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Decision Vision Episode 153: Should I Provide My Services Pro Bono? – An Interview with Roy Hadley, Adams and Reese LLP

January 27, 2022 by John Ray

Roy Hadley
Decision Vision
Decision Vision Episode 153: Should I Provide My Services Pro Bono? - An Interview with Roy Hadley, Adams and Reese LLP
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Roy Hadley

Decision Vision Episode 153:  Should I Provide My Services Pro Bono? – An Interview with Roy Hadley, Adams and Reese LLP

Arguably no other industry institutionalizes pro bono work like the legal profession does. With that in mind, host Mike Blake welcomed Roy Hadley with Adams and Reese, LLP, winner of the firm’s Pro Bono Lawyer of the Year for 2021, for an in-depth conversation on pro bono work. Roy explained why pro bono work is so important in the legal profession and to him personally, how such work presents an opportunity to grow, the risks of pro bono work, and much more. Decision Vision is presented by Brady Ware & Company.

Adams and Reese LLP

Study their experience and credentials to understand why they belong on your shortlist. Get to know them as people, and you’ll recognize their dedication to client service. At Adams and Reese, they take things personally. Their people are connected – to each other, to clients, their families, and their communities.

The firm’s industry-focused practice groups of attorneys and advisors are strategically organized throughout the southern U.S. and Washington, DC. Adams and Reese professionals are known as practical and personal advisors and advocates who tailor their approach and counsel to the specific needs of each situation and client. Many on their team have years of on-the-job experience within the industries that they serve as executives, professionals, and in-house counsel.

Taking a hands-on, personal approach to every issue, challenge, and opportunity our clients face, Adams and Reese lawyers and advisors are skilled and ready to help clients achieve their goals and make their lives easier.

Company website | LinkedIn

Roy Hadley, Attorney, Adams and Reese LLP

Roy Hadley, Attorney, Adams and Reese LLP

For more than 30 years, Roy has been a trusted advisor to high-growth businesses, governments, and family/closely held businesses. Roy’s practice, which is international in scope, includes advising clients worldwide on complex corporate transactions, particularly those involving technology, cybersecurity, life sciences, economic development, telecommunications, outsourcing, and intellectual property.

With a nod to our increasingly digital world, Roy provides guidance to a wide array of governments, governmental entities, and companies (and their boards) on issues related to data security and privacy.

Roy’s work as independent counsel on cybersecurity matters helps governmental officials and corporate boards understand and mitigate legal and operational risks and exposures to protect themselves and the companies/governments they serve. He also helps clients to respond to and recover from attacks should an event happen.

Roy’s business experience includes serving as vice president, general counsel, and corporate secretary of a wireless communications company, as vice president, general counsel and chief privacy officer for an international travel services and technology company and as in-house counsel for a pair of telecommunications corporations. Roy also served as special counsel to the president of the American Bar Association and as special assistant attorney general for the State of Georgia.

Roy also counsels clients on business matters affected by personal and family dynamics, including business succession planning, legacy planning, family governance and intergenerational issues. He focuses on helping closely held businesses and families protect their interests and achieve their goals in times of transition or crisis.

A frequent speaker, lecturer and author, Roy has writings that have appeared on USAToday.com, FOXNews.com, Compliance Week, Healthcare Risk Management, Inside Counsel, Homeland Security Today, National Law Review, Sports Page Weekly, Law 360 and many other publications. He has also appeared on Georgia Public Broadcasting, TAG Radio, WXIA-TV (Tech Edge) and WUPA-TV (Focus Atlanta).

Roy was the 2021 recipient of the Pro Bono Lawyer of the Year for Adams and Reese, LLP.

LinkedIn

Mike Blake, Brady Ware & Company

Mike Blake, Host of the “Decision Vision” podcast series

Michael Blake is the host of the Decision Vision podcast series and a Director of Brady Ware & Company. Mike specializes in the valuation of intellectual property-driven firms, such as software firms, aerospace firms, and professional services firms, most frequently in the capacity as a transaction advisor, helping clients obtain great outcomes from complex transaction opportunities. He is also a specialist in the appraisal of intellectual properties as stand-alone assets, such as software, trade secrets, and patents.

Mike has been a full-time business appraiser for 13 years with public accounting firms, boutique business appraisal firms, and an owner of his own firm. Prior to that, he spent 8 years in venture capital and investment banking, including transactions in the U.S., Israel, Russia, Ukraine, and Belarus.

LinkedIn | Facebook | Twitter | Instagram

Brady Ware & Company

Brady Ware & Company is a regional full-service accounting and advisory firm which helps businesses and entrepreneurs make visions a reality. Brady Ware services clients nationally from its offices in Alpharetta, GA; Columbus and Dayton, OH; and Richmond, IN. The firm is growth-minded, committed to the regions in which they operate, and most importantly, they make significant investments in their people and service offerings to meet the changing financial needs of those they are privileged to serve. The firm is dedicated to providing results that make a difference for its clients.

Decision Vision Podcast Series

Decision Vision is a podcast covering topics and issues facing small business owners and connecting them with solutions from leading experts. This series is presented by Brady Ware & Company. If you are a decision-maker for a small business, we’d love to hear from you. Contact us at decisionvision@bradyware.com and make sure to listen to every Thursday to the Decision Vision podcast.

Past episodes of Decision Vision can be found at decisionvisionpodcast.com. Decision Vision is produced and broadcast by the North Fulton studio of Business RadioX®.

Connect with Brady Ware & Company:

Website | LinkedIn | Facebook | Twitter | Instagram

TRANSCRIPT

Intro: [00:00:02] Welcome to Decision Vision, a podcast series focusing on critical business decisions. Brought to you by Brady Ware & Company. Brady Ware is a regional, full-service, accounting and advisory firm that helps businesses and entrepreneurs make visions a reality.

Mike Blake: [00:00:22] Welcome to Decision Vision, a podcast giving you, the listener, clear vision to make great decisions. In each episode, we discuss the process of decision-making on a different topic from the business owners’ or executives’ perspective. We aren’t necessarily telling you what to do, but we can put you in a position to make an informed decision on your own and understand when you might need help along the way.

Mike Blake: [00:00:43] My name is Mike Blake, and I’m your host for today’s program. I’m a director at Brady Ware & Company, a full-service accounting firm based in Dayton, Ohio, with offices in Dayton; Columbus, Ohio; Richmond, Indiana; and Alpharetta, Georgia. My practice specializes in providing fact-based strategic and risk management advice to clients that are buying, selling, or growing the value of companies and their intellectual property. Brady Ware is sponsoring this podcast, which is being recorded in Atlanta for social distancing protocols.

Mike Blake: [00:01:14] If you would like to engage with me on social media with my Chart of the Day and other content, I’m on LinkedIn as myself and @unblakeable on Facebook, Twitter, Clubhouse, and Instagram. I also recently launched a new LinkedIn group called Unblakeable’s Group That Doesn’t Suck. We just topped 100 members, by the way, so people are getting into this thing. So, please join in with that as well if you would like to engage. If you like this podcast, please subscribe on your favorite podcast aggregator, and please consider leaving a review of the podcast as well.

Mike Blake: [00:01:45] So, today’s topic is Should I Provide My Services Pro Bono? And, according to Esquire Deposition Solutions, and I don’t think it has anything to do with the magazine, nine out of 10 lawyers provide some sort of pro bono service every year. And, according to data on Statista, many firms’ attorneys average over 100 hours per year, which when you consider that the hourly billing rates might be easily $500 at the partner level and for the bulge bracket firms can be over a thousand, that’s a significant investment that firms are making in pro bono work.

Mike Blake: [00:02:26] And I want to talk about this topic because, you know, as we move through this, again I keep calling it the trans-pandemic period, I don’t know when we’re going to get to the post-pandemic period, but we’re certainly trans, and we have this great realignment and great resignation, great this and great that. You know, one of the things that we’re seeing in our society, of course, is the fact that people’s priorities are simply changing. And I’ll share with you sort of a little anecdote from this morning.

Mike Blake: [00:02:57] A guy that I used to work for many years ago texted me because he saw on my Facebook page that I posted something about the Celtics taking the Sacramento Kings behind the woodshed and beating him by 56 yesterday. And if you don’t follow basketball, that’s a big number. And, I posted something on the website and said – and it actually turned out they won by 52, and my friend was giving me the business said, “Hey, you’re a valuation guy. You’re not allowed to get math wrong.” I said, “Dude, if I’m off duty, I’m not responsible for your math, my math, or anybody else’s.” So, you know, I just can’t be on all the time. You know, I just can’t do that. So, he kindly corrected me and gave me the business by text today.

Mike Blake: [00:03:43] But it’s sort of emblematic of the fact that everybody, I think, is searching for something different in what they’re doing. And, one of the things they search for is, we all search for, I think, or most of us search for, is some kind of meaning in what we do. And, the thing that’s fascinating and why I have this particular guest and one of the reasons I have this particular guest on, is, first of all, he’s great. We could talk about anything for an hour and you would enjoy it. But this is a business podcast, so we’ll try to stick to business as much as we can.

Mike Blake: [00:04:15] But what makes this interesting is that the legal profession, despite having, you know, sort of the meme style reputation of being greedy and self-serving and running the meter on the billable hour, when you really sort of take a step back and take a deep breath and look at it in the cold, hard light of day, I don’t know that there’s another profession out there that institutionalizes volunteer work and giving away their expertise and services like the legal profession does. I know the accounting profession doesn’t do that. The business appraisal profession, sure as hell, doesn’t do that. You know, we have to sort of make that up on our own.

Mike Blake: [00:04:55] So, you know, I think it’s important to recognize the contribution of the legal profession makes to this, and I think provides an example for, you know, I think what many other companies and industries can and should consider following, again, as we as re-evaluate the intersection of commerce and society.

Mike Blake: [00:05:21] And, joining us today is a long-time friend of mine, Roy Hadley. We’re just talking before the program – oops. Sorry, my watch wasn’t turned off. I thought I had the device turned on.

Roy Hadley: [00:05:35] Technology, technology.

Mike Blake: [00:05:35] Yeah. Exactly. I’m sure Apple is not listening. So, anyway, joining us today is not Siri, but indeed it’s Roy Hadley, who is a business lawyer and technology cybersecurity and privacy evangelist with Adams and Reese, which is headquartered in New Orleans but has a fairly substantial office here in Atlanta.

Mike Blake: [00:05:58] Roy is a lawyer and trusted adviser to businesses, governments, and families worldwide. He’s an attorney out of the Atlanta office and is a member of the corporate and security team with a nod to the interconnected world where he consults clients globally on complex business issues, particularly those involving technology, communications, cybersecurity, life sciences, economic development, and trade, and he regularly assists with matters involving data security and risk mitigation. He was named a cybersecurity visionary by USBE Magazine, was named one of Georgia’s most powerful and influential lawyers, and recognized by The Legal 500 for his work in middle markets M&A. He represented the City of Atlanta as it confronted a massive ransomware attack in 2018. I couldn’t believe it’s only been four years ago since that happened. It seems like it was 10 years ago, but, boy, time flies.

Mike Blake: [00:06:54] Roy was named a Georgia trailblazer by the Daily Report and a game-changer by Information Security by Hub Magazine. He recently received Adams and Reese’s Pro Bono Lawyer of the Year Award for 2021, which is what prompted my inviting Roy to this conversation. But I think, perhaps most importantly, as we record this podcast here on January 26, 2022, Roy holds both his bachelor’s degrees and law degree from the National College Football Champion, University of Georgia. Boy, you guys [inaudible]

Roy Hadley: [00:07:29] Bulldogs. Bulldogs.

Mike Blake: [00:07:31] I’m just going to let you have – I’m going let you have it. If you want to start –

Roy Hadley: [00:07:35] Let me have that moment. Yeah. You do have to let me have that moment. You know, it’s been, what, 41 years coming? I deserve that moment.

Mike Blake: [00:07:43] You know, 41 years and I’m not – look, I’m not a college football fan. I’ve said, look, we already have pro football up in the North. We just paid our players over the table. That’s [inaudible]. But, you know, having moved down here almost 20 years ago, about 19 years ago, you know, I don’t have, no pun intended, I have a dog in the fight. But it was remarkable just how many years Georgia would come within a game of winning that national championship and just something – it would, you know, in the 20 – in the early 2000s, it would be a bonehead loss to a bad team six games in, right, that would derail their season. Right?

Roy Hadley: [00:08:25] Right.

Mike Blake: [00:08:26] And then, they keep running into the buzz saw known as Nick Saban, obviously, and the University of Alabama Juggernaut.

Roy Hadley: [00:08:33] Right.

Mike Blake: [00:08:34] And, I didn’t think there was a chance in hell Georgia was going to win that game after the way they lost to Alabama. So, don’t take my betting advice, but –

Roy Hadley: [00:08:42] Right.

Mike Blake: [00:08:42] But I’m just so happy for University of Georgia fans who have just been suffering and have just been tortured for so long –

Roy Hadley: [00:08:53] It’s our moment. Right?

Mike Blake: [00:08:53] And they haven’t come up on top. It’s just brought this really nice vibe, really, to the entire state. Even Georgia Tech fans, I think, are giving you the nod, which is a real sign of social unity, I think.

Roy Hadley: [00:09:05] It’s out of 41 years in the making.

Mike Blake: [00:09:10] Yes. So, Roy, thanks for coming onto the program. It’s awesome to see you again, and congratulations on your Pro Bono Lawyer of the Year Award, among the other things. And, you know, by the way, in full disclosure, I could have read off all of Roy’s accomplishments and achievements and expertise, but we’d use the entire hour doing that. So, I would just invite you to look at his LinkedIn page and look at the other credentials.

Mike Blake: [00:09:36] But let’s dig in, let’s dig in here. As I said in the introduction, the legal my impression is, and correct me if I’m wrong, please. But my impression is the legal profession, interestingly, has a special relationship with pro bono work, right? And so, I want to talk about that in a minute. But before we do that, since pro bono is a Latin term and not all of us have watched The Exorcist. What does pro bono work mean? And is there a distinction between that and a more genericized term of, say, volunteering?

