There are over 34,000 people who graduated from a United States law school in 2020. However, not all of those students or lawyers are cut out or even interested in starting their own legal practice.
The sheer fact in that business is hard. Many fail within their first few years after starting their own business. Are you considering opening your own law firm? Read on to find out what you need to ask yourself before you do so.
What Kind of Funding Will You Have?
One of the biggest factors when it comes to starting any kind of business is funding. It takes money to make money and you need to find out exactly how much it costs to go into business in the first place.
After you get an idea of how much you need, you need to find out how you plan to attain that kind of money. Most people don’t have that lump sum to invest on their own. You’ll likely need to get a loan, line of credit, or find investors.
Will This Be a Solo Practice?
When starting a business in the legal field, most lawyers plan to make it a solo practice. Sometimes, that may grow into a much larger firm. You need to be aware of what your goals are in terms of where this business may take you.
It’s a good idea to sit down and write out what your five and ten-year plan is. This is a fun exercise that can help motivate you and dig deeper into what your goals really are.
Who Is Your Competition?
Entering into business ownership can be a daunting task. 20% of businesses fail in their first two years. With that in mind, you need to fiercely examine who your competition is. Having a good idea of what the market in your area looks like will give you an idea of what you will be up against.
This is also a good tactic when it comes to law firm marketing. Knowing your competition gives you insight into how to position yourself.
Why Do You Want This?
One of the most important questions to ask yourself is “why?” Why do you want to start your own law firm? Is it because you believe you are the best lawyer for someone in need?
When you can identify your passion and the reasoning behind it, you can climb mountains to meet your goals. As long as you can stick to your “why”, you will be able to stay motivated when things get hard.
Starting Your Own Law Firm
After asking yourself these vital questions, you’ll be able to make a clearer decision about what to do. Starting your own law firm will be a difficult quest but as long as you believe in yourself, anything is possible.