Leading Entrepreneurship

There is no doubt that law offices are big-time small businesses. The industry is fragmented, meaning that the big players (the top 50 US firms) own only 0.2% of the establishments, employ only 7.3% of the industry’s employees and generate only 13.6% of the industry’s revenues.

At the opposite end of the spectrum, the average self-employed independent attorneys generate just over $61,000 in sales each.

Volume, defined as billable hours, is the crucial measure of a successful firm in the law services field. Looking to complain about hourly billing? Consider this first: The average independent mechanic, plumber, or electrical contractor will all earn at least $5,000 more per year than the independent attorney. Things obviously change in a law firm with a staff; but, in theory, these inflated earnings should provide customers with more comprehensive service and access to a larger, more knowledgeable team of attorneys.

Practice positioning is typically dependent upon reputation, specialty and credibility; the client base is typically local; and promotions are typically composed of referrals (other attorneys, clients and pro bono work), directories (yellow pages and search engines) and advertising (newspapers, magazines, radio and tv).

So if an attorney is working to craft a stellar reputation, bills reasonably and one firm can be a sizable piece of the practice; there is a lot to love about an independent attorney.