May 18, 2006

Growing Your Firm Virtually

By Debra Bruce

The Internet and a myriad of other technological advances have literally changed the face of the practice of law. In fact, sometimes we don’t even see the faces of our client, the lawyer on the other side, or some of the co-workers in our own firm. While these developments have allowed the mega-firms to go global, they have also created competitive opportunities for small and medium-sized firms.Without endorsing any particular service or resource, we’ll share some information about a few virtual resources that smaller firms use to increase their flexibility and stay competitive.

In a companion column in this issue of The Practice Manager, Gerry Morris explains how a small firm can use technology to permit workers to contribute from home or other remote locations without additional expense if you have Windows XP Professional. If the method he describes will not work for your office, or you need remote access from anywhere, subscription services such as Go to My PC and Log Me In provide that capability for a monthly fee. In this column we’ll take a look at other benefits and resources to consider as you decide whether to grow your firm virtually.

Why would your firm want to engage virtual or remote workers?
• To expand capacity without having to move offices or increase office rent
• To add contract lawyers or support staff without adding the cost of health insurance, workers comp, vacation and sick pay, furniture and equipment and other employee costs
• To benefit from experience and expertise that may be difficult to obtain locally in a small city
• To retain a talented worker moving to another city to accommodate a spouse’s career
• To better serve an important client with facilities in multiple cities
• To retain a lawyer who desires to work from home or on flex-time to accommodate child care, elder care or personal disability needs
• To have the flexibility to expand and shrink the work force with contract workers as needed
• To use contract engagements to reduce administrative burdens of payroll taxes and other filings
• To try out new workers on a contract basis without committing to use them again

How do you find contract lawyers?
Many legal recruiting firms also offer temporary or contract lawyer services. An ad in the bar journal, an inquiry on legal listservs and blogs, or a posting at a nearby law school can also produce a number of candidates. Some solo attorneys still building their practices may be willing to offer contract services to your firm. The grapevine may be your best resource, because candidates are more likely to come with a recommendation from a source you trust. If you are looking for part-time help, consider asking for recommendations from lawyers in their 30’s. They may know lawyers with young children who are seeking to work reduced or flexible hours.

How do you find part-time or temporary support staff that can work remotely?
To find additional support staff, make similar searches using the above suggested resources and supplement them by running Internet searches on terms like “virtual legal assistant”and “virtual paralegal.” Although a virtual assistant can be in another city or another time zone, if you want to engage someone close to home, include the name of your city among the search terms.

What kinds of services can virtual assistants offer to your firm?
Although skills and experience vary, virtual assistants are used for many services, including
• Legal/Dictation Transcription
• Preparation of Documents
• Word Processing
• Desktop Publishing
• Secretarial Services
• Data Entry
• Database Design
• Spreadsheet Design
• Bookkeeping
• Travel Arrangements
• Internet Research
• Event Planning
• Phone Answering Service
• Proofreading and Editing
A few websites to check out for dictation transcription are
http://www.iavoa.com/dictation.html
www.The24HourSecretary.com
http://www.legaltypist.com/.
Some sites that offer other virtual services lawyers use are http://www.eliteofficesupport.com/
http://www.va4u.com/
www.virtualparalegal.biz.
To read about another lawyer’s experience in trying out virtual legal assistance, visit this blog site:
http://greatestamericanlawyer.typepad.com/greatest_american_lawyer/virtual_clerks_paralegals/index.html .

What do I need to provide to my virtual workers?
If you hire contract workers experienced at working virtually, they will most likely have all the equipment they need, including high speed internet connection, computer and supplies. They may invoice you for supplies used in doing your work, such as mailing envelopes and file folders, and you may need to supply them with some of your letterhead. Contract lawyers may want to verify that you have malpractice insurance that covers their work on your projects.

To protect client confidentiality, you will probably want each worker to sign an independent contractor agreement that mandates confidentiality and requires that they delete files from their hard drives at the conclusion of the assignment. If your virtual workers also work for other firms, you will also need a good conflict checking mechanism.

What should you expect to pay for virtual services?
In general, contract lawyers that you hire directly (rather than through a legal recruiting agency) tend to be quite a bargain. You should probably expect to pay about 50% of what you will charge out for the services, but rates may run for as little as $50 per hour. Of course, rates vary widely based on experience, the type of expertise required, the amount of work contracted, length of contract and location of the lawyer. Rates for virtual assistants range from $15 to $75 per hour, with the rates being influenced primarily by the level of expertise required and the volume of work contracted. Discounts are given for commitments to larger monthly blocks of time, and one-time projects cost a premium.

What does a virtual firm really look like?
The availability of virtual services has spawned a new breed of law firm based on flexibility and low overhead. If you are wondering what such new firms look like and how they operate on a day-to-day basis, you can read articles about two such successful firms at
http://www.smartmoney.com/smallbiz/inthetrenches/index.cfm?story=20050929

http://starbulletin.com/2005/10/23/business/story01.html.

