January 10, 2012 Budgeting For Your First Year & Measuring Success.

January 10, 2012January 10, 2012

Budgeting For Your First Year &

Measuring Success

January 10, 2012January 10, 2012

How Do I Start?

January 10, 2012January 10, 2012

Develop the “Plan”

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Elements of a Strategic Plan

Vision Statement

Values

Business Plan Objectives

Action Plans

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Strategic Plan

Vision Statement – Sets forth what the organization aspires to become, create and achieve; what will success look like? what you want your organization to become….“Using highly trained professionals to provide the best

customer service to our clients and earning us recognition as having knowledge and expertise in our practice areas”

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Strategic Plan

Values – Defines “truths” that guide your action; non-negotiable beliefs Untiring Commitment to Our Clients’ Success

Excellence in Our Chosen Profession

Honesty and Integrity

Service to Our Community

Productive and Enjoyable Work Environment

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Strategic Plan

Business Plan Objectives – What you want to accomplish in a given time period; specific goals Generate $x fees with a profit of $y

Complete an Annual Budget

Complete a Marketing Plan that will Generate Desired # of Leads

Review Results Weekly

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Strategic Plan

Action Plans – specifics as to who, what, where, when, how you will achieve your objectives Revenue (by case type, by month)

Marketing (# leads, conversion to cases, where the leads come from)

Expenses (by vendor by month)

January 10, 2012January 10, 2012

Develop the Budget

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What Do I Spend?2010

Budget Assumptions

Salaries 50,000 SoloOvertime 0FICA & Medicare 3,825 7.65%Benefits 0 Health and DentalProfit Sharing 0Bonuses 0Furn & Fixtures 0 Included in rentComputer 0 already have oneFirm Research Costs 0 NCBA CasemakerMembership Dues 500 NCBA & GBATravel and Lodging 0Meals & Entertainment 250 2 meals per monthSeminars, Training, & CLE's 500Firm Relations 200 Thank You notes, CardsClient Relations 200Employee Relations 0Telecommunications 660Malpractice Insurance 600Other Insurance 0Recruiting Expense 0Marketing Consultation 0Newspaper Advertising 0

Notes Payable 1 0TV Advertising 0Yellow Pages Advertising 0Other Advertising 2,400 ListingsOffice Supplies 500Law Library 300 Practice area booksRent 500Utilities 0 Included in rentOutside Services 1,000 Accounting and ITPostage 50Building & Grounds 0Printed materials 500Signage 300Licensing and Registration 300

Total Area Costs 62,585Admin Allocation 0Total Area Costs 62,585

Income

P/(L)

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Develop A Budget

Revenue Set fee structure Develop Lead Sources Determine Revenue Plan

Expenses Location Staff Support Fixed vs Variable

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Measure Results

Monthly Financials Track Leads by Source Track Expenses vs. Budget Revenue by case, by lead source, by realization rate Accounts Receivable

January 10, 2012January 10, 2012

Success Factors

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Spend Time “On” the Business

Set a Direction with a Plan

Set Goals and Measure Results

Dedicate Time to Your Business

Develop Non-Legal Business Relationships (BNI, Chamber of Commerce, Kiwanis)

Say what you are going to do….do what you said you would…..be honest with yourself

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Remember to Market Yourself

Every person you meet is a potential client or referral source

Marketing does not have to cost a lot of money but does require a huge investment

Make sure people know who you are and what you do

Take other lawyers to lunch and ask them for referrals

Be visible

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Get Involved

Professional Organizations

Find the “fit” for your interests and practice

Improve your skills

Develop important relationships

Referral Networks are key

Take leadership roles

Greensboro Bar/ Law Practice Management Section offer great resources

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Listservs Are Essential

Assists with preparing legal documents

Assists with finding experts and “go to” people

Easily viewed format

Use “specialty” bar listservs (defense, litigation, family law)

Expands the network of referral opportunities

Develop a variety of them as your resources

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Know Your Bars…..

The North Carolina State Bar is the licensing and disciplinary authority for all attorneys in North Carolina and it is an agency of the State Government…….

The North Carolina Bar Association is a volunteer organization of and for lawyers that provides benefits for members, including computerized legal research, group health insurance, continuing legal education, law practice management assistance…..

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Use Your Fellow Lawyers

Leverage their experience

Generous and willing to help you succeed

Work on co-counsel opportunities

22,000 of them in the state so you are not alone

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Owning Your Own Firm…..

Makes you an entrepreneur so act like one

Provides a sense of power

Brings tremendous satisfaction

And can be lots of fun