5 Things to Consider When Starting Your Private Law Practice

Going solo and starting your own private law firm might be the most exciting decision you will make after passing the bar and getting your license to practice. Unfortunately, unless you graduated with a double degree in law and business administration, it might also be the most overwhelming and terrifying career move you'll take.

It won't be easy, but it will be worth it, especially if you are done being a cog in someone else's machine and are ready to call your own shots for once. Just be prepared to do the following things and you'll be just fine.

Learn Skills Nobody Taught You in Law School

You've probably spent the last decade of your life preparing for your career as a lawyer. Now, it's time to learn how to be a business owner in the 21st century. This means learning how to create a business plan, how to market your services, and even how to establish an online presence for your dream law firm.

Don't feel intimidated. You are, in fact, in a better position than other rookie business owners because you are already familiar with some of the most important aspects of running a business, like tax laws, obligations, contracts, and complying with corporation and labor codes, as well as ethical business practices.

It's all a matter of seeing the business side of lawyering. 

Choose Your Business Partners Carefully

If you've ever worked at a law firm, you know how important name partners and senior partners are. They can either make or break your business and reputation, so set your standards high when choosing who to share your dream business with.

At the very least, your business partners should be people whose law acumen, moral compass, and credibility are ones you can vouch for. These could be old law school buddies who have always displayed diligence, former colleagues whose work ethic have always impressed you, or even lawyers you've met on the other side of the courtroom.

If possible, go for partners who you know can bring substantial business into the firm. After all, the legal profession might be a noble endeavor, but any business should be profitable for the endeavor to be sustainable.

Answer for Everyone's Failures

Once you register your name as a founding partner of your own law firm, it will be impossible to separate your name from any failures or mistakes your associates might make. Besides, you already know how tricky the practice of law can be. 

Lawyers typically deal with negligence claims, but that doesn't mean they're immune to it. You must be prepared to face the wrath of clients when they lose a case or a claim -- because it will happen. More importantly, you have to be ready to step in at any time when the going gets too tough for some of your younger lawyers.

In many places, advertising for law services is severely restricted and regulated, so word of mouth is your best option to gain new clients. Protect your firm's reputation as if your life depended on it, because chances are -- it does.

Invest in Malpractice Insurance

Still, answering for everyone's mistakes does not always mean you have to pay for them out of your own pocket. What if you unintentionally gave bad advice to a client? That's all the reason for a client to sue you for malpractice. 

In addition to that, you also have to make sure your firm's information is safeguarded against cybersecurity threats as well. If any sensitive information were to get out about a case and your client, that's just another reason for a client to sue you.

As a lawyer, you're going to need protection against negligence claims and malpractice. Ultimately, you wish you didn't need this type of protection but you're only human and you make mistakes... The best-case scenario would be to be protected when you do make a mistake.

There are states that do not require all law firms to have insurance, like Massachusetts, for instance, but that doesn't mean you should skimp on such a small investment in exchange for peace of mind that your finances are always covered, regardless of the troubles your law firm might face in the future.

Understand The Numbers

Even if you have an in-house manager or an accountant keeping the firm's finances in check, you, as the owner, must have a strong familiarity with the numbers to know if there's anything you have to adjust from the original business plan you created for the firm.

Likewise, knowledge of the numbers will allow you to set other goals. For instance, you can set a higher cap for pro bono cases that your law firm will take on during months that business is good, and set a lower cap for periods when there are hardly any clients trickling in. 

Getting to pick your own clients, working the hours you want, and, of course, getting to keep and split profits according to your own preferences are just some of the things you can look forward to when starting your own private law practice. 

Few things in life are more rewarding than being your own boss, so power through the self-doubt and open your own law firm -- as soon as you're ready to do the things listed in this article, of course.

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