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Do you have $500?
Good. You’re the proud owner of a new law firm! (Seriously, congratulations.)
Thanks mostly to the spate of technology advances made possible by cloud services, it is cheaper to practice law than ever before, because lawyers can virtualize much of what they do. That means if you’re willing to bootstrap the living heck out of your law practice, you can get in for next to nothing, including marketing expenses.
I’m going to assume you have a computer or tablet already, as well as a smartphone (maybe). You also likely have some physical area where you can work, like a home office, or your couch. What you probably don’t have is a scanner. Fortunately, you can buy a Fujitsu ScanSnap that comes with a free copy of Nuance Power PDF.
Now you’re paperless, and you have the baseline requirements for running a modern law firm.
Of course, if that’s the direction you’re going to take, you’ll be limited to free software, which there is a lot of, even if most of it has not insignificant drawbacks. It turns out vendors that don’t charge for their services have less-robust products. Go figure.
The question is whether you want to. Because, if you start a law firm for $500, it ain’t going to be a super professional one. You’ll have an aol.com email account, you won’t have a website and you might be sitting on a crate when clients show up at your house.
But let’s be realistic: .00001 percent of lawyers are actually going to start a law firm for under $500.
Have you ever seen those images of different-size rocks stacked on top of each other online? Man, people love those. In most cases, rock stacks represent tranquility ( … unless you’re a seagull, in which case I suspect they make your life very, very difficult).
Less calming is thinking about stacking expenses, tier by tier, on top of that basic start-up cost of $500.
Was it intriguing to think that you might be able to start a law firm for $500? Yes. Was it a pipe dream? Also, yes.
So, let’s get down to brass tacks: What else will you want to pay for, and how much will it cost? We can organize your start-up costs into these broad categories:
To get to an actual, realistic first-year cost figure for starting a firm, let’s think back to those rocks. Each time you add an expense item based on the four categories above, you’re adding another rock to your tower. By the time you’re done, maybe you have a well-balanced rockpile with a nice little seashell on top, like in “Moana.”
Or, maybe you’re weeping next to a scattered pile of pebbles, and wondering where your next meal is coming from.
Stick to my suggestions for the 11 tiers described below, to keep your opening budget on the straight and narrow.
Since the 11 different expense categories each merits their own writeups, we’ve created a separate download for them. You can save it. Read it at your leisure. Review the tiers one by one. Make notes. Check my math. Draw pictures of mustachioed firetrucks over what I’ve written. All manner of shenanigans are allowed — nay, encouraged!
Click here to download the guide and get started on a new law firm budget, or get cracking on revising your existing one.
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Part study, part aspirational call to action, this edition of the report revealed novel practice management information for solos and small firms.January 24, 2019 0 1 0