Seven Sample Attorney Business Plans: Why Attorneys Must Have Business Plans

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do lawyers write business plans

By  Harrison Barnes

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  • Business plans are a dying art, especially in the legal profession.
  • Needless to say, business plans are also essential for a lawyer’s career.
  • As the adage goes, if you don't plan your career, someone else will plan it for you.

Seven Sample Attorney Business Plans: Why Attorneys Must Have Business Plans

Many of you work in firms that don't have a business plan for the firm as a whole , let alone your practice group or individual attorneys. And some of you are not privy to the firm's plan, even if there is one.

  • If you are interested in seeing the elements of a lateral partner business plan click here: Partner Business Plans: Key Elements

Even so, that's no reason to forgo developing a plan for yourself. Remember, if you don't plan your career, someone else will plan it for you.

Have no fear. Personal business planning is not about writing a 50-page manifesto outlining every detail of every day of your professional life for the next 10 years . In fact, personal business planning can be as simple as you want to make it, as you can see here with this sample business plan for law practice PDF . You don't even have to call it a business plan -- call it a career plan if you prefer.

No matter how simple you make it or what you call it, personal business planning is about taking inventory of where you are , determining where you want to go and building a roadmap for getting there. Once you have the plan in writing, all you have to do is revisit it periodically to check your course and make any necessary adjustments.

do lawyers write business plans

1. Take an inventory of where you are.

The first step in the personal business planning process is to survey your situation. Often, it helps to ask yourself a series of tough questions. What are your strengths and weaknesses? What practice areas and professional activities most interest you? What is the status of your network and your reputation? How does your personal situation compare with external factors such as your firm's goals and objectives? Are your goals in line with the objectives of your firm? What about the status of your competition, internally and externally? Are you looking to succeed in a field packed with attorneys having similar skills and goals? What are the trends taking shape in your geographic region , in your practice area, and in your clients' industries? Do your goals and objectives capitalize on these trends? Given this analysis, what threats do you need to avoid and what new opportunities can you capitalize on?

2. Determine where you want to go.

You know where you are, but where do you want to go? Think about creating a mission statement for yourself. I know it sounds corny, but the mere exercise of trying to come up with one is enlightening. Answer this question: Why am I practicing law and what do I want to achieve? The answer doesn't have to be unique or earth-shattering -- it just has to answer the question.

Your mission statement doesn't have to be long or eloquent. In fact, you should try to keep it to one sentence. The most important thing to remember is that whether you want to become a partner in your firm, help the less privileged, become a judge, move in-house or start your own firm, your mission is yours and yours alone. Your parents were right: You can do, and be, anything you want.

3. Build a map for getting there.

All that's left is to figure out the steps between your situation and your destination as described in your mission statement. The best way to map out these steps is to start at the end and work your way back to your situation. Here is how your analysis might work:

Establish long-term goals. To accomplish your mission, first think about what long-term goals you will need to achieve. For example, if your mission is to become a partner , you might want to set long-term goals of winning a certain amount of new business or developing a new practice area. You also might speak with those responsible for making partnership decisions, to hear what they want to see you accomplish to support the decision to make you a partner. Once you know their expectations, you can align your long-term goals with their expectations. And you can make exceeding their expectations one of your long-term goals.

If you are already a partner, your mission might be to become one of the firm's top rainmakers. To accomplish this, one of your long-term goals might be to develop a certain percentage of new business from your existing clients over the next two years.

  • Set objectives for this year. To accomplish your long-term goals, think about what objectives you can achieve by the end of the year. To continue the above example, if your long-term goal includes developing new business, you might make it your objective to win two new clients this year that represent a certain percentage of your long-term business development goal. To develop a new practice area, you might try to work on three projects related to the new practice area. If your goal is to focus on developing new business with existing clients, your objective might be to have a certain number of face-to-face meetings with your clients to discuss their business and legal issues.
  • Start implementing your strategies today . Finally, to accomplish this year's objectives, think about what short-term strategies or steps you can start taking. For example, to win two new clients, you might determine that you need to build your referral network and become more visible in your practice area. That might mean taking a leadership role in an association, writing articles and giving speeches. You might run for office in a bar association section that interests you. Or you might join Toastmasters, to hone your speaking skills. To identify writing opportunities , you could develop better relationships with key people in your firm's marketing department so that they think of you when there is a suitable writing opportunity.

To accomplish your objective of working on three projects in a new practice area, you might determine that you need guidance and additional skills. Then you could identify a mentor with experience building new practice areas . To acquire new skills, you could take continuing legal education courses or seek opportunities to work on the types of matters that will develop those skills.

To develop additional business from existing clients, you might start by scheduling regular entertainment outings with key clients and in the meantime educate yourself about their businesses. What's going on in their industries? What do their most recent annual reports reveal about their strategies? Who are their primary competitors? What legal needs might these clients have that your firm is not serving?

In the meantime, as you establish yourself with new and existing clients, it might be a good idea for you to establish an individual attorney marketing plan, either through an associate attorney marketing plan, or a partner business plan if you are a partner.

The key to building your roadmap is to make sure that each activity you plan to undertake has a clear deadline and is as specific, objective and measurable as possible: "I will take two CLE courses in complex litigation techniques by June 1" or "I will entertain Mr. Jones from ABC Inc. once each quarter."

Also, when it comes to planning, the biggest land mines are complexity and procrastination. Try to avoid creating a plan that overwhelms you or anyone you tell about it. And remember that any plan is better than no plan at all.

Strive to keep your plan simple and start taking action. As an attorney, you're well-versed in the areas of analysis and logic. In every work matter, you look at the situation and connect the dots to accomplish the desired objective. Apply the same approach to personal business planning and the dots you connect will lead you to the career you've always wanted.

  • See 30 Ways to Generate Business as an Attorney for more information.

Business Plan For A Law Firm

How do i write a business plan for a law firm, what goes into a business plan, overview of the firm.

  • A mission statement about the firm’s purpose.
  • A vision statement or recitation of medium- and long-term goals for the firm.
  • Important aspects of the firm’s history.
  • Any important philosophies that the firm brings to legal practice.

Market Analysis

Do lawyers write business plans, 1. what are your goals.

  • What do I want to achieve by starting my own law firm ?
  • What is the impact I want to have?
  • What am I good at?
  • How do I want to service my clients?
  • What problems do I want to help solve?
  • What does success look like after starting this law firm?

2. Consider how much revenue you will need.

3. setting your fee structure, 4. determine how many cases you need to meet that revenue goal, how to create a law firm business plan, 1. executive summary.

  • Mission statement: One or two sentences describing your firm’s purpose.
  • Core values: What values are most important to the firm?
  • Major goals: What are your firm’s overarching goals and objectives?
  • Unique selling proposition: What sets your firm apart from other firms?

2. Firm Description

  • Service(s): What type of law do you practice? What types of clients do you serve?
  • Firm values: Restate your mission statement and core values.
  • Legal structure: What sort of business entity are you? Are you in a sole proprietorship or a limited liability partnership?
  • Location: Where is the office geographically located? What areas does the firm serve?
  • Unique selling proposition: What makes your firm stand out? What technology or services give your firm an edge?

3. Market Analysis

  • Ideal client: What demographics (like location, age, occupation), needs, and motivations would signify the best client match for your firm, and why?
  • Industry description: What is the current and projected size of the market your firm is in? What are the trends in your legal niche?
  • Competitive analysis: Who are your direct and indirect competitors, and how are they serving your target market? Where do your competitors succeed? What opportunities are there for your firm?
  • Projections: How much can your ideal clients spend on legal services? How much can you charge?

4. Organization and Management Overview

  • Describe what makes you unique and what sets you apart from other applicants.
  • If applicable, include what makes each member of your team suitable for their particular roles.
  • The organizational chart is a great visual aid if you have a larger practice.

5. Services

  • What problems do your potential clients need your help with?
  • How can your services uniquely help your clients solve their problems?
  • What is the benefit of your services to clients?
  • Why would potential clients choose your firm over another firm?

6. Marketing Strategy

  • Ideal client: Where would you find your ideal client?
  • Marketing goals: Detail what specific outcomes you hope to accomplish through marketing. Goals should include tactical objectives (more clients? Higher billing rates?) and overall objectives (like increased name recognition).
  • Unique selling proposition: Restate what sets you apart and makes you uniquely able to best serve your clients.
  • Competition: Detail who your competition is—and what they are doing to gain clients. Analyze their marketing strategies and assess where the cost of your services fits in with your competitors.
  • Action plan: List the specific actions your firm will take to reach your target market and achieve your marketing goals (this could include a media/advertising strategy).

7. Financial Plan

  • Revenue goal: How much money you want to make broken down by month.
  • Financial projections: What you will really expect to earn, how many cases you think you will have the capacity to take on, and what you will be charging each client each month.
  • Budget: A breakdown of your expenses and what your money will be going towards each month.
  • Cash flow statement: What you actually earned and spent each month. This is different from your projections and budget and should be updated as the year progresses. You will find that you may have budgeted for something that cost you much less than you originally thought or made more in a month than you projected, these discrepancies should be recorded in your cash flow statement.

8. Start-Up Budget

  • Hardware (laptops, printers, scanners, office furniture, etc.)
  • Office space (Will you rent, or work from home?)
  • Malpractice insurance
  • Staff salaries (Are you planning to hire an administrative assistant or paralegal?)
  • Utilities (Phone, internet, etc.)
  • Practice management software or other technology services
  • Partner Business Plans: Key Elements
  • You Need to be Self-Managing and Responsible
  • The Importance of Finding and Creating Demand
  • The Importance of Asking the Right Questions, Self Improvement and Perception
  • Attorney Business Plan Sample 1
  • Attorney Business Plan Sample 2
  • Attorney Business Plan Sample 3
  • Attorney Business Plan Sample 4
  • Attorney Business Plan Sample 5
  • Attorney Business Plan Sample 6
  • Attorney Business Plan Sample 7

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Harrison Barnes does a weekly free webinar with live Q&A for attorneys and law students each Wednesday at 10:00 am PST. You can attend anonymously and ask questions about your career, this article, or any other legal career-related topics. You can sign up for the weekly webinar here: Register on Zoom

Harrison also does a weekly free webinar with live Q&A for law firms, companies, and others who hire attorneys each Wednesday at 10:00 am PST. You can sign up for the weekly webinar here: Register on Zoom

You can browse a list of past webinars here: Webinar Replays

You can also listen to Harrison Barnes Podcasts here: Attorney Career Advice Podcasts

You can also read Harrison Barnes' articles and books here: Harrison's Perspectives

Harrison Barnes is the legal profession's mentor and may be the only person in your legal career who will tell you why you are not reaching your full potential and what you really need to do to grow as an attorney--regardless of how much it hurts. If you prefer truth to stagnation, growth to comfort, and actionable ideas instead of fluffy concepts, you and Harrison will get along just fine. If, however, you want to stay where you are, talk about your past successes, and feel comfortable, Harrison is not for you.

Truly great mentors are like parents, doctors, therapists, spiritual figures, and others because in order to help you they need to expose you to pain and expose your weaknesses. But suppose you act on the advice and pain created by a mentor. In that case, you will become better: a better attorney, better employees, a better boss, know where you are going, and appreciate where you have been--you will hopefully also become a happier and better person. As you learn from Harrison, he hopes he will become your mentor.

To read more career and life advice articles visit Harrison's personal blog.

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do lawyers write business plans

About Harrison Barnes

Harrison is the founder of BCG Attorney Search and several companies in the legal employment space that collectively gets thousands of attorneys jobs each year. Harrison is widely considered the most successful recruiter in the United States and personally places multiple attorneys most weeks. His articles on legal search and placement are read by attorneys, law students and others millions of times per year.

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How to Design a Successful Law Firm Business Plan

Want a successful law firm? Start with a solid business plan. Our guide covers everything that will help you create a roadmap for success.

Sasha Berson

A law firm exists to serve clients, so its business plan must reflect the needs of those it aims to support. This plan should outline the foundational elements of the practice, including operational details, marketing strategies, and financial projections, while also providing a clear path for future growth.

In this blog, we'll walk you through creating a comprehensive law firm business plan that aligns with your goals. Additionally, tune in to our latest Grow Law Firm podcast, where host Sasha Berson interviews Omar Ochoa, founding attorney of Omar Ochoa Law Firm, on business development for lawyers. Don’t miss the episode with Tom Lenfestey, where he shares insights on developing a profitable and sellable law firm.

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Book a Free Consultation

Why Is a Business Plan Important for Law Firms?

A business plan is a vital tool for any law firm to achieve success. It outlines goals, strategies, and the feasibility of business ideas, providing a clear direction and focus for the firm. The plan can be used to secure funding from investors or financial institutions by demonstrating the potential for growth and profitability.

Benefits of a business plan

A business plan aids decision-making by evaluating new ventures, managing risks, and setting financial goals. It ensures efficient resource use and tracks progress. Additionally, it drives growth by identifying opportunities and setting realistic targets. Overall, a solid business plan provides direction, supports decisions, and enables growth in the legal industry.

What to Consider Before Starting Law Firm Business Plans

Before starting a law firm business plan, think through a few key issues, including:

— Setting the Goals

Reflect deeply on your firm's purpose. Think about who you represent and how you can best meet their needs. A law firm exists for its clients. As you think about your  law firm goals , think about goals for providing legal services to your clients.

