What Lawyer's Would Have Done Differently When Starting Their Private Practice

When someone starts their first private practice, it's likely to be new territory for them. Whether they're transitioning from working for the State, a non-profit organization, or a private firm, running your own practice is entirely new and different. One of the best ways to successfully start a private practice is to learn from other lawyers who have already spent years on their own. After all, a wise man learns from a fool's mistakes. Here are some tips/things other lawyers who started a private practice, would have done differently. 

(These are all subjective. However, it may be crucial advice for those who plan to open their own practice). 

Tip #1: Consider Your Budget 

Surprisingly, many attorneys overlook the importance of budgeting when starting a private practice. 

It's important to calculate any expenses such as office space (unless you're working virtually), hardware, software, malpractice insurance, etc. And then project your revenue based on billing rates, number of clients, and revenue streams. It's vital to regularly track your firm budget from the early stages onward. You can use digital tools to help you such as QuickBooksOnline to help. 

Tip #2: Have a Marketing Plan

Your marketing plan should be tailored to the clients you're seeking. Therefore, first, you need to determine your target market, and then select marketing channels. (Which can range from digital marketing, sponsorships, or attending events). CONSIDER WHAT POTENTIAL CLIENTS WILL BE LOOKING FOR WHEN SEEKING A LAWYER. By getting into potential client's minds, you can better market to them and offer marketing that will draw in the people you're looking for. 

This ties back into Tip #1: Budget because your firm's budget will also inform you on marketing considerations. Will allocated expenses go towards marketing? Or will you focus on networking instead? These are decisions you have to be aware of when starting a private practice. 

Tip #3: Utilize Flat Fees 

By using a flat fee, you get paid upfront rather than months later after many hours of labor and utilizing resources. This will substantially help your cash flow. 

If you're not comfortable using flat fees, consider doubling your retainer. Although this may narrow down your clientele, it's another sure way to get paid sooner, and while doing the work. Flat fees don't work for every business model, but if it's something that fits well with your practice area, consider using this fee arrangement. 

Tip #4: Ask for Client Feedback

By seeking client feedback throughout your services as well as at the end, you get the opportunity to assess your client's expectations, advance client confidence, and demonstrate your compassion for the client. In addition to the ways it may bolster your client-attorney relationship, feedback is also a great way to improve your work and/or operations. Either way, it's a great way to maintain client retention and draw more clients in. 

Tip #5: Know Your "Why"

This relates to a personal "why" as well as professional "whys". 

Personal "Why" - Think about how your law firm will meet your personal goals such as goals for your family, yourself, and outside-of-work considerations. 

Professional "Why"- How will your law firm and day-to-day work advance what you see for yourself in your career path? Also, how will it advance your broader purpose? By knowing this, it can help you determine the clientele you're seeking. Do your client's goals align with your broader purpose? Do their goals and expectations excite you? 

Knowing your "why" guides not only the clients you attract but also your ideal clients. 

To conclude, experience is the best teacher. You can compensate for your lack of experience in owning a private practice, by having discussions with other lawyers who have made mistakes, learned from them, or have even found success by incorporating different factors you may not have ever considered.