Business Tips for New Law Firms
You probably didn’t learn the basics of running a law firm in law school. But even if it’s a side of legal practice clients never see, taking care of the business side of the firm frees you up to give your all to client advocacy. Here are the core steps to grow your practice in 2025.
Start With a Budget
The business of running a law firm comes down to the numbers. Start with a reasonable estimate of expenses. Talk to vendors about office equipment and commercial space to get a realistic idea of your monthly expenses for necessities. Try to include at least the following in your budget:
- Office space rent
- Utilities – electricity, water
- Answering service for client calls
- Specialized software – legal customer relationship management (CRM) solutions, case management software
- Marketing
- Employee wages and benefits – legal assistant, receptionist
- Cleaning service for office space
- Taxes
You might also have one-time startup costs like office furniture. If yours will be a home-based practice, consider whether you need to renovate your space or add new furnishings to make it client-friendly.
Once you have an idea of your budget, you can come up with a rough estimate of the number of billable hours you’ll need to cover your costs.
Choose a Legal Entity
As part of establishing a firm, you must decide on its legal structure. Your state might have specific requirements for legal professionals, but, in general, your options are a limited liability corporation (LLC) or professional corporation (PC). If you are entering into practice with another lawyer, consider a limited liability partnership (LLP).
Legal entities offer protection, so you are usually not liable for the actions or debts of the business. Most legal entities also protect your personal assets. To choose the right structure, meet with an accountant or business lawyer who can provide recommendations.
Create Your Website
An online presence is a must for your law firm business to build a client base. Most potential clients find out about you through online searches. Those who’ve gotten a personal recommendation will Google you to learn more before making an appointment. A website is your opportunity to sell your skills in the way you want. In the digital age, it is the face of your business.
Technical elements of your website include search engine optimization (SEO), which helps potential clients to find you online. To boost your SEO, you can work with a marketing agency or use online tools like Semrush or Moz. You can also adopt local SEO strategies that increase your chances of popping up when a client searches for “lawyers near me.”
Add Your Firm to Legal Directories
Your online reputation is another facet of your firm’s public face. To improve yours, consider adding your firm to directories like Lawyers.com and Avvo. Directory sites serve two purposes: they’re another place for potential clients to find you, and they are a source of reviews. At these sites, people can compare your firm to others in your region.
As your firm grows, you can suggest that clients add their own thoughts to review sites like these and more general platforms like Yelp and Google. Adding to your online reputation instills confidence in potential clients. From an SEO standpoint, listings on Lawyers.com and Avvo can also be a positive factor that increases your search engine ranking.
Build a Social Media Presence
Social media is an important piece of digital real estate for all small businesses, including law firms. Set up a business page on sites like LinkedIn, Facebook, and X. A primary benefit is having a page that lists your business hours and contact information. On Facebook, it’s another spot for clients to leave reviews. On LinkedIn, you can connect with colleagues.
One often understated benefit of social media for business is letting people know your office is still open and in the same location. Posting on a semi-regular basis on issues of community interest shows that you haven’t joined a different firm or moved out of town. There’s sometimes a worry that Google information isn’t up-to-date as a closed business might still show up on Google Maps.
Active social media accounts show you’re still in the neighborhood – and still providing legal services.
Consider Technology
Information flow is at the heart of legal practice. The consequences of missed deadlines, missing research sources, or lost documents are grave for lawyers and clients. Law firm management software can help you avoid these potential practice pitfalls. Consider if you want to use one of the many law office computer programs to automate and modernize your practice.
Case management software can also help with the administration of all client tasks, including scheduling, payments, case notes, and expert testimony lists. Especially as your practice grows, using legal management software can help you stay on top of cases in progress while also effectively managing client leads and communications.
Outsource Your Marketing
The ideal scenario for many new lawyers is to have an in-house marketing manager or even a marketing department. But that’s not a reality for many small firms or solo practices, especially in the early stages.
There is a happy medium between shelling out a lot of money for a marketing professional and doing all the promotional services yourself: outsourcing your marketing. By partnering with a company like Martindale-Avvo for your law firm marketing, you get the benefit of marketing strategies that can generate client leads and build your brand presence.
Get Help Marketing Your New Law Firm
Starting a legal business is an exciting endeavor, whether you’re taking a break from the big firm grind or are just beginning your legal career. Nailing down the nuts and bolts of opening a firm is essential in the early stages.
As you get going, consider the best ways to get your name out there. Partnering with Martindale-Avvo for marketing services can help you find new clients that build your practice and your firm reputation. Talk to us today!