Roy Hadley: [00:10:13] Right. So, you know, great questions, and I’ll start it off by saying, you know, pro bono has been kind of, you know, whether you call it pro bono or you call it something else, it has always been kind of ingrained in the legal profession. You know, the lawyers have always said it is a profession despite what a lot of people think. Lawyers think of the legal profession as a profession. And, as such, you know, part of that profession is giving back to society. And, for us, what that means a lot of times is doing what we call pro bono work, and that work is really doing it for free, pro bono. And, that’s really what, you know, kind of underpins it.

Roy Hadley: [00:11:02] You know, you see it all the time. Firms have pro bono requirements. We’ll get into that a little bit later. But, also, you know, courts. A lot of times when defendants don’t have, you know, money to pay for their defense, courts will appoint lawyers, and sometimes they’re paid, sometimes they’re not. A lot of times you will see lawyers that will take up the case of indigent defendants, lawyers that will take up death penalty cases.

Roy Hadley: [00:11:30] You see the Innocence Projects that go on throughout the country. A lot of times those lawyers aren’t paid, you know, and that even goes back to when kids are in law school, because a lot of the projects they are doing pro bono, they’re doing it for free, with the thought that that same mentality kind of permeates throughout their careers.

Roy Hadley: [00:11:54] And so, it’s almost ingrained in us that part of the profession is giving back. And in some bar, state bar associations, actually require pro bono work. So, you know, it’s just one of those things that I hold near and dear to my heart because, at the end of the day, people always ask me, “Well, what do you do?” You know, you read my resume and I do a lot of technology-focused stuff. But what I tell people at my core is I help people solve problems. And, you know, you can help clients solve problems and you get paid for it and you’re happy. They’re happy. Good stuff comes out of that. But a lot of times when you do pro bono work, you’re helping people that can’t afford your services.

Roy Hadley: [00:12:40] And so, you know, it’s things that are near and dear to them that really make a difference at the end of the day. Things like keeping them from getting evicted. Things like helping them pay hospital bills. Things like, you know, custody matters. Things like – you know, in my case, what I did a lot this year was helping with COVID relief and things like that. And so, things that really impact the daily lives of people is really what a lot of the pro bono work that lawyers do accomplishes. And so, it really does make a difference, and you can see that difference at the end of the day and impacting people’s lives directly.

Mike Blake: [00:13:25] And, you know, it’s so important because at least, you know, I think so. I’m not a lawyer but I’m a citizen, and I take, I think, my civic duty, you know, very seriously. And as a citizen, you know, we’re very proud of a system that is designed to be transparent and it’s designed to give you some kind of equal representation in front of the law, right? And, look, the law is complex and it’s not – although you’re allowed to represent yourself, it’s certainly not designed to encourage that, right?

Mike Blake: [00:14:01] But, you know, the legal system is not perfect and you’re talking about whether the legal system is just or not as a separate podcast altogether and really something philosophers really need to tackle and other jurists that I’m just not qualified to. But I can say this, without the opportunity for representation, the legal system simply has no chance of being successful.

Roy Hadley: [00:14:32] Right.

Mike Blake: [00:14:33] And, you know, the people that often need representation most are the ones that can least afford to pay for it.

Roy Hadley: [00:14:41] Right. And, not getting – and that’s a great point, but not getting too philosophical here because you say it will leave some of these questions for the philosophers. But our whole system, the American system, you know the Constitution, the Bill of Rights, and all of that we all hold dearly whether you’re a Republican, Democrat, Libertarian, it really doesn’t matter. These ideals that we have, you said, hold dearly, and those ideals are predicated really on the Rule of Law.

Roy Hadley: [00:15:11] And so, it’s that Rule of Law that underpins really everything that we do in this country. You know, it’s one of those foundational elements that we have to really nurture and protect. And as lawyers, we feel a special sense of duty and a special sense of obligation because we are lawyers to help nurture and protect and uphold that Rule of Law. But, kind of inherent in all of that is, like you said, making sure that it is just that it is fair that everyone has access to proper representation whether they can afford, you know, a lawyer, you know charges, I don’t – but, you know, charges a thousand dollars an hour, or they can only afford one that costs $10 an hour, or in some cases, afford one that costs zero dollars an hour.

Roy Hadley: [00:16:08] And so, I think that’s why you see lawyers really, you know, kind of embrace this whole thing about service and pro bono and giving back legal services to the community and those most in need of them for free because it is a foundational element of our whole system, of our republic, of our, you know, democratic ideals, that Rule of Law. And so, you know, I hold it dear and we all hold it dear. And, I think it’s it’s one of those things that, regardless of profession, we all love to hold dear.

Mike Blake: [00:16:46] Yeah. And I think, you know, the best example of that was, you know, very early on in our history, John Adams was famous for representing the soldiers in the Boston Massacre, right? Not necessarily because he believed in their case, but because he believed that everybody, even if you think they’re dead, guilty bad guys, the legal system to have credibility. Everybody is entitled to representation and they’re entitled to, as I think as you guys like to say, vigorous advocacy in front of the court, right?

Mike Blake: [00:17:15] So. I’m curious about something in the mechanics. You know, you mentioned about a court appointing a lawyer. And I have this in my head and this may be totally wrong. Does the court have the power to, in effect, draft an attorney to work on a case?

Roy Hadley: [00:17:35] Yeah. In some cases, in some matters, I would say yes, they do. And so, you know, a court can appoint an attorney, whether that attorney wants to or not, in some matters, to actually represent somebody in that case. And you’ll see it a lot of times, especially in smaller communities where, you know, as part of being a member of the bar, you have to sign up and register, and the court will rotate it and appoint different members of the bar to represent certain, you know, clients, whether they’re indigent or just need special assistance.

Roy Hadley: [00:18:13] Now the thing I’ll tell you, though, is that, you know, we have 50 states and each state has its own rules regarding lawyers. Each state has its own rules regarding pro bono, regarding the ability to assign cases. And within those states, you have different bar, circuit and bars and jurisdictions, and so each one will have something totally kind of different. That said, though, again, kind of going back to one of those foundational elements of the bar being that you will give back.

Roy Hadley: [00:18:46] And so, you know, you see firms. I mean, my firm, Adams and Reese, we have a pro bono requirement for lawyers. You know, you have to work a certain number of hours a year. I think it’s 50 per lawyer that you have to work in pro bono service. And there are lots of different ways you can do it, you know. And when you look at it a lot of times early in my career, I know I did some work where people were having trouble getting their wages paid or, you know, improper withholdings from employers, and, you know, a lot of times we’ll sit back in what I call our ivory towers, our gilded towers, and say it really doesn’t make a big difference.

Roy Hadley: [00:19:30] But, you know, if you’re making the minimum wage or you’re making $8 an hour and somebody is erroneously withholding a dollar from you, or if somebody is not paying you for your 40 hours for you, they’re not paying you overtime, that has a tremendous impact on your daily life. It may be the difference, and I’m not overstating this. It may be the difference between you being evicted because you couldn’t pay your rent. It may be the difference between you not having transportation because you couldn’t pay your insurance. Or, it may be the difference between you not being able to eat or feed your child that day.

Roy Hadley: [00:20:12] You know, these sorts of things that we sometimes take can literally be that impactful in people’s lives, and I think that’s really what drives at home for me the importance of it, because when you see somebody that you have helped in a very, you know, impactful way, then, and that person is genuinely appreciative, that gets to you. You know, if you don’t feel some sense of humbleness around the ability to help and the opportunity to help, then you know, I’m not quite sure about you, because it is impactful in ways that, you know, you just don’t see every day in what we do working with clients.

Mike Blake: [00:21:00] Yeah. And, you know, in a lot of cases, you are somebody in your stead is what’s standing in the way of an injustice, right? It’s one thing. You know, if you’re going to be evicted because you’re unable to pay your rent, that’s one scenario, again, I don’t want to go deep into that, that’s philosophical, right? But it’s another if a landlord just decides to kick you out because they got an offer to buy the building, for example. They’re going to make some good money on that sale and they’re banking on the fact that you cannot defend yourself legally, right?

Mike Blake: [00:21:38] To me, that’s the thing that’s got to be that must be impeded, that, you know, I don’t think any of us want to live in a society or very few of us want to live in a society where that is simply allowed, right. And it’s people doing that pro bono work that makes sure that at least if something bad is going to befall somebody, it’s going to befall somebody within the concept of what we, as a society, have decided as a just outcome as opposed to simple, frankly, just outright bullying. I don’t like bullies.

Roy Hadley: [00:22:18] You’re right. I don’t think any of us do, you know. And, it’s interesting because a lot of times, you know, most times people aren’t asking for anything special. You know, they’re just asking to be treated within the rules that are there, the laws that are there.

Mike Blake: [00:22:36] Right.

Roy Hadley: [00:22:36] And so, a lot of times, what you’ll find is people either don’t know how to navigate the system, don’t know what the rules are, don’t know what the opportunities are. And so, a lot of times it’s not that, like you said, somebody can’t pay their rent or doesn’t want to pay their rent, it’s that the landlord is doing something. Or, it said, you know, somebody is trying to get Social Security benefits for a kid because the mother or the father passed but the parents weren’t married, and they don’t know how to navigate that Social Security System to help get those benefits for the child. And, it’s not that the child is trying to get something they’re not entitled to. It said they just don’t know how to navigate the system to get something that they are entitled to.

Roy Hadley: [00:23:24] And so, that’s where, you know, we help. That’s where lawyers can help. And quite honestly, you know, that’s where a lot of other professions can help, you know. Because you start talking. I’m going to pick on you, you and your accounting friends there might – you know, accountants aren’t dumb. And so, accountants can navigate.

Mike Blake: [00:23:48] We like to think so. But, yeah.

Roy Hadley: [00:23:50] Right. You know.

Mike Blake: [00:23:52] That’s what the website says.

Roy Hadley: [00:23:54] Right. And so, you know, there are a lot of things that accountants could do to help this, you know, help people on a pro bono basis. And, you know, I think it’s just not institutionalized again in the way that historically it has been for lawyers. And, in some ways, us lawyers think that we are the guardians of the republic, the guardians of democracy, the guardians of the Rule of Law. You know, we like to think that and in a lot of ways we are because, again, kind of going back to what we first said, our country is built upon the Rule of Law. And so, we have to respect that, nurture it, protect it, and make sure that it’s fairly applied to everybody.

Mike Blake: [00:24:41] So, you bring up a great point. And I’ll say the following, it’s going to sound defensive, but it’s really not intended to be and I’ll prove with what I’ll say next.

Roy Hadley: [00:24:52] There you go.

Mike Blake: [00:24:52] I’ve offered a number of times to attorneys that, look, if you need somebody to ride shotgun with you on a pro bono matter, there’s a valuation issue, or it could be eminent domain. But, you know, it’s a tiny business. It could be a convenience store. It could be a pop-up store, whatever. They’re not going to pay somebody like me 10 or 12 grand to appraise the business. Right? But there are damages involved, right? I’ll be happy to ride shotgun with you, or I’ll have somebody on my staff ride shotgun and help you work through the numbers that matter. And in 18 years of doing this, I’ve never been taken up on it.

Roy Hadley: [00:25:26] Really?

Mike Blake: [00:25:27] Yeah. So, as I say this, and I’m going to put you on the spot a little bit, but I think you’re going to appreciate it. Let’s you and I have an offline conversation, figure out how we can partner our two firms to help you, if there are financial issues that are involved in any of the matters that you guys are working on, if you need a partner to ride shotgun, let’s do that.

Roy Hadley: [00:25:51] Okay. Absolutely. Take done. Done. We will absolutely have that.

Mike Blake: [00:25:55] We would like to do that because you did mention it. You know, you guys have the institutionalized knowledge, right? And the reality is that these matters come to lawyers first. It’s why guys like me suck up to guys like you because guys like you have the – really are the gateway to the engagements because lawyers are the planners and accountants are the historians, which means we can base it, “Oh, man. Well, you should have done this.”

Roy Hadley: [00:26:27] Right.

Mike Blake: [00:26:27] You know, that doesn’t – great. Right? So. you know, nobody comes to us sort of initially with the legal matter, but many of these legal – you know, many of these legal matters involve, you know, finances and that’s something that we can do. And there are opportunities for partnerships where we can kind of piggyback on what you guys are seeing. And I think other firms and other practitioners would love to lend a helping hand. We really would.

Roy Hadley: [00:26:56] Absolutely. And, a lot of times they’re not complex issues. You know, they’re not complex valuation issues. They may be calculating wage an hour, you know, issues. There may be calculating rent and back rent, you know penalties, or with back taxes, trying to help calculate and negotiate with the IRS, you know. There are lots of things. And so, people always say, “Oh, I don’t have time,” because people envision this really complex thing. And sometimes they are complex. But most times they go to the other end of the spectrum and are simple matters, especially simple to somebody who does numbers, you know works with numbers all day long. So, I will absolutely take you up on it.

Roy Hadley: [00:27:44] And, it kind of pivots me to one of the things that, you know, when we talk about pro bono with lawyers is people also tend to think if you’re a lawyer, you can do anything regarding the law. And, you know, kind of like in our normal practice, you kind of stay in your lane and you have to stay in your lane. And so, even with pro bono, we kind of stay in our lane, and part of staying in our lane means that a lot of times we’ll need help from somebody like you on those little things, those number-crunching things that are outside of our lane. And so, it’s – you know, I take that offer very seriously and I will absolutely take it up, take you up on it.

Mike Blake: [00:28:26] At a minimum, take it up with me. Like I said, 18 years, nobody’s ever pulled the trigger.

Roy Hadley: [00:28:30] All right.

Mike Blake: [00:28:31] I can’t commit my entire firm, but I can commit my practice for sure, and I think I can convince my firm to do something with it. So –

Roy Hadley: [00:28:39] Wait. I heard you earlier say the firm, you know, as lawyers hear these things.

Mike Blake: [00:28:45] Well, yeah. Well, that’s why I need to walk that back. So, I don’t have the authority. As far as to go, they’re not the managing partner of the firm.

Roy Hadley: [00:28:54] Right, right, right.

Roy Hadley: [00:28:55] [Inaudible] within my group that we can do it. And I think that I can get people in my firm to do it, whether formally or informally, but –

Roy Hadley: [00:29:01] I’m messing with you.

