economics of practicing consumer law 2012
DESCRIPTION
A half hour CLE slide show presentation to law students and also intended for new lawyers, explaining tips and practices on how to make a living handling Consumer Law cases in the United States, presented at the University of Houston Law Center in 2012.TRANSCRIPT
The Economics ofConsumer Law Practice
Houston 2012
Ronald L. BurdgeThe Law Coach .com
© 2012 RLBurdge
Do Good
© 2012 RLBurdge
Do Good
You have to
Do Well
If you want to
© 2012 RLBurdge
Planning Nowfor a Practice Later
“Personal Life” Social Media
- vs –
“Law Life” Social Media
Rules to Remember
Knowing Your Numbers
© 2012 RLBurdge
Tips on Starting a Practice
Tips on Starting a PracticeTips on Starting a Practice
Starting a Consumer Law Practice Without Clients
(and Without Starving)
© 2012 RLBurdge
Tip #1 on Starting a PracticeTip #1 on Starting a Practice
Read
Jay Foonberg’s
Book
© 2012 RLBurdge
Tip #2 on Starting a PracticeTip #2 on Starting a Practice
Market yourself to other lawyers
© 2012 RLBurdge
Tip #3 on Starting a PracticeTip #3 on Starting a Practice
Avoid costly phone book display ads
© 2012 RLBurdge
Tip #4 on Starting a PracticeTip #4 on Starting a Practice
Get an easy-to-remember
phone number
© 2012 RLBurdge
Tip #5 on Starting a PracticeTip #5 on Starting a Practice
Publish a Professional Announcement
In local bar newsletter
and newspaper
© 2012 RLBurdge
Tip #6 on Starting a PracticeTip #6 on Starting a Practice
Write articles
on Consumer Law
for bar newsletter
© 2012 RLBurdge
Tip #7 on Starting a PracticeTip #7 on Starting a Practice
Give speeches to
Bar Organizations
and civic groups
© 2012 RLBurdge
Tip #8 on Starting a PracticeTip #8 on Starting a Practice
Hire a support staffer
who has the aptitude
to research people and records
© 2012 RLBurdge
Tip #9 on Starting a PracticeTip #9 on Starting a Practice
Set up your own web site yourself
And use a catchy name and then blog, blog, blog, blog
Work Social Networking
© 2012 RLBurdge
Tip #10 on Starting a PracticeTip #10 on Starting a Practice
1 + 1 + 1 + 1 + 1 = 1
© 2012 RLBurdge
Tip #11 on Starting a PracticeTip #11 on Starting a Practice
Pick an easy-to-find location
for your new office
© 2012 RLBurdge
Tip #12 on Starting a PracticeTip #12 on Starting a Practice
Set up your office in same Building
with other attorney offices,
For referrals and mentoring
© 2012 RLBurdge
Tip #13 on Starting a PracticeTip #13 on Starting a Practice
Pay referral fees in cookies
to referring attorney’s secretary
© 2012 RLBurdge
Tip #14 on Starting a PracticeTip #14 on Starting a Practice
Write a column
on Consumer Law
for local newspaper
© 2012 RLBurdge
Tip #15 on Starting a PracticeTip #15 on Starting a Practice
Limit contingency fee cases
to ½ your case load
© 2012 RLBurdge
Tip #16 on Starting a PracticeTip #16 on Starting a Practice
Remember: the best advertising you will ever get is from a happy client.
Make your client’s case your case … make it personal.
© 2012 RLBurdge
Bonus Time !
© 2012 RLBurdge
www. The Law Coach .com
© 2012 RLBurdge
www. The Law Coach .com
© 2012 RLBurdge
www. The Law Coach .com
© 2012 RLBurdge
The Practice of Law ?
© 2012 RLBurdge
Riches to Rags
© 2012 RLBurdge
Riches to Rags
TheKingofTorts
Melvin Belli
© 2012 RLBurdge
Rags to Riches
© 2012 RLBurdge
Rags to Riches
© 2012 RLBurdge
Old RuleOld Rule
$ in$ in-Bills paid outBills paid out
== $ Left Over $ Left Over (your profit)(your profit)
© 2012 RLBurdge
© 2012 RLBurdge
New Rule
It’s a Business
Run it like one
The Name of the Game: Profit
© 2012 RLBurdge
“What do you mean, my paycheck will be a little late this week?”
© 2012 RLBurdge
New Rule
Be a Lawyer
Not a Business Manager
© 2012 RLBurdge
TheProblem
Solution?
New Rule
Hire a Business Manager
And Pay them Well
© 2012 RLBurdge
SCORE.org
© 2012 RLBurdge
New Rule
Have a Budget
And Live by it
© 2012 RLBurdge
Time Management Matters
© 2012 RLBurdge
Time Gobblers
Confusing Priorities
“Paper” Shuffling
Interruptions
© 2012 RLBurdge
New Rule
Have a Budget
And Live by it
© 2012 RLBurdge
New Rule
Know Your “Break Even” Number
© 2012 RLBurdge
New Rule
Know Your Daily Numbers
© 2012 RLBurdge
New Rule
Recalculate Your Hourly Rate
Reverse Calculate it
© 2012 RLBurdge
Know Your Numbers
EGN / IGN = Hourly Rate
Expense Generating Numbers
Divided by
Income Generating Numbers
= Hourly Rate© 2012 RLBurdge
Expense Generating Numbers
Taxes Rent
Salaries Telephone
Utilities Debt Retirement
Supplies Equipment
Repairs Advertising
Maintenance Insurance© 2012 RLBurdge
Income Generating Numbers
Total Firm Billable Hours
Whose hours ?
© 2012 RLBurdge
Total Firm Billable Hours
Attorney
Paralegal – Law Clerk
Secretary
© 2012 RLBurdge
Weight the Rates
0
0.25
0.5
0.75
1
AttorneyParalegalSecretary
© 2012 RLBurdge
Weekly Billable HoursWeighted
RateAvailable
HoursBillable Hours
Attorney 1 45 45
Paralegal .5 40 20
Secretary .25 20 5
Total 70© 2012 RLBurdge
Reverse Calculating Hourly Rate
Example:
1 Attorney - $100 k Salary
1 Paralegal - $42 k Salary
1 Secretary - $30 k Salary
© 2012 RLBurdge
Reverse Calculating Hourly Rate
Expense Generating Numbers
Divided by
Income Generating Numbers
= Hourly Rate
© 2012 RLBurdge
Expense Generating Numbers
Taxes Rent
Salaries Telephone
Utilities Debt Retirement
Supplies Equipment
Repairs Advertising
Maintenance Insurance
= $7,000© 2012 RLBurdge
Reverse Calculating Hourly Rate
$7,000 + 15% = $8,050 (EGN)
Divided by
70 – 15% = 59.5 hours (IGN)
= $ 135.29 Hourly Rate
© 2012 RLBurdge
New Rule
It’s a Business
Run it like one
The Name of the Game: Profit
© 2012 RLBurdge
New Rule
The Cost of Losing Billable Time:
15 min/day = 1.25 Hr/wk
= 65 Hr/yr
65 Hr x $150 ………... = $9,750
© 2012 RLBurdge
Bonus Time !
© 2012 RLBurdge
Top 3 New Rules
To Really Succeed
1. Be a Lawyer, not a Manager
2. Know Your Numbers
3. Give it Back
© 2012 RLBurdge
You have to
Do Well
If You want to
Do GoodHouston 2012
Ronald L. BurdgeThe Law Coach .com © 2012 RLBurdge