Over the past years knowledge-intensive industries have gained significant importance as
economic factor giving rise to professional service firms (PSFs) such as law firms accounting
firms or consultancies. Following this development the research interest especially in the
strategies pursued by PSFs has grown substantially. However past research focused mainly on
strategies of established mature PSFs leaving academics as well as potential entrepreneurs
without guidance on what newly founded entrepreneurial PSFs should pay attention to in order
to ensure lasting competitive advantages. Based on an explorative grounded theory analysis of
two outstanding commercial law firm spin-offs in Germany this work advances the research in
this field. In addition to a detailed case study report it offers a comprehensive theoretical
framework and argues that PSFs have to employ a set of seven specific entrepreneurial
strategies - including for example service delivery people development and client acquisition
strategies - in order to successfully manage the entrepreneurial phase. In providing examples
for the growing PSF industry the findings on commercial law firm spin-offs also inform
entrepreneurship research in other professions
