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BUDGETING AND BUDGETING AND PLANNING FOR SUCCESSPLANNING FOR SUCCESS
[email protected](336) 510-2150
www.johnsonparrislaw.com
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Strategic Planning: Strategic Planning: What We’ll CoverWhat We’ll Cover
PurposeElements of the PlanThe BudgetAction Items
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Purpose: SuccessPurpose: Success
You are a Business Owner◦Your Business is Law
Fail to plan and you plan to failImplementation should not await a
finished plan- Avoid Analysis Paralysis◦SWOT- Strengths, Weaknesses,
Opportunities,ThreatsA plan without accountability is
nothing
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Elements of the PlanElements of the Plan
Vision & Mission◦What are you Building and Why
Objectives◦What will you measure
Strategy◦What will make you successful
Action Plan◦What needs to be done
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The Business PlanThe Business Plan
Vision & Mission◦ Joe Schmoe PLLC will be the premier provider of traffic and misdemeanor criminal
representation in Greensboro and the first thought in a defendant’s mind when they encounter the police. We strive to provide zealous representation to bring fairness to the legal process for everyday citizens.
Objectives◦ We will generate fees to total $100,000 to achieve a $30,000 profit in the first
year. We will handle 40 misdemeanor cases at $2,000 each and 100 traffic ticket cases at $200 each to achieve our goal. My salary will be $50,000. The budget will be $100,000. Our profit will double in two years.
Strategy◦ Increase revenues and profit by building referral network and implementing
marketing plan. Increase revenues by growing misdemeanor clients. Hire staff to leverage low cost providers of services. Reduce appointed work to 1/3 of fees earned by increasing private clientele.
Action Plan◦ Identify referral sources- 1 mo. Personally contact referral sources and ask for
business- 3 mos. Start direct mail campaign- 1 mo. Hire staff- 6 mos. Take misdemeanor CLE classes- 4 mos. Draft marketing plan 2 mos.
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The BudgetThe Budget
Income◦Setting Fees, Getting Fees
Expenses◦Fixed, Variable
Tracking◦What will make you successful
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Budget TrackingBudget Tracking
Monthly Financialso Balance Sheet, P&L, Cash Flows
What you Earn◦By case, by referral source, by realization rate
What you Owe◦Your Expenses v. Budget
Who Owes You◦Accounts Receivable Billing effectively, client selection, time capture
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2013 Budget Assumptions
Salaries 50,000 SoloOvertime 0
FICA & Medicare 3,825 7.65%Benefits 0 Health and DentalProfit Sharing 0Bonuses 0
Furn & Fixtures 0 Included in rentComputer 0 already have oneFirm Research Costs 0 NCBA CasemakerMembership Dues 500 NCBA & GBATravel and Lodging 0
Meals & Entertainment 250 2 meals per monthSeminars, Training, & CLE's 500
Firm Relations 200 Thank You notes, CardsClient Relations 200
Employee Relations 0
Telecommunications 660
Malpractice Insurance 600
Other Insurance 0
Recruiting Expense 0
Marketing Consultation 0
Newspaper Advertising 0
Notes Payable 1 0
TV Advertising 0
Yellow Pages Advertising 0
Other Advertising 2,400 ListingsOffice Supplies 500
Law Library 300 Practice area booksRent 500
Utilities 0 Included in rentOutside Services 1,000 Accounting and ITPostage 50
Building & Grounds 0
Printed materials 500
Signage 300
Licensing and Registration 300
Total Area Costs 62,585
Admin Allocation 0
Total Area Costs 62,585
Income
P/(L)
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Income: How to Set FeesIncome: How to Set Fees
Rule of Professional Conduct 1.5ASK SOMEBODY!Research: the phone book, the
Internet, legal formsEstimate based on time and costsNegotiate with the potential client
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Income: How to Get FeesIncome: How to Get Fees
Attorney-Client Engagement Agreement◦Ask other attorneys◦State Bar Lawyer’s Handbook◦NCBA Alternate Billing Commission Forms
Be prepared- set your price frameworkMake it easy to payGet enough money up front
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Expenses: Fixed & VariableExpenses: Fixed & Variable
Fixed Costs◦What they are◦Negotiate◦Prioritize
Variable Costs◦Forecasting◦Strategies to Manage
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Success Factors: Spend Time “On” Success Factors: Spend Time “On” the Businessthe Business
Set a Direction with a PlanSet Goals and Measure ResultsDedicate Time to Your BusinessDevelop 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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Success Factors: Remember to Success Factors: Remember to Market YourselfMarket 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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Success Factors: Get InvolvedSuccess Factors: Get Involved
Professional OrganizationsFind the “fit” for your interests and practiceImprove your skillsDevelop important relationshipsReferral Networks are keyTake leadership rolesGreensboro Bar/ Law Practice Management
Section offer great resources
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Success Factors: Use Your Fellow Success Factors: Use Your Fellow LawyersLawyers
Leverage their experienceGenerous and willing to help you
succeedWork on co-counsel opportunities22,000 of them in the state so you are
not alone
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Success Factors: Listservs Are Success Factors: Listservs Are Essential Essential
Assists with preparing legal documentsAssists with finding experts and “go to” peopleEasily viewed formatUse “specialty” bar listservs (defense, litigation,
family law)Expands the network of referral opportunities
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Action ItemsAction Items
Draft a Business PlanDraft a Marketing PlanRead Rule of Professional Conduct
1.5Read 2008 FEO 10Price Your ServicesGet a one call away mentor