The devastating financial fallout of the COVID-19 crisis has exacerbated law firm dissolutions and key attorney separations. Firms that were overleveraged, undercapitalized, poorly managed or otherwise unable to adjust to revenue slowdowns have failed outright or have found themselves struggling to adapt. Stakeholders, whether partners or shareholders, have been forced to consider their professional options, including voluntarily (or involuntarily) separating from their firms.
We have counseled dozens of firms and attorneys with respect to professional transitions over many years. In our experience, our attorney clients who successfully forged new careers have followed these five suggestions.
Consider Your Options While Your Practice Is VibrantThe thought of uprooting your practice and starting over, either in another firm or on your own, is incredibly daunting. Attorneys, by nature, are creatures of well-honed habits. Consequently, you may find yourself succumbing to inertia and waiting until your firm literally is falling apart before planning your future.
This inactivity is a huge mistake, as it is impossible for a practice to thrive in a failing environment. Instead, the consequences of business failure—e.g., working with limited and dwindling resources, dealing with professional and staff departures and the resulting impact on clients and cases, and attempting to manage a caseload despite the distraction of pressing administrative and financial issues—erode the time and energy required for an effective practice. While the icon of the “last man or woman standing” may play well in survival video games, it can be an unmitigated disaster in a failing law firm. If you have considered the issues facing your firm (and the impact on your practice) and have not been able to resolve them, then consider moving on before these issues degrade your career.
Know What You Are ‘Selling’ and Sell Your StrengthThis next step requires a critical and honest self-evaluation:
- What is the strength of your current practice?
- How many clients are likely to follow you to another firm or take a chance with you if you choose to start your own firm?
- Have you evaluated potential conflicts of interest if you affiliate with another firm?
- How many other professionals and support staff will you need to service your clients and at what cost?
- If you intend to start your own firm, how will you finance it? Do you have a rudimentary business plan?
Our most successful attorney clients all had one very important factor in common—a thoughtful plan to focus their practice in an area of strength serviced by as few professionals and staff as needed. They jettisoned marginal or declining practice areas and deferred plans to expand into others. This disciplined approach stresses focused practice...
