Going Over to the Business Side of the Fence

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Going Over to the Business Side of the Fence [By A. Harrison Barnes] Several years ago, I was at a seminar and a brilliant lawyer introduced himself to the group. The lawyer had recently retired; however, he had spent the better part of his career working for a major motion picture studio. He was a Harvard Law School graduate and one of the most relaxed and carefree attorneys I had ever met. He lived in Malibu, CA, on a street where I estimate the houses ran somewhere around $5 million and up. He was so “unlawyerlike” that I approached him and asked him what sort of law he practiced. I had never met an attorney like him.

The man was very happy but often mumbled

attorneys about their careers. There is a rare

If you take a hunting dog out in a field and

to himself from time to time as he thought. I

breed of attorney out there that does not

show it a tennis ball, the dog will likely

do not think he had ever been married, and

practice law and simply practices business

start shaking out of excitement. The dog

he had a lot of presence, but it was not the

in an advisory capacity inside corporations.

will know that if you throw the ball, it will

sort of presence a law firm or corporation

In many respects, I believe this is one of the

have the opportunity to chase it and return

would want to show off to the outside world.

rarest sorts of attorneys out there. It is as

it to you. The dog is like this because it is

He also was not the savviest dresser; for

if these attorneys are taking the skills of

in its blood. The dog is bred to chase, and

example, his socks did not match. Moreover,

the best litigators (oratory skills, the ability

psychologically, emotionally, and in every

he did not seem to have the best hygiene. He

to read people, the ability to understand

other way, it wants to chase the ball. Some

probably shaved and/or trimmed his beard

the motivations underlying what people

hunting dogs, such as Britney Spaniels, will

no more than a couple of times per year.

are thinking, and the ability to package

chase balls over and over again until they

and market ideas) and corporate attorneys

die. Their love of the chase is so strong that

What made the man interesting to me was

(the ability to understand business issues,

it is quite literally in their bones.

that whenever he said something or made

the ability to see small details and their

an observation, he seemed dead-on. He

significance, and the ability to negotiate

When an attorney who is more interested

would watch people in our group and make

effectively) and combining them with an

in the business side of things is presented

observations that were incredibly accurate.

understanding of forces that operate in the

with any legal issue—be it a case or a

market and how they shape events.

transaction—he or she is likely going to be

“I practiced for one year at Irell,” he told me.

most interested psychologically, emotionally,

“Then I went to work at a major studio. They

The purpose of this article is to examine the

and in every other way in what is going on

very quickly figured out I was not that good at

characteristics that make someone a good

from a business point of view. If it is a drug-

practicing law but had a real knack for very

attorney-businessman. The better you are

dealing criminal case, the attorney will most

good opinions about what the other side was

at something (e.g., business or the practice

likely be concerned with questions about how

going to do in a negotiation. Essentially, all

of law), the more likely you are to move

much the dealer paid for the drugs, the profit

I did throughout my career was spend the

toward doing it. For the attorney desiring to

he or she sold the drugs at, and the chain of

majority of my time writing memos about

go in-house, I think this is an exceptionally

possession in terms of where the drugs came

what I thought the other side was going to do

important examination of a very important

from. This type of attorney might even think

in a studio negotiation—just my opinions and

topic. If you have no business on the business

in terms of cost-benefit analysis and reach

no law. In fact, I got very rich doing this.”

side of things, you are in for trouble and will

conclusions about the efficacy of dealing

likely not do well. If you have a good head for

drugs as a business venture.

He went on to tell me that he had been in

business, you should be in-house.

magazines like Vanity Fair and that he had

You see, some people are born to do certain

frequently attended parties and befriended

Below, I will describe the major

things, and others are not. It is all about what

numerous stars. He would mumble about

characteristics of the attorney who belongs

you love. I like to do yoga, and at the studio

how so and so was crazy, so and so was

on the business side of the equation.

I go to, there are a bunch of people who get

generous, and so forth. He was almost, in

up at 4:00 a.m. every day to go there to do a

many respects, like a comic jester of sorts—a

1. The attorney who belongs on the

special type of yoga. For the time being, this

very interesting person to have around.

business side of the equation is more

is not something that appeals to me in the

interested in the business elements of what

slightest, but for others it is.