"We continue to try to have the biggest impact that we can because ultimately, in my opinion at least, that's what lawyers are for, is to be able to help people and be able to move us forward." — Omar Ochoa

Set realistic, achievable goals that align with why you started your own law firm, like increasing collections. Plan how to reach them and measure success. For example, if your goal is to have ten lawyers in three years, set intermediate goals for years one and two to track progress.

— Choosing Partnership Structure

For lawyers considering a partnership structure, it's important to select partners that complement each other's strengths and weaknesses to help the firm function effectively.

There are 2 main partnership structure options:

  • A single-tier model provides equal decision-making power and liability between partners.
  • Meanwhile, a two-tier structure offers tiers like equity and non-equity partners, providing flexibility and career progression opportunities.

While similarly skilled individuals may clash, partners with differing abilities can succeed together. Some attorneys also choose to run their own firm for flexibility. This allows them to leverage different specialists through occasional joint ventures tailored for specific cases, without the constraints of a single long-term partnership. Furthermore, it highlights how the law firm partnership structures impacts freedom and sustainability.

— Thinking of the Revenue You Need

Calculate how much revenue you need to cover your overhead and pay your salary. Suppose your expenses include:

  • $2,000 per month for office rent
  • $36,000 per year for a legal assistant salary
  • $600 per month for courier expenses
  • $400 per month for a copier lease

thinking of the revenue you need

Assume you want the  median annual salary for lawyers  of $127,990. You need $199,990 per year in revenue to cover your salary and expenses.

Revenue isn’t everything. You need enough monthly cash flow to cover expenses like rent, vendors, and payroll. Additionally, maintain a reserve for upfront costs, such as filing fees, until clients reimburse you.

— Defining the Rate of Payment

You need to make some difficult decisions when it comes to setting your own fee structure. If you choose a higher billing rate, you will need to work less to meet your revenue goals. But you might not find many clients who are able to pay your fees.

Whether you charge a flat fee, contingent fee, or hourly fee, you should expect potential clients to compare your fees to those of your direct and indirect competitors. Remember, your firm competes against other lawyers, online services like  LegalZoom , and do-it-yourself legal forms books.

Finally, you need to comply with your state's rules of professional conduct when setting your fees. The  ABA's model rules  give eight factors to determine the reasonableness of a fee. These factors include the customary fee for your location and the skill required to provide the requested legal services.

— Making the Cases in Your Law Practice Meet the Revenue Needs

Determine how much work is needed to meet your revenue goal. Flat fee lawyers can divide their target by their fee. Hourly lawyers should calculate billable hours but account for admin tasks and uncollected fees. Contingency fee lawyers face uncertainty, as case values and settlement timelines are unpredictable, making projections difficult.

Omar Ochoa

The Founder of Omar Ochoa Law Firm

Omar Ochoa is a founding attorney with extensive experience in complex litigation, including antitrust, class actions, and securities cases. He has recovered hundreds of millions of dollars for clients and has been nationally recognized as one of the best young trial lawyers in the country.

Omar graduated from the University of Texas at Austin with degrees in business administration, accounting, and economics. He later earned his law degree from the university, serving as editor-in-chief of the Texas Law Review. He has clerked for two federal judges and has worked at the prestigious law firm Susman Godfrey L.L.P. Omar is dedicated to seeking excellence. He has been recognized for his outstanding achievements in antitrust litigation.

Key Elements of Business Development for Lawyers: Plan Structure

A law firm business plan is a written document that lays out your law firm goals and strategies.

For many businesses, a business plan helps secure investors. But the ethical rules prohibit law firms from seeking funding from  outside investors or non-lawyer shareholders .

Parts of a Business Plan

Your business plan is for you and your law partners. It will help you manage everyone's expectations and roles in the firm. Here is a law firm business plan example to help you see the parts and pieces in action.

— Executive Summary

An executive summary combines the important information in the business plan into a single-page overview. Your plan will include details like projections, budgets, and staffing needs. This section highlights the conclusions from those detailed analyses.

Your executive summary should include :

  • A mission statement explaining the purpose of your firm in one or two sentences
  • A list of the core values that your firm will use whenever it makes decisions about its future
  • The firm's overarching goals for itself, its lawyers, and the clients it serves
  • The unique selling proposition that sets your firm apart from other firms in the legal industry

You should think of this section as a quick way for people like lenders, potential law partners, and merger targets, to quickly understand the principles that drive your firm.

  • Easy steps you can take to bring in more clients and up this year’s revenue
  • The top website and marketing mistakes holding your law firm back

— Law Firm Description and Legal Structure

First, you will describe what your law firm does. You will describe your law practice and the clients you expect to serve.

Second, you will describe how your firm operates. The organization and management overview will explain your legal structure and the management responsibilities of you and your law partners.

This section should fill in the details about your firm's operation and structure by:

  • Describing the scope of the legal services you offer and your ideal clients
  • Restating your mission statement and core values and expanding upon how they will guide your firm
  • Explaining your location and where your clients will come from
  • Describing your business entity type and management structure
  • Detailing your unique selling proposition , including the features that distinguish your firm from your competitors

When someone reads this section, they should have a clear picture of what you will create.

— Financial Calculations

Your law firm business plan should clearly outline your revenue sources and expenses. This is where your skills as a lawyer shift toward business management. Creating a detailed financial plan with accurate financial projections is essential, especially if seeking loans or credit for your new firm.

You will need a  financial plan  for at least the first year.

Key components include:

  • Revenue Analysis : Monthly fee projections.
  • Budget : Estimated monthly and annual expenses.
  • Financial Projections : Expected profit margins based on revenue and expenses.
  • Cash Flow Statement : Tracking cash on hand and identifying potential financial challenges.

Accurate cash flow management is crucial for any legal organization to ensure growth in its early stages and business development for lawyers. Effective business development for lawyers includes not only marketing and client acquisition strategies but also robust financial planning and management to drive sustainable success.

"Take some financial statements courses, take some managerial accounting courses that teach you how to track costs, how to frame costs in a way that you're looking at the important costs." — Omar Ochoa

— Market Analysis

A market analysis helps define your position in the legal niche by understanding client needs and industry trends. A competitive analysis identifies your competitors, their services, pricing, and success factors, allowing you to refine your business operations and marketing strategy.

How to conduct market analysis

Key elements to include:

  • Ideal Clients : Who they are and how your law services meet their needs.
  • Market Size : Assess demand and whether your offerings align with client needs.
  • Competitors : What they provide, their pricing, and standout features.
  • Competitive Advantages : What sets you apart and how to leverage this in your marketing strategy.

This analysis guides business operations, marketing efforts, and potential areas for expansion in your legal niche.

Your market analysis helps you focus your efforts on your legal niche.

— Marketing Plan

A marketing plan outlines the steps to attract new clients by targeting your prospective clients and refining your marketing efforts. Start with a market analysis, identifying your target market, competitors, and competitive advantages. Then, develop a marketing strategy based on this analysis.

Questions for marketing plan creation

  • Target Market : Define your ideal clients and understand their needs for legal services.
  • Competitive Analysis : Identify what your competitors offer and how you can differentiate your legal services.
  • Unique Selling Points : Highlight tangible benefits like lower billing rates or local offices, and intangible ones like specialized expertise or more experience.
  • Marketing Message : Craft a clear message that emphasizes your unique advantages to prospective clients.
  • Action Plan : Choose the marketing channels that best reach your target market, whether it’s through SEO, legal directories, or publications.

Tailor your marketing efforts to your legal specialty. For instance, IP lawyers may focus on business publications, while family law practitioners might target community platforms. Even if you rely on referrals, building brand recognition through a website and online directories is essential for attracting new clients. Include an executive summary that captures these core elements for legal professionals planning their marketing strategy.

— Your Law Firm Services

You will outline the services your law firm offers to clients. Lawyers with established clients and an existing legal practice can simply describe what they already do.

Any new law firm or lawyer transitioning from other practice areas should consider:

  • Practice areas you know and enjoy
  • Overlapping practice fields that will not require extra staff, such as personal injury and workers' comp
  • Related legal services your clients may need, such as wills and guardianship

By offering needed services you can competently provide, you can gain clients and avoid referring existing clients out to other lawyers.

— Your Law Firm Budget

Approach your start-up budget as a dynamic plan. Initially, outline the one-time expenses like office space, furniture, and technology for your start-up company. These are essential for establishing your law firm but won’t recur frequently. Include recurring costs such as rent, staff salaries, and office manager expenses to understand your monthly operations.

Your budget should help founding partners determine the initial capital needed, assess profit margins, and decide if external funding is necessary. Efficiently managing your start-up budget ensures your law firm has a solid foundation to business development for lawyers.

Find out how much demand there is in your geographical area

Law Firm Business Plan Template

law firm business plan

Each of the websites below includes at least one attorney business development plan template:

  • Business Plan Workbook
  • PracticePro
  • Smith & Jones, P.A.
  • Wy'East Law Firm

You can use a law firm strategic plan example from these sites to start your firm's plan, then turn the plan into a document unique to your circumstances, goals, and needs.

Some Useful Tips on Creating a Business Plan for Law Firm Creation and Development

As you draft your law firm business plan, you should focus on the process. By putting your thoughts down in writing, you will often identify issues you had not previously considered.

Some other tips for drafting your business plan include:

— Describe Both Strengths and Weaknesses

When preparing your law firm's business plan, project confidence while staying realistic. You'll use this plan to approach partners, lenders, and mergers, so back it up with solid financials. Address business challenges and competitive advantages, like competing with a firm with strong   law firm reputation management . Outline marketing strategies to attract clients from competitors.

— Think Ahead

Your business plan serves as a roadmap for establishing and operating your law firm. Consider future challenges, like needing HR or handling payroll in-house as your firm grows. These changes add costs but can improve efficiency. However, projections beyond five years are often unreliable due to evolving clients and technology.

"A law firm that actually does something in the unique way that is an actual measurable advantage to their clients or to their firm." — Tom Lenfestey

— Be Clear about Your Intentions

As you develop your plan, you should keep its purpose in mind. First, you want to outline your core values and goals for your law firm. Set out the reasons why you started your law firm and what you intend to accomplish with it.

"You can't just be doing something because you want prestige. There's gotta be more to that, right? You have to have a purpose that you're following. And if you've got that, that purpose is like gravity, right? You will always be grounded." — Omar Ochoa

Second, you set out your path to achieving those goals. This will include boring technical information like how much you spend on legal research every month. But it will also explain your approach to solving problems consistent with your mission statement and philosophy for law firm management.

— Develop a Succession Plan for Your Law Firm

Creating a succession plan is crucial for founding partners to ensure a smooth transition and preserve the firm’s value. By analyzing market trends and profit margins, firms can stand out and attract potential buyers. Law firms generating over $2 million in revenue often have systems in place that enhance value and simplify transitions.

A transition-based sale, where the selling attorney stays involved temporarily, helps maintain client relationships and reduces risk. Investing in strong systems and planning early ensures your firm remains profitable, systematized, and attractive for future buyers, securing a successful exit strategy.

Building High-Value Law Firms with Tom Lenfestey, the CEO of Law Practice Exchange

This podcast episode features a discussion between Sasha Berson and Tom Lenfestey about the Law Practice Exchange, a marketplace for buying and selling law firms. Tom, an attorney and CPA, explains how his experience with other professionals inspired the creation of this marketplace. They discuss the importance of building systems to enhance a firm's value, the challenges of succession planning, and strategies for creating a smooth transition and maximizing value during a sale.

"You make more money with hopefully more consistency and less stress. And so that's also part of it is enjoy it. Build to better, right, overall, but build that firm that you want." — Tom Lenfestey

Tom Lenfestey

Tom Lenfestey

The CEO of Law Practice Exchange

Tom Lenfestey is an attorney and CPA who founded the Law Practice Exchange, a marketplace for buying and selling law firms. With a background in assisting dentists and CPAs in selling their practices, Tom identified the need for a similar platform for lawyers. His work focuses on helping attorneys realize the value of their practices, providing structured exit strategies, and facilitating smooth transitions.

Final Steps

While there's no one-size-fits-all answer to crafting a law firm business plan, it's an essential tool for effective business development for lawyers. The planning process helps identify overlooked issues and aligns partners with shared goals. This approach ensures your law firm is uniquely tailored to your vision and values, guiding you toward your original aspirations in the legal field.

To learn how to expand your client base as your firm grows, check out Grow Law Firm, a professional  law firm SEO agency .

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How to Draft a Law Firm Business Plan

do lawyers write business plans

Law firms are something more than a business. Law firms and the lawyers within them are engaged in a profession, with obligations that go beyond purely commercial concerns.

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This truth can obscure the need for lawyers to pay attention to the business management side of their practices: their finances, marketing plans, business development efforts, IT purchases, lease terms and capital needs. For the highly trained lawyer, such concerns may feel at best like an afterthought, or at worst a nuisance that steals time from their true occupation: the “practice of law.”

And yet, those annoying business details are responsible for keeping the lights on. While law firms may be more than a business, there is, in fact, a large and necessary business element to them. For solo practices and small firms in particular, investing time into the business management side of legal practice can make a major difference in the financial rewards they derive from it—or even their survival. Firms that have failed to do so in the past (and even those that haven’t) can get a handle on their law practice business management by taking the step of drafting a business plan.

