Why Starting Your Own Firm Might Be Smarter Than Climbing the BigLaw Ladder

Description

In this Q&A video, Harrison Barnes discusses the limitations and sacrifices often faced by attorneys working in traditional law firms, particularly the pressure to conform to leadership expectations that can harm health and happiness. He contrasts this with the benefits of starting one’s own law firm, where attorneys can have more control over their time and income. Barnes shares the example of an attorney who started his own practice, billing at $800 an hour and earning $700,000 annually, compared to the significantly lower earnings he would have received by joining a law firm. Barnes emphasizes that many attorneys who take the entrepreneurial route are happier and more financially successful, making it a viable alternative to the traditional firm structure.

Question:
I think that the excessive concern with what law firm leadership believes is a path to destruction. Your webinar implicitly acknowledges this. I’ve secured my own clients with ease. I worked at several law firms, and one constant was the paranoid fear over exposing low-level associates.

Answer:
They're afraid of competition. Why surrender one's health and happiness and measure oneself by the irrational expectations of law firm leadership, who demand self-sacrifice for false promises? Economics aside, why is working at another large law firm a better option than establishing my business reputation and taking control rather than putting it in the hands of someone else?
Yeah, a lot of attorneys will start their own law firms. It can actually be a very good move. Attorneys who have done that often prefer it and do much better economically and in other ways. I was talking to an attorney a couple of weeks ago who had started his own practice. He was billing out at $800 an hour and working only 1,000 hours a year. After expenses, he was bringing home about $700,000 a year. He was considering joining another law firm, but all the firms he talked to were offering him 50% of what he brought in. So, instead of making $700,000, he would end up making $400,000. It didn’t make sense for him to join a firm. So, a lot of times, people will start their own law firms.