What’s Holding You Back from Going Solo?

really
Sep 9, 2009 7:21 PM CST

Having a $1500 a month student loan payment before I have even bought a loaf of bread doesn’t help.

The solo market is SATURATED!

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Jennifer
Sep 10, 2009 6:15 AM CST

could it be that most solos are near bankruptcy and only do it because 1) they cannot get a job as a lawyer because the supply of lawyers far exceeds the demand for lawyers and 2) the demand for legal services by paying clients is far less than the supply of new starving solos cranked out by the almost 200 diploma mill law schools.

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Esq.
Sep 10, 2009 10:35 AM CST

The more I can learn a complex area of the law on someone else’s dime, the more I can charge if I decide to hang out a shingle in the future.

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Steven
Sep 10, 2009 12:27 PM CST

Key is having a niche practice.  While Susan Liebel is a little overly optimistic in her blog, going solo can be a great opportunity if you have the right type of practice.

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PubliusEsq
Sep 10, 2009 3:06 PM CST

Another misleading article from the worthless ABA journal.  Instead of deftly probing for the systematic reasons as to why so many solos’ fail, and why it is so difficult to open a solo practice in an environment completely flooded with superfluous lawyers, it poses the archaic and neo-conservative question of what is blocking the individual from maximizing their professional dreams in the unlimited land of never ending plenty.

Its an easy question to answer, stupid.  There are so many unemployed and underemployed debt slave lawyers that it is extremely risky to open a solo practice because there are already too many solos’ charging bargain basement level fees just to survive.

The answer to the question does not lie with some feel good cheerleader dispensing common sense advice.  It is a matter of math.  Far too much supply for the demand.

The answer is:

1. the ABA should stop accrediting law schools and produce real statistics reagrding legal under and unemployment;

2.  the government should limit the number of loans it backstops for law school to a level commensurate to the real supply and demand of the profession, not the artificial demand created by the overabundance of law school and seats.  These loans should be funneled into math, science and tech educations which will strengthen the economy for the future, not drain it in the present by wasting resources through directing too many loans to individuals that will not be able to repay them and never use their education for its intended purpose.

3.  student loans should be dischargeable in bankruptcy, thereby forcing lenders to be more prudent in their lending practices.

The above solutions would equalize the supply and demand curve for legal employment, avail solos’ with opportunities to practice and stay in practice, retore the gatekeeper function of lawyers, which is diluted by cuttroat job competition, end the growing number of miserable debt slave lawyers without job prospects, reduce the government’s financial burden of backing student loans that are defaulted upon and reduce the unethical conduct and frivolous lawsuits that ruthless job competition promotes.

The ABA journal is as relevant today to the majority of working lawyers as Pravda must have been to Soviet citizens in 1989.

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Susan Cartier Liebel
Sep 10, 2009 7:00 PM CST

I’m slightly surprised I’m being labeled as a cheerleader for solo practice.  Anyone who knows anything about me knows my passion for the solo option started more than 17 years ago when my school offered nothing except derision for my wanting to open a practice out of law school. There were no resources, no map, no mentors, nothing.  And yet I wasn’t alone in my desire to go solo and build a business and be an entrepreneur.  There was a whole ‘silent’ minority planning to do the same.  It just wasn’t prudent to say anything.

This led to my opening a practice with two others law grads with just a couple of nickels, creativity and some hutspah and doing it well by figuring out all the issues addressed above in the comments.

Solo Practice University didn’t just materialize out of thin air after bloody Thursday as an opportunity to capitalize upon unemployed lawyers’ distress.  It was in the making in theory for those 17 years and in earnest more than two years ago when Big Law associates were getting bid up to $200,000 for annual salaries.  The real estate market was rich and partners were bragging about making more than $1M. The fact we opened five months ago was serendipity.

Going solo is not for everyone.  And it is hard work and commitment.  But talk to a solo who has made it through the dips and you’ll will find a lawyer who would practice no other way.

Student loans are negotiable and there are programs in place to reduce your monthly debt service but it takes a little shoe leather to find the right programs for you.

Solo Practice University didn’t open to entice those who want to work for others to go solo.  It is for those who know they want to do this but need a solid resource and environment in which to learn how. There is simply no other resource like this available and that’s why it was created.  It’s what I wish I had when I hung a shingle right out of law school.  So, instead of trying to tell law schools they should do it which they never would, I just did it myself.

