Going Solo on a Shoestring Budget

Going Solo on a Shoestring Budget

Cash is king for all start-ups, even solo law practices. While a modern attorney needs little more than a computer and a phone, starting a law firm requires significantly more than that.  

A solo must figure out how to establish a brand identity, find work and meeting space, get clients, access legal and technology resources, and manage client billing, invoicing and accounting. The cost of obtaining all of these resources can add up quickly. Even if a solo has existing clients and work, it may be weeks or months before this might result in revenue.

Unless a solo attorney has saved thousands of dollars, has family financing, or is willing (and able) to go into debt- they may not have the funds needed to launch a firm and cover expenses for the first few months. If so, the fledgling firm may fail before it ever really gets started.  

One way to ensure success is to minimize expenses as much as possible, but it’s almost impossible for a new solo firm to completely avoid expenses altogether. There are a number of resources that all lawyers need to function and build their law firm. To keep expenses to a minimum, however, savvy solos will find ways to obtain these essential resources at little or no cost.

Below are some ideas and examples of ways to save on essential resources that solos need.

Establish a Brand Identity

Successful businesses know that marketing and branding are critical to long term success of their enterprise, so even in the beginning when cash is at a premium, a solo firm cannot disregard establishing a brand.

For a number of reasons, a solo might want to establish a limited liability entity such as an LLC or corporation. However, creating those entities require filing fees and legal fees, unless you are comfortable enough with corporate law handle the formation yourself. As such, the solo may initially practice as a sole proprietor under their actual name, such as “John Smith, Attorney at Law.”

To build a brand identity, there are three key items the solo will need: business cards, a web site, and an email address. These used to be very expensive for a startup but are now quite reasonably priced.

Business Cards. Although creating a cool logo might be a goal in the future, at the startup phase, it is not necessary for a solo on a tight budget. Instead, the solo could take advantage of an online business card service such as Vistaprint, which often has icons and images that can be used on printed business cards. And the cost of 500 business cards can be less than $50.

Web Page. Buying a web domain is inexpensive - about $20 a year through services like GoDaddy and solos can have their web site hosted for as little as $100 a year. Thanks to online “click and build” templates for websites, the solo can build a decent-looking multi-page web site themselves.

A solo’s website really only needs: a landing page, a services” page describing the firm’s services, an “about us” page containing the attorney bio, and a “contact us” page. Keep in mind that the state and local bar associations may require pre-approval, disclaimers, or have other guidelines, so check with your bar rules for web requirements.

Email Address. Once the solo purchases a web domain, they can often use the web host to also host their email for no extra cost. This allows the solo to use an email such as Joe.McLawyer@McLawyerLawFirm.com instead of joeMclaw2012@gmail.com. 

Find Work and Meeting Space

Another critical consideration will be where the law firm will be based. Although working from home may be an option for actual legal work, a new solo must also consider where they will meet with clients and prospects, as well as the professional image of their published address on their business cards, letters, invoices, etc.

Perhaps using a PO Box or UPS store as a mailing address might at least protect the solo’s personal privacy. But, for a slightly more official-looking address at a still reasonable cost, solos may want to purchase a virtual office from a co-working space or executive suite. In addition to having a physical address for mail, business cards, and web contact pages, virtual office packages often come with at least some ability to use conference rooms for meetings.

Using coffee shops and restaurants may be good locations for casual conversations, but solos should be wary of conducting client business or working on client files in such an unsecured environment.

Getting Clients

There are a number of ways to get clients, but a solo on a budget must look to those which don’t require an upfront investment. Some great resources can be local bar association referral lists, court assignments and other established free service referral options. 

In addition, even established lawyers will note that best source of high-quality client work often comes from referrals from existing clients and fellow attorneys. As such, an excellent resource can be the solo’s own Contact list to reach out to personal acquaintances and ask for referrals. Email and phone calls don’t cost anything, but time and energy.

Solos can also sign up for “freemium” online services (i.e., a basic listing is free, but advanced promotion and other benefits cost money) such as Avvo, create free social media pages on Facebook, LinkedIn, Instagram, etc., and even promote your services at online sites such as Nextdoor and Craigslist. Please note, however, that attorney advertising is onerously regulated by bar associations, so check the requirements before you post anything.

Access Legal and Technology Resources

Regardless of the type of law practice, all lawyers need some basic technologies beyond their computer and smartphone, which a new solo most likely already possesses.

The most important is secure internet access. Working from home, internet access already exists for the solo and most executive suites, even subleases, often offer internet access as part of their included amenities. 

But what if you are working in your car, while sitting outside your kid’s school, waiting in the pick-up line? One option is to set up a personal hotspot through your phone – essentially creating a new WIFI connection that allows you to connect your laptop. Carriers typically limit the data available, but this might work in short doses.

If you find yourself working in a coffee shop, airport lounge, or some other place that has WIFI available, you might want to consider first turning on a virtual private network (“VPN”) to protect your device from unwelcome snooping.

Legal research is available for a fee from services such as LEXIS and Westlaw, but you may be able to negotiate a reasonable rate, depending on the scope of need you have for research. In addition, a great deal of state and federal statutes, administrative regulations and rulings, and even case law is available on the Internet at no cost from law schools, courts, and government agencies.

For document management- the most efficient and convenient service is to use a cloud service such as Dropbox, which often offer free use for up to 2 GB of data, with more available to a fairly reasonable fee. Be sure to review the technical specifications of cloud providers to ensure they satisfy your needs as well as local bar rules.

Of course, you will also need office software such as MS Office and Adobe (for converting PDFs to editable documents and using e-sign to get engagement agreements signed digitally). These are now available by monthly subscription. Although solos can save by paying for a full year at a time for these products, paying monthly can help reduce the short-term expenses until the new firm has a bit more revenue.

Managing Client Billing, Invoicing and Accounting

Most attorneys need to track time, even if they bill on a contingency. Legal-industry specific timekeeping and billing software options can be expensive, but many have discounted rates for solos. 

In addition, there are a number of timekeeping and billing software resources outside of the legal industry, such as Harvest. Many of these are free for very low-level users or have fees as little as $10 a month. In addition to allowing you to track time, many of these services allow you to send invoices, accept credit card payments, and will automatically sync with your accounting software such as Xero or Quickbooks.

For accounting, it is hard to beat Quickbooks online. Other services exist and new ones arrive from time to time, but most every CPA is intimately familiar with Quickbooks, which can save them time in reviewing and reconciling your books (thus saving you money). If you use a CPA for your taxes, you should ask them if you could purchase QB online through them, as they often get a discounted rate for their clients.

ENGAGE Workspace for Lawyers

Many of the items mentioned above are available from Engage, a unique type of executive suite that caters to lawyers. Engage offers private offices as well as virtual offices, which include access to meeting space, secure Internet, and a physical address that enhances the image of solo attorneys in a secure, professional environment. Networking opportunities abound, since 30+ attorneys are part of the Engage office community. In addition, Engage provides its members with access to discounted services from a number of providers, including IT, marketing, and others. Check out Engage at www.engagelawspace.com

Engage Workspace for Lawyers is an office space for lawyers built by lawyers. Unlike other coworking spaces, Engage charges a flat monthly rate for access to a full suite of resources and limits membership to a community of lawyers. If you are looking for law office space where you can focus on your practice and be surrounded by great colleagues, please contact us or book a tour.

© Elysium Consulting LLC dba Engage Workspace for Lawyers.  2018-2023.  Represented by intellectual property law firm, Klemchuk PLLC.