Starting a Law Firm | Does the Economy Matter?

The short answer is no, you should not worry about the economy when starting a law firm. The practice of law seems to be a funny thing in that even in hard times legal advice is needed. That is not to say, however, that when the economy is tanking, as it is right now, that you can just announce you are open for business and begin counting money. Here are the a top five things to you can do to help your law firm survive an economic downturn from How to Start a Law Firm.

1. Make Sure the Law Firm Business Plan is Well Thought Out and Very Thorough.

Know how they say time is money? That saying holds even more truth in down economic times, where a missed opportunity may mean no opportunity for your firm. How can you be sure to maximize every opportunity you are presented? Make sure your law firm business plan is complete. You will have defined your goals and will be able to immediately recognize an opportunity or a potential client, that could determine the success or failure of your young firm.

2. Market Market Market Your New Law Firm.

Although you may think because there are less people out there requiring your services so you should focus on the clients you have, the truth is this is the most important time to market to potential legal clients and keep the business coming in. When you have poured over the case you have for the 10th time you are going to need something else to do. Finding potential clients when the pool is shallow is critical to your law firm's success.

3. Don't Forget About Past and Present Law Firm Clients Though.

Law firm marketing doesn't just mean finding new clients. It also means looking at your past clients. If they have utilized your law firm's services before, there is a chance they may need some help again. Give them a call, let them know your new law firm is still doing well in these hard economic times and ask how they are doing. You'd be surprised how many times a former client has work they just have not had time to ask you to complete.

For example, I'm a Seattle DUI defense attorney. In my practice I'd expect there will be times when former clients need to come back to me for help. I'm going to make sure they remember what a good job I did for them.

4. Limit Unnecessary Law Firm Expenses.

This one is pretty self explanatory. Do not splurge on things you do not need. The belt needs to tighten in hard economic times. Maybe this means an alternative office arrangement when you start a law firm. Hopefully you have set up the budget in your law firm business plan so nothing unnecessary is splurged on. Whatever it is, try to hold back unless it is immediately necessary.

5. Continue to Provide Excellent Service.

One of the great things about economic downturns is when an upturn begins. Don't shoot yourself in the foot during the downturn by providing less than stellar service. When staring a new law firm or continuing the success of an established law firm, your law firm reputation is everything.

Just because you may end up losing money on a specific case (assuming it was your error and not a lack of payment by the client) doesn't mean you should diminish your level of service. At some point the economy will turn and people will have money to do things like sue people and they will remember the help that you gave them when times were tough. If you do a good job of stating your value proposition to the client and agreeing to a fee that accounts for your services, you shouldn't be faced with this problem too often.

In the end, there is no better time to start a law firm than now. There will always be things standing in your way. If you wait until everything is perfect, you will never open your law firm doors. So just get out there and do it!

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