Creation of a legal agency and collection business. How to open a law firm? Business costs and estimated profitability

10.12.2019

In this material:

How to open a legal consultation office from scratch? It's not as difficult as it seems at first glance. You can start in this business without any investments, from scratch. This explains the presence of a large number of small businesses that provide legal services to the population on a paid basis. Let's look at how to do this and what difficulties you will encounter.

Starting a business

You can open a legal business from scratch without the appropriate education. There is no need to have a diploma from any university that trains lawyers in order to provide legal services to the population on a paid basis. If you are literate in the field of law, have encountered this more than once, and had to run your own practice, then you can easily do it for money and without a diploma.

It so happens that people who are faced with certain life situations turn to court to resolve complex issues. Taking an active part in the judicial process, delving into the intricacies of the current legislation, such people may come to the conclusion that they understand it no worse than qualified lawyers.

For example, if a person went through a difficult divorce process on his own or with a lawyer, and used the acquired skills to help acquaintances and friends who found themselves in a similar situation, then he can help others in this matter. It is practice that makes a truly qualified lawyer, not diplomas different colors and forms.

And if there is no such experience, then this is not a reason to give up on this project. There will always be those people who have both diplomas and some experience. Moreover, they are ready to work for hire honestly and conscientiously. Not everyone believes that individual entrepreneurship is simple and accessible to everyone. As strange as it may sound, there are also many legal scholars for whom the idea of starting their own business is not even in the realm of their dreams.

You need to choose a specialization. The legal services market is saturated precisely because of the availability of this project. It is difficult to compete successfully in all areas of law. Select one or more directions. If you have experience, as stated above, in divorce proceedings, it is necessary to specialize in it.

The only thing you can’t handle without a diploma and a lawyer’s license is criminal cases. Only criminal proceedings require appropriate education and qualifications.

What needs to be done to open

How to open a legal consultation? The process of starting a legal consulting business is made easier not only by the absence of the need to have an education. Everything you need for it is in any office, which is easy to rent. This includes a desk or computer desk, office chairs and armchairs. All you need to do is bring your computer or laptop, cell phone, printer combined with scanner, and paper and stationery. After this, all that remains is to order a sign on the office door with the inscription “Legal consultation”.

But before you open such an office, you need to register as an individual entrepreneur. If you do not work anywhere, register as unemployed at the Employment Center and go through a simple procedure for applying for a subsidy to open your business, prepare a business plan. The state supports unemployed people starting their own business. The minimum amount of subsidies is from 25 thousand rubles. This is enough to buy a laptop and a printer.

If you are going to hire staff, then you can provide that each hired employee already has his own laptop. It’s rare to see a lawyer or a university graduate who doesn’t have his own laptop. Otherwise, you will have to include costs in the business plan and increase the amount of the required subsidy. You can see a sample of how to prepare a business plan in Appendix No. 1.

Refusal to receive a subsidy is not a reason for frustration. Purchase several devices on credit or in installments. If you have any funds for the initial start, purchase used laptops. They will cost 8 thousand rubles each. Thus, to open an office with 3-4 jobs you will have to spend about 30 thousand rubles.

This is the minimum set, but there are also small legal advice businesses that operate without an office at all, using rooms in business centers for meetings with clients. This approach requires good self-confidence in yourself and your professional opportunities. This makes some sense.

An enterprise located in an office with a sign displayed at the entrance can itself attract some customers. But the rent for such offices is high, and all such places are already occupied. Renting premises in a multi-storey business center does not provide such advantages. You will still have to get involved in the active promotion of the services provided, encouraging potential clients to make at least one call. But where to receive this call - at home or in the office - makes no difference. Just make sure that when answering a call, the background for the client is not a child’s scream or cry, a dog barking or a cat meowing.

What difficulties await

The main difficulties that you will definitely have to face when opening a legal business are the following:

very high competition;
it is very difficult to provide an enterprise with a permanent and solvent clientele;
staff dishonesty.

