The Advocate Who Is Always Busy But Broke

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When you are a young advocate building your practice, there is a particular kind of pride that comes with being busy.

Your phone keeps ringing, your WhatsApp is full of client messages, files are piling up, and your diary is packed with court appearances, consultations and deadlines.

You wake up early, return to the office late, and sometimes barely have time to eat.

You tell yourself that this is what building a practice looks like. And in many ways, it is.

But then the rent is due. Staff need to be paid. The internet bill is waiting.

There are subscriptions, professional expenses and personal bills to meet.

You check your bank account and ask yourself a question many young advocates quietly struggle with:

How can I be working this hard and still have so little money?

From the outside, your practice may look successful.

People see you in court, meeting clients and handling files.

What they do not see are the unpaid fees, the clients who keep promising to pay, the discounts you gave because you feared losing an instruction, and the money you have put into the office from your own pocket.

The uncomfortable truth is that you can be busy every day and still be broke.

One of the hardest lessons in building a law firm is learning that being a good advocate and running a financially sustainable practice are two different skills.

You need both.

THE TRAP OF CONFUSING A FULL DIARY WITH A SUCCESSFUL PRACTICE

When you are starting out, every instruction feels like progress.

You want clients, experience and a reputation. So, you say yes.

You accept a fee that is too low, agree to vague payment arrangements, and take on extra work because you do not want to disappoint the client.

Before long, you have many files, but how many are actually paying you?

A file is not income simply because it is in your office. A fee note is not money in the bank.

And a client who keeps you busy is not necessarily a profitable client.

Sometimes, what looks like business growth is simply an accumulation of unpaid work.

Some clients will always promise to pay tomorrow. They are waiting for a transaction to close, money to come in, or a debtor to pay them.

You agree to wait because you want to be understanding.

Then tomorrow becomes next week, and next week becomes next month.

Meanwhile, you have already done the work.

Before you realise it, you are financing the client’s legal matter out of your own pocket.

Your landlord, staff and suppliers, however, cannot be paid with promises.

There is nothing wrong with accommodating a genuine client in difficulty, provided it is a deliberate and affordable decision.

The danger is allowing your firm to become a credit facility without clear terms or limits.

Practical advice: Agree on fees and payment timelines in writing. Where appropriate, request an advance payment or agree on instalments linked to stages of the work. Address arrears early rather than allowing them to accumulate. If non-payment eventually requires you to consider ceasing to act, comply with the applicable professional and procedural requirements.

UNDERCHARGING: THE PRICE OF BEING AFRAID TO LOSE A CLIENT

Many young advocates are uncomfortable discussing fees.

You worry that the client will think you are too expensive or walk into another office.

Sometimes, before the client has even negotiated, you have already reduced your fee.

I understand the temptation.

When you are trying to establish a firm, every client feels important.

But undercharging can become a habit that leaves you working twice as hard for half the return.

Consider the consultations, document reviews, drafting, correspondence, court attendance and follow-up that a matter may require.

If your fee does not reasonably reflect the work involved, you may spend weeks on a file that cannot sustain the time and resources invested in it.

You become exhausted, take on more files to compensate, and end up working even harder without improving your financial position.

A low fee does not automatically make you accessible. Sometimes, it simply makes your practice unsustainable.

This does not mean charging every client the highest possible fee.

There is room for reduced fees, pro bono work and flexible arrangements.

But these should be deliberate choices, not the result of fear or desperation.

Practical advice: Before quoting a fee, understand the scope and complexity of the work, estimate the time and resources required, and consider the applicable Advocates Remuneration Order and other professional requirements. Explain what the fee covers and agree on how additional work will be handled. If you offer a reduced fee, make it a conscious decision rather than an automatic response to the fear of losing a client.

Remember, you are not charging only for the time you spend in court. You are charging for your preparation, knowledge, judgment and professional responsibility.

THE CLIENT WHO THINKS YOUR TIME IS FREE

Some clients may pay the agreed fee but still consume far more of your time than the arrangement reasonably covers.

They call early in the morning, message late at night, revisit questions already answered and expect lengthy consultations whenever something concerns them.

A short conversation becomes an hour.

A simple update becomes an afternoon of explanations.

And because you want to be helpful, you keep responding.

Slowly, the boundaries between professional service and unlimited access disappear.

You may have agreed on a fee for specific work, but you are now handling additional issues without discussing whether they fall within the original engagement.

Clients deserve attention and proper service.

But being committed to your clients does not mean being available at every hour, for every issue, without limits.

Practical advice: Establish clear communication expectations from the beginning. Explain your ordinary availability, how urgent matters will be handled and what falls within the agreed scope of work. Record the work you do. Where a client introduces a new issue or requests substantial additional work, discuss the scope and any additional fee before proceeding. You can maintain excellent client service without giving away your time indefinitely.

HOW YOUNG FIRM OWNERS BUILD A FINANCIALLY SUSTAINABLE PRACTICE

You do not need a large office, a big team or sophisticated accounting software to run a financially responsible law firm. You need discipline and a few practical habits.

1. PUT EVERY ENGAGEMENT IN WRITING

Use a retainer or engagement letter for every client, including friends and relatives. Clearly define the scope of work, fees, payment terms, disbursements and how additional work will be handled.

Practical advice: Never rely solely on a verbal understanding. A clear written agreement protects both you and the client from misunderstandings about the work, the fee and when payment is due.

• COLLECT FEES DELIBERATELY

Do not assume that a client will pay simply because you have done the work. For longer matters, vague promises to pay when money becomes available are not a reliable payment plan.

