How to Start a Law Firm Practice and Office (Updated 2021 Guide)

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How to start a Law firm practice? The practice of law is a profession, but it is also a business for many solo practitioners or small law firm owners. As such, starting a law firm, you need a business plan. Just like other commerce, your business plan is absolutely necessary. In here, you’ll see your budget plan, marketing plan, and financial projections that you need to think about in order to start your own private practice.

However, the prospect of starting your own law firm business can be intimidating. You may be an excellent attorney, but you need to decide which area of law you will practice on representing a case.

Here are your checklists on how to start a law firm practice for starting your own law firm business.

How to Start a Law Firm Practice and Office?

  1. Develop a Business Plan

    How to start a law firm practice, you need to focus on developing a business plan. Yes! You need a business plan just like all other businesses. It will serve you many purposes and will be your main basis for decisions in critical situations. It is a must-have as you start your law firm practice. 

    A detailed business plan for a law firm comes first with forming a detailed mission statement. In it, you must also plan for financial and marketing strategies. Additionally, it should also focus on knowing the competitive advantages of your firm. A clear goal and vision of what your law firm will look like in the future is a great kick start on building a law firm. 

    Make sure that your business plan is clear and aligned with your business goals. Create an executive summary of your plan detailing your business location, the focus of the practices, goals, and objectives. In your plan, you must identify your start-up budget as well as your monthly budget. Do your research to determine potential clients on the market. Take responsibility for the capital needed to operate your law firm for the first three months.

  2. Choose a practice area

    How to start a law firm?

    After you finish setting up your business plan, you can now identify the areas of law you want to practice. Selecting your practice area is the most important factor in a law firm’s long-term career success. Make sure that you know your area of expertise. Determine your strengths and weaknesses as a lawyer to choose the best practice that fits you.

    Nowadays, it is sporadic that lawyers provide generic practices. Choose the right practice and a clearly defined practice area. You can choose among different areas such as a family lawyer, injury law, bankruptcy, IP law, etc. This will be easy if you determine your practice area. It will help your law firm to build credibility faster.

  3. Name your firm

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    Naming your law firm is an important part of the growth of your business. You need to boost your presence in your community, so they need to know your current firm’s image. The name of your law firm will be recognized by your clients. If they want to look for you on the web, the search engine could easily bring your customer to your law firm’s website.

    Choosing the name of your firm can be in line with your expertise or your practice. Make sure that the name of your law firm is not misleading and is creative. However, it should be directly related to your services and practices.

    How to start a law firm | Misleading law firm names examples:

    Using the words “and Associates,” even though your firm doesn’t have associates. Similarly, using “Group” violates the rule if your practice covers a sole proprietor and no other lawyers.

  4. Form your own entity

    Form a business entity as you represent your professional image to your clients and the general public. A law firm entity must contain certainty of your practices and the structure of your business operations. It depends on how you intend to manage your law firm and will decide on the organizational structure of the business.

    For example, if you are running your firm alone, you can choose whether a professional corporation, sole practitioner, independent practitioner, or single-member LLC entity. Multi-member law firms can select a professional corporation, LLC, LLP, and partnership.

  5. Select your location

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    Choosing the best location is one of the most important aspects of starting your law firm business. There are a lot of factors you need to consider when choosing a location and that includes accessibility, proximity to client offices, and other facilities. The location of your firm also speaks volumes about the firm’s image and culture.
    The ideal location for your firm has a lot to do with your practice area. Determine the best place before settling for the one that fits your needs.
    Also, your office location affects your client satisfaction and does help with attracting and retaining clients. Of all the considerations on starting law practices, you have to consider the attractiveness of that location. 

  6. Get office supplies

    Having your office, of course, you need equipment, supplies, and even office furniture. You need computers, printers, files, furniture for reception areas, staff furniture, office furniture, etc.

    Having the right supplies for your office is essential as you are serving your clients.

  7. Build a network

    Getting the trust of potential clients is not be easy. However, there are other ways to attract new clients. By building a network and having a strong referral with another firm is the first step towards this. Cultivate your relationship with other attorneys in the area and look for opportunities for more referral work.

  8. Join a local organization

    Joining a local organization is one way to form a network. A lawyer association in your area will gather more opportunities that will benefit your firm. You can also meet experienced lawyers who can mentor you.

  9. How to start a law firm | Build a website

    Your potential client will find you through referral, but having a well-designed law firm website with the right content posted, will drastically increase your client’s confidence to choose your practices. Having a compelling website will attract more customers and is essential to increase your online presence and become a reputable law firm company.

    Lawyers these days could not survive without utilizing online advertising and marketing. Clients use Google to search for the right attorney to do the job for them so a law firm’s website plays an important role as customers will look at your firm’s credibility.

  10. Financial projections

    By definition, a projection is not reality. But it is important that you need to analyze your estimated revenue, monthly expenses, marketing expenses, advertising expenses, and other finances. You need to have a clear strategy for you to manage your financial projections. It is important to be conservative on your estimates and define your assumptions.

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How to start a law firm business? The answer is not easy. Every lawyer must fully understand what it takes to make the firm notable and reputable. Analyzing the things you need before starting a law firm is essential, as it will be useful along the process of building your business.

To become a lawyer, you need a bachelor’s degree, followed by a Juris Doctor degree, passed the bar exam and finally get the license. That’s a whole lot of effort to become a full-fledged lawyer. Now that you decided to start your own career, you need to work hard. Successful lawyers possess core traits and qualities. So, to start your business, you need to do an excellent job, strong problem-solving skills, analytical skills, and excellent persuasive skills.

While law firms’ competition is stiff, following the right steps to start your business is a must thing to do.

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