We all want to become independent entrepreneurs. It is, in fact, the American Dream. Being your own boss in control of your life is what we’re all hoping for when we hang up our shingle as family law practitioners, mediators, or therapists. What’s the best way to make that dream come true? A roadmap for family law entrepreneurs.
Step One: Ignore the Doomsayers
Before you take the first step on your journey to independence, a warning: the road ahead is full of people whose maps are upside down. These are the ones who will tell you things like, “work as many billable hours as possible even if you’re exhausted. If you’re a lawyer, you do law until you drop because that’s how we make money. If you want more time for yourself or your family, you can stop doing law, but you’ll never retire.”
These are real things I’ve seen online, from people purportedly trying to help lawyers find better ways to achieve financial stability. Do not do these things. Working yourself into an early grave is not an optimal way to achieve financial freedom.
Step Two: Know Your Destination
Saying “I want to be financially independent” isn’t really a destination. It’s like saying you want to go to Europe—that’s a good start, but where in Europe? How do you want to get there? What do you want to see?
Your financial destination is the same thing. You need a specific goal to shoot for so you can measure your progress, what business management companies call “key performance indicators” or KPIs. You can measure your progress as long as you have a specific goal.
Step Three: Know What You Need to Reach Your Destination
Suppose you’re packing for a railroad tour of Europe. You’ll need a wardrobe that fits in one suitcase, a passport, and good walking shoes to see the sights between stops. Your map for financial independence is the same. You need to know what gear you need for your trip.
Financial freedom usually means more clients, and that means more of your time. Before you start soliciting new clients, you need to see if you have that kind of time. Sit down with your map and start planning your route.
- Figure out your total expenses. If your practice pays your household costs as well as office costs, include all of them
- Estimate your monthly income from all sources. Determine what comes from clients and what comes from other income streams, if any. We’ll come back to this.
- Calculate how much time you spend with clients, on office work (including preparing and filing paperwork), and courtroom work, including phone conferences. Don’t forget the time you spend on the phone talking to clients and other attorneys.
- If you have any office workers or part-time help, don’t forget their pay! If you’re an LLC or PC and take a draw from your company for tax purposes, make a note of your baseline “paycheck.”
Step Four: Plot Your Route
Now that you have your map and luggage ready, take a moment to think. You need to set some waypoints on your map, so you know how you’re doing. In business lingo, these are “KPIs.” On a map, they would be road markers.
Take some time to decide what you want your route to look like. Everyone’s path will be different, but yours should include:
- Reasonable growth rates. If you’re barely managing to see 10 clients a week, you can’t see 20 clients a week without making some changes in your office and lifestyle. Look at what you’re currently doing and ask if ten more clients a week is even realistic.
- Time for yourself. Many entrepreneurs in every industry forget a good work-life balance, and end up like the helpful attorneys mentioned above, working endless billable hours to make lots of money. If you burn yourself out, you won’t make any money, at least not from legal work.
- Emergencies and time off. Look back at the last five or six years. What major catastrophes have sidelined your savings account? Old cars, new kids, or medical emergencies have an unpleasant way of derailing your financial journey unless you plan carefully. Leave yourself a financial cushion each year. Similarly, allocate yourself money for time off and travel.
- One-year, five-year, and 10-year revisions. At the end of your first year, go back over your plan and see how you’re doing. Check if you’ve added as many new clients as you wanted, and if your income stream is improving as you hoped.
Side Paths and Alternate Routes
Sometimes, your journey may be interrupted by unexpected delays and interesting side trips. Your trip to Paris could be sidelined by a fascinating trek to Cannes. Your journey to a self-supporting family law practice could be re-routed through a mediation practice or law school professorship.
You should always look for additional revenue streams while you’re working towards financial freedom. Some of these may appear while you’re working toward your ultimate goal. If you’re setting out as a sole practitioner, you need to try a little of everything. Marketing pitches double as blog pages. Other attorneys need neutral mediators for divorces and contracts cases. You can start looking for side hustles while you scan professional job boards and see what looks interesting.
Final Thoughts
Nobody ever finishes a career thinking “I sure wish I’d spent more time slaving away in the office.” The Providers in the Divorce With Dignity Network have all taken the same journey you’re setting out on. We know the perils and potholes you’re going to travel. Don’t be afraid to ask for help as you pack your bags and set out on your journey.
As you wend your way to your goal of financial independence, keep us in mind. Our Provider Network will assist you around the corners and over the bridges. Join the Providers in the Divorce With Dignity Network and take your first steps to a new financial future. Schedule your complimentary Success-Strategy Consultation today!
