W
e lawyers are privileged to do interesting, significant and challenging work for the benefit of others. But we also need to make money to pay our bills, support our families and do the things we want to do — money to sustain our personal lives. So, we must figure out how to turn this interesting work we are privileged to do into a sustained flow of money that allows us to continue to do this interesting work we are privileged to do. Despite the public perception of lawyers rolling in dough, turning the practice of law into a profitable business, at least for a lot of lawyers, and especially young attorneys striking out on their own, is not always that easy. Last year, I published an article here providing “Tips for Solo Success.” With this article, I narrow my focus to provide tips for financial success as a solo or small firm.
HOW TO MAKE
MONEY! Tips for Financial Success in a Solo or Small Firm Practice By James D. Crosby
22 SAN DIEGO LAWYER july/August 2019
To sustain any degree of long-term financial success, lawyers must run their legal practices like businesses. Fee arrangements with clients must be business deals with well-understood risks and benefits, and off-ramps for both sides if terms are not met. Lawyers do provide services guided by professional and ethical responsibilities. Requiring clients to meet their fee obligations, running efficient practices and turning good profits are not inherently at odds with those professional and ethical responsibilities. One can always choose to stay in a case too long for a non-paying client, or cut one’s fees to get a case, or make any number of bad business decisions in furtherance of case, cause or client. Sometimes, you just can’t walk away from the case, or the new client who can’t pay full freight really needs help and you can’t say no, or you just hang in with a slow-pay client because you like the guy and believe he will get you current in six months. We are all people driven by emotions, perceptions and impulses, good and bad, and not always by the calculated need to make money. But one needs to make those types of decisions fully understanding the likely ramifications and not with pie in the sky hope it will all work out. Run your practice like a business based on thoughtful, deliberate decision-making. That is the key to long-term success. Here are some tips to help you do just that and to help you find financial success in your practice: