Even Business School Won't Teach You This About Running a Law Firm (Ep. 160)

Written By Adedayo Adekunle

In the legal profession, especially in personal injury and medical malpractice, understanding the business side is just as crucial as knowing the law itself. In a recent conversation with Jeffrey Kimmel, an experienced attorney from New York City, we explored the unique challenges faced by law firms operating on a contingency model. This post delves into the insights shared by Jeffrey about managing a law firm, the transition to new areas like mass torts, and the financial intricacies involved.

The Transition from Law School to Business Management

Many aspiring lawyers focus solely on legal education, often overlooking the business aspects of running a law firm. Jeffrey shared, "Even with a business degree from Wharton, law school didn’t prepare me for managing a firm." This statement highlights a common gap in legal education, where the focus is primarily on legal theory rather than practical business skills.

The Challenge of Managing a Contingency-Based Business

Running a law firm that operates on a contingency basis presents unique financial challenges. Jeffrey explained, "The bills come in every month, while settlements can take weeks or months to materialize." This means lawyers have to plan carefully and often rely on financial tools like lines of credit to manage cash flow during lean periods.

- Key Insight: Understanding the financial landscape is essential for law firm management.

- Common Mistake: Many attorneys underestimate the importance of financial planning in the contingency model.

Expanding Into Mass Torts

In addition to personal injury and medical malpractice, Jeffrey has recently ventured into mass torts. He explained that this area offers new opportunities for revenue but also requires a solid understanding of the market and effective marketing strategies.

- Why It Matters: Expanding service offerings helps firms secure additional income streams, especially during financial droughts.

- Example: Jeffrey’s firm is actively generating leads through social media and other marketing channels to tap into the mass tort market.

Building the Right Financial Partnerships

Finding a banking partner who understands the nuances of a contingency-based law firm can be challenging. Jeffrey noted his experience with traditional banks, stating, "They often don’t understand the waiting period for settlements, which complicates financing." He successfully partnered with Esquire Bank, which specializes in serving legal professionals and understands the cash flow dynamics of a law firm.

- Key Takeaway: Choosing the right banking partner is crucial for law firms that operate under a contingency model.

Conclusion

Managing a law firm requires more than just a legal education; it demands a robust understanding of business principles, financial management, and strategic expansion. As Jeffrey Kimmel has illustrated, navigating these challenges can lead to a thriving practice that adapts to the evolving legal landscape.

For attorneys looking to improve their business acumen, it’s essential to seek knowledge beyond the courtroom.

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About Jeffrey Kimmel:

Jeff Kimmel has positioned himself as a fierce business leader in the legal industry. In his role as Partner and CEO, he has navigated the firm’s rapid growth and elevated its status to one of the leading and most progressive personal injury law firms in New York. His recognition as a “Trailblazer” by the New York Law Journal in its inaugural list of attorneys identified Jeff as a business leader and true agent of change in the legal field.

As a graduate of Wharton Business School and Brooklyn Law School, Jeff has meticulously combined his entrepreneurial business background with his keen analytical legal sense to cultivate not just a dynamic law firm, but an effective, client-oriented business that supports and promotes lawyer development, firm efficiency processes, case value maximization protocols, staffing diversity, and community outreach programs.

“I’m extremely fortunate to be a part of the continuous growth and success of our firm. The lawyers and staff all work hard to achieve meaningful results for our clients and restore for them some security and normalcy in their lives after a traumatic event. There’s a lot of satisfaction in that.”

Jeff prides himself in developing a trusted firm, widely respected by the industry and clients. To Jeff, the firm’s reputation is paramount to the success of the ever-growing list of satisfied clients. This has led to consistent referrals, not just from those in need of legal representation, but also by referring attorneys who appreciate the wealth of experience and extraordinary efforts put forth to ensure that the value of each case is maximized.

As an accomplished trial attorney, Jeff makes certain that the firm spares no expense in prosecuting any case. While the insurance companies battling the firm are armed with unlimited resources, SSKB’s history of financial achievements has enabled our trial attorneys to prepare and try cases unencumbered by costs.

Jeff’s extraordinary efforts have been recognized in and out of the courtroom. He is widely known in the industry for his various professional publications, some of which include articles published in the New York Law Journal and a chapter on trial preparation and strategy contributed to the popular “Inside the Minds” series by Thomson Reuter. Additionally, Jeff was invited as an inaugural contributor to the New York Law Journal’s “Smart Litigator” and has provided commentary and expertise on News 12, CNN, ABC, CBS, NBC, and Fox news stations as a legal analyst.

Jeff is also seen as a new thought leader within the legal community as he constantly reciprocates his passion and knowledge of the law as a sought-after lecturer and mentor. He frequently lectures attorneys on trial-related topics for the National Business Institute (NBI), NYS Academy of Trial Lawyers, New York County Lawyers’ Association, and Brooklyn Law School. Additionally, he participates in CLE webinars for Lawline, Clear Law Institute, National Academy of Continuing Education, and myLawCLE. Jeff also regularly participates as a judge in Yale University’s annual Mock Trial competition.

A proud and active participant in a number of professional organizations, Jeff served as chair of the Advisory Committee at Nassau-Suffolk Law Services and as a member of the We Care Committee at Nassau County Bar Association. He was highly active in the New York County Lawyers’ Association, serving as a former member of the Board of Directors, chair of the Committee on Committees, and chair of the Young Lawyers Section, where he established a successful Mentoring Program.

Adedayo Adekunle
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