Solo but Not Alone

• Publication year: 2017
• Author: By Cynthia Thomas

Solo But Not Alone

By Cynthia Thomas

Cynthia Thomas is the owner of PLMC & Associates and the Operations Manager at Nolan Heimann, LLP. After 10 years of managing small and midsize firms in California, she started a law firm management consulting company providing best practices in human resources and staffing. She is the associate editor of ABA Law Practice Magazine, Chair Person of the ABA Law Practice Division Lawyer Leadership & Management Committee.

According to the American Bar Association's 2016 Lawyer Demographics report¹, most attorneys in private practice are employed by small law firms, which are defined as those with fewer than twenty lawyers. Moreover, almost half of all lawyers in private practice are solo practitioners. This number will most likely continue to rise with the growing number of law students burdened with debt and the harsh reality of not receiving lucrative job offers upon graduation.

Often times when a lawyer decides to open his or her own firm, the excitement of getting that first client and generating income outweighs the importance of having systems, policies, and procedures in place. However, practicing law as a solo does not mean you are without colleagues or guidance. Whether you are a veteran solo attorney or newly minted solo embarking upon this journey, know that others came before you and learned valuable lessons to be shared, and many others are doing exactly what you are now. From the wisdom of these guides, here are some tips on starting and running a successful solo or small firm practice.

ESTABLISH YOUR FIRM AS A BUSINESS.

Before you hang up your shingle or create a website, much time and energy must be dedicated on establishing your law practice as an entity. Before you open your doors, decide how you are going to structure your business. Are you going to be a law corporation (subject to registration requirements with the State Bar)? A sole proprietorship? There are many articles written on choosing the best entity for your practice.

GIVE SERIOUS THOUGHT TO THE FIRST FEW MONTHS OF LIFE AS A SMALL BUSINESS OWNER.

A solo or small firm lawyer must recognize that running a law firm is akin to running a corporate business. However, unlike business school, traditionally, law schools prepare students on how to practice law and not to become business owners or entrepreneurs. Therefore, lawyers who decide to be entrepreneurs and open their own firm often overestimate the amount of income they will bring in immediately, and underestimate the amount of work required to bring in business, handle routine administrative matters, and keep the business running. Therefore, when opening a solo practice or joining forces with a colleague to form a small firm, realistic expectations about cash flow and administrative needs must be established. This is particularly true when looking at the first few months of life as a solo when cash flow is...