Solo Solicitor AMA

[Mountebank]

On 3/5/2023 at 6:13 AM, ltmaverick25 said:

I realize I'm coming into this a little bit late but I was curious if you could elaborate on why RBC has the worst reputation for lawyers, and why BMO / TD have better ones. I have no skin in the game yet, but I am strongly considering opening up my own practice when done law school, so every bit of insight helps.

Thanks

I just meant in terms of my local community and it largely has to do with the branch staffing situation. YMMV.

[carlill]

What health/dental insurance providers do solo practitioners use? I am looking at Lawyers Financial but wondering if any solos on here have any recommendations or firms to avoid.

 

Are there any advantages - in a firm of less than 5 practitioners - to having a small group plan?

[Diplock]

8 minutes ago, carlill said:

What health/dental insurance providers do solo practitioners use? I am looking at Lawyers Financial but wondering if any solos on here have any recommendations or firms to avoid.

 

Are there any advantages - in a firm of less than 5 practitioners - to having a small group plan?

I use the fact that my wife has a real job.

I know that's not really a useful answer. But there it is.

[Jaggers]

Most of the big insurers offer group benefits for small employers. My wife's mother runs a small business with 6ish full-time employees and they have a plan from Manulife.

[Mountebank]

2 hours ago, carlill said:

What health/dental insurance providers do solo practitioners use? I am looking at Lawyers Financial but wondering if any solos on here have any recommendations or firms to avoid.

 

Are there any advantages - in a firm of less than 5 practitioners - to having a small group plan?

I'm with Canada Life pretty much because the agent is a referral source. Although, I have no complaints with the coverage, cost, or service.

Best thing to do is talk to an agent and start out small because it's easy to expand coverage later (but pretty hard to take away benefits that staff are already enjoying). We basically have 80% coverage for drugs, dental, and paramedical. I have my own separate coverage for life, critical illness, and disability.

[carlill]

Thanks as always!

[carlill]

Best banks for small law firms

Good day - I know that the patient people who typically respond on this solo thread have provided recommendations/suggestions before on the topic of banking for solo firms...but their views may have changed since the last time someone asked this - which bank would you recommend for solo firm banking?

Thanks!

[Bob Jones]

On 6/7/2021 at 4:46 PM, Mountebank said:

Ok.

This is the LAST time I'm starting this up. 

Successor thread of the original thread of lawapps.ca, which was the successor thread of the original thread of ls.ca...

In the off chance you’re still monitoring this thread:

- how much time would you say it took to build up your practice, until you were financially comfortable and making something close to what a reasonable salary for someone of your call (at that time) would have been? 
 

- did you take out a loan, HELOC, etc to make ends meet while you were starting your business? 
 

- How did you differentiate your firm and secure clients, relative to local other solos and other competitors? Offer cheaper rates plus go hard on SEO?

[Mountebank]

On 5/25/2024 at 8:28 AM, Bob Jones said:

In the off chance you’re still monitoring this thread:

- how much time would you say it took to build up your practice, until you were financially comfortable and making something close to what a reasonable salary for someone of your call (at that time) would have been? 
 

- did you take out a loan, HELOC, etc to make ends meet while you were starting your business? 
 

- How did you differentiate your firm and secure clients, relative to local other solos and other competitors? Offer cheaper rates plus go hard on SEO?

Answers in the same order:

1. I was profitable within five months, but didn't feel like I had caught up until about 4 years.

2. No, I didn't take on debt, but I did burn through our savings. Do not take on debt if you can possibly avoid doing so. I actually have taken on business debt more recently because I decided to make some significant capital outlays, which will be good for the business long-term. Also, recall that business debt is still, all things being equal, way better than personal debt, so let that guide your planning. The business will be debt-free in five years and I'm personally debt-free except mortgage, but damn payments are steep and I don't know what I would've done if I'd taken on debt at the beginning. Also, I think I've written before that I spent too much at the outset (getting an office too early and hiring staff before I needed to) and I would've developed the business more incrementally if I had to do it over again.

