Summary
In this episode, Zinda Law Group CEO and founder, Jack Zinda talks about case expenses and the best practices to manage them effectively.
Discussed in this Episode:
What do we use case expenses for?
How much can we spend?
How to budget a case
Cash flow is critical to success
How often are you successful?
What Do We Use Case Expenses for?
Create a list of things that are valid case expenses and things that aren’t. Medical records, bills, depositions, videos and photos, are basic requirements for any case and should be automatically included in your list. This list should serve as the document for your attorneys to understand what can and can’t be included for case expenses. Sometimes that line might be narrow, so be sure to be detailed when putting this list together.
How Much Can We Spend?
The first step is to establish the percentage of potential case earnings that can be allowed to spend on case expenses. For Zinda Law Group, that number is ten percent. Some cases will require more, but having a consistent number goes a long way to make sure that if the case doesn’t receive the anticipated verdict, the financial loss is minimized.
How to Budget a Case
Look at previous costs for services to build your budget, even if a guess is as good as you can do. You don’t need to be perfect, but you need to have some rough numbers before building a budget. Oftentimes there will be ways to decrease that budget just by thinking ahead and using a little common sense.
Cash Flow is Critical to Success
If you don’t have cash on hand, you’ll never be able to pay for the expenses as they come up. You may have to be creative if you’re just starting out, but a business loan, loan from a family member or even a credit card might be necessary at the beginning.
How Often Are You Successful?
No one is going to win 100% of their cases. You must build your budgets assuming that some of your cases will not have the desired result.
You can reach Jack at:
jack@zindalaw.com
512-246-2224