How To Start Your Own Law Firm

In the ever-evolving landscape of legal practice, more and more lawyers are venturing away from traditional law firms to set up their own practices. We sat down with three experienced lawyers who have made this bold move to explore the motivations, practicalities, challenges, and rewards involved in establishing their own legal practices.

Katie McCann, Founder and Director of Lowry Legal, a boutique family law firm, Richard Preston, Founder of Preston Law, a dispute resolution practice, and Jo Losty, COO of Excello Law, who merged her corporate legal practice as a sole trader into Excello in 2009, share their insights and experiences. They shared their answers to FAQs about how to start your own law firm.

What are the options for setting up a law firm?

Jo: Traditionally, setting up as a sole practitioner with SRA authorisation was the norm. However, the isolation and administrative burden prompted me to merge my practice into Excello in 2009. At Excello, lawyers with entrepreneurial vision can establish their brand and focus on legal work and business development, leveraging the support network for administrative tasks and compliance, without compromising client service.

What motivated you to start your own law firm?

Katie: As a barrister by trade, I was with Knights when lockdown began. The experience was enlightening because all work came directly to me, boosting my self-confidence. I realised I didn’t need someone else to provide work. I had always aspired to establish my own firm, feeling the constraints of being a barrister and dealing with regulatory issues. That’s when I decided to found Lowry Legal and connected with Jo at Excello. My primary motivation was the desire for freedom and, having been self-employed in chambers, I craved autonomy. Large corporate firms didn’t align with my vision; I wanted to chart my own path, driven by my entrepreneurial spirit.

Richard: The ambition to run my own firm had always been there. I initiated Preston Law as a fee-share partner around the start of lockdown in April 2020. It felt refreshing, distinct from my 18 years in private practice, which though enjoyable, became stifling due to internal politics and partnership dynamics. Joining Excello as a fee share partner initially provided a breath of fresh air, yet I aspired to build my own practice, influenced by the achievements of individuals like Katie.

How did you approach setting up your firm?

Katie: Catering to high-net-worth clients necessitated a completely professional setup plus an office and wider network, rather than working solo. I couldn’t operate as a one-man band in my bedroom! Collaborating with Excello simplified the process; they handled compliance, HR, finance, and other administrative tasks, freeing me to focus on clients and business development. The logistical transition of files was seamless, with Excello’s 360 Team managing client communication.

Richard: I was already at Excello as a fee-share partner so I already had a following and ran my practice independently. The next step was to build my practice, my brand and to establish the team. Discussing my plan with Excello, they offered invaluable support. While I enjoy autonomy in building my practice, I benefit from the structured team environment and administrative assistance. Additionally, being part of the Excello network facilitates collaboration and referrals. I’m a litigator but having employment and corporate lawyers to refer work to enhances my practice’s scope and capabilities.

What do lawyers wanting to set up their own legal practice need to consider when starting their firms?

Richard: For me, I had concerns about the business of law particularly regarding managing compliance, regulation, and accounts. These are essential tasks when running your own firm, but I had to consider whether I could handle them while also servicing clients and focusing on business development. I also worried about feeling isolated; I imagined it would be lonely and isolating. However,

Katie: Initially, maintaining a professional environment for high-net-worth clients was a concern so I had to ensure that I would have a nice office in which to meet clients. As the firm started to grow, I needed how still need help obviously every day with HR issues. Then I wondered – how am I going to manage my cash flow? The invoicing and billing, credit control? How do you manage complaints? So in the family law world, unfortunately, it’s one of those areas where because we ask for people in times of distress, there are there are complaints and there are issues that arise.

How did you overcome these concerns?

Richard: Doing everything alone as a new SRA-regulated firm would have been incredibly daunting. Now that I have my own legal practice, my days are filled with client work and business development. My goal is to build a team in the coming years, which comes with its own set of challenges. Thanks to Excello, I can focus on these tasks without worrying about compliance and HR functions. With the support of Excello’s 360 team, I can delegate administrative and regulatory tasks, allowing me to concentrate on essential aspects of growing the business.

 Katie: We would be completely lost without our collaboration with Excello. Honestly, it’s the best decision I’ve made for my firm. They helped me to find and set up my own office in Manchester and we regularly use the London office too. Even though challenges persist, having experienced support available makes a huge difference. Thanks to our partnership with Excello, we’ve been able to grow at a remarkable rate. Lowry Legal has expanded from one to seven employees in just under three years.

What challenges or obstacles, if any, did you have to overcome when you were starting your law firm from the outset?

Katie: Being in a team of people in a corporate firm, you think you do some management there, but you absolutely don’t, until you start your own firm. I think you must be aware as well, one of the personality traits of many lawyers is trying to be perfect all the time. You’ve got to allow yourself not to be perfect, to make those mistakes because that’s the only way that you can learn, grow, and develop your business

Richard: For me, the leap from being employed in a traditional law firm to being self-employed at Excello was a bigger jump for me. One big challenge for me is recruitment and building and growing my team. I’m finding that challenging, and now you’ve got to pay people other than yourself and manage that cash flow. With Excello’s support, if those are your ambitions and dreams, it’s more than achievable.

What would you say are the attributes of a lawyer that this could really work for?