THE POINT OF A BUSINESS PLAN

We’ll discuss the components of a business plan in a moment, but first, let’s talk about why this exercise is valuable. For another type of business, a business plan may be useful in attracting investors or securing financing. Law firms should not think of their business plans as utilitarian documents in that sense (although someday one could prove helpful in obtaining a line of credit, say, or attracting lateral partners). Instead, the primary value of the business plan, particularly for the solo practice or small firm drafting one for the first time, lies in the fact that it forces the firm to think about business issues that it otherwise would not have considered.

As the D.C. Bar says in its advice to startup law offices : “The act of planning helps you think things through thoroughly, study and research if you are not sure of the facts, and look at your ideas critically. It takes time now, but avoids costly, perhaps disastrous, mistakes later.”

Of course, a business plan does little for anyone if it is quickly forgotten. But the mere act of generating a business plan gives a firm a direction to head in and goals to point toward. If the firm makes it a practice to revisit the business plan on an annual basis (if not more regularly), its business considerations will stay top-of-mind and the firm will continually refine them in ways that improve its performance.

THE CONTENTS OF A BUSINESS PLAN

Creating a strong business plan will require an investment of time and energy. At the same time, no one wants to write, or read, a massive document. To improve the chances that the project gets done, and gets read, it is best to keep a business plan to a reasonable length. Anything over 20 pages may stretch attention spans to the breaking point, and there’s no harm in going shorter if you have covered all the territory you need to by that point.

So, what, exactly, is the territory that you should cover? Most authorities agree that a sound business plan for a law firm should address the following broad areas:

  • Overview of the Firm

This section should include basic information about the firm: its name, legal structure, practice areas and leadership positions. It should also contain some deeper information about the firm's identity and aspirations.

This would include:

A mission statement about the firm’s purpose

A vision statement or recitation of medium- and long-term goals for the firm

Important aspects of the firm’s history

Any important philosophies that the firm brings to legal practice

  • Market Analysis

This section should discuss the business trends affecting the firm’s important practice areas and clients. It should evaluate any technologies that are affecting your practice area and consider how the firm may leverage or keep up with them. This section should also devote substantial energy to identifying the firm’s major competitors in each of its important practice areas and comparing their services to the firm’s.

In this section, identify the firm’s major clients, breaking them down by important characteristics like size, location, industry and practice groups used. Go through a similar exercise for major client prospects and targets. It’s worth examining how the firm can improve its relationships with both of these groups.

Important financial information includes the firm’s fixed and variable costs, backward- and forward-looking revenue, realization rate, collection rate, monthly overhead, assets and liabilities. A 12-month profit and loss projection should be included and could be considered the heart of the business plan.

There is a great amount of detail that any firm could get into on this front. Don’t get overwhelmed by it; at the same time, this is some of the most important information in the business plan, so it’s not advisable to gloss over it.

This section will address key operational issues like the office lease, equipment purchases and technology plans. You may assign roles to various staff members for operational issues.

Think about what marketing the firm currently performs, how it obtains clients and what marketing goals it wants to set for the future.

After completing these and any other sections the firm might want to address, then go back and draft an executive summary to be included at the beginning of the business plan document. The summary should be professional, but don’t be afraid to give it some optimistic energy. After all, with your eyes on the business management fundamentals of your firm, things should be looking up for the future.

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do lawyers write business plans

A business plan for lawyers: How to write one and what to include

How To Write Business Plan For Lawyers

  • June 21, 2024

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Jennifer Anderson

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If you’re reading this article, Congratulations! You must be thinking about starting a law firm and are looking for examples of a business plan for lawyers.

Of course, if you’re serious about this prospect, one of the first things you’ll need to do is sit down and draft a business plan. And, as luck would have it, that’s why we’re here today.

In this post, we’re going to walk you through the steps of creating a business plan for your new firm. As Aristotle once said, “For the things we have to learn before we can do them, we learn by doing them.”

Sound advice.

A simple guide for a business plan for lawyers

So, we’ll provide you with the key parts and pieces for creating a law firm business plan along with a sample plan intended to show you how to create your own plan. 

Now, in order to walk you through this, we’ve created a hypothetical firm using certain assumptions, which we’ll list below. Your new firm almost certainly has different factors at play.

That’s alright. We trust you’ll be able to plug in the particulars that suit your business. For now, here’s what our fictional new law firm looks like:

  • This California-based law firm is founded by four partners who were all business owners before going to law school. Using our fictional founders’ last names, we’ll call the firm Smith, Jones, Jackson, & Wyle, LLP.
  • The firm aims to have multiple practice areas including business litigation, labor and employment, technology, and real estate.
  • The target clients will be small-to-midsize regional businesses throughout the state. 
  • The partners’ goal is to hire up to 10 associates over the next five years. 
  • The firm’s main competitors are other small, regional business-focused firms. 
  • Initial marketing ideas include social media, networking with former business contacts, and becoming thought leaders in various areas of the law through blogging and public speaking.
  • The partners envision being highly tech dependent, utilizing CRMs, AI, and other tech tools as much as possible. 
  • The founding partners’ goal is to launch the firm in 6 months and to be profitable within a year.

With those basic facts in mind, let’s break down the various components that we’ll include in our business plan:

1. Executive summary

A business plan for lawyers, like any plan, should start with an e xecutive summary . This section concisely outlines a business plan’s key points, goals, and strategies. Ultimately, it serves as a snapshot for quick understanding and decision-making and should include the following parts:

Mission statement

A Mission Statement is like the elevator speech for your new firm. It charts the course for your goals, objectives, clients – and also quickly lays out your proposed methods for reaching those goals. A sample Mission Statement for our firm might say: 

At Smith, Jones, Jackson, & Wyle, LLP (“SJJW”) we are dedicated to empowering small-to-midsize businesses in California with comprehensive legal solutions. With a foundation built on the rich business acumen and legal expertise of our founding partners, we aim to bridge the gap between business challenges and legal success. Our mission is to provide personalized, effective, and technology-driven legal services that not only address today’s legal needs but also anticipate tomorrow’s challenges. We are committed to becoming trusted advisors to our clients who leverage our unique background as former business owners to offer practical, actionable legal advice. Through innovation, integrity, and a client-focused approach, SJJW strives to achieve excellence in all aspects of our service, fostering long-term partnerships with our clients and contributing to their success.

Here, you will outline the firm’s growth objectives and provide a snapshot of the firm’s operations.

SJJW aims to become the leading legal advisor for California’s small to mid-sized businesses, expand our team with 10 associates within five years, and leverage technology to enhance efficiency and client satisfaction.

Brief overview

Some business plans also include a brief overview of the business. Our hypothetical firm’s overview might look like this:

Founded by four partners with business ownership backgrounds, our California-based law firm specializes in serving small-to-midsize businesses, emphasizing technology-driven solutions and personalized legal services to navigate complex challenges.

2. Firm description

Your law firm description will provide a bit more detail about the make-up of your business. This section should include information on: (1) legal structure and history; (2) location and areas of practice; and (3) vision for the future: 

SJJW is a dynamic legal partnership founded by four seasoned attorneys who are also experienced business owners. Based in California, our firm offers comprehensive legal services tailored to the needs and challenges of small-to-midsize businesses across the state. Our firm practices in four distinct areas: Business Litigation, Labor and Employment, Technology, and Real Estate. With a deep understanding of both the legal landscape and the entrepreneurial journey, our team is uniquely positioned to provide strategic, effective solutions across this range of legal disciplines. As an LLP, we emphasize collaboration, integrity, and innovation, leveraging cutting-edge technology to deliver exceptional service and outcomes for our clients. Our commitment to excellence, combined with our business-savvy approach, makes us a trusted partner for businesses seeking to navigate legal complexities with confidence.

3. Market analysis

The next part of our business plan for lawyers is the market analysis. Your market analysis is where you do the heavy lifting around how your firm fits into California’s extensive legal market. It should include information on your target market, a competitive analysis, and the need for your particular firm within the region. 

Target market

SJJW’s primary target market consists of small-to-midsize businesses in California, spanning various industries such as technology, retail, real estate, energy, and manufacturing. These businesses often encounter unique legal challenges that require personalized attention and expertise. With the state’s diverse economic landscape, there is a substantial demand for legal services that cater specifically to the nuanced needs of these entities, from regulatory compliance and intellectual property protection to labor disputes and contract negotiations.

Competitive landscape

The legal services market in California is highly competitive, with numerous firms vying for the business sector’s attention. Small, regional law firms similar to ours form the bulk of this competition, offering a range of general and specialized services. However, our differentiation lies in the unique blend of legal expertise and real-world business experience possessed by our founding partners. This combination positions us to offer unparalleled insights and practical solutions that resonate with business owners.

Market trends

The increasing complexity of regulatory environments, coupled with the rapid evolution of technology and the digital economy, has led businesses to seek legal partners who are not only advisors but also innovators. There’s a growing trend towards legal services that are highly specialized yet broadly knowledgeable about the cross-functional impacts of legal decisions.

Opportunities

Given our firm’s unique positioning and expertise, significant opportunities exist to capture market share by:

  • Offering specialized services that address the intersection of business operations and legal requirements, such as compliance, data privacy, and e-commerce.
  • Developing niche expertise in emerging areas of law that are particularly relevant to California’s business environment, such as tech startups, renewable energy, and digital media.
  • Leveraging technology to provide more efficient, transparent, and cost-effective legal services, appealing to the tech-savvy and cost-conscious small-to-midsize business sector.
  • Building strong relationships through networking and thought leadership, establishing the founding partners as go-to experts in legal matters relating to business.

Key challenges include establishing a distinct brand in a crowded market, continually adapting to rapidly changing legal and technological landscapes, and ensuring the firm remains accessible and appealing to the target market’s cost and value expectations.

In summary, the market analysis underscores the potential for SJJW to carve out a significant presence in California’s legal services sector for small-to-midsize businesses. By focusing on our strengths and strategically addressing the market’s needs, we can achieve substantial growth and success.

4. Marketing and sales strategy

The marketing and sales strategy is a crucial but often neglected aspect of any business plan for lawyers. This is where you lay out how you’re going to attract clients, convince them to use your firm’s services, and – importantly – how you’re going to retain those clients long term: 

Our objective is to establish SJJW as the premier legal service provider for small to mid-sized businesses in California, leveraging our unique blend of business acumen and legal expertise.

Marketing strategy

Brand positioning

Position the firm as not just legal experts, but as partners in our clients’ business success, emphasizing our founding partners’ background as business owners.

Digital marketing

  • Website : Develop a professional website highlighting our expertise, services, and the unique value we bring to businesses.
  • Content marketing : Regularly publish blogs, articles, and whitepapers on legal issues affecting our target market, positioning us as thought leaders.
  • Social media : Engage with our audience on platforms like LinkedIn and Twitter, sharing insights, legal updates, and participating in discussions relevant to our target industries.

Networking and partnerships

  • Leverage the existing business contacts of our founding partners and actively participate in industry events, seminars, and local business associations to build relationships and referrals.
  • Establish partnerships with complementary service providers (e.g., accounting firms, business consultants) to offer bundled services or referrals.

Public relations

  • Engage in speaking opportunities at industry conferences, webinars, and local business events to increase visibility and establish credibility.
  • Utilize press releases for significant firm milestones, new service offerings, or significant case wins to build brand awareness.

Sales strategy

Client acquisition

  • Implement a CRM system to manage leads and opportunities effectively and utilize  personalized follow-up and engagement strategies.
  • Offer free initial consultations to prospective clients that provide immediate value and foster trust from the first interaction.

Client retention

  • Provide exceptional client service with a focus on transparency, regular communication, and technology-driven solutions for ease of access and efficiency.
  • Implement a client feedback loop to continuously improve services and address client needs proactively.

Cross-selling and up-selling

Once a client relationship is established, SJJW will identify additional legal needs or areas where the firm can provide value. The goal is to make sure all clients are aware of the full range of services offered.

By executing this comprehensive marketing and sales strategy, SJJW aims to rapidly grow its client base while maintaining high levels of client satisfaction and loyalty.

5. Operations plan

An operations plan outlines the day-to-day activities required to run your law firm. It details  things like processes, technology, staffing, and resources needed to achieve business objectives.

To ensure efficient, effective, and client-focused legal service delivery through advanced technology integration and streamlined processes.

Legal operations

Case managemen t: Implement a state-of-the-art Case Management System (CMS) to track and manage all cases efficiently, ensuring deadlines are met, and clients are kept informed.

Document management : Utilize a secure, cloud-based Document Management System (DMS) for storing, retrieving, and sharing documents with clients and within the team, enhancing collaboration and security.

Client communication : Adopt Customer Relationship Management (CRM) software to manage client interactions, ensuring personalized and timely communication across all touchpoints.

Technology integration

Artificial Intelligence (AI) : Leverage AI tools for legal research, document review, and predictive analytics to increase accuracy and reduce turnaround times.

Automation tools : Implement automation in routine tasks such as billing, client notifications, and document drafting to improve efficiency and reduce the risk of human error.

Human resources

Team structure : SJJW will initially be comprised of four partners and support staff, with plans to expand to up to 10 associates within five years. It is our goal to foster a culture of teamwork and continuous learning.

Professional development : Invest in ongoing training and professional development opportunities for all staff, ensuring the team remains at the forefront of legal and technological advancements.

Client service

Service delivery model : Offer flexible service models including traditional hourly billing and alternative arrangements like flat fees for defined services.  

