Stabilize - Reset Your Law Practice

We are all faced with unprecedented health and financial events in our world these days. Community mitigation aims to slow the spread of COVID-19 epidemic, for our health systems to cope, and to give time for the scientists to develop treatments and vaccines. Our last post on how to avoid getting sick What matters most for you today. The latest developments we are facing involve “stay home” orders and other restrictions on daily activity that effectively result in a Lock-down.

Although our activities have been restricted, life must go on. We, as people, by nature, live to overcome. These current events, the virus and the resulting lock-down can be a perfect opportunity to reset and reassess your next chapter law practice end game . In a recent Blog we asked, “what is your end game?” That question was asked in the context of establishing an estate plan or exit strategy from your law practice business. Well, given current events, your end game, whatever it was, has changed. The vast majority of us are now in survival mode. The question we are asking is, what can we do today just to get by?

Our focus has narrowed to how to keep the doors open, how to stay in business. But in order to continue in the practice of law we must change the way we do business. Getting up each morning, getting ready, driving to work (a physical location outside the home), opening the front door, turning on the lights, sitting down in an office, and working on a computer and waiting for your clients to arrive for their appointments. Gone!

It’s time to come up with a new plan. We need to adapt to new processes, new procedures, new methods of getting the job done, to keep cash flow coming in to make ends meet. Given the challenges suddenly associated with face to face contact, perhaps it's time to consider adopting a virtual unified client communication portal and case management as we introduced in San Jose Innovation and Law California State Bar convention in 2013.

Rebuilding cash flow is probably not going to happen overnight, or all at once. More likely, cash flow will recoup incrementally 10, 20, 30-50%. So it may be necessary to also look at other income options just to maintain sustenance, to make ends meet.

alternatives to rebuild cash flow

Connections Matter More than Ever Now Be proactive--make calls to clients, current and past, to see how they’re doing, volunteer status of matter, ask them if there is anything you can do to help. Not just regarding legal services. Be empathetic--this is a very scary and desperate time for many. Be a friend. Law offices are adapting to physical distancing even as the very nature of client relationships are evolving.
Contract Work, Affiliate Consider other areas of practice, Business Law, Contracts, Civil Practice, Patent Law, etc.
Working Remote Online There is no need to reinvent the wheel, for years millions of mobile workers have been using their smart phones, iPads, laptops, desktops in home offices, business suites, on the road, in public spaces, in their cars, on their hikes or at the beach. Revisit "Best practices of working remotely".
Contract to Affiliate with a law practice that may be currently more resilient in current needs and trends, like bankruptcy, estate planning, civil litigation and family law. Working from home-remote best practices
Viability of Your Law Practice. Consider having a look at any financial or data collection you might have had to determine the true business viability, based on the last 1-3 years of data and the vital signs, as a way of measuring the health of your law practice. Opportunity to do a bottoms up budget reset, with zero-based budgeting to focus on the essentials.
Merger with another lawyer or law firm is another option. Forming an Of Counsel relationship with another firm is another phase out option. More on imagining the next chapter law practice end game

Despite the crisis we’re experiencing, this WILL pass. We just need to make it and support our communities to the through until then. In addition to adapting a new infrastructure- such as-online options in the form of unified communication portal and other well established tools and applications to enable business continuation, there are government programs available for financial support and stabilization.

FINANCIAL Resources

S.3548 - CARES ACT [Coronavirus] Aid, Relief, and Economic Security Act or the CARES Act This bill addresses economic impacts of, and otherwise responds to, the COVID-19 (coronavirus) outbreak. The bill authorizes emergency loans to distressed businesses, including air carriers, and suspends certain aviation excise taxes. With respect to small businesses, the bill establishes, and provides funding for, forgivable bridge loans; and provides additional funding for grants and technical assistance.
In addition to the personal financial stimulus, there are several programs that are available for businesses SBA Economic Injury Disaster Loan Program (EIDL) and emergency grants, and small business interruption loans. Thanks to the team at Creative Planning for compiling Quick reference guide for COVID-19 assistance packages
Here is another resource on the Economic Security Act. [Coronavirus] Aid, Relief, and Economic Security Act: What Small Businesses Need to Know. Everything you need to know about the Paycheck Protection Loan and the SBA Economic Injury Disaster Loan programs. US Chamber

What you do in response to this crisis matters. In 6-12 months from now, when you look back to this time, will you look back with satisfaction that you did whatever you could to continue to support your community and adapt your law practice, or will you look back with regret that you could have done things differently. Take action now to make that difference.

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