3. Well, this is the biggest challenge and source of all your fears as a business owner (you ask yourself, "what if the phone just doesn't ring?") and, as a sole, that fear really never completely goes away, even if you're as busy as anything ("what if the work just stops coming in?"). I chose an area that was in-demand/under-served, so there was excess work available. To some extent, my practice (at least the estate lit side) is a bit of a niche for my area and so I made it clear to colleagues that I was taking on this work and I would get referrals that way. Also, my rates were crazy low to start and still are on the lower side (although I'm catching up). I now spend $0.00 on direct marketing, although I do spend a little on regular BD like taking colleagues out to lunch, hosting CPD, etc. The biggest thing has been to develop a reputation among colleagues for being competent and available and getting referrals that way. Over time, you then start to get referrals from existing/past clients and then the challenge becomes managing the workload rather than attracting the work. As a solo, it's also just important to remind your colleagues that you exist. So, finding ways of doing this, like getting involved in the local law association, is important.

[Bob Jones]

On 5/26/2024 at 9:30 AM, Mountebank said:

Answers in the same order:

1. I was profitable within five months, but didn't feel like I had caught up until about 4 years.

2. No, I didn't take on debt, but I did burn through our savings. Do not take on debt if you can possibly avoid doing so. I actually have taken on business debt more recently because I decided to make some significant capital outlays, which will be good for the business long-term. Also, recall that business debt is still, all things being equal, way better than personal debt, so let that guide your planning. The business will be debt-free in five years and I'm personally debt-free except mortgage, but damn payments are steep and I don't know what I would've done if I'd taken on debt at the beginning. Also, I think I've written before that I spent too much at the outset (getting an office too early and hiring staff before I needed to) and I would've developed the business more incrementally if I had to do it over again.

3. Well, this is the biggest challenge and source of all your fears as a business owner (you ask yourself, "what if the phone just doesn't ring?") and, as a sole, that fear really never completely goes away, even if you're as busy as anything ("what if the work just stops coming in?"). I chose an area that was in-demand/under-served, so there was excess work available. To some extent, my practice (at least the estate lit side) is a bit of a niche for my area and so I made it clear to colleagues that I was taking on this work and I would get referrals that way. Also, my rates were crazy low to start and still are on the lower side (although I'm catching up). I now spend $0.00 on direct marketing, although I do spend a little on regular BD like taking colleagues out to lunch, hosting CPD, etc. The biggest thing has been to develop a reputation among colleagues for being competent and available and getting referrals that way. Over time, you then start to get referrals from existing/past clients and then the challenge becomes managing the workload rather than attracting the work. As a solo, it's also just important to remind your colleagues that you exist. So, finding ways of doing this, like getting involved in the local law association, is important.

Hey, thanks for responding so quickly. I'm not a solo yet, but it is something I have been assessing for some time, as I understand it has the potential to be lucrative (unless you can break into equity partnership in a big firm or grind your way up the corporate ladder in house, and obviously there's no guarantees). But for now, it's something I'm still assessing and doing my homework on.

1. So would you say it took you 4 years to catch up to what your income was (or market rates in your area) were paying lawyers at the outset of going solo? For example, say you were earning 100K in 2020 and you theoretically went solo in 2020 (and assuming that was in line with reasonable market rates with where you live and your practice area) before going solo, did it take you 4 years to then get back to the same 100K figure? Or put another way, if your contemporaries in 2024 are earning roughly 140K-150K, would you say it took you until 2024 to therefore catch up to that rate. 

I'm just using theoretical numbers to clarify my question, obviously please keep your remuneration confidential.

2. Good to hear you became profitable so quickly, but my concern is with living expenses, family, etc, I would need a bit of a cushion to get my practice up and running and start earning close to my same current compensation range. 

3. Good advice, thanks!

Edited May 27, 2024 by Bob Jones

[Mountebank]

2 hours ago, Bob Jones said:

Hey, thanks for responding so quickly. I'm not a solo yet, but it is something I have been assessing for some time, as I understand it has the potential to be lucrative (unless you can break into equity partnership in a big firm or grind your way up the corporate ladder in house, and obviously there's no guarantees). But for now, it's something I'm still assessing and doing my homework on.