Client feedback system : Implement a system for collecting and acting on client feedback to continually refine and improve service offerings.

Compliance and quality assurance

Regulatory compliance : Ensure strict adherence to legal and ethical standards, with regular reviews of compliance protocols, especially regarding data protection and privacy laws.

Quality control : Establish a quality control framework to review legal work internally, guaranteeing the highest standards of legal service.

6. Financial plan

Your financial plan is one of the most critical aspects of a business plan for lawyers. There are too many factors at play here for us to create a meaningful sample plan for our hypothetical firm, but here are the details you definitely want to include in your plan:

Initial capital and use

Detail how the initial capital provided by the founding partners will be allocated (e.g., office space, technology, marketing, initial payroll).

Financial projections

Include projections for revenue, expenses, and profitability for the first 1-5 years. Use realistic assumptions based on the size of your target market, expected client acquisition rates, billing rates, and operational costs. 

Revenue projections

Estimate potential earnings from client work, taking into account the growth in associate numbers and the capacity to handle more cases and matters.

Expense projections

Forecast expenses, including salaries, technology investments, office overhead, and marketing costs.

Profitability analysis

Calculate when the firm expects to become profitable. Our hypothetical firm, for example, aims to be profitable within the first year.

7. Legal and regulatory compliance

What kind of lawyers would you be if your plan didn’t include a section on legal and regulatory compliance ? A business plan for lawyers should always cover compliance, particularly in an environment where it is becoming increasingly important for firms to accommodate it .

This is where you’ll provide details regarding legal practice, data protection, and any relevant regulations for your areas of practice.

To uphold the highest standards of legal and ethical integrity by ensuring full compliance with all applicable laws, regulations, and professional guidelines governing the practice of law in California.

Compliance framework

State Bar of California : SJJW will strictly adhere to the rules and ethical standards set forth by the State Bar of California, including those related to client confidentiality, conflict of interest, and professional conduct.

Data protection and privacy : We will implement powerful data security measures compliant with the California Consumer Privacy Act (CCPA) and any relevant federal laws. We will also protect client information through encrypted storage and secure communication channels.

Business operations compliance : As an LLP, SJJW will maintain compliance with California’s business operation laws, including partnership registration requirements, financial reporting, and tax obligations.

Employment law : It is our steadfast aim to follow all state and federal employment laws, ensuring fair labor practices, workplace safety, and equal opportunity employment within the firm.

Continuous monitoring and education

Regular training : We will conduct or host ongoing legal education and training for all partners and staff on compliance matters, changes in the law, and best practices in legal ethics and data protection.

Compliance audits : The firm will perform regular internal audits to review and assess compliance with all legal, regulatory, and ethical standards, identifying and rectifying any potential issues proactively.

Risk management

Professional liability insurance : Before beginning operations, SJJW will secure comprehensive professional liability insurance to protect the firm and its clients against potential legal malpractice claims or other claims.

Conflict of interest checks : The firm will implement a rigorous system for conducting conflict of interest checks for every new client and case, with the goal of preventing ethical breaches and maintaining the firm’s integrity.

Client confidentiality and trust

Confidentiality protocols : SJJW will establish strict confidentiality protocols to protect client information, including secure document handling procedures and restricted access to sensitive data.

Client trust accounts : In accordance with California law, the firm will manage client funds with the utmost care, adhering to the State Bar’s guidelines for handling and accounting for trust accounts, ensuring transparency and accountability.

8. Milestones and timeline

Finally, a business plan for lawyers should include a section that details the timing involved in getting your law firm up and running. Again, there are probably too many details to give an effective sample here, but at the very least, your plan should include the following components:

Launch timeline

Here, you’ll plot out the key steps leading up to your launch date , including legal organization, the establishment of your office space, technology implementation, and initial marketing.

Growth milestones

Lawyers love deadlines and the growth milestones section is a good place to create them. Set specific goals for things like client acquisition, revenue targets, and team expansion to be reached within the first year and beyond.

Obviously, your firm’s business plan will include a lot more detail than our hypothetical plan for SJJW. We hope, however, that this sample plan gets you started on an enjoyable journey to starting a successful law firm.

Starting a law firm is a challenging yet rewarding endeavor. A well-crafted business plan for lawyers means getting all the essentials in place to guide your firm’s growth and success.

Get your executive summary, firm description, market analysis, marketing and sales strategy, operations plan, financial plan, and legal compliance all covered before embarking.

With careful planning and execution, you can build a firm that not only meets but exceeds your expectations, providing exceptional legal services to your clients.

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></center></p><ul><li>September 22, 2023</li></ul><h2>How to Write Your Law Firm Business Plan (with Template)</h2><p><center><img style=

Starting a law firm can be a rewarding and lucrative venture, but it requires careful planning and strategy. A well-crafted business plan is a crucial tool for any law firm looking to establish itself, secure funding, or grow its practice. The business plan will serve as a roadmap, outlining the law firm’s objectives, strategies, and unique selling proposition

Law Firm Business Plan - Digitslaw

Why Every Law Firm Needs a Business Plan

A well-structured business plan is imperative for every law firm, regardless of its size or specialization. While legal expertise is undoubtedly crucial, having a clear vision and strategic direction is equally essential. A business plan serves as a guiding light, defining the firm’s mission, values, and long-term goals. This clarity is vital for aligning the entire firm towards a common purpose, ensuring that everyone understands the objectives and the path to achieving them. Without a business plan, a law firm may find itself navigating uncertain waters, reacting to circumstances rather than proactively pursuing its ambitions.

The Key Components of a Law Firm Business Plan

A well-structured law firm business plan consists of several key components, each playing a crucial role in guiding the firm’s operations and ensuring its long-term success. Here are the essential elements of a comprehensive law firm business plan:

  • Executive summary
  • Law firm description
  • Market analysis
  • Organization and management
  • Services 
  • Marketing Strategy
  • Financial plan
  • Start-up budget

Section One: Executive Summary

The executive summary is arguably the most critical section of your law firm’s business plan. While it appears at the beginning, it is often written last, as it serves as a concise yet comprehensive overview of your entire plan. This section should capture the reader’s attention, providing them with a clear understanding of your law firm’s essence, mission, and what to expect from the rest of the document. In your executive summary:

  • Introduce your law firm: Briefly describe your law firm’s name, location, and legal specialization.
  • Mission and vision: State your firm’s mission and vision, highlighting your commitment to serving clients’ legal needs effectively.
  • Your unique selling proposition: Clearly state your USP, and present what is unique about your firm that will ensure success.

The executive summary sets the stage for your entire business plan. It should be a concise yet compelling introduction to your firm’s mission, values, and potential. If crafted well, it can grab the reader’s attention and encourage them to explore other sections in detail. If you feel overwhelmed by this, you can write this section last. 

Section Two: Law Firm Description

This section of your business plan provides a deeper dive into your firm’s background, history, legal specializations, and legal structure and ownership. This section should provide a concise yet informative overview of your firm’s identity and history. Here’s what this section should cover:

  • Mission Statement: Briefly reiterate your law firm’s mission statement. This statement should encapsulate your firm’s overarching purpose and guiding principles.
  • Geographic Location: State out the physical location of your law firm’s office(s). This should include the city or region where your primary office is situated.
  • Legal Structure and Ownership: State the legal structure of your law firm, whether it’s an LLC, S-Corp, or another legal entity. This choice is a fundamental aspect of your business model, influencing ownership, liability, and taxation. If your firm’s ownership is not that of a sole proprietorship, provide details on the ownership structure. Explain how the chosen structure aligns with your firm’s business model, decision-making processes, and long-term goals.
  • Firm History: Provide the history of your law firm. Highlight key milestones, achievements, and notable moments in your firm’s journey. If your firm is well-established, briefly summarize its history, showcasing your accomplishments and contributions to the legal field.

Remember that brevity is key in this section. Don’t spend too much time, just touch on important points and achievements. 

Section Three: Market Analysis

A well-conducted market analysis will not only demonstrate your understanding of the legal industry but also inform your law firm’s strategies and decision-making. It goes beyond understanding your competition; it delves deep into your potential clients’ needs and expectations. 

Through market analysis, you can segment your target market based on demographics, industry, legal needs, and preferences. This segmentation allows you to tailor your services to meet the specific needs of different client groups. It also helps you identify the pain points and challenges that potential clients face. By understanding their concerns, you can offer solutions that directly address these pain points.

Your market analysis should also reveal the pricing strategies of your competitors. By benchmarking your pricing against theirs, you can position your services competitively. You can choose to price higher if you offer unique value or lower if you aim to attract price-sensitive clients. Your market analysis should reveal areas where your competitors may be falling short. Use this information to frame your services as the solution to these weaknesses. For example, if competitors have slow response times, emphasize your firm’s commitment to timely communication. 

Showcase your firm’s USPs that directly address client needs and preferences. If you excel in a particular practice area, have a reputation for excellent client service, or offer innovative fee structures, use these strengths to attract your preferred clientele. Ultimately, a well-documented market analysis not only informs your law firm’s business model but also guides your approach to client acquisition, pricing, and service delivery. It ensures that your legal services align with client expectations and positions your firm for success in a competitive legal industry

Section Four: Organization and Management

Law Firm Business Plan

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This section provides a clear picture of your firm’s internal structure and leadership. Name the key stakeholders in your law firm and what they bring to the table. Highlight any unique experiences or expertise that each partner brings to the firm. This could include prior work at prestigious law firms, involvement in landmark cases, or specialized knowledge in a specific area of law. Explain how these experiences set your firm apart and enhance its capabilities. You can also include an organizational chart that visually represents your law firm’s structure. This chart should showcase the hierarchy, roles, and reporting lines within the firm. By including the names, educational backgrounds, unique experiences, and organizational chart, you paint a comprehensive picture of your law firm’s leadership and structure. This not only builds confidence in your team’s capabilities but also showcases the depth and expertise of your staff to potential clients, partners, or investors.

Section Five: Services

This section is the core of your law firm business plan. Here, you will go into detail about all aspects of your services. Present in simple words:

  • The problem(s) your law firm is addressing and your approach to how to alleviate those pain points? Answer these questions, and provide in detail how your firm is in the best position to tackle this problem. 
  • The solution(s) you are providing. This should describe how your law firm resolves your prospective market’s needs. This should include the work you do, and the benefits that each client will receive if they work with your firm. 
  • Your law firm competition.  This should describe what advantages your law firm has over your competitors? What you do differently when providing your solutions and how your clients will gain additional benefits when they work with your law firm.

Section Six: Marketing Strategy

As you craft your business plan, keep these four essential questions in mind:

  • What Is Your Firm’s Value Proposition? Clearly define what sets your law firm apart from others. This should guide your marketing and sales strategies, emphasizing the unique value you offer to clients.
  • Who Is Your Target Audience? Identify your ideal client profile. Understanding your target audience helps tailor your marketing efforts to reach those most likely to benefit from your services.
  • What Are Your Growth Goals? Set specific, measurable growth goals for your firm. These goals should inform your sales and marketing strategies, outlining how you plan to achieve them.
  • How Will You Measure Success? Determine key performance indicators (KPIs) to measure the success of your marketing and sales efforts. Whether it’s tracking client acquisition rates, website traffic, or revenue growth, having measurable metrics will help you gauge your progress and make informed adjustments.

It is also valuable to perform a SWOT analysis (Strengths, Weaknesses, Opportunities, Threats) to assess your law firm’s internal and external factors. Describe your online marketing efforts, including your website, social media presence, and email marketing campaigns. Explain how you plan to leverage marketing  to reach and engage potential clients effectively. You should also define your pricing structure and fee arrangements. This may include hourly rates for specific legal services, retainer agreements for ongoing representation, or flat fees for standardized services. 

Section Seven: Financial Plan

If you want to expand your law firm and ensure a steady income, it’s essential to create a financial strategy for your practice. While you might not have all the answers regarding your firm’s finances, provide comprehensive details. Your goal should be to establish a financial plan, particularly for the initial year of your firm’s operation.

Law Firm Business Plan - DigitsLaw

Provide comprehensive financial projections that cover the anticipated income, expenses, and cash flow for your law firm. These forecasts should offer a clear picture of how your firm expects to perform financially. You should also Incorporate income statements, which show your firm’s revenue and expenses, balance sheets that detail your assets and liabilities, and cash flow projections, which illustrate how money moves in and out of your business. These financial statements offer a holistic view of your firm’s financial health.

Explain the assumptions underlying your financial projections. This may include factors like growth rates, market trends, client acquisition strategies, and pricing models. Describe your strategies for achieving growth and how they translate into financial outcomes. This section is critical for demonstrating your law firm’s financial preparedness and sustainability. Investors, lenders, or partners will scrutinize these sections to assess the viability of your firm, making it essential to provide detailed and well-supported financial information.

Section Eight: Start-up Budget

When developing a business plan for your law firm, it is essential to create a realistic startup budget. This involves carefully considering various initial and ongoing expenses and factoring them into your revenue objectives. Here are some instances of expenses to incorporate into your budget:

  • Hardware costs, such as laptops, printers, scanners, and office furniture.
  • Office space expenses, whether you plan to rent space or work from home.
  • Malpractice insurance fees.
  • Staff salaries, including potential hires like administrative assistants or paralegals.
  • Utility expenses, covering phone and internet services, among others.
  • Expenses on practice management software or other tech tools

After itemizing these costs, review them thoroughly. Clearly state the total amount of funding you require to start and sustain your law firm. Explain how this funding will be allocated, including how much goes into covering startup costs and how much is reserved for ongoing operations. Be specific about the purpose of each funding component. 

