Managing Your Legal Career
King County Bar Bulletin
Request For a Business Plan / Choosing Your Preactice Area as an Associate
By Karen J. Summerville
Q. I have been practicing over fifteen years with the same firm. I am contemplating a lateral move to another firm. So far I have met most of the members of the new firm, and I think that it may be a good fit. The managing partner of the new firm has asked me to put together a proposed business plan. What should I include in my plan?
A. What the firm wants to know before they add a new member is whether it makes economic sense. You want to demonstrate that you will bring more than enough business to cover your own overhead and salary. In your plan you will want to outline your marketing strategy, including goals, target markets and methods. Most likely, the firm will also want a collection history for the past two to five years, including working attorney and client generation numbers.
Finally, the firm will want to see your projections for revenue if you were to join the new firm. In projecting revenue for the next two to three years, you will probably want to state your estimate in terms of a range that is conservative but optimistic. In estimating future revenue you can discuss the synergy that would result by joining your practice with theirs.
You probably do not want to include a list of your existing clients at this time. This list will be necessary for conflicts checks should you receive an offer you would like to accept. Until that time, you can identify your portable client base in general terms (i.e. by industry or type of business).
It sounds as though an offer may be forthcoming. You probably would not have been asked to prepare a business plan unless the firm was interested in you. Keep me posted!
Q. I am a third-year associate at a medium-size law firm. My practice is a blend of litigation and commercial transactions. My preference is to focus on the transactional work and minimize my involvement in litigation. The partners, have given me mixed messages. Although I was encouraged to develop my transactional practice, I continue to receive new case assignments in litigation. These cases take up so much of my time that I can't really devote enough time to the transactional work. The firm's critical need is for a litigator, and it has traditionally been a litigation firm. I want to be a team player, but I also want to ensure that over time I will be able to develop a transactional practice. What should I do?
A. You are very wise to recognize your dilemma. It is not at all uncommon for newer associates to be asked to do work in the area of greatest need within the firm, without regard to the associate's desires to develop a different practice niche. In fact, many attorneys lose sight of their own goals because they are inundated with cases from the moment they walk in the door. It is also very difficult to minimize your litigation caseload and develop a transactional practice in a firm that is known for litigation. There are a few attorneys who have accomplished this, but they are rare.
Unfortunately, from what you have told me, you may need to make a very difficult choice between staying with your current firm and developing a non-litigation practice. If you stay, your practice will in all likelihood be dominated by litigation. This choice will, of course, be even harder if you are comfortable in the firm and enjoy the camaraderie of your colleagues. Imagine yourself in ten years as a partner-a litigation partner-at your current firm. Would you regret not having developed a transactional practice? If your answer is yes, you would probably be well advised to start looking discreetly at other firms. You do not want to wait too long. The conventional wisdom is that an associate is best able to move to another firm at three to five years. If you are out more than five years, a new firm would look at you as a lateral and may expect you to bring a book of business with you.