Solo Practice

Solo'ing Out of Law School - Pros and Cons

Should you start your own law firm straight out of law school?  Personally, I don't think that there's a right answer to this question; it simply depends upon a variety of factors, ranging from what you want to do to what your other options are.  That's why I devoted an entire chapter to this topic in Solo by Choice, and also included a lengthy Q&A written by South Carolina Trial Lawyer David Swanner as an example of a successful attorney who went solo right after graduating law school.

You'll have to read Chapter 3 of the book for the full discussion but below, I've laid out the pros and cons of going solo after law school:

Pros:

    No golden handcuffs – When you solo right out of law school, you don’t suffer the loss of a six-figure income, or the sacrifice of such BigLaw perks as a secretary, Blackberry, and expense-account that comes with firm life. As an ex-student, you’re already accustomed to living frugally, and more likely to take in stride such cost-cutting sacrifices as sharing an apartment with roommates or subsisting on top ramen noodles until you get your practice off the ground. Moreover, with the exception of your student loans, you’re less likely to have the sort of major financial expenses – e.g., mortgage, car loan, family health insurance policy – that often deter more settled lawyers from starting a law firm later on.
    It may be the best option – Solo’ing right out of law school makes sense if you can’t find a job as a lawyer. After three years in law school and passing the bar, you are fully qualified to practice as a lawyer. So, why waste your newly acquired skills working as a paralegal, or – if you’re a second-career lawyer – returning to a position where a law degree isn’t required because it’s the only job you could find? Better to start your own practice now, and get your money’s worth out of your law degree.
    It’s easier to seek help – As a new grad, you’re less likely to feel awkward asking for help, or seeking out mentors than more experienced lawyers who might feel some embarrassment about reaching out for support.
    The most direct route to what you want – Some argue that if you’re really certain you want to start your own law firm right away, working for others only postpones the dream. And there’s some logic to that: after all, if you take a law firm job and resent it, you might perform badly and get fired.

    Cons:

    Financial pressure – Even without a mortgage or other financial burdens, you may still have as much as $100,000 or $150,000 in student loans. And while you can defer – or spread out – your loan payments, there is no escaping the reality that your new solo practice will need to generate revenue right out of the gate. In this situation, you may feel pressure to take on unattractive cases or large amounts of low-paying, document-review projects just to pay rent. By contrast, if you work for someone else for a couple of years and live frugally, you can make a substantial dent in your student loans before opening your practice. And don’t forget, many schools now provide loan-forgiveness for grads going to government sector or legal aid groups (in some cases, as much as $5,000 or $10,000 a year), so you needn’t feel compelled to work for BigLaw to start paying down your loans.
    Lack of contacts – You need time to build up an established network of professional contacts to serve as a source of referrals and references. In fact, it’s generally accepted that most new solos need as many as three years to establish a network (which is why most new solos don’t truly hit their stride until their third year of practice). By contrast, if you start your legal career working for a firm, the government, or some other employer, you can use the time for networking –  participating in bar activities, attending conferences, and meeting other lawyers through your job. Then, when you’re ready to start your own practice, your network will have been set up.
    You may not be taken seriously – Most clients don’t ask or particularly care about how much experience you have. But other lawyers are more particular; they may inquire about your level of experience when considering whether to refer you cases or to hire you for contract work. The fact is, many lawyers hesitate to refer good cases to a lawyer straight out of school because they have no assurance the work will be performed competently. But if you go to work for a few years, particularly for a well-known firm or judge, other lawyers may feel more comfortable about sending you cases, and then – from time to time – you can ask for a referral from your former boss.
    No safety net – If, despite your best efforts, solo’ing doesn’t work out, or you don’t enjoy the solo experience, it will be much tougher to find law-related employment without references from a prior employer (unless you can bring a significant amount of business to a new firm). As unfair as it may be, potential employers may assume that you started a firm directly out of law school because you couldn’t find a job. By contrast, most lawyers who’ve previously been employed can generally find another job more easily even after having spent several years as a solo. Bottom line: if you want to leave yourself some options for other careers in the law down the line, you’re better off working a few years for others before starting a firm.

Full post as published by My Shingle.com on March 09, 2008 (boomark / email).