This post originally appeared on the blog of the Denver Bar Association Young Lawyers Division, of which Laura Liss is a member a guest author. Check out the DBA-YLD blog for posts on all kinds of legal issues, not just solo practice, business, and franchising matters.
When
I “went solo” last summer, some of the immediate benefits included giving me an
identity and a purpose. However, the hard work and the “what I wished I knew
then” list has grown. I don’t regret my choice, but here are three of the harder kernels of truth from my experience I pass along every time when asked about
what going solo entails.
1. Embrace
that Going Solo Makes You are a Small-Business Owner.
Small business ownership means you
do what you want, when you want, why you want. However, the less glamorous side
of a solo practice is that you will likely do everything by yourself, unless
you are independently wealthy enough to pay others do things for you.
As an example, I created my law firm
website, business Facebook page, a Twitter account, and a blog. I have no background
in programming or design and I do not claim it to be amazing – but it is
functional. Doing the website myself with a template from Wix saved me a at
least a thousand dollars, even if it likely took me over 50 hours. It also continually
saves me from paying someone else whenever I want to change something on those
sites because I know how to do it myself.
Doing it all yourself is the biggest
part of going solo that no one tells you.
2. Learn
About Bookkeeping and Accounting. Then Actually Do It.
While you may be familiar with keeping track
of your time, you must also learn to keep track of your receipts, your accounts
payable, your accounts receivable and above all else, your trust account
bookkeeping if you receive trust payments from clients.
If you have never kept track of
records like this, find a professional bookkeeper who will train you on how to
do it, and who will come in once a month or quarter to check your work. This
will cost you likely less than $100 per month but it will be well worth it. Eventually,
when you are better at doing it yourself, you won’t have to pay for it at all.
Also plan to read about or hire a
CPA who can teach you about business tax deduction basics if you did not study
anything like that in undergrad or law school. For example, deducting for a
copier versus copy paper versus the cost of taking a client to lunch all have different
rules and you should be aware of them.
3. Carry
Malpractice Insurance.
You are may be new to practicing law
like I was. You will make mistakes and there will be things you never knew to
consider.
Do not let the $700 - $1400 per year average malpractice insurance price
tag scare you off. It is cheap compared to a $100,000 or $500,000 judgment.
That
said, start applying early. My
personal experience and what I have seen with friends was that it took several
months to actually receive insurance. You can’t submit an application until you
are licensed, but consider having the paperwork filled out and ready to submit
on the swearing in ceremony day.
Laura Liss represents franchisee,
franchisor, and non-franchise business clients alike in business, franchise,
and real estate transactions at her own firm, the Law Office of Laura Liss,
P.C. (www.lauraliss.com). She
also presents to industry groups across the metro area about building,
protecting and growing companies through trademarking and franchising. When out
of the office, she enjoys networking, Mexican food, and hiking in the
foothills. She can be reached at laura@lauraliss.com, on Twitter @LauraLissLaw, or on Facebook at facebook.com/attorney-laura-liss. She is also always available to talk through questions about hanging
your shingle.
