Statistically speaking, most new businesses fail. But although most new law practices struggle in the beginning, they eventually make a go of it.
Why?
One reason is low overhead. A lawyer can hang out a shingle just about anywhere and start taking clients. No inventory, employees or expensive office needed–just a smart person, a laptop, and a phone.
Another reason is high margins. When you are paid thousands of dollars a throw, you don’t need dozens of clients to pay your bills.
Low overhead and high margins give you time and space to figure things out. It took me five years to do that, but in the interim, somehow, I was able to survive.
A few suggestions on how to do that.
1) When you’re new and don’t have much business, one thing you do have is lots of time. Use it. Get out and meet people. Speak, network, volunteer. Get out of your comfort zone and hustle. Make 50 calls a day and talk to lawyers, other professionals, business owners, and other centers of influence in your niche or local market.
Introduce yourself. Ask for advice about getting started. Ask to interview them for your newsletter.
You might get some business this way but don’t count on it. Look at it as a way to learn from and model successful people, and through them, meet others who might someday become clients or referral sources.
2) Be prepared to do “whatever it takes”. Take cases and clients who aren’t even close to being ideal. Take overflow and appearance work from other attorneys. Accept lower retainers or no retainers. Charge lower fees.
3) Conserve cash. Negotiate everything. Watch your pennies. Stick to a budget.
Things always take longer than you think and you will need that cash (and open lines of cash) to stay afloat. And, when that’s no longer the case, continue being thrifty, and build up a reserve of 12 to 18 months of income.
Accept that this is where you are right now, cutting your teeth, paying your dues and that eventually, things will be different. And find a way to enjoy the process. You may not enjoy the struggle but if you think about the future you are creating, you’ll know that one day, it will all be worth it.