Mike Blake: [00:29:03] But I do want to have that conversation sort of institution to institution.

Roy Hadley: [00:29:08] Absolutely.

Roy Hadley: [00:29:09] And I think we’ll be receptive to it, just knowing the people involved. So –

Roy Hadley: [00:29:12] Right.

Mike Blake: [00:29:16] Now, you have a 50-hour minimum. I don’t think they gave you the award for doing 50 hours.

Roy Hadley: [00:29:22] [Inaudible] No.

Mike Blake: [00:29:24] That would be, that would be awkward.

Roy Hadley: [00:29:26] Right.

Mike Blake: [00:29:26] So, obviously, this is something you’re doing more and more of because you truly believe in it.

Roy Hadley: [00:29:32] Right.

Mike Blake: [00:29:32] Why? What is it that drives you maybe, you know, more on sort of the edge of the bell curve to do a lot of this?

Roy Hadley: [00:29:39] Right. So, this year, you know, I was well over 200 hours in terms of pro bono work. And a lot and what – and I’ll describe a little bit of what I did. You know, we had a client that was giving out pandemic relief funds, loans, grants [inaudible]. And so, part of that was it took legal work to effectuate the loans and things like that. And so, let’s just say, for example, it’s a $10,000 loan, takes two or three hours of legal work to do. Then, you know, at my standard rate of $50 an hour, just kidding, but at most, you know, it could be a thousand to $1500 in legal fees. So, all of a sudden that $10,000 loan is 8000 or 8500, you know. But if you could get that whole 10,000 to them, then now that business can pay rent, now that business can pay employees, now that business can buy PPE, supplies, and things like that. Now, they can pay the light bill. Now, they can stay open and keep functioning, which is the whole purpose.

Roy Hadley: [00:30:52] And so, you know, I’m a business lawyer. I’m a corporate lawyer, you know, close loans, do deals all day, every day. And so, the ability to do that for these companies, and, again, these are small companies. These are a lot of times sole proprietorships. These are companies that maybe have two or three or four employees that really aren’t the big companies that have the ability to kind of withstand business dropping 50 or 70% because of COVID. These are small operators. And so, the ability to help them by getting all of the monies that we’re trying to get to them can be very impactful.

Roy Hadley: [00:31:35] I mean, you know, when you close some of these loans and you talk to the people, they are genuinely appreciative of those funds. And so, you know, and they will make a difference, and they did make a difference. They kept a lot of these businesses afloat. Again, it was the difference between their doors being open and their doors being closed. And so, you know, if you can, as a lawyer, help effectuate that, I mean, it really warms your heart.

Mike Blake: [00:32:04] And, you know, again, my firm has a minimum requirement, but they are very supportive and I was genuinely appreciative of that support that said, “Hey, go do this. This is a good thing. This is a great thing. Go do this.” Because despite the fact that we too were impacted by COVID and those sorts of things, we still will support these types of endeavors by our lawyers to make a difference in the communities we serve. And I’ve put some emphasis on that word because we really do look at communities where we are as not as the communities that we operate in but as the communities we serve.

Roy Hadley: [00:32:51] And so, you know, here in Atlanta, as you mentioned, the mothership, as I call it, is in New Orleans, but we’re all across the south in terms of our footprint. But in each of those communities, we really do make a special effort to serve the community. And, you know, when people think about, and I know I’m going on on a tangent here, but when people think about pro bono, you know, we tend to think of the legal work that we’re doing. But also inherent in our commitment to the community, legal profession’s commitment, is that you see service to the community in other ways. You see lawyers on the United Way board. You see lawyers on the Red Cross board. You see lawyers on the Community Thief board. You see lawyers, you know, on the food kitchen board, you know.

Roy Hadley: [00:33:46] And so, you see lawyers that not only are doing pro bono work in the truest sense, but you also see lawyers that are out in the community serving on these boards, bringing expertise to these boards of these organizations that also serve the community. And so, you know, all of those nonprofit boards are going to be unpaid, but that’s okay because, again, that’s giving back to the community.

Roy Hadley: [00:34:16] And so, I would challenge all businesses, all business leaders to make a special effort to, you know, push your people because these are going to be people that have special expertise. These are going to be young people. Sometimes they have a lot of time, more time, you know, that can really get in there and serve the community, not necessarily in pro bono like, you know, we have originally defined it, but in terms of giving back to the community, by giving back to other organizations that serve the community. And I think that’s something that also we should really highlight and talk about for the listeners to make sure they understand there are many, many ways that even if you’re not a lawyer, you can serve in the spirit of pro bono service.

Mike Blake: [00:35:08] So, I want to posit something to you, and I’d appreciate your reaction to it. Can’t you also make the case that there is in your profession, and I think I think mine, and as I sort of think through this conversation, I want to interject because I need to be fair. For all I know, there’s a ton of pro bono work that’s going on in my profession, in my company, I just don’t know about it, right? But I do know it’s not institutionalized. We don’t have an award for pro bono, right?

Roy Hadley: [00:35:41] Right.

Mike Blake: [00:35:42] And there are probably opportunities to make it more efficient by aggregating it. So, I do want to get that out there. But that having been said, can you also make a case that the pro bono work could be a great opportunity for somebody that doesn’t have a lot of experience yet to kind of cut their teeth on certain kinds of matters? You know, it could be a first chance to cut your teeth in litigation or, in my world, serving as a consulting or even potentially a testifying expert. Or, you know, in some cases, just sort of getting out of the office and rolling up your sleeves and getting into real world, real life, real business issues where you have to provide, you have to get into really, the very real scenario of providing a client with advice under extreme duress. And, you know, there’s no – I don’t think there’s any class in the world you can take that, would ever prepare you for that. You just have to get in. You just have to get in there, right? So, can we argue that there is a professional development aspect to pro bono work in the way that we’re describing that is also very helpful?

Roy Hadley: [00:36:58] Absolutely. You know, again, you know, the requirement here at this firm and most firms is not, you know, no requirement for young lawyers, 50 hours for senior lawyers. It’s for every lawyer, which means that young lawyers have to get out and do something. Now, what we do here in the legal profession is, again, we try to kind of stay in your lane. But if you are volunteering, say you’re a young lawyer and you are going into something you don’t have the expertise on, you know, you get a senior lawyer that does will help you navigate whatever that is. But it is an excellent opportunity, as you said, to learn new areas.

Roy Hadley: [00:37:42] You know, back – I’ve always been a corporate lawyer, but a lot of my pro bono cases when I was very young dealt with wage and hour issues, dealt with Social Security issues, dealt with evictions, you know, nothing within the lane that I was in. But because I did those things, I did learn about those types of areas of the law. But more importantly, and I think this is one of the things that is kind of underpinning your statement, is I learn how to work with clients. I learn how to interact with people. I learn how to listen and understand the issues and the problems, and then come up with real-world solutions and not just theoretical kind of book solutions.

Roy Hadley: [00:38:30] You know, it’s one thing kind of to do a law exam and come up with a solution to a question, but it’s a whole another thing when you’re out in the real world. And, like most issues, things aren’t cut and dry. They’re not black. They’re not white. They’re shades of gray and those shades of gray shift, you know, depending upon who you’re talking to and what they’re saying. And so, in any profession, you’re going to be a better fill-in-the-blank if you have experience, you know, working with those nuances and those shades of gray that are constantly shifting on you.

Roy Hadley: [00:39:08] And so, pro bono work is a fantastic opportunity to get out there and learn a new area of the law, you know, to roll your sleeves up, to get some, as you said, that real-world experience, and quite frankly, for the legal profession, we encourage that. We encourage you to say, “Okay. I’m going to go volunteer for the Atlanta Volunteer Lawyers for the Arts and learn about contracts and that sort of thing.” Or, “I’m going to volunteer for Legal Aid and learn about helping to defend somebody in, you know, or help them navigate through certain parts of the system, whether it’s child support or those sorts of things.” You know, it may be a corporate lawyer going to Legal Aid. We don’t have those kinds of prohibitions.

Roy Hadley: [00:39:58] So, it’s a great, great opportunity and it’s a great opportunity for old lawyers, you know, like myself that have been practicing for a long time to get out there and do something different, learn a new area of the law, and quite honestly, like you said, get out of the office and, you know, actually look somebody in the eye, sit across the table from them, sometimes go and take them to lunch and break bread with them, and really understand the issues. Because most times kind of like any corporate matter, again it’s not just black and white. You’re going to need to be able to navigate those nuances and nothing like real-world experience to help you navigate those nuances.

Mike Blake: [00:40:45] And, another word that comes to mind that I think is so important, and I almost hate to bring it up because one of my fears, I’m afraid this word is going to become viewed as a buzzword and it really shouldn’t, it really needs to stick, and that is that I think the pro bono work you’re describing helps you develop and strengthen your empathy muscle.

Roy Hadley: [00:41:06] Absolutely.

Mike Blake: [00:41:09] The kinds of cases you’re in, and I’ve only done a fraction of what you’ve done mainly through my old office hours, people sort of wander in, right. But, you know, they come in and the circumstances that sort of that got them there, right, in a paid scenario. You guys are in – I forget if you’re in Class A or Class B office space, but the fact of the matter is, I don’t want to get into – there’s a segue here. People are not wandering into your office most likely who are minimum wage people about to be evicted coming into the marble office, right, and reception room, saying, I need a lawyer. Right?

Roy Hadley: [00:41:46] Right.

Mike Blake: [00:41:47] And it sort of goes the reverse, right? So, unless you really make a concerted effort, you never encounter that. It’s very easy for people in our position that in fact we want to really isolate ourselves and never connect with that.

Mike Blake: [00:42:02] So, that’s a long preamble to the segue, which is if somebody – how do you – how do those opportunities to serve come your way? Right? Because they’re not calling. I don’t think – they’re not coming into your office. How do they find Adams and Reese? How do they find Roy Hadley to get the help they need?

Roy Hadley: [00:42:22] Right. So, you know, I’ll preface my whole statement here in response by your original premise of the empathy. And I think that’s important to kind of underscore here because one of my favorite sayings is, I complained that I had no shoes until I saw the man with no feet. Right? And so, you really have to always put things in perspective. And, you know, before you got on this kind of video here we’re talking and, you know, I’m always happy because I always try to keep things in perspective. And that perspective is that I’m fortunate. I’m blessed. You know, I am in a good place. Not everybody is as fortunate, right?

Roy Hadley: [00:43:13] And so, you have to remember that that a lot of times people’s circumstance is not of their choosing, you know, kind of dictates where they’re going in life and how they’re getting there. And you always have to be cognizant of that, that not everybody graduated from high school. Not everybody had the opportunity to go to college. Not everybody had the opportunity to go to grad school or to law school. And those are opportunities that are generally afforded to you, not by your own choosing, but by your circumstance. And so, I keep that filter in mind when trying to talk to people and help people. Everybody is not as blessed or as fortunate as we are, and so we just have to be cognizant, cognizant of that.

Roy Hadley: [00:44:06] Now, to get it back to the second part of your question, most times, yes, you’re right. To be quite honest, most people couldn’t get past security to come up to our office, right?

Mike Blake: [00:44:17] There. Fair.

Roy Hadley: [00:44:19] Speaking plainly. Right? What we do is we partner with, you know, institutions that are on the ground out in the community. So, you know, you’re talking about institutions like the United Way. You’re talking about institutions like, you know, Homeless Task Forces. You’re talking about the food banks. You’re talking about shelters. You’re talking about, you know, places like that, the Volunteer Lawyers for the Arts, you know, and those types of institutions that have their feet out and hands out in the community are going to be the frontline and then we partner with them. Legal Aid is another great example of an organization that has offices and people that are out in the community, you know talking to people that are accessible to people. They come in, they identify the need, and then we partner with them to address those needs.

Roy Hadley: [00:45:19] I was talking to – I had a good friend who was in the legal business, but he also had gotten into the restaurant business, and he and some other restaurant owners found it kind of a fund for their employees that, you know, if – the restaurant owner has put into the fund every month and employees could contribute whatever they want it too [inaudible]. And then, let’s say you then have rent money for a month or you were short on your rent or you’re short on your insurance payment, the fund would loan you the money or give you the money. But, you know, that fund also would help people who needed legal assistance.

Roy Hadley: [00:45:59] And so, you partner with those types of organizations, and that’s really how we do it. And that’s going to be the most efficient way because a lot of times, you know, issues can be resolved without even involving a lawyer, you know by somebody that has much more specialized practical expertise on it to say, “Hey, you need to take this form, fill it out and take it to this office there, you know, at this address, or we can take it for you.”

Roy Hadley: [00:46:27] And so, you know, those types of organizations will filter out, address a lot of things, you know, quickly and more practically, and then give the others to us, funnel them to us, and then we handle those through those organizations. And, we found that’s the most efficient and practical way to do it. And so, you know, if somebody needs help, go to those frontline organizations. And then, if they need more specific help, those organizations can get them to us to address the needs.

Mike Blake: [00:47:02] I’m talking with Roy Hadley and the topic is, Should I Provide My Services Pro Bono? So, I want to address a question that I think is important any time – because any time we talk professional services, the elephant in the room is always, what’s the liability? And, it’s unfortunate, but that’s just a fact of professional life. We have to protect ourselves or we can’t be in business very long.

Roy Hadley: [00:47:27] Right.

Mike Blake: [00:47:29] How, if at all, are there any kind of protections in place to ensure that you’re not taking disproportionate risk by taking on a pro bono case? Do you effectively have – and for example, you said, you know, pro bono is a great way to learn about a part of the law where you don’t have necessarily that much exposure, which to me means that – that means it’s going to be higher risk that something could go sideways. Are there structures in place to kind of help you manage the risk to make sure that when you’re trying to do a good thing, you’re not the good Samaritan that gets sued because you didn’t change the guy’s tire right on the side of the road? You know what I’m trying to get to?

Roy Hadley: [00:48:17] Right. Right. Absolutely. So, that’s a great question, and I can only address it from the legal standpoint, the legal law firm, you know, lawyer standpoint. I can’t really speak to other professions that might do volunteer work of this ilk. In the legal sense, you know, I talked about staying in your lane earlier, and what that means is that even if you are taking on a matter that you may not have expertise in, you get somebody at your firm who can help guide you, you know, just like they would in any other matter. You know, you use that matter as a teaching opportunity, as an opportunity to grow. So, from a staffing standpoint, we’ll always make sure that there is somebody on that matter that can provide general overall guidance.