Additionally, explore tools and solutions that can streamline non-billable tasks, freeing up more time for your legal practice. This not only enhances your overall productivity but also allows you to allocate more time to your legal practice. One exceptional solution that can significantly benefit your law firm operations is a legal practice management software. 

DigitsLaw: The Legal Practice Management Software for Law Firms

DigitsLaw is an all-in-one practice management software that streamlines and simplifies the day-to-day operations of a law firm. Whether you are a small firm or you have law firms in major cities, DigitsLaw can meet the unique needs of your legal practice. Our simple and intuitive tool offers a wealth of features that can make a substantial difference in the success and efficiency of your firm.

Here’s how DigitsLaw can help your new law firm scale:

  • Effortless Case Management: DigitsLaw simplifies case management by centralizing all your client information, documents, and communications in one secure location. This ensures that you have easy access to everything you need, right at your fingertips.
  • Time Tracking and Billing: With DigitsLaw, tracking billable hours and generating invoices is seamless. You can accurately record your time, expenses, and activities, allowing for transparent and error-free billing processes.
  • Conflict Check: DigitsLaw provides a robust conflict check system that assists law firms in maintaining ethical standards and preventing conflicts of interest. By incorporating DigitsLaw conflict check capabilities into your law firm’s workflow, you can enhance your due diligence processes, reduce the risk of conflicts of interest, and uphold the highest ethical standards in your legal practice. 
  • Client Collaboration: Foster better client relationships through DigitsLaw’s client portal . Clients can securely access case information, share documents, and communicate with your firm, enhancing transparency and trust.
  • Legal Document Management: Say goodbye to the hassle of paper documents and disorganized files. DigitsLaw enables efficient document storage, organization, and collaboration, saving you time and reducing the risk of errors.
  • Secure and Compliant: DigitsLaw prioritizes security and compliance, ensuring that your client data and sensitive information are protected at the highest standards.

By leveraging DigitsLaw’s capabilities, you can significantly reduce administrative overhead, minimize errors, and provide a more streamlined and responsive experience for your clients. It’s a strategic investment that will pay dividends as your firm grows and prospers.

Sample Business Plan and Fillable Template

If you’re in the early stages of creating your business plan, we’ve prepared an example that can serve as a reference. You can also download a blank version of our template here. Remember to tailor your plan to your specific requirements and objectives. 

Download your copy of our law firm business plan template HERE

Final thoughts.

In conclusion, crafting a law firm business plan is not just a formality; it’s a roadmap that guides your firm toward success. Whether you’re launching a new law firm or seeking to revitalize an existing one, a well-thought-out plan helps you.  From defining your firm’s mission and values to conducting a thorough market analysis every section of your plan plays a crucial role in shaping your law firm’s journey. It’s not just about impressing potential investors; it’s about setting clear goals, making informed decisions, and ensuring that your firm is well-prepared for the challenges and opportunities that lie ahead.

As you start planning, remember that your business plan is a living document. It should evolve and adapt as your firm grows and the legal industry changes. Regularly revisit and update your plan to stay aligned with your mission, serve your clients better, and achieve your long-term vision.

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Law Firm Business Plan Template

Written by Dave Lavinsky

law firm marketing plan

Law Firm Plan

Over the past 20+ years, we have helped over 1,000 lawyers to create business plans to start and grow their law firms. On this page, we will first give you some background information with regards to the importance of business planning. We will then go through a law firm business plan template step-by-step so you can create your plan today.

Download our Ultimate Business Plan Template here >

What is a Law Firm Business Plan?

A business plan provides a snapshot of your law firm as it stands today, and lays out your growth plan for the next five years. It explains your business goals and your strategy for reaching them. It also includes market research to support your plans.

Why You Need a Business Plan for a Law Firm

If you’re looking to start a law firm, or grow your existing law firm, you need a business plan. A business plan will help you raise funding, if needed, and plan out the growth of your law firm in order to improve your chances of success. Your law firm plan is a living document that should be updated annually as your company grows and changes.

Sources of Funding for Law Firms

With regards to funding, the main sources of funding for a law firm are personal savings, credit cards and bank loans. With regards to bank loans, banks will want to review your business plan and gain confidence that you will be able to repay your loan and interest. To acquire this confidence, the loan officer will not only want to confirm that your financials are reasonable, but they will also want to see a professional plan. Such a plan will give them the confidence that you can successfully and professionally operate a business.

Finish Your Business Plan Today!

How to write a business plan for a law firm.

If you want to start a law firm or expand your current one, you need a business plan. Below are links to each section of your law firm plan template:

Executive Summary

Your executive summary provides an introduction to your business plan, but it is normally the last section you write because it provides a summary of each key section of your plan.

The goal of your Executive Summary is to quickly engage the reader. Explain to them the type of law firm you are operating and the status. For example, are you a startup, do you have a law firm that you would like to grow, or are you operating law firms in multiple cities?

Next, provide an overview of each of the subsequent sections of your plan. For example, give a brief overview of the law firm industry. Discuss the type of law firm you are operating. Detail your direct competitors. Give an overview of your target customers. Provide a snapshot of your marketing plan. Identify the key members of your team. And offer an overview of your financial plan.  

Company Analysis

In your company analysis, you will detail the type of law firm you are operating.

For example, you might operate one of the following types of law firms:

  • Commercial Law : this type of law firm focuses on financial matters such as merger and acquisition, raising capital, IPOs, etc.
  • Criminal, Civil Negligence, and Personal Injury Law: this type of business focuses on accidents, malpractice, and criminal defense.
  • Real Estate Law: this type of practice deals with property transactions and property use.
  • Labor Law: this type of firm handles everything related to employment, from pensions/benefits, to contract negotiation.

In addition to explaining the type of law firm you will operate, the Company Analysis section of your business plan needs to provide background on the business.

Include answers to question such as:

  • When and why did you start the business?
  • What milestones have you achieved to date? Milestones could include the number of clients served, number of cases won, etc.
  • Your legal structure. Are you incorporated as an S-Corp? An LLC? A sole proprietorship? Explain your legal structure here.

Industry Analysis

In your industry analysis, you need to provide an overview of the law firm industry.

While this may seem unnecessary, it serves multiple purposes.

First, researching the law firm industry educates you. It helps you understand the market in which you are operating.

Secondly, market research can improve your strategy, particularly if your research identifies market trends.

The third reason for market research is to prove to readers that you are an expert in your industry. By conducting the research and presenting it in your plan, you achieve just that.

The following questions should be answered in the industry analysis section of your law firm plan:

  • How big is the law firm industry (in dollars)?
  • Is the market declining or increasing?
  • Who are the key competitors in the market?
  • Who are the key suppliers in the market?
  • What trends are affecting the industry?
  • What is the industry’s growth forecast over the next 5 – 10 years?
  • What is the relevant market size? That is, how big is the potential market for your law firm? You can extrapolate such a figure by assessing the size of the market in the entire country and then applying that figure to your local population.

Customer Analysis

The customer analysis section of your law firm plan must detail the customers you serve and/or expect to serve.

The following are examples of customer segments: businesses, households, and government organizations.

As you can imagine, the customer segment(s) you choose will have a great impact on the type of law firm you operate. Clearly, households would respond to different marketing promotions than nonprofit organizations, for example.

Try to break out your target customers in terms of their demographic and psychographic profiles. With regards to demographics, include a discussion of the ages, genders, locations and income levels of the customers you seek to serve. Because most law firms primarily serve customers living in their same city or town, such demographic information is easy to find on government websites.

Psychographic profiles explain the wants and needs of your target customers. The more you can understand and define these needs, the better you will do in attracting and retaining your customers.

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Competitive Analysis

Your competitive analysis should identify the indirect and direct competitors your business faces and then focus on the latter.

Direct competitors are other law firms.

Indirect competitors are other options that customers have to purchase from that aren’t direct competitors. This includes accounting firms or human resources companies. You need to mention such competition as well.

With regards to direct competition, you want to describe the other law firms with which you compete. Most likely, your direct competitors will be law firms located very close to your location.

For each such competitor, provide an overview of their businesses and document their strengths and weaknesses. Unless you once worked at your competitors’ businesses, it will be impossible to know everything about them. But you should be able to find out key things about them such as:

  • What types of customers do they serve?
  • What types of cases do they accept?
  • What is their pricing (premium, low, etc.)?
  • What are they good at?
  • What are their weaknesses?

With regards to the last two questions, think about your answers from the customers’ perspective. And don’t be afraid to ask your competitors’ customers what they like most and least about them.

The final part of your competitive analysis section is to document your areas of competitive advantage. For example:

  • Will you provide better legal advice and services?
  • Will you provide services that your competitors don’t offer?
  • Will you provide more responsive customer interactions?
  • Will you offer better pricing or flexible pricing options?

Think about ways you will outperform your competition and document them in this section of your plan.  

Marketing Plan

Traditionally, a marketing plan includes the four P’s: Product, Price, Place, and Promotion. For a law firm plan, your marketing plan should include the following:

Product : In the product section, you should reiterate the type of law firm company that you documented in your Company Analysis. Then, detail the specific products you will be offering. For example, in addition to in-person consultation, will you provide virtual meetings, or any other services?

Price : Document the prices you will offer and how they compare to your competitors. Essentially in the product and price sub-sections of your marketing plan, you are presenting the products and services you offer and their prices.

Place : Place refers to the location of your law firm company. Document your location and mention how the location will impact your success. For example, is your law firm located in a busy business district, office building, etc. Discuss how your location might be the ideal location for your customers.

Promotions : The final part of your law firm marketing plan is the promotions section. Here you will document how you will drive customers to your location(s). The following are some promotional methods you might consider:

  • Advertising in local papers and magazines
  • Reaching out to local websites
  • Social media marketing
  • Local radio advertising

Operations Plan

While the earlier sections of your business plan explained your goals, your operations plan describes how you will meet them. Your operations plan should have two distinct sections as follows.

Everyday short-term processes include all of the tasks involved in running your law firm, including filling and filing paperwork, researching precedents, appearing in court, meeting with clients, etc.

Long-term goals are the milestones you hope to achieve. These could include the dates when you expect to file your 100th lawsuit, or be on retainer with 25 business clients, or when you hope to reach $X in revenue. It could also be when you expect to expand your law firm to a new city.  

Management Team

To demonstrate your law firm’ ability to succeed, a strong management team is essential. Highlight your key players’ backgrounds, emphasizing those skills and experiences that prove their ability to grow a company.

Ideally you and/or your team members have direct experience in managing law firms. If so, highlight this experience and expertise. But also highlight any experience that you think will help your business succeed.

If your team is lacking, consider assembling an advisory board. An advisory board would include 2 to 8 individuals who would act like mentors to your business. They would help answer questions and provide strategic guidance. If needed, look for advisory board members with legal experience or with a track record of successfully running small businesses.  

Financial Plan

Your financial plan should include your 5-year financial statement broken out both monthly or quarterly for the first year and then annually. Your financial statements include your income statement, balance sheet and cash flow statements.

Income Statement : an income statement is more commonly called a Profit and Loss statement or P&L. It shows your revenues and then subtracts your costs to show whether you turned a profit or not.

In developing your income statement, you need to devise assumptions. For example, will you file 25 lawsuits per month or sign 5 retainer contracts per month? And will sales grow by 2% or 10% per year? As you can imagine, your choice of assumptions will greatly impact the financial forecasts for your business. As much as possible, conduct research to try to root your assumptions in reality.

Balance Sheets : Balance sheets show your assets and liabilities. While balance sheets can include much information, try to simplify them to the key items you need to know about. For instance, if you spend $50,000 on building out your law firm, this will not give you immediate profits. Rather it is an asset that will hopefully help you generate profits for years to come. Likewise, if a bank writes you a check for $50,000, you don’t need to pay it back immediately. Rather, that is a liability you will pay back over time.

Cash Flow Statement : Your cash flow statement will help determine how much money you need to start or grow your business, and make sure you never run out of money. What most entrepreneurs and business owners don’t realize is that you can turn a profit but run out of money and go bankrupt.

In developing your Income Statement and Balance Sheets be sure to include several of the key costs needed in starting or growing a law firm:

  • Location build-out including design fees, construction, etc.
  • Cost of licensing, software, and office supplies
  • Payroll or salaries paid to staff
  • Business insurance
  • Taxes and permits
  • Legal expenses

Attach your full financial projections in the appendix of your plan along with any supporting documents that make your plan more compelling. For example, you might include your office location lease or your certificate of admission to the bar.  

Putting together a business plan for your law firm is a worthwhile endeavor. If you follow the template above, by the time you are done, you will truly be an expert and know everything you need about starting a law firm business plan; once you create your plan, download it to PDF to show banks and investors. You will really understand the law firm industry, your competition, and your customers. You will have developed a marketing plan and will really understand what it takes to launch and grow a successful law firm.

Don’t you wish there was a faster, easier way to finish your Law Firm business plan?

OR, Let Us Develop Your Plan For You

Since 1999, Growthink has developed business plans for thousands of companies who have gone on to achieve tremendous success.   Click here to see how Growthink’s professional business plan consulting services can create your business plan for you.

