Success is possible

Launching a Tech-Startup Law Firm

Overview

Who we are

We’re Promise Legal, and we are fascinated by tech, inspired by entrepreneurs, and seeking a better way to practice law.

If you’re interested in working with us, visit our People page. If you’re looking for how to start your own practice, read on!

We believe there is plenty of work for everyone, and a rising tide raises all ships. We’re not looking for some competitive advantage or a way to box other people out of the market. That is counterproductive and short-sighted. We enjoy the business end of running a firm, more than most lawyers, and we offer opportunities for lawyers with entrepreneurial spirits and lawyers who want to be their own bosses but don’t necessarily want to deal with the business of law.

That being said, we’re happy to pass along lessons and wisdom to anyone who wants it, and we’re always happy to hear from others with insights into the industry!

You’ll need a network for referrals, expertise, ideas, and support services.

A strong network of lawyers who are experts in the areas of law where your target market is most likely to need assistance will not only provide value to your clients, but allow you to provide value to people adjacent to your target market.

You’ll also want to establish friendships with attorneys in your niche who are smarter than you. They’ll push you to be a stronger attorney and be a sounding board when addressing matters you’re unfamiliar with. Relying on the expertise of colleagues in the market will help you get over feelings of imposter syndrome and make you more cost-effective for your clients.

Not only will your network be a help to you when producing work product, but they have often seen issues in the business of running a law firm that you are seeing now, and can help guide you.

You’ll also need a plan. Create a comprehensive business plan outlining your goals, strategies, and financial projections to help you set boundaries around how you practice. Once the pieces start to fall in place, you’ll find that momentum builds towards starting a successful law firm that meets your clients’ needs.

If you have any experience in management or business, you’ll know that all plans face unknowns and pivots. Have a solid understanding of which inputs lead to which outputs, and try to track when changes happen. For example, organic social media engagement was, historically, responsible for about 50% of our incoming clients. As people started to move out of quarantine life, our social media leads started to drop, and our word-of-mouth referrals started to grow in kind. What does this mean to me? Well, the return on investment in social media strategies has diminished, and my time is better-spend developing word-of-mouth referrals. If you don’t know your numbers, you won’t have insights into growing a healthy practice.

Frequently Asked Questions

Should I start my own practice or join someone else's?

There is no definitive answer to this question as it depends on your goals, so I like to redirect people asking this question towards a discussion of goals.

How much of your day do you want to be focused on doing administrative work? How much of your day do you want to spend interacting with clients? How much time do you want to spend working each day and each week? How much money do you want to make?

Your way forward is best-stated as balancing your options against your various goals. Our approach with our attorneys is to provide self-determination, collective cost-reductions, and generous predetermined fee-splits. What this means is that work is made available to them, but there is no requirement that they take any given project. Additionally, they are incentivized for bringing in business for either themselves or other attorneys. We think that this flexibility provides the optimum benefits for our attorneys, while securing our clients' ability to get the best representation we can give them — the resources and reach of a larger firm without sacrificing self-determination for our team.

However, you might appreciate the goal of our firm without approving of how we run the business and brand. Perhaps you don't want part of the revenue you generate to go towards social media marketing. Perhaps you like the flexibility of truly full autonomy.

Alternatively, you might want a guarantee of income and prefer strategies that are ubiquitous, without minding long hours.

The above examples might illuminate why goals are a more relevant line of inquiry than a simple question of whether you should start a firm or join one, but if you'd still like some help deciding which path to take, then some factors to consider include: whether you have the requisite legal knowledge and experience, whether you have the business acumen to run a successful law firm, and whether there is a market for your services. Other important factors include your financial situation and your personal goals. Ultimately, starting a law firm is a personal decision that you should only make after carefully considering all relevant factors.

What's the best time to start a law firm?

There is no perfect timetable for launching your firm; a lot of times this sort of question is outside of your control. If you do have the luxury of an open timetable, then there are a few times that are better or worse for launching a firm.

First, consider the current state of the economy. If the economy is booming, it may be a good time to start a business law firm as there will likely be more economic demand for your services. However, economic downturns have been known to lead to a spike in legal activity and starting a firm in those circumstances might help jumpstart your client base.

Next, look at the current landscape of the legal industry. Getting your firm off the ground may be more difficult if many law firms already operate in your niche and geographic area. However, if the legal competition is relatively small, you may stand out as the first or top provider of your particular services.

