Challenges Faced by Solos and Small Firms & How to Overcome Them

Running a solo practice or a small law firm can be daunting. It can also be extremely rewarding. As you will quickly realize, just being a great attorney is not enough to succeed in the business. You have to spend your precious and limited time wisely. You must learn to hand off tasks to the talented people around you. You have to market yourself and persuade strangers to hire you over your competition. Finally, you have to set reasonable expectations with your clients so that they are satisfied with your work and become future referral sources.

This article is aimed primarily at lawyers who recently opened up their own practice. This article is also helpful to those who have had a solo practice or small firm for a while.

Spending Too Much Time on Administrative Tasks

When you are a solo, you wear many hats. You handle the marketing, networking, bookkeeping, etc. Oh yeah, and the lawyering. It can be overwhelming. When cash is tight, you have to bite the bullet and do everything yourself. But at the first opportunity, get help!

The rule of thumb to use when considering hiring outside help is— Would you pay your hourly rate to perform X administrative task? Of course not. If you ask yourself this question every time you are scheduling meetings, doing client intake, or summarizing voluminous documents, the answer will be clear.

In the post-Covid world, it is easier than ever to find contract attorneys, paralegals, and support staff who work remotely on a part-time or per-project basis. And for every time- consuming administrative task that a solo encounters, there is sure to be an app that will easily save you time and money.

If you are still not convinced, think of it this way. You can use the time that is freed up to perform more billable work, go to a networking event to get more business, or hang out with your family.

Staffing

Finding wonderful staff is easy, if you know where to look. Rather than posting a job opening online, consider approaching local paralegal programs or community college legal studies programs for part-time candidates. These students have a desire to get into the field and are motivated to learn and excel. You can also find potential candidates by asking your colleagues. They may know someone who is looking for a new role.

When hiring a part-time staff member, be flexible. A candidate is not going to commute an hour each way to work a three- or four-hour shift. Working from home, or a hybrid model, should be an option for them. Be creative. If a colleague has a great helper but does not have enough work for them, you can jump in and give them some extra hours.

Competition From Other Firms or Alternative Services (Like Legalzoom and Rocket Lawyer)

A solo is never going to have the marketing budget of large law firms and corporations. You are never going to outspend them. You need to market yourself differently. When competing with bigger firms, explain how you are different. You are going to work on the case yourself. You live and work in the same community as your client. You charge less for superior work.

When competing with alternative services, it is important to convey that a local licensed attorney’s work product is far superior and effective than those websites that cheaply crank out leases, LLC formation filings, and trusts with the click of a mouse.

There are many effective ways to market yourself without breaking the bank. Join a professional networking group and attend local bar and chamber of commerce events. Volunteer to speak at civic group lunches. Grab a colleague or two and speak at a library together. The key is to get yourself out there and establish genuine relationships.

Managing Client Expectations From Intake to Communication

Managing your clients’ expectations is crucial to running a successful practice. The consequences of not managing their expectations run from an unhappy client (at best) to bad online reviews and State Bar complaints. The first conversation with the potential client can reveal a lot. Do they want to schedule the call at an odd hour? Are they easy to reach? What method of communication do they use? Do they repeatedly ask you to promise a certain result or outcome? Are their expectations unrealistic? Based on this conversation, you can decide if they are going to be a good fit.

In that first conversation, you need to let them know your fee and what you are able to achieve (and not achieve). Give them a rough timeline. There is a strong desire to tell the potential client what they want to hear in order to win them over. Tread carefully.

During the course of your representation, you may notice that your client’s expectations, whether it be about your fee, how quickly you respond to their inquiries, or the ultimate case result, are unrealistic or unreasonable. You should quickly contact your client and assertively address their concerns. Do not procrastinate. The longer the issue is left to fester, the more likely your client will assume you agree with their expectations.

At some point, it may become clear that you and your client do not see eye-to-eye on important issues. The issues may be critical enough that you have to consider withdrawing. Just as your client has the right to fire you, you have the right to fire your client. Obviously, this option should be your last resort. If you choose to stick with your client until the bitter end, remember to learn from the awful experience.

The key to client expectations is communication. Talk to your clients. And more importantly, listen.