Smart people often counsel us to diversify our investments. “Don’t put all your eggs in one basket,” they say. From an investment standpoint they’re probably right. If all your money is in gold or oil futures or a single stock and the market turns south, your losses could be catastrophic. But diversification has a dangerous side.
If you are building a law practice, buying a restaurant or another business that requires your time and mental energy is usually not a good idea. Buy (or start) another business only after your practice is at a point where you can devote some time to the business. Donald Trump made several fortunes in real estate before he branched out into other businesses. Donald Sterling made a bundle as a personal injury attorney before he turned to real estate and only years later to buying sports franchises.
Most people who try to build two businesses simultaneously usually fail to achieve great success in either. Perhaps that’s why Mark Twain said, “Put all of your eggs in one basket and then watch that basket.”
Yes, I started my attorney marketing business while I was still practicing. It was the kind of business that only required a few hours a week at first, to see if I could make a go of it. Once I did, I began shutting down my practice as I ramped up the new business. After a couple of years, the marketing business was running smoothly. I had competent staff who were taking care of the day-to-day operations and the demands on my time were minimal. At that point, I started another business. Again, just a few hours a week at first.
Today, I own two successful businesses. I would never have been successful in my practice or businesses had I tried to build them at the same time.
Okay, you get this. You wouldn’t lose focus and try to build two businesses simultaneously. But a lot of attorneys do exactly that and they don’t even know it.
When you try to build a family law practice, for example, and you also handle personal injury, you’re building two businesses simultaneously. Each practice area is different. Each has it’s own rhythm and culture. Referral sources are different. The judges are different. Marketing is different.
Some practice areas compliment each other. Many don’t. Put all your eggs in one basket and let the world know that you have the finest eggs available.
If you want help in choosing the right basket, get The Attorney Marketing Formula.
