7 Things That Might Surprise You About Having Your Own Law Firm

Ed. note: This post is sponsored by NexFirm.

So you’ve decided to make the jump. Persuaded by the 10 reasons to leave Biglaw, and aware of the 10 common mistakes made by lawyers who launch their own firms, you have decided to hang your shingle.

What can you expect in your first few years running your own law firm? Here are 10 things that might surprise you….

This post is based upon the reflections of our “From Biglaw To Boutique” columnist, Tom Wallerstein, who ran his own shop from 2009 to 2013. Here are some surprises that Wallerstein encountered during the first few years of his firm:

1. Direct client contacts did not become important until the firm was 9-12 months old.

Instead, in the early days, referrals made up the bulk of the work. One should not underestimate the importance of referrals as a source of business.

2. Establishing administrative processes took quite some time.

For Wallerstein, getting these processes down took six to nine months. If you’re looking to reduce this time and make the startup process as smooth as possible, talk to the folks at NexFirm.

3. Generating business wasn’t as hard as expected.

What’s a good approach to business development? Believe in what you’re selling, and be responsive and honest when dealing with clients.

4. Financial success arrived sooner than expected.

And not just because of business generation coming in ahead of projections, but due to low overhead. This is part of what’s driving the trend of partners leaving large law firms to open boutiques. Because of the lower overhead — small firms aren’t paying for luxurious offices, world-class art collections, or armies of support staff — lawyers at their own boutiques can often charge clients less and take home more money for themselves.

5. Growing the firm’s staff was harder than expected.

As noted by Wallerstein, “in a small firm, the stakes for adding each employee are proportionately higher. A four-attorney firm considering adding a fifth faces a weightier decision than does a 600-attorney firm considering a single lateral hire.” This is why, as noted by NexFirm, you need to “carefully define the profile — and compensation — for your perfect staff addition.”

6. Running a law firm can be fun!

If you’ve ever thought, when counseling a client, “I could run this business better than they can,” then maybe starting your own firm is the way to go. Per Wallerstein: “I knew I loved being a lawyer but I thought that running a business was just a necessary evil. Instead, I’ve found it engaging to try to make and execute decisions aimed at creating an enjoyable, profitable enterprise that can be proud of its service. I didn’t expect to enjoy the business aspect so much.”

7. You will survive.

Well, not necessarily; there are no guarantees in life. Starting your own business comes with risk, including the risk of failure.

But it also comes with the possibility of success. Of the dozens of firms that NexFirm has helped launch, all are still in business. If you’re thinking of launching your own firm, reach out to NexFirm and hear what they have to say.

Earlier: 10 Reasons To Leave Biglaw
10 Things You Are Screwing Up While You Are Worrying About The Little Things
Reflections on Building a Boutique Firm: Looking Back Four Years Later

<img class=”alignleft wp-image-276181″ title=”nexfirm” src=”https://abovethelaw.com/wp-content/uploads/2013/10/nexfirm.jpg” alt=”” width=”205″ height=”97″ />Get ready. To leave BigLaw. To re-brand your practice. To re-invent your career. To re-define your future. Call NexFirm today to speak with our team of specialists and to create a customized business plan for your new firm. Email us at careerdevelopment@nexfirm.com to discover your options and to learn whether now is the right time to begin working for yourself. Call us at 212-292-1000 to schedule your individual consultation.