Learn how to start your own legal consulting business in this step-by-step guide covering business plans, marketing, finding clients and more. Everything you need to launch your legal consulting firm.
Are you an attorney looking to branch out on your own? Starting a legal consulting business can be a rewarding career move. However, it does require careful planning and preparation. If you have a passion for the law and entrepreneurship, launching your own legal consulting firm may be the perfect way to leverage your skills and experience to help clients in a more customized way.
In this blog post, we'll walk you through the essential steps to get your legal consulting business up and running, including how to develop your business plan, build your website, market your services, and take on new clients. With hard work and persistence, you can turn your dream of starting a legal consulting business into a reality.
The Legal Consulting Market
The legal consulting market serves both individuals and businesses in need of specialized legal expertise and advice. As an independent legal consultant, your target clients will typically be small to mid-sized businesses, nonprofit organizations, and individuals seeking guidance on a range of legal issues. The services you provide can be either local, regional or even national in scope, depending on your experience and credentials.
Legal consulting is not usually considered a mass market service. Clients are often willing to pay higher rates for experienced, customized guidance from a subject matter expert. However, as a new business, you will need to establish your credibility and expertise to reach higher-paying clients. Many new legal consultants start by targeting smaller local clients to build up reviews and referrals before expanding into new geographical areas or legal specialties.
With hard work and persistence, a legal consulting business can be very rewarding. But keep in mind that it may take time to build up your reputation and caseload to reach your full earning potential. Starting locally, focusing on your areas of expertise, and over-delivering for your clients are all good strategies to get your new business off the ground.
Your Legal Consulting Services
As a legal consultant, your product is your expert legal advice and services. To stand out, focus on specific areas of law that you have extensive experience in, such as contract law, employment law, or intellectual property. Develop a list of the types of legal issues you can help clients resolve.
Your services will typically be delivered through consultations, either in-person, by phone, or via video chat. You may also provide services like document review and drafting. Explain your approach to clients upfront, including your rates, availability, and response times. Developing standardized contracts, questionnaires, and processes for your most common service offerings will help ensure consistent quality and enable you to work more efficiently.
To develop your services, stay up-to-date with changes in the law and legal best practices. You may also want to pursue additional certifications or credentials in your areas of expertise. Make sure you have a well-designed website that clearly outlines your services, experience, and credentials to build trust with prospective clients. You should also create marketing materials like an email newsletter, blog, or podcast to establish yourself as a helpful legal resource for your target clients.
Economics and Finances
As a legal consultant, your primary costs will be the time and effort you put into serving your clients. You will need to determine competitive yet profitable rates for your services that adequately compensate you for your expertise while still being affordable for your target clients. Many legal consultants charge between $150 to $500 per hour, depending on experience and specialty. You may offer discounted rates for smaller clients or nonprofits.
In addition to your time, you will have some overhead costs to consider, such as:
Marketing Your Legal Consulting Business
To build a successful legal consulting business, you need to implement an effective marketing strategy to reach potential clients. Some of the best ways to market a legal consulting firm include:
Search Engine Optimization (SEO): Optimize your website and content to rank higher in search engines like Google. Focus on keywords related to your legal specialties and location. SEO can help drive organic traffic and leads over the long run.
Social Media: Build a social media presence on platforms like LinkedIn, Facebook, and Twitter. Share helpful legal resources, promote your services, and engage with your target clients. Look for ways to establish yourself as a thought leader in your areas of law.
Email Newsletter: Start an email newsletter to stay in regular contact with interested prospects and past clients. Share legal news, tips, and updates about your firm. An email newsletter is a great way to build trust and credibility.
Direct Outreach: Don't underestimate the power of direct outreach. Call or email local businesses, nonprofits, and professional organizations to introduce your services. Ask for referrals from existing clients and networking contacts. Build personal relationships whenever possible.
Local Sponsorships: Sponsor relevant local events like charity fundraisers, business networking events, or legal education seminars. Set up a booth to promote your firm and pass out business cards and flyers. Look for opportunities to give a short talk about your services.
Advertising: Place ads on websites, social media, or local publications targeting your desired clients. Google Ads and Facebook Ads are affordable ways to reach people searching for legal consulting services in your area. Be very targeted with your advertising to maximize results.
