Over the last few years, I've fretted about job security at the small BI (bodily injury) where I work. Each year, we've managed to get by, but I'm afraid this year might be different.
Things are getting very lean. New client sign-ups have been almost non-existent since covid-19 hit. People weren't out driving, so there were fewer accidents. Lots of clinics and chiropractors closed, either temporarily or permanently, so those referrals have dried up. As revenue decreased, we had to cut back on advertising, which I think has led our firm into a worsening situation each month.
We got the PPP for payroll but that money is gone. If things keep going this way, my caseload will probably be down to about 20 cases by the end of the year. That's not enough of a caseload to justify my boss having me as an employee.
And it wouldn't really be enough for me to float my own office either. If I'd chose to "hang out my shingle" and asked those clients to come with me, I'd have to figure out how to share fees with my boss, I'd have to figure out if I can pay my current paralegal...I'd basically have to start a legal office from home. And then I'd run into the same issues with not having money to advertise or grow that my current firm is having, only I'd be holding the bag for everything then.
I have a lot to talk with my wife about tonight, but I've typing this out to clarify my thoughts and maybe get some advice on possible options.
1) Start looking for a new lawyer job. I HATE doing this to my boss and to my paralegal, who would almost certainly lose her job if I took most of my cases now to another firm. Plus, I suspect that many area BI firms are having the same problems we are. Also, I'm not super-marketable as a guy in his mid-40s who hasn't had to litigate much in almost 10 years. I'm not even sure I COULD get another lawyer job at this point. I've coasted for a while, I'll admit.
2) Start looking for a new (non-lawyer) job. I've worked for local government before, and I enjoyed it, but the pay sucks. Still, I feel like I have the option to take another gov't job since we have $300K in retirement now, and we've paid off a lot of debt. I feel like my chances of getting hired by local gov't are better than me getting hired by a private law firm. It would definitely extend my working-life by many years, but at least it would be steady.
3) Double or triple down with what I can do here. I still try to network, but honestly with covid, that's more complicated than normal (harder to get into doc and chiro offices, for example), but I don't control our expenses or advertising. I could work my cases even harder, and although that might help with short-term cash flow, it could also lead to me being jobless in 90 days, so I'd be writing my own exit.
4) Just keep grinding away here the best I can and ramp up my book-writing side business. Sure, this is the one I WANT to do, but I fear it's at least 2 years too soon. I've been averaging about $8,000 yearly book-writing income for the past few years. Yes, I think I could pump up my revenue if I had 40+ more hours a week to write, but even if I tripled it, I'm still looking at (at best) about $25,000 a year. That's a LOT less than even government work. But it could lead to future growth, and I am most passionate about this. It would also let me be around more for our kiddos and take some stuff off my wife'e plate. IF we had more in investments, I'd be tempted to consider this, but I just don't feel we have enough to take this much of a risk. Plus, writing is fun right now; the money is an extra. Will it still be fun if writing becomes PRIMARILY about the money?
5) Other options - I've thought about maybe proposing to my boss that I go down to part-time if the current situation continues - this could give me more time to write, and it would decrease his payroll, but it would also probably worsen the revenue problem (unless he hired a brand-new lawyer and worked him/her full-time just for my half-salary).
I know one thing's for sure. I can't keep my head in the sand. I went to him today and basically pressed him into giving me info about the firm's finances. Things aren't good.
Basic Snapshot:(rough estimates)
Current gross income: $140K/year
Yearly Expenses: $75K/year*
Yearly investments: $30K/year
Investments: $300K
Cash: $70K
Student Loans: $23K (only non-mortgage debt)*
Home: Worth $210K, owe $155K
*these are paid ahead by like 5 years, so if emergency strikes, we could just not pay on these for a while, or we could just pay them interest-only (about $125/month) to keep the balances where they are