Many citizens consider themselves consummate lawyers, and therefore consider it necessary to work in this niche. And since it is impossible to find law firms for everyone, the remaining applicants open their own consultations. Add to this a very low start in this business, and you get a formula of high competition that does not decrease.

This leads to the next difficulty - it is very difficult to find clients. Those that come across either offer to take on hopeless cases that other lawyers have refused, or do not have enough money to pay the required cost for such cases. Don't rush to give up on such things. Perhaps they are the ticket to the Olympus of the legal business. If a rumor spreads in the city that a new office has opened that provides services to the poor at half price and takes on hopeless cases and successfully wins them, there will be no end to clients and the staff will have to be increased. Take note of this.

They learn about the dishonesty of employees when they leave the office, taking with them a dozen regular good clients.

To prevent such developments, the business owner needs to independently search for clients and establish relationships with them.

The client must understand that he is addressing the manager, and his employee is only helping in this matter by performing routine work.

But the employee must also understand that clients do not come to him on their own, that this process is complex, labor-intensive, and requires certain investments and developments. And if their office leaves, he will have to independently resolve this issue, which will be more complicated than the process of providing services itself.

How best to promote services

Having a sign does not mean a stream of customers, and a newspaper ad will not improve the situation. This already worked poorly 10 years ago, and now it is completely ineffective. Focus your efforts on the following:

creation of a legal advice website;
regular publication of valuable legal advice on it;
duplicating publications on the company’s social network page;
recruitment of subscribers through contextual and targeted advertising;
creating a legal literacy newsletter for subscribers;
conducting online seminars and consultations;
cold calls to potential clients.

Such promotion must contain a business plan for the project, and it will have to be done before opening a legal consultation in order to get off to a successful start.

Order a business plan

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From time immemorial, people turned to their smarter and more experienced brothers to help them solve various everyday and personal problems. A thorough knowledge of the laws and the ability to find a way out of the most difficult life situations first brought the experts universal respect, and then a good income.
Today, law firms remain just as in demand, and good specialists in this field continue to be highly valued in the labor market. It is these lawyers who often open their own business. Developing a legal business literally from scratch requires from a future businessman not only professional talents, but also remarkable leadership and organizational skills, as well as competent planning skills. We will talk about how to succeed in this endeavor in this article.

Market analysis

Before starting a legal business from scratch, analyze how much the labor market in your city needs such services.

A lawyer, especially if he is truly a professional, will never sit idle. With proper advertising, clients will find it, even if the company is located on the outskirts of the city.

Opening a law firm does not require large expenses for an entrepreneur. He doesn't need expensive specialized equipment, a huge building or a crowd of staff.

How much does a lawyer earn?

A question that worries every specialist. What if the firm opens, but does not bring as good a profit as working in an already established law corporation? The salary of individual workers in this industry can reach $3,000 monthly. But, of course, everything depends on work experience, direction, as well as competition in the region.

Law is one of the most competitive professions. To achieve success, you need to be a very good specialist, or be able to break through. The company requires registration of an LLC, and this is paperwork, which also leaves much to be desired.

Different regions have their own characteristics related to the field of jurisprudence. Before opening a legal enterprise, be sure to clarify them. To understand.

Business plan

A business plan for a law firm is the first thing a competent aspiring entrepreneur should do. Lay out your actions step by step, estimate how much finance will be required at each stage, and then figure out where to get these same finances. In fact, getting money is much easier than managing it correctly.

The following options are possible:

Credit (it is doubtful that the company is worth such sacrifices);
Sale or pledge of your property;
Debt (I believe parents and relatives will happily support if they think the company is promising);
Opening a company by several people (team up with friends, divide the capital equally - and the financial burden will become much lighter);
Investment (whether you manage to get government help or you manage to interest a business angel - it will still be a huge success).

Before developing a legal business, an entrepreneur goes through the registration stage.

