In this article, we discuss the pros and cons of deciding to walk away from a corporate law firm or in house role to start your own law firm. Read on to decide whether your risk appetite means that this is the next step for you!
Are you sick of timesheets and billing systems? Many lawyers reach a point in their careers where they no longer want to contribute to the profit and loss of a large firm, but rather, build something for themselves. They daydream about working from a laptop on a sunny beach or a quaint country town. You might be considering going out on your own or building a partnership with a trusted colleague. Either way, there is a lot to think about if you are considering founding your own law firm.
Let us start with the challenges:
1. Marketing
It can be a challenge to market a small unknown law firm, even if you have an existing book of clients you are expecting to continue to work with. You may need to upskill to understand online marketing and advertising until your brand becomes well known enough to attract clients. Marketing is an essential part of filling your client pipeline.
2. Administration
Running your own business sounds idyllic, but there is a lot of administration involved! Even with technology improvements to bookkeeping and invoicing, you might need to manage wages, superannuation, workers compensation, professional indemnity insurance all whilst keeping your expenses under control and your cashflow positive.
3. Recruitment
We can help with this! Maybe not in your first year, but eventually as your business grows you are going to need additional staff. As a legal industry specialist recruiter, we can help with this. You might need team members with a little more entrepreneurial spirit than other firms or lawyers prepared to roll up their sleeves when things get busy. We love nothing more than finding the perfect candidate for your boutique culture.
4. Working Hours
It is unlikely that you will work less hours whilst you are building up your firm. Although long hours can be slightly more appealing when you are billing clients on your own behalf and not someone else’s!
5. Start-up Costs
It can be expensive to start up a new firm with costs including, but not limited to, building a website, designing your branding, naming and protecting the name of your business and various legal and governance registrations. This is on top of any rent or office expense.
6. Resources
Technology resources can be expensive so you may not have the IT support or software that made your life easier in a big firm to start with. It can also be challenging to resource holidays and peaks in workflow when you are a small organisation. Consider the use of experienced temporary staff which we can help with.
With so many challenges to launching your own firm, you might wonder why anyone would ever take that career path. Perhaps it comes down to being a lifestyle decision, one based not necessarily on making your life any easier. The pros, however, can be persuasive.
Pros:
1. Flexibility
Have the freedom to set your own work schedule, work from wherever you want and around the other responsibilities in your life. Want to work 4 days a week? No problem, you are in charge!
2. Interesting work
Working for yourself will enable you to further specialise in an area of law that appeals and suits you. You will become known for your expertise and attract other clients with similar matters. You may be able to decline work that does not appeal or refer it onto other trusted colleagues.
3. Be the Boss
Being your own boss is a double-edged sword. You get to make all the decisions, but on the flip side…. you must make all the decisions! Having a good support system around you and mentors or colleagues that you can run difficult problems past can be helpful in this regard. Being your own boss is most appealing when you are no longer required to ask anyone for time off for an appointment!
4. Wealth Creation
Building a business can be lucrative, particularly if it becomes bigger than just yourself. You may have the opportunity to sell your book of clients down the track. In the meantime, you are billing clients directly towards your own wealth and not someone else’s.
When it comes to taking the leap from corporate life, it may come down to your appetite for risk. Many businesses in Australia fail within the first 5 years. Do you have an entrepreneurial spirit? Does running a business excite you? It could be rewarding in ways we have not even considered.
Whatever career move is next for you, we are here to help. Perhaps explore the opportunities in the market first as there may be an entrepreneurial firm looking for someone just like you. We can give you honest career advice based on our years of experience as specialist legal industry recruiters. We can help you understand what you are worth in the market and the different available opportunities based on your experience. Once you are armed with this knowledge, then you can make your next career decision based on full knowledge of what is possible and available.
If you are looking for a new role in the Legal Industry in Melbourne, Australia, then get in touch with us. Legal People is the gateway to your next career move. We are specialists in the Legal Industry and recruit Lawyers, Support staff and HR professionals. If you enjoyed reading this article, you can follow our Company Page on LinkedIn for regular updates. To browse our currently available roles click here.
