Citigroup v. Students

I'm not sure how I feel about this story. Apparently Citigroup is lobbying for people to oppose the President's new proposal to lend government-backed student loans directly to students. This would eliminate the "middleman," and possibly create a new department/agency/"bloated government wasteful entity" to handle student loan lending.

On one hand, I like the concept of not having to work through institutions like SallieMae to get money for college, but I'm partially opposed to bigger government.

There's a few things about Citigroup's letter that offend me. I don't believe that privatization of student loans actually has any beneficial effect on students. I know in my lending experience, I rarely examined the lender, and regualarly went with my school's suggestion. Also, I don't think that counseling programs are beneficial in helping students establish good behaviors (i.e. the bankruptcy process), rather they're simply another way to inform borrowers about the responsibility of paying back the loans.

I can't tell how to vote or feel, because I don't know, but you should definitely be aware of this push.

Hosted vs. Unhosted Exchange

I've noticed that the number 1 thing a lot solos and smaller law firms wonder is, "how can we share calendars among our attorneys and staff?" The simple answer is Microsoft Exchange. It's the standard, and the best.

However, most people gasp when they examine the price. Everyone is looking for "shortcuts" to capitalize on the Exchange platform, without the price. One program, ShareO, does the trick. It's not difficult to set up, and it works well. There are some glitches, but in general, can you beat the price tag? See a review here.

As Mr. Ross Kodner pointed out recently in a Solosez thread, Exchange comes with the system if you purchase MS Small Business Server software. This is a great advantage because you're getting all of the benefits of Exchange SBS, without compromising on the quality. We purchased a new server over 1 year ago in the office with SBS 2003 from Dell. It's a great product, great price, and it's wonderful to have synchronized calendars. Be advised though, there are some maintenance requirements that you must be aware of. It's not for the faint of heart to manage, but once it's up, you're doing great. Note: you can find some excellent (more affordable) server options by visiting the Dell Outlet. If you're not opposed to purchasing a computer someone else owned (and why would you with a Dell warranty), then this is a great option.

One final suggestion is hosted Exchange. This is often a simple alternative for a lot of firms who are concerned about the mechanics of their own Exchange system. I've opted (for a number of reason) to move my stuff to Sherweb. It's a great service, and at $9 per month, it's an unbeatable price. It took me less than 30 minutes to signup and setup my systems.

There are so many choices, but you can hardly go wrong with the one you make.

Feedburner

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Solo Practice University

I have to hand it to Susan Cartier Liebel, she has created a valuable tool for solo practitioners with her Solo Practice University.

I signed up as a "test" before the price increase deadline, thinking, "I'll try it out for a week, then quit." Man, I'm hooked!

There's so many different things to experience on the site, that one week or month, couldn't get you through. While I find that some topics may be "for beginners," there's so much advice in every class, that it's not worth passing up. You're getting a valuable "education" from real-life lawyers (like the adjuncts we all loved in law school), who actually, versus theoretically, know what the real world is like. This is the education you thought you were getting when you went to law school.

Twitter Marketing

Jay Fleischman posted this gem regarding Twitter on his Bankruptcy Practice Pro site. Jay is (in my opinion) the bankruptcy guru (see here for proof).

This post give an excellent analysis of using Twitter to your advantage. A lot of the older generation (and some young ones) are scoffing at Twitter and Facebook, because they seem childish or "stupid." If you're just starting out as a new attorney/solo, there's no better place to be. Twitter's a great way to get information quickly, and make sure you're staying ahead.

Workplace Visibility

There's a new article in the ABA Journal that at more BigLaw firms, young associates are opting for more time in the office, "being seen", as opposed to flexible schedules and part-time schedules. The reason: layoffs.

This got me thinking about whether face time is really that important. Obviously if you're a "home-office lawyer," then face time isn't important. How about situations like mine, where you're in a small firm or office-sharing arrangement?

I know that for some folks, being seen is as important as the work you're doing. We have one attorney in the office who quite commonly goes into each office at the start of the day to chat. He's the proverbial "social butterfly," and often imparts much wisdom. Another attorney is rarely in the office because of his demanding criminal/family law practice.

Both of these attorneys are quite successful, and each receives a fair number of referrals from attorneys in the office based on their specialties. I believe that your success then isn't necessarily based on the office time you're putting in, but rather, it's based on the connections you're making while you're at or away from your office.

Duty to Protect Private Information

Apparently the FTC sees identity theft as a major problem that needs to be rectified quickly. There's this interesting article on a new rule created by the FTC that requires creditors to have written policies stating how the creditor protects a client's private information. Lawyers get lumped into the rubric of "creditor" because most lawyers and law firms collect and keep lists or databases of private information. The rule requires that the creditor protect information and identify "red flags" that pose a threat to the private information.

