Starting a Law Firm Is Not For Everyone

There, I said it. Someone had to. Starting a law firm is not for everyone. And the going thought out there these days is "If I can't find a job I'll just start a law firm and everything will be fine." No, it won't. It can and it just may get worse. Much worse.

I was at a happy hour this week sponsored by my state bar association. It was geared specifically toward young lawyers. Now, usually I really like going to these things. I'm not from Washington State, have only been here for a year and a half, and like to take the opportunity to meet as many new people as I can. But this wasn't that kind of happy hour.

Turns out at least half of the people there didn't have jobs and had come to this thing to "network" which to them means to either find a job or to complain about not having a job. I'm find with people doing that, I'm just not that into it. It's not productive, and it's a time when you see people at their worst (there is no one I want to hire less than someone groveling for a job, know what I mean? Have some confidence, like your skills are actually worth something!).

And then I met this one guy, whose name I won't mention. He introduced himself and asked me if I was looking for a job too. "No," I said, "I own my own firm."

"Me too," he said, "though I'm kind of looking at other options."

And he lost me at "looking at other options." That is what I mean by starting a law firm is not for everyone. If you aren't ready to jump in and go for it, it will never be successful (here's one of my first posts on why I started a law firm). There is just too much time to invest, too many things you have to do for the first time that take big, huge, brass balls (in the figurative sense) that you just won't do if you aren't fully committed.

"I have something set up on Monday," he told me. "That might work into something."

You, my friend, will probably never own a successful law firm. You just don't have the stomach for it. And that's okay, not everyone does...

On a lighter note, all of you out there starting a firm have anything you want to know specifically? Leave a comment and I'll give you my two cents. You can even tell me what you thought of this post (and, it's okay to disagree, I'll still like you!).

Starting a Law Firm | Marketing Tactics

I got a phone call from a potential client yesterday. She was calling because she thought the lawyer she had right now sucked. She told me that they'd been to court a bunch of times and that each time the lawyer was unprepared. She told me that she couldn't get in touch with him and that he never seemed like he knew what he was doing.

First, of all, I wasn't surprised, necessarily. Those types of attorneys exist out there. And if you are shopping for a lawyer it's important to figure out who that person is and stay away from them.

But then I continued talking to her, and I learned a little more about her situation. "I hired this guy because I got something in the mail from him shortly after I got my DUI. I wasn't sure how I was going to pay for the help, so I went with the cheapest guy I could find." And there you go.

This story, for me, provides two lessons for all of you out there thinking of starting a law firm. The first has to do with marketing. The second has to do with pricing your services.

Starting a Law Firm and Marketing Your Services

First, the marketing. And, to be honest with you, I just had a revelation about this. When I heard that from this person yesterday that she'd received a mailer from someone for help, I was a little bit pissed off. For whatever reason (and I'm honestly not quite sure what the reason is) I feel like sending something out like that is a little bit underhanded.

And here's where the marketing lesson comes in.

Sending out letters is not underhanded. Even to people who are in desperate circumstances and easily impressionable. You know why it's not underhanded? Because it's perfectly legal. These guys, so far as I know, are acting within all of the rules we agree to in becoming attorneys. And they are marketing their services using the tools that are afforded to them.

The only question is, and should be (once you make sure it's legal), does it work?

I know the law is a "learned profession" and "bigger than business." But that is only one side of the coin. Once I have clients I do everything I can for their case. I fight for them. But if they can't find me, I can't help them, and this is a competitive business.

To make sense of what is probably a jumbled mess above, here's the bottom line - don't forgo trying to do something, whatever it is, just because someone else thinks things shouldn't be done that way.

Starting a Law Firm and Pricing Your Services

We all like to have clients. It makes us feel good. And it allows us to eat. But if you are not careful, you can get sucked into a race to the bottom that has no end.

For most people, whatever fee you quote them is going to be too much. Most people don't just have thousands of dollars sitting around, and finding it is a painful endeavor. They wonder why it's so expensive. It's your job to let them know why. It is not your job to let them convince you you should be the cheapest lawyer before they hire you.