Our students are not lonely, depressed, unemployed miserable souls.  They are new grads and current solos who want to learn how to do it better.  They could be changing their practice area because the one they had hung their hat on is no longer lucrative.  They want to learn how to lower their overhead, what services, products to invest in to streamline their practices.  Talk about a scam out there.  You could spend thousands in mistakes when it comes to set up and there are plenty of lousy products.  We’re trying to help solos avoid those mistakes.

#11 Nick has it right.  With planning and low overhead he is exactly correct with his income…not necessarily the numbers because that is highly individual,  but the percentage increase from year to year.  By year three you will be close to three times your salary of the first year if you are working smart.

This isn’t rocket science. You don’t need the whole pie to survive and make a respectable living.  You just need a slice that will satiate you.  Claiming saturation and no demand is using (faulty) statistics to defeat yourself.  In every crisis there is opportunity.  If that makes me a cheerleader, I’ll gladly shake my pom poms.

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MLB
Sep 11, 2009 4:07 AM CST

Fear

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Brian K
Sep 11, 2009 7:10 AM CST

I went solo two years ago after 25 years of firm practice.  It works great, but only becauase (1)  While in the firm, I developed my own client base in an identifiable market; (2) my client base was not shared by the firm, or even valued by it; and (3)  I work harder now than I have ever worked before, but it wears me down much less.  I would never counsel a young lawyer without an alternative income source tor a really good book of business to go solo, not just because of the financial issues, but becuase ofd the learning curve issues identified by several people already.  As a solo, though, you can network with others, who usually are willing to advise, or even hire others as contract lawyers to handle things you don’t feel comfortable with.  A solo practice is not just a miniature Big Firm, it is completely its own creature—and a creature of its owner alone.

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John Davidson
Sep 11, 2009 7:53 AM CST

Absolutely nothing stopped me.  I just did it and after almost 4 years I’m still here.  I think having an MBA helped as well as being over 50 when I started. 

Sometimes ignorance is possibilities.  If you don’t know you can’t then you probably can.

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Leddie
Sep 11, 2009 8:03 AM CST

No money to start.  How does anyone start a practice out of lawschool?  Take on more debt?  How do you learn the mechanics of running a practice?  Bank accounts?  credit cards?  what to charge?  flat fee or not?  when can you afford to hire an assistant/secretary?  Is working from home really an option?  what about “virtual offices”?

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greg
Sep 11, 2009 8:34 AM CST

Going solo is tough - I know, I’ve done it. It requires constant vigilance, and a lot - LOT - of work. I did it straight out of law school, and wouldn’t recommend it. I also did it on a shoestring, and wouldn’t recommend that, either.

If you go solo, have about $25,000 in savings. You’ll need it, especially if you don’t have a book of business. You’ll need to advertise, advertise, advertise. Then you’ll need to network. And keep doing it, even when you’re swamped, because when you don’t the work dries up.

As one of my friends said, “I’m self-employed. That means I can work an 90 hours a week I choose.” He wasn’t kidding.

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KJS
Sep 11, 2009 9:28 AM CST

I have a great job for the gov’t, but still feel the pull to go solo every now and then.  I don’t because it would mean too many sacrifices.  In my life now, my family (incl two young kids) has a nice house, little farm, enough $ to do the things we want (not enough to go rich-people crazy on, but I don’t have to sweat the cost if my kids want to check out the latest Disney On Ice show).

Comfortable.  But, I’m the primary earner.  I make 2/3 of the family income.  So if I went solo, I would have to reliably replace my income at nearly the same level.  Or, we’d have to sell the farm & move the family to a much lower cost-of-living area, where we would have to buy a much smaller house and forego a lot of creature comforts.

I’m not willing to do the latter, and have no reason to expect that I’d be able to achieve the former, so I continue to commute and sacrifice the chance to “be my own boss.” 

I hope to be able to give my kids the financial safety net to take a chance, try crazy things.  I want them to have the luxury of being able to try & fail, instead of having to avoid failure (and the chance for great success!) at all costs.  In short, I hope they learn to do as I wish I could, not as I do.

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PubliusEsq
Sep 11, 2009 10:03 AM CST

The 40,000 new law grads each year entering into the teeth of a ferocious employment market contraction should easily be able to hit the ground running in their new solo practices, especially if they are real go getters,  The same for the thousands of newly unemployed lawyers, considering the prospects for economic expansion in the foreseeable future.  And its not like the legal employment and solo market was ruthlessly competitive before the economic collapse.  Is there any problem with my basic math skills here?

