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Insider Tips from a New Sole Practitioner

Published:
26 Apr 2015
News
Insider Tips from a New Sole Practitioner
Ian Aldridge, Principal, Progressive Legal, recently opened a sole practice. As a follow on from our previous article Single and Ready to Mingle – Tips for Becoming a Sole Practitioner we asked Ian to reflect on his recent personal experience to provide tips for lawyers who have also decided to open a small practice. Read more below.
 
Tip 1 – Watch the Finances
 
Yes, you’re a lawyer and not an accountant. But no one’s going to benefit from you taking the plunge if you go out the door backwards in your first 6-12 months. Keep a close eye on your figures because they’re going to make or break it. Keep it lean and watch your outgoings.
 
Start a budget for all your expenses. I think a crucial exercise we did in the Legal Practice Management Course for sole practitioners was to sit down and work out exactly how much it takes to keep the “lights on and the doors open”. Put down every conceivable cost and work out on a monthly basis what you have to bill in fees to at least break-even. As scary as it is, it makes you realise what you need to do to stay above water.
 
Keep the business and personal bank accounts separate so there’s a clear delineation between the business and your personal finances and put money away for tax and professional indemnity insurance. Get a good accountant/bookkeeper to help you. Consider opening a trust account to avoid having to carry disbursements until the end of the matter by getting monies paid up-front.
 
Tip 2 – Get your systems in place
 
Don’t worry, I started with a Hotmail address, word-created invoices and spreadsheets. However, I wish I’d started straight away using Google Drive for email and doc management, Affinity Live for my Customer Relationship Management (CRM), Asana for my tasks/project management and Xero for my accounting. It’s cheap as chips for getting started and they integrate with each other.
 
Unfortunately, no one system does everything well but if you set things up straight away, you don’t have the unfortunate exercise that we now have to do which is going through all our emails, documents, invoices and reconciling. Yep, painful and time consuming.
 
Tip 3 – Surround yourself with the right people and get into the right mindset
 
I didn’t realise how important this was. Going out on your own is an incredibly bold and courageous step. It’s also a mental and emotional challenge. A lot might be questioning you (including yourself) – that’s natural. It might feel like you’re burning the boats and now swimming into dark waters. Don’t be afraid to reach out to fellow colleagues that are either doing the same thing or have gone before you, for advice or even just to chat.
 
The instability caused by a fluctuating income stream can be very unsettling, especially if you’re coming straight from a full-time job. Whereas barristers have chambers with colleagues to chat to and bounce ideas off, sole practitioners usually do not and have to deal with things mostly on their own. Remember to constantly keep positive, surround yourself with positive people and take time to keep physically active with a routine to keep mentally well. Oh, and find a mentor or two. You’d be surprised how valuable it is. The NSW Law Society runs a mentoring program if you want another sounding board.
 
Tip 4 – Don’t take on matters where you’re not comfortable
 
You’ll be tempted to say yes to everything that walks in the door. The dangers are obvious from a risk management perspective. I’m not saying don’t do anything you haven’t done before, just limit yourself to areas where you know at least you’ll be able to find out the information you need to provide the right advice and be able to do the work competently. Get clear, detailed and proper instructions – it’s easy to get into a trap of not doing this, especially when things get busy and you’re short on time.
 
Tip 5 – Get your message really clear on what makes you different
 
The fact is that most clients see lawyers as a necessary evil and are completely scared of even talking to a lawyer for fear of how much it is going to cost. Be really clear and upfront with them about costs, talk about money early and often with your clients, think about how you are going to communicate effectively with them and be quick to manage their expectations. Make sure the first thing you do is send a costs agreement and disclosure and ensure the agreement defines what the scope of work is and what you are not going to do (e.g. financial advice).
 
Pick your niche and make your message strong and clear. Find what you’re passionate about, then live and breathe it. You’ll become the “go-to person” in that area if you do.

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Download this course guide to receive more information. 
How to have the career you want with John Poulsen

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How to have the career you want with John Poulsen

How do you transcend the daily grind to do work you love? When can a career become a calling? What steps can you take to achieve the career you want? We spoke to John Poulsen, former CEO of Squire Patton Boggs and Principal of People Passion Performance, for his insights on getting the career you want informed by an illustrious career in law and leadership.

How to merge your love of music with your legal career: Chelsea's story

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How to merge your love of music with your legal career: Chelsea's story

Learn how Chelsea Donoghue merged her lot of arts and law: How she managed her study while on world tours, what she loves most about her work at Sanicki Lawyers, and what’s next.

Graduates and prize winners recognised in June ceremony

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Graduates and prize winners recognised in June ceremony

Graduates and prize winners celebrated their achievements, received their awards and honours remotely due to continuing COVID-19 restrictions.

How AI is being used in Family Law

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How AI is being used in Family Law

To understand where legal AI use cases are showing up within family law, the College spoke with two highly experienced practitioners who have incorporated AI into their legal practice in different ways. Fiona Kirkman, principal at Kirkman Family Law, embraced ChatGPT early on in her practice, while Jenna Downy, solicitor at Family Law Matters, helped train LawY, an AI legal research assistant.

