I’ve always likened the rise of modern day independent practice (call it the Third Wave if you will) to the dotcom era. Before dotcoms, small entrepreneurship wasn’t cool. But the success of little garage companies forced our profession to look at law firm start ups in a different light.
And because law firm start ups have much in common with tech start ups, from shoe string budgets, to competing in areas traditionally handled by larger players, I was thrilled to read this outstanding post by Jeff Lipshaw at the Legal Profession Blog. Lipshaw writes about a paper in the Journal of Financial Economics, authored by David Kirsch which suggests that the actual failure rate of dot.com start ups was far lower than perceived – roughly 20 percent. But the steady survival of smaller companies was overshadowed by massive failures of sites like eToys and pets.com. (the post goes on to discuss potential business development ideas that might follow from these statistics, so read the whole thing).
So what does this mean for potential law firm start ups? Simply, your chances of success are greater than you think! Get out there and get started.