“Depending on where they graduated from, attorneys often don’t take advice. It’s either beneath them or they think they are the smartest person in the room,” says Sciambi. Lawyers studied law, not business, so many lack a strong business foundation.
That chasm in the average lawyer’s knowledge about business can also prove troublesome if they advise entrepreneurs about running their enterprises, Sciambi says.
In other words, “small business owners are often counseled incorrectly,” he says.
Who's at Fault?
If attorneys, in general, don’t possess a strong foundation about running a small business, whose fault is it?
“Law schools should do a better job preparing lawyers to be entrepreneurs," according to Sciambi. "Most law schools prepare law students to work at big firms but it’s not best for a new lawyer to go right into solo practice (right out of law school) because law schools don’t teach the nuances of running a business.”
Ed Walters, CEO of Fastcase, says big law firms also share some responsibility for attorneys with poor business acumen. “Law firms should do a better job understanding what legal matters cost.
For example, if you use the same document over and over, you know how much it will cost” to reproduce it, he says. Therefore, it would be easy to attach a fixed price to the service.
Offering flat fees for certain legal services would go a long way to altering the legal landscape because it would mean clients come first, he says. And, says Walters, clients should come first.
Walters says despite the great need for legal services in the United States, many people do not contact an attorney for fear of the unknown costs. That makes the legal system inaccessible for many Americans.
Tips for Improving How Lawyers Do Business
Both experts offer attorneys suggestions for improving the way they run their small or solo law firms so that clients are happy and the firm generates a solid income.
Walters’ top tip focuses on client surveys. He suggests asking clients for feedback about why they hired the firm or lawyer in the first place. “That helps you learn why clients chose an attorney,” he says.
While it may not seem as daunting to seek feedback from people who retained the firm, Walters says not to stop there. “Ask people who didn’t retain you why they didn’t,” he says.
Related to seeking feedback is the need to also “listen to the answers,” he says. In other words, heed the advice and comments people have offered.
In Sciambi’s mind, cash flow is the key to running a successful solo or small law firm. “Number One is learning how to manage cash flow. It’s also two through five and six through ten,” he says. Once managing cash flow has been mastered, the next step to running a viable law practice is finding new clients.
Sciambi’s suggestion for that is to “find a niche.” Gaining and building on a reputation as a specialist helps establish the lawyer as the “go to” attorney in a specific area of law. Last but not least, Sciambi says lawyers need to learn how to collect their fees from clients.
“You have to be able to sustain yourself but you need clients first. Most lawyers aren’t taught how to market themselves. Determine who you are and how you can help people,” he says.
Tami Kamin Meyer is an Ohio attorney and writer.