Robert Zochodne Click here to see full sized version.

The Law Society of Upper Canada’s report of the Task Force on Sole Practitioners and Small Firms suggests that sole practitioners often feel isolated from other lawyers, suffer from lack of mentorship opportunities, are financially stressed by rising overhead costs, and emotionally taxed by the larger share of administrative work they bear in addition to practising law. This might make some lawyers unsure about the wisdom of starting their own firm, but, with proper planning and goal-setting, it is possible to have a thriving sole practice.

Robert Zochodne, a lawyer in Oshawa, Ontario, says it’s important to plan before you hang out your shingle. After practising in a small firm for 23 years, he has now decided to become a sole practitioner. “My bookkeeper and I developed a budget and a plan for expenses, so there would be no surprises.” Zochodne also recommends practising in a firm before striking out on your own. “It helps to have an established client base and existing files to lessen the financial impact.”

Diana Miles, the Law Society’s director of professional development and competence, says that the Law Society is working hard to address the concerns of sole practitioners. She agrees that planning is the key to developing a successful practice and avoiding pitfalls. “A business plan is critical,” she explains. “It is vitally important to plan for budgeting, marketing your services, and for absences, including vacations.” A business plan should include a mission statement; an operating plan that describes your overhead and what equipment you’ll need; a financial plan that describes what your projected income is and how you plan to achieve it; a marketing plan, and a long-range plan describing where you expect your business to be in five years.

Miles suggests lawyers start with the excellent resources available on the Law Society website. “Most, if not all, of what we do in the Professional Development and Competence section is geared to the small firm or sole practitioner. The big firms already have their own infrastructure for professional development, so we create our programs with the small firm in mind.” For example, LSUC has recently developed a program where mentors representing eight areas of law provide advice to new lawyers. Miles explains, “Contact us and we’ll arrange for you to speak with an experienced practitioner in that area of law, who will help you with substantive law issues.” The LSUC website has a section devoted to small firm issues, with many precedents and practice tips, as well as sample business plans.

Other law societies across the country are also addressing the concerns of the sole practitioner. According to Brad Daisley, public affairs manager for the Law Society of British Columbia, more than 50 per cent of B.C. lawyers practise in firms of five or fewer, and outside the major urban centres, sole practitioners provide most services. “The sole practitioner is really the backbone of the profession,” he says. In recognition of this, the Law Society of British Columbia has created an online Small Firm Practice Course to help with specific challenges. The course features several modules dealing with topics ranging from bookkeeping and office management issues like trust accounting; GST; and employee deductions, to practical issues such as how to arrange for someone to cover your practice during your absence, how to recognize conflicts and avoid fraud, and how to manage difficult clients. The course has been well-received, and Daisley says, “we even have a significant number of lawyers taking the course who aren’t required to — simply because the course was designed to provide the information small firms want, and they are finding it useful.”

The financial and administrative issues facing sole practitioners can be daunting. Zochodne suggests sharing space with other sole practitioners in the same building to alleviate some of this pressure. “If you share space with other lawyers and have a shared receptionist, it becomes less of a challenge to cover vacations and avoids having staff left alone when you are away, and it reduces your overhead.”

If you don’t have the opportunity to share space with other lawyers, there are other ways to make your practice financially viable. The Task Force report indicates that many smaller communities are under-serviced. This provides a ready-made client base. Many new lawyers develop their practice by taking legal aid cases. Deborah Hastings, area director of Legal Aid for Durham Region and executive director of the Durham Community Legal Clinic says: “Taking Legal Aid cases is a way for new lawyers to gain experience in the courtroom as well as exposure to other lawyers, judges and court staff. A new lawyer can build up a client base with legal aid clients — there is no shortage of clients in the legal aid system.” And although the pay is lower than a lawyer’s private hourly rate, Hastings says, “in our profession, we are here to help people in need, and clients on Legal Aid certificates are in need of access to justice. It’s a way to give back to the community, as well as a terrific way to learn. Even if you are a young lawyer, you can still give back.”

Getting your name known in the community and within the profession is essential to the development of a successful practice. Diana Miles reminds lawyers to keep taking continuing education courses. “It’s important not just for maintaining your competence,” she explains, “but also for networking, and to combat those feelings of isolation. You get to meet other lawyers who are in the same practice environment, and you can learn from each other about what works and what doesn’t.” Miles also suggests that new lawyers should take a course in personal marketing, since new lawyers often feel awkward about basic self-promotion such as handing out business cards or introducing themselves to potential clients.

The Task Force report wasn’t all doom and gloom. Many sole practitioners are happy with their practices, and appreciate the independence, work-life balance and ability to network within and serve a small community. With a little strategic goal-planning and wise use of available resources, hanging out your shingle can be profitable and enjoyable.