Roy Hadley: [00:49:10] So, you may be a young corporate lawyer, you know, cutting your teeth in a pro bono litigation matter, but we’ll make sure we have a litigation senior lawyer, partner or senior associate that knows that area that can help guide you so that you don’t make those missteps. Because, you know, not only is it a legal exposure, but, again, you have to remember there’s a live person on the other end of the matter that it really impacts their lives. And so, you know, we will staff it the same way we staff a paid matter in terms of, you know, we may have a young lawyer working on it, but there’s going to be a more senior lawyer that actually knows how to do it and knows, you know, what needs to be done to oversee that young lawyer. So, we’ll always staff pro bono matters that way.

Roy Hadley: [00:50:01] We actually have a pro bono partner. And so, all pro bono matters at the firm have to be approved by this part. Part of that process is making sure that we’re putting the right staffing on the matter so that we have the right expertise on the matter.

Roy Hadley: [00:50:19] Now, the second part of it is pro bono is so ingrained in the legal culture of law firms that our professional liability insurance also covers pro bono matters. So, if a firm just happens to screw up something, you know, inadvertently, their professional liability coverage, generally speaking, will cover those types of matters also. But again, that’s just because pro bono is so ingrained in what we do as a profession that it is generally speaking covered under most firms’ and lawyers’ liability policies. But again, you go back to that first part of it and that is, you staff it no differently than you would staff a regular paid matter. You know, if a regular paid matter came in and that young – you wanted to put a young lawyer on it or that young lawyer wanted to be on it, you would have a senior lawyer supervising them, be no different than that for a pro bono matter.

Roy Hadley: [00:51:24] So, you know, again, it’s just one of those things that it’s just inherent in us. But pro bono doesn’t mean no expertise. You know, pro bono doesn’t mean shoddy work. You know, we’re going to perform the work at the same level and the same standard that we would paid work. We’re just not getting paid for it.

Mike Blake: [00:51:48] Yeah. And do you have a couple more minutes or do you have a hard stop?

Roy Hadley: [00:51:52] Absolutely. Absolutely.

Mike Blake: [00:51:52] Okay.

Mike Blake: [00:51:53] There’s one –

Roy Hadley: [00:51:54] I’m billing you for this, by the way, but –

Mike Blake: [00:51:59] Okay. That rolling sound you heard, that’s the meter, right?

Roy Hadley: [00:52:03] That’s right. That’s right.

Mike Blake: [00:52:06] Yeah. But the two questions I want to make sure that we got through, and then I’ll let you go. But one, you segued so nicely and I have to ask you, which is, how do you gear yourself up to give a pro bono client the same level of care and attention that are paying client is giving you? Because, you know – and we’ve both done pro bono work. You’ve done more than I have. But one of the things you learn pretty quickly in professional services is that a, quote-unquote, free or very low fee case can easily become as complicated and as frustrating and as emotionally challenging as the big bulge bracket case. In fact, in many ways, those are going to be hard cases for a lot of reasons we are not going to go into it but we both know.

Mike Blake: [00:52:59] When you recognize that, you know, there’s never going to be a billable moment at the end of this thing or in the middle of this thing, how do you stay focused and make sure that you don’t fall into the mental trap? “Ah, well, you know, they’re not paying anything so they can always take a back seat.” Or, you know, “I don’t have to treat this as the same due care.” How do you maintain that mindset, that professional mindset that no matter who you are, how much you’re paying me, you’re getting the same, the very best fastball the Roy Hadley has to throw?

Roy Hadley: [00:53:32] Right. So, you know, and that’s a great question because human nature would probably be “You know, okay, I’ve got to do this or do that.” And what you do is, you know, it all comes down to prioritizing and time management. And I’ll start with the time management in the sense, as a – you know, it’s easier for me because I’m a senior lawyer, and when I look at something, I can pretty much tell what it’s going to be, right? I can say, “Ooh, this is going to be complex.” “So this is going to be a simple thing.” You know, they always shift on. You know, we’re talking about those shades of gray shifting on you earlier. They always shift on you.

Roy Hadley: [00:54:11] But you know, just like a regular matter, you look at it, you assess it, you figure out on the front end what it’s going to be. And then, you know, just like a regular matter, you try to avoid that thing kind of going down the yellow brick road on you. You try to avoid scope creep, you know.

Roy Hadley: [00:54:31] And so, if you are, let’s just say, working on a rent issue, right, and you’ve been tasked with working on a rent issue, then, you know, you don’t want to go down to the scope creep. “Yeah. But, you know, my child’s father hasn’t been paying his child support. You know, can you help me on that?” Well, I can steer you to somewhere that can, you know, and it may come back around to me, but that’s not within the scope of what we’re trying to do.

Roy Hadley: [00:55:05] And so, you know, the empathy part of you wants to help. But just like a regular matter, you have to kind of set those guardrails to make sure you don’t get that scope creep, you know. And then, you just set that into your daily schedule and you just say, “Okay. On Wednesday, I have to do X and I’m going to allot two hours for that.” And you get X done and that X may be a paying client. That X may be a pro bono matter.

Roy Hadley: [00:55:36] But then, you know, just like anything else, an emergency may come up and you may have to push things down on the priority scale. And so, that’s when the professionalism that you kind of mentioned comes into play of knowing how much something is going to take, how much time it’s going to take, where it’s going to fall in the priority scale for that day. If they’re about to be evicted tomorrow, you know, then that’s going to be a priority one. If they just got the eviction notice and the eviction hearing is in a month, okay, that may not be priority one for today. You know, that may be priority three or four.

Roy Hadley: [00:56:18] And so, you just kind of mold it into your daily schedule and what you have to do and what you’re doing to make sure [inaudible] that client proper representation within the realm of everything that you’re doing.

Mike Blake: [00:56:35] Roy, this has been a great conversation. I’ve only gone through, I think, about half the questions I prepared. But I need to let other people benefit from your expertise and your empathy, so we’ll leave it at this. There are probably questions that our listeners would have liked us to cover either at all or in greater depth. If somebody wants to follow up on this and ask about pro bono work and how to get involved in that and how to do it right, can they contact you, and if so, what’s the best way for them to do that?

Roy Hadley: [00:57:06] So, the easiest way to do it would just be absolutely you can contact me. Absolutely. The easiest way is just shoot me an email and that’s going to be roy, R-O-Y, dot hadley, H-A-D as in David, L-E-Y, @arlaw, A as in Robert – A is an apple, R as in Robert, law.com. So, it’s roy.hadley@arlaw.com.

Roy Hadley: [00:57:31] And, you know, always happy to help. Love talking about this thing and the original question, you know, should you be doing pro bono? Regardless of what field you’re in, the answer is absolutely yes, you know, in terms of whatever kind of that pro bono looks like, whether it is doing legal work, doing accounting work, or whether – you know, it doesn’t have to be that complicated. It can be going down and serving at the soup kitchen. It can be going down to the food bank and helping get food in and segregating it and passing it out.

Roy Hadley: [00:58:11] It can be, you know – I took my daughters down over Christmas. We went down to an organization down in downtown Atlanta, had kind of a thing for homeless people, so we served meals to them. We had care packages for them. We gave haircuts to people. We gave manicures. We had medical facilities. We had shower facilities. And so, we just served. And, you know, my daughters and my wife and I passed out food for five or six hours that day. And, you know, it’s that spirit of giving that whether you define it as pro bono or volunteering or just a day of service, whatever that spirit of giving is and how it manifests in you, it should be done in my opinion. Again, whether you call it pro bono or whether you call it something else.

Mike Blake: [00:59:08] Well, thank you for all that you and your family do and service to our community, and I think I’d be remiss – I’d love to give you an opportunity to share with your Twitter handle because I know you’re pretty active on the platform. So, if you’d like to give out your Twitter handle on the podcast, here’s your opportunity to do that as well.

Roy Hadley: [00:59:24] Okay. Yeah. You’re putting me on the spot because, you know, it’s kind of like your home, you know your phone numbers. You don’t say them that often. But it’s GovCyberPrep. So, G-O-V, cyber, C-Y-B-E-R, prep, dot – what is the end of Twitter? Dot? I think –

Mike Blake: [00:59:42] There’s nothing. It’s nothing. That’s just it.

Roy Hadley: [00:59:44] Right. It’s just @GovCyberPrep.

Mike Blake: [00:59:48] Yup.

Roy Hadley: [00:59:48] And also, I do a lot of LinkedIn. And so, you know, you just search for me, Roy Hadley, on LinkedIn. And a lot of times it’s related to cybersecurity, but a lot of times it’s just related to life and what we’re doing in life and how we should be approaching it. So, you know, I welcome you to follow me and what I do there also.

Mike Blake: [01:00:10] That’s going to wrap it up for today’s program. I’d like to thank Roy Hadley so much for sharing his expertise with us.

Roy Hadley: [01:00:17] Pleasure is mine.

Mike Blake: [01:00:17] We’ll be exploring a new topic each week, so please tune in so that when you’re faced with your next business decision, you have clear vision when making it. If you enjoy these podcasts, please consider leaving a review with your favorite podcast aggregator. It helps people find us that we can help them.

Mike Blake: [01:00:33] If you would like to engage with me on social media with my Chart of the Day and other content, I’m on LinkedIn as myself and @unblakeable on Facebook, Twitter, Clubhouse, and Instagram. Also, check out my new LinkedIn group called Unblakeable’s Group That Doesn’t Suck. Once again, this is Mike Blake. Our sponsor is Brady Ware & Company. And this has been the Decision Vision podcast.

 

 

Tagged With: Adams and Reese LLP, Brady Ware & Company, community service, Decision Vision, Decision Vision podcast, Mike Blake, Pro Bono Legal, pro bono work, Roy Hadley

The R3 Continuum Playbook: How to Talk to Your Employer About Personal Disruption

January 27, 2022 by John Ray

talk to your employer
Minneapolis St. Paul Studio
The R3 Continuum Playbook: How to Talk to Your Employer About Personal Disruption
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The R3 Continuum Playbook:  How to Talk to Your Employer About Personal Disruption

When confronted with some disruptive circumstance, whether it’s simply being late to work or a more serious situation involving their mental health, employees must answer a few critical questions, including what to tell an employer. In this excerpt from a R3 Continuum webinar, Sarah Hathaway offers some advice on how to talk to your employer about personal disruption.   The R3 Continuum Playbook is presented by R3 Continuum and is produced by the Minneapolis-St.Paul Studio of Business RadioX®. R3 Continuum is the underwriter of Workplace MVP, the show which celebrates heroes in the workplace.

Other R3 Continuum webinars can be found here.

TRANSCRIPT

Intro: [00:00:00] Broadcasting from the Business RadioX Studios, here is your R3 Continuum Playbook. Brought to you by Workplace MVP sponsor, R3 Continuum, a global leader in workplace behavioral health, crisis, and security solutions.

Shane McNally: [00:00:14] Hi, there. My name is Shane McNally, Marketing Specialist for R3 Continuum. We’ve all experienced daily struggles in the workplace. Maybe the printer is jammed, WiFi issues, maybe someone just finished off the last of the coffee, the little things. But what about the greater disruptions that happen outside of the workplace in your personal life? It can be tough to open up to your employer to discuss issues that are happening in your personal life, but it’s something that should not be left unaddressed.

Shane McNally: [00:00:38] Sarah Hathaway, Associate Director of Strategic Solutions at R3 Continuum, offers expert insight into different strategies to approach your employer for support when faced with personal disruption.

Sarah Hathaway: [00:00:49] There are a few things to really think about when you are seeking support from your employer. The first one is, “What do I share? What do I tell my employer?” And depending on your circumstances, the answer to that question may vary. If it’s, “You know what? I got a flat tire and my car is going to be in the shop. And I’m going to need some flexibility today and I’m going to miss a meeting,” or something of that nature, that might be a little bit easier to have that conversation of here’s what’s going on.

Sarah Hathaway: [00:01:24] But if it’s a mental health condition or it’s a compounding of stressors, those are sometimes a little bit more difficult to articulate and they might be harder to figure out, “Where’s the line? What do I tell my employer?”

Sarah Hathaway: [00:01:39] Some factors that you can consider here are, first of all, what do they need to know? What information is necessary for them to understand the gravity of the situation? If I just say, “I have a personal concern and I’m going to need to be out of work for the next two weeks,” that might be a little bit hard for your supervisor to understand. So, it might be necessary to give a little bit more context to what’s going on. Or if it’s, “I’m going to be needing just some understanding. I might be late on a project,” that might be a little bit easier to understand.

Sarah Hathaway: [00:02:19] One of the other things that you’ll want to consider here is what are the potential ramifications of what I may share? It’s not necessary for you to share any medical and mental health diagnoses. And, oftentimes, employees are concerned about potential discrimination or what other ways that can have negative consequences.

Sarah Hathaway: [00:02:39] So, think about that here in what you’re going to share, and we can talk some more when we get to the question and answer about specific ways to manage that. But think about what is necessary for them to understand. Again, that gravity of the situation, and then what are you comfortable sharing, and what are the potential consequences of sharing.

Sarah Hathaway: [00:03:04] The next one is, who do you tell? And, oftentimes, the simplest answer is your direct supervisor. If there’s an impact to your work, let your supervisor know what that will be and what adjustments may need to be made. You may also want to notify human resources if you have any concerns about how this information may be perceived. Or if you’re in need of particular resources or accommodations, human resources may be necessary to notify as well.

Sarah Hathaway: [00:03:37] And then, the third option is your colleagues. Is this something that you want your colleagues to know about? Is there a reason that they should know? Keep those things in mind when planning to have those conversations.

Sarah Hathaway: [00:03:51] And then, third thing is to define what you need. And you’ll look at that in four areas. The first is, do I need problem solving? Do I need to talk with my manager about what are my next steps? What can I do here? Do we need to work together and collaborate to figure out a reasonable solution?

