In 2020, I opened my law firm. I learned a lot about business and here are some unsolicited thoughts:

1. The only metric that matters is profit margin. I'm not sure what a "good margin" is for law firms. I found a few online articles that suggest 35% - 50%. My firm is at 84%.

2. Starting a business during a major economic contraction is a smart financial decision in the long-term. Office rent is lower and established firms are grappling with how to accommodate their large overhead. Your firm does not need as much revenue to be profitable.

3. All short-term decisions need to be made within the context of the next 5+ years. Don't look for a quick buck but rather build the law firm you want in the right way - even if that means slower growth. It will pay dividends.

4. Assume you won't get the returns you want for 2 years. Adjusting your expectations is the #1 mindset hack to deal with bad months. In poker, these bad stretches are a natural part of variance.

5. That being said, you will turn a profit much sooner than you think. And because you've assumed that you won't for another year or two, you will be incredibly grateful when it happens. The good vibes will permeate through your law firm and on to your interactions with clients.

6. In order to be able to do #3 and #4, you need to have a good runway. I had 6 months - 1 year of savings before I started my firm. This allowed me to set fair and transparent legal fees. Clients shouldn't have to pay a premium because your firm has a cash problem.

7. That being said, never provide free legal services. Free consultations is exploitative. Clients need to recognize that your judgment, education and manner of advocacy is a result of years of self-investment. Undervaluing yourself leads to an imbalanced relationship.

8. How do you know you have a fair fee model? When both parties walk away feeling great about the solicitor-client relationship. This is shown through prompt (and undisputed) payment of fees, lots of gratitude in emails, and respect for each party's time.

9. A quick hack for #7 is saying no to clients that you don't jive with in terms of personality. It might hurt to give up a case but having a No Asshole Policy will let you sleep well at night. Remember: there are more clients out there that you have time for. Choose wisely.

10. When I sense that personalities might not jive, I tell individuals in consultations that I may not be the best fit for them and that there are tons of great lawyers out there (I recommend a few names).

So far, all have come back and asked for me though and it's worked out.

11. Don't focus on short-term profitability, focus on longevity. Sometimes the key to success in a crowded marketplace is simply to stay in the game long enough. Find your niche, stay small, and let the values of your firm be known. Don't try to be for everyone.

12. Finally, operating your own law firm means the buck stops with you. No managing partners or colleagues. As such, investing in your personal development (skills, education, health) will generate the greatest returns for your clients. That is the power law in practice.