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Kevin
Sep 11, 2009 10:25 AM CST

Everybody is talking about why not to go solo.  I disagree.  I started my own practice straight out of law school.  I have had no trouble finding clients, I just run an ad in the local newspaper.  I have gotten some good cases; I have been able to do contract work for other lawyers to keep a steady cash flow and I have earned enough money in the few months I have been in practice to pay all my bills (both personal and business expenses) in full on time and put some away in savings.  Of course, if you work for a firm, you will earn more money in the first few years than I will, but there is something to be said for being your own boss.  I don’t have anybody telling me what to do.  I don’t have any billable hour requirements.  If I want to take off on a Friday afternoon and go play golf, I can do that.  So, the reduced income is worth the work-life balance to me. 

Also, since my earning potential is unlimited, I expect that after three or four years, I will be making substantially more money in my own practice than attorneys working for small or medium sized law firms. 

The KEY is good planning.  Not anybody can just go out and rent an office and think they will make it.  You MUST have a good business plan.  In my case, I was able to rent an office from an established attorney here in town who is training me.  I get referrals from the local bar association’s pro bono legal assistance group, who send me fee generating work from people who for whatever reason do not qualify for their legal assistance. 

I also market myself like crazy.  As I stated, I run an ad in the local newspaper and yellow pages.  I joined the local Rotary club.  I hand out my card to everybody I meet.

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Pogo
Sep 11, 2009 11:36 AM CST

I went solo straight out of law school because no one was hiring “old rebel” law students 15 years ago.  God forbid my tattoos showed or I wore my motorcycle leathers to a job or I used wheelchair.  I picked up contracts to do criminal defense, Indian law practice on tribal nations and whatever else I could find. After four years with a successful practice, I accepted a position as a tribal judge.  Four years later I went to work for the state government. Almost four years of that drove me nuts between the bureaucracy and the overwhelming case load. I went back to being a sole practitioner and limited my practice to family law with an emphasis in Indian Law issues and military issues in family law.
I didn’t have the luxury of getting student loans during law school and had to work my way through. No debt there because I was raised not to take on debt. (Depression Era parents.)  Have I struggled? Yes. But I learned so much more than I ever could have at a large law firm.  Yes, you have to be your own paralegal, secretary and receptionist in the beginning. If you can’t handle that then you are at a true disadvantage. Hopefully you will learn just how hard those positions are so that you really appreciate what your staff can do for you.  You will learn how to adequately bill for your services and how to keep expenses down.  You will learn from failures and triumphs. You will find mentors among other sole practitioners.  But you alone will control your own destiny, not some one else who does not have your best interests at the core of their being.
As for me, I can fly my 33 year old tattoos in my office and if clients can’t handle that I don’t need them. I can hang my Viet Nam artwork on the walls and have my motorcyle and race car collectibles on the shelves.  And I don’t have to worry about some boss telling me what is and is not appropriate behavior, atmosphere, etc. in the “legal profession”.  Legal rebel?  I was a rebel long before I hit the legal profession.  And I don’t plan on changing.

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Adam
Sep 11, 2009 12:12 PM CST

The single biggest thing is state regulation of lawyers.  As a DC lawyer living in Maryland, I’m considering opening a consulting firm in which I could offer some legal services.  But do I set the consulting business up in DC or just get shared office space there?  I know I need a moonlighting malpractice policy on my DC license but the underwriting is a headache.  And I’m not sure whether I can use an IOLTA trust account to take retainers on my consulting work.  If I lived in DC or took the attorneys’ exam in Maryland, I would certainly eliminate some of the headaches but neither is a possibility in the short term.  In the end, I will choose a position on the status of the law and its effect on me, document it, and start my practice.  All of this is just slowing me down.

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JN
Sep 11, 2009 4:52 PM CST

If you are psychologically meant to go solo, you will.  If not, you might still do it, but you shouldn’t.  I have been solo for 12 years and would not have it any other way.

As an example, I worked for 6 years with an attorney who should NEVER be a solo.  Before anything he did went out the door, I had to review it, and vice versa.  I did not want anything I did double-checked by someone else if I was confident that I had it right.  He was a great attorney and is still a good friend, but our personalities were opposite.

I agree with those who advise working for a firm first to gain experience and background in the law before going solo.  For me, 6 years was right; for others it might be more or less. 

I disagree with those who say that solos can not handle sophisticated matters and must limit themselves to “municipal, traffic tickets, etc.”  I represent small and large businesses (including Fortune 500 companies), as well as individuals.  It is all about having the expertise (and the confidence of your client) to handle a specific case.

