Most attorneys have thought about branching out and starting their own firm. Be it the freedom and autonomy of a solo practice or dreams of the fame and fortune that potentially come with founding a major firm, striking out on your own is an attractive option.
But with great reward comes commensurate risk. Launching a new firm costs money and likely requires several years of lower income in the hopes of much higher earnings down the line.
Here are some points to consider if you’ve been considering taking the plunge.
Your situation is unique
When researching law firm startup costs, avoid any article that authoritatively provides concrete numbers. It’s highly unlikely that the author’s situation matches your own personal story down to a T.
Every scenario is unique. Focus on discovering which expenses need to be accounted for and then investigate a price estimate for each line item separately.
Don’t be cheap–but don’t overspend
Don’t attempt to launch with only the barest of bones. If cash is that tight, you’re likely not ready for the rigors of getting your own show off the ground.
Find a pleasant balance between providing yourself the tools and resources you need to succeed without renting out a ten-office practice for you, a secretary and nine to-be-hired-later attorneys.
What’s the minimum?
Theoretically you can launch a solo practice with nothing more than an LLC, liability/malpractice insurance, QuickBooks, business cards and a website. Add in a computer, scanner/printer, an internet connection, basic office supplies and some sort of backup/cloud storage and you’re almost there.
A serious lawyer has an office
There’s nothing at all unprofessional about running your practice out of your home. If, that is, you’ve got a dedicated space for client consultations.
No matter what your niche, clients expect a certain ambiance when meeting their attorney. Don’t use low quality office furniture and décor. Your law office should feel like a law office.
Shared office space is a great alternative. It’s affordable and often comes with the added benefit of having a shared conference room.
Suggested add-ons
From hardware to marketing to membership fees in professional organizations, there are a broad array of upgrades to attract new clients, increase efficiency and grow your business. Here are a few non-essential expenditures all lawyers starting their own firm should consider:
- Timekeeping and billing software
- Dedicated phone line (VoIP solutions are very affordable)
- Legal research/law library
- Professional photo shoot for website
- Networking budget (coffee, lunch, happy hour, networking events)
- Advertising
Remember, it takes money to make money.
Don’t skimp on insurance either by choosing the absolute cheapest policy. The idea is to protect your livelihood not to “cover an expense.” If you’d like to know more about insurance, speak to John B Wright. The team specializes in working with attorneys.
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