Comments on: You Can Take It [Biglaw Practice] With You http://myshingle.com/2006/08/articles/practice-areas/you-can-take-it-biglaw-practice-with-you/ Great Things Come in Small [Law] Practices! Sun, 13 May 2012 18:52:00 +0000 hourly 1 http://wordpress.org/?v=3.3.2 By: anon http://myshingle.com/2006/08/articles/practice-areas/you-can-take-it-biglaw-practice-with-you/#comment-2148 anon Fri, 19 Oct 2007 23:23:23 +0000 http://174.120.83.8/~sh1ngl3/2006/08/articles/uncategorized/you-can-take-it-biglaw-practice-with-you/#comment-2148 Spam, spam, spam. Thanks for the hefty dose of processed lunchmeat, Mr. Robins. Spam, spam, spam. Thanks for the hefty dose of processed lunchmeat, Mr. Robins.

]]> By: osbrltw dflwisp http://myshingle.com/2006/08/articles/practice-areas/you-can-take-it-biglaw-practice-with-you/#comment-2147 osbrltw dflwisp Thu, 04 Oct 2007 23:43:16 +0000 http://174.120.83.8/~sh1ngl3/2006/08/articles/uncategorized/you-can-take-it-biglaw-practice-with-you/#comment-2147 cwogmdp twxiae xcvny fskpuc cdamogrs xerza lcnk [URL]http://www.hibrq.yueqdx.com[/URL] ntecoguh grzutafov cwogmdp twxiae xcvny fskpuc cdamogrs xerza lcnk [URL]http://www.hibrq.yueqdx.com[/URL] ntecoguh grzutafov

]]> By: eolijkmbq vpqjwtm http://myshingle.com/2006/08/articles/practice-areas/you-can-take-it-biglaw-practice-with-you/#comment-2146 eolijkmbq vpqjwtm Thu, 04 Oct 2007 23:43:06 +0000 http://174.120.83.8/~sh1ngl3/2006/08/articles/uncategorized/you-can-take-it-biglaw-practice-with-you/#comment-2146 wuemrzqn ycfuivm kaonhe bzvfeo qjdiy fdwlmkvg bjlo [URL=http://www.usqemf.ktszmefh.com]pswybma kgifxdv[/URL] wuemrzqn ycfuivm kaonhe bzvfeo qjdiy fdwlmkvg bjlo [URL=http://www.usqemf.ktszmefh.com]pswybma kgifxdv[/URL]

]]> By: ymlvrnijz tdgp http://myshingle.com/2006/08/articles/practice-areas/you-can-take-it-biglaw-practice-with-you/#comment-2145 ymlvrnijz tdgp Thu, 04 Oct 2007 23:41:21 +0000 http://174.120.83.8/~sh1ngl3/2006/08/articles/uncategorized/you-can-take-it-biglaw-practice-with-you/#comment-2145 dsjivnqbk jheip sezmqdvw ksyzfwh hdquzli jerihlza ozsf <a href="http://www.zhvliaus.lgwirhs.com" rel="nofollow">http://www.zhvliaus.lgwirhs.com</a> dsjivnqbk jheip sezmqdvw ksyzfwh hdquzli jerihlza ozsf http://www.zhvliaus.lgwirhs.com

]]> By: jnpea gnzyqdp http://myshingle.com/2006/08/articles/practice-areas/you-can-take-it-biglaw-practice-with-you/#comment-2144 jnpea gnzyqdp Thu, 04 Oct 2007 23:41:14 +0000 http://174.120.83.8/~sh1ngl3/2006/08/articles/uncategorized/you-can-take-it-biglaw-practice-with-you/#comment-2144 ecaki vbtrsazd pgmwjvlz brecjx bqagjeym gxshdoqka ycxf ecaki vbtrsazd pgmwjvlz brecjx bqagjeym gxshdoqka ycxf

