When is the ideal time to go solo?

[frozenbananas]

I know a lot of factors can influence this i.e., financial constraints, family planning etc. so "ideal" with those in mind will be personal.

But, from a purely professional/competence perspective when do you think is the best time to go solo? By that I mean, how many years does it take to obtain a level of competence in which you would say going out on your own would be wise in terms of actually being able to do a great job for your clients?
 

I know some people go solo right after articling, but that feels very soon. I guess it's the you either "sink or swim" mentality. But also, I know waiting too long you may never actually jump and do it. I have looked around LinkedIn and have seen about 5-6 years, does that timeline feel right to you? 

Thanks in advance!

[canuckfanatic]

Depends on the type of work. The most basic corporate services I think I could have done as a solo right after articling. I think 4-6 years for a more fleshed out business/real estate practice.

I know lawyers that went solo 10+ years into their career.

[frozenbananas]

4 minutes ago, canuckfanatic said:

Depends on the type of work. The most basic corporate services I think I could have done as a solo right after articling. I think 4-6 years for a more fleshed out business/real estate practice.

I know lawyers that went solo 10+ years into their career.

That makes sense! I recently saw someone go solo right after making Partner (8 months after) which I thought was fascinating!

If we take the 4-6 years example as its most common, and in line with what I would want to do, if you were giving someone advice for how to prepare for that (it may not happen but say they wanted that option) is there anything you think a 1st year associate should be doing/thinking of beyond just getting good at the job itself over those years?

Edited July 10 by frozenbananas

[canuckfanatic]

7 minutes ago, frozenbananas said:

If we take the 4-6 years example as its most common, and in line with what I would want to do, if you were giving someone advice for how to prepare for that (it may not happen but say they wanted that option) is there anything you think a 1st year associate should be doing/thinking of beyond just getting good at the job itself over those years?

The hardest part about going solo imo is getting clients. You're going to have to be a salesperson. Developing a strong network is key and you can start early.

My old firm encouraged articling students to network as much as possible, and mostly with referral sources like realtors, accountants, mortgage brokers, bankers, etc.

I would connect with people in these areas that were similarly inexperienced with the intention of growing our complementary practices alongside each other. I had realtors that would attach my business card to packages they sent to their clients. 

[Psychometronic]

Not a direct answer to your question, OP, but I wouldn't advise anyone to go solo right after articling (unless they're in criminal defense where it's fairly normal). There is so much to learn in the first few years of practice and I have relied heavily on more senior lawyers to guide me around issues I didn't even know existed. 

 

[canuckfanatic]

3 hours ago, Psychometronic said:

issues I didn't even know existed.

and then there's the absolute nightmare that is trust accounting

Having to do my own trust accounting is a major deterrent from me ever going solo

[Psychometronic]

3 minutes ago, canuckfanatic said:

and then there's the absolute nightmare that is trust accounting

Having to do my own trust accounting is a major deterrent from me ever going solo

We had one whole day of PLTC training and a handy dandy handbook. You mean to say you don't know this stuff inside out? 

[canuckfanatic]

1 hour ago, Psychometronic said:

We had one whole day of PLTC training and a handy dandy handbook. You mean to say you don't know this stuff inside out? 

A whole handbook just to say "don't steal from your clients you idiot"

[BHC1]

29 minutes ago, canuckfanatic said:

A whole handbook just to say "don't steal from your clients you idiot"

It’s a lot harder than you’d think.

Edited July 11 by BHC1

[SNAILS]

13 hours ago, canuckfanatic said:

and then there's the absolute nightmare that is trust accounting

Having to do my own trust accounting is a major deterrent from me ever going solo

I know several lawyers that pay a bookkeeper on a contract basis. If I ever went solo, I would likely hire such a bookkeeper, whose role would be basically to handle all money including billing clients, paying bills, deduction, etc.

*** I understand that this would be done under the lawyers supervision, but I think it is common t place a lot of trust in the bookkeeper.

[CleanHands]

1 hour ago, SNAILS said:

*** I understand that this would be done under the lawyers supervision, but I think it is common t place a lot of trust in the bookkeeper.

This has gotten trust funds stolen and lawyers in trouble with the Law Society on top of that.

[canuckfanatic]

3 hours ago, SNAILS said:

I think it is common t place a lot of trust in the bookkeeper.

https://www.cbc.ca/news/canada/british-columbia/richmond-lawyer-not-disbarred-1.6772348

[SNAILS]

@canuckfanatic - that's $7.5 million that was stolen. The lawyer should have caught that.