The company must look respectable. This is one of the main levers influencing the influx of clients, so it is best to register it as an LLC. Select a tax system (payment options are 15 or 6%).

Premises: selection criteria

Before opening a law firm from scratch, find suitable premises. It could be a very small office. The main thing is that it is not located on the very outskirts (until you become a lawyer known throughout the city, the firm should be located in easily accessible places). In this room you or your assistants will meet with clients, and accounting and other documentation will be stored here.

It is also possible that employees will respond to customer calls directly to their homes. Then the office is needed only for meetings with clients.

Repair and equipment

Renovations are not the most important thing a start-up law firm should spend on. However, it is needed as an indicator of status. It is best if the room is decorated in neutral colors. Light walls (choose paint, wallpaper is less reliable, and it is not advisable to wash it), plastic windows, good office furniture, several plants. It’s good if there are certificates or diplomas hanging on the wall.

The equipment you will need is very little:

Computers;
Fax machine;
Telephones;
Scanner;
A printer;
Xerox;
Shelves and cabinets;
Safe;
Tables;
Armchairs.

Office equipment is relatively inexpensive for the company owner, but saving on equipment and repairs is not worth it. Remember, the first impression of you will be based on appearance office.

Law firm staff

A well-promoted law firm will never have a shortage of people willing to get a job, but a start-up law firm is unlikely to attract the attention of seasoned lawyers. It may be the case with young people who have recently graduated from college. How can a lawyer make money if he has neither a name nor work experience? If your company takes on the role of a springboard for budding specialists, it will provide a service not only to them, but also to the state.

You can find young workers by placing an ad on the Internet, on special websites, in the newspaper, and by directly negotiating with universities. Provide the best students with the opportunity to practice, write theses and after graduation he will find a job with you. To test their readiness, create an “entrance exam”. It is also necessary to provide for “working in pairs” under the guidance of an experienced lawyer.

In total, the composition of the team will be as follows:

Several experienced specialists;
Young lawyers;
Accountant;
Secretary (one or more);
Cleaner;
Security guard.

Security guards and janitors earn about $150, secretaries earn about $250, and lawyers can take a percentage of transactions as payment.

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Advertising campaign

Those wishing to start a legal business should place the main emphasis on advertising. Every company wants to attract customers, and advertising is the way to do this most effectively.

First, make yourself a website. The site must be designed in a strict style and contain prices and maximum information. Entrust this matter to programmers. Run advertisements on radio, television, the Internet, print out advertisements and stick them in the subway, on poles and on boards, make yourself business cards. Offer your services to large companies.

People who want to open a law firm are usually stereotyped as having to be lawyers. This is optional, just like with managers. The main thing in this matter is a tenacious grip and the ability to organize the process. Opening a company does not require any special expenses. This is an interesting, useful and profitable business in which you can earn income. The only real difficulty in this matter is finding good professionals. If students and beginners agree to work for not very high pay, then ready-made specialists know the value of their work. When the staff is recruited and the advertising campaign is launched, you can reap the fruits of your efforts. You will have to wait for the first clients, but if you show yourself well, then more visitors will flow in like a river.

Many people sometimes think - how to open a law firm.

Providing legal assistance to citizens and legal entities is a noble and at the same time profitable business. If you have the appropriate level of education, experience and managerial abilities, creating a decent law firm will not be difficult.

Announcement. Before you start reading: the site mylawsuit.ru plans to open a legal office at its base. Accordingly, why don't we join forces and come up with something? Attendance is about 500 people per day. You can organize remote legal consultation without investment. Write with suggestions by e-mail [email protected].

An important criterion for the “natural selection” of the future head of the company is an ardent love for the law and an understanding of the laws of its application. After all a necessary condition development of a law firm is the opportunity to devote all the time and effort to gaining clients and the prestige of the company, as well as to the development of the company.