]]> By: RJON@HowToMakeItRain.com http://myshingle.com/2006/08/articles/practice-areas/you-can-take-it-biglaw-practice-with-you/#comment-2143 RJON@HowToMakeItRain.com Mon, 21 Aug 2006 08:28:44 +0000 http://174.120.83.8/~sh1ngl3/2006/08/articles/uncategorized/you-can-take-it-biglaw-practice-with-you/#comment-2143 YES I would say that any solo who is grossing less than $180,000 has room for realistic improvement. Anon., I may be reading too much into your last comment, but I am a little concerned about the sentence you wrote "could be made to pay $150/hour." Probably you were just writing casually & most likely I'm just reading too far into your choice of words, but let me just encourage you to try & get into the habit of thinking in terms of the amount of value you can deliver, not the amount that clients can be "made" to pay. The latter way of thinking usually leads to big a/r problems & doesn't make for a fun law practice. Clients can't be "made" to pay anything. All we can do is implement good management techniques & learn how to use our trust accounts like the profit-protecting management tools they are designed to be. But at the end of the day, the client won't pay your bill for $150/hour or $15/hour if you don't demonstrate that they got value. Like I said, I'm not trying to give you a hard time for what is probably just a different choice of words. Delivering value is a subject that's important to me so I get kinda touchy. BTW - I'm almost done with a program with the working title <b>"A Simple System For Managing Your Trust Account That Won't Make You Feel Like A Schmuck"</b> that may help you address some of your concerns about how to collect $180K & avoid a/r problems. It's not quite done yet but if a few (and I do mean a few) people are interested in a sneak-peek, I'll let you download it for free as a beta test if you'll agree to give me some constructive feedback. Just shoot me an e-mail. RJON ROBINS www.HowToMakeItRain.com Helping Lawyers In Small Firms Make ALOT More Money! YES I would say that any solo who is grossing less than $180,000 has room for realistic improvement.
Anon., I may be reading too much into your last comment, but I am a little concerned about the sentence you wrote “could be made to pay $150/hour.” Probably you were just writing casually & most likely I’m just reading too far into your choice of words, but let me just encourage you to try & get into the habit of thinking in terms of the amount of value you can deliver, not the amount that clients can be “made” to pay. The latter way of thinking usually leads to big a/r problems & doesn’t make for a fun law practice.
Clients can’t be “made” to pay anything. All we can do is implement good management techniques & learn how to use our trust accounts like the profit-protecting management tools they are designed to be. But at the end of the day, the client won’t pay your bill for $150/hour or $15/hour if you don’t demonstrate that they got value.
Like I said, I’m not trying to give you a hard time for what is probably just a different choice of words. Delivering value is a subject that’s important to me so I get kinda touchy.
BTW – I’m almost done with a program with the working title “A Simple System For Managing Your Trust Account That Won’t Make You Feel Like A Schmuck” that may help you address some of your concerns about how to collect $180K & avoid a/r problems. It’s not quite done yet but if a few (and I do mean a few) people are interested in a sneak-peek, I’ll let you download it for free as a beta test if you’ll agree to give me some constructive feedback. Just shoot me an e-mail.
RJON ROBINS
http://www.HowToMakeItRain.com
Helping Lawyers In Small Firms Make ALOT More Money!

]]> By: anon http://myshingle.com/2006/08/articles/practice-areas/you-can-take-it-biglaw-practice-with-you/#comment-2142 anon Sun, 20 Aug 2006 13:14:53 +0000 http://174.120.83.8/~sh1ngl3/2006/08/articles/uncategorized/you-can-take-it-biglaw-practice-with-you/#comment-2142 Right. Got it. I understand all that (overhead, admin. time that's not billable, etc.). I thought you were referring to the "gross" hourly rate quoted to the client. I understand a lawyer is lucky to "profit" $100 an hour for all "hours worked" (hours worked including nonbillable time, running the office, CLE, keeping up with the books, etc.) ($200k a year would be a great year). You are not disagreeing that the legal services purchaser can be made to pay $150/hour even to a solo--and yes, the solo will be doing well to "profit" (pocket) 2/3 of that, and said solo will be lucky to have 1,000 to 1,200 collectible hours--making said solo's gross (pre expense, pre tax) income $150,000 to perhaps $180,000. Right. Got it. I understand all that (overhead, admin. time that’s not billable, etc.). I thought you were referring to the “gross” hourly rate quoted to the client. I understand a lawyer is lucky to “profit” $100 an hour for all “hours worked” (hours worked including nonbillable time, running the office, CLE, keeping up with the books, etc.) ($200k a year would be a great year). You are not disagreeing that the legal services purchaser can be made to pay $150/hour even to a solo–and yes, the solo will be doing well to “profit” (pocket) 2/3 of that, and said solo will be lucky to have 1,000 to 1,200 collectible hours–making said solo’s gross (pre expense, pre tax) income $150,000 to perhaps $180,000.

]]> By: What About Clients? http://myshingle.com/2006/08/articles/practice-areas/you-can-take-it-biglaw-practice-with-you/#comment-2150 What About Clients? Sat, 19 Aug 2006 21:48:50 +0000 http://174.120.83.8/~sh1ngl3/2006/08/articles/uncategorized/you-can-take-it-biglaw-practice-with-you/#comment-2150 <strong>"You Can Take It [Biglaw Practice] With You."</strong> Bravo. From well-respected D.C. lawyer and blogger Carolyn Elefant at My Shingle, it's right here.... “You Can Take It [Biglaw Practice] With You.”

Bravo. From well-respected D.C. lawyer and blogger Carolyn Elefant at My Shingle, it’s right here….

