What Part Of Solo Do You Not Understand?

I was communicating (via email) with a solo attorney (a home office attorney) today - a good carpet commuter and Third Waver from what I can tell.  But his goal is to bring in more money so he can hire a legal assistant.  My question was "why do you want to do that"?  Traditional staffing to a home office lawyer is much like taking on debt.  "Do you want to take on debt"?

The answer of course was no, but a legal assistant can help me perform more task.  Maybe this is true.  If you are a bad manager of people like I am (and most of us will not admit it), it is not true.  However, in either event how much more business do you have to bring in just to provide a salary for this new staff?

The problem with staff is that they can only work when you are working.  They can only assist you on delegated tasks.  It is not like having income coming in the door if you are not on the job.

I asked, "You work out of your home?  Can you have staff working in your home?"  The answer came back he does and he cannot.  "Does that mean this will be virtual staff"?  (Which, by the way, might be a good stop gap measure where you only pay for what you need and use).  The answer is no.  I need to be able to work directly with this person.

Why this is true is beyond me.  "It sounds like to me you are looking for a friend or someone to socialize with more than a legal assistant. Someone to talk to."  He says maybe that is true, but he will have to get a small office somewhere.  Then he could work out of his home sometimes and out of his house sometimes.

My response was so now you will have the cost of a legal assistant, including insurance, tax withholding, comp, and other assorted expenses.  On top of that you will have the cost of an office, the legal assistant will need furniture, a computer, a printer, a phone, another high speed connection, and on and on and on.  In my crystal ball I see the expenses building.  The direction seems to be in the wrong direction if you ask me.  But, I am asked, what can I do?  I need help.

Do you have too many cases?  More than I can handle, was the response.  Then why do you have to earn more money before hiring staff?  "Good point" was the reply.

The truth came out a bit.  It gets lonely at home.  (He is younger and does not have a wife/girlfriend, kids and a beagle like I do).  To this I say get social.  Get some friends.  Get a dog.  Work is work and you really do not need these distractions.  Get into a regiment - a routine.  Get to work and tend to your social life.  Keep your home and office clean and design your home office to better suite you.  Work hard and take some time off.

But, what about all of the cases was the reply.  First improve your technology if you must to process these faster.  This typically only results in an occasional costs and not a constant expense.  If you can efile, make sure you can efile.  If you need to mail, outsource.  Also, think through the process.  Does your website or blog have enough information on it to help your clients if you refer them there first? Discuss with them at retaining on how best to communicate with you and what to expect?  Do you have dedicated software to form matters out based on information you input one time?  It all helps.

Second, refer the cases out to another attorney to do part of the work.  Do you have email capability, I asked.  Do you have a phone, I inquired.  Yes, was the sarcastic response.  Then you have the makings of a virtual law firm.  Figure out what part of each case you do best and what part you do not.  If you like the going to court part, then find an attorney that is detailed oriented and likes the prep and research part.  The money comes into you, you pay out a percentage and file a simple 1099 at the end of the year.  Get Basecamp it will make it easier to work together for $50.00 a month.

But, doesn't that cost me more money than an assistant?

No.  You do not earn as much money per case, but you can work all of the cases you cannot now.  If work increases you earnings increase.  If work decreases your earnings may decrease, but there is nothing like overhead to drive your earnings past zero.  How do you recover from that?  Here is what I have learned over the years with staff, outside offices and overhead.  When times are good they are never that good because of these things.  And, when times are bad they are horrible because of these things.

Also, in a pinch, attorneys can cover for each other.  Attorneys can split fees.  Everybody keeps there costs under control.  Everyone is responsible for their own overhead.  And, if you want to take a much needed vacation or go to a legal seminar, the work keeps moving forward due to true lawyer to lawyer collaboration.

As for working directly with the other lawyers in my virtual firm we are all getting together this Friday for a big fat lunch in Houston, Texas.  We are going to eat, talk a little business.  Talk a little trash.  Talk a little about family.  And, we are going to do it while breaking bread together.  We do not need to be in front of each other all of the time.  After all, we have work to do.  But, we love each others company once in a while.

Comments

[DBB]

How often do you have to meet clients face to face? If, for example, your a solo lawyer with a home office and you live in LA, going to meet 2 or 3 clients in a day could take all day!

Or, is there something I'm just overlooking? (I hope...)