Starting your own Law Firm by Poorvi 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 business skills? 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!!!!! More on this later.

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Making a Business Plan

Practice Development Planning

This is important it will record the results of the past exercises and enable you to establish a logical plan on how you will handle immediate issues, mid-term targets, and final goal.

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.
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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
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Creating Visibility
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 youd 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
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Creating Visibility
Take a lead in organizations; Organize events; Offer to create an appropriate take-away for those coming to an event; 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 it possible? 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.
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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 firms 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 discuss their 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 to the 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 dont 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 meetings and other means. Ask clients how the firm could improve. What other services would they like? DONT become complacent!!! Show that you have a cost sensitive and cost effective approach.

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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Working Towards Profitability

Profitability is driven by clients and scope and nature of work. Determining appropriate fees. Billing and collecting fees. Keep client and office funds separate. Make it easy for clients to pay you. Keep costs low.

Optimum utilization of available man hours.

Keep on enhancing your habits and skills.
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