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Writing a Business Plan for Law Firm – Law Firm Business Plan Sample

Business plans for lawyers.

New York City Bar Association Small Law Firm Committee

Writing a Business Plans for Lawyers – The Non-Financial Side

1 Why write a law firm business plan?

First and foremost, it’s a Management Tool, It f orces you to think through important issues you may not otherwise consider The recipe to grow your law practice

  • A roadmap, albeit a changing one, with milestones to help reach goals you already know and have yet to define
  • A sales tool to obtain financing
  • A sales tool when looking to form a partnership or join one
  • Some parts of a business plan include stating the obvious, but should not be overlooked because they still form a part of the whole
  • As you write it, ideas come, strategies unfold, beliefs you may have had change
  • It also changes your mindset. You’re no longer thinking about starting a business, you’re now in the process of starting a business.
  • If you write a business plan and put it away in a drawer you have not written one that is feasible or is going to do you any good. Continual updating – whether semi-annual, annual, biennial, whichever is best for you – is your own set of checks and balances.

If you are going to buy a book, look for one that offers general advice and suggestions applicable to all businesses. And, if you choose a software package, eliminate the “techy” things like their numbering system; that is a dead giveaway that you’re using a software program. Also, eliminate sections that are irrelevant!

Suggestion: Don’t just buy one from an online bookstore. Take the time go through a table of contents and thumb through.

Examples available from Barnes & Noble:

  • Alpha Teach Yourself – Business Plans in 24 Hours by Michael Miller
  • Successful Business Planning in 30 Days TM, 3/ed, Peter Patsula
  • The Executive Summary
  • Analysis of Your Market
  • Description of Your Firm
  • Competitors
  • Your Marketing Strategy

No set formula for a successful practice

Before developing a plan for a lawyer, answer the following:

  • Identify your practice niche(s)
  • What skills and experience you bring to your practice
  • What legal structure to use: sole proprietorship, PC, partnership, LLP, etc.
  • What clients you currently have and might potentially acquire
  • What clients you want
  • What business and social contacts you have
  • What other attorneys you can call upon to fill in practice gaps
  • How your firm’s records will be kept
  • What equipment and supplies will be needed
  • What library and other information sources will be needed
  • What insurance will be needed
  • What other resources will be needed
  • How you will compensate yourself
  • Review your current finances re assets, current cash flow, expenses
  • What financing may be needed
  • What financial assets do you have
  • What banking accounts will be needed
  • Review your current non non-financial resources
  • Identify your market
  • Describe your startup plans
  • Where will your office be located
  • What will the name of your firm be

2 The Executive Summary

For some businesses this is the most important part of the business plan because it summarizes what the company does, where it is going and how to get there. Therefore, it must describe the company, the “product” and the market opportunities concisely.

It is written after the plan is complete but is the first and, sometimes, most important part read by investors.

How important this is for a legal business plan depends on your long and short term goals, e.g., whether they are to grow a partnership, join a firm, build up a practice that is enticing for acquisition by a larger firm, etc.

In order to provide that summary, go through a number of exercises:

  • Mission statement – the firm’s purpose and what it will do
  • Major goals
  • Objectives/milestones needed to achieve those goals
  • Vision statement – where you want to go and what you want your firm to become, not just 20 years down the road but where you want to be three or five years from now
  • List what is out of your control e.g., nature of the law business, direction of the marketplace, competition, mergers and acquisitions among clients, and competitors, attorneys and firms already in place
  • Analyze opportunities to face and threats
  • List your firm’s specific capabilities and whatever you believe you can offer that is unique
  • If you are not a solo practitioner, who is the management
  • What is the legal organization
  • What technology will you be capitalizing on
  • What is the marketing potential
  • Describe your basic strategies based on the information you have learned about the legal business, your competition and applicable markets within your field.
  • Provide the basis for why you believe your strategy is the right one for your firm.
  • What markers will you use to change direction
  • Outline what your firm needs to make that strategy succeed
  • Financial projections
  • Back up of those projections with assumptions (so that they can be adjusted as necessary)
  • Summary of revenues by month for at least three years
  • Balance sheet
  • Cash flow statement
  • What actions you’re going to take to carry out the plan
  • What changes will be needed or skills acquired to put the plan to work

3 Analysis of Your Market: The Legal “Business” that Affects You

Purpose: an accurate understanding of trends affecting law practice in general and your specializations, client demographics, client universe.

Keep track of impact factors, obstacles, opportunities and threats to better forecast and build the strategies.

  • Identify who and what firms dominate and where they are
  • What new technologies have already and may yet change the way your practice is done
  • What laws and regulations have and may yet change your practice
  • Describe the overall demand for your specialties
  • What else besides price affects your client decisions to use your services
  • What clients (people or companies) can influence your areas of practice
  • Large firms, mid size, boutiques, solo practitioners
  • In-house attorneys
  • Government attorneys
  • Divide into primary, secondary and, if necessary, tertiary levels
  • Is there substitution, e.g., do it yourself or outsourcing to India
  • List what is available and how it affects your practice
  • Describe how technology is affecting your kind of practice
  • Describe who controls the technologies that affect
  • Describe how you keep up with new technology
  • List all the things that will make it difficult for you to practice in your expertise and locale
  • List the things that will make your exit from you area of expertise or your transition to a different one difficult
  • What can relationships with suppliers do for you
  • Could a supplier become a competitor, e.g.; for articles you write
  • Colleagues and competitors
  • Professional associations
  • Community associations
  • Social and business organizations
  • Current and former clients
  • Former employment colleagues
  • Pro bono colleagues
  • What ways improve your position with clients
  • Does pricing affect
  • What else affects your relationship
  • What kind of follow up do you do after meeting someone who may be a potential client or who can introduce you
  • Writing articles
  • Giving speeches
  • How can you use your other relationships
  • What are the overall costs that affect your hourly, daily or matter rates?
  • Profit margins
  • What do suppliers of your technology, research, information, etc. offer by way of pricing, discounts
  • Are there long term agreements that can be to your advantage/disadvantage
  • Elasticity of demand for the rates you charge
  • If on a regular retainer, are you realizing 100% of your hourly rate, or more/less
  • Identify where the biggest costs of your practice come from
  • Identify fixed and variable costs
  • How to gain economies of scale
  • Identify where you can lower costs
  • Is the profit margin you’re working with the right one for your practice
  • Describe the size of your primary market
  • List the niche markets that can use your expertise
  • Is your kind of practice a growing or shrinking market
  • Identify new growth opportunities in your areas of expertise
  • Economic slowdowns
  • Changing statutes, regulations and decisions
  • Social pressures
  • By product, industry, size, geography
  • Membership lists of trade organizations
  • List of conference attendees
  • By referral of current clients
  • By referral of colleagues, bar association, etc.
  • By referral from competitors with conflicts
  • What untapped market is there
  • What underserved market is there
  • Trade associations made of small companies in the same field
  • Part time general counsel for small companies
  • Trade associations you can join and committees you can volunteer for

4 Describing and Analyzing Your Own Firm

  • It’s not just a law firm.
  • What’s the general history
  • When was it formed and why
  • What is your mission
  • What are your goals
  • What direct experience do you have? Your partners?
  • How relevant is your experience to the current world?
  • How often do you talk to prospective clients
  • What do you current clients feel about you
  • What is the maximum amount of business you can handle yourself without farming it out
  • To whom can you farm
  • Who is your backup when you are too busy, traveling on business, on vacation, sick
  • What is unique about you or your practice
  • Describe the areas you focus on and want to focus on
  • What are the ancillary areas of law that often or usually involved or triggered by your focus area
  • What need does your expertise serve
  • What are the advantages and disadvantages of your areas of expertise
  • Identify your own strengths and weaknesses
  • Who are your clients
  • Who among your clients makes the decisions to use your services
  • What stage of business development are your clients in
  • How sophisticated/knowledgeable are your clients
  • Are your clients street smart and/or business savvy
  • Do they use more than one lawyer at a time
  • Long term objectives
  • Short term objectives
  • What problems do you face
  • What problems do your clients face
  • What do you consider milestones
  • What are the legal (statutory, regulatory & case law) trends that will affect it
  • What are the technological trends that will affect it
  • What are the economic trends that will affect it
  • What potential risks and opportunities to be faced?
  • Do you use innovative technology
  • Do you offer superior client care/service
  • Is your hourly, daily, or matter pricing lower than the “norm”
  • Is there a small group of firms or attorneys who offer the same expertise or specialization
  • Are you well known for a book, a speech, an article, news coverage, etc.
  • Are you a trade association or bar association director or active participan
  • Do a SWOT Analysis – Strengths, Weaknesses, Opportunities, Threats

Strengths & Weaknesses are vis à vis your competitors, rather than your own history Focus on current competition and potential competition

  • Are there advantages to your expertise areas
  • What do you enjoy doing
  • What resources to you have access to
  • What do others see as your strengths
  • What can you improve
  • What don’t you do well
  • What should you avoid
  • Do others perceive a weakness you don’t agree with
  • Are your competitors doing better than you
  • How can you meet a potential client
  • What are the good opportunities – are they new areas, new statutes & regulations, etc.
  • How can changes in technology help you
  • How can changes (or no changes) in government policy affect your area of expertise
  • Are there changes in social patterns or lifestyle that can help
  • What opportunities can open if a weakness is eliminated
  • Family/emotional/physical challenges
  • Technological challenges
  • What is your competition doing you are not
  • How can technological changes threaten you

5 Competitive Analysis and Target Market

  • List law firm/solo practice trends
  • List direct competition
  • List indirect competition
  • Describe the extent of the unserved market for your kind of legal services
  • Who is your client/customer
  • What is your price
  • Profile your primary customer
  • Traits: geographics, demographics, psychograhics
  • List client needs
  • Describe how your fill those needs
  • List primary, secondary and tertiary competitors
  • What services do they offer in addition to yours
  • What do they charge
  • How do competitor firms sell their services
  • What are the competitor strengths
  • What are the competitor weaknesses
  • What size competes with you
  • What other specialties do they offer
  • Who are they representing
  • What is their pricing
  • What are their operational strengths and weaknesses
  • Are they adequately financed
  • How do your competitors advertise or promote themselves
  • What are their conflicts
  • How does your competition market itself
  • Competitive Identification
  • Direct competitor – offers the same benefit
  • Indirect competitor – services the client can get instead of yours
  • Visit and read competitor websites and their advertising, including separate websites by individual partners
  • Subscribe to competitor law firm online or other newsletters
  • Does it use innovative technology
  • Does it offer superior client care/service
  • Is its hourly, daily, or matter pricing lower than the “norm”
  • Are they well known for a book, a speech, an article, news coverage, etc.
  • Are they trade association or bar association directors or active participants

Generate similar info for potential clients to help identify the target that will be most interested in you

A marketing plan must have a detailed description of the target market for your services, an analysis of the trends and conditions of that marketplace and how the trends affect that marketplace

  • Total size of targeted market
  • Historical current and projected growth rates
  • What social, economic &political changes could affect it and your services
  • Describe recent developments in the law that affect your areas of expertise
  • Are there identifiable niches
  • What or will be your clients’ needs and wants
  • How will potential customers find out about you
  • What kind of marketing, if any, are your clients and potential clients receptive to
  • What do existing clients like best about your services
  • Are your target clients consumers, businesses or both
  • Demographics, psychographics, legal service purchasing habits
  • When and how does the client decide to use a lawyer & find a lawyer
  • Does your potential client use the Internet, bar association, trade association, business referral, family referral, friend referral, etc. to find a lawyer
  • What is your client’s level of education and occupation
  • Are they Fortune 1000,500, 100, mid size or smaller
  • Is your client industry specialized and do you know that industry
  • Does the client use more than one lawyer or law firm
  • How long does the client take to decide to use a lawyer
  • Does more than one person at the client make the decisions to use a lawyer, and if so who are they
  • Is the person who decides who is going to provide legal services the one who is going to receive those services
  • What influences your client’s decision to retain a lawyer
  • Is using a lawyer optional, a necessity or a luxury
  • Is a lawyer needed all year round, seasonal or ad hoc
  • How and how well do your clients market themselves

6 Marketing & Strategy

Once you analyze your client needs you can build a comprehensive marketing strategy,

  • What is it you intend to accomplish
  • What is the amount of increase in clients and/or billing that you want to achieve
  • Make each goal measurable and explain each one specifically
  • Set each goal to a planned schedule
  • Be able and prepared to assess all components to revise when necessary
  • Compare these goals to what you believe your competitors’ goals to be
  • Tactical objectives = measurable tasks
  • Create client value
  • Name recognition among your clients and potential clients
  • Client retention
  • Attracting partners or merging into a bigger firm
  • Create a timeline for the objectives or events
  • Determine the time frame for the plan, e.g., every six months, every year, etc.
  • Describe the need for your services from the client’s POV
  • Define the impact on the client of your services
  • Ask whether your clients currently obtain this service more cost-effectively than you can provide it
  • Describe what would compel clients to change from the lawyers they are using to you or to add you to their lawyer rosters
  • E.g., how you will use that list of relationships
  • Marketing Mix – Networking, Advertising, Promotion, PR
  • Inserts in papers
  • Bus, taxi, etc. ads
  • Space in professional and trade publications
  • Street banners
  • New resident welcome kits
  • Trade and trade association show directories and handouts
  • Trade and trade association show sponsorships
  • Coupon mailers
  • Press releases
  • Sponsorship
  • CRM (customer relationship marketing)
  • Cost based = cost plus profit margin
  • Cost plus profit = cost plus fixed percentage markup
  • Market based = use the market norm and add or subtract
  • Ask what the highest price your target market can bear
  • Determine the price elasticity for your kind of legal services
  • Should you offer an introductory rate
  • Age of business
  • Premises/location
  • Competition
  • Cost to acquire a client

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  • Sample Business Plans

Law Firm Business Plan

Executive summary image

If you are a lawyer, chances are you have thought of owning a law firm at least once if not more.

