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Although many who read the posts on Lawyerist are solo practitioners or work in very small firms, I suspect there are some who practice in larger law firms and visit the site to see what the solo/small firm life is like. If you are part of that group, this post is for you.
As a career coach, I’ve counseled my share of lawyers contemplating leaving their law firms and going out on their own. Of course, each of them had their own reasons why they wanted to leave, but they had one thing in common. All had carefully thought through the consequences of going solo, and their heads and hearts told them they should leave, yet each still could not quite find the courage to pull the trigger. Each had some fear that stopped them dead in their tracks. For every one of them, we would talk through their particular fears and afterward, not once, did they decide to stay at their firm. All left and are glad they did. In no particular order of importance, here is my list of the top ten fears that attorneys face when going solo. Each one will be debunked.
1. There’s more job security at my firm
Give me a break. Have you read the newspapers recently? There is no such thing as job security. Quite simply, the lawyers who have the most job security are those who have the most clients. The size of a firm or its revenues does not provide any job security. In fact, sometimes the larger firms provide less security since high overhead costs can and have doomed them in a down economy.
2. My clients will not follow me; they will be loyal to my firm
Oh, don’t be so pessimistic. Few question the conventional wisdom that clients (individuals, as well as businesses) hire lawyers, not law firms. If your relationships are strong with your clients, they will follow you when you go solo. Will they all? Probably not, but most will and if most will, why stay?
3. I cannot afford the start up costs of going solo
Yes you can. You should consider yourself lucky that you are in a profession where the start up costs are relatively speaking, so small. There a numerous articles on this site alone that should convince you that you can be up and running by spending only a few thousand dollars. Even if you have no confidence that you can do some of the stuff the articles say you need to do, then for a few thousand more, hire some consultants.
4. My former partners will hate me for the rest of my career
So what. Every time I heard this excuse, the next words out of their mouths were that they wanted to leave in order to get away from these same people. You have always thought they were jerks; why should you care how they feel towards you in the future?
5. Prospective clients want to know that there’s a firm behind me and not just me
See number 2 above. Law firms do not develop relationships; lawyers do. Continue to develop strong relationships and convince prospects that you are capable to do the work. Few, if any, will care that you are no longer part of a firm with lawyers doing lots of other things that the client could care less about.
6. I’ll miss being able to bounce ideas off my colleagues down the hall
You still know plenty of other colleagues at other firms who will be more than happy to talk to you on the phone or respond to an email. Join a listserv. Do some conventional and social networking.
7. I do not have the business sense to run my own firm
You probably do not. It is a skill set that few lawyers possess. That’s the bad news. The good news is that your competitors are just as clueless about managing their practices as you may be. They all somehow seem to make a nice living. You will, too.
8. I’ll miss the prestige
Yes, I am well aware that there is a certain cachet to be able to tell others, I work at the ABC Law Firm. But you just told me all of the reasons why you hate going to work there. Is the prestige really that important to you? You are still the same competent lawyer that your clients and colleagues know you to be.
9. If a big case walks in the door, I will not have the horsepower or the expertise to handle it
Yes you do. Have you ever heard of co-counseling matters and referral fee arrangements? If you are lucky enough to have that big case walk in the door, there are plenty of lawyers who will be more than happy to help you. Ditto for expertise.
10. I hate change and fear the unknown
Join the club. However, wouldn’t it be nice to proactively create a change in your career that on paper looks like a great idea? You cannot stop change. Sooner rather than later, there will be changes at your law firm creating many unknowns that you will have to react to with your partners. Wouldn’t you rather deal with change when you are in the driver’s seat?
Go for it and don’t look back. Life is too short. Although there are no guarantees, the chances are very good you will not regret it.
Roy Ginsburg is an attorney coach, focusing on career coaching, business development, and practice management. www.royginsburg.com
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{ 11 comments… read them below or add one }
Re #7, I highly recommend you read The E-Myth Attorney. I’m in the middle of it and, like the original E-Myth, it will help you learn how not to run a business. You’ll still lack a lot of business sense, but it’s much better to learn from others’ mistakes rather than your own.
Roy,
I think one more worry should make the list: “How will I get clients if Big Firm isn’t feeding them to me?” That’s where networking with the other small firm owners really pays off. We trade clients whenever we can with other small firms with complementary expertise. If I have a call for a worker’s comp case, I know who to call. If a personal injury lawyer has a client that needs to set up a trust for a settlement, they can call me. It’s great!
Jennifer Frantz
RE: 3. I cannot afford the start up costs of going solo
True, but before you hire a consultant, vet them. Especially if you’re considering hiring an Internet consultant.
Going solo is very different than just working for someone else. I often recommend partnering… yes, partnering has its own set of challenges but one of the benefits is that some of the expenses and tasks of “Running” the business can be shared.
I also think its a good idea to inquire with your bar association.
They tend to invite marketing professionals to speak and other attorneys in the room create good discussion and networking opportunities.
As one just about to take the plunge, I agree with all of this to some extent.
@lasheita RE: “inquire with your bar association.”
I agree with regard to good discussion and networking opportunities with other attorneys, but as to marketing professionals, I’ve seen presenters at bar events range from bad to borderline unscrupulous.
Don’t assume that because the bar “endorses” someone means that they are the best fit for you. They might merely be the biggest sponsor…
Thank you for writing this. It seems like ever since the recession began every legal blog has taken such a pessimistic tone about accomplishing anything what-so-ever. I’m planning to open my own soon, and this just made my day.
My big concern is lack of savings to survive the first year, if I don’t get the revenue needed to pay the business and personal bills of the family. I have some clients that I hope would follow me, but not enough to pay the bills.
It would take some real effort not to get any clients for a whole year. You may very well have a few lean months, but if you go into it with a marketing plan, you should be fine.
That said, most people going solo should cut back on expenses as much as possible. If you have been living on a big firm salary and making a car payment, consider a used Honda Civic, instead. If you do really well, you can just get a newer, fancier car once your practice takes off.
I have an “emergency” budget setup that outlines what expenses can be cut, but its not much to be cut. Most of my expense is mortgage, student loans, and food for the family (and not counting health care additional expenses.) That being said, it seems I’d only need approximately 50 paid hours per month to net enough to pay personal living expenses. Thats about what I bill per week right now (though mostly for partner’s clients). Do most people wait until you have 3-6 + months cash reserves?
I think it’s good to build up some reserves if you can, but not essential, if you have a good plan.
My financial advisor has good advice on this. Whenever you aren’t sure how something will affect your finances, practice it. You know your income will go down in the short term, so cut it now, while you are still pulling in a salary. Send everything into a savings account while you figure out if you can weather the change. Run your experiment for a few months.
You’ll get two benefits: a lot of savings, and a good picture of what you are in for.