Understanding the business of law

Olusola Akinyemi, a researcher, author, negotiator and international development expert, shares his experience on setting up a law practice. Akinyemi, who is the principal counsel at Classicus Solicitors and a Mara Mentor, believes that lawyers also need the entrepreneurship spirit.

I had often overheard senior colleagues talk about friends who had the courage to start a private practice. From the way they spoke, I always found it exciting. This was 2010. I was in Ibadan serving in a law firm as a new wig. Some of my peers were also excited about the idea. They literally looked forward to private practice. We thought our seniors were right – after all, having spent so much time, energy and resources acquiring legal knowledge, one should expect a better return on investment. Fast forward to 2016, what I have discovered is that there is more to running a successful law practice than an entitled attitude. Thus, I will attempt to explain five salient points every young legal practitioner, who desires to own a law firm, should note.

COMPETENCE

A law degree exposes one to the substantive, while the law school prepares one for procedures in the practice of law. Though after law school a lawyer can establish his own law firm, it is important to have some tutelage in an established law firm with large clientele and files to learn and gain exposure from. The way to start this is to identify an area of interest – corporate, property, maritime, criminal, IT, media, litigation. Any of these could be of interest to you. Serving the best interest of clients is essential. It requires the highest level of competence. A lack of this can cost the client so much, and make the lawyer liable for professional negligence.

LOCATION/BRANDING

Where to set up a law firm is usually the first concern. If resources are available, it is better to have a proper office space outside your home. Having a makeshift space, where one can also receive correspondence and hold meetings, is also a decent option. If the two are not available, you can start from home. What is imperative is registering the law firm, having a complementary card and letterhead. Mundane as it might seem, it is also important to have a personal computer and printer as is it is not proper to have details of clients’ briefs in business centres. This leaves room for a possible breach in confidentiality.

CLIENTELE

This is perhaps the most important of all. It takes clients to run a law firm. Usually the first set of clients is family members, friends, and members of same faith, associations and clubs. Serving these people efficiently brings referrals. For lawyers with interest in specific areas like media or IT, identifying where potential clients are and getting them to know you are vital. Here, thought leadership could help boost perception. And this could be easily done via publishing articles or research papers online and on other media platforms.

PRICING

There seems to be a standard pricing in some nature of briefs e.g. land transactions, recovery of debt, preparation of contract agreement and the likes. It is usually 10 percent. However, your negotiation skills come in handy when navigating pricing. Some people pay; so one must be firm but courteous in demanding adequate payment for legal services. Sticking to the practice of percentage is arguably unrealistic, especially for start-ups. But you must remember: Compromise or discount may be necessary in some instances. While it is a personal duty to value your practice, negotiating with this rule of pricing can be helpful. Lawyers must know how to negotiate.

MANAGEMENT

It is one thing to have legal knowledge, it is completely another to be able to manage your business. Lawyers also need the entrepreneurship spirit. This is what guarantees the success of your shop (as my seniors called it in those days). Setting up an office, managing staff (legal and non-legal), managing income and expenses, distinguishing priorities from necessities are all important parts of running a law firm. Reading books and attending entrepreneurship trainings are two ways to acquire this skill. Perhaps, talking to senior colleagues might be another. But you owe it to yourself to acquire management skills that will complement your legal dexterity.

For folks still working with senior lawyers, planning an exit strategy is the first way to go. Get clients, buy more clothes, get computers/laptop with Internet and printer, and get stationeries. Finally, be patient and persistent as you watch your practice grow. I wish you great success!

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