Owning your own law practice is basically every lawyer or attorney’s dream – right? We get out of law school and immediately want to open our own law firm. Sometimes things don’t work out that way but sometimes they do. If you make the right choices, smart decisions and execute your ideas properly, owning your own law firm is possible for all lawyers and attorneys. No matter what age, how long you have been practicing law or what law school you attended, opening your own law practice takes determination. Money is often tight for start ups so the Firmhacker team have come up with 4 Money Tips For Your StartUp.
1. Never Mix Business and Pleasure
You thought you would never hear this saying in a money context but you heard it here first. Many business owners are guilty of this and it can sometimes be there downfall. “I’ll just borrow money from here for my new car / purse / renovations / holiday and give it back to the business later”. Don’t mix business and pleasure! Keep your business finances separate to your personal finances. It is a cardinal rule for startup success. Save those habits when your startup is established and bringing in the cash.
2. Be Frugal
Shop around for the best deal and never take no for an answer. We understand that every business owner is trying to succeed but when you are starting up, you can’t afford to spend all your money. One business owner I once worked for ALWAYS added 30% “fat” into his budget for some room to jiggle. He also said that EVERY business owner does that and if they say they can’t bring the price down, they are pulling your leg. Always negotiate.
3. Set Realistic Financial Goals
When I was young I was going to own my first house by 21 and invest in property after that. Things don’t always work out like that and it sucks to be disappointed. Always set REALISTIC financial goals and expectations for your startup. Key word: realistic! If you set a high financial expectation within your first year and don’t meet it, you will probably have low morale and struggle to keeping going.
4. Emergency Fund
The most important words you will ever see as a startup. Create an emergency fund. Even if things are going well, the cash is flowing and the clients are piling up – set aside money and put it into your emergency fund. Do not touch this emergency fund unless it is an actual emergency.
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