Business Overview

The inherent complexity of business contracts, consumer protection laws, and regulations in many (if not all) industries means that lawsuits are a natural part of doing business. The risk of those lawsuits necessitates council and advisory firms to help contain costs and defend companies against claims. This is what a legal consulting firm can help with. By acting as a consultant, rather than a traditional legal firm, your company would be able to advise companies’ legal departments and draw up compliance plans that meet local, state, and federal regulatory guidelines. You can also advise companies with no legal department, lowering their legal costs.

Who is this business right for?

This business is ideal for lawyers who want to leave their law firm or break out of the traditional or conventional role of a law firm.

What happens during a typical day at a legal consulting firm?

Day-to-day responsibilities vary based on the type of consulting your firm chooses to do. Some consulting firms, for example, help design compliance departments while others act as mediators. Others provide preventative council about employment law and related issues.

Days are typically spent meeting with clients, giving advice, and drafting various legal plans for clients.

What is the target market?

Preferred clients for this type of business are large corporations that have a need for outside consulting, cost control, litigation mitigation services, or that want to reduce legal liability and exposure.

The worst types of clients would be small businesses or self-employed individuals who cannot afford the services of a consulting firm.

How does a legal consulting firm make money?

Legal consulting firms make money by charging hourly or flat-fees for legal consulting work.

What is the growth potential for a legal consulting firm?

The industry, overall, is poised for growth as businesses are realizing the incredible cost savings for preventative legal council.

Growth potential for this industry is excellent. A small consulting firm can take on several clients and manage a small book of business. A large firm can employ several lawyers or several hundred lawyers. This business scales well as long as the firm hires qualified legal talent and legal aides. Administrative work is a big part of this business so hiring a skilled team of paralegals early on is important.