1. So would you say it took you 4 years to catch up to what your income was (or market rates in your area) were paying lawyers at the outset of going solo? For example, say you were earning 100K in 2020 and you theoretically went solo in 2020 (and assuming that was in line with reasonable market rates with where you live and your practice area) before going solo, did it take you 4 years to then get back to the same 100K figure? Or put another way, if your contemporaries in 2024 are earning roughly 140K-150K, would you say it took you until 2024 to therefore catch up to that rate. 

I'm just using theoretical numbers to clarify my question, obviously please keep your remuneration confidential.

2. Good to hear you became profitable so quickly, but my concern is with living expenses, family, etc, I would need a bit of a cushion to get my practice up and running and start earning close to my same current compensation range. 

3. Good advice, thanks!

No, I meant it took me 4 years until I felt like I was caught up, at least in the ballpark, to where I would've been had I stayed at a firm all that time.

Making sure you have a long runway of cash and your family budget under control will be key ahead of making the move to go solo. Lost income will be your largest expense.

[DevilsAdvocate]

I’m really want to go solo.  But my problem is my background is insurance defence and plaintiff work.  Before that I was in govt drafting contracts for about ten years.  

what I would appreciate anyone’s input on is how feasible would it be to be a sole practitioner with the niche of just drafting contracts.  It seems there is work on LinkedIn to do piece work and I’d set up a website marketing contract drafting services.  I know it would take a while to get off the ground but don’t think a year later it might work?

[loonie]

57 minutes ago, DevilsAdvocate said:

I’m really want to go solo.  But my problem is my background is insurance defence and plaintiff work.  Before that I was in govt drafting contracts for about ten years.  

what I would appreciate anyone’s input on is how feasible would it be to be a sole practitioner with the niche of just drafting contracts.  It seems there is work on LinkedIn to do piece work and I’d set up a website marketing contract drafting services.  I know it would take a while to get off the ground but don’t think a year later it might work?

I'm not a sole practitioner (not even a lawyer yet) and I truly don't mean to be disrespectful, but this seems like an awful idea. Generally every firm and sole drafts contracts. Not to mention, there are non-legal entities that are in the business of drafting contracts and technology has made the actual drafting component simple enough, in many cases, for the clients you'll be trying to market towards. You will, therefore, find yourself in a highly competitive market place with, as you've stated, minimal experience or knowledge of what the client may need in any given scenario (to the point where even having decent precedents won't help). 

I see these kind of services like drafting contracts and notarizing documents mainly as supplemental sources of income. If you really want to venture out on your own, I would, instead, try to find a niche practice in a specific legal area opposed to a niche service. 

But, again, not even a lawyer, just wanted to offer my opinion. Best of luck in the future. 

Edited May 29, 2024 by loonie

[Conge]

14 hours ago, DevilsAdvocate said:

I’m really want to go solo.  But my problem is my background is insurance defence and plaintiff work.  Before that I was in govt drafting contracts for about ten years.  

what I would appreciate anyone’s input on is how feasible would it be to be a sole practitioner with the niche of just drafting contracts.  It seems there is work on LinkedIn to do piece work and I’d set up a website marketing contract drafting services.  I know it would take a while to get off the ground but don’t think a year later it might work?

Why wouldn't you do personal injury work? 

You could probably get some contract drafting work, but probably not enough to support yourself, unless you have a niche and some contacts to get it off the ground. 

[DevilsAdvocate]

29 minutes ago, Conge said:

Why wouldn't you do personal injury work? 

You could probably get some contract drafting work, but probably not enough to support yourself, unless you have a niche and some contacts to get it off the ground. 

I guess I can do personal injury but if I have no clients, it takes a while to get clients and about two years is the earliest to settle.  
 

i just would like a change and drafting contracts and papering transactions would be more what i want to do now.

the more I think about this I can probably do some piece work for various firms like settlement proposals, mediation briefs, etc and still be on my own.

 

thanks for your comments.  Appreciated