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If you are a law student or young attorney thinking about starting up your own
law
practice, you should ask yourself some of the following questions and see
if this is the right decision for you.
In California and Texas, 35% and 38% respectively of the attorneys in private
practice are solo practitioners. So the possibility of having your own law
firm is not an impossible feat.
Characteristics You Must Possess in Order to Successfully
Run Your Own Law
Practice:
Listed are some personal characteristics you must cultiva te and enhance.
Self Starter
One of the first things you
need to be is a self-starter. If you do not need anyone to tell you to get
going and can do things on your own then you are on the right track.
Social Interaction
Your law
practice obviously requires social interaction, so if you can not tolerate
strangers or just get irritated by people too easily, you may want to consider
partnering up with another attorney.
Leadership
Getting people to go along with
your vision in terms of your law
practice is an ability that should come as second nature to you.
Responsibility
As a law
firm owner, you need to be the type of person who likes to take charge and
see things through.
Organizational Skills
Plan, plan, plan!
Design, structure and coordination will make your law
firm run like a well-oiled machine.
Perseverance
Once you commit to opening
your own law office and
begin taking on clients’ cases, you need to be able to finish what
you started even if things do not go well.
Energy Level
Being your own boss requires
a certain level of stamina. Make sure you have the endurance to assume multiple
responsibilities as a law
office owner.
Financial Considerations for your Law
Practice:
Too many solo practitioners seem to lose sight of the reality of law …
it’s a business. To make the business successful, an attorney must consider
the financial realities that come with running a law
office.
Savings
You want to have at least 4-6
months of living and operating expenses to tide your law
office over during the lean months. It is not a must, but having this amount
of savings will help you to be less stressed about where your next dollar is going
to come from.
Credit Cards and Credit Line
Experts
in the field recommend a person should not have an average monthly balance
of credit card debt which is more than the equivalent of one month’s
gross income. However, the reality is the average credit card debt per household
is $13,000.00, so this is something you will have to micro manage to make sure
your law firm
stays afloat.
Gross Income v. Home Mortgage or Rent
You should try and keep your mortgage or rent payment less than 20% of your
monthly gross income.
Gross Income v. Consumer Debt
You should
try and keep your consumer debt less than 30% of your total family income. Maintaining
a good debt-to-income ratio will help you nurture the fiscal discipline to run
a law office
cost-effectively.
Insurance
Depending on your situation, such as being single or having dependents, you
need to consider your insurance needs, i.e., health, life, auto, etc. Planning
for any contingencies will give you the security and peace of mind you need
to confidently run your law practice.
All in all, these are simply some general viewpoints you need to consider before
opening the doors to your law office. The benefits of being your own boss are
extremely gratifying, but one should not turn a blind eye to the necessities
needed to operate a successful law office.
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