Having your own law firm comes with a series of perks: you have more control over internal processes, you get to choose your clients, and you have the satisfaction that you are working for yourself. However, not everyone has an entrepreneurial spirit and, before you can enjoy all these benefits, you need to do quite a bit of planning. Starting a law firm can be tricky and, although Nebraska is one of the friendlier states for new business owners, the process can still be riddled with challenges.
If you’re still considering whether or not starting a law firm is the right career move for you, here are some factors you should take into account:
What will be your focus practice area?
Nebraska has its fair share of big law firms that offer pretty much every legal service under the sun. However, if you’re just starting out, that may not be possible. More often than not, you have to settle on one practice area, and that’s a big decision to make because it will determine how much you earn. For example, the biggest lawyer salaries are in IP law, where you can earn up to $155,000, followed by healthcare and real estate. Immigration lawyers make the least, around $62,000, while family lawyers make $71,000. Of course, your experience and personal preference matter, and you shouldn’t practice in an area of law you aren’t passionate about, but, at the same time, it’s important to know how much you can realistically make.
How will you allocate funds?
When you work for another company, things such as HR, accounting, and rent aren’t your responsibility. However, when you are the one in charge, you will discover that creating a three-month budget isn’t an easy task. You may need things such as a video transcription service to convert your depositions and hearings, and you will need to create a marketing department. You’ll also need legal software and many other expenses that you may not have planned. What many startups do is rent modern offices in downtown buildings to impress clients, but then they discover that this isn’t sustainable, and they should have paid more attention to budgeting. Ideally, you should try to strike a balance and grow at a slow but steady pace.
You need to know business as much as you know law.
You don’t necessarily need to be the best lawyer to start a successful law firm. However, you do need to be a good manager. As the founder, you will need to create a balance between the two. At times, the company will need your legal expertise with a complicated case, but they will also need your negotiation skills to land a big client or your management skills to streamline processes. If you love both, then that’s a sign you should start your own business, but if you only like the legal aspects of your job, you will need to build a team to help you with the other processes or reconsider asking for a raise at your current job instead.