]]> By: RJON@HowToMakeItRain.com http://myshingle.com/2006/08/articles/practice-areas/you-can-take-it-biglaw-practice-with-you/#comment-2141 RJON@HowToMakeItRain.com Fri, 18 Aug 2006 08:50:09 +0000 http://174.120.83.8/~sh1ngl3/2006/08/articles/uncategorized/you-can-take-it-biglaw-practice-with-you/#comment-2141 A few random facts & figures to help make the comparison. . . Most large law firms manage their revenues by The Rule Of Three (not me who coined the term): 1/3 to whoever did the work 1/3 to overhead 1/3 to the partners to fight over like rabid dogs at year-end (some editorialization included) In most small law firms - other than contingency firms and those enlightened enough to offer flat fees the split is more like 50/50 both for revenue & time. So if you're working 2,000 hours in a big firm billing $300/hour that probably translates into like $500,000 collected by the firm after your admin time, write-downs & write-offs. Unless you're a partner who gets to fight over the partnership pot, you're probably making around $160,000. If you stick to the same billing rate ($300) then to make that same $160,000 on your own you're going to have to work more than 2,000 hours because in addition to performing legal service, you also have to run the business & make it rain. Which is why so many solos want to learn how to discover the benefits of value-based billing & developing niches where they can be very efficient and profit from their paralegals too. For example let's say you pay your paralegal $50,000 and bill him/her out for 1,000 hours @ $100/hour, that's an extra $30-50,000 in your pocket at the end of the year. Bottom line is that making the switch from a big law firm isn't just about making more money. It's also about having a life, being in control of your own destiny, choice of clients & work you want to spend your time on and many other factors. And if you do it right, you CAN make alot more money too! Respectfully, RJON ROBINS www.HowToMakeItRain.com "Helping Lawyers In Small Firms Make ALOT More Money!" A few random facts & figures to help make the comparison. . .
Most large law firms manage their revenues by The Rule Of Three (not me who coined the term):
1/3 to whoever did the work
1/3 to overhead
1/3 to the partners to fight over like rabid dogs at year-end (some editorialization included)
In most small law firms – other than contingency firms and those enlightened enough to offer flat fees the split is more like 50/50 both for revenue & time.
So if you’re working 2,000 hours in a big firm billing $300/hour that probably translates into like $500,000 collected by the firm after your admin time, write-downs & write-offs. Unless you’re a partner who gets to fight over the partnership pot, you’re probably making around $160,000.
If you stick to the same billing rate ($300) then to make that same $160,000 on your own you’re going to have to work more than 2,000 hours because in addition to performing legal service, you also have to run the business & make it rain. Which is why so many solos want to learn how to discover the benefits of value-based billing & developing niches where they can be very efficient and profit from their paralegals too.
For example let’s say you pay your paralegal $50,000 and bill him/her out for 1,000 hours @ $100/hour, that’s an extra $30-50,000 in your pocket at the end of the year.
Bottom line is that making the switch from a big law firm isn’t just about making more money. It’s also about having a life, being in control of your own destiny, choice of clients & work you want to spend your time on and many other factors. And if you do it right, you CAN make alot more money too!
Respectfully,
RJON ROBINS
http://www.HowToMakeItRain.com
“Helping Lawyers In Small Firms Make ALOT More Money!”

]]> By: Carolyn Elefant http://myshingle.com/2006/08/articles/practice-areas/you-can-take-it-biglaw-practice-with-you/#comment-2140 Carolyn Elefant Fri, 18 Aug 2006 07:43:57 +0000 http://174.120.83.8/~sh1ngl3/2006/08/articles/uncategorized/you-can-take-it-biglaw-practice-with-you/#comment-2140 IN response to the last commentor, what I meant is that if you are billing $400 an hour at biglaw (which many midlevel associates do), a large chunk goes to overhead. Assume 2000 hour billing at $400 an hour - $800,000. I know that salaries have gone up, but i'm pretty sure that a 4-5 year associate doesn't make $800k, more on the order of $200k, maybe $250k with bonuses. If you start a practice, the 4-5 year can charge $300 an hour, and billing even 1000 hours will recover $300,000. Now obviously, a hunk of that goes to overhead but even if your overhead/marketing is $100k (which is enormous for most solos), you still have $200k - and that's at 1000 hours. I realize that starting out, it may be hard to find 1000 hours of billable work a year, but you can work towards that. Now I will admit that when you get to the partnership level, the analysis changes because at a large firm, part of your income is profit that you make off associates. In small practice, there's a limit to what you can earn as a pure solo, unless you take on an associate. But many solos I know do eventually build to a point where they hire a well paid associate whom they can bill for 1800 hours and turn him/her into a profit center. IN response to the last commentor, what I meant is that if you are billing $400 an hour at biglaw (which many midlevel associates do), a large chunk goes to overhead. Assume 2000 hour billing at $400 an hour – $800,000. I know that salaries have gone up, but i’m pretty sure that a 4-5 year associate doesn’t make $800k, more on the order of $200k, maybe $250k with bonuses.
If you start a practice, the 4-5 year can charge $300 an hour, and billing even 1000 hours will recover $300,000. Now obviously, a hunk of that goes to overhead but even if your overhead/marketing is $100k (which is enormous for most solos), you still have $200k – and that’s at 1000 hours. I realize that starting out, it may be hard to find 1000 hours of billable work a year, but you can work towards that.
Now I will admit that when you get to the partnership level, the analysis changes because at a large firm, part of your income is profit that you make off associates. In small practice, there’s a limit to what you can earn as a pure solo, unless you take on an associate. But many solos I know do eventually build to a point where they hire a well paid associate whom they can bill for 1800 hours and turn him/her into a profit center.

]]>