Sarah Hathaway: [00:04:14] Or maybe you don’t need any solution at all. Maybe you’re just looking for understanding of I might be a little bit late here, or I might show up midway through this meeting, or I might need a little bit of adjustment on deadlines. “I just need some understanding here of this is what I’m going through, and I want you to know so that you’re not wondering why I seem a little bit less reliable than usual.”

Sarah Hathaway: [00:04:41] The third is resources. Do you need any resources that your employer offers? That may be an employee assistance program. It could be your health insurance information. It could be other options that your employer offers. So, think about what resources your employer may offer or do you just not know and your manager or HR can help you figure that out.

Sarah Hathaway: [00:05:07] And then, the fourth piece is flexibility. Do you need time off? Do you need adjusted responsibilities at work for a period of time? If you’re requiring some level of flexibility, it’s important to communicate that to your manager.

Sarah Hathaway: [00:05:20] So, think about these four areas when you’re planning on talking with your manager or HR, and what exactly are you looking for from them. Because, oftentimes, when your manager doesn’t necessarily know what you’re looking for and you’re just bringing here what’s going on, they may jump to problem solving when that’s not what you need. And all you need is some understanding of the situation. And so, if you can come with the ask up front, it can be really helpful in determining how to move forward.

Shane McNally: [00:05:48] All right. Hey, I have a question to kind of jump in, in here as well. And it actually came up from that very first slide of what is a sign that somebody might need to reach out for support? Like, when is kind of enough is enough type of thing? Is there something where I should look inside and be like, “You know what? I do need to reach out?” Do you kind of have any thoughts on that?

Sarah Hathaway: [00:06:13] You know, that’s a really great question. I think there are a couple of signals that you might need to reach out. And the first is, if you’re coping with something where you need help, you need support, or maybe you just need a listening ear, somebody to understand what you’re going through. If you’re feeling like you need help, oftentimes, your employer has some type of a resource for that. Again, it may be your manager, maybe HR, or maybe something like that employee assistance program.

Sarah Hathaway: [00:06:42] The other indicators that you may need help is if there’s an impact to your work, if there’s an impact to your performance, or impact to availability or your reliability. Those are indicators that your manager probably needs to know what’s going on so that it isn’t viewed as just strictly a performance issue. If you can communicate at least semi-openly, again, there may be some things that you keep personal, keep to yourself. But if you can communicate at least on some level of what’s going on, that can help them to identify that there’s something else other than just a performance concern.

Sarah Hathaway: [00:07:18] And then, the third thing is, if you’re noticing any specific changes in your emotions, your behaviors, if you think that there may be some potential impact to your mental health, again, this is another opportunity to communicate with your employer about how to get support and resources.

Shane McNally: [00:07:41] It’s extremely important to know how and when to approach an employer about a personal disruption. Well, it can be difficult to do. It’s not impossible. R3 Continuum can help organizations ensure they’re offering the best support and resources available for their employees through our Workplace Behavioral Health Support Services. R3 Continuum offers a proactive support approach and tailors the services to fit the unique challenges of each workplace. Learn more about R3 Continuum services and contact us at www.r3c.com or email us directly at info@r3c.com.

 

 

Show Underwriter

R3 Continuum (R3c) is a global leader in workplace behavioral health and security solutions. R3c helps ensure the psychological and physical safety of organizations and their people in today’s ever-changing and often unpredictable world. Through their continuum of tailored solutions, including evaluations, crisis response, executive optimization, protective services, and more, they help organizations maintain and cultivate a workplace of wellbeing so that their people can thrive. Learn more about R3c at www.r3c.com.

R3 Continuum is the underwriter of Workplace MVP, a show which celebrates the everyday heroes–Workplace Most Valuable Professionals–in human resources, risk management, security, business continuity, and the C-suite who resolutely labor for the well-being of employees in their care, readying the workplace for and planning responses to disruption.

Connect with R3 Continuum:  Website | LinkedIn | Facebook | Twitter

Tagged With: employee well-being, employee wellness, employers, mental health, Mental Health Support, personal disruption, R3 Continuum, Sarah Hathaway, Workplace MVP, workplace wellness

“What I’m Worth”

January 25, 2022 by John Ray

What I'm Worth
North Fulton Studio
"What I'm Worth"
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What I'm Worth“What I’m Worth”

“I should get paid what I’m worth.” For professional services providers, what we need or think we deserve is irrelevant. Here’s a story that illustrates the way we achieve better pricing, and it involves a value conversation. The Price and Value Journey is presented by John Ray and produced by the North Fulton studio of Business RadioX®.

TRANSCRIPT

John Ray: [00:00:00] And hello again. I’m John Ray on the Price and Value Journey. “What I’m worth. I should get paid what I’m worth.” I hear this sentiment and variations on it from professional services providers whom I speak to about their pricing. What I’m worth is dangerous language for a B2B services provider. You see, what I’m worth in isolation can easily get turned into what I need or what I deserve. At an extreme, what I’m worth can justify taking advantage of people.

John Ray: [00:00:40] What you need or think you deserve is irrelevant, certainly to the client, and that’s who pays your fee. What’s relevant is how clients valued the solutions you provide to their problems, their perception of that value. Better pricing for your services starts with solutions, solutions rooted in the value clients derive from the work you do. And that value, by the way, is not just rational. The value customers perceive always involves emotions.

John Ray: [00:01:17] Recently, I had a conversation with an entrepreneur whose business, while growing, has gnawing problems under the surface. Her problems have been causing her to lose focus and sleep. “What would it mean,” I ask her, “to have these problems resolved? All this is obviously weighing on you.” She looked up in a way into someplace where she could see what her business and her life might look like with solutions to the problems that she had outlined. A wave of relief swept across her face. “Wow. I’d be a lot less stressed. I wouldn’t feel bogged down anymore. I’d have the freedom to make this business a lot larger.” I’ll let that vision linger for a moment, and then I asked, “What’s that worth to you?” “Wow,” she said, “I can’t even imagine.” “Well, that wasn’t quite true.”

John Ray: [00:02:21] As our conversation continued, she started formulating tangible answers to that question. And that’s where my value is rooted, not in what I need or what I think I’m worth. What I’m worth has nothing to do with it.

John Ray: [00:02:39] I’m John Ray on the Price and Value Journey. If you’d like to know more, go to JohnRay.co, or if you’d like to send me a note, connect with me directly, email me John@JohnRay.co.

  

About The Price and Value Journey

The title of this show describes the journey all professional services providers are on:  building a services practice by seeking to convince the world of the value we offer, helping clients achieve the outcomes they desire, and trying to do all that at pricing which reflects the value we deliver.

If you feel like you’re working too hard for too little money in your solo or small firm practice, this show is for you. Even if you’re reasonably happy with your practice, you’ll hear ways to improve both your bottom line as well as the mindset you bring to your business.

The show is produced by the North Fulton studio of Business RadioX® and can be found on all the major podcast apps. The complete show archive is here.

John Ray, Host of The Price and Value Journey

John Ray The Price and Value Journey
John Ray, Host of “The Price and Value Journey”

John Ray is the host of The Price and Value Journey.

John owns Ray Business Advisors, a business advisory practice. John’s services include advising solopreneur and small professional services firms on their pricing. John is passionate about the power of pricing for business owners, as changing pricing is the fastest way to change the profitability of a business. His clients are professionals who are selling their “grey matter,” such as attorneys, CPAs, accountants and bookkeepers, consultants, marketing professionals, and other professional services practitioners.

In his other business, John a Studio Owner, Producer, and Show Host with Business RadioX®, and works with business owners who want to do their own podcast. As a veteran B2B services provider, John’s special sauce is coaching B2B professionals to use a podcast to build relationships in a non-salesy way which translate into revenue.

John is the host of North Fulton Business Radio, Minneapolis-St. Paul Business Radio, Nashville Business Radio, Alpharetta Tech Talk, and Business Leaders Radio. house shows which feature a wide range of business leaders and companies. John has hosted and/or produced over 1,100 podcast episodes.

Connect with John Ray:

Website | LinkedIn | Twitter

Business RadioX®:  LinkedIn | Twitter | Facebook | Instagram

Tagged With: John Ray, Price and Value Journey, pricing, professional services, professional services providers, ray business advisors, solopreneurs, value conversation, value pricing, worth

Hourly Billing Gone Wrong

January 24, 2022 by John Ray

Hourly Billing Gone Wrong
North Fulton Studio
Hourly Billing Gone Wrong
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Hourly Billing Gone WrongHourly Billing Gone Wrong

Flaws in hourly billing don’t always cheat the client; they often cheat the professional sending out the bill. A story on hourly billing gone wrong from Simon Sinek’s book, The Infinite Game. The Price and Value Journey is presented by John Ray and produced by the North Fulton studio of Business RadioX®.

TRANSCRIPT

John Ray: [00:00:00] I’m John Ray on The Price and Value Journey. Here’s a story of hourly billing gone wrong from a book I strongly recommend, The Infinite Game by Simon Sinek.

John Ray: [00:00:12] Sinek writes, “I used to work for a large advertising agency. After my first year at the company, leadership decided to implement time sheets. Unlike a law firm where a lawyer may be billing their clients for the actual number of hours of work, this was a way for the company to keep track of – well, actually, no one really had any idea of the utility of the timesheets. It was just something we were told to do. I managed to get away with not filling out mine for months. If they were tracking how I spent my time, I saw no point in telling the company I worked 100 percent on the one client to which I was assigned.”

John Ray: [00:00:53] “Of course, I got into trouble for not turning in my timesheets. And so, from then on, at the end of every month, I sat down with all my timesheets and filled them out in one go, in at 9:30 a.m., out at 5:30 p.m. In reality, I often came in earlier and left later. But who cares? I recall taking my timesheets to my boss for his signature. He looked them over and commented sarcastically, ‘You’re certainly a very consistent worker, aren’t you?’ And then, he signed them.”

John Ray: [00:01:25] “I have to believe that the timesheets were implemented because something went wrong in accounting. Perhaps a client was over billed for work done and demanded that the agency prove that the senior people who were promised to spend time on their account actually were the ones who spent time on the account or something like that.”

John Ray: [00:01:48] Interesting story from Simon Sinek. The question is, was the problem really in the accounting department? No. Because the problem arose because of a billing method which invites inaccuracies, abuse, and worse. Note that Sinek says his timesheets were fiction because he under billed, not over billed. The flaws in hourly billing don’t always cheat the client. They often cheat the professional sending out the bill.

John Ray: [00:02:21] This is one reason I tell professional services providers that if they are billing by the hour, by definition, they are underpricing their services. You might ask, though, how does under billing with a time based billing method shortchange the client? The problem is simple. When the client gets that bill, they don’t necessarily know that all the hours aren’t billed. An invoice based on time invites questions like, Did this work really take that much time? Why does this person think they’re so special they get to charge this much per hour?

John Ray: [00:02:56] And then, even after being told hours have been shaved off the bill, the client says, “Hmm. Can I trust that the previous bills I paid were right? What about the future ones? Will they try to make it back on me?” All these questions are misdirected. None of them address the most central point, “Did I, as the client, receive more value than what I paid in fees?”

John Ray: [00:03:24] Sometimes clients may start questioning a services provider who’s actually providing great value because the bill focuses attention on inputs which have nothing to do with value received. Hourly billing is nuts because it cheats both the client and the service provider, often, simultaneously.

John Ray: [00:03:48] I’m John Ray on The Price and Value Journey. If you’d like to know more, go to johnray.co or send me an email, john@johnray.co.

 

About The Price and Value Journey

The title of this show describes the journey all professional services providers are on:  building a services practice by seeking to convince the world of the value we offer, helping clients achieve the outcomes they desire, and trying to do all that at pricing which reflects the value we deliver.

If you feel like you’re working too hard for too little money in your solo or small firm practice, this show is for you. Even if you’re reasonably happy with your practice, you’ll hear ways to improve both your bottom line as well as the mindset you bring to your business.

The show is produced by the North Fulton studio of Business RadioX® and can be found on all the major podcast apps. The complete show archive is here.

John Ray, Host of The Price and Value Journey

John Ray The Price and Value Journey
John Ray, Host of “The Price and Value Journey”

John Ray is the host of The Price and Value Journey.

John owns Ray Business Advisors, a business advisory practice. John’s services include advising solopreneur and small professional services firms on their pricing. John is passionate about the power of pricing for business owners, as changing pricing is the fastest way to change the profitability of a business. His clients are professionals who are selling their “grey matter,” such as attorneys, CPAs, accountants and bookkeepers, consultants, marketing professionals, and other professional services practitioners.

In his other business, John a Studio Owner, Producer, and Show Host with Business RadioX®, and works with business owners who want to do their own podcast. As a veteran B2B services provider, John’s special sauce is coaching B2B professionals to use a podcast to build relationships in a non-salesy way which translate into revenue.

John is the host of North Fulton Business Radio, Minneapolis-St. Paul Business Radio, Nashville Business Radio, Alpharetta Tech Talk, and Business Leaders Radio. house shows which feature a wide range of business leaders and companies. John has hosted and/or produced over 1,100 podcast episodes.

Connect with John Ray:

Website | LinkedIn | Twitter

Business RadioX®:  LinkedIn | Twitter | Facebook | Instagram

Tagged With: B2B pricing, hourly billing, hourly pricing, John Ray, Price and Value Journey, pricing, pricing by time, professional services, professional services providers, ray business advisors

When “Know, Like, and Trust” Doesn’t Matter

January 22, 2022 by John Ray

know like and trust
North Fulton Studio
When "Know, Like, and Trust" Doesn't Matter
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know like trustWhen “Know, Like, and Trust” Doesn’t Matter

The old cliché about how “people do business with people they know, like, and trust” doesn’t fully explain why clients buy or define their willingness to pay. The Price and Value Journey is presented by John Ray and produced by the North Fulton studio of Business RadioX®.

TRANSCRIPT

John Ray: [00:00:00] Hi. I’m John Ray on The Price and Value Journey. When know, like, and trust doesn’t matter.

John Ray: [00:00:07] A neighbor of mine just had a new standby whole home generator installed for his home, replacing an older unit. I was surprised to see this installation for several reasons. To begin with, home standby generators aren’t a common feature of homes in my part of the country. I don’t know anyone else in our neighborhood who owns one. Nationwide, it’s estimated that less than three percent of all U.S. households have a standby electric generator installed.