Before starting your own business, you should make sure of your own competence and willingness to provide legal assistance. This is easy to do when working for someone else's company. Having worked in an already created structure, you will be able to determine how much you like, and most importantly - it turns out - to work as a lawyer, in addition, you will gain valuable experience and practical skills. Working as a lawyer for a firm will also help you learn the details of building a business, for example, the organization of document flow in a company, algorithms for working with clients, etc.

So, experience and knowledge have been gained, you are determined to open your own business in the legal field. Don't be intimidated by the large number of competitors, as the demand for quality legal services is always high. In addition, there are a number of niches, some of which are practically unoccupied and are in need of highly specialized specialists (tax law, medical law, intellectual rights, public-private partnership, etc.), and the other part of which, due to the enormous demand, is also cordial will take a new figure in the market (registration and liquidation of legal entities, protection of consumer rights, etc.).

If you are a highly specialized specialist in a sought-after area of law or are planning to attract one, this will be an undeniable advantage for the company. After all, in addition to general matters, your company will be able to solve complex individual problems, the successful solution of which will bring you new clients and have a positive impact on the company’s image.

When forming a team, the first initial stage Remember your alma mater comrades, since trusting relationships between colleagues in the legal environment are extremely important. Perhaps you will become co-founders of a company. At the start of work, two or three highly efficient lawyers will be enough. If you need to find and hire assistants, pay attention to senior law students or their graduates: as a rule, they take the assigned work responsibly, approach solving problems with enthusiasm, and are not picky about the amount of earnings.

Comment from the editor: at the initial stage there is one way to do it little by little and without large investments attract clients to a law firm: You can create a group in in social networks and give people free legal advice on simple issues, thereby building clientele and reputation. As a thank you, be sure to ask the people you helped to leave feedback on the consultation provided - this will also work in your favor. There are a significant number of such VKontakte groups, but they are still not enough to answer everyone. Thus, you can easily lure people from other communities. You can also buy ready-made applications for consultation on the Internet - they are inexpensive. But there is a risk of becoming the company described in

Now let's look at the estimated costs of opening a law firm.

First thing is registration legal entity or individual entrepreneur. Accordingly, this includes the cost of paying state fees, notary services, searching for a legal address and other registration costs. We described this procedure in more detail.

Then you need to locate the company office somewhere. However, you should not think that you cannot work without an office, and that the office should be located only in the central part of the city. Because for renting an office in the center, the fee is usually 2-5 times higher - unnecessary expenses at the opening stage. The main array of clients - individuals– will live in residential areas remote from the center, and corporate clients will have no difficulty getting to any area. In addition, the city center means traffic jams and a lack of parking spaces, which will also negatively affect the overall impression of cooperation.

Currently, more and more companies are completely refusing to rent offices, working from home or in a coworking center, and scheduling meetings on neutral territory.

The next category of expenses threatens you only if you choose office location. These are office equipment and stationery. Additionally, if the rental does not include furniture, you will need to purchase the required number of desks, desks, cabinets and safes.

Even at the opening stage, you can be puzzled by advertising: making business cards, placing advertisements in print and online media, developing a website, etc.

Let's summarize in the form of an estimate:

Fee for processing documents related to the legal address (from 15 thousand rubles);
Rent of a small office space (from 15 thousand rubles);
Ordering an advertising campaign to promote a company (from 10 thousand rubles);
Purchase of office equipment (phone, laptop, fax and MFP), all this will require (from 65 thousand rubles);
Fixed costs are: payment for utilities, communication services and the Internet (about 5 thousand rubles).

As you can see, the costs of starting a law firm are not critically high, and with high-quality services, they will quickly pay for themselves thanks to word of mouth. If you feel capable of dedicating 24 hours a day to law and solving other people’s legal problems, go for it!