And here's why.

Forgetting about any bills you have and obligations you have (family, etc.), because the client doesn't care about that, it's important to have a firm grasp on what your services mean to your client. For example, I'm a DUI and criminal defense lawyer. My services mean to my client that they get every chance to stay out of jail to and to avoid a criminal record. That's a pretty important service. And it's something that will follow them forever.

The key is figuring out exactly what you do and then helping the client put their price tag on that service. Get them thinking "what is it worth to me to get x result?" We know we can't guarantee them that result, but we can show them that we'll do whatever we can to get that result.

That's how you price your services. If someone wants to hire the cheapest lawyer they can find, they simply aren't the right client for you. The sooner you accept that, the sooner your sleep easy at night.

I want to apologize for those of you that have made it this far in this post. I hope some of that made sense and is related to your quest in starting a law firm. Writing it felt disjointed (these are important and difficult concepts).

Why don't we talk about what you think? What kind of marketing works for you? What strategies do you use to show clients how valuable your services are?

Starting a Law Firm | One Year Anniversary

If you look in the archives, you will quickly see that this isn't the one year anniversary of this blog. It's actually the one year anniversary of me starting a law firm. On June 1 last year my doors officially opened for business. And I must say, it's been a wild ride, both legally and from a business standpoint.

I meant to write this post on the first of June, but was sidetracked by some work. Another important date is right around June 1 for me, my birthday. And this one just happened to be my 30th, so it was extra special. After partying all weekend with my wife and parents, I had some catching up to do. So, sorry (to me when I look back on this and this post isn't on the first), but I know you'll forgive me.

Because this is such a special post, I thought I'd give you two great pieces of information if you are thinking of starting a law firm. First, I'm going to give you ten things I wish I'd known before starting my law firm. Second, and this might be the most helpful information I've ever provided here, I'm going to give you a month by month breakdown of what I earned.

These are only going to be gross numbers because it would take me too long to figure my expenses month by month, but I will tell you at least half of every month, no matter how much I made, went toward expenses of some sort. I think it's extremely important to put as much money back into your business as you take out, particularly in the beginning. So that's what I did.

Ten Things I Wish I'd Known Before Starting a Law Firm

1. You Must Have a Plan To Get Clients

I've said this before, but if you don't have clients, you don't eat. All of your plans to get clients might not work, but if you expect the phone to start magically ringing you are going to be sorely disappointed.

2. Your Marketing Plan Shouldn't Include "Networking" Events

This might only apply to me, because I can see how some networking events could be beneficial to other practice areas, but what I usually see at networking events is a bunch of people that don't have any work or clients looking for work and clients.

Don't get me wrong, I still go to these things, but when I do it I try to meet people that I can send work too. That is how referral relationships are formed. You have to give before you get. And if someone gives to you, no matter what it is, find a way to give back. Just trust me on this one.

3. Don't Let Your Perceived Weaknesses Manifest Themselves

I need to explain this one. Ever hear of a self-fulfilling prophesy? It's like when you think something (usually bad) is going to happen and then magically it does. And psychologists have found that in some subconscious way people tend to make these things happen by seeing only the things that promote that final outcome.

For example, I have a young face. When I first started meeting clients and seeing people, I was always worried they wouldn't want to hire me because I looked young. And guess what? People didn't hire me, and a lot of the times it was because of a perceived inexperience. But, in the end, it wasn't really about my looks at all. My worries about it manifested themselves in my giving the sense to people that I wasn't comfortable with what I was saying. Don't do that.

4. When You Get Scared, Work Harder

I'm not going to lie, every once in a while a little doubt creeps in my mind. What if no one calls? What if I can't pay my rent? What if I lose a motion?

Some people, when this happens, let the anxiety paralyze them. The successful people in life use this as a motivation to work that much harder to make those feelings go away. Don't let that fear of failure own you. 99% of your fears are in your mind.

