Difficulties That Attorneys Face In Setting Up A Law Firm6227354

Unfortunately, there are a number of factors that would make it difficult for an attorney to set up his own law firm. As a result, many attorneys choose the easier option, which is to be an employee as they work for others. Many young lawyers become lowly-paid employees when they could actually set up their own firm and earn more. Clearly, it is not easy for attorneys to set up their own firms: otherwise many would have done so. There are things that would get in the way of these lawyers starting their own law firms. That is what this article is meant to discuss further: the stumbling blocks the lawyers face.

Lack of capital is the first thing that an attorney would have to face when he plans to set up his own law firm. You have to have money in order to set up a law firm. Even those small town firms cost substantial sums of money to set up. For one, as a matter of tradition, legal offices are always expected to be in 'respectable' addresses. Renting office space in such 'addresses' can be hard for someone who doesn't have much money. Your office should also have its own staff in the form of legal secretaries and clerks. These cost money. The attorney should set aside enough money that will cover rental payments and salary payments for several months.

That is because it can take a substantial amount of time before a new firm starts attracting clients. So you would need quite a large capital investment when you start your own firm. Many attorneys can't afford them, and they are therefore forced to continue working 'for others' even when they'd prefer to have their own firms. Another factor that can make it hard for an attorney to set up his own law firm is the rather complicated nature of the legal services industry's workings. The complexities of the legal services industry is hard to break through, considering there are strong fraternities in place already.

Simply put, the 'big boys' tend to end up taking all lucrative cases (and many of the smaller ones as well). The new lawyers are still starting out, and they would have a hard time trying to establish themselves because they do not have enough draw or reputation to attract even the smaller clients. Before the clients start coming in, the new lawyer should invest a lot of time and effort in building his name and reputation up. Many new attorneys decide not to push through with their own law firm because they are daunted by this side of the business. Even those who have more than enough capital buckle down because of this.

Yet another factor that can make it hard for an attorney to set up his own firm is lack of confidence. When you set up a law firm, you are setting up a business enterprise. Risks are part of it, and they are quite huge too. Many law firms have closed down because of the inability to attract enough clients to sustain business. The owners then move on to work for others. Many lawyers think that this is an embarrassment that they can do without. That is why they simply decide not to set up their own firms, even if they have enough capital or they are already known in legal circles.

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