Financing Your Virtual Legal Assistant Business
The startup phase of business is hard, and it will be even harder if you haven’t planned properly for your expenses. Whether you, like me, are running a virtual legal assistant business or you are opening your first law practice, there are a number of things you need to consider when you sit down to establish your start-up budget.
Clients
I’ve been in business for approximately 9 months. I still am nowhere near full-time billable hours – and billable hours are the key, as you aren’t being paid for all that marketing time!! You may already have leads on clients, but in all likelihood you need to give yourself at least 6-12 months to really build up a decent clientele.
Also in relation to clients, you need to realize that funds will take time to start flowing. You may choose to invoice on a weekly basis to have some cash in hand, but many virtual legal assistants bill on a monthly business. Once you send out the invoice it may take a week or two to receive funds.
Startup Expenses
You will always have some expenses, but never quite so much as at startup. You may need to invest in equipment like a good computer, a printer or a scanner. You will want to consider adding specialty software like accounting software or graphic design programs. Then there is the cost of your website, hosting and the design of a logo or marketing materials. For some more detailed info about start-up costs for a virtual assistant business check out this article I wrote for Virtual Assistant Hub – there’s even a spreadsheet to help you plan!
Money in the Meantime
Once you’ve spent some time planning how much money you need to start your business you’ll want to spend some time planning where you are going to get that money. Maybe you have personal savings you can access, maybe you have family willing to loan or invest in your business, maybe you can talk to your bank about a small business loan. According to this article, lack of sufficient start-up capital is the cause of more than 70% of business failures. Even if you have a supportive spouse, family or friends to back you financially, you will need to keep a close eye on your income versus your expenses, to make sure your new venture does not become a money-sucking pit.
It is wonderful to have a positive attitude and a strong belief in your ability to succeed when you embark on the adventure of entrepreneurship, but don’t let financial issues drag you into reality. Be prepared and know exactly what it’s going to take to help you truly succeed in building your business!
p.s. this post was inspired by a great article at Law Practice Today written by Erik Mazzone. His tips are well worth checking out, especially if you’re starting a law practice. Erik is an experienced practice management advisor who blogs over at Law Practice Matters.
Laurie Mapp, Owner Halo Secretarial Services Contact us for more information on virtual legal assistance!