John Ray: [00:00:40] Further, by all outward appearances, this man would not be a great prospect for a whole home generator salesperson. He’s now retired and I know that he and his wife have considered selling and downsizing, and generators of the size he bought stay with the home. In addition, he’s got a reputation for being cheap, one he gets good naturedly teased about.

John Ray: [00:01:08] Generators aren’t one of those home improvement features which generate a positive return when the house is sold. So, the idea of this thrifty minded guy buying a generator, which costs somewhere between $5,000 and $10,000 depending on the size of the unit, was eyebrow raising for me.

John Ray: [00:01:28] If you make your living selling whole home generators, you might look at this guy and think he’s the lowest likely to buy prospect. You would have been wrong. Maybe my neighbor’s background in the insurance industry makes him risk averse. Maybe he’s had a previous bad experience with an extended power outage. Maybe a recent fall makes him value knowing lights will always be available, so he’ll always be able to see where he’s going. Whatever the reason for his purchase, my neighbor had outcomes in his mind he wanted to achieve. Outcomes not apparent by outward appearances. He’s willing to write a significant check for those outcomes, all visible evidence to the contrary.

John Ray: [00:02:18] For me, I have zero interest in this product. I’m willing to live with the risk that the power may occasionally go out and I will have to go pull out the candles. If you’re the whole home generator salesperson, it doesn’t matter how much I might like and trust you. This is where the old cliché about how people do business with people they know, like, and trust comes up short. Know who I can trust is vital, of course. Yet a customer must be motivated to buy.

John Ray: [00:02:52] As with my neighbor, those motives are not immediately apparent. The only way you would have known of my neighbor’s motivations is to have a value conversation. It’s a dialogue focused on the desires, hopes, dreams, taste, and problems of that client sitting in front of you. It’s their values instead of the features and benefits of whatever you are selling.

John Ray: [00:03:20] In his book, The Secret of Selling Anything, Harry Browne writes, “Everyone is already motivated. The only question is by what.” Your job is to find out what it is that motivates your prospect. Don’t confuse your products with motivations. No one ever buys a product. He buys what the product will accomplish. He buys because there’s something he wants for his life. Your job is to find out what that something is.

John Ray: [00:03:53] As a professional services provider, if you don’t have the patience to have a value conversation, then you don’t understand the client who’s sitting in front of you. You may think you do, but what you think you know may simply be your preconceptions. And if you don’t understand the motivations driving that client, then your pricing will be wrong, guaranteed.

John Ray: [00:04:19] I’m John Ray on The Price and Value Journey. If you’d like to connect with me, go to johnray.co or you can email me directly, john@johnray.co.

  

About The Price and Value Journey

The title of this show describes the journey all professional services providers are on:  building a services practice by seeking to convince the world of the value we offer, helping clients achieve the outcomes they desire, and trying to do all that at pricing which reflects the value we deliver.

If you feel like you’re working too hard for too little money in your solo or small firm practice, this show is for you. Even if you’re reasonably happy with your practice, you’ll hear ways to improve both your bottom line as well as the mindset you bring to your business.

The show is produced by the North Fulton studio of Business RadioX® and can be found on all the major podcast apps. The complete show archive is here.

John Ray, Host of The Price and Value Journey

John Ray The Price and Value Journey
John Ray, Host of “The Price and Value Journey”

John Ray is the host of The Price and Value Journey.

John owns Ray Business Advisors, a business advisory practice. John’s services include advising solopreneur and small professional services firms on their pricing. John is passionate about the power of pricing for business owners, as changing pricing is the fastest way to change the profitability of a business. His clients are professionals who are selling their “grey matter,” such as attorneys, CPAs, accountants and bookkeepers, consultants, marketing professionals, and other professional services practitioners.

In his other business, John a Studio Owner, Producer, and Show Host with Business RadioX®, and works with business owners who want to do their own podcast. As a veteran B2B services provider, John’s special sauce is coaching B2B professionals to use a podcast to build relationships in a non-salesy way which translate into revenue.

John is the host of North Fulton Business Radio, Minneapolis-St. Paul Business Radio, Nashville Business Radio, Alpharetta Tech Talk, and Business Leaders Radio. house shows which feature a wide range of business leaders and companies. John has hosted and/or produced over 1,100 podcast episodes.

Connect with John Ray:

Website | LinkedIn | Twitter

Business RadioX®:  LinkedIn | Twitter | Facebook | Instagram

Tagged With: John Ray, Price and Value Journey, pricing, professional services, ray business advisors, value, value based pricing, value pricing

Confidence and Silencing the Voice in Your Head

January 21, 2022 by John Ray

confidence
North Fulton Studio
Confidence and Silencing the Voice in Your Head
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Confidence and Silencing the Voice in Your Head

The biggest problem most professionals have with their pricing starts with a lack of confidence. The solution to this problem starts with a change in perspective. The Price and Value Journey is presented by John Ray and produced by the North Fulton studio of Business RadioX®.

TRANSCRIPT

John Ray: [00:00:00] And hello again. I’m John Ray on The Price and Value Journey. Let’s talk about confidence and silencing the voice in your head. What’s the biggest problem most professional services providers have with their pricing? It’s lack of confidence. Hands down, no contest.

John Ray: [00:00:20] Most professional services providers I’ve worked with are secure in the notion that they can solve client problems. That’s usually not the issue. The lack of confidence manifests itself in that smirking little gremlin who stands on your shoulder while you’re in conversation with a possible client.

John Ray: [00:00:40] That prospect asks you about your pricing, and the gremlin starts whispering in your ear, “They’re not going to go for it. They’ll tell you you’re too expensive. You need this business, don’t screw it up now. If you don’t cut the price you came up with, you’ll lose the business.” You hear comments like this in your head and then you fold like the proverbial cheap suit. Whatever pricing you came up with, you backtrack. You can almost hear the cackle of the gremlin when you do.

John Ray: [00:01:17] I recently coached a client who hadn’t raised prices since she started her consulting practice. She priced by the hour – now, that’s another problem altogether. I asked her how she arrived at her hourly price. “It just felt right,” she said. “It felt right to who?” I asked. “Well, I didn’t think I could ask for any more.” Well, those responses from her revealed the problem. The focus is on her as the services provider.

John Ray: [00:01:50] Lack of confidence can be solved by a singular focus on the client. What’s the problem that the client has that you’re solving? How will their life change for the better because of your intervention? What’s the value of the solutions you’ve discussed? This perspective and the work which goes into establishing answers to such questions allows you to value price, to price based on client understanding of the value you deliver.

John Ray: [00:02:25] If there’s a question about how you came up with the price, the answer is centered around a perfectly appropriate answer, your pricing to capture just a little piece of the value your client receives. It’s fair to them. It’s understandable. And it’s a win-win for both sides.

John Ray: [00:02:42] Then, it’s not about you anymore. It’s not about the imposter syndrome or you thinking you’re not good enough. It’s not about your hourly rate or whether you deserve that amount. If you’re pricing conversation is grounded in the value you and the client have agreed the client will receive because of your work, you’ll be amazed at how much confidence you seem to have. And you’ll silence that smirking little gremlin.

John Ray: [00:03:13] I’m John Ray on The Price and Value Journey. If you’d like to connect with me directly, go to john@johnray.co or go to my website, johnray.co. Thanks again for joining me.

 

About The Price and Value Journey

The title of this show describes the journey all professional services providers are on:  building a services practice by seeking to convince the world of the value we offer, helping clients achieve the outcomes they desire, and trying to do all that at pricing which reflects the value we deliver.

If you feel like you’re working too hard for too little money in your solo or small firm practice, this show is for you. Even if you’re reasonably happy with your practice, you’ll hear ways to improve both your bottom line as well as the mindset you bring to your business.

The show is produced by the North Fulton studio of Business RadioX® and can be found on all the major podcast apps. The complete show archive is here.

John Ray, Host of The Price and Value Journey

John Ray The Price and Value Journey
John Ray, Host of “The Price and Value Journey”

John Ray is the host of The Price and Value Journey.

John owns Ray Business Advisors, a business advisory practice. John’s services include advising solopreneur and small professional services firms on their pricing. John is passionate about the power of pricing for business owners, as changing pricing is the fastest way to change the profitability of a business. His clients are professionals who are selling their “grey matter,” such as attorneys, CPAs, accountants and bookkeepers, consultants, marketing professionals, and other professional services practitioners.

In his other business, John a Studio Owner, Producer, and Show Host with Business RadioX®, and works with business owners who want to do their own podcast. As a veteran B2B services provider, John’s special sauce is coaching B2B professionals to use a podcast to build relationships in a non-salesy way which translate into revenue.

John is the host of North Fulton Business Radio, Minneapolis-St. Paul Business Radio, Nashville Business Radio, Alpharetta Tech Talk, and Business Leaders Radio. house shows which feature a wide range of business leaders and companies. John has hosted and/or produced over 1,100 podcast episodes.

Connect with John Ray:

Website | LinkedIn | Twitter

Business RadioX®:  LinkedIn | Twitter | Facebook | Instagram

Tagged With: confidence, John Ray, Price and Value Journey, pricing, professional services, ray business advisors, solopreneurs, value, value pricing

The Red Flags of Inadequate Pricing

January 21, 2022 by John Ray

inadequate pricing
North Fulton Studio
The Red Flags of Inadequate Pricing
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inadequate pricing

The Red Flags of Inadequate Pricing

In a discovery call I had with a videographer, he revealed that his pricing was inadequate before he disclosed what his prices were. What are those “red flags?” Do any of them apply to your practice? The Price and Value Journey is presented by John Ray and produced by the North Fulton studio of Business RadioX®.

TRANSCRIPT

John Ray: [00:00:00] And hello again. I’m John Ray on The Price and Value Journey. Recently, I was on a discovery call with a videographer. This man had been in business for about five years, and he felt like he needed to make some major changes to his business if he was going to achieve the goals he had set for himself.

John Ray: [00:00:21] About 15 or 20 minutes into the conversation, I told him, “You know, I can tell your pricing is too low.” “How do you know that?” he asked. “I haven’t told you my prices yet.”

John Ray: [00:00:35] In no particular order, I responded, there are several reasons. First, you price by the hour. By definition, a professional services provider, like you, who prices by the hour is underpricing their services. Second, you tell me that all clients are paying the same price. The problem there is that not all clients have the same values. Different clients value your services differently. You’re probably going the extra mile for clients who don’t value that added care you’re giving them and you’re not charging for it.

John Ray: [00:01:10] Third, you’re not offering options. Options are a powerful way to tailor your services to your best fit clients who love what you accomplish for them, and they’re willing to pay you a good price for that. Fourth, you complain that you feel like you’re working too hard for too little money. For professional services providers, like you, that’s always a sign of a pricing problem.

John Ray: [00:01:38] Fifth, you seem to be taking on most projects which come your way. More prospects should be turning you down because of price. Finally, I said, you’re talking a lot about what and how you do what you do instead of the challenges clients have that you solve. What that tells me is that you’re not having solid value conversations with clients at all. A value conversation is the dialogue you must have with a prospective client to understand the difficulties you’ll be helping them overcome. If you understand how your solution to their problems moves the needle for their business, then you’ll be able to set better prices.

John Ray: [00:02:25] He paused and said, “You’re exactly right. I need to work on my pricing.” In about 15 minutes, this videographer had run through just about every red flag I look for when assessing the pricing of professional services providers. If any of these red flags are flying over your practice, you have a pricing problem and your pricing is too low.

John Ray: [00:02:53] I’m John Ray on The Price and Value Journey. If you’d like to know more, go to johnray.co or connect with me directly, email me, john@johnray.co.

 

About The Price and Value Journey

The title of this show describes the journey all professional services providers are on:  building a services practice by seeking to convince the world of the value we offer, helping clients achieve the outcomes they desire, and trying to do all that at pricing which reflects the value we deliver.

If you feel like you’re working too hard for too little money in your solo or small firm practice, this show is for you. Even if you’re reasonably happy with your practice, you’ll hear ways to improve both your bottom line as well as the mindset you bring to your business.

The show is produced by the North Fulton studio of Business RadioX® and can be found on all the major podcast apps. The complete show archive is here.

John Ray, Host of The Price and Value Journey

John Ray The Price and Value Journey
John Ray, Host of “The Price and Value Journey”

John Ray is the host of The Price and Value Journey.

John owns Ray Business Advisors, a business advisory practice. John’s services include advising solopreneur and small professional services firms on their pricing. John is passionate about the power of pricing for business owners, as changing pricing is the fastest way to change the profitability of a business. His clients are professionals who are selling their “grey matter,” such as attorneys, CPAs, accountants and bookkeepers, consultants, marketing professionals, and other professional services practitioners.

In his other business, John a Studio Owner, Producer, and Show Host with Business RadioX®, and works with business owners who want to do their own podcast. As a veteran B2B services provider, John’s special sauce is coaching B2B professionals to use a podcast to build relationships in a non-salesy way which translate into revenue.

John is the host of North Fulton Business Radio, Minneapolis-St. Paul Business Radio, Nashville Business Radio, Alpharetta Tech Talk, and Business Leaders Radio. house shows which feature a wide range of business leaders and companies. John has hosted and/or produced over 1,100 podcast episodes.

Connect with John Ray:

Website | LinkedIn | Twitter

Business RadioX®:  LinkedIn | Twitter | Facebook | Instagra

Tagged With: inadequate pricing, John Ray, Price and Value Journey, pricing, professional services, ray business advisors, value, value pricing

Introduction to The Price and Value Journey

January 21, 2022 by John Ray

Price and Value Journey
North Fulton Studio
Introduction to The Price and Value Journey
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Price and Value Journey

Introduction to The Price and Value Journey

I’m launching a podcast, The Price and Value Journey, aimed at solopreneurs and small professional services firms.

As I mention in this introduction, the title of the show describes the journey all of us as B2B services providers are on:  building a business by seeking to convince the world of the value we offer, helping clients achieve the outcomes they desire, and trying to do all that at pricing which reflects the value we deliver.

If you’ve been following me for a while, you know that I have a particular passion around pricing, as I’m convinced that pricing is the biggest problem most professional services providers have. So this podcast will lean heavily into pricing-related issues.

