Re: Going Solo

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On 10/24/06, Solo to be... wrote:
> You all know more than me about this subject, obviously, but with respect to
> the comment of the first year being a "break even" year, I must ask a few more
> questions. With minimial start up costs and expenses, is it really
unrealistic
> to expect to turn a profit a few months in? I've read other posts on this
> board where solos are bringing in 4 to 5k a month a few months in. Is this a
> realistic goal/expectation?
you're going to get opinions all over the board here from "yeah, you can do it"
to "nobody can do that." Most people I know that went solo didn't break even
the first year, they were in the red, hence the advice to have a war chest built
up. Start up fees may be minimal but you're going to have to cover operating
fees, depending on the type of work you'll be doing. Probate is good money and
fairly easy, but you put a lot of work into it before you see the attorney fees
on the other end. for PI you're looking at fronting money for court reporters,
experts, reports, medical records (I suggest having the client get them, a lot
of times the patient isn't charged for them but the attorney always is.)
Postage, telephone more than one line is more than twice as expensive,
malpractice insurance, health insurance, workers comp, ssa, for your help, it
all adds up. If you can get a client base built up quickly with some decent
fees, like a closing or a quick settle PI you can put some back for the months
when the income won't pay expenses. my advice is plan for the worst but hope
for the best. that way you're prepared if things don't go well but you're not
starting out with a pessimistic outlook which can be a self-fulfilling
prophecy. I know some people who got lucky and made a profit right off the bat
and continue to but most of us have to struggle a little. It's worth it to be
your own boss though. At least to some people.