Whether you just passed the bar and want to strike out on your own or you’re planning to leave behind your old firm, it can be intimidating to start up a law firm on your own. Just because you understand the legal side of starting your own practice, it doesn’t necessarily mean that you’re confident with the business side of matters. What should an attorney consider when starting up a firm?
Three Important Things a Lawyer Needs to Consider Before Starting a New Firm.
First of all, every business needs a website nowadays – every business. So the first thing you should do after you pick a name for your firm should be to acquire a URL. It should go on your business cards and be prominent in any TV, newspaper, magazine, or radio ads that you run. Be sure that the webpage has a ‘Contact Us’ feature that gives your phone number, email address, and a form to fill out directly. A blog is also a good idea as you can use keywords to attract new clients from web searches.
Another important factor is to select the right office space. You need enough room to operate. You will need a waiting room, a place for a receptionist, room for files, and an office where you can both speak to clients and comfortably spend long working hours. At the same time, you want to keep your overhead low, so don’t bite off more than you can chew space or cost wise. Don’t forget to factor in things like a cleaning service.
This is a no-brainer for lawyers, but obviously you have to protect yourself from lawsuits and so insurance is a must. Whether you refer to it as Legal malpractice insurance, professional liability insurance or E&O insurance, you know what we are talking about. Be sure to shop around and don’t just take the least expensive insurance you can find. Not all legal malpractice policies are created equal. You don’t want to get stuck finding out later on that your professional liability insurance doesn’t cover grievance matters. Also, be sure to check the fine print to see the effect that defense costs have when it comes to malpractice actions. Have a frank conversation with your insurance agent to be sure that you understand fully what you are getting. If you are not sure where to start, this is one area where many colleagues and even competitors will be happy to share what has worked for them.
Obviously, there is a lot to consider when starting your own firm and we have only begun to scratch the surface here. Developing a business plan, acquiring capital, opening a bank account, coming up with a marketing strategy, having business cards made, hiring staff, and more is needed to get the business going right. A website, the right office, and professional liability insurance are just three of the many things that will help you to get off on the right foot.
Written by: Paragon Underwriters, Inc.