Notes from Howard J. Finkelstein on The Growth Switch Podcast
After spending many years working in BigLaw, Howard Finkelstein was ready for a shift in the way he does business. Creating HJF Law was not only a step toward practicing law the way he was most comfortable with, it was a step toward creating an entirely new model that is better aligned with his ideal clients – founders and startups.
Finkelstein was recently hosted by the Growth Switch Podcast. Host Alexey Gutin, based in Dubai, is a fractional CMO for B2B firms, host of the Legal Leadership series on the Growth Switch Podcast, and founder at Ariz Media.
Finkelstein sat with Gutin to discuss how HJF Law replaced billable hours with a subscription. In this blog, we’ll share some highlights from their interview. Listen to the full podcast here.
A New Thought Process
Finkelstein pivoted from working with major corporations in the BigLaw world to working with startups. BigLaw meant big egos, too much stress, and a rigid operational pattern, leading Finkelstein to believe there had to be a better way. He opened up his own practice, originally hoping to serve similar clients as he had in the past, but finding they were used to the BigLaw way of working.
Bringing a plethora of skills from decades of law practice, the new firm grew quickly to support younger, pre-scale clients. Right away, he realized the significant difference in impact he is able to make when working with this type of client.
“You have the opportunity to really help people build a business,” Finkelstein said.
Helping founders to understand everything that is needed during the startup process gave Finkelstein such gratification that he decided to focus his practice exclusively toward startups.
Small Firm = Big Impact
As the managing partner at a boutique law firm, Finkelstein finds more enjoyment in the practice. He also enjoys close collaboration with his associates. Here, the team has the freedom to help clients that wouldn’t be possible practicing with a bigger firm.
When working with an early client, Finkelstein realized their challenge to afford to pay certain fees like travel time, and pushed back when seeing billable items like a 15-minute phone call.
Finkelstein agreed, realizing this is one of the reasons he wanted to leave BigLaw. He wants to help the clients, and startup founders may not have a lot of cash at their early stages. At the same time, clients should have the ability to feel comfortable reaching out to their attorney for help when needed, without worrying about spending their last penny to get the advice they need.
“If you have any problem, you should be able to call me without having economic consequences. That’s why I dipped into the idea of … Maybe I could solve this problem by charging [month-to-month],” Finkelstein said.
Finkelstein spent a lot of time developing and refining this model. Operating on a subscription-basis rather than charging by the hour creates a mutually beneficial relationship for both the firm and its clients. It offers the ability to be proactive for clients, conducting research, sending memos, and properly addressing challenges before they become major issues.
Subscriptions make cash flow predictable for the firm while also making it easier for clients to proactively seek legal help without worrying about the cost of sending an email.
“I’m not billing my time at any value. I’m simply working,” Finkelstein said.
While this model may not be the right answer for every attorney, Finkelstein believes it could be the basis for a whole revolution in attorney billing. Though some firms and their members have huge aspirations, as long as the team is on the same page regarding firm culture, the model could potentially work well for others.
A True Team Effort
/Several of the major fundamentals learned while practicing in BigLaw carried over to Finkelstein’s current practice, namely: mentoring. One valuable practice is carefully reviewing documents with associates, spending time to ensure a well-rounded understanding to grow their level of expertise.
Finkelstein also offers associates more responsibility than would be expected at a BigLaw firm, while remaining open to questions to help them feel comfortable. This level of collaboration facilitates more understanding and readiness for more complex tasks, allowing associates to grow with the firm rather than just work for the firm. This model of training and promoting feels more aligned with Finkelstein’s personal values.
One priority traveled with Finkelstein from BigLaw: operating with knowledge of good standards of practice. However, at HJF Law, this knowledge is spread across all team members. Here, no one is specialized; everyone works together with every client. Packages can include biweekly meetings for the entire team to get to know the clients, furthering the collaborative mindset and allowing clients to feel listened to and heard.
The Best Fit to Protect Startups
HJF Law offers true Fractional General Counsel. The team is present when the client is making plans and decisions to offer advice. Like in-house counsel, Finkelstein hopes the firm’s clients get more than they would from the average outside firm.
About 90% of the firm’s clients connect through word of mouth. HJF Law is exclusive with clientele, focusing more on finding clients who are the best fit.
For Finkelstein, success is finding the ideal client – a founder of a growing business – rather than growing the largest firm possible.
“I’m not a salesperson; what sells is what we do.”
For clients, Finkelstein often finds those reaching success are the people who have a spark, a vision, and the right personality to fit with their business. There, the success compound for the firm and the founder alike.
Securing Counsel Early Supports Startup Success
HJF Law’s motto is “It’s never too early to hire a lawyer.” Finkelstein has witnessed many mistakes made during the startup formation stage. The HJF Law team firmly believes it’s better to hire early and proceed smoothly than it is to go back and fix mistakes. Some documents must be filed within a certain time, and if founders miss certain timelines and windows, they may miss out on multiple opportunities.
At HJF Law, we want to make sure your startup benefits from every opportunity possible.
For founders considering securing legal counsel at the early stage of their business, reach out to (917) 267-8184 or visit hjflaw.com.
To listen to Alesy Gutin and Howard Finkelstein’s full interview on the Growth Switch Podcast, visit the YouTube channel here.