Every four to six weeks I pop over to a small barber shop near my home. Snip snip, buzz buzz, and I’m done.  Its quick, they do good work, and it’s a heck of a lot cheaper than the fancy places I used to go.
On my last visit, I learned that the owner had opened a second location about ten miles away. Good for him. Entrepreneurship rocks.
He’s got more overhead, responsibilities, and risk, but he’s got the system down and I’m sure the second store will be running smoothly in no time.
He opened the second location, I’m sure, because he understands that there is only so much upside in a barber shop. Men don’t buy a lot of hair care products, we don’t get our nails done or our hair colored (usually), and in a small local shop, if all of the chairs are busy, there’s only so much the owner can do to increase his bottom line.
When I was practicing law, at one time I had three offices. I earned more, but frankly, it wasn’t worth the extra time and headaches. What I should have done, and what you should probably do if you’re considering opening a second (or third) office, is to work on increasing the profits in the first office.
There are lots of ways to increase profit in a law office. You can get bigger cases and better clients. You can get your former clients to hire you again, or hire you for different kinds of work. You can get more new business, from referrals or advertising or through the Internet, and short of needing a bigger office to accommodate additional staff, you can do all of this from one location.
On the other hand, clients will only travel so far to see a lawyer. Opening a second office is tempting. Does it ever make sense?
Theoretically, yes. In southern California, for example, if your office is in Los Angeles, you might want a second office in Orange County, and another in San Diego. Three different markets, with enough population to make the investment worthwhile.
But the investment in a second office encompasses far more than rent and employee expenses. You must hire, train, and supervise the new staff, which is difficult enough when you are present. There are additional liability and ethical risks, not to mention the risk to your reputation if something goes wrong.
If you’re thinking about opening a second law office, consider yourself warned. It’s not for the faint of heart.
If you have the resources and the thick skin, a second office is a viable way to increase your income. But don’t rush into it. A good place to start is to get a shared office arrangements where you can use a conference room to see clients. This will allow you to test both the market and your capacity for operating a satellite office, before you commit to something bigger and more permanent.
Proceed cautiously, limit your downside risk, and if things don’t go the way you had hoped, you won’t have to. . . forgive me. . . take a haircut.
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