This is serious stuff for attorneys. I don't think there are very many of us who could reasonably identify procedures we use to protect client information, let alone to articulate that into some meaningful written policy. It's a good thing to think about though as you're preparing or managing a practice. Just think about the multitude of ways that private information could be stolen.

For instance, how much do you know about your cleaning company's employees? Where are your files located? What type of information are you sending over the internet? How often do non-employees (family, friends, close colleagues, etc.) come past the formal reception "barrier"? What security measures do you have in place to protect your computers or wireless systems from potential attacks?

I don't disagree with the policy, it's a reasonable policy in light of the numerous concerns. Moreover, this gives law firms an opportunity to strengthen their protocols and eliminate or minimize severe risks.

Six Months of Productivity

Next week there's going to be a new flock of Oklahoma attorneys. In celebration of that event, I've decided to show you my balance sheet beginning from October 1, 2008 to today. You'll see I haven't made great money, but I've been able to pay the mortgage, a car payment, utilities, and feed my 2 kids. If you'd like some advice on how I've done it, check out this post.

ABSOLUTE LEGAL SERVICES, LLC - PROFIT & LOSS SHEET (Oct 1, 2008 - April 8, 2009)

Ordinary Income/Expense
Income
Hourly Fees 2,986.28
Legal Fee Income 17,898.87
Uncategorized Income 196.01

Total Income 21,063.16

Cost of Goods Sold
Subcontracted Legal Services 107.66
Total COGS 107.66

Gross Profit 20,955.50

Expense
Advertising -19.87
Automobile Expense 133.75
Bank Fees 254.40
Business License & Permits 100.00
Computer & Internet Expense 717.00
CLE 40.00
Dues & Subscriptions 50.00
Insurance
Professional Liability 275.95
Meals & Entertainment 146.20
Office Supplies 399.42
Postage & Delivery 119.28
Printing & Reproduction 15.00
Reconciliation Discrepancies 1,786.41 *Note: be more detailed on CC tracking
Rent 0.00 *Note: I save a lot b/c of my arrangement
Repairs & Maintenance 32.17
Research Services 240.00
Telephone Expenses 582.67
Travel Expense -29.70
Utilities 247.40

Total Expense 5,090.08

Net Ordinary Income 15,865.42

Other Income/Expense 84.95

Net Other Income -84.95

Net Income 15,780.47

Here's a few notes on the list. It's a little skewed because I just had (April 6) a significant contingent settlement that netted a large portion of the amount. I've noticed that a few of the numbers (ie "utilities") were misplaced and now are in their correct category (telephone). Also, you'll note that there's no student loan payments, poverty has it's advantages (said with jest and a smile). Those have to be considered in your solo decision.

For 6 months, I'm particularly satisfied. If I closed the practice today, I'd average about $2,600 as a monthly paycheck. Right now, that's only $31,000 per year. Sure, I could make a lot more working for someone else (maybe), but I'd have to sacrifice some things to do it.

The greatest thing I've seen is that you can do it, but you have to be smart. If you let yourself get carried away (I have on some things), you're going to burn.

Blog, Blog, Blog

The ABA Journal has an interesting story regarding the profitability of law firm blogs. This story contains an interesting perspective on how to bring in clients, and improve your firm's marketability. Of course, if you've been reading experts like Jim Calloway, Susan Cartier-Liebel, and Carolyn Elefant, you already knew this, and you probably are updating two or three.

6 Months

I've been practicing law, and in my own firm, for 6 months now. Of course, anyone who tells you that solo practice is the best decision right out of school is probably bluffing. Its been a good decision for me, although it's certainly a lot more comforting to know you'll have a paycheck each week, like clockwork, I'd hesitate changing what I'm doing. You can't beat deciding that an afternoon spent at the zoo, a movie, or the park with your family takes precedent over any type of law work.

For me the solo choice was a no-brainer (see here). It's quite easy to pick your "poison" when you're only given one choice.

Thus far, the greatest thing about solo practice is being able to manage and do the things I want to do. I'm getting ready to enroll in Solo Practice University, to help me develop ideas and build my practice. I'm also involved in religious and public legal networking forums to help develop relationships.

As always, if you're interested in getting advice, tips, etc. regarding my first 6 months or my progress to solo practice, drop me a line. You can also follow me on twitter: @absolute_legal. I post regular legal and nonsensical stuff.

As the February examinees are sworn in, I wish you all good luck. I hope you find much satisfaction in the practice of law.