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Carolyn Elefant
Sep 11, 2009 9:23 PM CST

#32, Adam - be very careful about Maryland rules.  Maryland is very strict about UPL, and if you are not licensed in Maryland, I would not advise that you take a chance with a Maryland office.  [SEE MD Opinion 2005-07 (2/17/05)
A group of lawyers who lease office space in Maryland but are not licensed to previous hitpracticenext hit in Maryland are engaging in the previous hitunauthorizednext hit previous hitpracticenext hit of law, even though their previous hitpracticenext hit is limited to federal law and they prominently note on their letterhead, business cards, and office door that they are not licensed in Maryland. Opinions 94-13, 99-20, 99-8, 2002-19; Rules 5.5, 7.1, 7.5, 8.5.]
I practiced in DC for 8 years before I moved to a home office in Maryland, but until I took the practitioners’ exam, I maintained a virtual address in DC so that I would not be viewed as running a practice in Maryland.  I know that you are focused on some kind of consulting business, but unless it is 100 % non-legal related, then you are best off getting a VO in DC if you don’t want to take the practitioners’ exam.  As for malpractice, I recommend CNA - they offer very affordable part time plans—around $200-$600 annually—for many practice areas and in general, I’ve found their rates to be 20-30 percent less than many of the bar’s preferred providers.  For IOLTA, take a look at the DC rules (you may not need IOLTA if you aren’t providing legal services) and also contact Dan Mills, the DC Bar practice manager who was just profiled in this month’s issue of the Bar magazine (the DC bar also offers monthly starting a law firm boot camps; I think they are free or very cheap)

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Susan Cartier Liebel
Sep 12, 2009 8:34 AM CST

Publius, Esq.,

The issues you present in your post are not being ignored or rejected.  What you are stating is true.  The law schools have failed miserably in their jobs because their agendas have been quite different then their paying customers.  No one is arguing with you on this.  You are looking for the argument to be validation.  Consider yourself validated.  Your points are sound. The profession is in crisis.

However, it doesn’t help the individual who is miserable to simply say, ‘yes, I understand’ and not offer an opportunity to do something about it.  My goal is not to fix decades of broken institutions or corrupt agendas or supply and demand issues or tell the ABA not to accredit any more law schools.

My goal is to help those who want to find a way to make their educations work for them in the environment as it exists today.  Once they’ve learned how to feed themselves (if they want to go solo) they’ll have the strength to take on these challenges and possibly make a difference.

I get the reality, trust me.  I’ve been railing against this for 17 years.  It was finally time for me to do something instead of just spitting into the wind and that’s why SPU exists. This is my contribution…but it moves people forward.

There is a whole cultural and economic shift happening in this world far larger than the legal profession.  Overall, everyone’s lives are going to change.  What was, promises made, expectations we’ve had…we are all going to have to rewrite our scripts in every aspect of our lives.  Our careers will be no different.  Those who recognize it now and get a jumpstart will be better for it.

Realism?  I’m swimming in it..just choosing not to drown in it.

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Carolyn Elefant
Sep 12, 2009 10:02 AM CST

Poster 37 - I am not sure how I (Poster 36) or my colleague Lisa Solomon (Poster 35) are operating in a vacuum, at least based on our comments here.  We responded directly to questions and issues that had been raised.  In Lisa’s case, she offered resources and a practical solution to fears of malpractice (i.e., - getting malpractice insurance).  In my response, I offered a detailed answer to #32 Adam’s question, even citing specific Maryland Ethics opinion regarding his question. 

As for the broader question of why I haven’t addressed the pain of those who haven’t been able to find jobs, if you read the mission of MyShingle or my site, you would see that I do.  One reason why I began to advocate for solo practice (and it is different from Susan’s which is fine because solos are not monolithic) is because I witnessed many talented lawyers leaving the law either because they couldn’t find jobs, wanted to spend time with family or felt that they were sleepwalking through their jobs.  Seeing this talent drain from the profession as well as the pervasive dis-satisfaction seemed like a terrible waste and as a result, my goal has been to try to convince others to consider solo practice as an option and to make it a viable choice for those who seek to stay in the law. 
Unfortunately, my sympathy isn’t going to help contract lawyers find permanent employment.  And to be honest, I have never taken law schools to task for “failure to disclose” because I’m not sure how much of a difference it will make.  When I applied to law school 20 years ago, I wanted to get a job (I did not share Susan’s entrepreneurial spirit back then).  So I only applied to a handful of top tier schools because I knew that if I went anywhere lower, I was less likely to find a job and I would be wasting my money.  I was not a particularly sophisticated customer back then but if I was able to do a rudimentary ROI calculation, I’m not sure why it eluded so many others unless they are not all being completely honest. 

