Starting Your Own Law Firm

7/28/2019 Starting Your Own Law Firm

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© LawQuest 2011. All Rights areReserved

Starting your own Law Firm

byPoorvi Chothani, Esq

LawQuest



© LawQuest 2011. All Rights are Reserved

Pre Decision Issues• Making the decision to start a Law Firm

• Determining what it takes – start up issues

• Analyzing the risks

• Identifying available financial resources

• Identifying potential clients

• Identifying sources of reliable retainerships

• Making a “Business Plan” – practice

development plan.




Should I start my own law firm?

• Lack of good job opportunities

• Good book of clients

• Entrepreneurial instincts

• Circumstantial compulsions

• Potential collaborations

• Is running a law firm a business or does it require businessskills?

• Many more




Pre-Decision Considerations

• Carefully analyze

– Other options

– Opportunities

– Hurdles

– Financial capabilities

– Professional capabilities

– Area (s) of practice

– Practical issues

– Access to resources




Determining what it takes –

Start up Issues

Three main issues: Skills and experience

– Low cost vs. quality

Capital

Small but credible?

Clients

Secondary issues: Start small or big

Office, home office, or just home

Location of office

Support staff

Legal resources

Equipment Multiple roles

Multi-tasking




Analyzing and Mitigating Risks

• Lack of required knowledge

• Lack of required experience

• Access to resource

• Assess the implication of what you are giving

up – weigh against the potential of the new firm

and the risks of the new firm.




Identifying Available Financial Resources

• Capital and operations

– Start-up costs and continued investment holding

– Cash flow and target profits

• Source of Funds

• savings

• Bank loans

• Angel investor

• Partner with access to funds• Reliable, long term retainerships

• Factor in delays in receiving payments – prepare for 60 to 120 days

delay from date of invoice to receipt of payment.




Identifying Potential Clients

• This is a tough one!!!!!

More on this later.




Naming the firm.

Form of organization – Sole proprietorship, partnership or LLP?

Fee sharing options – eat what you kill, upfront allocation for costs,

withdrawals, end of year profit sharing.

Billing options – hourly, fixed/flat fee (value based) or capped fee.

Making a “Business Plan”

• This is important – it will record the results of the past exercises and enable you to establish alogical plan on how you will handle immediateissues, mid-term targets, and final goal.

Practice Development Planning



Setting Goals

• Area of practice• Financial requirements

• Work life balance

• Ability to attract work




Post Decision Issues

• Creating Visibility

• Creating Credibility

• Collaboration with other Professionals

• Hiring Staff

• Retaining Staff

• Equipment and Books

• Technology and Technical Skills

• Working towards Profitability



Creating Visibility


• Define ideal client

• Identify pools of ideal clients

• Target such groups

• Focus on activities that bring you close to the group

Continue…




Creating Visibility

• Work only comes from people who know you or know what you do – contacts and reputation matter!

• Means of creating in-person visibility.

• Building a brand

• Building goodwill

Continue…



Creating Visibility

• Announcement of new venture to potential clients

• Inform existing clients that you are moving on and you’d like to hear

from them

• Get involved in community, associations, organizations, or societies

• Personal messages to all your personal contacts

• Inform all your professional contacts


Continue…



Creating Visibility

• Take a lead in organizations;

• Organize events;

• Offer to create an appropriate take-away for those coming to anevent;

• Think creatively about which of your contacts should attend and

personalize both the invitation and their experience at the event; or




Creating Visibility

• An online presence despite the BCI – is itpossible?

• Website can contain: – The name of the firm

– Address, telephone numbers and e-mail ID

– Enrollment number, date of enrollment, name of original State Bar Council

– Additional State Bar Councils – Bar Association Memberships

– Professional and academic qualifications

– Areas of practice




Creating Credibility

• Join professional associations

• Articles

• Letters to Editors

• White papers

• Blog – commenting on case law, new issues, changes etc.

• Offer to do free work in your area of expertise – good quality work

will build faith in you.




Collaboration With Other Professionals

• Other lawyers

• Bar associations

• Society of Indian Law Firms

• Other legal associations

• Chartered accountants

• Company secretaries

• Consultants



More Tips

• Create loyalty by communicating frequently

• Form alliances with other solo practitioners

• Offer real, substantive value

• Offer solutions not legal services

• Offer something that other lawyers or law firms cannot or are not offering

• Persistence, hard work and consistency are key to success

• Focus on firm’s strengths and unique areas of practice




Some Novel Areas of Practice or Strategies

Examples of niche practices:

• LexMedia – media and entertainment

• Legal Spectrums – telecom law firm

• Induslaw – targeting mid-size companies

Potential Niches:

• Sports law

• Environment law

• Nuclear law





Hiring Staff

• Identify the skills and duties that complement your skills and duties.

• Part time or full time?

• Training and experience in a law firm environment.

• Volume and complexities of work

• Should be congenial and should fit in with the culture of your firm.

• Your firm is as good as its people.




Retaining Staff

• Create a culture where trainee lawyers and associates - can openly discusstheir career aspirations and get feedback on how they are doing.

• Open up the debate and lower the barriers between partners and staff.

• Offer learning opportunities.

• Offer mentorship or you be the mentor.

• Ownership of work.

• Direct involvement with clients.

• Bonuses: use them to recognize an individual's impact and contribution tothe firm instead of giving a standard bonus to all employees.

Continued…




Retaining Staff

• Importance of delegation and a hands-off approach -don’t micro-manage.

Consider partnership track.

• Teach rainmaking.

• Teach networking skills.

• Offer networking opportunities.

• Offer incentives to introduce clients.



Retaining Clients

Client satisfaction is paramount.

• Define scope of services.

• Document the agreed terms.

• Update clients regularly.• Manage client expectations.

• Determine levels of satisfaction through personal meetingsand other means.

• Ask clients how the firm could improve.

• What other services would they like?

• DON’T become complacent!!!

• Show that you have a cost sensitive and cost effectiveapproach.




Books and Publications

• Manupatra

• Reporters

• Books

• Bare Acts

• Legal journals

• Legal magazines




Technology and Technical Skills

• Computers, iPads, Blackberries, iPhones, etc.

• Software

• Billing and case management systems

• Telephone, printer, fax, scanner

• Protect data from unauthorized use

• Have back up plans in case of loss of data

• Being solo and being connected and available to clients.

• Cloud computing – advantages and risks.






LawQuest’s Areas of Practice

• Foreign Direct Investment

• Foreign Indirect Investment

• Company and Commercial

• Transactions

• Real Estate

• Private Clients

•

Intellectual Property

• Employment Law

• Global Business Migration

Website

www.lawquestinternational.com

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Starting Your Own Law Firm