I Wasn't Emotionally Prepared for My Move-Out

Well, you know that my lease recently ended.  And you know that I started with an office that was snazzier than I needed.  So, I should have been thrilled at the opportunity to downsize, and I was.

And yet, it has been a painful experience.  Packing up my office was a lot like those scenes you see in movies, where someone packs up the house they've always lived in, and every item they touch holds its own memory.  Except in those scenes, its almost always fond memories that are evoked.  In my real-life move out, the memories were almost all bad, about promise unfulfilled.

First, I was forced to face what a pack rat I've been.  All that paper!  most of which I didn't need and went straight into the recycling bin, where it should have gone months or years ago.

Them there was the substance of so many of those papers.  Lost opportunities.  Poor follow-up.  And in way, way too many cases, time wasted.

There were the memories of how excited I was to move into the office, certain of how impressed potential clients would be, and that I'd be making money within a year, two at most.  That unfulfilled expectation is really putting a damper on my hopes for the new place, though I know I have to learn from my past experience.

Anyway, those bad memories kept hitting me as I packed up the office, and it was really tough because my wife was helping me pack and our young daughter was there most of the day, too.  So it made me even more conscious than I usually am that those failures meant that I had failed my family.  Had I not been so busy with so much packing and moving to do, I don't know how long I would have dwelt on those thoughts.  As it was, thank God, I was so busy that I couldn't dwell on them.  Still, they were enough to stress me out, to make me short with my wife even as she was helping me.

Now that I think about it, this is a purely cathartic post.  Not much you can learn from it.  And I don't mean to scare anyone out of going solo.  But it this post instills a little fear in you, that's not a bad thing.

My Lease is Up! Time for a Fresh Look at Overhead.

You've seen me post previously about renting too much or too nice of an office.  That was a BIG mistake of mine.  Worse yet, I had an escape clause that I could have exercised after either of the first two years of the lease, and I decided each time not to exercise it.  Dumb.

At the end of the first year, I figured I still needed the nice space to impress those clients that were going to walk through the door "any day now."  After all, it had only been a year, and everything I'd read told me I was supposed to still be losing money (which I was), so I thought I'd take it another year.  The two-year point was the pint, after all, at which I was supposed to start making money.

So another year went by, time to either get out of the lease or stick it out for the full three-year ride.  To tell you the truth, I can't really remember why I didn't exercise the early termination clause.  I know it was a conscious decision (i.e., that I didn't just forget and miss the deadline), but I can't remember why I made it.  Could be that I had a burst of business at the time that both made it inconvenient to move and convinced me that prosperity was around the corner.  Could be I was just stubborn and wasn't willing to admit that I had bitten off more than I could chew.  After all, I still had money in the bank back then.  Whatever the reason, I stayed in the for the long haul.

Now, the three years is up, and none too soon.  Beautiful building, great landlord, nice location, even fair rent -- but even the fair rent is more than I can afford right now.  So I am downsizing quite a bit.  A home office wasn't practical, so I still had to rent space, but at only about 36% of the rent I've been paying for the last year.  That ought to help.

A friend of mine helped me move some of my office furniture into storage (another expense, but I'm hoping I'll need it again in another year or so, and storing it is much cheaper than buying the same quality all over again).  He said to me as we were carrying something down to the truck, "I don't mean to sound callous, but I remember asking you as you were moving in (he helped with that, too), 'Are you sure you need all this space and this nice of an office?'"  I remembered that very clearly . . . damn!.

The change in office is a good opportunity to reevaluate all of my overhead.

Phone lines and Internet ISP?  Gone!  It will be less expensive for me to use cell phone for voice, Sprint wireless broadband for Internet, MyFax for Internet faxing.  With the wireless broadband, I can drop my ISP.  No hard feelings towards any of my vendors.  The AT&T service was fine, and I would happily recommend DSL Extreme, which was great.  But money is money.

Westlaw subscription?  That $500-a-month monkey on my back is over in about three more months, and I'm letting it drop.  I actually love the service, but handy as it has proven to be (working on those briefs and memoranda late at night, after the law library closes), my client load was never consistent enough for me to be sure I'd have clients to pass the cost through to every month.  I ate a lot of it out of my pocket.  Doing without will require two things: (1) a satisfactory, low-cost alternative (Loislaw, maybe) and (2) the discipline to adjust my work habits so I'm not doing late-night work and can get heavy-duty research done at the library (which happens to make Westlaw available to its patrons) during the day.

(You may be wondering why I have to work late at night when business has generally been slow.  Two reasons: (1) when I got business, it was in spurts, and (2) ADD [I think].)

The combined savings in rent, phone, Internet, and Westlaw will be around $1300 per month.  Yeah!

In any event, I'm sure happy for these changes.  Combined with a recent uptick in business, they are giving me reason to hope -- for around the 10th time or so since I opened my practice, I'm afraid --  that prosperity is right around the corner.

Here I go!

The Virtual Office

Guest-blogging at Build a Solo Practice, LLC, Stephanie Kimbro has this post about her virtual office set up. She has no physical office. For the tech-minded, this description of her on-line office sounds great:

My vlo [virtual law office] is my entire law office. My client files, client data, billing, invoices, accounts receivable, other accounting and administrative tools, calendars and other data management tools are located in the backend of the office. I have a central point where all of my cases are organized and it shows me the status and priority for better time management.

***

On my client’s side, they have access to their own homepages where they may view all of our online communications, pay me online, download and upload documents, and update client data, among other features. My clients feel like they can communicate with me 24/7 and on weekends which is a convenience to them and helps them feel like they are kept current on the status of the legal services they have asked me to work on.

Many lawyers are skittish about putting confidential information on-line, but Kimbro notes that communication via a secure internet connection is safer than transmitting information via e-mail.

Some lawyers have been using Basecamp or Backpack as lighter version of the vlo, but Kimbro and her husband have developed a complete "virtual law office" software package. To see how Kimbro has implemented it, go to her post for a link to her website.

If your practice or anticipated practice is amenable to this sort of set-up, it sounds like a great way to reduce overhead -- not to mention the tax break you'll get for working out of your house.

Don't Get Over Your Head in Overhead

If you're reading up on how to open your own law office, you will see advice to keep your overhead to a minimum. Take that advice seriously.

When I rented my office space, I spent about $600 more per month than I ideally wanted to. But the space was so nice, you see. It looked so professional. And it had a separate conference room. So in addition to the higher rent, I also spent around $2000 on a conference table and chairs.

All of this would have been fine if I had been able to generate more traffic into the office. As it is, I figure that conference room furniture cost about $100 per client or client prospect that has actually sat in the conference room, and right now I really wish my bank account had the extra $18,000 I've paid in rent these last 30 months.

And I don't think the "professionalism" of my office helped me sign a single client.

By all means, start with shared space or a sublease if at all possible. Home office, even better.