How do I Feed My Family When I First Start My Law Firm?
A reader named Ben sent in a good question that is probably on the minds of many people who are thinking about starting their own law firm.
Ben said:
“I am an associate in a firm with a great client base. I have gained valuable experience during the past few years, but I would rather be the captain of the ship and I have no interest in partnering with my current employer.
Where will I get enough money to (1) start a firm; and (2) make sure my family still has a house and food?”
Many people ask this question and many more do not start their own law firm because they worry about money during the law firm start-up process.
There are a couple of things to keep in mind when you are thinking about starting a solo law practice.
First, realize that you don’t need an overwhelming amount of capital to start up a law practice. There are no set rules for infrastructure. You simply need a computer and a quiet place to work. In the beginning, you can travel to your client’s location to meet him/her so an office is not a necessity. You can use the local library or a university law library or some of the on-line sites (if you can afford the subscription fees) for research purposes. So in reality, you don’t necessarily need a lot of start-up capital.
I always recommend that attorneys who are going out on their own have at least three to six months of living expenses saved before hanging their shingle. If your spouse works, you can probably get by with less money in the bank. Having a small amount of money stashed away will give you some piece of mind as you strike out looking for your first few clients.
When it comes to clients, if you can legally, morally and ethically move some of your existing relationships to your new solo law practice, you will be off to a fast (and more comfortable) start. This is a sensitive subject and it must be handled carefully. You should thoroughly examine the situation before you approach your client about this possibility. But if they do go with you, right from the start you will have some comfort that your business will have some solid initial cash flow.
Next, you need to embrace the fact that you are in a marketing business first and foremost. Your firm exists to help people solve their legal problems but you can’t do that if they don’t know you are there.
Here are a few cost-effective tips to get you off to a fast start from a marketing perspective:
Focus on a specific niche and develop a compelling value proposition to present to prospective clients.
It is difficult for a solo attorney or a small law firm to compete with the large multinational law firms (or even a medium size local law firm) as a generalist. It is important, especially when you first go out on your own, to pick a segment of the law and “own” it—from a marketing perspective. This will help you differentiate yourself from other firms in the marketplace.You can certainly handle all transactional issues and you can work on matters in other areas— but most of your marketing should be focused on the area of the law where your expertise lies.
Call everybody you know and tell them what value you bring to the market.
Most of us have deeper natural networks than we initially realize. Our friends, family and business associates know people who are good potential clients. Word of mouth is the best possible form of advertising. The minute you decide to go out on your own, get on the telephone and let people know about the value you are bringing to the market in your new role.
Follow your phone calls with an email. Many people will save your new business information with their electronic contacts so that they can search for it later. Providing them with an email that has your contact information will allow them to do this easily.
Make sure you follow up with these people by sending them something in writing. The trusty method of putting a pen to paper and sending a note or a letter in the mail still works well. A handwritten note with a business card can be particularly effective as this helps your friends and family make a physical connection with you in your new role.
Get a sponsor—or three.
Reach out to some of the people who are influential in your community and ask them to make some introductions for you. For example: You will need at least one business checking account. Go to several local banks and meet with the branch managers. Once you get a feeling for their skills in banking ask about their level of involvement in the local community. The ones who are most involved can be helpful to you in starting your law practice. Leverage your business relationship with your banker and even your relationship with your accountant, to help generate leads for your new business.
Practice the “arm’s length” rule.
This is the toughest guidance for most people to handle. Whenever you come within an arm’s length of someone, ask them what they do for a living. When they tell you, ask them for a business card. If they don’t have one, give them yours and ask them to email you their contact information (believe it or not, many people will). Showing interest in them and in what they do will allow you to add them to your mailing list. This will keep your name and contact information in front of them and they’ll call you when they need someone with your expertise.
Starting a new business is tough. A law firm is no exception. The most difficult aspect of any start-up is landing that first client. Follow the same formula you used when you learned to walk—simply put one foot in front of the other until you are farther down the road. Practice these few promotional tips over and over again and you’ll have a handful of clients in short order.
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