This Week In Legal Tech: Survey Sheds Light On How Solos Differ
Ever wonder what solo practice would really be like? A new survey offers interesting insights.
Ever dream of breaking out and starting your own solo practice? Be your own boss? Take charge of your own cases? Do you ever wonder what solo practice would really be like?
While not a definitive portrait, a survey of practice management in firms of one to 29 lawyers sheds light on solos and how they differ from other small-firm practitioners. The survey was conducted by Thomson Reuters Solo and Small Law Firm group, which gave me exclusive first-look access to the results.
In an earlier post here, I gave an overview of the survey, and in posts at my own blog, I covered what the survey found about small firms’ greatest challenges and what they’re doing to address them, how small firms measure success, and the kinds of technology small firms are using.
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A striking revelation of the survey is that solos stand alone, figuratively as well as literally, in almost every category covered. Survey results are broken down by firm size: solo, 2-6 lawyers, 7-10 lawyers, and 11-29 lawyers. Across the board, solos’ responses consistently differ from those of lawyers in any of the other sized small firms.
Let me offer some observations, drawn from the survey, of how solos stand apart.
Solos are more concerned about pro se competition. When asked where they see most of their competition, 26 percent of solos say it is individual consumers representing themselves pro se and 20 percent say it is do-it-yourself websites. Responses by lawyers at other sized firms come nowhere near to this level of concern about pro se and DIY competition. At firms of 2-6, only 13 percent identify pro se consumers as sources of competition, and no one does at firms of 7-10 lawyers.
Solos spend the most time with clients. Solos spend 16 percent of their time meeting or speaking with clients. That is double the 8 percent spent by lawyers in firms of 7-10 and 11-29, and five points more than the 11 percent spent by lawyers in firms of 2-6.
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Solos spend the least time practicing law. The survey identifies practicing law as a separate activity from meeting with clients. Solos spend 55 percent of their days practicing law, whereas the percentage goes up as firms get larger: 62 percent in firms of 2-6, 68 percent in firms of 7-10, and 69 percent in firms of 11-29.
Solos spend more time managing. When it comes to managing the firm, marketing the firm, and dealing with administrative tasks, solos spend more time than other small-firm lawyers – but not by much. For these various management tasks combined, solos devote 29 percent of their time. That compares to 27 percent for 2-6 lawyers, 24 percent for 7-10 lawyers, and 23 percent for 11-29 lawyers.
Solos are most likely to practice family law. Twenty-two percent of solos say their primary practice area is family law, and 36 percent say it is one of their top practice areas. Family law practice drops off as firm size grows: Of lawyers in firms of 2-6, only 7 percent list it as their primary practice area, in firms of 7-10, 4 percent do, and in firms of 11-29, just 2 percent do.
Revenues for most solos are under $200K. Sixty-seven percent of solos say their revenues are under $200,000, with 28 percent saying they are less than $100,000. Because the survey reports firm sizes as ranges, it is impossible to compare that against revenues per lawyer in other small firms.
Solos mostly represent individuals. Solos report that 62 percent of their revenues are from individuals and 27 percent are from businesses. For firms of 2-6, the split is 47 percent from individuals and 39 percent from businesses. For firms of seven and higher, businesses account for the greater percentage of revenues – 60 percent for firms of 7-10 and 54 percent for firms of 11-29.
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Solos’ highest priority is community reputation. When asked about goals and priorities for their firms, the most common answer given by solos – 51 percent – is enhancing their reputation in the local community. Only 40 percent of lawyers in firms of 2-6 and 7-10 list this. By contrast, the highest priority of those in firms of 2-6 – listed by 75 percent – is increasing their business development and marketing, whereas just 34 percent of solos list this.
Solos have greater focus on efficiency. The survey asked lawyers to identify the three most-positive factors in their firm’s performance in 2015. By a wide margin, the most common answer given by solos was that they had focused on becoming more efficient. While 51 percent of solos gave this answer, just 29 percent of lawyers in firms of seven or more did.
Solos are least likely to use advanced technology. Across most categories of law office technology, solos are least likely to be users. The differences are often dramatic. For example, while 95 percent of lawyers in firms of 11-29 use time and billing software, just 51 percent of solos do. Other technologies that solos use much less than other small-firm lawyers include case/matter management, financial management and accounting, document management, conflict checking, rules-based calendaring, customer relationship management, e-discovery, e-billing, and collaboration tools.
Most solos consider themselves successful. One way solos differ only slightly from their small-firm peers is in judging their own success. When asked to characterize their firm’s success, 36 percent of solos said they were very successful and 42 percent said they were successful. Eight percent described themselves as not successful and 14 percent said they were neither successful nor unsuccessful.
These responses are comparable to those of lawyers in other small firms. Across the board, 36 percent say their firms are very successful and 49 percent say they are successful. Only 4 percent say they are not successful and 11 percent say they are neither successful nor unsuccessful. Although that 8 percent of solos who called themselves unsuccessful was much greater than for any other sized small firm, it is encouraging that more than three quarters of solos consider themselves successful.
So there you have it. If you are thinking about going solo, this Thomson Reuters survey provides some insights into what you can expect your practice to be like.
Earlier: This Week In Legal Tech: Exclusive Results Of A New Small-Firm Survey
Robert Ambrogi is a Massachusetts lawyer and journalist who has been covering legal technology and the web for more than 20 years, primarily through his blog LawSites.com. Former editor-in-chief of several legal newspapers, he is a fellow of the College of Law Practice Management and an inaugural Fastcase 50 honoree. He can be reached by email at ambrogi@gmail.com, and you can follow him on Twitter (@BobAmbrogi).
