Things to consider
– Start up costs: Ensure that enough cash or a line of credit is available to cover start-up costs and at least the first six months to one year of operating expenses plus personal living expenses. Be conservative with revenue and generous with overhead/personal expenses.
– Sources of credit
- Local bank/Credit Union
- Personal, business loan
- Home equity, home refinance
- Line-of-credit to be drawn upon as needed
- Lease, equipment loans
- Family loans/private investor loans
- Personal savings
Resources
“Secrets of the business of law – Opening your own office: what will it cost?” Canadian Bar Association (retrieved February 2, 2016)
Consider issues regarding: Guarantors, ILA, Ownership restrictions (Fee splitting / Fee sharing / Profit sharing with non-lawyers and landlords, etc). Also, long term commitments regarding equipment and office space are not desirable at inception.