Finally, consider the time of year. The winter holiday season tends to be very slow. The new year sees a bump in activity, but we've seen the strongest activity trend towards mid-to-late spring. Timing your launch around the most active time of year will help you get you started and survive leaner months.

What are some things you wish you knew when you started your firm?

First, know the value of your services because the market does. We have always experimented with our pricing models to try and bring legal services to more people. However, sometimes pricing can be a negative indicator of quality for people shopping without in-depth knowledge of the practice of law. It's like when you know nothing about wine — price is a primary factor in determining what purchase to make.

Second, you are expected to boast, sell, and disappoint. When you haven't run your own practice before, it's easy to lose sight of the fact that you, the individual, are not measured the same way as you, the businessperson. You'll need to let the market know about your successes, otherwise no one will know why they should hire you. You'll need to find the legal need for potential clients, and present their options to them. Clients are not experts in the law and, while they know there is some form of legal issue present, do not necessarily know what their legal needs really are. You need to be able to tell them and convince them why they need what you're telling them they need. In the same vein, your job is to make realistic assessments of the law and your clients' situations. That often means that you will be delivering bad news to your client, but that's part of the job, and softening the blow isn't always productive.

Become a business process expert

The legal tech landscape makes the business of law easy (well, easier than ever)

Organization

Technology has made it possible for law firms to be more organized and efficient in their work processes. Client management software lets firms keep track of deadlines, appointments, and client conversations.

Customer Service

Software like this helps to ensure that nothing falls through the cracks and that the client always feels like they are the top priority.

Document management software has transformed the way law firms function. Instead of physical copies of documents, software solutions can now store everything electronically. Electronically storing your files makes it easy to access documents from anywhere, share them with clients and colleagues, and track changes over time.

Communication tools such as email and instant messaging have allowed law firms to stay in touch with clients and colleagues no matter where they are. Readily available lines of communication are essential for coordinating work on cases and ensuring everyone is on the same page.

Overall, technology has made running a law firm much more manageable. Streamlining processes and improving communication have enabled firms to operate more efficiently and effectively. More efficient and effective law firms provide a better experience for clients, and it also helps to ensure that they receive the best possible representation.

Stay abreast of the top technologies for law firms and ensure that you’re competitive in your local market. You can check out alex.top for guidance on approaching your tech stack, and talk with other local practitioners about how they manage their office systems.

It used to be the case that processes were manually implemented, measured, and adjusted. Thanks to modern tech solutions, processes can be rolled out much more quickly.

Links to get you started with your firm's processes

What about doubts

Running a firm is not for everyone

You give something up as the boss

Starting a business is risky

There are many reasons why starting a business law firm may not be a good idea. First, the startup costs can be prohibitive. You will need to rent office space, purchase supplies and furniture, and hire support staff. You will also need to pay for advertising and marketing to get your name out there. All these costs can add up quickly, and if you’re not careful, you can easily find yourself in debt.

Another reason to think twice about starting a business law firm is the competition. There are already a lot of established firms out there, and it can be tough to break into the market. You’ll need to be able to differentiate yourself from the competition to succeed.

Finally, remember that being a business lawyer is a lot of work. You’ll need to put in long hours, and it can be a stressful job. If unprepared for the challenges, you may find yourself quickly burning out.

Overall, there are many things to consider before starting a business law firm. Make sure you carefully research and weigh the pros and cons before deciding.

Benefits of Not Being a Boss

You can focus on your caseload

An attorney only interested in doing the legal work and not running the business is a rare breed. These lawyers are often content to work in small firms or as part of a larger organization where they can focus solely on law practice. They may also enjoy working in the public sector, where they can use their legal skills to help those in need. These lawyers often have a passion for justice and feel that they can make a difference by using their skills to fight for the underdog.

You can gain experience first

An attorney wanting to gain experience before running their firm may first choose to work for a law firm or another organization. Working for another entity can allow the attorney to learn about the business and legal aspects of running a firm. The attorney can also learn about managing cases and clients. This experience can be invaluable when the attorney eventually decides to open their own firm.

You can learn how to run a law firm from someone else

If you’re looking for a business law firm led by an attorney who knows the ins and outs of the industry, you’ll want to check out the offerings from Promise Legal. This law firm is about helping businesses stay compliant with the ever-changing laws and regulations, and an attorney leads them with a wealth of experience in the field.

Alex Shahrestani has worked with businesses of all sizes, from small businesses just getting started to large corporations with complex legal needs. He understands the unique challenges that companies face, and he’s dedicated to helping them find solutions that work for them.