Diligent planning is better than 'winging it'

At first, the excitement and novelty of going solo and launching a new law practice is exhilarating, stirring feelings of excitement, independence and pride. But then, reality quickly sets in along with the realization that serious planning must begin in order to ensure a smooth transition from employee to employer and manager to manager. "Even though there was some anxiety, for me, it was much easier on the soul to be in a small institution, so I ended my former partnership and formed my own firm," explained Janice Brown, who established the Brown Law Group last year after a distinguished tenure with a downtown law firm specializing in employee law. "Every day now, I feel extremely fortunate to practice law in my own unique style, with absolute integrity, with talented lawyers working side by side with me, with a quality support staff, serving appreciative clients and making a good living. It's a dream come true." Brown first read a book called "The E-Myth," a must-read for anyone possessing an entrepreneurial spirit. This book clearly explains the biggest myth that entrepreneurs face. As applied to lawyers, that myth is that the business of law is the same as the practice of law. It isn't. Brown says she often hears her colleagues complain that the business of law interferes with the practice of law. That feeling of interference then causes them to resent or marginalize the business components of their practice, which ultimately results in a mismanaged law firm. Lawyers who step out on their own must embrace the business and operational management of their firms as an essential element of the practice. And by embracing, she means committing to it with the same enthusiasm and diligence that they would with any other aspect of the practice of law. After reading the book, Brown retained a business coach to assist with the formation of the new practice, a decision she'll never regret. The coach taught her to apply basic business principles to her law business. Surely, if these principles worked for the likes of Microsoft (Nasdaq: MSFT), they clearly should, and did, work for her small firm. Brown's business coach was helpful in defining the mission and vision for the firm and identifying seven basic concepts that should be considered when establishing a firm. Those concepts include management, administration, finance, sales, marketing, production and quality control. "Take the time to create a notebook with each of these concepts organized by tabs," Brown said. "Within those tabs, include a mini-mission for that particular category, and a 'to-do' list itemizing specific tasks that will need to be performed in order to achieve the prescribed goals for that category. It's also critical to introduce a time management system where these tasks can be scheduled and deadlines imposed. If you schedule the project, and make the commitment to complete it, you are far more likely to be successful in achieving your goals." For example, under the management category, Brown meets monthly with her litigation and office manager. She makes a point of hiring quality people and compensating her top staffers well to reduce turnover and provide incentives for staff retention. She provides regular and honest performance reviews and insists on a positive attitude and strong work ethic among staff that promotes a culture of competency and effective client relations. She also plans a company retreat each year to make sure that everyone in the firm is on the same page. "At our management meetings, we go through the booklet to see where we are as compared to where we plan to be," Brown explained. "Surprisingly, this process always works and most of the time, we are ahead of the projections that I thought were possible." Recently, Brown hired a CPA to assist on a part-time basis with finances, the best money she has ever spent, she says. The CPA also happens to be a personal accountant and astute financial manager, helping Brown understand how best to meet her firm's financial goals. Brown meets with her production staff once a month to review every active case in the office and determine its status and progress. She also recommends having a well-organized litigation manager who can ensure that applicable trial and deposition dates are calendared and e-mailed to all parties. Of all these basic business principles, one of the most important is the creation of the firm's mission statement. A mission statement should be a vision for the firm that reflects fundamental beliefs staff members and principals can rally around. It must be clear, precise and supported by everyone in the company. "It has been said that if you do not lay out an agenda for your employees, they will have their own -- and it might not be consistent with yours," Brown added. "Concepts such as excellence, professionalism and teamwork, used to comprise a mission statement, are the very core concepts that make people feel positive about their working environment." After creating the mission statement, which serves as the firm's guiding principles, the next step is laying the framework for a well-functioning and profitable business. The best way to do that is to envision how the firm is to function before undertaking any business or clients. "The most important consideration about setting goals for your business, or any other aspect of your life for that matter, is to envision the end result of where you want to be before you actually start determining how to get there," Brown explained. "This is a very difficult concept to grasp for lawyers, who typically jump into the 'how' before figuring out 'where' they are going. In other words, it is difficult to develop a plan by looking backwards, which in some instances is the opposite of practicing law. Law looks backwards by relying on precedent. Planning looks forward." Ultimately, attorneys considering going solo should ask themselves why they decided to become lawyers in the first place. For Brown, it was to make a difference in this world. "That lawyers can actually love their working environment is a very important concept for me. I am committed to being successful, happy and working with talented people for appreciative clients. I don't believe that any of those concepts can or should be compromised. And with some careful planning, they don't have to be."