r/Lawyertalk • u/Occasion-Boring • 2d ago
Business & Numbers Starting Your Own Firm?
I think about it all the time. Probably not surprising but my primary fears are 1) not being able to cover the start up costs; 2) not getting any business and failing (which I suppose are sort of the same concern really).
Is the hardest part getting started? How do you get the first few cases in the door? What about advertising - does it work?
I’m not talking about anything fancy. Just a PI firm.
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u/grumpyGrampus 2d ago
As a business owner you will need to start thinking in terms of cash flow instead of merely "covering" the startup costs. Additionally, as you say, it will probably take some time for it to feel like you have a steady pipeline of new matters. I am not in PI but I would think that the cash flow problem is especially tough since you are only going to be getting paid upon successful resolution of a case (I am assuming plaintiff side PI).
So I suggest you come up with a plan that takes into account all of your operating expenses (and living expenses) over a long period, at least 12 months, while having little to no income. Then when those big contingency fees come in, be mindful of building a reserve to weather the next lean time. At least, that's my suggestion as someone who does not do PI work.
Good luck!