5. But Don't Bury Your Head in the Sand

Some ideas you have, particularly for marketing, just aren't going to work. Think adsense for lawyers and really most paid online advertising for attorneys. Now, I'm not saying you shouldn't try these for yourself. On the contrary, I think you owe it to yourself to try them - what if they work?

With that being said, though, after about 3 months or so you are going to know if you are getting your money's worth (and this doesn't mean making you rich, it means at least paying for the service and getting to put something in your pocket). If it doesn't, get out and try something else.

6. If You Want to Be Successful, You Are Going to Be Uncomfortable

Almost all of the things you do during the first year of owning your law firm you will be doing for the first time. It's going to feel strange, and not good strange. But you have to press on and do it. Here's a short list of some of the things I did:

Opened a stand in a farmer's market offering free legal advice;

Gave presentations to fraternities on how to survive a police encounter;

Went to several attorney events not knowing a single person in the room;

Gave a presentation on blogging as a form of marketing; and

Just generally threw myself out there at every opportunity.

7. You Can Be Fancy When You're Rich

Where a lot of people get in trouble out of the gates is spending too much money on things they don't really need. When you start your law firm think lean and mean. After a year I still don't have any administrative help. It sucks sometimes, but it saves me a lot of money.

While you've got a lot of extra time, spend it. When you've got a lot of extra money, spend it.

8. Keep Control of Your Calendar

I'll be honest with you. This year, on two occasions, I missed court dates. They just didn't get calendered. Thankfully nothing bad happened because of that. I was able to show up late and take care of what I needed to take care of, but it's not a good feeling. Put in place a system so that you can rest easy at night knowing you know everything you need to do for at least the next two weeks.

9. Read Less, Do More

I don't know about you, but I love the idea of being a business owner. That means I love thinking about ways to improve and grow my business, and I love hearing from other people what it takes to have a successful business. But at some point you have to stop reading the blogs and books (except for this one!) and put foot to pavement, as they say.

It's so easy today, with the internet and all the other stuff going on, to get sidetracked. It's okay every once in a while. Do it every day and you're going to be broke.

10. This Isn't For Everyone

I think it's just my mindset, but starting this law firm hasn't been hard for me. Sure, the work has been hard. The commitment has been hard. And the tight money has been hard. But I haven't for once thought I should have done something else or I made the wrong decision. I never thought that anyone couldn't do this.

But not everyone can do this. Some people just don't like the risk. And that's okay. But, if you are thinking about starting your own law firm just because you can't find a job and you think that's the only thing left, make sure you aren't just wasting your own time. It's not hard to start a successful law firm, but it's not easy either. You have to want it.

Let me put it to you this way. You ever meet a professional athlete? I'm sure you've seen one on television. When they are playing their sport they look amazing. They do things you could never dream of doing. And the reason they are as good as they are is because they have worked as hard as they can at that for their entire lives. They've sacrificed time away from doing fun things to go to that tournament, missed prom, and put in countless hours of time perfecting their craft. This firm is your craft. If you want it to be good you've got to put in the work. You've got to be passionate about it.

Okay, done with the top ten, now what you've all probably been waiting for (and why most of you probably just scrolled to the bottom of the page), my first year law firm gross revenues:

June, 2009: $0.00

July, 2009: $200.00

August, 2009: $2,661.67

September, 2009: $4,032.21

October, 2009: $4,321.47

November, 2009: $6,013.20

December, 2009: $4,914.29

January, 2010: $6,810.00

February, 2010: $6,479.39

March, 2010: $8,015.79

April, 2010: $5,560.20

May, 2010: $9.148.79

I think these numbers provide a telling story. First, have a little bit in the tank when you first start out, because it's probably going to be slow. Second, you can start making at least some money fairly quickly. Third, your income is probably going to fluctuate pretty wildly for a pretty long time (this is why you keep expenses low). And fourth, it is possible to do this.

So, here's to a great first year. See you next week.