Despite the huge number of private offices and large companies providing legal support, your own law firm remains a promising business. Such a firm can be opened independently or buy a franchise. Below we present a ready-made business plan of a law firm with calculations.
Business relevance
Russian legislation changes frequently, and it can be difficult for a non-specialist to understand all the intricacies. This is where legal specialists come to the rescue, and the demand for them continues to grow, but we still have a long way to go before the demand for lawyers in the West (where almost everyone has their own lawyer). Therefore, the market has room to grow.
There are now more than 100,000 law firms of various profiles operating in Russia. But competition in this field is very high, because there are also many graduates with law school diplomas. Only a few specialists earn good money in this field. According to statistics, more than a third of law firms in Russia have revenues of between 150,000 and 1 million roubles, and 28% earn between 2 million and 5 million.
This business is most relevant in large cities with a population of half a million or more.
The key to success for a law firm is its reputation. If you are client-oriented, have good business ethics, and employ professionals, the company has every chance of success.
Types and specialization of law firms
Despite the huge number of law offices and agencies, it can be difficult to find quality legal support. Many people strive to open a luxurious office, not realizing that this is only the external side of things. It is much more important to immediately determine what services the firm will provide. It is better to choose a specialization - for example, representing the interests of the military, sailors, providing advice and conducting cases in the field of property relations, protection of clients in criminal cases.
To choose a direction, consider your own specialization and the specifics of the region where you will be working. Monitor your competitors to see what existing law firms are doing.
Today, tax, family, and corporate and employment law are in demand.
The list of the most demanded legal services is as follows:
- criminal cases;
- consulting in the field of tax law;
- corporate law;
- legal expertise;
- development of shareholder agreements, contracts;
- support of equity transactions;
- registration and liquidation of business entities;
- support of bankruptcy processes;
- consulting and legal support in the field of business activities.
Companies can be categorized into three types based on scale:
- Large companies with wide specialization, division into departments and staff of several dozen people.
- Companies with narrow specialization.
- VIP-segment companies with an expensive price tag, usually employing less than 10 people.
Law firms can work with businesses and individuals.
Any individual can become a client of a private lawyer in a particular life situation, and these situations can be very different (divorce and division of property, illegal dismissal, accusation of a crime, etc.) Legal entities often order services under an outsourcing contract.
Step-by-step algorithm for launching a law firm
- Market analysis, preparation of a business plan.
- Registration.
- Office Search.
- Recruitment.
- Renovation, office furnishings.
- Promotion, advertising.
Registration peculiarities
It is possible to incorporate a company yourself or to engage a specialized organization to do so. The cost of services is from 10,000 roubles.
The optimal scheme of registration of a law firm looks like this:
- Organizational form of ownership - LLC or sole proprietorship. If your clients are legal entities, it is better to choose an LLC.
- Taxation system - simplified with a tax rate of 15% under the scheme "income minus expenses".
- OKVED - 74.11 - activities in the field of law.
A sample application to the tax authorities for assignment of the status of a legal entity and a list of required documents can be found on the official website of the tax service.
You don't need to get a license.
Room
For the office you need a spacious room of 50 square meters or more.
There should be a reception area, a lawyers' and director's office, a meeting room, and a bathroom.
Ideal option - business center or any premises in the central or business part of the city. Good transportation accessibility is important.
The office design should be unobtrusive, in neutral tones.
Equipment
The office needs furniture, equipment and stationery. Each workplace needs to be equipped with a desk, chair, laptop. You also need cabinets, shelves, a safe, a printer-scanner-copier.
Air conditioning or split system, refrigerator and coffee machine, water cooler are very desirable. For clients - sofa, chairs, coffee tables, small TV in the reception area.
Recruitment
An average firm employs 3-5 lawyers - generalists or specialists in their field of law. You also need a secretary, a cleaner, and an accountant. Another useful staff unit is sales managerResponsible for finding clients - cold calls, meetings, negotiations, etc.
Lawyers must have a specialized education, work experience, outlook and general competence are desirable. In addition to a diploma and knowledge in their field of law, they are required to be communicative and stress-resistant.
The owner of a law firm does not have to be a certified lawyer himself. He may well be engaged in general management. But more often than not, it is lawyers who open such a business.
Financial costs of organization
A law firm does not require significant costs. The start-up capital will be used for the following needs:
- Office rent 20,000-150,000 per month. Everything here depends on the area of the premises and its location.
- Renovation of the premises. It is preferable to rent an office that is already ready to work, then the cost of repairs will be 10,000-50,000 roubles.
- Furniture purchase - 50,000-350,000.
- Office equipment 60,000-180,000.
- Advertising campaign - 10,000-100,000. A start-up law firm needs an active, powerful start. An excellent PR-approach will be the organization of a call-center, where 2-3 specialists will provide free advice to callers, turning them into potential clients.
- Website creation - average price 50,000 rubles.
Total organization of a legal agency will require 200 000-880 000 rubles. At the same time, you can save on renting premises by visiting clients or renting conference rooms or offices for short periods of time.
The main monthly expenses are lawyers' salaries and rent, as well as advertising. Even if you have 2-3 people working for you, and rent is inexpensive, it will cost at least 120,000 roubles a month.
The main value of the company is its specialists. It is they who ensure the success of the company.
You can download a detailed business plan for a law office from our partners. The quality of calculations is guaranteed!
Business payback
Subject to competent organization of the case to recoup the investment can be already in 6-12 - it is realistic in the presence of 5-10 clients per month with an average check of 50 000 rubles.
The professional work of lawyers is expensive, so you should not skimp on legal fees. Otherwise, motivated specialists will leave and mediocre performers will take their place. It also makes sense to motivate staff with bonuses. A law firm lives mainly on its reputation, which money cannot buy.
Promotion and advertising of a law firm
Use all channels of promotion. Word of mouth is the most effective - lawyers are often recommended by someone else. Use your connections and ask your lawyers to let all your family, friends and former clients know that they now work for you. You can also use:
- Publications in the media. In the long term, a blog will give a good return.
- Participation in exhibitions and other events, distribution of business cards.
- Promotion of the site and group in social networks.
- Networking with officials with arrangements to promote your firm's services.
- Free online consultations on legal portals with the ability to then sell paid services.
- Bonuses, discounts for old customers.
For successful hiring of professionals, we recommend the article "Algorithm for conducting a proper job interview".
Legal business can be very profitable, despite the abundance of competitors. If a firm has a good reputation, sooner or later it will be visited by profitable clients, and the company's turnover will increase.
Lastly, we recommend watching a useful video on the topic:
Recommended reading:
- How to choose a name for a company
- How to take a loan for business
- Business plan of a holiday agencyWhere to start creating a business plan for a lawyer?What costs need to be included in a lawyer's business plan?How do you identify the target audience for a legal business?
English 
Russian