Should You Solo Right Out of School?

Letter to a Law Student
By Jim Calloway, Esq.

In reply to a student’s online post about solo’ing right out of law school, law practice management expert Jim Calloway, writes:

“ … There are no shortage of ‘experts’ who would urge you to jump into solo law practice right after graduation, or people like myself who would urge you to be cautious. There is much to recommend the lifestyle of a solo practitioner. But the question is, ‘What is the best way for you to get there?’ I strongly disagree with your suggestion that if solo’ing after graduation doesn’t work out, you can always try to get a job. That simply doesn’t reflect real life or the marketplace. In my opinion, your employment chances are far greater right out of law school than if you were to apply after a year or two of solo practice. There are always exceptions to the rule, but, generally speaking, if you open a solo practice right out of law school … and then apply for positions a year or two later … you may be viewed as someone who didn’t succeed with the practice. Not only by the large firms, but many medium and small firms as well.

“I would be more optimistic if you said that you were going to move back to your hometown … or to a smaller city … to do family law, bankruptcy law, or to set up a general civil practice. But moving to (a large city in the Southwest) to do real estate and environmental law when you have almost no experience, no contacts, or potential clients, is a tall order. Certainly it can be done and it has been done, but the difficulty in doing it today is more than it was a decade ago or even a couple of years ago.

“The problem with starting a new solo law practice right out of law school is that you combine all of the challenges of starting a new business with a great deal of theoretical knowledge but little idea of how to do many legal tasks from beginning to end. A couple of years spent learning how to do some things, and then developing some client relationships (some of whom might even follow you to the new solo practice when it opens) could greatly increase your chances for success when you do open your law practice. So, if your ultimate goal is to set up a solo practice with a focus on real estate and environmental law, one way to get there might be to focus your job hunt on firms that do that sort of thing in your (target) city. And don’t limit it to the larger firms that interview at the law schools. There are a lot of great opportunities with firms of 20 lawyers or less.

“… I don’t mean to sound like a wet blanket, but I thought you deserved a more balanced response. My point is that no one with a large student loan debt, and no client prospects, should turn down a decent job offer right out of law school if one is forthcoming … and it doesn’t have to be a six-figure salary either. (If you do decide to solo), the amount of starting capital will be a huge factor. It is possible to start on a shoestring, but it’s more comfortable not to have to do so. Even for the lawyers I counsel who open a new practice in the small town county seat towns of Oklahoma, I suggest a minimum of $20,000. It would be a lot more in your city, and it’s doubtful you would get a bank or SBA loan without pledging collateral.

“Just my opinions, along with my wishes for success with whatever path you choose.”

– Jim Calloway is director of the Oklahoma Bar Association Management Assistance Program