Opening your own company is the desire of many experienced lawyers. But they ask questions: “How to open a law firm from scratch?” or “How to attract clients?” Despite a higher legal education and great zeal, for this you still need to have a certain knowledge of the fundamental rules, the observance of which will help you achieve your goal. How to start your own legal business from scratch?

Opening own business in the legal field entails many advantages, but, as in any business, unfortunately, one cannot do without disadvantages.

The following advantages should be noted in having your own business:

- Absence of the boss. You are the head of your own company, which means you are free to make your own decisions.
- Profitability will depend on you, the entrepreneur, earnings can be impressive or quite low.
- Flexible schedule. In the future, having hired staff, you will be able not to work at all, but only manage your employees.
- As the founder of the company, you will receive the greatest profit, unlike an ordinary employee.

Having your own business is prestigious.

Minuses:

Risk. If you choose the wrong business strategy, your business may fail, in which case financial problems cannot be avoided. Take this issue seriously.
At the starting stage, a lot of investment, effort and time will be required.
No matter how trivial it may sound, business is always stressful, be prepared for the fact that most likely not everything will work out with ease.

If the waste of effort and risk do not frighten you, then you can move on to those aspects that will reveal in detail the topic of how to open a legal consultation.

How to open a law firm from scratch - instructions

Registration, permits, documents

Let's take a closer look at the question of how to open a law firm from scratch. In order to open your own law firm, you do not need to receive the appropriate education; it can be opened by an individual or legal entity.

However, you must register with the appropriate government tax authority and choose a form of taxation in order to operate legally.

The company can be registered on Individual entrepreneur or as an LLC for several individuals.

It is better to design the taxation system according to the scheme “subtract expenses from income.” A convenient option is the simplified tax system with a rate of 15% - it is more profitable.

How to open a law firm with the necessary permits? The answer is quite simple. It turns out that, as the current legislation states, no special permits or licenses are required to open a private law firm.

The following documents will be required:

Passport, its photocopies.
Confirmation of payment of state duty.
Application for registration of an individual entrepreneur or LLC.
Selection of type of activity according to OKVED codes.

Important! As soon as you receive a certificate of registration, immediately begin developing a business strategy and promoting your company.

Selection of premises and equipment

An important task when opening a law firm is the choice of premises. The best option for the location of your office would be the city center, because the infrastructure is better there, and it will be more convenient for the client to get to and find you.

It would be nice if your office is located on the ground floor and on the street side, for the same reason listed above.

You also need to take care of the availability of the necessary equipment.

It is best to decorate the premises in the form of an office. To do this, you will need to purchase special furniture (chairs, tables, convenient lockers, etc.) and computer equipment (computer or laptop, printer, scanner, etc.), and you also need to take care of office supplies (paper, pencils, pens, etc. .).

Prepare for the fact that several clients may come to you at once; arrange items in the space for them as comfortable and convenient as possible.

Recruitment

For the first time, it is better to start the activity of a law firm together with a partner and not hire employees.

Over time, when the business rises and develops, you can think about hiring additional staff.

It is necessary to hire: three qualified workers who will work with all kinds of services; courier Financial questions can be solved with the help of a visiting accountant.

Attention! When recruiting your professional staff, you need to use labor exchanges, submit advertisements in newspapers and relevant Internet resources.

There will be many candidates, they can be both yesterday’s students and experienced professionals. Naturally, it will be preferable to use the services of the latter, but it’s up to you to decide.

As your business expands, you may need staff.

Approximate composition of a mid-level law firm:

highly qualified lawyer;
legal consultant;
lawyer working with individuals;
lawyer for working with legal entities;
legal assistant;
secretary assistant;
accountant.

Business process organization

How to promote a law firm? First of all, you need to decide on the specialization of the law firm, and also take care of the quality of the services provided.

To do this, you need to create your own corporate style, an appropriate image, and maintain a good reputation. All this will further determine the success of your business.

It is necessary to start with providing a small number of legal services, and as your business expands, increase the range of services provided.

After all, it will be very difficult both to open a law firm from scratch and to control it.

