How and Why to Start a Law Firm: A Conversation with David Elsberg
Feb 27, 2025
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David Elsberg, Founding Partner of Ellsberg, Baker & Moruri and former Quinn Emanuel partner, shares insights on launching a law firm. He was inspired by the satisfaction other partners found in building their practices. David delves into the challenges of managing the business side of law, the importance of assembling a cohesive team, and the appeal of boutique firms for young lawyers seeking trial experience. He also emphasizes the need for careful communication when transitioning from established firms to preserve client relationships.
Starting a law firm allows for creative entrepreneurial freedom, driven by the satisfaction derived from building something new and challenging from scratch.
Success in establishing a law firm hinges on assembling a cohesive team of skilled lawyers and reliable support staff to manage business operations effectively.
Deep dives
The Allure of Startups in Law
Starting a law firm offers a unique opportunity for lawyers seeking creative and entrepreneurial freedom. Many lawyers fantasize about making the leap but hesitate due to fears surrounding the challenges of entrepreneurship. David Ellsberg emphasizes the thrill of building something from the ground up, noting that this could be a significant source of satisfaction. Notably, he draws inspiration from successful peers who found joy and fulfillment in establishing their firms, marking it as a key motivator in his multiple ventures.
Understanding the Components of a Law Firm
Building a law firm requires more than just legal know-how; it demands a comprehensive understanding of business operations. Ellsberg explains that starting a firm is often easier than anticipated, mainly due to the requirement of initial resources like office space, staff, and technology. At the core of a successful firm are great lawyers who work well together and a strong support staff that can handle the operational side of the business. Thus, assembling a team with both legal expertise and reliable administrative capabilities becomes crucial for the firm’s success.
Navigating Challenges of Transition and Recruitment
Transitioning from one law firm to another poses challenges, particularly in maintaining client relationships and recruiting top talent. Ellsberg highlights that while some clients naturally followed him to his new firm, the main concern was attracting skilled associates outside of peak recruiting seasons. By fostering strong relationships within the legal community and tapping into networks that promote boutique litigation, he successfully attracted high-quality talent eager to be part of a startup environment. This strategic hiring approach not only strengthens the firm's capabilities but also enhances its reputation in the competitive legal market.
John is joined by David Elsberg, the Founding Partner of two law firms, most recently Elsberg, Baker & Maruri. They discuss the experience of starting a law firm, including the motivations, challenges, and rewards of building a law firm from the ground up. David is a former Quinn Emanuel partner. He was inspired to start his own firms by the accounts of John and other Quinn Emanuel partners of the satisfaction they felt from building something new. He wanted the challenge of starting a firm and learning the business side of legal practice. Although running a law firm requires a different skill set from practicing law, starting a law firm is not particularly difficult compared to other businesses. Success depends primarily on assembling the right people. At first, David was intimidated by the non-legal aspects of starting a business, such as setting up payroll and office infrastructure, but found that hiring skilled professionals made the process manageable. The most critical factor for success is selecting lawyers who are not only talented, but work well together. Before starting a new firm, founders should carefully disengage from their current firm. They need to walk a tightrope in how they communicate their departure to their current firm’s management, colleagues, and clients. Boutique litigation firms now attract high quality associates because they offer young lawyers more trial experience and closer client relationships. Many clients also appreciate the hands-on approach of a smaller firm without the bureaucracy of a large organization. David’s firm prioritizes trial work, handling high-stakes disputes, particularly in finance. He has found that, while it involves risk, the rewards of independence and creativity in a start-up firm are significant.