Law Times

Law Times • November 28, 2016 Page 9 www.lawtimesnews.com Taking the business plunge BY JIM MIDDLEMISS For Law Times T he death of the sole practitioners or small law firms is greatly ex- aggerated. In fact, going solo or "down- sizing" from a Bay Street firm might very well be a good exit strategy for lawyers seeking to have more control over their ca- reers in their latter stages. The key to survival is find- ing a special niche that works, targeting and segmenting your clients, using technology to level the playing field, watching your costs and building out and lever- aging your business network and connections. Take Barbara Hendrickson, who started her own boutique, BAX Securities Law in 2012, af- ter working at a couple of large law firms and the Ontario Se- curities Commission. "It's a bit of a myth that you can't practice securities law at a smaller firm," she explains. While she won't be doing an Agrium-Potash merger any time soon, Hendrickson says secur- ities law covers a lot more than mergers and acquisitions, much of which can be handled in a small practice. In fact, she points out, big- ticket M&A is the exception and not the rule. "Most of Bay Street is not doing that," she says. "People can count those kinds of trans- actions on one hand." The one thing she learned working at a larger law firm was that "you don't really control your clients; in a smaller firm you have that independence." She felt that with the right infrastructure, she could "keep more of the time I was billing," so she opened her own shop. While she knew the law, she says it wasn't until she opened her own practice in Toronto that she "started learning the busi- ness of being a lawyer." Networking was critical, she says, and prompted her to start the Toronto Business Lawyers Association, a referral group of like-minded lawyers from small firms that focus on servicing businesses. "It's very informal," she says. "We have some lively conversa- tions," and it's resulted in refer- rals. Brad Cran, a commercial liti- gator at TaoCran Law who is ac- tive in the TBLA, says, "Technol- ogy advancement in the past few years makes it very competitive for solo lawyers and small firms to compete against bigger firms for work." Cran formerly worked as a litigator at a Bay Street firm, before joining technology firm Research in Motion as in-house litigation counsel. He later joined an international law firm in Hong Kong and, upon his re- turn to Canada, he started his own law firm with a focus on litigation, arbitration and regu- latory investigations geared to serving business. For him, his business referral network of lawyers, accountants and other professionals is key. "You're primarily relying on your network," he says. "That's the source that can vouch [for you]." Rather than invest his time in blogging or cold calls, Cran says he focuses on those trusted con- nections. "I work my network; that is where all the work is," he says. "I think of my network almost as my virtual law firm." The lawyers say it is not easy, though, and the focus is con- stantly on the bottom line be- cause they fully appreciate that their clients are price conscious. Not every business needs or can afford a Cadillac, but they want high-end service. Being in a small firm allows Cran the opportunity to take on com- mercial litigation on a contin- gency fee basis, something that's seldom done at a big Bay Street firm. For Hendrickson, the focus is on fixed fees. "Clients love the billable hour. They just hate paying it," she ob- serves. "My whole pitch is you get highly experienced legal ad- vice at a reasonable rate." Relying on fixed fees means Hendrickson has to "control the number of timekeepers on the file . . . otherwise, it is really hard to make money." She must also have a strategy for f low control, in case she gets too busy. She brings in contract lawyers when needed. There are many reasons for striking out on your own. In fact, most lawyers work in firms that have fewer than 10 lawyers. Sometimes, partner- ship agreements require lawyers to move on when they reach a certain age. Other times, the fit is no long- er right or maybe it is simply per- sonal aspiration. Take long-time litigator Gavin MacKenzie, who worked most of his career at large law firms. Earlier this year, he opened MacKenzie Barristers Profes- sional Corporation, a litigation boutique, with his daughter Brooke. They focus on profes- sional liability issues and appeal work. "The opportunity to practise with my daughter is an oppor- tunity most lawyers don't have the privilege of doing," he says. Brooke MacKenzie, who worked at a Bay Street firm be- fore obtaining her LLM and then deciding to join her dad, says, "It was an opportunity to build a business from the ground up." Hendrickson says the key to striking out on your own is sticking to your plan and staying focused. "You kind of go where the work is, but you also have to cre- ate a niche for yourself," she says. Her focus was securities. "It would have been very tempting to have a broader prac- tice, but I didn't want to become a generalist," she says. Now she serves smaller in- vestment dealers, real estate de- velopers and promoters, port- folio managers and a range of investors involved in the capital markets. They're not Fortune 100 companies, but the legal work is rewarding. "It's never too late" to strike out on your own, says Hendrick- son. "I have former colleagues who are practising law in their 70s and 80s. It's a different ball game. People just aren't walking away from their practice at 55," she says. Adds Cran, "The trick is to get going and take that first step." LT FOCUS Barbara Hendrickson says 'it's a bit of a myth that you can't practice securities law at a smaller firm.' AVAILABLE RISK-FREE FOR 30 DAYS Order online at www.carswell.com Call Toll-Free: 1-800-387-5164 In Toronto: 416-609-3800 New Edition Brand Management in Canadian Law, 4th Edition John S. McKeown Brand Management in Canadian Law, 4th Edition is the only publication in Canada that brings together the legal and business issues you need to understand when helping clients reach their business objectives through branding. Now in its fourth edition, Brand Management in Canadian Law is written in easy-to- understand language by a specialist in intellectual property and marketing matters. 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