How to Start Your Competitive Law Practice
Advice for Legal Professionals
Starting a law firm could be one of the best decisions you make. It could give you the freedom to set your own schedule and the ability to choose the cases you take. Unfortunately, most law schools focus on teaching people to be lawyers and not how to run a business. With that in mind, here are some of the factors you should consider if you are thinking about starting a law firm.
Am I Ready to Start a Law Firm?
This is the first question you need to consider. The skillset needed to be a lawyer and the skill set needed to run a business are completely different. As your business grows and matures, the challenges you face will grow with you.
Questions to ask yourself before starting a law firm include:
- Do I want to take on the responsibility of running a business?
- Am I ready to commit myself to being a leader, business owner, and attorney?
- Do I understand that I will need to spend time working on my business in addition to billable work?
If the answers to these questions are yes, then you may have what it takes to build a successful law firm.
Is Starting a Law Firm Expensive?
Starting a law firm is going to cost more money than you think. If you plan right, it doesn’t have to put you in the poorhouse. Expenses will vary based on what you are expecting your law firm to be like. For example, if you want to hire a paralegal, you must factor in money for a paralegal salary. The same is true for secretaries or other lawyers you are looking to hire on.
If you cannot afford the things that you need to build a professional law firm, you are not ready to start your practice. Here are some things you should have money for when you start your law firm.
Living Expenses
You will need to keep a roof over your head and food in your stomach. It may take months before your law firm turns a profit. You need to have money saved for at least six months of living expenses.
Startup
You need to spend money to start a law firm. It is going to cost you between $5,000 and $15,000 to get your firm open. There are variables to consider, including where you are located and advertisements.
Office Supplies
You can economize here. Some lawyers work in a home office and start with just a desk and computer. If you feel that you need an office space and office furniture, you need money set aside to cover your first year of rent, utilities, and expenses.
Only purchase the supplies that you need. The latest in office supplies might look cool, but they serve as a distraction.
Insurance, Legal Software, and Marketing
If you are going to be successful, you will need to have insurance, you need the right legal software, and you will need marketing. Continued legal education, licensing, and malpractice insurance are not optional. Legal software is optional, but not having it means that you spend more time doing routine tasks and have less time to grow your law firm.
You have some leeway in marketing as well. You should have the basics, including business cards and a website. Social media can be a free form of advertising. However, to get the results you want, you usually have to pay for them.
Create a Vision for Your Law Firm
Your law firm’s vision should be quantifiable, easy to understand, and easy to talk about. Don’t fall into the trap of thinking that your business’s vision needs to be confined to one sentence. It can be as long as you need it to be.
What are the core values of your law firm? What is your business model? How do you see that helping you earn revenue?
All of this is not something that you figure out in 90 minutes. It may take weeks, months, or even years. As you are going through this process, remember that your law firm should be focused on your clients, use current technology, and follow a business model that is profit-oriented.
Conclusion
Starting a law firm is not for hesitant hearts. Learn all you can on your own, but don’t be afraid to get help from coaching professionals. This can increase the chances of your law firm being successful.
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