Firm growth is a sign of success. Adding attorneys, gaining more clients, and expanding into new areas of law are great for your practice. The last things owners are probably concerned about during growth periods are administrative issues that are likely to arise 10 or more years down the road.

A recent survey of sole and small law firm owners suggested that 40% of attorneys over the age of 50 would like to retire within 10 years. Fifty percent (50%) of those surveyed indicated that having an exit plan was extremely important, 30% very important, and 30% somewhat important. Yet, 50% of those attorneys are not satisfied with their own current plan.

In part 1 of this article, I identified ways a new or developing firm can “begin with the end in mind.” That article advised small firm owners to establish a turn-key business infrastructure that will support the ongoing profitability of the firm upon transition to a new owner or merger with another firm. Part 2 will focus on how to create an exit plan as you near the off ramp of your legal career. If you are the owner of a small firm and want to head in that direction, this article is for you.

People are a law firm’s most valuable assets. From the mail room clerk to managing attorney, everyone you hire plays a key role in delivering qualify legal services and generating revenue. Let’s face it, people work to earn a living. Yet, most law firms have not taken the time to define how they will reward their employees financially. Asking potential new hires for their salary requirements or offering the minimum possible to get someone in the door is not an sustainable plan. Likewise, waiting for an employee to give notice before offering a well-deserved pay increase will result in the loss of good employees to other firms.