Throughout my career, I have met thousands

is going on than he or she is in the legal

of lawyers and counseled thousands of

implications.

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If you really, really want to be on the

Working as an asphalt contractor is tough,

of mistake I have often witnessed occurs

business side of things and you belong

and it requires a lot of street smarts and

when the attorney has a lot of small clients

on the business side of things, then you

hustle. This was the best experience I ever

who are primarily entrepreneurs with little

should already be there. You most likely are

had, and it taught me a lot.

education. Such entrepreneurs are often very impressed by the credentials of the

spending the majority of your time thinking about the business side of what you are

Having a business background, being a legal

attorney and will turn to him or her for all

doing. You probably have also been attracted

recruiter, and also being an attorney have

sorts of advice. Their lack of education will

to the business side of things for a long, long

given me the ability to see attorneys from

make them more prone to using the advice

time anyway and do not need anyone to tell

these various perspectives. One thing that I

of attorneys than they might otherwise be,

you this is what you want. Just hearing about

have clearly noticed is that the ability to be

and the attorneys giving advice to these

the business side of things should conjure up

good at practicing law does not translate

entrepreneurs will often very quickly become

many ideas in your mind about what you can

into the ability to be good at business, and

disillusioned that they are smarter than

accomplish with the problem at hand.

vice versa. I have seen countless attorneys

their clients and would have much greater

from top law schools and firms go into

success running their clients’ businesses.

Conversely, I can always spot “true lawyers”

business with arrogant attitudes, assuming

because whenever they hear about an

that the ability to be a good businessperson

I used to spend a lot of time flying small,

issue, their minds start running to all the

is similar to the ability to practice law. In my

single propeller airplanes. In Los Angeles,

legal implications of whatever is involved;

experience, nothing could be further from

where I live, there are a lot of people who

that is where their minds go instinctively.

the truth. With only some exceptions, I have

own jets. Jets are very, very expensive, and

You cannot fake this kind of passion, and it

met few attorneys with good business skills.

a decent one costs at least $6 million, if it is small; then you need to pay thousands of

goes without saying that there are certain people who really belong on the legal

Attorneys, however, often believe that they

dollars per hour to fly it, store it when you

side of whatever they are doing. The law

have good business skills. More often than

are not flying it, maintain it, overhaul it once

is fascinating to them, and their minds

not, they end up giving clients other advice in

every year, pay for insurance, and pay for

simply work like that. This is a good thing.

addition to legal advice, eventually coming to

the pilot’s salary and lodging wherever you

It demonstrates why an attorney should be

believe that they know what they are doing in

travel. (Most of the guys flying around in

practicing law to begin with. If your mind

the business arena based on this association.

these things have their own private pilots.)

does not work this way, you should not

When a company or person is being

be practicing law—especially if you are

counseled by an attorney, the attorney and

Small airports are small communities. There

passionate about the business side of things.

his or her advice is often only a small part of

are usually a couple of guys who operate a

the equation, however. There are numerous

fuel truck or man the pump at the airport.

2. The fact that you are good at law does not

factors that the company and others will rely

In flight schools, the instructors and others

mean you are good at business; you need to

upon in reaching a decision and, most often,

know who owns which plane, for example.

understand both fields before acting.

the attorney’s advice will be a smaller part of

When I consider the many private jet owners

the equation.

I have encountered over the years, I do not think a single one of them was an attorney.

