Thinking Of Going Solo? Questions Lawyers Should Ask Before Starting Their Own Practice

Thinking About Going Solo?

When you are thinking about going solo, there are obvious questions that go through your mind.

Things like:

Can I do it?

Can I really do this?

Who will send me work?

Who will send me clients?

I have no idea what to do.

I have no idea how to do it.

Do I have enough experience?

What do I have to do?

How much will it cost to set up?

How much do I need to make?

Will I be able to make as much as I was making before?

How much money will I actually make?

How long before I start to be able to pay myself?

What area of law should I practise in?

Do I need an office?

How do I set up?

What other things do I need to set up?

What locality do I set up in?

I want work-life balance, but I also want a viable financial practice.

These are the basic questions we have all asked of ourselves.

They are the questions that come up at the beginning and they are the questions that need to be thought through properly.

Mindset

You need to have a clear mindset.

You need to shift from practising law to running a business.

That is not for everyone.

You need to think about whether you are ready to run a business, not just practise law.

Technology And AI

In this day and age, you need a very high level of technological competency.

That is especially so with respect to AI.

AI adoption is now a whole issue in itself.

You need to think about how AI affects the way you practise, the way you price, the way you manage work, and the way you run the business.

Financial Management

You need the ability to financially manage your own business.

You also need to understand the accounting and the money management side of it.

That means understanding:

• money in

• money out

• cash flow

• workflow

• start-up capital

• savings

• overdraft

• backup capital

You need enough start-up capital.

You also need sufficient access to overdraft, backup savings or capital to smooth out cash flow and workflow issues.

Overheads And Budgeting

You need to know what your overheads are and be able to prepare a budget for them.

You need to know which overheads are:

• recurring

• fixed

• upfront

You need to constantly monitor them, review them and make sure you do not cut into the muscle of heavy lifting required of a law practice.

Most importantly you also need to make sure you do not have too much fat - which is uncessary to running an efficient practice.

Pricing And Collecting Fees

You need the ability to price and know how to price work.

You also need to know how to collect fees.

You need to think about pricing in this day in light of the age of AI and fixed fees.

Pricing is a major issue.

Collecting is also a major issue.

Clients And Referrals

You need the ability to attract clients.

You also need to think about:

• maintaining clients

• referral agents

• who will send you work

• who will send you clients

You also need to think about which clients you are going to take on.

What does your ideal client look like?

Niche And Positioning

You need to think about niching, being known for something and about referrals and think about how important it is to target what you do.

You need to be known for something.

You need to think about:

• your unique value proposition

• what area of law you are going to specialise in

• who you are

• what you do

• and as I said before what you want to be known for

Case Management

You need to think about client relationships and case management.

That includes:

• the client management software you want to use

• your overall client service philosophy

• the overall approach to taking on clients

You need to decide how you are going to manage the work as well as how you are going to manage clients.

Cybersecurity

Cybersecurity is a huge ongoing issue.

It is something that needs to be present in your thinking from the beginning.

Office, Virtual Or Serviced Office

You need to think about where and how you are going to practise.

Are you going to be:

• physical

• online

• virtual

• in a serviced office

• a combination

What is it going to be?

How is it going to work?

Admin Support

You need to think about admin support.

In the short term, you may not need admin support.

But eventually, what are you thinking?

What Is Your Vision For The Business?

Are you staying solo?

Is it a lifestyle business?

Is it something else?

Work-Life Balance

You need to think about work-life balance.

You need to think about whether the business will allow you to properly look after yourself.

You may have work-life balance because you do not have enough work.

Or you may burn out because you are burning the candle at both ends.

Both are issues.

Trust And Office Accounting

You need to think about trust and office accounting.

Are you going to use a trust account?

What does that involve?

What accounting systems do you need?

What do you need to understand before you start?

Insurance And Regulatory Requirements

You need to think about insurance.

That includes:

• professional indemnity insurance

• normal insurance

• regulatory requirements such as licensing and practising certificates

You need to know what you need to do to get an unrestricted practising certificate.

You also need to know what your professional association requires of you to be able to move forward.

Entity Formation And Planning

You need to think about entity formation.

You need a business plan.

You also need a clear marketing plan.

You also need a budget.

You need to think about how the business is actually going to be set up from a legal business structure perspective.

Risk

You need to focus on the risks of the business.

That means looking at:

• strengths

• weaknesses

• opportunities

• threats

You need to understand the risks properly and constantly assess and reassess them.

Wearing All The Hats

You need to think about the many hats you are going to wear to start off with:

At the beginning, you will be:

• CEO

• marketing

• administration

• IT manager

• debt collector

• lawyer

Growth Mindset

You need a growth mindset.

That does not end just because you have started the business.

You need to keep thinking about the business, about where it is going and about what it needs to become.

Final Thoughts

Going solo is not just about practising law.

It is about setting up a business.

It needs clear thinking.

It needs financial management.

It needs technology and AI competency.

It needs clients.

It needs systems.

It needs risk management.

It needs a clear view of what you are trying to build.

And it needs you to be honest with yourself about whether you really want to run a business, not just practise law.

We work directly with solicitors, barristers, and consultant lawyers on the decisions that shape an independent practice - structure, positioning, pricing, systems, capacity, financial control, AI use, and strategic direction.

This is practical, experience-based advisory work for lawyers who want a stronger, better-run practice and clearer judgment about what needs to change next.

You can work with us through a Strategy Session or a Solo Law Firm Tune-Up.

We also offer practical tools, guides and webinars for lawyers who want to get on top of these issues properly.

Details are on www.paulippolito.com.au