If you’ve ever been interested in starting a legal consultant firm, look no further.
Legal consulting services are things that many lawyers and law firms seek when they’re working with clients. Because of this, starting a legal consultant firm can earn a business owner a lot of income without having to put in as much work as they would with another business.
Providing that you’re following the essential steps when starting the firm, you’ll quickly find success. Starting legal consulting firms requires some planning, but you’ll soon start building a clientele that will continue to invest in you.
Keep on reading to learn how to properly start a legal consultant firm!
Create a Business Plan
One of the first things you’ll need to do is create a business plan. Creating a plan is essential because it gives you something to follow whenever you’re lost. This plan should outline what your goals are and how you plan on accomplishing them, along with alternate methods in case one falls through.
You should also think about how you’ll fund the business, where you’ll set up, and how you’ll advertise. This will let you come up with various strategies so that you can find success.
When creating a plan, you must thoroughly research what other legal consulting firms. It’s best to take similar approaches to what they do because they’ve essentially laid out a pathway to success for you. However, you shouldn’t make your firm a clone of someone else’s.
Your consulting firm needs to offer things that other firms don’t, whether it’s competitive rates or more services. By looking at the competition and seeing what works for them, you can get a rough idea of what you should do.
Form a Legal Entity
Because a legal consulting firm is a business, you’ll need to form a legal entity before you can start providing services. The first step to doing this is to obtain a business license, which guarantees that your business is legal and trustworthy.
Without a business license, you’ll run the risk of getting your firm shut down and you may have to pay large fines. You won’t have to spend more than $400, so try to get it as soon as possible.
After getting a business license, the next step is to form a limited liability company (or LLC) so that you can protect your firm if it gets sued. Forming an LLC also makes you look more credible to clients, increasing the likelihood that they hire you.
Fund the Business
When starting any business, you need to find a way to fund it. Most startup owners will take out large loans, but this should be the last thing you do. A plethora of methods exists that will help you start your firm without relying on a loan.
One of the most common methods is seeking investors, which can’t be done with law firms. However, a legal consulting firm simply provides law firms with advice, so they’re able to get investments to help them stay afloat.
When seeking an investor, they’ll take a portion of the business while providing you with money. You’ll most likely have to go to investors, so try to see if you know someone that can recommend you to one.
After seeking investors, you can opt for a business loan. Most business loans come with affordable interest rates and monthly payments that last several years, though it’s best to pay out of pocket.
Funding a legal consulting firm with cash instead of a loan allows you to focus on the business instead of how much income you’re making.
Choose a Location
You can’t offer legal consulting services without an office, so you must start looking for one soon after you’ve started funding the business. It may be better to do this before seeking an investor because it will make you look more convincing.
You’ll want to choose a location that’s near law firms and other offices so that it’s easier for them to reach you. You may have a lot of in-person meetings, so being close to other firms will encourage them to work with you instead of someone that’s far.
Before deciding on an office, you should ensure that it’s large enough to handle everything you need. It should have enough space to hold several desks, cubicles, and meeting rooms.
Advertise Your Services
Advertising a legal consultant firm is as simple as publishing ads on social media, which is where most people see their ads. Over 3.5 billion people actively use social media, giving you several platforms to reach your target audience.
On most platforms, you can choose from several filters that let your narrow down who will see the ad. Things like location, age, and gender can be selected.
You can also look into services like legal shield leads, which provide consulting firms with leads that help them increase their clientele. Doing this will guarantee that you earn more business and maximize your profits.
Start Your Legal Consultant Firm Today
Unlike most businesses, a legal consultant firm doesn’t require much money to start to bring in revenue. Law firms and other legal representatives actively seek advice when dealing with clients. By starting a legal consultant firm, you can quickly begin earning a passive income.
Start the process by creating an effective business plan. From there, you can look into growing the firm by forming a legal entity and getting a property to begin operations.
Browse our articles if you’d like to receive more business advice.