But as the recent history of
The impetus to leave a law firm might be strong (many managing partners at independent law firms cite their disillusionment with or dislike of working as a cog in the wheel at the global firms as a major push factor behind their decision) but the foundations of a new legal venture must be just as strong. Having an idea of what kind of firm you want to create is a good place to start.
“It is essential to know each other well and to have a shared vision,” says Jasper Stek, name partner of Dutch independent Stek, which was established at the beginning of 2005. Stek started with five founding partners, all of whom had worked for Dutch giant Nauta-Dutilh before going their own ways — some going in-house, others working in industry. Stek and several colleagues had worked at Nauta’s
“We liked our time there and saw that you can do interesting work without being in a large office,” he says. “So we thought ‘why don’t we try and do what we were doing there, in our own law firm?’”
The name game
Tied to the need to be visionary, finding the right name for the new firm can take up just as much time. Some opt to use the surnames of lawyers who already have a following in the market, others opt for a word that has no connection with the individuals at the firm — for example,
Once the firm’s vision is clear and its name agreed on, the practice’s selling points should begin to fall into place. Establishing the brand will take time, so the quality of the individuals has to attract the first clients through the door. Alex Holtum, director of consultancy International Law Firm Solutions, sums up the most important selling points for a start-up: “Credentials, credentials, credentials. The first thing any firm needs to succeed, is the credentials to build on what you have done and who you have done it with.”
As seen just last month, the more high-profile — and usually more successful — new firms are those that break away from big names.
be difficult.
Many independent firms sell their experience of having worked with the big, international firms as a guarantee of the quality of the work they will deliver while focusing on the more personal touch offered when instructing a small law firm; fewer lawyers are involved in deals, making for a more direct approach to working with clients. While lower rates are not the chief selling point for independent law firms, this certainly helps. “We are not prize-fighters — our rates are lower,” Stek says.
Marketing is a must
Olivier Sciales, name partner at Luxembourg firm Chevalier & Sciales, says he and fellow founding partner Remi Chevalier have invested a lot of time in marketing visits — Shanghai and Hong Kong being their most recent destinations. Last month, the partners visited
For an independent firm in
As Akerman points out, making contact with
In a small market like
do not mind working with new law firms,” he argues.
Part and parcel of getting the marketing right is a firm’s website. While differentiating a firm’s lawyers and quality of advice from the competition, sticking to the familiar template that the top names use is sound advice. Lydian relaunched its website to coincide with the name change in September this year. The result is a slick, clean-looking website that ticks the box of, as Alex Holtum puts it, “looking like you play in the international arena”. Lydian managing partner Vandenbergen says the firm sought client feedback on the website in addition to seeking the advice of consultants. Opinions from former colleagues and lawyers at other firms have, he says, also been positive.
Jasper Stek says his team of partners put a lot of time distinguishing their house style and building their website, with the help of a designer. Getting the marketing right is not just about attracting clients — prospective employers often go to a firm’s website as their first port of call.
Stek recently won a national award as the ‘most successful new law firm’ two years after setting up the firm. “Winning gave us a lot of publicity and helps with credibility, with both clients and prospective employees,” he says.
In today’s tough recruitment market, where independent firms are competing for the same talent as the internationals, making the firm an interesting employer is vital. In Belgium, Vandenbergen says he has had approaches from lawyers looking to set up a new practice in a growing firm — they are attracted by the opportunity to be more entrepreneurial in starting up a new team, an opportunity that rarely arises at global firms.
While winning awards is something law firms do not have much control over, ensuring the firm features in the many legal directories out there is slightly easier. Some firms set out to secure a listing as a priority, others less so. Aku Sorainen, founding partner of 12-year-old pan-Baltic firm Sorainen, says he was approached by the directories. “It is important to get listed in them, but we did not proactively seek a listing — they came to us when we had been up and running for a while,” he explains. Stek agrees that listing in the directories was not a priority for his firm at the outset, but when a sixth partner joined Stek from Allen & Overy in
For law firms operating in smaller jurisdictions where
This is where the global firms have a major advantage over independents: they can afford to dedicate armies of marketing and business development staff to compiling their directory submissions, honing them to perfection. Smaller, independent firms do not have this luxury.
“Being listed in the directories is not something that will win you work, but if you do not get it right, you may lose work,” says Holtum, who advises independent firms on their directory submissions. The wait to secure a recommendation does not have to be a long one if the individuals within the new firm have a following.
“You can go straight into the rankings if the individuals have the right reputation,” he adds.
Back office, front of mind
Last but not least, start-ups should not shy away from investing in the IT and knowledge management systems expected of a law firm. While the initial outlay may be huge — small firms often suffer from their inability to bulk-purchase software and information from the big legal publishers — starting out with the right systems is a lot easier than trying to reorganise it several months in. “It is vital to have the practical things, such as a library and know-how systems, from the outset. Don’t skimp on these things,” advises Stek.
Aku Sorainen, whose law firm expanded from an initial office in
Measure for measure
Founding partners are unanimous that goals must be set at the beginning in order to measure success. Most start-ups will bring clients to the table from the outset, but there is no substitute for having a series of realistic targets to achieve, in the form of a client wish-list, bills paid and so on.
Lydian’s Vandenbergen advises new firms to focus on profitability rather than turnover — many firms make the mistake of growing very fast early on by focusing on numbers rather than profits and could consequently be storing up trouble for themselves in the future. Vandenbergen says Lydian’s decision to appoint a chief operating officer early on has paid rich dividends. Patrick Franssens joined from Linklaters, where he saw the change from the firm being a local outfit to part of a magic circle firm. “He helped us grow into the firm we are today,” says Vandenburg. “It is crucial to have a non-lawyer in a senior position like this, to offer a different perspective and, crucially, free up the managing partner to be a lawyer.”
Sorainen says focusing on the quality of work, the quality of associates, marketing and the law firm’s systems are the four keys to success.
And to return to the issue of managing lawyers, the founding partners must be honest with themselves about whether they have the people-management skills, as well as the entrepreneurial flair, to succeed. Few lawyers have this blend of skills, but for those that do, the opportunities to make money from the law and be your own boss are ripe for the picking.ILFIENov2007
