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Kathryn
Keys to a successful - and affordable - solo practice.
I've been on my own for about 9 months and my practice is going gang busters. It operates on a shoe string so I haven't spent a dime on advertising, office space, or expensive networking groups. While being a solo practitioner isn't for everyone, I believe most of my success is related to the following things:
1. GOOD CLIENT RELATIONS. Much of my new business comes from referrals from existing clients. I don't abuse my hourly rate by treating my clients like walking wallets or charging outrageous retainers. You have a quick question that will take me 90 seconds to answer? I'm not going to charge you for my time. And you'll always know when my clock is going to start ticking.
2. A GOOD REPUTATION AMONG MY COLLEAGUES. Fellow attorneys send me a LOT of business because they know I am good at what I do. There are other attorneys who practice in my area but I am the one who gets the referrals. There's a reason for that.
3. I KNOW WHAT I KNOW - AND WHAT I DON'T KNOW. I don't try to be a jack of all trades in my practice. So I've gathered a network of very good attorneys to whom I can refer cases that are outside my practice area and know they will be handled well. They have also co-counseled with me several times. Plus, when there is overlap with my area of practice and other specialties, I have people I can turn to with questions and concerns.
4. PRIORITIZED SPENDING - I spend money on business cards, nice looking (but inexpensive) stationary, office supplies, a bookkeeping program, a P.O. Box, a cell phone and a part-time assistant. I work out of my home office so there is no rent or associated costs. I don't advertise or join networking groups that cost several hundred dollars a year. But I will send out hand-signed holiday cards and I may buy a new chair at the end of the year.
If you're considering going out on your own, it will be the most exhausting, scary, exhilerating and rewarding decision you've ever made. Good luck!
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Steven C. B., Joseph S. and 7 others like this
You, Steven C. B., Joseph S. and 7 others like this
16 comments
Todd M.
Todd M. M. • I have started my business part time and am going full time starting October 4th. I am already receiving referals and can related to everything you are saying. I did rent an office and have some fixed costs but would be interested in talking with you if you would like.
Jeffrey
Jeffrey J. • Great article, full of cogent and realistic views on how to do what might seem to be the impossible. I know Kathryn personally and know what she went through to start her firm, so her battle scars are well earned and her advice should be well taken by all considering the jump to a solo practice. As a former chair of the Indiana GP/Solo Small Firm Section, I can only say that she paints a picture of success for the rest of us Hoosiers to follow and the rest of the country to emulate. Nice work!
Kathryn
Kathryn R. • Thanks, Jeff! I don't wear my battle scars on my sleeve but, yes, some of my lessons were learned the hard way. :) Just hope what I know can be of help to others!
Todd, I'd be happy to chat with you about your new practice. Shoot me an e-mail and we can compare calendars.
David
David B. • Nobody mentionned malpractice insurance. Premiums can be $2K+. Does this factor in to your budget planning? Limits can depend on what kind of practice you have, but going w/o runs a real risk of exposure, even if just for defense costs of a frivolous suit. Regardless of how good client relations are, if someone takes a financial hit they may well look around for any source to make them whole, and that could well include their lawyer.
Steven C.
Steven C. B. • I cannot add much more to what Kathryn has said accepts to say this is information and advice that I and every attorney, even after 23 years, needs to keep mindful of...
Kathryn
Kathryn R. • David, you're right in that I didn't include my malpractice or bar dues as I was focusing more on the day to day expenses involved with running a practice. Obviously, those two things plus good business insurance are vital to practicing law and should be included in one's overall budget.
Sebastian
Sebastian L. • Re. malpractice insurance. Obviously, it depends on the amount of assets that one is trying to protect. But any attorney who is contemplating taking on a malpractice case will ask to look at the client's Retainer Agreement with the former attorney. If the Retainer Agreement specifically states that the frmr attorney does not carry malpractice insurance, wouldn't that be a disinsentive for any new attorney to take on the case? (in other words, if it's harder to get to any money, why would an attorney take on the case?) And therefore, wouldn't that cut down on the risk of being sued for malpractice?
Kathryn
Kathryn R. • In Indiana, attorneys are required to carry malpractice insurance so that's not an option. But I can't imagine not having it since all it takes is one pissed off client to financially ruin a successful practice especially if they are willing to pay their attorney up front.
Mary
Mary G. • Hi Kathryn! I couldn't agree more. The best weapon is the Client Relations in times of their vulnerability. Congratulations and more power to you!
Pamela W.
Pamela W. K. • Hi Kathryn! I enjoyed reading about the practice of law in a post that is uplifting and positive. The economy is tough on all of us, but the best thing to do is to just push through it! What type of law do you practice? Thank you for sharing your story.
pwk
Kathryn
Kathryn R. • I practice in small claims which is primarily landlord/tenant and collections. Not the most glamorous of practices but you can't beat it for the entertainment value! :D
Pamela W.
Pamela W. K. • Hi Kathryn,
Thank you. Glamorous law is a made for television show! :) I know plenty of lawyers who are doing well in small claims court.
PWK
Jenny
Jenny C. • Thank you Kathryn, for sharing -- do you mind if I provide your tips to the King County Bar Associaion probonodicta.org blog next month, which I am helping start up with my Practice Tips section?
Tom
Tom K. • Nice article, Kathryn. You raise some very good points, which I wrote a post about today on my blog. http://bit.ly/rsKlZ6
Joseph
Joseph B. • @Sebastian: An attorney may be willing to take a legal malpractice case even if the defendant does not have insurance since the license to practice law typically results in continued income in the future and few successful attorneys are judgment proof. If there is no money to pay damages, the plaintiff may be more likely to complain to bar counsel. Besides, if I am negligent, I want my clients to be appropriately compensated for my error. I think malpractice coverage is wise in a business plan whether required or not.
Kathryn
Kathryn R. • @Jenny: Not at all! I'm happy to help. @Tom: Thanks for the shout out in your blog. Your point about networking is well taken. My personal experience is that the time and money I put into networking groups did not result in a corresponding increase in business. Plus I noticed that many attorneys who were using these groups for business were doing so because they were not getting referrals from their clients or colleagues. Hence my suggestion. I do network but on a much more casual basis - lunch with an attorney I've just met in a field outside my practice and carrying LOTS of business cards for when casual conversations lead to potential business. So I wouldn't suggest not networking at all - just make sure it's effective for building your practice.