Lots of lawyers are leaving big firms to start solo practices. Usually, they’re not leaving the big firm by choice. They’ve departed because they’ve been laid off as a result of the declining economy.
Many of these newly unemployed lawyers are making a decision to began a solo practice. One commentator coined the term “BigSolo” for these former large firm lawyers opening their own offices.
I’m getting calls from these lawyers seeking advice about opening their new offices. Sometimes they want to practice family law, sometimes not.
I don’t tell them what I’m about to tell you, but I think it. Their calls make me remember a phenomenon I’ve witnessed many times in my practice.
I have been involved in many cases where the following happens – (1) husband loses job, (2) husband looks around for job and finds nothing, (3) husband opens “consulting”* practice, (4) husband buys lots of office equipment/computers and sets up spare bedroom or executive suite for “consulting” practice, (5) husband hires a “coach” to help build practice, etc. I usually get involved when husband doesn’t earn any money, wife gets tired of him watching ESPN and she wants out of the marriage.
* Sometimes it’s a variation on “consulting” – maybe real estate sales or advertising specialty sales.
At some point the “consultant” finds another job and winds down his office. By then it’s usually too late for the marriage.
Why do these husbands become consultants? I think they’re struggling with the loss of their identity. They need to be able to tell their friends and family that they’re doing something respectable to preserve their own sense of self worth. “Consultant” sounds much better than being “between jobs” or some other euphemism.
Talking to the lawyers calling me for advice about opening a new office feels a lot like talking to the “consultants” I’ve represented over the years. It seems to me that many of them aren’t well suited to life in a small or solo practice. They don’t seem interested in running a small business.
Why don’t they just go out and find another position right now? Because they’re aren’t any positions. That’s pretty clear.
Unfortunately, most of these new practices are doomed. These lawyers generally don’t have what it takes to be out on their own. That’s why they were in a firm in the first place.
The critical skill they need for success is the ability to generate business.
If these people were the kind of lawyers that generated business they wouldn’t have been laid off in the first place. We don’t hear stories about big firms laying off lawyers with large books of business. That’s not how it’s done.
Nothing stopped these lawyers from generating business in their last position. No one came to their office and said “by the way, don’t go out and bring in wealthy clients with lots of legal problems”.
These lawyers don’t generate business because its not what they enjoy. It’s not what they’re good at.
Are they going to go out and build relationships with prospective clients and referral sources now that their on their own? They say “yes”, but I don’t think they will. Some of them have been practicing law for quite some time and haven’t generated any business – ever.
This problem makes being a solo nearly impossible.
So what’s a newly unemployed lawyer to do when the last job is gone and the next one isn’t yet on the horizon?
Do what you need to do to feel good. Go ahead and open your office, announce that you’ve got your own practice, buy the iPhone or Blackberry. But then stop spending money. Don’t go hire a coach or a consultant or an ad agency. Don’t spend $2,500 on letterhead, envelopes, business cards and engraved announcements. Don’t pay $4,000 for a website. Don’t pay $3,500 for a technology consultant to set up your server and your phones. Don’t buy expensive furniture and artwork.
If you need to have a practice to maintain your identity and your self-worth then do it, but do it cheap. Save your money so you can hold on until the economy recovers. Preserve your assets. Don’t “invest” in your future by creating a law firm infrastructure that you don’t really need.
Start thinking about jobs outside of the law. Consider all of your options. Our profession is changing, the number of positions is shrinking. Figure out what you’re going to do with the rest of your life.
Use your time wisely. Don’t waste it going to the Chamber of Commerce “networking” events filled with life insurance salespeople. It’s not going to get you any business and it’s going to distract you from figuring out what you really want to do with your life. Use your time to make some critical decisions about how to proceed based on an analysis of your strengths and challenges.
Acknowledge, to yourself, what’s really going on. You might want to discuss it with your spouse as well.
Open an office if it helps you survive this very challenging period. But, do it cheap. Be aware of what you’re really doing and take care of yourself.
In the long run things are going to work out for you. Don’t make it worse by digging a deeper financial hole. Do what you need to do to make it to the other side of this difficult time.