Law Practice Management Asked and Answered Blog

Category: Building

Jul 06, 2016

Law Firm Strategy – Building a Firm Brand

Question:

I am the owner of a fourteen attorney firm in the western suburbs of Chicago. I am 45 years old and I started my practice as a solo ten years ago. The firm focuses on business litigation exclusively. Like many law firms the name of the firm is My Name, LLC. The firm has grown rapidly and we have been successful. However, I am concerned that I should be building more of a "firm brand" and the firm is too much about me. I would appreciate your thoughts?

Response:

This is a common issue for solos and sole owners. While it may be an ego booster for you in the early days of your practice it can be a negative in future years, especially when you approach retirement and want to exit the practice. In essence the firm is all about you and the goodwill is you. This can have negative consequences when you:

Try to merge with another firm.
Try to sell your practice.
Try to approach certain clients.

I suggest that you consider the following to develop more of a firm image or brand rather than just you.

Do all you can to insure that the firm is not uniquely you.
Consider a firm name that does not include just your name. You might consider more of a trade name or a name that includes other partners or members if associates are made partners or members in the future .
Encourage your associates to develop their individual reputations/brands and feature their accomplishments in their bios on your website. (Writing, Speaking, CLE Presentations, Certifications, etc.)
Help your associates grow.
Consider at non-equity partnership for deserving associates.
Feature other attorneys in the firm in your marketing efforts and events.

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John W. Olmstead, MBA, Ph.D, CMC

Nov 10, 2015

Law Firm Building Ownership

Question:

I am a partner in a fourteen attorney firm in Chicago's western suburbs. We have five equity partners and nine associates. We are currently leasing office space that we have outgrown. As we are approaching the end of our lease we are considering buying our own building. We would appreciate your thoughts?

Response:

I find that many firms have difficulty dealing with all of the moving parts of buying and building out a building and the distractions and time that it takes away from the law practice. Owning your own building can provide numerous financial and tax advantages and If you decide to go this route hire professionals to help expedite the process and a real estate building management company to manage the building when it is completed.

I strongly suggest that you create a separate entity that will own the building and separate building ownership from the law firm ownership structure. I suggest that participation in ownership of the building be optional for law firm equity partners that want to invest in the building.

It is hard enough for new partners to fund their capital accounts or buy-ins without having a mandatory building buy-in. Recently I have seen a few merger and lateral partner opportunities go south as a result of buildings, real estate, and mandatory buy-ins.

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