Welcome

From "L.A. Law" to "Boston Legal" and every "Law & Order" in between, the legal community has been well-represented in popular culture for decades. Few professions are represented on the small and big-screen as frequently as that of the legal profession. An American Bar Association study found that 58% of the general public (not just business owners) had some level of confidence in lawyers.

According to a 2005 survey done by the National Federation of Independent Businesses (NFIB), it was found that 65% of small business owners satisfactorily relied on their lawyers for help. Median legal expenses paid by clients were between $4,000 and $5,000. Seventy-eight percent of the businesses claim to have an on-going relationship with a lawyer or law firm.

What is certain is that few jobs require the exhaustive training, perpetual continuing education, long nights of preparation, collaborating with other organizations, completing forms, and obtaining the client’s complete cooperation. Lawyers held about 735,000 jobs in 2004. Approximately 3 out of 4 lawyers practiced privately, either as partners in law firms or in solo practices. Many salaried lawyers are employed by public utilities, banks, insurance companies, real estate agencies, manufacturing firms, and other business firms and nonprofit organizations. Some also have part-time independent practices while others work part time as lawyers and full time in another occupation.

Chase Tettleton

Industry Snapshot: The Legal Profession

Take a look at our full industry report on The Legal Profession (PDF Format). If you are interested in other industry snapshots, visit our SBDC Counselors Toolkit.

Links of Interest

Surviving your “Junioring” Years- a guide to getting through the long years as an associate at a large firm.

Legal Times magazine

Blawg- a directory of legal web logs, often written by legal professionals, discussing the hot-button legal of the day.

Diversity and Demographics in the profession from the National Association of Legal Professionals

Did You Know?

Do you panic when your client wants to sell their business but has no clue how much to ask? Reduce your stress with the handy 700+ page 2006 Business Reference Guide: the Essential Guide to Pricing a Business by well known expert Tom West. His annual “rules of thumb” guide to selling businesses has grown over the past 20 years with 14 pages devoted to the table of contents. This new edition includes a list of industry experts with the individuals’ email address and work phone number.

Here are two rules of thumb taken from the book to explain its worthiness:

• • Fine Dining - 30 percent of annual sales plus inventory.
• • Maid Services - 40 percent of annual sales plus inventory.

When it comes to franchises such as Hallmark, Fed Ex or Subway, or Convenience Stores, additional factors are addressed in one or two pages at most to provide the small business owner the best assessment. Remember that SBDCNet has this resource to call upon.

Are You Paying Attention to
Demographic Trends?

According to Third Wave Research, households with persons between 45 – 54 years of age are likely to have the highest average annual expenditure while the least likely age group is those under 25 years old. The non-Hispanic White population accounts for 85% of these purchases. Not surprisingly, homeowners with household incomes above $100,000 are most likely to spend more in legal fees. Third Wave Research also showed that a single parent is most likely to spend more in legal fees than any other population segment.

Besides age, race, income and household type, areas of the country have varying impacts the legal fees. According to 2005 estimates and 2010 projections, the states spending the most in annual average legal services per household are:

1. New Jersey
2. Connecticut
3. Maryland
4. Massachusetts
5. Alaska

Meanwhile, the states spending the least are:

51. West Virginia
50. Mississippi
49. Montana
48. Arkansas
47. North Dakota

Sources: Third Wave Research estimates using Consumer Expenditure Survey (2000/1) and 2000 Census data. State expenditures obtained from Applied Geographical Solutions (AGS).

By J. Eric Lomeli

Contact Us

SBDCNET
UTSA Institute for Economic Development
University of Texas at San Antonio
501 W. Durango Blvd.
San Antonio, TX 78207
http://sbdcnet.org/
sbdcnet@utsa.edu
800.689.1912