Sales Strategies and Processes
As a legal consultant, much of your business will come from word-of-mouth referrals and networking. However, you still need to have a proactive sales process to land new clients and grow your firm. Some effective sales strategies for a legal consulting business include:
Initial Consultations: Offer free initial consultations to introduce your services to interested prospects. Use the consultation to learn about their legal needs, discuss your experience, and determine if you can help them. If it's a good fit, provide a proposal for your services and fees.
Follow-Up: Follow up regularly with leads and referrals to answer any additional questions and move them closer to becoming a client. Stay in contact via phone calls, emails, and in-person meetings. Provide resources and advice for their issues even before they hire you to build trust.
Referral Programs: Offer incentives for existing clients to refer new business to you. A discount on services or a small gift card are good options. Let clients know you rely on word-of-mouth marketing and would appreciate any referrals they can provide.
Cross-Promotion: Look for opportunities to cross-promote your services with other related professionals like accountants, financial advisors, business brokers, and real estate agents. Provide your contact information for their clients and offer to do the same for your clients.
Speaking Engagements: Apply to speak at local organizations, schools, and events to raise awareness of your legal consulting business. Share your knowledge and experience on relevant legal topics. Speaking at events is a great way to gain exposure and credibility.
Partnerships: Explore opportunities to partner or co-counsel with other law firms or legal professionals. You can refer clients to each other when there are issues outside your core areas of expertise. Formal partnership agreements and revenue sharing details should be outlined upfront.
Persistence: Don't get discouraged easily in your sales efforts. It can take multiple follow-ups and conversations before landing a new client. Stay persistent, continue providing value, and look for new ways to start discussions with qualified leads and prospects. With time and consistency, your sales will increase.
Operations and Execution
To execute on your legal consulting business plan, focus on the following operational areas:
Service Delivery: Develop standard operating procedures for delivering your most common services. Create templates for documents, questionnaires, and contracts to streamline your work. Make sure you have a consistent process for communicating with clients, meeting deadlines, and ensuring quality service.
Time Management: As a legal consultant, your time is your most valuable resource. Implement time management best practices like blocking off time for high-priority work, limiting distractions, and scheduling in breaks. Learn to delegate when possible. Tracking your time for each client project will help ensure you are charging appropriately for your services.
Client Management: Provide an excellent experience for your clients to encourage repeat business and referrals. Respond to client inquiries promptly, meet all agreed upon deadlines and deliverables, and be transparent in your communication. Send regular updates on projects and ask for client feedback to make sure their needs are being met.
Accounting: Set up a system to track your business income, expenses, accounts receivable, and accounts payable. Meet with an accountant to determine if you should form an LLC or corporation and the best way to file your taxes. Keep meticulous records of all financial transactions for your legal consulting business.
Continual Learning: Stay up-to-date with changes in the law and best practices in your areas of expertise. Pursue ongoing education and additional certifications as needed. Read legal publications, take online courses, and connect with other professionals in your field of law. Your knowledge and skills are the foundation of your legal consulting services.
Legal Considerations
This blog post provides an overview of how to start a legal consulting business. However, keep in mind that there are many legal and regulatory requirements involved in launching any business. Be sure to do thorough research into the laws regarding legal consulting and advising services in your city and state. You may need to obtain proper business licenses and permits. Professional liability insurance is highly advisable. There are also strict rules around client confidentiality and conflicts of interest that must be followed.
Consult with an attorney to make sure you understand all legal obligations before promoting or operating your legal consulting firm. Failure to comply with regulations could result in penalties, lawsuits, or even loss of your license to practice law. The information in this blog post should not be construed as legal advice. Always do your own research to determine the laws that apply to your unique situation.
Conclusion
Starting a legal consulting business is challenging yet rewarding work. If you have a passion for the law and entrepreneurship, leveraging your expertise as an independent legal consultant can be an exciting career path. However, it does require diligent planning, hard work, and persistence to build a successful practice.
Focus on developing a comprehensive business plan that outlines your mission, target clients, services, and operational processes. Build a professional website and implement a marketing strategy to reach new clients. Provide the highest quality service and advice to gain excellent reviews and referrals. Stay up-to-date with changes in your areas of law and continually expand your knowledge.
While there are many legal details and regulations to consider, don't let that discourage you from pursuing your goal. Do thorough research and work with an attorney to make sure you understand all requirements before launching your business. With time and consistency, you can establish a reputable legal consulting firm. If you start small, focus on your niche, and over-deliver for your clients, you'll be well on your way to building a rewarding career as an independent legal consultant.