Thursday, May 14, 2009 at 2:39PM Not long ago I wrote an article on How Much Money Do You Really Need to Start a Law Practice.
Due to the positive response the article received, I expanded it and it is featured in this month's Law Practice Today. Check it out.
Capitalization, Start Up in Finance Wednesday, April 29, 2009 at 9:00AM 
Two of the questions I am asked most frequently from lawyers starting new firms are:
Recent articles by two of the smarties in law practice management, Dennis Kennedy and Lee Rosen, showcase thoughtful answers to these questions.
Dennis, in his ABA Journal article Teaming Up, Starting Anew, advises new law firms to use technology to cut costs.
[Sidebar, this reminded me of the scene in Moonstruck where Cosmo the plumber explains why he favors only copper pipe:
There are three kinds of pipe. There's aluminum, which is garbage. There's bronze, which is pretty good, unless something goes wrong. And something always goes wrong. Then, there's copper, which is the only pipe I use. It costs money. It costs money because it saves money.
Perhaps admitting that I know the movie Moonstruck by heart is not the high water mark for my testosterone level...]
But I digress.
Dennis goes on to advise that new law practices be technologically prepared to:
He also includes a handy 7 point checklist of items to consider at the end of the article. Make sure to head over and check the article out.
Different but equally sound advice comes from Lee Rosen, author of the family law practice management blog Divorce Discourse. Lee, ever the marketer, says:
"The first thing to do, the very first thing, is not to buy something, it’s to sell something. Find a person that needs what you’re offering and get them to buy it."
Lee also offers great guidance on how the new family lawyer can find his/her first client:
It's a good read for new family lawyers, and, come to think of it, new lawyers in any practice area.
There you have it: technology tips, marketing advice and a quote from a girlie movie.
My work here is done.
Hardware, Networking, Software, Start Up in Marketing, Technology Saturday, April 25, 2009 at 1:10PM The conventional wisdom on this topic is that you need twelve months.
It's probably as good a place as any to begin the analysis, but it's a little like figuring out how much gas you need in your car: a full tank is nice, but what really need is enough gas to make it to the next gas station.
Capitalizing your new law firm is the same: you need enough to make it to the next infusion of cash.
Getting your practice to a state of positive cash flow depends on a lot factors:
If you are a gifted marketer or bring a roster of paying clients with you, you may be in positive cash flow long before twelve months goes by. If you are determined cost cutter who pinches a penny until it yelps, you may need very little revenue to get into the black. If you have no clear plan on how to develop new business but a very solid idea of what your firm logo will look like and which smartphone you will use, you may be in for some hard lessons.
Here are a few tips to keep you on track:
A final word of advice: keep a close eye on the fuel indicator. The next gas station may be farther that you estimated.
Capitalization, Start Up in Finance 