1. Law Practice Management Class #1 - Introduction to Law Practice Management

2. Contact Information Scott Bassett Telephone: 941-794-2904 Cell: 941-773-5119 Email: scott@scottbassett.com scott@scottbassett.com

3. Born 02/07/1956, Des Moines, IA

4. Raised in Livonia, MI

5. Graduated from Stevenson High School in 1974

6. B.A. from Wayne State University in Detroit, 1978

7. J.D. from the University of Michigan in 1981

8. Private Practice with 25 Lawyer Firm in Suburban Detroit, 1981-1984

9. Clinical Professor at University of Michigan Law School Child Advocacy Law Clinic, 1984-1987

10. Chief Counsel of Civil Division at Legal Aid in Detroit, 1987-1990

11. Private Practice with 2 Lawyer and 3 Lawyer Firms, 1990-2002

12. Solo (Virtual) Appellate Practice, 2002-Present

13. Required Texts

14. Course Web Site www.bassettlpm.com This site will have reading assignments and supplemental reading materials.

15. Focus of Course Solo practitionersSolo practitioners Small firmsSmall firms New lawyers in larger firms who want to make an impact on how their firm operatesNew lawyers in larger firms who want to make an impact on how their firm operates

16. Changes in Technology

17. What my first secretary used in 1981

18. What our word processing department used in 1981

19. My first computer in 1981

20. My first PC in 1985

21. Managing a Law Practice = Managing Changes in Technology

22. But the cutting edge can be painful

23. Managing Law Firm Also = Managing People

24. Florida Bar 2012 Economics Survey

26. Managing a Law Firm Also = Managing Changes in Marketing Bates Oral Arguments 1 and 212

27. Most Lawyers Simply Don’t “Get” Marketing

28. They Don’t Like It and are Afraid of It

29. Why? Too Many Sleazy TV Ads

30. This is Supposed to be a Joke

31. But……

32. Managing a Law Firm Also = Managing Billing Practices

33. Hardball billing and collection

34. How Do Law Firms Set Fees?

35. Florida Bar 2012 Economics Survey

36. The overwhelming quest for billable hours

37. Florida Bar 2012 Economics Survey

38. Florida Bar 2010 Economics Survey

39. Why find alternatives to the billable hour? - Do the math

40. 1500 hours x $200/hour = $300,000 gross (so far, so good)

41. $300,000 less typical overhead of 50% for small law firm = $150,000 (still decent)

42. $150,000 less approx. 25% of fees that are uncollectable = $112,500 (and this is before personal income taxes) Drop Hourly Rate to $150, resultant pre-tax income is $84,375

43. Lawyer Income

44. Managing A Law Firm Also = Managing Law Firm Size

45. 2012 Florida Bar Economics Survey

46. Why lawyers start their own practices No choiceNo choice VoluntaryVoluntary

47. Advantages of own firm

48. Working for another lawyer first?

49. Working for another lawyer

50. Working in public sector first?

51. Taking “contract” work first?

52. Other employment options while saving money

53. Another job while starting law practice?

54. Should you specialize?

55. Selecting law firm name?

58. Solo or with others?

59. Partnership (or other formal relationship)

60. Not easy to find the right law partner

61. Solo practice

62. Shared office

63. Managing a Law Firm = Written “Business Plan”

64. Elements of Plan

65. LOMAS checklist as outline for “Business Plan” LOMAS New Practice Checklist LOMAS New Practice Checklist

66. Types of law firm business entities FL Rule Types of law firm business entities FL Rule 4-8.6 FL Rule FL Rule 4-8.6 Sole ProprietorshipSole Proprietorship General PartnershipGeneral Partnership Limited Liability Partnership (LLP)Limited Liability Partnership (LLP) Professional Service Corporation known as a Professional Association (PA)Professional Service Corporation known as a Professional Association (PA) Professional Limited Liability Company (PL)Professional Limited Liability Company (PL)

67. Sole proprietorship

68. General Partnership

69. Limited Liability Partnership (LLP)

70. Professional Association (PA)

71. Professional Limited Liability Company (PL)

72. Problem #1 You are starting a new law practice. Discuss and select a legal structure from the following choices: Sole Proprietorship General Partnership Limited Liability Partnership (LLP) Professional Service Corporation known as a Professional Association (PA) Professional Limited Liability Company (PL)