Originally published on October 12, 2009 in our free SmallLaw newsletter.
My editor at TechnoLawyer suggested I write a SmallLaw column with a positive "Yes We Can" theme. Let's see:
With the economy in the toilet and legal jobs nonexistent, is it any wonder that a growing number of unemployed lawyers have lost hope? More than ever, the promise of a fulfilling legal career seems remote.
Even talented lawyers find themselves scouring help wanted ads, trolling bar association meetings, or feigning interest in one another's lives on Facebook just to make contacts.
But thanks to the rising number of not-for-profit companies now there is hope. Thoughtful lawyers are taking advantage of prolonged periods of unemployment to reassess their goals and consider work that offers not just sustenance but inspiration. These giving individuals are willing to volunteer their time or take low-paying positions for the good of the community.
There's just one problem — large firm partners pushed out of their firms with a golden parachute are lobbying for prime non-profit jobs and getting them as a stepping stone to their next position or a show of social conscience. As a result, associates and solos are out of luck, just like before the recession.
Okay, That Didn't Turn Out as Inspirational as I Had Hoped
Let's try a different approach:
Many recent graduates, unemployed associates, and displaced mid-level lawyers, are concerned about what they read in the press. But there's no need to worry. The legal job market is simply experiencing a long-overdue correction. Once the excesses of the last decade work themselves out, legal hiring practices will return to normal and America's law firms will be healthier than ever.
For example, since late 1990s, salaries at AmLaw 100 firms have spiraled out of control. During the same period, corporate America has grappled with two recessions, a fiscal crisis, relentless outsourcing, and the crushing effect of globalization on its bottom line.
Because large firms depend on its clients' ability to pay without regard to the outcome of the case, the value rendered by the firm, or the logic of paying $1,000 per hour, these excesses didn't register until all the money was gone, leaving companies to explain to shareholders why they allowed lawyers to charge $700 dinners against bottomless expense accounts. But as companies return to profitability, global law firms will return to business as usual. Experts agree it could happen in as little as three more years.
No, That's Still Not the Right Tone
Maybe it's not what I'm saying but the way I'm saying it.
There's no magic formula for practicing law, and no magic at all in being a small firm attorney. It has always been about hard work and sacrifice. But today we have a chance to eat the lunch of our large firm counterparts. Why? Because people need lawyers more than ever. It's just that they have less ability to pay.
We small firm managing partners must meet our target market half-way. Squeeze out all the productivity and efficiency, and when possible reduce fees — if only temporarily — to acknowledge the reality of our times. This strategy requires keeping costs low, reevaluating spending and hiring choices, outsourcing as many nonessential functions as possible (without sacrificing quality), and most of all ridding ourselves of distractions so we can focus on practicing law.
Start with these three steps:
1. Jettison Excess Overhead
When in doubt, rent. Rent equipment, rent space, outsource tasks, employ independent contractors, whatever. And the shorter the term of that relationship, the better. Unless you host clients on a regular basis, why buy the image? If anyone asks, tell them that you'll pass the savings onto them.
2. Manage Your Practice on the Web
Put your practice on the Web using a secure SaaS provider such as Clio and get back to business. After that, think about using online marketing tools, many of which cost nothing but your time.
3. Buy What you Need
You will be assaulted by smooth talking sales types who push you to buy more than you need. Your defense? Don't shop alone. Run decisions by someone who won't be dazzled. Whether it's litigation software or an Internet connection, get consensus up-front. For example, I decide what we need at the office, but my wife tells me what we can afford. That's a working relationship.
United We Stand, but Is Division Our Destiny?
With the economy in free-fall, now is not the time to be divisive. Solos and small firms should cooperate to ensure mutual benefit. If my SmallLaw columns sometimes appear critical of my fellow small firm attorneys it's not from a lack of respect. Quite the opposite. I'm just as hard on myself because I know we can all do better.
And more than that — I know the legal market belongs to small firms and sole practitioners. If only we could see that. We don't need phony volunteerism, bar association politics, or more overgrown law firms. We simply need to communicate and share our best practices with one another. But I fear that may never happen. And I think that's a shame.
Written by Mazyar M. Hedayat of M. Hedayat & Associates, P.C.
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