Katie: You’ve got to really want to do it and it must be an idea that fills you with excitement! You’ve got to be hardworking, able to be agile, and roll with the punches. For me, it’s about creating something that lives, breathes, and grows autonomously. It’s about the journey of crafting that, evolving as a person, and the impact I make on others while nurturing its growth. If things go well and the journey unfolds as you want it to, the success and money will follow.

Richard: You need to be ambitious and resilient. Despite the challenges, like any business, success is achievable through hard work and dedication.

Do you think there’s any type of person or type of practice area that works better for having your own branded practice?

Jo: I think it works well for boutique brands or specialisms. Obviously, Katie with family work that she’s doing, and Richard with insolvency. Those specialisms and expertise enable them to stand out from a marketing perspective and promote that unique area of expertise. It makes it easier to carve out that niche in the market and build from there.

What do you think is the key to successful marketing and subsequent business development and building up a client base?

Katie: I believe that for anyone venturing into entrepreneurship, particularly in a niche market like ours, showcasing your identity and reaching a broad audience is paramount, given the competitive landscape. I have prioritised establishing a strong digital presence, which involves developing a website and collaborating with website developers and a PR company. It required careful consideration, along with ongoing efforts to expand my network. One pivotal decision that has proven successful for us was making a bold statement with our brand right from the start. We aimed to clearly define who we are, what we stand for, and establish a notable presence in the market to assert ourselves as serious contenders.

Richard: For me, networking remains an ongoing priority. It’s crucial to actively expand your network and amplify your presence. Personally, I focus on nurturing my connections, attending events, and leveraging technology, particularly platforms like LinkedIn. Networking within Excello has been a revelation for me. Collaborating across different legal domains, particularly in boutique dispute resolution and insolvency, has proven mutually beneficial. I’ve found a significant portion of my opportunities stem from internal referrals within the vibrant Excello network.

What would be the process in joining Excello Law and setting up your pwn legal practice?

Jo: It all starts with a conversation, getting to understand more about you and what you’re looking to achieve. We discuss your business plans and chart the path forward, exploring which route aligns best with your objectives. Whether through our branded routes or as fee-share partners, we invite lawyers to join us, subject to insurer approval. Once consensus is reached, and if branding is on the agenda, we transition into the planning phase. Here, we meticulously craft a business plan with defined milestones and timelines, collaborating closely with you and our team to ensure a seamless transition.

How did you overcome your fear about starting your own legal practice?

Jo: We have set up many legal practices with lawyers under our Excello Law’s House of Brands. Let’s begin with a conversation to understand your challenges and aspirations. We delve into your motivations for setting up your firm and explore all available alternatives. Regarding solicitors employed in smaller firms, restrictive covenants often limit their ability to establish independent practices. However, Excello Law can provide assistance when needed.

Richard: Most lawyers are subject to restrictive covenants in their contracts. In my experience, open dialogue with my former firm was a positive step. They were actually friendly and supportive.

Jo: The starting point is to seek advice on the enforceability and scope of these covenants. While some firms adopt a stringent stance, past precedents can offer insights into navigating this situation effectively.

How many years PQE should you be before starting your own legal practice?

Richard: Those lawyers who do well at this have a lot of experience having served as partners in law firms and gained proficiency in management. Those are important skills you need when thinking about doing this. I don’t think I could have conceived doing it early on in my career.

Jo: Our approach is a lot higher on the PQE level. We are looking for lawyers who have gathered experience over several years, because it is challenging to be doing this early in your career. You need to be able to generate your own revenue streams, and that typically comes with experience.

Do you think we should focus on our specialisation or is it best to go more generalist?

Richard: My advice would be ‘sticking to the knitting’. I wouldn’t push corporate, property, or family work. I do dispute resolution with insolvency and I wouldn’t dream of trying to broaden out into other areas.

Katie: I agree. Specialising in one area is important as it allows you to deepen your expertise. As our team has expanded to seven lawyers, we’ve broadened our coverage, handling a wider array of family disputes and mediation cases across the UK.

What is your advice to lawyers considering starting their own firm?

Katie: Don’t let the fear of imperfection hold you back. Understand that mistakes are inevitable on this journey, but they’re also opportunities for growth. Be compassionate with yourself as you navigate the transition from lawyer to business owner. Remember, leadership requires a different skill set from simply being a boss; it’s something you’ll learn along the way.

Richard: Additionally, keep your eye on the bigger picture. Despite the inevitable challenges you’ll face, remember why you’re embarking on this journey in the first place. The dream of autonomy and independence outweighs the obstacles. Challenges will arise, but they are surmountable. Stay focused on your vision and persevere through the tough times. Ultimately, the rewards of self-employment far outweigh the challenges.

Jo: You need to really want this, it isn’t the easy route. You need to have a vision and a plan and you need to make sure it is the right route. We are so lucky that there are so many options for careers for lawyers now, outside the traditional partnership path.

If you have the drive and ambition to venture into starting your own branded legal practice, we’re here to help you turn your dreams into reality. At Excello Law, we offer tailored solutions to suit your ambitions. Find out more here or contact us to discuss whether this path is right for you and take the first step towards building the practice you’ve always envisioned.