What motivates attorneys to hang their own shingle? Well, I can’t speak for all attorneys, but recently during a practice management consultation with one attorney, they shared that a major factor for them was the desire for autonomy in the types of cases they handled.
Their current firm catered to high-conflict probate matters. The practitioner found this work stressful and was exhausted by the neediness of the firm’s clientele. They worked long hours and struggled to participate in important moments with their family. The pandemic exacerbated these issues. Working from home while tending to their children’s online school obligations made billing at their pre-pandemic level impossible. Paired with their firm’s inefficient practices and frustrating technology, this member felt that working for their firm—or really any firm—no longer appealed to them.
Small business ownership provides autonomy and flexibility that some attorneys cannot find in a traditional law firm setting. Entrepreneurship provides practitioners with the opportunity to make their own decisions and utilize best business practices and innovative technology and methods to deliver legal services in a more efficient manner. Furthermore, being your own boss provides an opportunity to utilize a range of techniques and be creative in how you provide quality legal services and bridge the access to justice gap.
How do you know if going independent and starting a law firm business is the right choice for you? In this article, I’ll give you some of the tools you need to determine whether it’s time to ditch a traditional office role and strike out on your own.
How Do I Know if Business Ownership is Right for Me?
As you ponder whether to start your own law firm business, you should check out the WSBA’s Law Firm Guide on Hanging Your Own Shingle, a guide designed to identify the various aspects of law office ownership; specifically, take a look at the “Questionnaire for a Prospective Business Owner.” This worksheet is designed to help legal practitioners consider starting a practice, and covers:
- Finances
- Financial security—value of assets and debts; liquidity; access to lines of credit.
- Revenue—revenue needed to sustain your practice (links to spreadsheet to calculate the revenue); alternative sources of revenue.
- Living expenses and lifestyle—identify basic income stream needed to cover your living expenses.
- Income tolerance—identify how long you can pay your living expenses without any revenue.
- Business Planning
- Areas of practice you plan to focus on—analyze potential practice areas and how familiar you are with them.
- Additional skills and education needed—identify steps you can take for additional education or mentorship.
- Market research.
- Experience or skills to establish yourself with prospective clients.
- Referral sources.
- Organizations you can join to connect.
- Additional networks for finding mentors.
- Readiness
- Motivation to be a business owner.
- Job search impact on decision to seek business ownership.
- Personality
- Do you work best in groups or on your own?
- Are you comfortable spending your day with little in-person interaction?
How Do I Get Started with Law Firm Ownership?
Once you have evaluated your situation and determined that you want to start your own firm, you should begin planning the first steps to open your new business. Here are a few initial steps to consider, which are also covered in our practice management guide:
- The logistics of opening a practice—create a business plan, consider your options for fee models, determine your business structure, understand WSBA licensing obligations, office logistics, equipment and software needs, and law firm budgeting.
- Operating a firm—how you can avoid conflicts of interest; using written engagement agreements, termination, and declination letters; timekeeping, billing, and invoicing; tracking deadlines and deliverables.
Other WSBA Member Support
- Free Lending Library: Borrow from a selection of 400 books. You can register online and start placing holds today. Titles will be shipped to you automatically.
- Free Ethics Help: You can speak to WSBA staff regarding questions of your future ethical obligations and your professional responsibility. The phone number is 206-727-8284.
- Discounts on Software and Services: Through the Practice Management Discount Network, WSBA members receive discounts on a menu of software and services to help you improve your practice and client service delivery.
For other WSBA resources and member benefits, visit www.wsba.org/MemberSupport.
