Profit First: Hiring Your First Associate Is Law Firm Rocket Fuel
If you’re a solo attorney – whether that’s a true solo (just you & no team) or a solo, with non-attorney staff help – it’s definitely a scary proposition to hire your first attorney . Some solo lawyer s , in fact, never do it . They just can’t get past the fear . But, if you can make that hire, and make it successfully, that’s like adding lighter fluid to the fire of law firm growth. Since law practice is a service industry, that means that you need people putting in hours, in order to make money . If you’re a solo, the ‘people’ of which I speak are: ‘you ’. Without attorney staff, who can bill on your behalf, your income is limited to what you yourself can bill. And, that’s a fairly low ceiling. But, if you can bring one other attorney into the mix, and generate a certain amount of work for that lawyer – you can calculate a profit margin: by defining what you pay that person, and what they can bill out . Since attorneys bill more than any other employee yo