But even assume that many were duped by misleading statistics in the past.  Now, the is state of the legal job market is well publicized through constant coverage in the legal press and even mainstream media like NYT.  Yet even so, law school applications are INCREASING!!! That is completely insane. 

For the sake of argument, I’ll concede the as many as 50 percent of past students were mislead by false statistics.  However, I also think that many students are falsely optimistic and would have gone to law school even in the face of discouraging employment stats because they would figure “Well, I’m different” or “I’ll be one of those who gets a job.”  That’s what I find most ironic about the criticism aimed at the so-called “cheerleaders” - we are accused of not facing reality, when in fact, probably half of the people in their current situation (not all, but a good half) failed to consider reality when they applied to law school.

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MikeG
Sep 12, 2009 12:44 PM CST

I worked for a solo all throughout law school, and just graduated in 2008.  I knew since then that I wanted to take my practice in that direction, but uncertainty and debt kept me looking for more stable work.  That work has not materialized in the form of job postings or interviews for young lawyers, so I finally decided that rather than sitting on the couch for another year, I was going to start doing something with my time.  I’ve also been watching all of my friends get axed from their Big Law, and not so big law, jobs, so job security clearly does not exist these days for young lawyers.  Rather than jump in full steam, I’ve decided to wade in a bit while still keeping my options open for other positions.  Within a month, I already had 7 clients of various matters.

I’ve always considered myself more of a businessperson than a lawyer, and that’s what excites me about having my own practice.  I also tend to get bored with certain subjects real easily, so the constantly changing nature of my case load should keep me interested.  It’s definitely been enjoyable researching all these new issues because I have all the time in the world right now.  I also consider myself an excellent networker.  I sign up for every free or cheap CLE, informational session, and happy hour at the local bar association so that I can learn new material and meet new people.  There’s also a great volunteer organization here that has cases from every possible practice area and provides mentors.  Through them, I picked up a case pending trial in federal court, and I’ve had a mentor guiding me through.  Finally, I do contract work for other solos I’ve met to supplement my income and time, while also allowing them to teach me new stuff, and, since I’ve maintained a good relationship with people from law school, so they refer people to me that can’t afford the rates of their big firms.  My friends in big firms aren’t getting close to this type of experience.

Do I worry about the money?  Every second of every day.  But the reality is that the legal profession has gone through a radical change in the past year, and rather than sitting around broke and gaining no experience, I’ve decided to try my lot at going solo and see how it shakes out.  I just try to be ever mindful of my expenses and constantly try to network and learn more.  I think confidence is the key, and I’m confident that while it won’t be easy, I can make it work.

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brian Michaels
Sep 13, 2009 2:28 PM CST

Ditto to what #11 said. It doesn’t take a failed economy and job loss to be the right time to go solo. Were not all chronically unemployed. I left a stable government job 7 years because I walled out and my learning curve was over. I went solo, with some savings.

I had the same experience as #11. I dont take areas high in malpractice, charge flat fees, and my income and freedom has grown year after year. Now…I don’t have to worry about job loss and my income, while not as good as it was two years is still enough to get me by.

I went to law school so I could be my own boss. No time like the present.

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JME
Sep 18, 2009 11:08 AM CST

I graduated in 2008 at age 54.  Nobody was going to hire me and I knew it.  I found a small town in need of an attorney.  I had no money, but got $5000 borrowed from a family member to get the office open and basic needs.  Professor channeled a great client to me,  got walk-ins, a couple at first, then a few more.  Built a website, paid to get listed at Lawyers.com and Nolo, other search sites, and the jobs are slowly coming in.  Nearly one year complete now.  No debt to the firm, paying my bills monthly.  No savings yet, some stuff in the trust account I haven’t billed yet, and yes, I do a lot of petty work, but it pays, my clients like me, and they send more to me.  It helps that my parents are still alive and promised I would never be homeless, so as I build my practice, they keep shelter over my head.  You can start a practice with nothing, but it helps to have strong family support, and professors who are willing to sit down with you, even during the school year.  And, the Dean of my law school is the best in his league.

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