How to … start a law firm

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Making the decision and really committing to it could be the most important issues for a lawyer when starting a private practice.

There are practical considerations – budget, location, billing – but making that initial decision could be the biggest, said Deborah A. Blommer, who taught a course at Marquette University Law School on how to start and manage a law practice.

“Have confidence,” said Blommer, who runs Blommer Peterman S.C. in Brookfield. “If you’re going to do it, you’re going to do it. There will be obstacles, but if you really want to do it you can.”

Blommer started her own firm after realizing she did not want to juggle house, family and her 1-year-old son while working for someone else.

Her practice grew from her basement to her living room to a private office. Nearly 17 years later, the firm has 50 employees and seven attorneys.

“It’s really a self-evaluation before you begin a project like this, but I don’t think there’s any better reward in the whole world than running your own practice,” Blommer said.

And having good business sense is as important to building that practice as practicing law, said Ralph Cagle, a professor at the University of Wisconsin Law School.

“The things that determine success and failure deal more with the business aspects,” said Cagle, who was a civil trial lawyer for 17 years before joining the university. “You are the product. You have to think about networking. And you have to think about business management.”

Find Your Niche

Deciding what kind of law to practice is a huge part of that.

Cagle suggested finding a niche, such as family law. Blommer started by tapping the needs around her, working up wills and managing real estate closings for family and friends.

Wausau attorney Andrew Schmidt said legal specialty could determine another important factor in starting a practice: location.

Start-up costs convinced Blommer that working from home wasn’t such a bad idea. And she turned the decision into a positive marketing strategy.

“I was right up front with everyone. I told them I worked from my home and why,” Blommer said.

Blommer made home visits, reminding her clients that the house calls would save them time and effort coming to see her in the wind, rain or snow. Many liked the family-centered approach to business and appreciated the convenience of sitting with Blommer in their living rooms.

“I made something that was very negative for some people into a fantastic selling point,” Blommer said.

But not everyone is made for at-home work.

“Do you need to go to an office every day?” Blommer asked. “Or can you work in your pajamas with a cup of coffee in your living room?”

Budget Basics

For those who settle on an office outside the home, the question is: where? That answer could lie in another consideration: budget.

“Start with your wallet. How much can you afford?” suggested Schmidt, who helped develop the State Bar of Wisconsin’s Law Office Management Assistance Program, Practice 411.

New lawyers could spend roughly $15,000 per person on a building, which could dictate whether a new lawyer can afford staff. That cost includes furniture, lights, decorations, computer, software, a library, advertising and promotion, checking accounts, checks, calendar, and a little bit for buffer for, say, those first six months when money won’t likely be rolling in.

An office alone could cost $12,000 a year, for a modest space, Schmidt estimated.

A few other money matters to keep in mind:

Set up two bank accounts — one for trust, and one for general expenses. Schmidt said each account should have $1,000 seed money. That money can be pulled out later, but should cover start-up expenses, such as filing fees.

Also, Schmidt said, “Don’t mix home money with your general practice account. Have your own checks and your own account. If you’re going to go into business, go into business.”
Another key expense: malpractice insurance.

Premiums are typically low for new lawyers because rates are based on claims against them – few cases, probably means no claims – so skipping insurance would be a mistake, Cagle said.

Billing also is important. Decide how you will do it and how often. Daily, weekly, monthly, quarterly are all options.

Appearances Are Important

With issues like budget and billing to consider, office aesthetics might seem unimportant.
Not true.

Yard sale office furniture can scream amateur, not a good message for a profession that demands confidence.

“People will assume you don’t practice well,” Blommer said.

Schmidt agreed. “It would be wrong to go out and buy desks at yard sales unless they’re really nice ones. People do look at the furniture. You have to get nice furniture, and don’t be afraid to get extra wide furniture.”

That’s right, Schmidt said. Clients come in all shapes and sizes. It would be unfortunate to lose business because your furniture wasn’t a good fit.

Unlike with furniture, certain office equipment, such as computers or printers, may be bought secondhand. Just make sure they are quality pieces.

“No dot matrix printer,” Schmidt said.

Internet also is a must, especially if you practice in a town without a strong law library. Schmidt advised spending a few hundred dollars to join legal databases, such as WisLaw.

A mentor is another valuable resource.

“They’ll give you a little of their time and probably a lot of their expertise,” Cagle said.
Use a lawyer-to-lawyer directory or the state bar’s Practice 411 for resources.

Spread the Word

With the office and support network in place, marketing becomes key.

“A good sign outside is required,” Schmidt said. “You’ve got to tell people you’re there.”

When it comes to advertising, turn to the phone book before the Internet. And know the deadline. Missing the Yellow Pages print date will mean a long, slow first year in practice, Schmidt said.

Small, business card-sized ads in a newspaper or shopper are a good idea, but avoid direct mail unless you have a specialty, such as landlord-tenant or elder law, Schmidt said. Even then, rely on mailing list services.

Often, the best advertising is word-of-mouth. So get into the community and let people get to know you.

Once people know you are there, be ready to answer the phone or have voicemail set up if you can’t.

And, when the clients start coming in, don’t be afraid to be selective. Some are just more trouble than they’re worth.

“You have to screen some clients,” Cagle said. “It’s very, very hard
to do when you’re starting out, but it’s crucial. Those clients can actually bury a new practice.”

Once those elements are in place, it’s a matter of believing in yourself and working hard.

“It’s going to be maybe 60 or 70 hours a week, but at least you’re your own boss. And that’s where the huge reward comes in,” Blommer said.

Cagle agreed. “You’re working day in and day out, seven days a week, doing whatever work needs to be done. There are great payoffs, but they’re further down the road.”