Some observations for Anyone Who’s Thinking About Leaving Their Firm to Open Their Own Practice | Daily Business Review

By Thomas Spigolon

“Change is not a threat. It’s an opportunity.
Survival is not the goal. Transformative success
is.”

Seth Godin

No matter what stage of your career you are in, and as painful as it may seem in that moment, follow your intuition and your dreams. After 25 years at a boutique personal injury law firm, I never had to once think about ordering supplies, writing trust account checks, integrating IT procedures, running payroll or a myriad of other tasks that can consume a firm. But that was about to change in spectacular fashion.

On the surface, there was no reason for me to start learning about website development or deciding between Sharepoint versus Google Workspace or land lines versus VOIP. Life was pretty good. Outwardly, I was at the pinnacle of my career. Inside, however, I knew something was off. I still had the burning fire for my cases and my clients. My work environment though had changed, and while I tried mightily to ignore it, it was having a negative impact on my well-being and fulfillment.

Change is hard. It is harder when the past has been so good and so successful. But we do not live in the past. We live in the present and for the future. I was incredibly unhappy and it was wearing me down. Being unhappy though was really just me complaining about things and not addressing the real issue. The real issue was I was angry at myself. I had let myself become bound by the trappings of success to the detriment of my ambition. I let myself become content.

Those that know me know that I believe the saddest thing in life is wasted potential. It is something that I saw as a kid. I saw firsthand how a brutally tough, bearded and hard- working father gifted with much more potential than he ever had the courage to realize sat and watched his life get away from him. I was no longer willing to ignore my purpose. I really had no choice in the end but to leave.

So on March 25 th , I pulled the pin on the grenade and handed in my walking papers without any plan whatsoever. I just knew it was past time to go and I could not stay another day and be inauthentic. There was no plotting. There was no attempt to copy files or park new cases in a new entity. I was done and that was that. No time to read all about starting a law firm. No time to register for a seminar. No time to plan. Just go do it. I have never been one to just dip my toe in the water or practice my diving skills from the pool patio. Nope. Show me where the high-dive board is please. That’s what I want, and I want to dive headfirst.

I woke up the very next day and incorporated my firm and set my sights on building the trial law firm that I have always dreamt of. I was a start-up and that was the entrepreneurial attitude I was going to embrace on this journey. I am hellbent on building a great firm that is staffed by great people, with great trial lawyers that are singularly focused on the client’s success.

What follows are some overarching observations I want to share with anyone thinking about leaving their firm and opening their own practice:

1. You must have the support of your spouse, family and friends. There will be ups and downs and you cannot embark on this endeavor without the love and support of those closest to you. They are your sounding board, your compass and the nucleus of your network and brand ambassadors for your new firm.
2. Hire the best people regardless of cost. Period. The best people cost more for a reason. They are worth it. A wrong hire will cost you more in the long run. Luckily for me, several extremely talented staff members at my old firm asked to come with me. Admittedly, it was a big financial commitment coming out of the gates. However, to me, the cost is insignificant when compared to the efficiency, comradery and trust that we all have together. I cannot imagine doing this without them by my side.
3. Announce the formation of your new firm immediately. You will find as I have that your acquaintances and colleagues are all rooting for you and are an invaluable resource. Do not hide your journey. Be open and talk about it. Solicit advice from those around you.
4. Physical space. There are a ton of options ranging from your own dedicated office, splitting space with friends, subleasing, co-working space, remote, and more. For me, ultimately, I want to buy my own building. Regardless of your end goals, do not be afraid to start small. I am currently starting out in just 200 square feet of shared workspace in Coral Gables and loving every second of it. I have the 5 of us packed tightly in here but it turns out to have been the best decision for our new startup. We can communicate incredibly well and efficiently and talk collectively about any issue that invariably arises without having to call a staff meeting later. We will be here for another month until our next home is built out.
5. Internet. You must dedicate significant resources to build an incredible website so people outside of your network can find and hire you. I hired three different teams to handle this task. One for content, one for design and another for SEO. Some may say I am going overboard but I don’t think so. You cannot be afraid to spend money strategically.
6. Confidence. I know what you are thinking . . . you can see the money burning and going out the door but where is the revenue? I am not concerned with the immediate revenue in the slightest. All of my clients followed me to my new firm so I have plenty of inventory. I fashion myself a gardener. I am planting seeds for a bountiful harvest. You must have confidence in yourself and not be timid in the face of a balance sheet that is currently in the red. By following a strict business plan, strategically marketing your practice, working your tail off and always focusing on your clients you will turn red into black.
7. Timing. Everyone has their own clock. I waited until I did for a variety of reasons. One, quite candidly, was my prior job situation. I was looking to lead more, not less. Once that leadership role was removed from my responsibilities, my clock sped up very fast. Another reason frankly was financial. I grew up very poor and paid my own way through college and law school. I knew the heaviness of debt. I worked incredibly hard for a long time never to feel that way again. I had to put my family first regardless of my pressing desire to chase my own dreams. And when I finally felt that I had secured my family’s future I had no more excuses. Everyone must listen to their own clock and follow their own compass. Mine was mine. Yours is unique to you.
8. Back-office mechanics. Three words I’ve never said before. I am an unapologetic trial lawyer with a sincere love of litigation battles. What did I really know about the intricacies of running the back-office? Just enough to be dangerous. So, I reached out to dear friends who run their own firms to get the lowdown on the back-office tasks that needed to be quickly addressed. At a minimum you will need professional liability insurance, a great personal banker who can walk you through establishing a line of credit, operating account, trust account, payroll account and savings account. You will need a payroll company, a 401k plan and administrator, IT company, webhost, case management software, and a CRM system for starters.
9. Finding your why. Why do you want to leave? What is gnawing at you? What keeps you up at night? Why are you unhappy? What is your motivation for doing this job? What do you want your legacy to be? What do you care about? What do you want to be? These I posit are not abstract. Answering these questions will be the bedrock of the rest of your life and how you choose to live it. Are you going to toil away at a job you are coming to resent or are you going to get on the high dive board and jump headfirst. These are not just important questions to answer for your career, but more importantly, questions that will shape your life and the happiness and purpose we are all chasing.

There is a much longer list to parse through and I would be happy to spend the time with anyone looking to start their own firm and be a resource like others have been for me. I believe in community and paying it forward. I genuinely mean it, feel free to email or call me at any time.

Tom Scolaro, founder of Scolaro Law, P.A., leads a Miami-based personal injury law firm. Renowned for securing over $500 million in verdicts and settlements over the last 25 years, Tom specializes in catastrophic injury, traumatic brain injury, defective products, cruise ship & maritime, medical malpractice, and wrongful death cases. His tenacious advocacy has led to legislative changes and the implementation of many industry-wide safety measures. Tom’s notable cases include a $29.8 million settlement in a roadway design defect case and a $40 million verdict in a negligent security case. Tom’s impact extends globally, representing clients worldwide and earning recognition as one of America’s leading lawyers.

Reprinted with permission from the May 10, 2024 | Daily Business Review © 2024 ALM Global Properties, LLC. All rights reserved. Further duplication without permission is prohibited, contact 877-256-2472 or asset-and-logo-licensing@alm.com.