Practical advice: Where appropriate, agree on an advance payment before commencing substantial work. For longer matters, set clear payment milestones. Follow up on outstanding fees early, and do not allow arrears to grow without addressing them. If you must consider ceasing to act, observe all applicable professional and procedural requirements.

• KNOW YOUR NUMBERS

At the end of every month, know how much you billed, how much you collected, how much remains outstanding and how much you spent. Billing is not collecting, and neither is the same as profit.

Practical advice: Maintain a simple spreadsheet or accounting system that records fees billed, fees received, outstanding balances, operating expenses and expected payments. Review it monthly. Do not rely on memory or judge the health of your firm by the number of files on your desk.

• KNOW THE COST OF RUNNING YOUR FIRM

Rent, salaries, internet, subscriptions, transport, taxes and professional expenses all matter.

If you do not know what it costs to keep your practice running, you cannot make sound decisions about fees, staffing or growth.

Practical advice: Calculate your monthly operating costs and understand the minimum income your firm needs to meet its obligations. Consider these costs when setting fees and deciding whether you can afford to take on additional expenses or expand.

• SEPARATE BUSINESS FINANCES FROM PERSONAL FINANCES

When starting out, it is tempting to use money received from one client to pay rent, another payment for personal bills, and your own money to cover office expenses.

Over time, it becomes difficult to know whether the firm is actually making money.

Practical advice: Maintain appropriate business banking arrangements and proper accounting records. Record every payment and expense. Pay yourself deliberately instead of withdrawing money whenever you need it. Set aside funds for taxes and foreseeable obligations, and build a reserve for slower months where possible. Keep client money separate and handle it strictly in accordance with the applicable client-account rules; it is not the firm’s operating income.

• REVIEW YOUR FILES AND LEARN TO HAVE THE FEE CONVERSATION

Some files consume enormous amounts of time while carrying long-outstanding balances. Others gradually expand beyond the work originally agreed upon. Avoiding a conversation about money does not make the problem disappear.

Practical advice: Regularly review your files for overdue fees, unclear payment arrangements and work outside the agreed scope. Discuss fees professionally and early. If a client cannot agree to a workable fee arrangement, recognise that retaining that client at a loss may be more damaging than losing the instruction.

• BUILD A PRACTICE THAT CAN SURVIVE A SLOW MONTH

A good month can create the temptation to hire more staff, move to a bigger office or take on new expenses. But one successful month does not guarantee that the next will be equally good.

Practical advice: Plan around money actually collected, not fees you hope to receive. Keep reasonable reserves where possible, control overheads and expand gradually. Growth should strengthen your practice, not leave it more vulnerable when collections slow down.

BEFORE YOU TAKE THE NEXT BRIEF: DO THE BUSINESS CHECK

As advocates, we are trained to analyse the legal merits of a matter.

We look at the facts, the evidence, the applicable law, the remedies available, and the chances of success.

But when you are running a firm, there is another assessment you must make.

Can this matter be handled sustainably under the proposed fee arrangement?

Before accepting an instruction, ask yourself:

What exactly is the scope of work? How much time and responsibility is this matter likely to require? What fee will I charge, and when will it be paid? What disbursements or other expenses will arise, and who will meet them? Does the proposed fee cover the work I am being asked to undertake? What happens if the matter becomes more complicated or the scope changes? Is the client willing to agree to clear terms in writing?

These questions are not about treating every client as a source of money.

They are about ensuring that you understand the professional commitment you are making and that the arrangement is clear to both sides.

A well-managed file begins with a clear understanding of the work, the fee, and the expectations.

MY FINAL WORD…

When you are a young advocate, it is easy to believe that the answer to every business problem is more work.

More clients. More files. More court appearances. More consultations. More hours at the office. And sometimes, more work is exactly what you need.

But there comes a point when you must stop and ask yourself whether the way you are working is actually building the practice you want.

Are you charging fairly for the work you do? Are your clients paying within the agreed timelines? Are you keeping track of your expenses? Are you protecting your time? Are you making decisions based on the financial reality of your firm, or are you simply trying to stay busy?

These are not questions that make you less of an advocate. They are questions that make you a more responsible firm owner.

There is nothing unprofessional about insisting on a clear retainer.

There is nothing shameful about asking a client to pay an outstanding fee.

There is nothing wrong with reviewing your charges, setting boundaries, and deciding that a particular fee arrangement is not sustainable.

And there is certainly nothing admirable about exhausting yourself to keep a firm running while quietly accumulating unpaid work and financial stress.

You entered this profession to practise law, serve clients, and build a future.

You did not open a firm simply to spend every day working without knowing whether the business can sustain itself. Your practice must serve your clients, but it must also be able to sustain the person running it.

Remember that your time is finite. Your resources are finite. Your energy is finite. You cannot keep giving all three away and expect the business to grow.

A successful legal practice is not measured only by the number of files you handle, the number of clients who call you, or how late you leave the office.

It is also measured by whether you can pay your bills, meet your obligations, compensate your staff, provide quality legal services, and earn a reasonable return for the work you do.

So, the next time you look at your diary and see that every hour is filled, do not just congratulate yourself on being busy.

Look at your fees. Look at your collections. Look at your expenses. Look at the work you have done and the money you have actually received.

And ask yourself one simple question: Am I building a law firm, or have I simply created a job where I work endlessly and pay myself last?

Because the goal is not to be the busiest advocate in the room.

The goal is to build a practice that is professionally sound, financially sustainable, and worthy of the years of work you have invested in it.

Protect your time. Value your work. Know your numbers. Build your practice.

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