Small Law Firms

Million-Dollar Solos

Lessons in building your seven-figure firm.

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If you thought that Biglaw was the sole path for lawyers seeking a seven-figure income, think again. In today’s Internet age, there are plenty of solo entrepreneurs taking home a million dollars a year or more as journalist Elaine Pofeldt documents in her recent book, One Million Dollar, One Person Business. While Pofeldt’s book doesn’t discuss million dollar solo lawyers specifically, there’s no reason that the lessons from the case studies that Pofeldt presents couldn’t apply with equal force to lawyers.

As Pofeldt emphasizes, the digital age has spawned the fast-paced rise of million-dollar businesses without any employees except the owners. According to U.S. Census Data, “non-employer” businesses that generate $1 million to $2.49 million in revenue rose to 36,161 in 2016, up from 26,744 in 2011. Factors such as the growth of free and automated platforms and mobile tools and the expansion of online platforms for hiring contract workers account for the success of many of these businesses — and indeed, the entrepreneurs profiled in Pofeldt’s book all availed themselves of these tools. But there’s also been a shift in attitude: many entrepreneurs intentionally avoid hiring permanent employees, instead preferring to remain both flexible and lean. That’s not to say that these businesses can’t scale — several of the companies described by Pofeldt were either acquired by other companies or received venture capital to grow to the next level.

So what are the lessons for lawyers — both those currently solo and those thinking about starting firms? First, you don’t need tons of money to get started. Some of the million-dollar businesses in the book started with a $5000 investment that came from family and friends, then leveraged free and inexpensive tools. This kind of bootstrapping is particularly important for lawyers who as of yet, can’t accept outside investment. Second, automation is key — many of the businesses capitalized on technology to allow for sales round the clock without having to be on duty full-time. Third, teaching sells. Several of the businesses offered online lessons and courses — something that lawyers can also do.

In addition, not all of the entrepreneurs pursued a million-dollar business as their end goal. One entrepreneur started a business selling martial arts courses and equipment online but used the revenue he generated from the business and its eventual sale to fund his study of artificial intelligence, his true passion. In other words, solos can also start a non-law related million dollar business on the side to support low-bono or civil rights work if that’s their passion.

Finally and most importantly, Million Dollar One Person Business teaches that small can be mighty. That’s a lesson that most students don’t absorb in law school where their professors hail from Biglaw and the placement offices kiss up to Biglaw or even non-lawyer jobs while treating solo practice as a career path for losers, when in fact, the odds of making a million from a new age business are comparable to the odds of making partner at Biglaw. If that’s the case, why not bet on yourself?

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