The Pros & Cons of Solo’ing

Are You the Solo Type?
By Carolyn Elefant, Esq.

“Think carefully about whether you’re the solo type. Not only should new grads prefer to be their own boss, they must also be disciplined for it. The legal and business requirements will come with time and effort, but to be a successful solo comes down to an ability to be one’s own boss, and to feel confident enough to put your money and future on the line.” – Scott Wolfe, solo

Many new grads feel that if they want to establish their own practice eventually, then why not solo right out of law school? And some do, and they go on to build a lucrative practice. But is it the best choice for you?

It depends.

If you’ve come to law from another career, starting your own firm right away might make sense. You probably have existing business contacts who could serve as clients, and your financial situation is no doubt more secure than that of a new grad. Also, fair or not, law firms often discriminate against older or second-career lawyers, preferring to hire younger and, presumably, more impressionable graduates.

But if you come to law as a first career, there are different issues: it’s not so much your lack of practical experience. After all, many lawyers employed for years at a large firm or a government agency have most likely never filed a complaint, served a subpoena, or taken a deposition on their own. What new graduates usually lack are the references, the social contacts, the connections, the professional exposure, and the reputation that a previously-employed attorney has developed through legal networking, participation in bar associations, and writing articles. Such activities, far more than actual work experience, matter most when a young attorney starts a practice. Even a good word from a partner at a prestigious law firm, or a judge for whom you’ve clerked, might help you bring in a contract work to pay your bills while you work on drumming up a client base. In my own case, some of my earliest referrals, including a couple of appeals at the DC Circuit, came from an energy attorney whom I had helped a couple of times while working at a federal agency. When I started my practice, he returned those favors many times over by sending assignments my way.

While solo’ing directly out of law school has undeniable heroic appeal, the young new lawyers who spend even a year or two at a post-law school job reap other benefits:

For starters, there are financial considerations. Because the results of the summer bar exam typically don’t issue until fall, lawyers solo’ing right out of school lose a couple of months while awaiting admission. By contrast, most clerkships and government or law firm jobs don’t require bar admission, which means that by late August a new graduate who’s accepted employment can start collecting a paycheck and get a jumpstart on paying down student loans. Furthermore, by working for a year or two and living frugally, you can put a considerable dent in your student loans, relieving the financial pressure one typically experiences in the early days of solo practice.

Moreover, law firm jobs and clerkships give young attorneys many opportunities to learn about practicing law, even if they don’t provide any hands-on experience. A new graduate who clerks for a trial or federal district court has the chance to make contact with local attorneys and to observe their different courtroom techniques. And clerks on the appellate level, through their review of countless briefs, gain a solid feel for what qualifies as persuasive legal writing.

Even grinding away as an associate, frantically tracking down obscure case law for a minor point in a 100-page memo … or proofing a document several times over … can teach skills that you’ll use in solo practice. Working at large firms trains lawyers to meet deadlines and work accurately under pressure, and helps them develop an instinct for distinguishing between the tasks that impact the outcome of the case and those that are just busy-work designed to build up hours. As a result, when former BigLaw associates eventually go solo, they can tackle sophisticated matters and deliver the same top results at a fraction of a large firm’s cost simply through their ability to prioritize tasks and focus on the essentials for getting the job done .

So if you’re a new graduate who can’t wait to get started on your own, weigh very carefully whether taking a position even for a year or two might help you attain even more success in the long run. Here are some pros and cons:

The PROS:

No golden handcuffs – When you solo right out of law school, you don’t suffer the loss of a six-figure income, or the sacrifice of such BigLaw perks as a secretary, BlackBerry, and expense-account that comes with firm life. As an ex-student, you’re already accustomed to living frugally, and more likely to take in stride such cost-cutting sacrifices as sharing an apartment with roommates or subsisting on top ramen noodles until you get your practice off the ground. Moreover, with the exception of your student loans, you’re less likely to have the sort of major financial expenses – e.g., mortgage, car loan, family health insurance policy – that often deter more settled lawyers from starting a law firm later on.

It may be the best option – Solo’ing right out of law school makes sense if you can’t find a job as a lawyer. After three years in law school and passing the bar, you are fully qualified to practice as a lawyer. So, why waste your newly acquired skills working as a paralegal, or – if you’re a second-career lawyer – returning to a position where a law degree isn’t required because it’s the only job you could find? Better to start your own practice now, and get your money’s worth out of your law degree.

It’s easier to seek help – As a new grad, you’re less likely to feel awkward asking for help, or seeking out mentors than more experienced lawyers who might feel some embarrassment about reaching out for support.

The most direct route to what you want – Some argue that if you’re really certain you want to start your own law firm right away, working for others only postpones the dream. And there’s some logic to that: after all, if you take a law firm job and resent it, you might perform badly and get fired.

The CONS:

Financial pressure – Even without a mortgage or other financial burdens, you may still have as much as $100,000 or $150,000 in student loans. And while you can defer – or spread out – your loan payments, there is no escaping the reality that your new solo practice will need to generate revenue right out of the gate. In this situation, you may feel pressure to take on unattractive cases or large amounts of low-paying, document-review projects just to pay rent. By contrast, if you work for someone else for a couple of years and live frugally, you can make a substantial dent in your student loans before opening your practice. And don’t forget, many schools now provide loan-forgiveness for grads going to government sector or legal aid groups (in some cases, as much as $5,000 or $10,000 a year), so you needn’t feel compelled to work for BigLaw to start paying down your loans.

Lack of contacts – You need time to build up an established network of professional contacts to serve as a source of referrals and references. In fact, it’s generally accepted that most new solos need as many as three years to establish a network (which is why most new solos don’t truly hit their stride until their third year of practice). By contrast, if you start your legal career working for a firm, the government, or some other employer, you can use the time for networking – participating in bar activities, attending conferences, and meeting other lawyers through your job. Then, when you’re ready to start your own practice, your network will have been set up.

You may not be taken seriously – Most clients don’t ask or particularly care about how much experience you have. But other lawyers are more particular; they may inquire about your level of experience when considering whether to refer you cases or to hire you for contract work. The fact is, many lawyers hesitate to refer good cases to a lawyer straight out of school because they have no assurance the work will be performed competently. But if you go to work for a few years, particularly for a well-known firm or judge, other lawyers may feel more comfortable about sending you cases, and then – from time to time – you can ask for a referral from your former boss.

No safety net – If, despite your best efforts, solo’ing doesn’t work out, or you don’t enjoy the solo experience, it will be much tougher to find law-related employment without references from a prior employer (unless you can bring a significant amount of business to a new firm). As unfair as it may be, potential employers may assume that you started a firm directly out of law school because you couldn’t find a job. By contrast, most lawyers who’ve previously been employed can generally find another job more easily even after having spent several years as a solo. Bottom line: if you want to leave yourself some options for other careers in the law down the line, you’re better off working a few years for others before starting a firm.

– Excerpted from Solo By Choice: How to Be the Lawyer You Always Wanted to Be (Carolyn Elefant, 2008).