of Cases HandledConsider the Dollar Value of Cases Handled What is the potential for the largest case handled?What is the potential for the largest case handled?

• Do You Specialize in Areas With Higher Valued Claims?Do You Specialize in Areas With Higher Valued Claims? See the charts attachedSee the charts attached

• AOPs with frequent claims:AOPs with frequent claims:• Personal Injury (expectations?)Personal Injury (expectations?)• Real EstateReal Estate

Ask your friends and mentorAsk your friends and mentor• Do You Have Personal Assets to Protect?Do You Have Personal Assets to Protect?• Consider the number of attorneys in the firm.Consider the number of attorneys in the firm.• Do You Have Active Risk Management Program?Do You Have Active Risk Management Program?

Are You Confident in Your Internal Systems- Are You Confident in Your Internal Systems- Calendar, Conflicts Check, Files, client retainer and Calendar, Conflicts Check, Files, client retainer and engagement procedures?engagement procedures?

12%

11%

9%

8%

7%

Failure to Know/ProperlyApply Law

Failure to File Doc- NoDeadline

Planning Error-Porcedure Choice

InadequateDiscovery/Investigation

Failure to CalendarProperly

The Most Common Alleged Errors


Additional Insurance Additional Insurance ConsiderationsConsiderations

Business Owners Policy?Business Owners Policy? Do You Have a Lease?Do You Have a Lease?

What Does Your Landlord Require?What Does Your Landlord Require? Do you work at home?Do you work at home?

How Do You Insure Your “Stuff”?How Do You Insure Your “Stuff”? Your Tables, Desks and Chairs; your Your Tables, Desks and Chairs; your

Computers, Servers, Facsimile and PhonesComputers, Servers, Facsimile and Phones The Leased CopierThe Leased Copier

What if Your Building is Closed and You What if Your Building is Closed and You Can Not Get in to do Work?Can Not Get in to do Work?

Additional Insurance Additional Insurance ConsiderationsConsiderations

Workers’ CompensationWorkers’ Compensation Mass. Requires You Insure Employees for Mass. Requires You Insure Employees for

Workplace AccidentsWorkplace Accidents Even for 1 EmployeeEven for 1 Employee If a PC or LLC, You are an Employee, by If a PC or LLC, You are an Employee, by

DefinitionDefinition

Disability IncomeDisability Income If You are Sick or Injured, How Do You If You are Sick or Injured, How Do You

Pay the Rent?Pay the Rent? Life InsuranceLife Insurance

““A lawyer’s time and advice A lawyer’s time and advice are his stock in trade”are his stock in trade”-- Abraham LincolnAbraham Lincoln

Getting a Client to Pay…Getting a Client to Pay…

Set the rulesSet the rules Do not be shy about discussing feesDo not be shy about discussing fees Do not reduce your priceDo not reduce your price Do not devalue your serviceDo not devalue your service Make certain the client understands Make certain the client understands

your policyyour policy Pre-determine the appropriate retainerPre-determine the appropriate retainer

Getting Clients to PayGetting Clients to Pay

Bill regularly – consider semimonthlyBill regularly – consider semimonthly Bill after a good resultBill after a good result Bill after a productive conversationBill after a productive conversation Never delay in getting a bill to a clientNever delay in getting a bill to a client Never delay in getting a bill to a clientNever delay in getting a bill to a client Never delay in getting a bill to a clientNever delay in getting a bill to a client

Billing early, often and Billing early, often and strategic =strategic =

Billing late and Billing late and infrequently =infrequently =

Gift Cards Are KingGift Cards Are King

Keep a stash in the officeKeep a stash in the officeAward RandomlyAward RandomlyNo good deed goes unnoticed!No good deed goes unnoticed!

A client complimentA client complimentA great attitudeA great attitudeA great solutionA great solutionAbove and beyond dedicationAbove and beyond dedication

Don’t Manage By EmailDon’t Manage By Email

Don’t just assign work by emailDon’t just assign work by email““Management by Walking Around”Management by Walking Around”Tone of emails is misinterpreted 50% Tone of emails is misinterpreted 50% of the timeof the time

DON’T BE AFRAID TO DON’T BE AFRAID TO TAKE THE LEAPTAKE THE LEAP

SET YOUR GOAL(S)SET YOUR GOAL(S)NEVER LOSE YOUR FOCUSNEVER LOSE YOUR FOCUS

““Stay Hungry, Stay Stay Hungry, Stay Foolish”Foolish”

-- Steve Jobs (1955-Steve Jobs (1955-2011)2011)

GOOD LUCK TO YOU!GOOD LUCK TO YOU!Alan J. Klevan, EsquireAlan J. Klevan, Esquire

LAW PRACTICE STRATEGIESLAW PRACTICE STRATEGIES1 Hollis Street, Suite 2431 Hollis Street, Suite 243

Wellesley, MA 02482Wellesley, MA 02482781-237-4700781-237-4700

[email protected]@lawpracticestrategies.comwww.twitter.com/AlanKlevanwww.twitter.com/AlanKlevan

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