Now could be a great time to start a law business

While it might seem counterintuitive, now could prove to be an ideal time to start a law business.

As the world grapples with how to operate in a pandemic and post-pandemic reality, the need for legal services will remain. More importantly, individual and institutional clients alike will need fresh approaches on how to deliver those services. Clients will be seeking more than the status quo, and small law firms could offer the most attractive options.

History supports crisis-related innovation

Times of crisis often result in innovations and tremendous evolution in society. As Business Insider notes:

“General Motors, IBM, and Disney were all founded right before the Great Depression. Google, Salesforce, eBay, and Amazon all came out of the dot-com bubble. And Facebook, Twitter, and many others made it through the economic crisis of ’08.

Whether you start a company before, during, or after a recession or global crisis does not necessarily mean you are going to be more successful in the long term. If anything, global crises are what highlight the next generation of problems the world needs to solve to move forward — which gives rise to dozens and dozens of new companies, new markets, and new industries.”

Consider some of the many breakthroughs sparked by global crises throughout history, including:

  • The printing press, developed after the second Plague of 1346
  • The ambulance, in response to the Napoleonic Wars
  • The light bulb, steam turbine engine and refrigeration, all developed during the Long Depression of 1873 to 1896
  • The zipper, rubber and modern plastic surgery came out of WWI
  • The pandemic of 1918 led to the discovery that DNA holds genetic code

These are just a few of a long list of developments that sought to improve quality of life in response to crisis. When communities or countries struggle through difficult times, it shines a light on what people need most.

Applying crisis innovation to business

As lawyers, we can apply that spirit of innovation and improvement to our law practices.

For those of you considering a move to private practice, that can mean offering a new niche service or creating a business model that better meets the needs of your target client base. Maybe your new firm will serve companies who have been thrust into new operating models themselves. As they try to navigate managing a remote workforce or conducting business deals virtually, they will need the support of a nimble and skilled law team.

You might not deliver something completely new to the market: You don’t have to discover DNA or invent the light bulb. What you can do is improve upon the way clients receive legal services and use your years of experience to create better processes and systems.

Crisis-informed thinking

While existing businesses scramble to react to a crisis, new businesses can approach the problem with fresh eyes.

Forbes contributor Stephen Wunker highlights some ways businesses have innovated during the pandemic, including:

  • “Costovation” changes, which help clients cut costs while maintaining access to the services they need
  • Collaboration, which allows distinct businesses to flex and share resources as needed
  • Client loyalty, which you can foster by going above and beyond with care and service
  • Needs assessment, which may mean delivering new services depending upon clients’ greatest pain points and new ways of operating
  • Client experience; New law practices have a unique opportunity to completely rethink the client experience and launch a model that best meets their needs with today’s realities in mind

Operating an independent practice or small law firm gives you the flexibility and the autonomy you need to make innovative decisions like the ones above. In addition, you have options for where and how you conduct business. Setting up shop in a shared office setting, for example, helps you minimize financial risk while also connecting with other business owners for collaborative opportunities.

As the world around us reacts and changes during this collective crisis, we have the opportunity to create and build healthier businesses and communities. The market still needs legal services, and now could be the time to bring life to your unique vision.

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