It is also necessary to identify the main audience of the clientele, and based on this, organize the work process.

For example, if you are going to provide services in solving business problems, then the best option would be to organize labor activity from 8:00–19:00, so that it is not difficult for the client to establish contact with you during his work day.

A good option would be if one employee from your staff works on duty on weekends at least until noon.

Business strategy

Organizing a law firm business plan, as well as opening a law firm from scratch, is not an easy task.

Research the market in this area in detail, study your competitors carefully, and identify their advantages and disadvantages. This will help you make fewer mistakes in organizing your business plan.

Develop an acceptable pricing policy, this is especially important at the initial stage.

Promising directions at the moment:

Legal support in the field of real estate and construction.
Support for migrants. For example, assistance in settling, obtaining citizenship, etc.
Control of financial and economic activities of companies.
Protests related to illegal activities of law enforcement agencies.

Search for clients

Aspects when looking for clients:

Use the Internet. First of all, take care of creating a company website, it is advisable to hire a specialist, fortunately there are enough of them on the Internet, so there should not be any problems with this.
Advertising can be placed on various websites and mobile applications.
Traditional methods of information dissemination. These are: leaflets, word of mouth, organization of exhibitions, seminars and conferences.
It would be a good idea to submit an advertisement in the newspaper, where you briefly tell about the services you provide, the location of the company, and prices.
Placing signs on the streets will also be effective; you can fork out for advertising on television.

Attention! For best result in search of clients you need to use the services qualified specialist- PR manager.

How can you guarantee that a lawyer will get clients?

The most difficult stage for all organizations is the start-up, and a law firm is no exception. Money invested in advertising and marketing may not always return as ready-made clients. Thus, money can be wasted. And when there are already few of them, this creates additional problems and increases the company’s expenses.

However, there is one solution that will ensure that the money invested generates ready customers. Currently, due to the globalization of the Internet, clients are looking for lawyers there. But how can you get clients without spending extra money? It’s very simple - for this there are special intermediary firms that can provide you with clients.

Attention! If you want to pay only for leads and don’t want to waste money, then you can start working with companies that provide lead generation. This is by no means the main source of clients, but it is a constant one. Especially useful at the initial stage. Click on the banner above and read the terms and conditions.

Costs and profits

Approximate start-up costs:

Expenses	When to pay	Amount, thousand rubles
Registration and acquisition of a legal address	At the initial stage	30,0
Furniture and equipment	At the initial stage	50-60
Communication and software costs	Monthly	40,0
Office rental, renovation (10-15 sq.m.)	Monthly	130,0
Salary per person	Monthly	30-40
Transport	Monthly	10,0
Office	At the initial stage	5,0

Profit will depend primarily on the number of clients and the quality of the services you provide.

The average cost of providing legal services in Moscow is:

oral consultation – 1000-2000 thousand rubles/hour;
written one-time consultation on legal issues– 3000 rub.;
registration of a person as an individual entrepreneur not including state registration. duties - 4500 rubles;
LLC registration without state duty – 1100 rubles;
writing a statement of claim – 9,000 rubles;
liquidation of a legal entity – 60,000 rubles;
representation of interests in court – 40,000 rubles.

Let’s say that in 30 days four of your employees served 20 clients, the approximate price of the service is 10 thousand rubles, if everything is organized correctly, then With the previously assigned range of services, we get the following numbers:

4*20*10000=800000 rubles

The tax amount is 20%, which means:

800000*0.2=116000 rubles

By simple calculations we find out the net profit:

800000.0 – 119000.0 – 315000.0= 369000.0 rub.

At the first stage, getting a large number of clients is a rare occurrence, but with the right approach, after a few months it becomes quite achievable.

As a result, in a successful scenario, payback is achieved in 1-3 months.

Opening your own law office is quite a risky business that requires a lot of effort, but with a skillful approach it can bring significant profits.