Through the lens of bridging the access to justice gap, find the market opportunity in serving the modest income population. Consider what efficiencies, systems, and service offerings would enable you to grow and improve your practice with an eye on profit margins. Make a living by making a difference.
19. For more information
• Contact me at Anne-Marie.Rabago@Texasbar.com
• Sign up for Justice Gap News at http://txoji.com
• Follow the Texas Opportunity & Justice Incubator on social media
Who is not a lawyer? Paralegals? Legal assistant? Law students?
Who is a true solo practitioner?
Who is a small firm lawyer with an ownership/equity interest?
Who is a mid-size or large firm lawyer with an ownership/equity interest?
Who is an associate lawyer?
Which of you get to JUST lawyer? Which of you have business development responsibility? Billable hour requirements? Revenue responsibility?
How many of you went to LS (at least in some part) to help people?
How many of your have heard of this program?
Our dual mission:
assist solo and small firm attorneys with launching/developing sustainable legal businesses; and
provide pro bono and affordable legal services to underserved populations within the community.
Our values: Service, Entrepreneurship, Community, Wellness, Respect
Opportunities as seen through the lens of Bridging the Access to Justice Gap
THE MARKET OPPORTUNITY
Access to justice, to lawyers, to legal services - Only 20% of LI & 40% MI Americans with Civil Legal Needs are able to find lawyers to help them
Based on US Census Bureau data and a 2017 study published by the Henry J. Kaiser Family Foundation, we estimate there to be more than 12.7 million or 44.4% of the Texans in the justice gap. That is not including the 5.8 million that qualify for legal aid (where only 100,000 are served each year).
Lawyers have an interest in bridging this justice gap as more and more states consider allowing “limited practice by nonlawyers and/or investment by nonlawyers.”
When only 1 in 5
Using data from the World Justice Project (global – 65%) and American Bar Association’s 2016 Report on the Future of Legal Services (America – 31%)
What does this mean? Have legal needs that go unmet or unresolved with the assistance of a lawyer.
Professor Bill Henderson out of IN used Census data in 2015 to estimate that the average legal spend per US citizen was $232 per year.
With these numbers in Texas, that puts the value of this latent market between $2 – 4.3 billion dollars
5.1 billion vs. 7.8 billion globally
100 million vs. 327.2 million in the US
28.7 million Texans
EFFICIENCY – most of us are NOT lean mean operating machines
59% sought a referral
57% search on their own
16% did both
18% would NEVER seek a referral from family or friends
#5 top grievance – did not properly terminate or decline a matter
Inquiry to Consult to Engagement (could start with web traffic/call to action)
#1 - Answer the phone or the email, according to the Clio Legal Trends Report 2019
50% shop around
Have you “secret shopped” your firm?
Efficiency is the name of the game
Working on the business, not just IN the business
Creating systems – especially for repeatable processes
TDRPC 1.03 Communication - (a) A lawyer shall keep a client reasonably informed about the status of a matter and promptly comply with reasonable requests for information.
#1 top grievance – No/Poor communication
I think we can do better!
2.5 hours utilized – spent on revenue generating activities (31% of an 8 hour day)
2.0 hours realized – bill to client (80% of utilized hours)
1.7 hours collected – paid by client (86% of billed hours)
$280/hour in TX
$476/day ($114,240 annually with 2 weeks and 10 holidays)
CLIENT-CENTRIC SERVICES
Jack Newton (paraphrase from Clio Cloud 2019) –
We have a product/market fit problem – 81% of lawyers and law firms say they want to increase revenue, but have trouble finding business. Yet, potential clients struggle to get help with their legal problems. There is a massive opportunity to bridge that gap by meeting the demand of clients looking for solutions to their legal problem. BUT this will require lawyers and law firms to be entrepreneurial and to innovate the ways they deliver legal services.
No longer a sellers market
Customers are more informed and increasingly demand personalized service at reasonable costs
The law is not immune to the future use of online crowdsourced platforms
DOLLARS AND CENTS
Do you know your numbers?
What does your cash flow look like?
Monthly revenue? Annual revenue?
What are your outstandings/accounts receivable?
What is your overhead?
Reducing overhead is the best way to put more of your hard earned money in your pocket
Teledoc!?!
It starts with wanting to help people – make a difference…make an impact…
The lawyers I have the privilege to work with do what they do for purpose (and, yes, passion)
“Work life balance” is not a thing, think WL “blend” or “integration”
Are you efficient?
Are your services client-centric?
Do you have a handle on the dollars and cents?
Are you taking advantage of the market opportunity presented by the access to justice gap?
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