I'm starting a new category called "You Ask...I Answer" which will be filed under the category of "In My Opinion" - You Ask...I Answer" because, after all, it's my opinion and you asked.
The category is geared towards law students considering solo practice. However, it is not limited to this. I will try to answer all questions, if not directly to the individual, then generally through a post, particularly if the question is of universal concern to those wanting to open a practice . I will not reveal identifying information and may change some facts to keep it truly anonymous. If I receive the same question many times I may "create" a composite question. But all questions will have originated from authentic e-mails.
However, it is my opinion based upon my experience as a solo practitioner who opened a practice out of law school, my background in sales, marketing, advertising and promotion, an adjunct professor who teaches others to open their own practice right out of law school, a columnist who addresses issues facing solos, a consultant who helps solos open their own practices, and a wife, mother of a toddler, and entrepreneur. If it is a technical question, I may invite a guest blogger to answer the question. Either way, the goal is to provide answers and considered opinions for those who wish to open their practice.
That being said, let's get to the question which sparked this column:
Currently I work in the IT department for a school district near State XXX. However, my family lives in State ZZZ, and I received my B.A. from the U of Z in 1995. In the past few years I have become very interested in law and technology, including cyberlaw, privacy issues, identity theft, etc, and am looking at law schools that will allow me to explore these fields. The U of X is an obvious choice; located in one of the high tech regions of the world, there are a number of interesting opportunities that would result from attending U of X. However, U of Z has a policy that allows students who graduated from a State ZZZ high school (which I did) to receive in-state tuition rates without a prerequisite waiting period.
With this in mind, I am considering saving money from my salary in State XXX and attending law school in State ZZZ to reduce the assumed debt. With differences in tuition, cost of living, etc. I calculate roughly $50,000 in savings, with the added benefit of being near family for a few years.
My question is this: Putting aside any perceptions of prestige between U of X (very ,very good) and U of Z (solid but unspectacular), how much of a risk would it be to attend law school in State ZZZ to reduce my debt burden, then move back to the State XXX and go solo? Or, in a broader sense, if I were to go solo in State ZZZ and attempted to relocate elsewhere as a solo, what challenges would I face?
1. I don't know how old you are, but let's say you are 33. In 2010 you can be 37 without a law degree or 37 with a law degree. Either way you are still going to be 37. Which would you prefer?
2. In my experience, if you are going solo, your clients don't care where you went to law school. The only reason they may ask is if they know someone who went or is currently in law school and are trying to find some point of conversation. Only potential employers care where you went, your rank and whether you were on law review. Some colleagues express curiosity but mostly to see if you went to the same law school as they did.
3. $50,000 in savings in tuition (student loans) is HUGE. One of the big reasons new lawyers are fearful of going solo is the student loan burden they bear. It intimidates them into taking a job versus creating a career because they have this enormous debt and feel they need a steady paycheck. Not incurring this debt will give you a lot a freedom, enable you to purchase a home,whatever, because student debt impacts your credit rating for loans. In addition, the amount of money (after taxes) you would have to earn to pay this loan could be saved as a down payment on that home!
4. Being near family, whether you appreciate it now or not, is a driving force for most people. We often want to get away to be "out on our own" after college. But after awhile, most want to "go home."
5. Deciding to go back to State XXX to develop your practice should not be a deterrent simply because your degree is from a non-XXX State School. (See above.) Success turns on your motivation, perseverance and who you are, the quality of service you deliver and your ability to first cultivate then work a network. Most often, our family and community ties provide the basis for that network but others are just as successful without that initial network. It might take a little longer. Since you already have some roots/connections in State XXX, you are ahead of the game. There are many people who go to school in one state and practice in another. In addition, think of it this way. You are currently attending U of Z; you are forced through circumstances beyond your control to move to State XXX upon graduation. Do you give up your dream to be a solo practitioner?
I would encourage you to go back to State ZZZ for that terrific savings on tuition and to be near family these next years. You would have to work a long time to pay off $50,000 in student loans and you can't get back missed time with your family. And who knows? After all is said and done you may simply want to build your practice in your home state.