Opening a law firm, as a rule, turns out to be a promising and profitable business, if it is done by qualified lawyers. The need for legal services exists almost constantly; both individuals and corporate clients need such support.
The creation of a law firm is very attractive for start-up entrepreneurs, it is promising and does not require sky-high investments.
However, since there is quite a lot of competition in this line of business, before starting a business, it is necessary to conduct a marketing research and find out the level of competition, as well as whether there is a demand for legal services.
A law firm at the beginning of its activity usually has a small staff of 1-2 people. The list of services of such a company is quite limited, due to the physical impossibility of performing a large list of works. Often, such firms specialize in just a few services, for example, registration and re-registration of small businesses, legal advice, servicing legal entities on the principles of outsourcing. As a law firm develops, it usually recruits staff and expands the range of services.
Some law firms initially focus on individuals and show good results, providing one-time services to the public. It can be consulting, lawyer and notary services, preparation of various documents and contracts.
With a good reputation and connections, a law firm can successfully operate in the market of services for legal entities.
A small law firm located near a registration authority or other government agency can generate high revenues through a constant influx of clients. Contracts for permanent legal services for VIP clients are especially beneficial for a law firm. Such contracts are able to bring a stable, fairly high income, allowing you to focus on a narrow range of issues.
To choose the specialization of a law firm at the first stage of activity, you need to study the market well and choose a target group of clients for yourself.
The broadest target group is individuals who face legal problems in their daily lives. The range of such problems is so wide that additional specialization in civil law, family law or housing law is usually required in this segment. It is not uncommon for a law firm to survive by providing legal services to small firms that would normally not be able to keep their own lawyer on staff. In this case, the law firm works under outsourcing agreements and takes care of resolving current issues on the preparation and approval of agreements, representing the interests of the customer in the judiciary, and so on.
Opening a law firm is a fairly simple matter in terms of registration, if the list of services does not include services related to advocacy and notary activities. These activities require licenses.
The initial investment in setting up a law firm can be limited to a few hundred thousand dollars. To start a business, it is enough to rent a small office, equip it with computer and office equipment, and communication facilities.
The current costs of a law firm consist mainly of salaries, rent and purchase of supplies. The remaining costs can be shifted under contracts to customers of legal services.
The profitability of a law firm, due to the low level of costs and initial investments, is quite high. It is possible to recoup investments in the creation of a law firm literally in 2-3 months, if there is a sufficient volume of services. However, in order to attract customers, it will be necessary to spend some money on advertising, which affects the overall level of profitability and can be a significant part of the costs. As a rule, the founders of a law firm are lawyers themselves, so already at the first stage they have a certain client base. However, professional qualifications in the field of law often do not match well with business management skills.
Therefore, when creating a law firm, it is better to be guided from the very beginning by a reliable business plan , which you can order on your website and free yourself from the need for economic calculations and planning activities at the initial stage.