How and Why to Start a Law Firm: A Conversation with David Elsberg

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.Podcast Link: Law-disrupted.fmHost: John B. Quinn Producer: Alexis HydeMusic and Editing by: Alexander Rossi