Starting a law firm
Given today’s technology and the growing acceptance of working from anywhere, mainly from home, it has never been easier or more affordable to start your own law firm. New cloud technology has changed what a modern law firm and businesses can look like, introducing simplified IT, reduced overheads, flexible working and completely virtual offices.
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So how do you make this dream a reality?
SI ICT supports legal entrepreneurs with the courage and ambition to fulfil their passion. Read our informed guidance and useful links to help strategize and plan your first, but most important, steps to setting up on your own.
How do you start a law firm?
Are you a lawyer that has always had an interest in starting your own firm? Maybe you have an entrepreneurial scratch that you are ready to itch or have an area of legal expertise that you would like to focus on?
Whatever your reason, if you want to start your own law firm you are in for quite an adventure. Not only do you have to be a top-notch lawyer, but you’ll also have to be an ace business person.
If you want to start your own law firm, ask yourself why you want to start your own law firm.
Starting your own law firm is a large undertaking. It will require a lot of work, and a set of business skills that you may not have developed from being a practicing lawyer in a law firm. Being in business for yourself requires discipline, courage and moxie. You must be a go getter and a self-promoter.
Many are attracted to law because it is an intellectual profession that includes a lot of reading and writing. Owning a business also requires a lot of reading and writing, but it also requires a lot of self-promotion, networking and socializing.
Think seriously about if you have the character skills to start your own law firm. Some characteristics you may need:
- Discipline
- Perseverance
- Confidence
- Tolerance for risk
- Self-motivated
Before you make the decision to start your own law firm, take a good, hard look at your character, habits and motives. Do you have what it takes?
If you are not deterred and feel certain you have the gumption to start your own firm. Go for it! A good first step is to shadow someone who is running the type of firm you would like to run.
Find a successful firm of the type you would like to have and reach out to them. Maybe invite them or coffee and ask them questions. Most business owners enjoy sharing their stories and offering advice.
You can also ask around professional organizations for someone willing to share their knowledge with you. Don’t be afraid to learn from someone else’s lessons. (Read more for a list of resources)
While you’re at it, find a mentor. A business mentor is someone with more experience than you that wouldn’t mind making themselves available for help and advice. For many it would be an honour, so don’t be afraid to ask.
Find someone you respect and have a good rapport with. Honesty and good communication is key. You shouldn’t be afraid to ask questions or speak your mind.
Business structure: How will you organize your law firm?
To start your own law firm, you will need to select a business structure. Your business structure will have legal and tax implications, so it is important to choose the right type based on how your firm will operate.
If you are going to be a solo practicing attorney, you may choose to incorporate yourself or form a limited liability company.
A sole proprietorship is the simplest of business structures, but it offers no distinction between you as a person and your business.
If you are going to have a partner in your firm, you may want to consider a partnership or a limited liability partnership.
Finally, there are various types of business structures all with unique pros and cons. Think long term and set your firm right from the start.
Clients: Who do you want to serve?
The opportunities here are endless. But it is something you must know before you start your own law firm. Who are your clients? You must know who your ideal client is so that you can develop a plan to market to this client.
Starting your law firm with help from employees, independent contractors or temporary help.
When you start your own law firm, are you going to need staff? If so in what roles and how many people?
You have lots of options for firm staff. You can hire secretaries, paralegals and receptionists. You can even have an office manager (something you should consider if you are starting big.)
If you are starting from your boot straps, you can hire independent contractors on an as-needed basis. This allows you to get the assistance of a paralegal or legal assistant if you need it, but you don’t have to keep a full-time staff. This is a nice option in the beginning while you build up your client base.
Marketing: How are your clients going to find you?
Now you have an ideal client. How are they going to find you? Think of marketing as a strategy to make yourself visible to your ideal client.
What channels would this client use to find a lawyer? Internet? Word of mouth? Print or television commercial? Whatever the answer is where you should focus your marketing efforts.
A marketing plan takes time and can be adjusted based on what is working well. But don’t forget to track your channels to see what works for you.
Every new client contact should contain the question, “How did you hear about our firm? This is critical information when determining what marketing channels are working and what isn’t.
Don’t forget to take advantage of every free or low-cost marketing opportunity. You can sponsor charity events or youth sports programs. You can also write professional articles and blogs for consumer web sites and magazines.
Setting up an office for your law firm.
A great thing about starting your own law firm today is you have a lot of choices about your office. You can have a traditional office suite in a high rise or an office condominium or a virtual office. You can also set up in shared space offices, hybrid working, just remember to establish good client confidentiality practices.
You can have a home office and rent a space as needed for meetings. You can even borrow the conference room of a friend’s business.
Many meetings these days occur virtually, in coffee shops and restaurants and many entrepreneurs have no office.
This decision is up to you and of course how you wish to set up your law firm. No matter what you decide – confidentiality is key. You must ensure you can protect client’s private information.
This is where technology and systems can help with secure cloud based technology to run your firm:
- Legal practice management system (Clio) – which gives you everything you need to manage and grow your firm, including tools for: client intake, case management, document management, time and expense tracking, billing, online payments, and a whole lot more
- Microsoft 365 or Google Workspace – which give your organisation world class security, email, storage, collaboration tools and a full suite of productivity tools that you need to run your firm
- Website, brand, social media and digital marketing tools – which help with your visibility, allow you to engage with your clients better and help better showcase your unique selling points
For more see our helpful links to start a new law firm
Insurance: Don’t go without it when you start your own law firm
Insurance is a must when you start your own law firm.
One uninsured claim can close your doors. Make coverage a priority and purchase your insurance form a trusted professional.
The policies and coverage you need will depend on your practice. Many companies offer them specifically designed for law practices and they usually offer a mixed bag of coverage.
Insurance may include some coverage for professional liability, general liability, property coverage, crime and employee dishonesty.
When you start your law firm, remember to check with a trusted insurance professional / provider to make sure that you have all the coverage you need.
A business plan
A business plan is an essential tool when you start your own law firm. By creating a business plan, you make decisions about your law firm and how you will operate. It also helps you set long and short-term goals.
A business plan can serve as a roadmap to keep you focused and on track while you are beginning your law firm. If you invest some time in your business plan, it will pay off as you go by keeping you focused and on track.
Here are a few things to include in your business plan when you start your own law firm:
Narrative: Sometimes referred to as an executive summary. This is just a paragraph describing your law firm. Who you are and what you do.
Marketing strategy: This is critical. This is the time to outline your target clients and your marketing channels.
Financials: Here you will want to think about your projected income and expenses.
Emergency plan: All business should have an emergency plan. Make it part of your business plan. It should include insurance information, plans for natural disasters, a business continuity plan and a response plan if you suffer some type of cyber security breech.
Still want to start your own law firm?
Starting your own law firm will take a lot of work, but the rewards will be great. Take one step at a time, use your resources, protect yourself and plan.
If you would like to discuss the technology to help run your law firm?
Book a free consultation with SI ICT