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Editor’s note: This is the second installment of a three-part series offering advice on the process of launching your own law firm.
You’re ready to launch! Or at least you think you are.
Before the ultimate act of hanging out your proverbial shingle, here are 10 action areas to ensure the final step of launching goes off as smoothly as possible:
Business Plan. As an attorney, the words “business plan” may include side effects like nausea and panic. Fear not. These are fancy words for defining your expectations around the new business. Define your niche and client profile within the existing market, refine legal workflow from client intake to closing, draft a monthly budget, and define immediate and longer-term cash flow, including your own financial needs and risk tolerance.
Staffing. What immediate staffing needs do you have to ensure a seamless transition of client legal work? Consider offers of employment that account for employment status, compensation and bonus, paid time off and other benefits. Leverage the unique skill sets available through the hiring of temporary interns and law clerks. During the interviewing process, screen for candidates comfortable working in a start-up environment.
Accounting: This set of services just came part-and-parcel with being in a law firm. In your firm, you will need to consider preparation of a draft budget during your pre-launch phase, preparation of formation documents, payroll, bookkeeping, cash flow, billing and collections practices, and monthly budgeting and profitability analysis.
Banking: This is another set of important services that you did not have to worry about in the law firm setting. Your banking partner can help you establish business and IOLTA-compliant trust accounts, as well as a potential line of credit and business credit card. They can also provide options and explanation of ACH, wire transfer and remote depositing for your accounts receivable and payable needs, and assist in setting up security features, such as Positive Pay.
IT Services: Your IT service provider will assist in pricing and securing laptops and other equipment needed for each user. They’ll provide front and back-end support related to new user setups, networking needs, printers, copiers, phone, video and conference lines, MS Office, data security and backup, and ongoing help desk support.
Software: In addition to any practice specific software required in your practice, there are numerous practice management products that provide robust solutions on time entry, billing, document and contact management, all with an intuitive user interface.
Insurance and employee benefits: You’ll want to partner with a broker who can advise on the various business liability and legal malpractice insurance options available to you and specific to your business and practice specific needs. Offering employee benefits, such as health insurance, short-term and long-term disability, life insurance, and 401k, may be benefits that can be delayed depending on staffing needs.
Space: Since this is often the largest monthly expense outside of payroll, engage a real estate attorney to review the lease terms, early termination options, as well as maintenance and tenant improvement needs. Also consider parking, building security, the impact of remote work, and overall office needs such as kitchen, bathrooms, reception, conference rooms and private offices, as well as any existing furniture and IT infrastructure in the space.
Mail services and digital marketing: Consider incoming and outgoing mail and express courier service needs and coordinate with both the U.S. Postal Service and your preferred express courier provider regarding your practice-specific needs. Engage a digital marketing consultant to assist in everything from logo and branding design to website domain and content, team photos, firm letterhead, and email signatures.
Notice: It’s worth the small investment to retain a legal ethics attorney to discuss notice obligations and best practices, return of capital, and the transfer of client files and intellectual property. Ethics counsel also may be able to assist you with draft language for both formal and informal notice to the firm, colleagues, clients (including file transfer details), courts, governmental agencies, bar associations, and personal and professional networks. No matter your thoughtfulness and care in providing notice, be prepared for a wide array of reactions. Keep in mind that you have had far longer to contemplate your departure than your colleagues have; no matter the circumstances or reactions, extend some grace on the way out.
From the moment you give notice to your firm, the next several months will be amongst the most thrilling and gratifying experiences of your legal career. While preparation goes a long way, it’s impossible to account for everything.
Take time to appreciate the big and small moments and continue to protect your personal time throughout this wild ride. Enjoy it! This part of the ride won’t last forever, as we will explore in the next issue of Indiana Lawyer in Part III: Leaping.•
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Jenifer Brown is co-founder of Brown Glier Law, LLC in Indianapolis. After practicing in BigLaw for 22 years, Jenifer and her partner, Christl Glier, co-founded their firm focusing exclusively on business immigration.
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