The stages of law firm growth from solo practice to larger firm

You hang your shingle, put out the word that you are serving clients … and then what? How do you grow from independent lawyer, working alone, to hiring staff and additional attorneys? What steps will help ensure your success? All stages of law firm growth require innovative thinking, relationships and savvy business decision-making.

1. Independent Practitioner

Many independent lawyers first work in big law firms, so they know the ropes. They know how to manage clients and cases and perhaps have court experience under their belts as well.

When launching their own firms, however, the business side of a law firm might come as a bit of a shock. When everything is up to you, how do you manage your time? How to you attract new clients? What’s the best way to market your services? When your client roster grows, how can you best meet their needs and still focus on business development.

That first year or two in solo practice can feel daunting, but you can learn from others who have been there before you. To succeed as a new, independent law firm:

  • Find a mentor who can support you through the entrepreneurial questions
  • Plan, plan, plan; A strong, living business plan will keep you on task
  • Limit overhead costs, but not at the expense of isolating yourself or limiting potential
  • Get serious about building and maintaining your professional network
  • Work alongside fellow solo attorneys; both for moral support and for opportunities to collaborate
  • Ask questions and don’t try to reinvent the wheel

You may be operating as a solo firm, but people will continue to be your best resource and asset as you grow.

2. Small Law Firm or Boutique Law Firm

After a few years in solo practice, many firms make the decision to add administrative staff, paralegals, junior attorneys or even partners. That growth can feel like a giant leap, and it brings with it brand-new questions about how to manage clients and growth.

When you grow to small or boutique firm status, consider:

  • Office space needs that allow your team to collaborate and flourish
  • Technology investments that streamline case and client management
  • Maintaining your professional reputation and brand, which includes meeting clients in the right setting
  • Forging collaborative partnerships with complementary firms
  • Expanding your marketing efforts
  • Elevating your firm’s exposure and reach through sponsorships and speaking opportunities

3. Medium to Large Law Firm

Once you reach this stage of growth, you likely have at least five or six attorneys and additional support staff. You have dialed in your marketing and business development efforts, and your revenue reflects your success. However, now is not the time to take your eyes off the future. Even firms at this stage of growth can improve and help ensure their success for years to come.

Think about:

  • Collaborating with complementary law firms to maximize real estate investment
  • Keeping tabs on changes in the market and evolving client needs
  • Staying ahead of the “what’s next” curve
  • Finding ways to ensure above-and-beyond client care and service
  • Revising your business plan and financial strategies to support long-term growth mode
  • Considering your leadership and succession planning strategy
  • Maintaining relationships with other firms rather than isolating

Collaboration will guide much of the future of law, and medium to large firms that embrace this trend will become more attractive to clients seeking individual expertise.

Growth mindset can help law firms of all sizes. As an entrepreneurial lawyer, you need to stay current on the business landscape as well as your legal practice knowledge. Maintaining strong relationships and ties throughout the legal industry will help you do so. Together, small and large law firms alike are changing the way we deliver law and improving the client experience at every stage.

Throughout all stages of law firm growth, LawBank can help you with your real estate needs. Grow your firm alongside a community of likeminded entrepreneurial lawyers or maximize your existing office space. Reach out to us today to learn more.