Solos/Small Firms
More Lawyers Form Their Own Firms, Despite the Financial Sacrifice
Posted May 22, 2009 7:32 AM CST
By Debra Cassens Weiss
Evidence is mounting that more lawyers are striking out on their own, even if it means lower pay and higher risk.
Martindale-Hubbell listings are one indication of the trend. In the last 11 months, the number of new law firms it tracked rose 2.7 percent, the American Lawyer reports. In the year before, the publication saw a much smaller increase in new law firms of less than half of 1 percent.
Legal consultant Edward Poll of Venice, Calif., provides another bit of evidence. He told the American Lawyer that, in the last year, he has seen triple the usual number of inquiries from lawyers thinking about going out on their own.
The publication spoke to lawyers who are part of the trend. Omair Farooqui was an intellectual property associate at Manatt, Phelps & Phillips when he was laid off last June. Now he handles trademark licensing and patent prosecution at Ellahie & Farooqui in San Jose. "Now I have marketing and administrative responsibilities, and the pay is about a third of what I made before," he told the American Lawyer.
Frederick Jekel and Paul Doolittle have also taken a financial hit. They left plaintiffs law firm Motley Rice in September, and used personal savings along with bank loans to finance nearly $200,000 in annual costs for the new firm, Jekel-Doolittle, the story says.
- How B of A’s GC Got Fired: Leave Now, and Leave Your BlackBerry Behind
- Schools Ranked by 'Super Lawyers' Produced
- Law Firm Price Wars Break Out as Some Try ‘Loss Leader’ Bids for Work
- Five Questions for Law Firms Abandoning Lockstep Compensation
- Judge Jails 2 Attorneys for Contempt in 4 Days
- Court Deputy Ordered to Apologize or Face Jail After Taking Lawyer's Paperwork
- Skadden Jumps on the Bonus Bandwagon
- ABA Executive Director Resigns
- Nasty Attitude to Co-Worker, Naughty Word in E-Mail Cost 2 Their Jobs
- NU Law Dean Adjusts 'Super Lawyers' Rankings to Reflect Law School Size
Should Supreme Court Justices Be Able to Review News Accounts Before Publication?
Comments
Steven
May 22, 2009 8:15 AM CST
It does not cost $200,000 per year to start a lawfirm. The only way you’d spend that kind of money is by trying to immitate the lifestyle you had a big firm. In my city you can rent office space for $600 a month (or even less). Other than that you pay for malpractice insurance, and supplies. Now if you have to add a receptionist, paralegal, and a bunch of other staffers you can run up a bill. Personally I like to hire high school students to work in my office answering the phone and performing simple tasks. Generally I choose the ones who are interested in a legal career. They’re grateful for the experience and the letter of reccomendation I write for them, while I get an enthusiastic and competent receptionist / assistant at $10 an hour. Many of my clients have commented on the “service” i’m providing to these young people. It truly is a rewarding win-win experience.
Flag this comment
DR
May 22, 2009 9:53 AM CST
Steven @ No. 1: thank you so much for your response. I have been seriously thinking about going solo for some time now. I live in a major metropolitan area, so rents and the like are going to run a little higher than $600 a month, but my biggest concern at the outset would be income. I think what I’m looking for, however, is a deeper connection to the community and I just don’t feel that right now. I work for a large firm and enjoy my work, but at the end of the day, I feel as though I have accomplished very little.
Flag this comment
Steven
May 22, 2009 10:23 AM CST
Check out virtural offices. In a major metropolitian area were rents are still excessively high they’re a steal. I have a friend from college who recently went solo in chicago, and he pays very little for an address on Michigan Ave, a receptionist, and use of offices / conference rooms for meeting clients for X hours a month. He does 85 to 90% of his work from home. If you like your job at big law however, I wouldn’t necessarily take the plunge without some careful soul searching. I wish you the best and hope everything works out how you want it to.
Flag this comment
DR
May 22, 2009 11:49 AM CST
Thanks Steven. I actually have worked with some attorneys who utilize virtual offices. It seems to work for them and it is certainly something to consider.
You’re right, taking the big plunge will require a lot more thought. One thing I enjoy right now is the fact that I can practice in one area exclusively and that provides a lot of satisfaction. My guess is that by going solo, one would need to become more of a generalist, which is not a negative thing, but it would be a whole new learning curve.
I like to hear stories about people who have successfully done this though. It is a positive thing in a profession that seems so riddled with negativity.
Flag this comment
William Stanley Daniel
May 22, 2009 2:30 PM CST
No amount of Big Law salary, perks, benefits,
can equal needing to ask your Boss a very
important question, and all you have to do is go
look at yourself in the mirror as a solo practitioner,ask yourself and answer yourself!
Flag this comment
B. McLeod
May 23, 2009 7:52 AM CST
Fly the plane. Then, you can actually see and influence where you are going. Don’t be the passenger in the last coach seat, by the toilet. If the effort crashes, at least it will be because you crashed it, not because somebody else crashed it without even telling you there was a problem.
Flag this comment
Add a Comment
We welcome your comments, but please adhere to our comment policy.
Commenting has expired on this post.