Think for yourself - Work your ideas, not others
Today, I had a discussion with a very bright individual who is seeking new office quarters. He was having difficulty with the math, so he thought. He was seeking to understand the interplay between basic rent, common area charges (charges for maintenance, taxes, etc. that the landlord assesses at the end of each lease year to cover the cost of operating the building, paid pro rata by each tenant), and his actual cost of occupancy (total actual rent!).
I suggested that he walk away from this bottom down thinking. Instead, I suggested he look at the situation bottom up, and get his real estate broker involved to earn his keep.
First, figure out what you want to pay for monthly and/or annual rent. You can do this in a number of different ways. You can say that historically I've earned X% profit on Y number of revenue dollars; when I move into new quarters, I will earn more revenue because (better facilities, closer to prospective clients, larger space to hire more staff, etc.) and therefore, with the same percentage for occupancy cost, I can pay more .... and that number is $X.
Or you can say my revenue is likely to stay the same even after the move (or I'm not sure and I want to be conservative) ... and don't want to pay more than the same rent I'm paying now. That number is $X.
With that number in mind, tell your broker to find you the space you require (with the specifications you want) for that amount. Don't worry what words are used, whether base rent or common area charges, etc. The lease contract must state that the maximum annual rent will be $X.
If the broker says that you can find plenty of space for that amount, great; if he says you're crazy, there is no space for that amount, then you have choices to make: Work harder, work smarter to earn more revenue/profit to pay the higher rent, reduce your profit and take-home pay, or join forces with another to share the space and cost of the space.
But, don't let others dictate how you should think. Don't let the system force you into a thinking pattern that will confuse you or prevent you from knowing what your cost of operation will be.
State of Jefferson
While I was in Yreka, CA, I learned about The State of Jefferson. This was a political movement in the late 1930s. The focus of the movement was to create a new state out of southern Oregon (dissatisfied with the power of northern Oregon) and Northern California (wanting to keep its riches - water) out of the greedy hands of Southern California.
Pearl Harbor, December 7th, 1941, put an end to this effort. The entire effort of everyone was turned to the War ... Though I didn't know about this group, they surfaced again in the early 1960s, if not earlier. It was Pat Brown, the greatest governor (IMHO) California ever had. It was his focus that built the University of California into a powerhouse, and it was he that successfully lead the Feather River project on the ballot. This assured that water from the north would flow into southern California. This brought water for the farmers in the area as well as the growing population. With water connecting the State, there is very little likelihood the two segments will be separated at any time.
But, the State of Jefferson is still a state of mind. There are many folks who would like to see the separation. But there is no consensus. So, it appears to be more of an historical society.
In working with your clients, are you separate from them? Or are you able to create an inseparable bond, as Governor Pat Brown did for the people of California?
Seven Feathers
We're in Canyonville, OR, at the Seven Feathers RV Park. This is the best RV park I've ever seen ... and they claim to be among the top 4 in the country. What a way to end the day.
We were staying in Yreka, CA, using that as a base to commute to Ashland, OR for the annual Oregon Shakespeare Festival. Got to see two great plays, She Loves Me and Twelfth Night. Then, today, my wife said her patience will permit us to stay in one spot only for 3 days. So, we got up and left Yreka.
En route, we developed a flat tire in the trailer. Had to call Good Sam to bail us out. They were great, get us help within the hour. The RV park my wife selected not only is one of the best, but also has a truck and tire facility adjacent to it ... the only one open today, July 4th! What a coincidence. They looked at our tire; they believe it was the stem, not the tire ... and took care of it. They will even come to the RV Park tomorrow to check it again, making sure the tire pressure holds, before we embark on our next phase of the trip.
That is service! That is caring for the customer ... What have you done with your clients lately to compel them to say such things about you? His name and number will go in my book ... and should I ever need someone of his skill set anywhere in the State of Oregon, he's the first one I'll call. Will your clients and former clients call you before they call anyone else? Will they call you on behalf of their friends and colleagues before they call anyone else? If not, why not? Look inward to address your operations and client management challenges before you look outward ... Why waste your money on marketing if you can't satisfy your clients once they arrive?
Ed interviews Sharon D. Nelson and John W. Simek, principals of the nationally known computer forensics and legal technology consulting firm, Sensei Enterprises, Inc.
Ed interviews both Sharon D. Nelson and John W. Simek, principals of the nationally known computer forensics and legal technology consulting firm, Sensei Enterprises, Inc. Sharon and John are co-authors of The 2010 Solo and Small Firm Legal Technology Guide and The Electronic Evidence Handbook. Sharon is also co-author of the book, How Good Lawyers Survive Bad Times. They discuss the good, the bad and the ugly of today's social media and how lawyers can most effectively use this new channel of distribution for their ideas and communicating their expertise to potential clients.
24 minutes, 17 seconds
5.7MB
