Setting up shop how to start up a small law firm · 2017-03-15 ·...
Transcript of Setting up shop how to start up a small law firm · 2017-03-15 ·...
Setting up shop – how to start
up a small law firm
Thursday 9 March 2017
Law Society Family Section &
Small Firms Division 09.03.17
Setting up shop – how to start up a small law
firm
Law Society Family Section &
Small Firms Division 09.03.17
Tony Roe, principal & family law arbitrator,
Tony Roe Solicitors, Divorce & Family Lawyers, Berkshire
Some tips...
• Buy and read “Setting Up and Managing a Legal Practice” (4th
edition) Martin Smith published by The Law Society.
• Prepare and plan. Research & write a business plan. Review it.
• Think about how you will finance the firm.
• Get a good accountant.
• Get a good book keeper.
Some more tips...
• Register your firm. SRA: sole practitioner - firm number on your
letterhead, fax headers, e mails & website.
• Research & shop around as much as possible for PII.
• Remember to register with the Information Commissioner’s
Office.
• Get advice about any office. Remember location is as important
with commercial property as it is with the domestic variety.
• Watch cashflow.
Useful website links
• “Setting up shop: building a new family practice”, Tony Roe.
• (Law Society Gazette):
http://www.lawgazette.co.uk/features/setting-shop-building-a-
new-family-practice
• “Starting a law firm from scratch”, Tony Roe.
• (Law Society Gazette): http://www.lawgazette.co.uk/in-
business/starting-a-law-firm-scratch
www.tonyroesolicitors.com
@tonyroedivorce
Robin Charrot
• Solicitor, director & co-founder – Evolve Family Law
@robincharrot
07969 211 544
www.evolvefamilylaw.co.uk
Why on earth do you want to start
your own law firm?
• Control
• Freedom / flexibility
• Being a lawyer!
• Lawyers are not headed for extinction, but traditional law
firms might be…
The pre-requisites
• A business partner you know and trust
• Time
• Money
• Good network of clients and contacts
• Sound business plan
• Appetite for hard work and long hours
Your regulator
• We chose the Bar Standards Board:
– Right type of firm for them
– Speed
– Cost
– Personal interaction
– User friendly handbook
– Bar Mutual PII
– No client account (escrow account and fixed fees instead)
What else do you need to think
about?
• Corporate structure
• Strapline
• Premises
• Practice Management
system
• Office equipment
• Compliance and risk*
• Website*
• Banking
• Name
• Logo and colour scheme
• Employees
• Consultants
• Tax, payroll, book-
keeping*
• IT support*
• Other insurance
• Telephony*outsourced
Top priorities after authorisation
• Keep your clients happy
• Cashflow
• Cashflow
• Cashflow
• Have fun
Director, Infolegal Limited
• The regulatory context
• The application process
Bronwen Still
Authorisation – the basics
Regulatory context
• Practice Framework Rules – eligibility
– Rule 13 – recognised body
– Rule 14 – licensed body
• Authorisation Rules – requirements for authorisation
– Rule 8
• must ensure compliance and have arrangements in place
to do so;
• COLP/COFA – in place and approved;
• ABS – non-lawyer managers and owners approved
• Code of Conduct
• Documents to be submitted -
– Application forms (downloadable from SRA’s website) -
• FA1: applicant firm form
• FA2: individual’s form for those needing approval
– Business plan incl. financial projections, management
arrangements, CVs etc.
– Company/LLP docs (memo and arts,
shareholders/members agreement)
– Offer of insurance from participating insurer
– Application fee
Application Process
• FA1 –– basics about the firm
– estimated turnover
– role holders – are they deemed approved?
– separate businesses
– sources of funding
– areas of work
– insurance arrangements
– client money – will it be held?
– ABS specific questions
• FA2 –– Suitability questions
– COLP/COFA
The Forms – information needed
• Initial due diligence
• Risk analysis – what the SRA is likely to focus on
– confidentiality (high risk – home working, serviced
offices, virtual offices, IT security)
– referral fees – (LASPO compliance, disclosure of fee
sharing/referral fees)
– separate businesses – (will clients be referred, what will
they be told about the different regulatory protections
– Sole practice/small firms – continuity plans if key
person incapacitated etc
– COLP/COFA suitability
After Submission – SRA approach
Other issues
• Timescales
• Fees
• Office manual/compliance documents
www.infolegal.co.uk
Charles Hawtin
Underwriter, Chancery Pii
• SRA PII requirements
• How to apply for a PII quote
• SRA PII requirements
– Minimum Terms and Conditions
– “Participating Insurer”
– Statutory Minimum
• £2M
– Sole Practitioners
– Partnerships
• £3M
– Limited Companies (AKA Relevant Recognised Bodies)
– Limited Liability Partnerships
– Legal Disciplinary Practices
– Alternative Business Structures
• Insurer PII requirements
– Proposal form – Insurance Risk• Estimate of fee income for Y1
• Estimate of work split for Y1
• Risk Management
• Etc.
– Business plan – Business Risk• Executive summary
• Business description
• Market analysis
• Marketing / Sales strategy
• Organisation and personnel
• Financial data
• Regulatory compliance
• Insurer PII requirements (cont.)
– Cash flow forecast – Financial Risk• Cash on hand (beginning of month)
• Cash receipts
• Total cash available
• Cash Paid out
• Cash on hand (end of month)
• Balance = PROFIT?
– CV(s) of partners and main fee earners – Experience• Experience in Law (PQE)
• Experience in business management
• Experience in related sector?
• For further details, see the “New Law Firm Guide”
• Chancery Pii process
– Online proposal form• Go to www.chancerypii.co.uk , register, login and complete the online proposal form.
Upload a business plan, cash flow forecast and CVs for the partners and main fee
earners and submit the form online.
– Proposal form review• We check your form and ask for further details, as appropriate
– Underwriting• We consider your application in light of our underwriting guidelines
– Quotation• If your application falls within our underwriting criteria, we will email you a
quotation
– Acceptance• To accept, go to www.chancerypii.co.uk , login, complete the acceptance screen and
submit
• Contacts
– Professional Indemnity Insurance • Charles Hawtin
• Chancery Pii
• www.chancerypii.co.uk
• DD: 020 7481 0633
– SRA application process / regulatory, compliance
and management advice• Bronwen Still
• IngoLegal
• www.infolegal.co.uk
• DD: 01527 892 475