You’ll hear short commentaries from me—think the audio version of the posts I make on LinkedIn, my blog, and elsewhere. I’ll also offer interviews with leaders in the professional services world.

The goal of this show is simple, to offer help in what all of us are looking for:  doing work we enjoy, for clients we love working for, and making more money along the way.

Thanks in advance for your support and feedback! If you’d like to be in touch, contact me at one of the links below.

TRANSCRIPT

John Ray: [00:00:01] Hello everyone. I’m John Ray, and welcome to The Price and Value Journey. That’s the name of the show. But if you’re a solo or small professional services firm, this title describes the journey you’re already on, whether you call it that or not.

John Ray: [00:00:18] When we start out in our business or our practice, you see, we’re trying to demonstrate the knowledge and experience we bring to clients. We’re trying to convince prospective clients of the value that we offer. Over time, hopefully, we grow. Our practice grows beyond friends and family to the contacts and referrals that have come from our marketing efforts.

John Ray: [00:00:42] Now, at a certain point, the activity of our business gets more fevered. We may have to hire a virtual assistant or maybe a full-time staff person, maybe we take on a partner. As we grow, there’s a gap between where we thought we’d be when we started out and the reality on the ground of where we find ourselves.

John Ray: [00:01:05] Maybe we’re not happy with the results of our marketing. Maybe we know we need to work on our branding or our social media game. It could be we need to do better in sales, but we don’t know how to or we just don’t like the idea of selling. Maybe we’ve got too much client turnover. It could be that we’re quite busy or even overwhelmed. And it may be even worse than that, we may feel like we’re working too hard for too little money.

John Ray: [00:01:37] Now, if that’s the case, then we’ve got a pricing problem. Maybe we know our rates or pricing is too low, but we don’t know what to do about it. Or we’re scared, if we’re really honest with ourselves. Maybe we don’t even know that being overwhelmed or too busy in our practice really is a symptom of a bigger problem that our pricing is too low.

John Ray: [00:02:06] Pricing is a particular passion for me, because I’m convinced that pricing is the biggest problem most professional services providers have. It’s not getting new clients or servicing them. It’s getting the best clients at better pricing.

John Ray: [00:02:25] Now, here’s the deal. Changes in pricing are the fastest way to change, not only the bottom line of a business, but the mindset of you, the business owner. The changes we make in our pricing mean the difference between frustration and a newfound enthusiasm for our business. Better clients to work with and working smarter instead of harder. And, of course, a stronger bottom line.

John Ray: [00:02:58] That’s where this show, The Price and Value Journey, comes in. Wherever you are on your entrepreneurial journey, the idea of the show is to share ideas and commentary, which help make you more money doing the work you enjoy doing for clients you love working for. I’ll share, not only what I’ve learned myself, but what I continue to hear and learn from clients that I work with. I’ll give you short commentaries and ideas and extended interviews with leaders in the professional services world.

John Ray: [00:03:37] I’ve been in the world of professional services in some form or role for 40 years. I’ve got plenty of t-shirts on the mistakes I’ve made along the way. I have my own business advisory practice, part of which includes helping professional services practitioners with their pricing. I also have a separate but related business, helping business owners, mostly professional services providers, who want to do their own podcast.

John Ray: [00:04:07] I welcome your feedback on the show. If you’d like to connect with me directly, you can email me at john@johnray.co or just visit my website, johnray, J-O-H-N-R-A-Y, .co. I’m also very active on LinkedIn, so you can connect with me there. My LinkedIn handle is johnray1, that’s J-O-H-N-R-A-Y-1. Thanks for joining me on this journey, The Price and Value Journey.

 

 

John Ray, Host of The Price and Value Journey

John Ray The Price and Value Journey
John Ray, Host of “The Price and Value Journey”

John Ray is the host of The Price and Value Journey.

John owns Ray Business Advisors, a business advisory practice. John’s services include advising solopreneur and small professional services firms on their pricing. John is passionate about the power of pricing for business owners, as changing pricing is the fastest way to change the profitability of a business. His clients are professionals who are selling their “grey matter,” such as attorneys, CPAs, accountants and bookkeepers, consultants, marketing professionals, and other professional services practitioners.

In his other business, John a Studio Owner, Producer, and Show Host with Business RadioX®, and works with business owners who want to do their own podcast. As a veteran B2B services provider, John’s special sauce is coaching B2B professionals to use a podcast to build relationships in a non-salesy way which translate into revenue.

John is the host of North Fulton Business Radio, Minneapolis-St. Paul Business Radio, Nashville Business Radio, Alpharetta Tech Talk, and Business Leaders Radio. house shows which feature a wide range of business leaders and companies. John has hosted and/or produced over 1,100 podcast episodes.

Connect with John Ray:

Website | LinkedIn | Twitter

Business RadioX®:  LinkedIn | Twitter | Facebook | Instagram

Tagged With: B2B services, John Ray, Price and Value Journey, pricing, professional services, value, value pricing

Five Considerations When Planning to Sell Your Practice, with Danielle McBride, Oberman Law Firm

January 21, 2022 by John Ray

Selling a Practice
Dental Law Radio
Five Considerations When Planning to Sell Your Practice, with Danielle McBride, Oberman Law Firm
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Sell a Practice

Five Considerations When Planning to Sell Your Practice, with Danielle McBride, Oberman Law Firm (Dental Law Radio, Episode 31)

Whether your exit plans are near term or down the road, this episode of Dental Law Radio is must listening. Danielle McBride joined host Stuart Oberman to discuss major considerations for any dental practice owner who plans to sell. Preparing for the due diligence a buyer will conduct is particularly vital. Danielle also discussed expenses which negatively impact profitability and therefore valuation, the lease, staffing, patient credits, and much more. Dental Law Radio is underwritten and presented by Oberman Law Firm and produced by the North Fulton studio of Business RadioX®.

Danielle McBride, Partner, Oberman Law Firm

Danielle McBride
Danielle McBride, Partner, Oberman Law Firm

Danielle McBride has been practicing law for over 21 years, and her primary focus is representing healthcare clients on a local, regional, and national basis. Ms. McBride regularly consults with clients regarding simple to complex healthcare transitions, including mergers and acquisitions, employment law, governmental compliance, tax strategies, practice valuations, DSO formation and structures, employee compensation, associate and partnership contracts, joint ventures, and partnership buy-in/buy-outs.

In addition, Ms. McBride brings a wealth of knowledge and experience preparing practice valuations for clients, as well as formulating simple to complex tax strategies, and entity formations.

Ms. McBride holds a Bachelor of Arts in Sociology/Criminology from The Ohio State University, a Juris Doctor (J.D.) from Ohio Northern University Pettit College of Law, and a Master of Laws (LL.M.) in Taxation from Case Western Reserve University.

LinkedIn

TRANSCRIPT

Intro: [00:00:02] Broadcasting from the Business RadioX studios in Atlanta, it’s time for Dental Law Radio. Dental Law Radio is brought to you by Oberman Law Firm, a leading dental-centric law firm serving dental clients on a local, regional and national basis. Now, here’s your host Stuart Oberman.

Stuart Oberman: [00:00:26] Welcome, ladies and gentlemen, to Dental Law Radio. Unbelievable guest speaker today, unbelievable on the podcast, Danielle McBride, partner in Oberman Law Firm. And little brief background, Danielle’s been practicing for about 21 years. Specialty market is dental law, mergers, acquisitions, tax, compliance. And we’re going to drill down on a couple of things today. I know that Danielle has probably done a couple of hundred transactions, if not thousands, in her illustrious career. And I know she’s going to have a lot of insight into this.

Stuart Oberman: [00:01:00] But I get this question, what do I need to consider when preparing for sale? So, what I want to do is Danielle, I want to leverage some of your experience here and expertise, and I want to run through about five things to consider when preparing your practice, we’re talking to a dentist for sale. So, let’s run through a couple of things. It’s sort of reoccurring theme – our doctors get into trouble, they’re not prepared. Number one, give me a number one. What’s the number one issue we see in preparing for practice sales that are sometimes problematic?

Danielle McBride: [00:01:41] Sure. So, number one is the due diligence in getting that in order. And that means understanding the business and your numbers, cash flow or profitability for the practice, what you sometimes hear in DSO languages, EBITA. And that’s the key to practice valuation and practice transition. You need to know your numbers, your discretionary expenses, those add backs in the practice. You need to take a look at your biggest expenses like staff, supplies, laboratory expenses. Knowing fee increases. What’s your fee schedule? We get questions for fee schedule, and when’s the last time you increased fees on things? And that’s a key thing right now with inflation.

Danielle McBride: [00:02:33] You want to also make sure that you’re not letting those fee increases lapse and not doing something from year to year as well to kind of keep up with things. Marketing, website, social media stuff, patient numbers, active patients, new patients, PPOs and referring doctors if you’re a specialist. All of those are due diligence items that are going to be requested by buyers, whether they’re private parties, individual dentist buyers, or whether they’re DSO transactions. And the DSO transactions, they’re much heavier on the due diligence. They will ask for every piece of paper you could possibly come up with in this transaction.

Stuart Oberman: [00:03:13] Plus.

Danielle McBride: [00:03:14] So, you know. So, getting those things in order ahead is key.

Stuart Oberman: [00:03:20] I got a question. So, profitability and EBITDAs. So, look, our doctors run a lot of stuff through their practice that they shouldn’t, and they get into trouble and it affects their numbers. What are some of the things that you see? Before we jump to number two, what are some of the things that you see doctors running through practices that they really need to clean up to get their numbers in order?

Danielle McBride: [00:03:46] Sure. A lot of it is things like running office expenses and personal expenses through the practice. And so, it’s easy to see.

Stuart Oberman: [00:03:56] That never happens.

Danielle McBride: [00:03:57] Yeah, yeah, never happens. They don’t go to Home Depot and buy toilet paper and paper towels for the office and home. So, a lot of times, they’re running things like that through the practice, and they don’t separate the receipts out. And so, it’s getting lumped into categories like office expenses or promotional expenses, things like sponsoring some of your kids’ events, and you write it off through practice promotion. That’s greedy when a buyer-

Stuart Oberman: [00:04:24] Pay your children, right? How do they pay their children?

Danielle McBride: [00:04:25] What’s that?

Stuart Oberman: [00:04:25] How do they pay their children?

Danielle McBride: [00:04:29] A lot of them pay their children. Put your kids on the payroll. You should be putting them on the payroll as soon as they’re old enough, maybe six or seven years old. Have them reaching the lower filing cabinets or modeling for the website, have them mow the lawn for the practice, and get them IRA contributions.

Stuart Oberman: [00:04:49] That’s good. Wow.

Danielle McBride: [00:04:50] Yeah. So, kids on the payroll. There’s a lot of spouses on the payroll too. And sometimes, they’re paid. Sometimes, they’re underpaid. Sometimes, they’re overpaid. And those are things that go into profitability on the practice as well and you don’t necessarily. Those are the easy things to see. The harder things are when they’re running all this stuff through office expense, and they’re like, “Yeah, yeah, $50,000 of it is just me running personal expenses through.” Well, that’s hard for a buyer to accept that. Okay, well, the profitability is really $100,000 higher than what’s showing up when I’m looking at your typical add backs. Your practice promotion expense – auto, car, meals, travel, continuing ed, staff or family on the payroll, those sort of things, those are all pretty easy to see. It’s the other things that really need cleaned up sometimes because it’s going to be hard to explain to that buyer unless you start showing them all your credit card statements.

Stuart Oberman: [00:05:55] I know you made a best friend out of all of the underpaid spouse managers.

Danielle McBride: [00:06:01] Yeah.

Stuart Oberman: [00:06:02] You just became an absolute cult hero, I can tell you that. Well, that’s good. That’s definitely good stuff that affects the profitability. And we also have seen some audits from state and federal on expenditures that are never good like that. So, give me a number two. Give me a number two on things to consider.

Danielle McBride: [00:06:24] Number two-

Stuart Oberman: [00:06:24] Yeah.

Danielle McBride: [00:06:25] … is the lease. Everyone always forgets about the lease and waits till the last minute. So, if you’re preparing for a transaction, get your lease out. Look at what the terms are, find out if you’ve got to get consent from your landlord to sell, find out what happens if you have a personal guarantee on that lease. If you’re going to assign the lease, if it’s a third-party landlord, make sure that you’ve got under control your lease. You want to make sure that you know what the terms are. If you’re up for a renewal and you’re thinking about selling your practice, there are lots of things that you could try to work into that lease with the landlord to try and prepare for a practice sale. Perhaps even getting something into the lease saying that you don’t need their consent to sell to transition the lease to that buyer if you’re selling your practice. I’ve run across lots of leases over my years with third-party landlords and it can be a real headache. And that is the single biggest reason I get a transaction delayed is that, “Oh my god, we don’t have the lease assignment from the third-party landlord.”

Stuart Oberman: [00:07:40] Now, are you seeing — we’re seeing this a little bit coming west to east? Are you seeing that if – which a landlord does not have to do – end the lease early, that they want a percentage of the sale to do that. We’re seeing some interesting numbers coming through that.

Danielle McBride: [00:08:01] Yeah, I’ve seen some. It has been more of a West Coast issue that I’ve seen this in. Midwest and Northeast, I haven’t seen a lot of that with a percentage of the sales. In New York, I have had a few transactions where we’ve had to try and buy the landlord, and essentially pay them something in order to get a seller out of a lease. But I had a transaction like that.

Stuart Oberman: [00:08:24] That’s called legal bribery.

Danielle McBride: [00:08:25] Yeah. Yeah, it is. The New York leases, they’re a lot of fun, let me tell you.

Stuart Oberman: [00:08:33] Wow! I mean, what usually starts in the West comes East. So, I think we’ll be seeing that eventually. But well, number three. That was a great number two. We had cash flow number one, and lease number two. And what are we looking at, maybe the third issue?

