Law firms are notorious for having poor promotion and retention rates for women. After working for years in a law firm with little career progression, some women may decide to leave and start a practice of their own. We outline how to start a law firm, as a guide expressly to result in a woman owned business in law.
For female lawyers pondering whether to strike out on their own and how to start a law firm, there are many advantages to following through with it, such as:
- Greater freedom over the workload
- Full control over decision making
- Clients can be chosen rather than assigned
- The startup costs are relatively low
That being said, setting up a law firm can be difficult and involves lots of work. Women lawyers looking to start a law firm need to do some quality research before forming and implementing a well-thought-out plan.
How to start a law firm
The sections below detais some useful advice and tips to consider throughout the process.
Write a Solid Business Plan
The very first step in setting up a law firm is writing an in-depth business plan detailing a road map on how the firm will operate to make a profit. A main component of the plan should address client acquisition and how to take payments which you can get more insights about if you read the following guide. The contents of a business plan that a lawyer should take note of and complete are:
- Executive summary which should detail the mission statement, long and short term goals and objectives, and a vision for the future
- Market analysis; identification of competitors, emerging technologies, applicable laws and regulations, current demand, and average prices
- Financing; details of how revenue will be generated, start-up costs, and required investment
- Marketing plan; focus on how to retain and gain clients through good customer service and advertising
Preparing a business plan in advance will help the law firm to be organized and professional, providing it with strong foundations on which to grow.
Calculate the Finances Carefully
A huge part of a business plan for any law firm is the financial plan which should project cash flow and profit or loss, typically over three years.
To calculate this all of the expenses such as rent, payroll, and utility bills should be estimated. This information along with market insights can be used to calculate pricing and how many fees need to be collected each month to first break even. Sales targets can then be set to achieve desired profit margins.
Create a Website
Nowadays, most people find and research businesses online which is why a law firm must have a professional website for their law firm marketing. It should be user-friendly and include all the information potential clients need to know about a law firm.
When creating a website special attention should be paid to the design as the branding, colors, fonts, and images need to convey a feeling of reliability and professionalism. Furthermore, a law firm website needs to be optimized so that it ranks well in search engines such as Google. Experts offering digital marketing for law firms could be of help here.
Specialize
A common mistake made by lawyers is taking on many different types of cases. Although the best tactic is to choose one or two areas of law to specialize in. By choosing a niche, lawyers can avoid competing with every law firm around and only a small set of lawyers will be competitors so it is easy to build a referral network.
Choose a Location Wisely
Selecting a good permanent address for a law firm is essential. Ideally, a law office should be located in or close to population centers in a place that is visible and easy to find to ensure a steady flow of clients.
Get Management Software
To maintain and improve efficiency and productivity, many law firms use legal practice management software to help them with several tasks such as:
- Managing cases by organizing all the relevant information in one easily accessible platform
- Legal document management; the storing, editing, and organizing of paperwork
- Billing; invoice creation and delivery, and payment tracking
- Contact management; existing and potential clients can be tracked and interacted with individually to improve customer service
- Scheduling meetings
- Task management
Buy Office Equipment
In order to run law practice management software effectively, the firm needs to have the right equipment. Every team member in a practice should have their own computer so they can access the software throughout the workday. Additionally, high-quality printers will also be required.
Focus on Building a Network
Since the majority of new clients will come from referrals, lawyers must build up a network of past clients and other lawyers in an area. Lawyers should keep in contact with them and stay on friendly terms to increase the chance of being regularly recommended.
Unfortunately, women can find it difficult to develop their careers in established law firms, so they decide to go it alone and start a practice themselves. This can be a difficult journey, although there are many useful tips to help women starting a law firm.