After all, having your firm gives you the freedom of taking up projects that you like and working at flexible hours.

But with freedom comes responsibility, and most of us find the thought of doing everything from onboarding clients to taking care of every detail of their case at least in the initial days quite overwhelming.

But don’t worry! It isn’t as scary as it looks. All you need to run a successful law firm is your sharp wit to deal with cases and a well-written law firm business plan to deal with the business side of your profession.

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Free Law Firm Business Plan Template

Download our free business plan template now and pave the way to success. Let’s turn your vision into an actionable strategy!

  • Fill in the blanks – Outline
  • Financial Tables

Industry Overview

The global legal services market was valued at a whopping sum of 849.28 billion dollars in 2020 and is expected to rise at a high rate going forward too.

The main changes in the legal industry have been brought about by the introduction of AI which does proofreading and data research jobs with higher efficiency. This lets the lawyers focus on what really matters.

Also, the security and access systems have become loads better due to cloud computing.

What is Law Firm Business Plan?

A law firm business plan is a document that outlines your business goals and strategies to achieve those goals. It includes your law firm overview, your reason to start your firm, the services you will offer, a budget or funding requirements, and strategies to get and manage your clients.

Why Law Firm Business Plan is Important?

A business plan would help you understand what sets you apart from your competitors, and how you can market your USP to your clients.

It also helps you design strategies to reach out to your clients and manage them. It comes in extremely handy for analyzing the loopholes in your business structure.

Moreover, it helps you identify your strengths and work on your weaknesses.

All in all, It can make managing your business a hassle-free and less chaotic process.

Things to Consider Before Writing a Law Firm Business Plan

Focus on your expertise.

Between juggling business and practice, it is natural that practice gets neglected more often than not. But always keep in mind that though focusing on your business is important it shouldn’t come at the cost of skills you need to develop and upgrade to do well as a lawyer.

Also, it is important to decide on a niche so you can dig deeper and become an expert at handling cases of that kind.

Create a proper website

In today’s world being present and active on the internet is as important for your business as being good at what you do.

A strong web presence helps you reach out to your customers as well as builds your reliability for them.

Build your network

Networking is an important aspect of being a lawyer. From getting new customers, getting updates on the legal world, and even collecting evidence if you are a criminal lawyer, a good network can work wonders for your legal business.

The kind of circle you belong to also has an impact on your reputation and image as a lawyer.

Develop soft skills

We all know that confidence and intellect are a lawyer’s best friends. And although it is an ongoing process to develop these skills, it is good to get a head start before you start your business.

Intellect helps you upgrade and pay attention to detail, and confidence helps you sound more convincing and reliable. Both of which are foundational to a legal business.

How to Write a Law Firm Business Plan?

A law firm business plan would be a combination of segments common to all business plans and segments specific to a law firm.

Before you start writing your business plan for your new law firm, spend as much time as you can reading through some examples of  consulting-related business plans .

Reading some sample business plans will give you a good idea of what you’re aiming for. It will also show you the different sections that different entrepreneurs include and the language they use to write about themselves and their business plans.

We have created this sample law firm business plan for you to get a good idea about how a perfect law firm business plan should look like and what details you will need to include in your stunning business plan.

Chalking out Your Business Plan

Starting your own law firm is an exciting prospect for any lawyer. Having your firm gives you more independence, lets you implement ideas you want to, and most importantly, you get to deal with clients firsthand.

And if you plan on starting your own, do so with a proper business plan.

But you might wonder, why do I need a business plan as a lawyer, isn’t my legal knowledge and years of work enough?

The answer is no.

To run a law firm you need a law degree, but to run a successful business you need a business plan alongside your degree.

Law Firm Business Plan Outline

This is the standard law firm business plan outline which will cover all important sections that you should include in your business plan.

  • Mission Statement
  • Vision Statement
  • Financial Summary
  • 3 Year profit forecast
  • Business Structure
  • Startup cost
  • Market Analysis
  • Market Trends
  • Target Market
  • Market Segmentation
  • Sales Strategy
  • Marketing Strategy
  • Pricing Strategy
  • Personnel Plan
  • Financial Plan
  • Important Assumptions
  • Brake-even Analysis
  • Profit Yearly
  • Gross Margin Yearly
  • Projected Cash Flow
  • Projected Balance Sheet
  • Business Ratios

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Now, let’s understand how you can complete each section of your business plan.

1. Executive Summary

The executive summary forms the first page of your business plan. It acts as a pitch for your business to potential investors and should consist of the following sections.

  • Objective: This gives an overview of what you wish to accomplish with your business. The objective should be clear and solve an existing problem in the market.
  • Vision Statement: This should state what vision you have for your business. How do you want it to function and how far do you expect to reach with it. You can also include how your vision sits with the current market situation.
  • Financial Summary: This section should ideally consist of the history of your finances and their current state. A proper financial summary helps you gain an investor’s confidence and makes it easier for your business to get funded.

2. Company Summary

Next up we have the company summary section, this segment provides an overview of your company’s structure and its functioning.

This section provides a brief description of the following:

  • Legal Structure: This section would describe the legal terms and conditions your firm functions on, as well as the ownership structure of your firm.
  • USP: This would consist of points that set your firm apart from your competitor’s firm.
  • Services: This section will include the services you offer, the legal procedures you are well versed in, all in all, the client base you cater to.
  • Location: This segment covers your area of service and the location of your firm. A clearly stated area of service, helps you reach the right audience.

3. Market analysis

This segment consists of a thorough analysis of the market situation. It can be split up into the following sub-segments.

  • Market Trends: This would consist of all the prevailing trends in the market. It is important to know market trends because it helps your business keep up with the evolving market.
  • Target Market:  This section would consist of a summary of the market you cater to. Clearly defining your niche helps you reach out to your desired customer base.
  • Market Segmentation: In this section, note down the segments present in the market, as well as what segment of the market your business would fit in. This would help you narrow down the number of competitors you have, the strategies you must follow, and the major and additional services you should offer.

4. Strategy and implementations

In this section, you would include various business strategies like:

  • Marketing strategy You can formulate a marketing strategy depending on your target audience and the easiest and most effective ways of reaching out to them. It is important to formulate your marketing strategy based on your USP and your vision statement.
  • Pricing Strategy It is important to formulate a pricing strategy based on the market trends, the nature of the work, and your target audience.
  • Milestones This segment would consist of the various milestones your business would have to reach to achieve your goal and the strategies to help you reach them.

5. Financial Plan

The financial section of your business plan would consist of the following information regarding your business.

  • Financial history
  • Current State of finances
  • Profit and loss

Download a sample law firm business plan

Need help writing your business plan from scratch? Here you go;  download our free law firm business plan pdf  to start.

It’s a modern business plan template specifically designed for your law firm business. Use the example business plan as a guide for writing your own.

The Quickest Way to turn a Business Idea into a Business Plan

Fill-in-the-blanks and automatic financials make it easy.

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Law Firm Business Plan Summary

All of the above segments would help you in creating a well-rounded business plan. Starting your law firm with a well-written business plan can make your growth process faster and smoother.

After getting started with Upmetrics , you can copy this law firm business plan example into your business plan and modify the required information and download your law firm business plan pdf or doc file.

It’s the fastest and easiest way to start writing your business plan.

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Upmetrics is the #1 business planning software that helps entrepreneurs and business owners create investment-ready business plans using AI. We regularly share business planning insights on our blog. Check out the Upmetrics blog for such interesting reads. Read more

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Chapter 3/6

Developing a Business Plan for a New Law Firm

How to Start a Law Firm

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A law firm business plan is the foundation for everything your business does. Without a solid foundation, your firm will lack direction from the very beginning.

Starting a Law Firm Business Plan

A good business plan includes:

  • Vision. Create a picture of what you’re building.
  • Values. Identify the rules to guide your team’s important work. 
  • Law Firm Business Model. What you offer, who you offer it to, and how you’ll deliver your services.
  • Targets and Priorities. Clarify metrics that indicate success.

Law Firm Vision

We worked with a lawyer who was stressed out about his vision. He spent weeks on the assignment because he couldn’t think of a statement that would make his entire office happy. 

During one coaching session , he got that lightbulb moment when we told him that he was making too big of a deal of it. You don’t have to create the most amazing vision that perfectly captures everything you are hoping to build. You do need to start mapping out what you are (and aren’t) trying to create. 

Picture these two lawyers:

  • Lawyer 1 wants to double the size of his team in the next two years so he can handle more cases, help more people, and make more money.
  • Lawyer 2 does not enjoy managing people. She wants to build a technology-based solution that she can offer clients with a recurring monthly price and that is delivered using a few key team members.

Neither vision is wrong. But, how each lawyer will make decisions to build a profitable business will look very different. You need to get a sense if you are trying to build something that looks more like Lawyer 1, Lawyer 2, or Lawyers 3-8. Get it? 

Jot down thoughts now so you know where you’re headed and can start building the guardrails for future decisions.

Law Firm Values

Your values are a living embodiment of the firm culture you’re hoping to create and the approach to work your team shares. They are the guardrails of your business. 

From hiring to client management to a marketing strategy, every decision you make comes from your values. 

Your values are typically 3-6 factual statements that are authentically you. 

Here are some tips on crafting great values:

  • Your values must concretely point to your business. You want achievable values that set your business up for success .
  • Your values must have actual meaning. Like the “be the best lawyer” example, you want to avoid the obvious. Sure, every firm wants to be the best. But what, precisely, does your firm want to do that sets you apart from the crowd?
  • Finally, avoid table stakes values. Honesty, integrity, and hard work are all good works that all companies should have. But, they have nothing to do with your specific goals vs. any other firm.

As an example, here are Lawyerist’s values :

  • Build an Inclusive Community.
  • Experiment Like a Lobster.
  • Grab the Marker.
  • Seek Candor.
  • Grow as People.

Each of these represents the culture of our company (even “ Experiment Like a Lobster ,” which describes our playful and out-of-the-box thinking process). We use these values for all of our decisions, especially hiring. When we evaluate a candidate, we study their fit: Are they open to experimenting? Are they willing to help us build an inclusive community ? Are they eager to lean into candor and compassion ?

Building your vision and values is an essential first step for your business. We can’t tell you how much easier other decisions will flow once you have these documented. You will make better decisions and alleviate some of the anxiety of decision fatigue.

Law Firm Business Model

One of the biggest perks of starting your firm is deciding your law firm business plan and model. You get to take everything you learned in school and while working at other organizations and implement the parts you like. Even better, you get to leave out the details that stressed you out.

This is an excellent place to review your vision and values. Take the time to dream about this. This is often the most rewarding part for new law firm owners. With a smart strategy, you can build your dream firm.

Ask yourself:

  • What kind of place do I want to work in every day? 
  • What kind of clients do I want to serve? Who is my ideal client ?
  • What type of pricing model do I want? 
  • What kind of access to justice issues do I want to tackle?

You get the gist. The questions you can ask yourself here are endless, but use your vision and values to inform your model. For example, if one of your values is “ grow as people ,” you might offer education opportunities for clients in areas related to their cases. 

The important part is, it’s all up to you. This is yours. You get to decide.

Competitive Analysis

As part of finalizing your law firm business model, it can be very helpful to complete a competitive analysis. A competitive analysis not only forces you to define who your competitors are, it gives you a chance to determine what may be missing in the market so that you can address it. 

Lawyers often assume as long as they practice law, there’s a market for what they want to do. Or they think they’re only competing against other lawyers when clients are often drawn to non-law solutions. 

These lawyers are missing a huge opportunity. They aren’t asking clients how they heard about their firm. They’re not trying to figure out what other solutions their clients tried first. They aren’t looking at what clients want and how the market is attempting to respond.

Here are some tips for putting together a competitive analysis:

  • Make a list of competitors. Simple, right? List firms in your practice area/location, your jurisdiction, and who may be serving your ideal client base.
  • List the other ways your clients are solving their problems . Are they use an online service to create their will? Are they asking their cousin’s nephew’s wife, who once worked at a law firm in 1988, for advice? Get creative.
  • Do field research . Ask your friends, family, and current clients what they do when they have a potential legal problem.

Once you’ve collected the data, you can begin the analysis. Think about the strengths and weaknesses of each competitor and the solution you’ve collected. Compare pricing, accessibility, marketing messages, and client service. How does it all compare to your firm? What do you do better? What could you improve?

And keep in mind: This isn’t a one-time deal. You’ll want to stay on top of competitive solutions through Google or social media alerts or by subscribing to industry emails and newsletters. At least once a year, do a complete forensic competitive analysis to see where things have changed.

Targets and Priorities

When you’re first starting a law firm business plan, you may just have a goal of “get my firm up and running.” A good goal! But, as you dream on your initial strategy, it’s helpful to set some initial short-term and excellent long-term goals. Yes, these goals may change as you learn and grow. But, setting goals upfront will give you a path to get started.

