This week I will discuss the ways in which entrepreneurship can play a role in legal career, as well as how a J.D. can benefit law school students whose primary career objective is entrepreneurship, not practicing law.
There are many ways to practice law, and not all of them involve entrepreneurship in a traditional sense. In today’s world, however, some degree of entrepreneurship or entrepreneurial thinking is needed to be successful at all levels and in all professions. However, two types of legal careers benefit particularly from an entrepreneurial perspective.
[See the benefits of attending law school for a policy career.]
The first of these careers is that of the solo practitioner. For the most part, the days of “hanging out a shingle” — opening up a solo law practice after graduating from law school and being admitted to a state bar — are long past. Those who start their own firms now tend to gain experience and expertise in a larger, established organization before striking out on their own.
Lawyers who do open up their own legal practices will soon realize that such law offices are essentially small businesses selling the product of legal advice and representation. Creating a successful law firm, whether as a solo practitioner or with other attorneys, will present issues that all businesses face, such as advertising and marketing, managing a staff and budgeting. An entrepreneurial spirit is very important in successfully managing the non-legal aspects of running a law office.
The second career is that of the attorney working in a for-profit legal office. A junior attorney in an established legal office will not have to deal with budgeting or advertising, but the skills of entrepreneurship will still be an asset in advancing one’s career. Corporate law firms in particular seek attorneys who themselves can bring in business, manage relationships with clients and have a good understanding of their corporate clients’ objectives.
[Read more about how law schools are incorporating entrepreneurship.]
Law school can be a powerful asset in entrepreneurial endeavors, especially for those who wish to be entrepreneurs and not practice law as a career. Much of what is learned in law school is applicable to running a business.
Beyond the more obvious subjects of contracts and corporate law, law students can avail themselves of many courses that directly apply to entrepreneurship.
A course in securities regulation will teach a budding entrepreneur how businesses raise funds. A course in corporate taxation will address both the tax and non-tax characteristics of different business entities such as partnership, limited partnership, corporation and LLC. A course in labor or employment law will help an entrepreneur understand how to structure employee compensation and avoid labor disputes.
Law students who plan to use their J.D. as an entrepreneur should make time for courses like the ones described above and should also seek extracurricular opportunities to explore the intersection of entrepreneurship and law.
[Explore three non-legal career options for law school graduates.]
In addition to gaining an understanding of the legal aspects of running a business, a background in law enables an entrepreneur to better understand when a legal matter is simple or general enough that it does not require a lawyer. For example, a general knowledge of contract law will enable an entrepreneur to read an agreement with an employee, contractor or supplier with a much more trained eye.
However, do not expect the benefits of having a J.D. to extend to significant or complicated legal issues you may encounter as an entrepreneur. Abraham Lincoln, who practiced law early in his career and was considered to be an excellent litigator, is believed to have said that a lawyer who represents himself has a fool for a client.
Although law school gives you the tools to analyze business issues and to understand broader legal issues, matters of any significance are generally best left to legal specialists who have significant experience and expertise in the area.
What’s your take on entrepreneurship in the legal field? Let me know in an email or tweet me.
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Apply Entrepreneurship Skills to Complement a Law School Degree originally appeared on usnews.com
