Small Firms Go Out of Business Easily???

[Contract2008]

I know that the small business go out of business all the time, such as restaurants, retail stores, etc. 

Is it common at all for small starting firms to go out of business due to lack of business/revenue??

[cushions are defective]

You bet!

[geminigrrrrl]

While it may be true that small law firms are more susceptible to breaking up, I have seen large firms break apart as well.  I have been working for a small law firm for over three years as a paralegal (I am a 1L, evening division) and our business is pretty fluid and secure.  Since I have been in this business, I have only heard of a couple small firms going under, and that is because they based their entire firm on one large insurance client, or something similar.  I don't think the size of the firm really matters, its the management/ownership and type of law that can sink/swim a business. 

[plumbert]

A few years back, San Francisco's biggest law firm went out of business. My understanding was it was a decision by the senior partnership, but that didn't change anything for the associates.

So--you never know.

[jd2b06]

For me, the only true way to have security is to work for yourself.  So I'll spend a few years at a firm to build a nice nest egg/experience/pay off the loans then put out my own shingle.   

[giraffe205]

I think what matters is how much debt the firm is carrying. Even large firms take out huge loans and then can't pay it back. I think that it would be more likely, however, for a small firm to be unable to pay back a loan.

[ae]

here

http://www.lawschooldiscussion.org/students/index.php/topic,2611.msg24396.html#msg24396

[profdmeanr]

For me, the only true way to have security is to work for yourself.  So I'll spend a few years at a firm to build a nice nest egg/experience/pay off the loans then put out my own shingle.   

Well said!

[giffy]

For me, the only true way to have security is to work for yourself.  So I'll spend a few years at a firm to build a nice nest egg/experience/pay off the loans then put out my own shingle.   

I think the only difference is that when you work for yourself your to blame when you go out of buisness. Not to knock owning your own firm, I woud like to do it as well, but it sure as hell doesn't insure security. In fact it is probley more risky then working for a firm.

[obviousl]

I guess it is because of this that law students do whatever it takes to get good grades to be be able to go to an-already-established law firm (big/medium sized law firms).