Lawyers USA Your Business Partner

When I consult with students and clients interested in going solo, I’m often surprised that they haven’t considered the economic health of the country and how it might fit into the design of their business plans.

The economy should not deter attorneys from starting their own practices – quite the opposite. But failing to consider the economy and demographic trends prevents smart business planning when choosing practice areas, physical location and setup.

It is irrelevant what conditions lead you to solo practice. Whether by design or lack of choice, what matters is you are going solo and you need to keep your eye on the ball and your heart in the game.

In order to stay afloat, the smart solo needs to develop competency in more than one practice area, and then develop strategies to maintain and grow those practice areas as the economy goes through this seismic shift.

If you are considering opening your own practice what areas should you consider? Bankruptcy, foreclosures and non-bankruptcy foreclosures are strong practice areas because people with means are leaving their homes due to seriously upside-down mortgages.

Lawyers will be needed in increasing numbers to represent not just those who took out ARMs to buy overpriced real estate but also to represent the mortgage lenders.

In addition, elder law is very fertile ground. Mull over this statistic: It is projected that in twenty years Connecticut will have the same percentage of residents over age 55 as Florida.

In down economies, attorneys are still needed to handle legal matters related to assisted reproductive technology and family formation.

What about immigration? It’s not the great prize it once was because of changes in the law and the economy.

Here are some other practice areas to consider – ones that flourish even in down economic times:

• Family law, which thrives in the wake of long-term economic hardships that fractures fragile families.
• Criminal law, because criminal behavior tends to rise as the “have nots” take from the “haves.” Personal injury, because people will always suffer injuries and seek redress.
• Landlord/tenant, because when people lose their homes they have to live somewhere.
• Business incorporations, because those who are laid off tend to become entrepreneurs in order to feed their families.
• Wills, trusts & estate planning, which thrives in good times or bad because clients want to protect what they have.
• Tax law.
• Debt collection.

Getting paid

One major concern, no matter the practice area, will be how much clients can afford to pay you.

As a solo, your livelihood will turn on your flexibility, and your flexibility will turn on your overhead. If you haven’t economized and downsized, your operating costs will sink you.

By maintaining a virtual office or a high-tech home office, you will be able to ride out a reduction in clients and fees, be able to offer payment terms and write off unpaid receivables.

If you practice exclusively in an area that will be hit hard by an economic downturn, you need to diversify now while you still have an opportunity to reeducate yourself and implement strategies to attract a different client base.

Please don’t confuse me with the grim reaper. Forewarned is forearmed. Too many people stick their head in the sand to avoid harsh realities. Do not marry a practice area (unless you are already ensconced and recognized for your niche and that niche will survive regardless of the economy).

Talented lawyers are trained to collect information, process information and reformat that information to benefit a client. Apply this training to those areas of law that will enable you to keep your livelihood.

Smart business people don’t fight the tide. They find a way to stay afloat and survive. And the truly savvy profit.

An attorney who started her own practice right out of law school, Susan Cartier Liebel authors the blog Build A Solo Practice, LLC and is the founder of Solo Practice University(TM), a web 2.0 based educational and professional networking community for lawyers and law students who wish to go solo.

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