No one starts a law firm anticipating that it will fail. If anything, the beginning of the process is full of rainbows and butterflies — or rather, hope and possibilities. The reality is that most small firms struggle to make it. In my sphere of influence, I know small firm owners who struggled with revenue, took on side jobs, and even shut down their firms because they couldn’t survive the pandemic. We don’t like to talk about our struggles. Lawyers are supposed to be financially successful, right? Not true. Sometimes, it’s time to call it. Your firm may no longer be able to thrive or even sustain you. Here are four signs that it may be time to take down your shingle and find work elsewhere.
Revenue Has Dried Up
No new business is the first indicator that something’s up. What started as a steady flow of incoming inquiries, consultations, and referrals may have trickled to a stop, no matter how hard you try to keep your pipeline flowing. If you have planned for a rainy day, you may be diving deep into reserve money or taking out loans because a slow business season doesn’t eliminate overhead costs, labor costs, and your salary. Know that this is not an endless well, and you will have to decide when enough is enough.
You’ve Lost The Desire To Keep Going
Trust yourself. As lawyers, we are conditioned to work hard, show results, and persevere. However, there may come a time when you lose the will to continue in this vein in business. Additionally, this is not a short-term feeling but a lack of desire to continue in the same course. I recommend talking to a licensed mental health professional to help you cope with your health first before deciding what to do.
Marketing Isn’t Working
You’ve actively promoted your business to aligned clients on Google, Facebook, LinkedIn, and website SEO optimization, but you’re not getting the reception you expected. It might be the algorithm, impending wars, or so many people are distracted. You’ve also tested other ways of marketing to no avail. Whatever the case, what used to work for marketing is no longer working.
Nothing Is Working
That’s the tweet. Sometimes nothing is working.
If you find yourself where your firm is no longer serving you, remember that you are not a failure. Believe me when I say I, too, have been there. Closing your firm is not the end but a chance to take the lessons you’ve learned and apply them to a new opportunity. I’d love to support you when you think of shutting down your firm. Feel free to email me at iffy@iffyibekwe.com with your thoughts and questions. You don’t have to be isolated in your decision.
Iffy Ibekwe is the principal attorney of Ibekwe Law, PLLC. She believes that women deserve to make decisions that affect them with wills, trusts, and other estate planning documents. Activating women is Iffy’s calling, and she also loves speaking internationally about entrepreneurship, estate planning, motherhood, and supporting other women lawyers. Currently, Iffy is writing her first book on culturally competent estate planning, available in 2023 (prayers up!). A double-Longhorn, Iffy graduated from The University of Texas (undergrad and law) and has practiced law for over 15 years. Iffy can be reached by email at iffywrites@ibekwelaw.com, her website, LinkedIn, and Instagram @iffyibekweesq.
