by Elana Konstant
Interim Career Counselor
Are you self-motivated and disciplined? Do you want constant direct client contact? Can you run a successful business? If so, then perhaps you would appreciate the challenges and rewards of a solo practice. Many recent graduates are becoming solo practitioners to gain extensive legal experience while retaining control of their schedules and case load. Given the current job crunch, starting a solo practice may be an effective way to make the most of your legal education, your technological abilities and your drive to work hard. However, it is important to realize that functioning as the partner, associate, and office assistant requires incredible confidence, flexibility and ambition.
To help you decide if this career path is right for you, either now or at a later point in your professional life, here are ten things to consider when launching a solo practice:
- Know Yourself - talk to mentors, supervisors, colleagues and friends about the prospect of creating your own firm in your field of interest. Perform self-assessment techniques to determine whether you would be right in the role of rainmaker / administrator / accountant / attorney.
- Due Diligence - conducting informational interviews with successful solo practitioners may be the most important action you can take to learn about starting your own practice. Many bar associations have support systems for those in solo practice so use those networking resources.
- Business Plan and Budget - most lawyers need a crash course in law firm business management to help determine startup costs, capital raising, marketing plans, cash flow projections and fee arrangements. There are a number of CLEs or bar association events that address this topic. By interning or volunteering for a solo attorney or small practice, you can learn business management from the inside.
- Financial Considerations - ideally, a person starting a solo practice will be in a position financially to support him/herself for at least the first 6 months. Developing a client base, generating income and earning a profit can take longer than expected so be prepared for fluctuations.
- Type of Business Entity - when establishing your own practice, there are tax and liability implications to examine and consulting with a CPA is advised. Accounting advice will also be helpful regarding financial reporting for income statements, balance sheets, tax preparation and personnel hiring.
- Insurance Coverage - when launching a solo practice, you likely will need professional liability, business/property and liability coverage, as well potentially worker's compensation. Health insurance costs for yourself and other employees should also be considered.
- Technological Needs - client documentation, research, and production can be primarily or entirely electronic, allowing for great flexibility and minimized risk. Although there is less overhead for solo practitioners with virtual offices, specific software may be necessary, including programs for case management, calendaring and docketing, billing and document assembly.
- Marketing - with the advent of Twitter, LinkedIn, Facebook, blogs and other social networks, getting the word out about your business has never been easier. However, differentiating yourself from others is imperative. Getting involved in pro bono activities, joining trade and legal organizations, being listed on various lawyer referral service panels allows you to meet potential clients while simultaneously developing your name recognition.
- Work/Life Balance - when you are entirely responsible for all business development, there is a great incentive to always keep working so that you always keep earning. However, this can lead to extreme fatigue and burnout so you want to be sure to pay attention to cues from your body, your mind and your loved ones.
- Always Be Learning - without the built-in supervision of a firm or partnership, the onus is on you to stay motivated to learn about new legal developments and to share that knowledge with your clients.
RESOURCES
Books, Publications and Videos
How to Start & Build a Law Practice (5th Ed.), by Jay G. Foonberg (available at LCS)
Solo by Choice: How to Be the Lawyer You Always Wanted to Be, by C. Elefant
Opening a Law Office: A Handbook for Starting Your Own Business, CA Young Lawyers Association and the CEB
The California Guide to Opening and Managing a Law Office, CA State Bar
GP Solo: ABA General Practice, Solo & Small Firm Division
Start Your Own Law Practice: Your Step-by-Step Guide to Success, by Laura P. Valtorta (available for check-out at LCS)
On The Web
www.myshingle.com
www.americanbar.org
www.sba.gov
www.lowbono.org
http://lp.findlaw.com/law-practice-management
http://weilandco.com/manage.html
www.sfbar.org
