When starting a law firm, you define your success
The pandemic affected how we approach both business and life, and many entrepreneurial lawyers have considered starting a law firm.
If you have considered it and dismissed it as crazy, think again. You might just live out your own definition of success.
Meet the demand
Recent hiring and recruiting data shows that associate attorneys are in high demand right now, which highlights an overall need for legal services. The story behind those numbers reveals some challenges for the biggest name firms: namely attorney satisfaction, overwork and burnout.
As big law firms scramble to recruit, hire and retain talented lawyers, small law firms have a golden opportunity to meet client needs in a new way. As an independent lawyer or small firm, you have more opportunity to target a niche practice area. You can also deliver high-quality and personalized client service more easily than your big competitors.
Launch strategically
Before you decide to go solo, take the time to write a business plan. Give yourself a few weeks to complete this step, but don’t overthink it. Keep in mind that a business plan can evolve and grow with your business, so you’re not married to what you write in this initial phase. However, it gives you some clarity for how to launch and grow in a realistic manner.
Your business plan should include:
- Mission, vision and core values
- What sets you apart from your competitors
- Your target market, including your niche law practice area
- Operational considerations, including office space, overhead costs and other finances
- Projections for your first year and beyond
- A clear idea of how much money you will need to break even and eventually make a profit
- Marketing strategy and tactics
This piece from Lawyerist offers some great tips for how to write a small law firm business plan. Having a plan on paper will help you identify any gaps as well as opportunities for your new firm.
From the very beginning, develop a strong online presence and work to build relationships both online and in-person. Share your knowledge and forge connections to start building a reputation as a trusted resource in your practice area.
Build culture into your plan
The hiring and retention challenges faced by big law firms right now highlight an ongoing issue in the legal field. If you plan to grow and eventually hire staff and associate attorneys, a strong firm culture will work in your favor.
Set up your practice with an eye toward work-life balance. Prioritize people and relationships over billable hours. Focus on excellent client service, but not at the expense of morale. If you create a firm culture that supports your personal balance, it will grow to support your future employees as well.
When you set boundaries and expectations early with clients, you will create a seamless flow of communication. Clients will know what to expect and you will protect your personal time. Work only during set work hours, except in truly exceptional emergency situations. Also remember to build in time to work on firm operations and marketing.
Space considerations
The past year blew up the idea of the traditional office. In truth, that shift had been happening long before Covid, but the pandemic accelerated the change.
In 2021, remote work has become the norm, which creates an opportunity for you to build a mobile and nimble firm. That said, a professional office space also gives you a clear separation between work and personal time. It allows you to focus. Most importantly, it allows you to meet other professionals and build a deeper network.
So, while a traditional lease and a large law office don’t necessarily make sense for modern law firms, the option of using a dedicated office can support your success. Enter the shared office or coworking for lawyers. Using these spaces allows you to create a hybrid schedule of remote work and focused office time.
Consulting group BCG has conducted studies throughout the pandemic that show the benefits of a hybrid work model that combines remote work with “smart offices”:
“Investing in smart workspaces, digital information systems, and cybersecurity tools can provide net cost savings while giving employers and employees greater flexibility in where and how they do their work.”
As you launch your new law firm, invest strategically in technology that will support security, excellent client service and communication, remote work and efficient processes. Also consider how you can set up a hybrid work model that includes flexible in-person work space.
To learn more about how LawBank supports a hybrid work model for lawyers, contact us or schedule a tour. We offer four locations in Denver and Las Vegas, and we also work with large law firms that have extra space to sublease.