Danielle McBride: [00:08:50] Number three is staffing, goodwill transition, patient retention issues. So, you want to be able to transition the practice well. And some of the key things are not just the doctor transitioning to the new doctor, but also staffing and patient retention. And so, a lot of times, the goodwill transition is a key component. And sometimes, that’s where you see negotiations kind of get a little stuck from time to time. Is it the buyer wants to make sure that the seller and the staff are going to contribute to the transition, and make sure that the patients can be retained, that there’s going to be an introductory letter, or a letter to referral sources if it’s a specialty practice? Introductions maybe with the top 5-10 referral sources. Making sure that the staff is going to stay in the transaction, and that you’re not going to lose, and have a bunch of staff turnover right at the transition date. And now, you’re trying to retain patients, but you’ve got all new faces in there.

Stuart Oberman: [00:09:58] What about associate issues?

Danielle McBride: [00:10:01] Associate issues as well. That’s another key thing in staffing is that if you’ve got an employment agreement or you have associates working in the practice, and you didn’t have an employment agreement with them, and there are no restrictive covenants, your buyers are going to be coming in, and they’re going to be asking for those associates to sign contracts. And if you didn’t have one before, you’ve got nothing to actually assign, which means a new negotiation with that associate and potentially with the buyer. And if they’re a key producer in the practice, especially in these big DSO transactions, they’re offering this money for the transaction based on key production numbers. And if you’ve got an associate that is not going to stay with the practice or that you can’t enforce a covenant not to compete for in order to prevent them from competing with the buyer, then you’re going to have some things you’re going to have to negotiate, and it could really create some problems.

Stuart Oberman: [00:10:57] Now, question for you, when you do your practice evaluations, and you do a great job on that, does the associate not staying affect the value of the practice when you’re asked to evaluate what that practice is worth?

Danielle McBride: [00:11:14] Sometimes. It depends on the circumstances.

Stuart Oberman: [00:11:17] That’s a great legal answer.

Danielle McBride: [00:11:19] Yeah.

Stuart Oberman: [00:11:21] That’s a typical answer, “Well, it depends.”

Danielle McBride: [00:11:23] It really depends on facts and circumstances.

Stuart Oberman: [00:11:24] Yeah.

Danielle McBride: [00:11:24] Yeah. And the key is going to be whether or not the practice can find a replacement and associate easily, or whether or not the practice owner or the other doctors working in the practice are able to pick up that profitability, or to pick up that production from that doctor who’s not going to stay.

Stuart Oberman: [00:11:40] Staff, staff, staff. Wow! Let’s look at the number four. Give me the number four.

Danielle McBride: [00:11:48] Number four, equipment, assets and curb appeal. And a little bit of this is about allocations as well. You’ve got goodwill, and you’ve got tangible assets in the practice. And so, one of the things, if you’re thinking about putting your practice on the market, there are some practices out there that maybe they haven’t updated with newer equipment, or they’ve thought about refreshing their waiting room, or adding a CERAC machine, or adding a major piece of equipment, and they haven’t done it yet.

Stuart Oberman: [00:12:21] Pick it up at 179 deduction, right?

Danielle McBride: [00:12:24] Yeah, you can get the 179 deduction, so you can buy it and you can write it off all in the same year. And in part, it’s a seller problem; in part, it’s a buyer problem. And so, there’s a little bit of a fine line you walk between whether or not you go ahead and make some of those improvements to make the practice more attractive to a buyer, or you say, “I don’t want to invest in a lot of super new technology and go into debt just to be able to make the practice. I’ll take that into account when I value the practice. I’m going to look at what the equipment is and how much it’s valued there. If the practice is not – say they don’t have electronic records, everything still on paper in boxes, and computer systems haven’t been upgraded, there are some minimum requirements for computer systems to be upgraded that most buyers are going to ask.

Danielle McBride: [00:13:21] And so, those are things that are going to go into negotiating the ultimate purchase price that a buyer is going to be willing to pay. Now, some of it, it’s a seller’s problem. Some of it, it’s a buyer’s problem. If you want to be super fancy and buy all the latest and greatest technology, buyer, go ahead. That doesn’t mean I don’t have a practice that’s fully capable of supporting you working in it, and you can make whatever changes you want to make on your dime, but there are some things that a seller might want to do just to make things a little more attractive for a buyer.

Stuart Oberman: [00:13:53] And then, it’s — yeah. I mean, we had Dr. Richard Madow on a couple of episodes ago. He had a good talk about doctors buying equipment and profitability and doesn’t need that. And that was interesting analogy, and how that just compared to what you said regarding [crosstalk].

Danielle McBride: [00:14:18] Sure. Don’t go into debt to make it-.

Stuart Oberman: [00:14:19] Yeah.

Danielle McBride: [00:14:19] Don’t go into debt to make it appealable-

Stuart Oberman: [00:14:21] That’s a good-

Danielle McBride: [00:14:21] … or attractive to a buyer, but there are some things that you could do, especially if you’re looking at a year or two out from a practice sale and making a few revisions here or there. You can write these things off, 179, depreciation, deductions, bonus depreciation, et cetera, so.

Stuart Oberman: [00:14:40] Yeah, I mean, that is practical, practical advice, which a lot of times, I think doctors are missing from the advisor standpoint. Let’s talk about the last, number five. And this get a little sticky in the contract areas also. It’s, you know-

Danielle McBride: [00:15:01] Yes.

Stuart Oberman: [00:15:01] This is where, sort of, the rubber hits the road. And talk about number five on some of these.

Danielle McBride: [00:15:08] So, number five is my accounts receivable, prepaid accounts, patient credits and treatment in progress.

Stuart Oberman: [00:15:17] Yeah.

Danielle McBride: [00:15:17] Now, there is no one size fits all on any of those. And often, they wait until the last minute to look at these, “Oh, I’ll get you this. Oh, I’ll get you this report. Oh, I’ll look and see,” or they run the report, and they don’t pay attention to it.

Stuart Oberman: [00:15:33] Famous last words.

Danielle McBride: [00:15:35] Yeah. I mean, patient credits, in particular, your accounts receivable aging, you may have things that are sitting on the report if you haven’t cleaned up your collections, if you haven’t cleaned up your patient credits, those are all things that can go into the ultimate purchase price if someone’s going to purchase your accounts receivable and take over the practice. And then, your prepaid accounts. And it can vary based on specialty. Obviously, in orthodontic practices, you’ve got long-term contracts with payments that may have been paid in full, contracts paid in full at the start of treatment but you’ve got a buyer that’s doing — say, you had a bunch of patients pay right before the closing, you got all the money, but the buyer is going to get — seller got all the money, but buyer’s now going to have to do all of the work to finish those patients.

Danielle McBride: [00:16:27] And so, there, oftentimes, has to be some sort of adjustment to price or proration on prepaid contracts. And there can be other specialties as well or even general practices that maybe do some particular restorative type work or something that will have treatment in progress and prepaid treatment that is long-term patient treatment planning, where you’ve got courses of treatment that lasts for multiple appointments over a longer period of time, with maybe episodes of healing required in between, and you’ve got someone who’s got a $10,000 case that’s being paid on a monthly basis because that’s the arrangement they entered into with the doctor there, and their treatment is maybe a quarter of the way done, you’ve got to actually think about those things. And oftentimes, we add exhibits to the contract that will list patient credits, patient refunds having to be made prior to closing, prepaid cases being prorated between buyer and seller.

Stuart Oberman: [00:17:36] Do you have to do-

Danielle McBride: [00:17:36] Thinking of progress list being done.

Stuart Oberman: [00:17:38] Do you have to give special consideration in contracts when you have that seller who’s leaving, and and you’ve got open cases, or what happens if you got a hundred patients come back from faulty work-

Danielle McBride: [00:17:53] Right.

Stuart Oberman: [00:17:53] … what happens with that?

Danielle McBride: [00:17:57] Right. And that’s where we have provisions in our contracts that usually deal with what happens if there’s defective work or rework, and can the buyer — as a seller, you don’t want the buyer to just say, “Well, I have to redo all of this work. And now, you owe me this money,” and it goes on indefinitely. There are time limitations that should be put in their requirements. There are parameters that should be set. And this is all based on the facts and circumstances of the practice. You may have some practices where this isn’t a problem because you don’t have patients that are not paying when they receive their treatment.

Stuart Oberman: [00:18:31] Danielle, great stuff about the patient credits. One thing in redos, one thing I want to do is I want you elaborate a little bit more on the contract side as far as what happens when you’ve got a doctor that maybe is selling sticking around for a year or two. I mean, you mentioned earlier about limits in contracts and redos. Elaborate just a little bit more on that contract provision, what should be on there to limit the seller’s liabilities going forward?

Danielle McBride: [00:19:03] Sure. I mean, the seller should limit the liability going forward based on some parameters for patients. You can’t just have patients who have not been seen in the practice for the last year coming in to have rework done or having the buyer not consult you about rework before they agree to retreat a patient and then charge you for the fee to redo the work on that patient. Sometimes, I see caps or limits set.

Danielle McBride: [00:19:34] I mean, generally speaking, accounts receivable, patient credits, they all should be reviewed and wrapped up in your records. Your accounts receivable and credit should be cleaned up prior to a sale. You want to make sure that you don’t have long outstanding credits there. Maybe there are patients that you don’t even have in the practice any longer. A lot of practices are in the habit of not cleaning those up on an annual basis. So, clean those patient credits up because you’re going to have to pay them off. Generally, a buyer will ask for them to be paid off prior to closing. The DSOs, also, take that into account when they’re factoring in expenses to be paid and credits if they’re going to be assumed. You don’t want to be giving the buyer money that’s never going to come in.

Stuart Oberman: [00:20:26] Yeah. Well, it’s interesting, for 50 DSOs, you’ll have 50 ways of calculating all of this. That’s amazing.

Danielle McBride: [00:20:32] Yes.

Stuart Oberman: [00:20:33] Well, that is five great things to consider when you’re preparing your practice for sale. And all these are, obviously, a moving target. As the transition takes place, I mean, these are just moving targets and just constant adjustments. Well. Danielle, amazing, amazing stuff as always. Just, again, five topics that our doctors just have to consider on any transaction.

Stuart Oberman: [00:21:00] Also, honestly, this can be applied to any business listeners also on what they’re looking at, whether it’s just AR or cash flows, profitability. So, really, everything you’ve talked about today and in previous podcasts, I mean, any business owner really could use. So, amazing stuff.

Stuart Oberman: [00:21:19] Well, great job, Danielle. Thank you very much. And as always, amazing knowledge. And we really enjoyed having you on the podcast today. And I know our listeners did, so. Well, with that, we will call it a day as s we say. If you have any questions, please feel free to give us a call, 770-886-2400. Danielle, how do they get in touch with you if they want to send you an email or request some information?

Danielle McBride: [00:21:47] They can send me an email. They can call the corporate number. They can also send me an email at danielle@obermanlaw.com.

Stuart Oberman: [00:21:55] Good, good. Yeah, number’s 770-886-2400. My name is Stuart Oberman. It is Stuart@obermanlaw.com. Thank you for listening, and we appreciate it, and have a fantastic day.

 

About Dental Law Radio

Hosted by Stuart Oberman, a nationally recognized authority in dental law, Dental Law Radio covers legal, business, and other operating issues and topics of vital concern to dentists and dental practice owners. The show is produced by the North Fulton studio of Business RadioX® and can be found on all the major podcast apps. The complete show archive is here.

Stuart Oberman, Oberman Law Firm

Stuart Oberman
Stuart Oberman, host of “Dental Law Radio”

Stuart Oberman is the founder and President of Oberman Law Firm. Mr. Oberman graduated from Urbana University and received his law degree from John Marshall Law School. Mr. Oberman has been practicing law for over 25 years, and before going into private practice, Mr. Oberman was in-house counsel for a Fortune 500 Company. Mr. Oberman is widely regarded as the go-to attorney in the area of Dental Law, which includes DSO formation, corporate business structures, mergers and acquisitions, regulatory compliance, advertising regulations, HIPAA, Compliance, and employment law regulations that affect dental practices.

In addition, Mr. Oberman’s expertise in the health care industry includes advising clients in the complex regulatory landscape as it relates to telehealth and telemedicine, including compliance of corporate structures, third-party reimbursement, contract negotiations, technology, health care fraud and abuse law (Anti-Kickback Statute and the State Law), professional liability risk management, federal and state regulations.

As the long-term care industry evolves, Mr. Oberman has the knowledge and experience to guide clients in the long-term care sector with respect to corporate and regulatory matters, assisted living facilities, continuing care retirement communities (CCRCs). In addition, Mr. Oberman’s practice also focuses on health care facility acquisitions and other changes of ownership, as well as related licensure and Medicare/Medicaid certification matters, CCRC registrations, long-term care/skilled nursing facility management, operating agreements, assisted living licensure matters, and health care joint ventures.

In addition to his expertise in the health care industry, Mr. Oberman has a nationwide practice that focuses on all facets of contractual disputes, including corporate governance, fiduciary duty, trade secrets, unfair competition, covenants not to compete, trademark and copyright infringement, fraud, and deceptive trade practices, and other business-related matters. Mr. Oberman also represents clients throughout the United States in a wide range of practice areas, including mergers & acquisitions, partnership agreements, commercial real estate, entity formation, employment law, commercial leasing, intellectual property, and HIPAA/OSHA compliance.

Mr. Oberman is a national lecturer and has published articles in the U.S. and Canada.

LinkedIn

Oberman Law Firm

Oberman Law Firm has a long history of civic service, noted national, regional, and local clients, and stands among the Southeast’s eminent and fast-growing full-service law firms. Oberman Law Firm’s areas of practice include Business Planning, Commercial & Technology Transactions, Corporate, Employment & Labor, Estate Planning, Health Care, Intellectual Property, Litigation, Privacy & Data Security, and Real Estate.

By meeting their client’s goals and becoming a trusted partner and advocate for our clients, their attorneys are recognized as legal go-getters who provide value-added service. Their attorneys understand that in a rapidly changing legal market, clients have new expectations, constantly evolving choices, and operate in an environment of heightened reputational and commercial risk.

Oberman Law Firm’s strength is its ability to solve complex legal problems by collaborating across borders and practice areas.

Connect with Oberman Law Firm:

Company website | LinkedIn | Twitter

Tagged With: Danielle McBride, Dental Practice, dental practices, DSO, Oberman Law Firm, selling a dental practice, Selling a Practice, Stuart Oberman

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