From the time I was 18 years old until the time I was 26 years old, I spent my

Remember that the fact that you are good at

Rather, they were guys who owned car wash

summers, and virtually all of my free time,

one thing does not mean that you are likely

chains, ran phone book printing operations,

working as an asphalt contractor. This

to be good at another. Attorneys are typically

manufactured rolls of aluminum for sale to

position involved going out and selling

quite risk averse, always looking for ways

China, manufactured cardboard boxes for

asphalt services to homeowners, then to

to preserve what is already there. Business

television sets, and did other similar things.

businesses, and, eventually, to cities. I was

people may or may not have some of the

very good at this, in many respects. It was

same objectives; however, they are also most

Most of these guys had very little education,

only by accident that I did not end up doing

often concerned with expansion, catering to

and when they did, they generally had gone

this for a living. I was so convinced that I

other people’s interests, and getting more

to schools that would not impress most

was going to do this that I was applying to

business.

attorneys. Most of these guys also had big law firms like Latham and Watkins and

master’s degree programs in construction and asphalt management my last year of

Before you jump in on the business side of

Skadden Arps working for them. Most of

college and only ended up taking the LSAT

the equation, you need to make sure that

these guys probably had not worked in law

at the last second—in March of that year.

you understand what you are doing. One type

firms like these, and most of the attorneys

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in these law firms could never have done the

There are a hell of a lot of easier ways to

If you are brilliant enough and have enough

things these entrepreneurs were doing; it is

make money than by being an attorney.

wits, you can find these sorts of jobs, and

simply a fact. Even if an attorney is good at

Would you believe that there are tons of

they are somewhat plentiful. People seem

one thing, he or she is not necessarily going

people out there with no knowledge of

to love these sorts of attorneys in the Los

to be good at another. Being an extraordinary

medicine making $500,000+ annually selling

Angeles area, for example. I once knew a guy

businessperson is very different from being

pharmaceuticals to doctors? There are also

who worked for a studio mogul and spent

an extraordinary attorney.

tons of auto dealerships at which the average

most of his time negotiating with architects,

sales associate makes more than $125,000

art dealers, and others for the mogul. He

3. If you thrive on expansionist (as opposed

per year, and you cannot stay employed at

made an exceptional living. I have also

to reductionist) thinking, you are likely to be

these dealerships unless you do, too.

seen countless attorneys leave lucrative

a good businessperson.

A good attorney will reduce things to their essentials and parse the facts out for display. Conversely, a good businessperson will lay out the facts, as well, but will also think about how to grab onto the most facts and make them into something significant, asking himself or herself, “What can be done to make this bigger and better?”

If you are the latter, you likely know it. If you are unsure, that should tell you something right there.

4. If people imagine you in business and not as an attorney, this should tell you something.

People who should be practicing law are often quite recognizable to others. People who are supposed to be attorneys will hear other people say they “look” and “seem” like attorneys. People who belong in business will hear people close to them saying the opposite. If you belong in business, you will have heard people say so.

5. If you went to law school to make money, you may belong in business.

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partnerships in law firms to go in-house and People who are most interested in making

work inside companies in advisory roles.

money often do not belong in the practice

The ones who truly have business skills very

of law. If you are good at practicing law and

quickly leave the practice of law.

truly enjoy it, you may make a lot of money doing it—but the interest in simply making

If you want to be treated like a lawyer,

money is generally most appealing to people

respected like a lawyer, and turned to for

on the business side of the fence.

advice like a lawyer, the best-kept secret out there is that you should go in-house and

Conclusions

work inside a corporation—and then get yourself on the business side of things. The

Do you belong on the business side of

role of an attorney in-house is often not a fun

things? You need to reach within yourself and

one. Unlike other sorts of attorneys (such

ask questions relevant to deciding whether

as those working inside law firms), in-house

this is really for you. If being on the business

attorneys usually are not cherished assets

side of things is for you, the chances are

to their organizations. In-house attorneys do

very good that you already have an innate

not generate revenue for their companies;

interest in business and are drawn to it on a

instead, they spend the majority of their

cerebral—and even a spiritual—level.

time telling the management and others within the organization why they cannot do

Being on the business side of things does

the things they want to. When you are on the

not necessarily mean more opportunity. For

business side of things, you can push to do

a good attorney, there is more opportunity

certain things that will actually expand the

practicing law if that is what he or she is

business you are working in.

most interested in; however, for an attorney who is interested in the business side of things and finds them more interesting than practicing law on a day-to-day basis, an inhouse job is often the very best ticket.