How to exit your job gracefully in law

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How to exit your job gracefully in law

For the 1 in 4 Australian lawyers considering leaving their job, the current job market is tipped in their favour. However, Australia’s legal profession is tight-knit and relatively small, so reputation matters. If you are leaving your role for fresh challenges, here are our top tips on how to exit your job gracefully in law, from the College of Law’s National Careers Advisors Ruth Beran and Susan Pincus.

Juggling full-time work, parenting and PLT possible through the College of Law, says Kerala Drew

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Juggling full-time work, parenting and PLT possible through the College of Law, says Kerala Drew

Kerala Drew found the path to qualifying as an Australian lawyer fraught with roadblocks. Learn how she landed her first job in law, what set her College of Law PLT experience apart from prior study, and what advice she might have for lawyers looking to join the Australian legal profession.

6 tips to build your brand and leave a lasting impression

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6 tips to build your brand and leave a lasting impression

Here are 6 tips to help you leave a lasting impression and showcase your worth. 

When commercial acumen meets common courtesy: Ankurpreet’s LPMC story

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When commercial acumen meets common courtesy: Ankurpreet’s LPMC story

Ankurpreet Singh was thrust into a costly commercial conflict, which made him determine to pursue a legal career. To make his dream a reality, he enrolled in the College of Law’s LPMC – where he bolstered his business competence and confidence.

How to get into Wills & Estates with Rick Christie

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How to get into Wills & Estates with Rick Christie

Rick Christie, owner of ChristieLaw and committee member of STEP NSW, had always been attracted to the personal side of wills and estates. Insights spoke to Rick about how he came to specialise in wills and estates, what advice he might have for lawyers looking to move into the area, and what role industry organisation STEP can play for lawyers keen to become specialists.

How to Become a Partner Guide

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How to Become a Partner Guide

This guide will help you navigate the first steps towards becoming a partner. It will help you reflect on your own motivations, assess your skill set, and determine the best path forward in your career.

New Resolution Institute and The College of Law partnership to maximise skills and experience

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New Resolution Institute and The College of Law partnership to maximise skills and experience

Resolution Institute and The College of Law are pleased to announce an exciting new partnership aimed at establishing a symbiotic cooperation which will maximise the resources of both organisations through mutual collaboration and the sharing of expertise and efforts in education and training.

Navigating Age Discrimination In The Law With Tile Imo

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Navigating Age Discrimination In The Law With Tile Imo

Bias and age-based discrimination remains an issue in the workforce, despite legal protections. In this article, we delve into the intricacies of age bias claims with Tilé Imo, Associate Director of Caxton Legal Centre. We explore the evolving legal landscape, effective strategies for litigating age discrimination cases, and the emerging trends that lawyers need to be aware of to best serve their clients.

Major changes ahead with the Family Law Amendment Bill 2023 in progress

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Major changes ahead with the Family Law Amendment Bill 2023 in progress

Major changes are coming that will impact the family law system and the way practitioners operate in Australia. The Family Law Amendment Bill 2023 is currently under debate in parliament and after its third reading, it is now under review with the Senate Legal and Constitutional Affairs Legislation Committee. The College of Law will provide legal training support when the Family Law Amendment Bill commences, but in the meantime, we spoke with College of Law adjunct lecturer Kathryn Kearley to find out about the most important changes.  

Graduates, prize winners honoured at the Winter 2022 Academic Awards Ceremony

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Graduates, prize winners honoured at the Winter 2022 Academic Awards Ceremony

The College of Law recognised over 200 graduates of its Postgraduate Specialisation Programs at the 2022 Academic Awards Ceremony on 1 August. These awards included the Master of Laws (Applied Law), Master of Applied Law (Family Law), Graduate Diplomas of Applied Law and Graduate Diploma of Family Dispute Resolution Practice (FDRP).

How to get a government job in law: everything you need to know

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How to get a government job in law: everything you need to know

Embarking on a legal career in local, state, or federal government can be an exciting move. There are many pathways for development, a broad range of practice areas, and often a healthy work-life balance. These roles are highly rewarding, and highly competitive, the College of Law tells you everything you need to know about landing a government job in law.

The legal ramifications of the Queen’s death are surprisingly small

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The legal ramifications of the Queen’s death are surprisingly small

We talk to the College of Law’s Adrian Deans, Academic Policy & Quality, James Crittenden, Head of Short Courses and CPD, and Lewis Patrick, Chief Academic Officer, about some of the pragmatic impacts of the Queen’s passing on the law and Australian legal profession.

3 Key Insights from the State of Separation Impact Report: Making Separation Simpler

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3 Key Insights from the State of Separation Impact Report: Making Separation Simpler

Parting ways in a relationship is never easy, and family lawyers are generally the first professional separating couples encounter when they end a relationship. For all of these reasons Angela Harbinson created The Separation Guide, which aims to make separation and divorce simpler, more manageable and less stressful.

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