• Phone Answering Service
• Proofreading and Editing
A few websites to check out for dictation transcription are
http://www.iavoa.com/dictation.html
www.The24HourSecretary.com
http://www.legaltypist.com/.
Some sites that offer other virtual services lawyers use are http://www.eliteofficesupport.com/
http://www.va4u.com/
www.virtualparalegal.biz.
To read about another lawyer’s experience in trying out virtual legal assistance, visit this blog site:
http://greatestamericanlawyer.typepad.com/greatest_american_lawyer/virtual_clerks_paralegals/index.html .

What do I need to provide to my virtual workers?
If you hire contract workers experienced at working virtually, they will most likely have all the equipment they need, including high speed internet connection, computer and supplies. They may invoice you for supplies used in doing your work, such as mailing envelopes and file folders, and you may need to supply them with some of your letterhead. Contract lawyers may want to verify that you have malpractice insurance that covers their work on your projects.

To protect client confidentiality, you will probably want each worker to sign an independent contractor agreement that mandates confidentiality and requires that they delete files from their hard drives at the conclusion of the assignment. If your virtual workers also work for other firms, you will also need a good conflict checking mechanism.

What should you expect to pay for virtual services?
In general, contract lawyers that you hire directly (rather than through a legal recruiting agency) tend to be quite a bargain. You should probably expect to pay about 50% of what you will charge out for the services, but rates may run for as little as $50 per hour. Of course, rates vary widely based on experience, the type of expertise required, the amount of work contracted, length of contract and location of the lawyer. Rates for virtual assistants range from $15 to $75 per hour, with the rates being influenced primarily by the level of expertise required and the volume of work contracted. Discounts are given for commitments to larger monthly blocks of time, and one-time projects cost a premium.

What does a virtual firm really look like?
The availability of virtual services has spawned a new breed of law firm based on flexibility and low overhead. If you are wondering what such new firms look like and how they operate on a day-to-day basis, you can read articles about two such successful firms at
http://www.smartmoney.com/smallbiz/inthetrenches/index.cfm?story=20050929

http://starbulletin.com/2005/10/23/business/story01.html.

• Phone Answering Service
• Proofreading and Editing
A few websites to check out for dictation transcription are
http://www.iavoa.com/dictation.html
www.The24HourSecretary.com
http://www.legaltypist.com/.
Some sites that offer other virtual services lawyers use are http://www.eliteofficesupport.com/
http://www.va4u.com/
www.virtualparalegal.biz.
To read about another lawyer’s experience in trying out virtual legal assistance, visit this blog site:
http://greatestamericanlawyer.typepad.com/greatest_american_lawyer/virtual_clerks_paralegals/index.html .

What do I need to provide to my virtual workers?
If you hire contract workers experienced at working virtually, they will most likely have all the equipment they need, including high speed internet connection, computer and supplies. They may invoice you for supplies used in doing your work, such as mailing envelopes and file folders, and you may need to supply them with some of your letterhead. Contract lawyers may want to verify that you have malpractice insurance that covers their work on your projects.

To protect client confidentiality, you will probably want each worker to sign an independent contractor agreement that mandates confidentiality and requires that they delete files from their hard drives at the conclusion of the assignment. If your virtual workers also work for other firms, you will also need a good conflict checking mechanism.

What should you expect to pay for virtual services?
In general, contract lawyers that you hire directly (rather than through a legal recruiting agency) tend to be quite a bargain. You should probably expect to pay about 50% of what you will charge out for the services, but rates may run for as little as $50 per hour. Of course, rates vary widely based on experience, the type of expertise required, the amount of work contracted, length of contract and location of the lawyer. Rates for virtual assistants range from $15 to $75 per hour, with the rates being influenced primarily by the level of expertise required and the volume of work contracted. Discounts are given for commitments to larger monthly blocks of time, and one-time projects cost a premium.

What does a virtual firm really look like?
The availability of virtual services has spawned a new breed of law firm based on flexibility and low overhead. If you are wondering what such new firms look like and how they operate on a day-to-day basis, you can read articles about two such successful firms at
http://www.smartmoney.com/smallbiz/inthetrenches/index.cfm?story=20050929

http://starbulletin.com/2005/10/23/business/story01.html.

The first link has a story in Smart Money magazine about a virtual law firm with 4 contract lawyers, 2 administrative assistants and a law clerk, all virtual. The founder of the firm pays a preset fee based on the amount of time a project should take. She does not provide any guaranteed hours or guaranteed pay to her workers, thus keeping overhead in line with the workload.

The second link above takes you to an October 23, 2005 article in the Honolulu Star Bulletin about a senior partner in a prestigious Honolulu firm who left a corporate and securities practice to form a virtual law firm. The firm had only virtual associates and a suite of conference rooms. One year out, the founder was making as much money as he did at the old firm.

So, if you are wondering how to expand your firm without significantly increasing your overhead or taking a long term risk, think virtually!

Debra Bruce (www.lawyer-coach.com) practiced law for 18 years, before becoming a professionally trained Executive Coach for lawyers. She is a member of the Law Practice Management Committee of the State Bar of Texas, and the co-founder of Houston Coaching Network, the Houston Chapter of the International Coach Federation.

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