Additional Business-Ownership Resources
- Business.WA.gov | Small Business Guidance
- U.S. Small Business Administration | Small Business Guide
- U.S. Small Business Administration | Choose a Business Structure
- ORIA.WA.gov | Small Business Guide
- Washington State Department of Revenue | Business Licensing
- Washington Secretary of State | Washington State Business Structures Wizard
In our rapidly changing world, disaster planning is a critical aspect for legal professionals. Whether facing natural calamities, technological disruptions, or unforeseen emergencies, law firms must be well-prepared to navigate challenges while maintaining business continuity and serving their clients effectively. Regardless of the specific threat, its impact on a law firm’s operations can be severe if adequate preparation is lacking. The consequences may include financial losses, reputational harm, regulatory penalties, and even a loss of client trust. A robust disaster plan acts as a lifeline, ensuring that firms can weather storms and emerge stronger on the other side.
Key Elements of a Comprehensive Disaster Plan
To fulfill their professional responsibilities and protect their firms, legal professionals should develop a robust disaster plan. Here are key elements to consider:
- Risk Assessment: Begin by conducting a thorough risk assessment. Identify potential hazards—both internal and external—that could disrupt your firm’s operations. Consider natural disasters, cybersecurity risks, emergent medical issues, and operational failures. Understanding these risks is essential for effective mitigation.
- Business Impact Analysis: Perform a business impact analysis. Assess the potential consequences of various disaster scenarios on your firm’s operations, finances, and reputation. Identify critical functions, dependencies, and recovery time objectives to allocate resources effectively.
- Emergency Response Plan: Develop clear procedures and protocols for responding to disasters. Establish chains of command, communication channels, evacuation routes, and regularly train employees. Safety and client well-being are paramount.
- Data Backup and Recovery: Implement robust data backup and recovery systems. Regularly back up electronic data and store copies securely offsite. Develop procedures for restoring data swiftly in case of a data loss incident. See the Washington State Bar Association’s Law Firm Guide on Cybersecurity for additional assistance with cybersecurity issues.
- Communication Strategy: Establish a comprehensive communication strategy. Designate spokespersons to liaise with clients, employees, regulators, and the media. Maintain up-to-date contact lists and alternative communication channels.
- Continuity of Operations Planning: Create a business continuity plan. Define roles for key personnel, identify alternate work locations, and outline procedures for resuming normal operations promptly. You can download a form plan here.
- Training and Testing: Regularly train employees on disaster protocols. Conduct tabletop exercises and simulations to test the effectiveness of your plan. Review and update it as needed to adapt to evolving threats.
Designating a Custodian
Consider designating a custodian (sometimes called an “assisting attorney”) responsible for implementing and maintaining the disaster plan. The custodian should have the authority to make critical decisions during a crisis and coordinate response efforts across the firm. Memorialize the custodian’s role and responsibilities in a written document to ensure clarity and accountability.
Disaster Planning and Professional Responsibility
Licensed legal professionals in Washington State bear a solemn duty to competently represent their clients. This duty extends beyond routine legal work; it encompasses the responsibility to prepare for unforeseen events that may disrupt normal practice. Let’s delve into specific aspects of these professional obligations:
- Reasonable Diligence and Promptness. Rule 1.3 of the Washington Rules of Professional Conduct (RPC) emphasizes the need for legal professionals to act with “reasonable diligence and promptness” when representing a client. Unreasonable delays can cause needless anxiety and erode confidence in the lawyer’s reliability.
- Protecting Confidential Information. Confidentiality lies at the heart of the attorney-client relationship. Under RPC 1.6, legal professionals cannot reveal information related to a client without their consent. This rule necessitates reasonable precautions to safeguard client information from inadvertent disclosure—even during times of crisis. Losing access to critical documents or data due to a disaster could compromise client confidentiality and trust.
- Document Retention Requirements. Document retention is more than administrative housekeeping; it directly impacts a lawyer’s ability to serve clients effectively. RPCs 1.15A and 1.15B mandate the maintenance of records and documentation related to trust accounts and property for at least seven years.
A Call to Action
The legal profession thrives on preparedness. Disaster planning isn’t a mere checklist; it’s our duty. As we navigate the unpredictable, let us equip ourselves with robust plans, protect client trust, and emerge stronger.
