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Starting your own Law Firm
byPoorvi Chothani, Esq
LawQuest
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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.
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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
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Pre-Decision Considerations
• Carefully analyze
– Other options
– Opportunities
– Hurdles
– Financial capabilities
– Professional capabilities
– Area (s) of practice
– Practical issues
– Access to resources
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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
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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.
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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.
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Identifying Potential Clients
• This is a tough one!!!!!
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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
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Setting Goals
• Area of practice• Financial requirements
• Work life balance
• Ability to attract work
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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
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Creating Visibility
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• Define ideal client
• Identify pools of ideal clients
• Target such groups
• Focus on activities that bring you close to the group
Continue…
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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…
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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
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Continue…
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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
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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
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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.
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Collaboration With Other Professionals
• Other lawyers
• Bar associations
• Society of Indian Law Firms
• Other legal associations
• Chartered accountants
• Company secretaries
• Consultants
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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
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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
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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.
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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…
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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.
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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.
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Books and Publications
• Manupatra
• Reporters
• Books
• Bare Acts
• Legal journals
• Legal magazines
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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.
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