Are you saying that you don't feel, as a general rule, that lawyers can trust their bookkeepers? I have heard many lawyers lack the skills or patience to manage the financial aspects of their business ands would therefore benefit from the assistance of a professional in that field.

Failing to promptly and accurately bill clients, pay bills, pay business expenses and payroll could also get a lawyer in trouble. Hence many lawyers want to focus on the legal aspects of the job instead.

[canuckfanatic]

7 minutes ago, SNAILS said:

Are you saying that you don't feel, as a general rule, that lawyers can trust their bookkeepers?

What I'm saying is that contracting out trust accounting is relatively high-risk, given that lawyers are personally liable.

And that were I to go solo, it's not a risk I'd be willing to take. And since I don't want to deal with the headache of trust accounting, I'm deterred from the idea of going solo.

[SNAILS]

OK, but let's say a lawyer did want to go solo but does not want to do his own accounting. And then he watches the bookkeeper closely and reviews everything?

[BHC1]

A good friend of mine from law school went solo after their first year post articling. They’re absolutely killing it financially. I don’t think there’s a universal right or wrong time to do it, but it does come with a lot of risks.

They have a bookkeeper. 

[canuckfanatic]

On 7/11/2024 at 6:28 PM, SNAILS said:

OK, but let's say a lawyer did want to go solo but does not want to do his own accounting. And then he watches the bookkeeper closely and reviews everything?

If you don't want to do your own accounting, that's basically your only option. Like @BHC1 said, you have to acknowledge the risks and stay on top of it.

Too many lawyers get complacent over time. Little mistakes add up.

Just look at Catherine Sas, KC.

[2easy]

On 7/11/2024 at 7:40 PM, BHC1 said:

A good friend of mine from law school went solo after their first year post articling. They’re absolutely killing it financially. I don’t think there’s a universal right or wrong time to do it, but it does come with a lot of risks.

They have a bookkeeper. 

What type of law? If you don’t mind me asking.

[Observer]

On 7/11/2024 at 9:13 PM, canuckfanatic said:

What I'm saying is that contracting out trust accounting is relatively high-risk, given that lawyers are personally liable.

And that were I to go solo, it's not a risk I'd be willing to take. And since I don't want to deal with the headache of trust accounting, I'm deterred from the idea of going solo.

It is common to allow the bookkeeper access to the accounting software (PC Law, etc.) and banking records,  but not the actual trust account. 

[xavier888]

When you know you can get clients on your own. That's the hardest part.

You have to do all sorts of things to get noticed, including SEO marketing. For example, there are a bunch of SEO strategies that should be taken into consideration, most of them mentioned here. Strongly recommend trying it when you go solo.

[Bob Jones]

11 hours ago, xavier888 said:

When you know you can get clients on your own. That's the hardest part.

You have to do all sorts of things to get noticed, including SEO marketing. For example, there are a bunch of SEO strategies that should be taken into consideration, most of them mentioned here. Strongly recommend trying it when you go solo.

What are strategies you can recommend to differentiate yourself from a crowded specialty. For example, say you want to open an estates practice (just picking a random field), I understand you want to try to stay in your specialty and build a name for yourself there (as opposed to trying to take on everything out of desperation), but how do you attract clients from a crowded field? 
 

Undercutting the competition by charging less (initially)? I’m sure competitors also network and use SEO too so what’s the secret sauce to landing clients (if there is any secret sauce)?

[SNAILS]

Getting clients depends a lot on market and area of law.

I am confident that a lawyer in my city (a smaller Ontario community) could get 100 clients in criminal and family law with very little effort, within a very short time, provided that lawyer is on good terms with other lawyers for referrals. These clients would be mostly on Legal Aid certificates and paying small retainers ($4000-$8000) for minor criminal offences, child custody matters, etc. I know this because I used to do intakes for a small firm, and I am now encountering many clients who have called around and cannot find a lawyer.

The above would not be true in the GTA, or more competitive areas like Barrie, Kitchener and Newmarket.  

I should also mention that clients (criminal / family) willing and able to pay a substantial trial retainer (which I will arbitrarily define as $40 000 or more) are much more rare. These do tend to go to more experienced lawyers with a  strong reputation, even in a small community. 

Now, personal injury, wills and estates, and real estate is quite competitive. Even in my smaller community, it is clear that the success or non-success of a lawyer specialized in these areas is dependant on the ability to get clients in these fields. 

A new lawyer able to get 2-6 real estate deals in the last month would impress me, whereas getting 2-6 criminal clients would not.