Short-term Goals

Look to your initial vision and values for your first goals. If you’re a family law firm that wants to do low-conflict divorces, you might have a client acquisition goal aligned with this.

For example, you could say: In the first six months of my firm opening, I want 50% of my new clients to be low-conflict separations and divorces. You’ll see this goal follows the S.M.A.R.T. formula: Specific, Measurable, Achievable, Relevant, Time-Bound. 

Another short-term goal might be systems-oriented: I want a written client onboarding process documented in my first three months. (If not implemented.)

Think through all the different parts of your business and see if you can achieve one short-term goal.

Long-term Goals

Long-term goals can be a little trickier when you’re first starting. Thinking one, two, or even five years out might seem impossible. But this is where you can begin to dream a little.

A long-term goal might be that in three years, you want a staff of five people, a complete operations manual, 50 new clients a year, and Fridays off each week. 

Remember, these goals might—and likely will—change. But give yourself something to work with in the beginning.

Key Performance Indicators (KPIs)

As you’re starting a law firm business plan, you’ll need  a way to measure your firm’s health. These measurements are called KPIs. They track goals in all parts of your business, from marketing to finances to client acquisition .

Measuring and monitoring your KPIs will allow you to:

  • Monitor the health of your firm . KPIs will enable you to see how well your law firm is performing. For example, KPIs make it easy to track your finances and your firm’s monthly growth.  You’ll see problems and successes quickly and be able to take action by creating new goals or redirecting your team’s efforts.
  • Simplify decision-making . Armed with the above information, you can make informed, rational decisions for everything in your business. You don’t have to guess if a decision is the right one. Instead, you can (and should) measure all variables to make the best decision for your firm’s future.
  • Track your wins. By tracking your KPIs, you track your wins. Monitoring law firm data makes it simple to incentivize your staff’s hard work. After all, when you meet your numbers, everyone benefits.

For example, at Lawyerist, we track KPIs with a color-coded system.

Green means hitting our goal, yellow means we’re on the cusp, and red means not hitting the number. We track weekly, which means when something goes yellow, we can analyze and plan before it goes red.

And, because we track weekly, a one-week red doesn’t mean an emergency. It means we need to take time to discuss, find a cause, and make a plan.

Types of KPIs for Successful Firms

KPIs can cover all aspects of your business, including your finances, client satisfaction, marketing, and business development. Keep in mind, as you start your firm, KPIs will be new to you and can feel overwhelming. So, keep it simple in the beginning. 

Start by picking three business questions you want answered. Find a way to measure that answer that you can track and update without too much work regularly. Then, start measuring. As your firm grows, you’ll develop your KPIs.

Let’s look at some examples.

Financial KPIs

Want to increase your revenue or improve your law firm’s financial health? You’ll want to track some financial KPIs , including (but not limited to):

  • Revenue (cash collected)
  • Monthly amount invoiced to clients
  • Accounts receivable (amount clients owe you)
  • Budgeted expenses

Regardless of your goals, we recommend tracking some basic financial data to keep an eye on the health of your firm. For a quick win, narrow down your financial KPIs to the top three financial numbers  needed to understand your business.

Client Satisfaction KPIs

Your clients are your most valuable assets. Firm success requires that you watch specific metrics involving your clients. 

Client satisfaction KPIs connect to several key law firm growth goals. These include increasing referrals, increasing revenue (happy clients are loyal clients), and improving overall client experience. 

Examples of KPIs to track include:

  • Net Promoter Score (NPS)
  • Client retention rate
  • Speed at which you close cases

Your Net Promoter Score measures whether current or former clients would recommend your legal services to others. A satisfied client is more likely to do so. This metric is most often gathered using a survey at the final delivery of your services.

Other measures, such as closing speed and retention, can give you insights into how happy your clients are with your services. Do you have a lower NPS than you expect? Are you losing clients? If so, your client satisfaction is low, and you could take action to improve it.

Marketing and Business Development KPIs

Is your current marketing strategy working? Without measuring KPIs, there’s no way of knowing. By tracking marketing metrics for your firm, you can see your marketing strategy’s performance and tweak where needed. 

Some of these metrics include:

  • Organic traffic to your website
  • Number of leads generated
  • Conversion rates
  • Acquisition costs/return on investment (ROI)

For example, if you see your website traffic trending down, some fresh content might do the trick. Or, if you see low conversion rates yet high traffic, your website isn’t inspiring potential clients to give you a call. You might need to change your call-to-actions or refresh your website.

Marketing and business development go hand-in-hand—as they’re both critical to achieving long-term growth goals.

Some examples of business development metrics to track include:

  • Number of new clients each month
  • Competitor pricing
  • Sales cycle length
  • Number of leads that turn into consultations

Profitability KPIs and Law Firm Financial Ratios

Every law firm should have a documented long-term financial strategy and profitability model. Any healthy business has a written plan to forecast revenue, expenses, net profit, and cash reserves. To ensure you follow through with your plan, track your firm’s profitability and financial KPIs.

And where should you track these KPIs? Don’t think too hard on that one. At Lawyerist, we use a Google Sheets  spreadsheet with a few simple formulas. Track anywhere that makes sense for your firm .

Next, we’ll outline how to use legal technology successfully.

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Home » How to Write a Business Plan for Your Law Firm

Starting a law firm can be overwhelming – where do you start and how do you know you’re making the right decisions for your business? A business plan can help to guide you as you get your firm up and running and even as it continues to grow. So what goes into a business plan and how do you write one?

Below, we’ll walk you through each step of writing your business plan so you can get your firm on the path to success.

Table of Contents

What Is a Business Plan?

Before we dive into the details of how to write your business plan, let’s talk about what a business plan is. A business plan details exactly what you want to achieve with your firm and how you’ll meet those goals. It should include why you chose to start your firm, what your major goals are, your budget, how you’ll gain clients, and so on.

Why Is It Important?

Although it may seem tedious, taking the time to write out a business plan is a critical step in establishing your firm. It will be your roadmap as you grow your business, helping you stay on track and achieve what you want with your firm. Instead of making decisions on the fly based on gut feelings, you’ll be making educated decisions based on your plan.

It’s important to note that your business plan may not stay exactly the same. As you’re writing it, you may find that certain approaches you had planned to use won’t work. And as your business continues to grow and change, you may find that you need to rewrite certain parts of your business plan.

Draft Your Executive Summary

The first piece of the business plan for your law firm is an executive summary. This summary should be one page long and should give a high-level overview of all the key points of your business plan. Ironically, it may be easiest to draft your executive summary at the end of the business plan writing process.

There are a few key components you should include in your executive summary.

Primary Goals

Take a look at the overall goals you want to achieve with your firm. What does success look like for you, and what kind of impact do you want to make with your business? Why are you launching this firm in the first place, and where do you want it to be in five years?

Examples of goals for your firm can include: “Close twenty-five cases a year,” “Grow to a firm of eight to ten lawyers,” or “Gain a reputation as a top law firm in the area.” Remember, focusing on SMART goals can be helpful during this stage. 

Mission Statement

It’s also important to write a mission statement for your law firm. This statement should be two to three sentences long and should succinctly state your firm’s reason for opening and what it’s trying to accomplish. This may include the sort of service you want to provide for your clients, as well as the impact you want to have on your community.

A sample mission statement may be:

John Smith & Associates fights for the people, working to help accident victims get full and fair compensation for their injuries. Our lawyers are tireless as we gather evidence to support the client’s story and negotiate with insurance companies, and we fight for every single case like it was our own.

Your mission statement will later be published on your website, so make sure it’s written from a client-focused perspective.

Core Values

You’ll need to take some time during your business planning process to write down the core values that you’ll use to guide your company. These are what your employees will think about when interacting with customers and what you’ll refer back to when making decisions. Your core values should reflect both your beliefs as an employer and the goals you laid out for your firm.

An example of core values might include, 

We go above and beyond for our clients, focusing on how this injury impacts their life and doing everything in our power to get them the compensation they deserve. We are always looking for opportunities to improve, and we will never settle for ‘close enough.’ We will stay on the cutting edge of the field, always striving to provide the best, easiest process for our clients.

Unique Selling Proposition

The final piece of your executive summary is your unique selling proposition. There are about 135,000 personal injury lawyers in the United States. Why should your clients choose you over all the other lawyers in your area?

Your unique selling proposition may include the years of experience your team has, any awards you’ve won, and how much you’ve recovered for previous clients. If anyone on your team has experience working on the other side of the industry (e.g., defending insurance companies) that unique perspective can also be a selling point. Overall, this proposition should answer the question, “Why should I hire you to handle my case?”

Write a Firm Description

Your firm description will begin to dive into more detail about how your business will operate and what sort of services you’ll offer.

Location and Areas Served

It’s a good idea to start by discussing where you’ll locate your firm and what areas you’ll serve. Depending on where you live and the number of states you’re licensed in, this can be a relatively broad geographic area. It’s important to find a balance between casting a broad enough net to get a good client pool and stretching yourself too thin.

You may want to pick one central location for your firm that will serve as your headquarters and then expand your areas of service to the surrounding neighborhoods. 

Legal Structure and Ownership

You’ll also need to figure out the legal structure of your business and how ownership will work. Will you operate as an LLC, a partnership, or a sole proprietorship? If you plan to operate as an LLC or a partnership, who will be the members/partners at the time of launch?

A sole proprietorship gives you total control of your business, but it does tie your business assets to your personal assets, meaning you can be held personally liable for debts and obligations of the business. A partnership can give unlimited liability to one partner and limited liability (as well as limited control in the business) to all partners. An LLC protects all owners from full liability and also comes with tax advantages.

Client Approach

This is also the moment to decide how you want to approach client service. This will be the face you present to clients, as well as a guiding principle in your legal strategies. As such, your client approach should be connected to your core values, mission statement, and primary goals.

For example, your client approach might be:

We treat every client’s case as we would like our own to be handled. We are tireless in pursuing justice and will advocate fiercely for our clients with insurance agencies and in courtrooms.

Firm History

Even though this is the beginning of your firm’s operation, it’s still a good idea to write down a history of your firm. Starting this document now will give you something to work from as you continue to document your firm’s story. It can also be a good addition to your website.

At the beginning, your firm history will be a little closer to a bio. Talk about your education, including any honors you received during your undergraduate or law school years. You can also dive into any previous legal experience you have, as well as why you decided to start your own law firm.

Conduct Market Analysis

Now that you have a good grasp on how your firm will be structured, it’s time to turn your attention to where it will sit in the market. This research will give you an idea of how to bring in clients and beat out the competition. It will also help to guide your marketing strategy later on in the business plan.

Industry Description

Start your market analysis by writing a description of your local industry. This should include the current size of the legal market your firm is in, as well as its projected growth over the next few years. How many competitors will you be facing, and how many potential clients will you all be competing for?

Your industry description should include the population of the area you plan to serve, as well as the number of lawyers in your particular niche. Information about how many cases are likely to appear in your area may also be helpful. For instance, if you’re a personal injury lawyer, knowing the number of car accidents that happen each year in your area, as well as how many of those cause severe injuries, can be helpful.

Target Audience

Once you have a better picture of your overall industry, it’s time to start identifying your target audience. You may want to write a target customer profile as part of this process. The more specific you can get with this description, the easier it will be to fine-tune your marketing messaging.

Your target customer description should include your ideal client’s gender, age range, economic status, and circumstances that led them to need a lawyer. You may also include their level of education, the type of job they might hold, whether they have families, and so on. 

Demographic Motivation

With your target customer description nailed down, you’ll want to start delving a little deeper into their motivations. What do they look for in a lawyer, and why do they choose one firm over another? What is their primary goal in pursuing their case, and what will they view as a successful result?

When you understand this motivation, you’ll be able to target your marketing to answer those desires. You can also decide which clients will be a good fit for your firm. When you know what demographic motivation you want to look for in a client, you can refer those who have different motivations to another firm that may be a better fit for them.

Competitive Analysis

At this point in your business plan, you’ll want to take a closer look at your competition. During the industry description section, you should have tallied up roughly how many lawyers in your niche are practicing in your area. Now you’ll need to spend some time digging into the top two or three who will be your primary competition.

Determine which firms provide the same services you do, hold the largest market share in your area, or are located near your offices. Once you have your shortlist of competitors, start doing your research into them, examining how they approach their marketing and branding and what sort of unique value proposition they offer their clients. From there, you can decide how you’ll set yourself apart from them and earn clients’ trust.

Expected Costs

You’ve got your industry, audience, and competition figured out, so now it’s time to turn your attention to finances. You’ll need to know how much to expect to spend per case. This number can vary by market, so it’s a good idea to research expected costs in your area.

Your expected cost calculations should include the expenses you’ll accrue in acquiring the case, as well as the average fees that will go into closing the case. This will help you decide how you need to set up your fee structure when you get to the financial plan stage of your business plan.

Set Up Your Organization and Management Overview

At this stage, it will be time to turn your attention to how your organization will be set up and managed. 

Partners and Staff

The first thing you’ll need to decide is how many partners you’ll have and how many staff you need. Remember, as your firm grows, this number can change. And depending on the size of your firm when you’re just starting out, you may have only yourself as a partner and no staff.

If you do have more than one person in your firm, decide who will be partners and who will be associate attorneys. From there, you can start figuring out how many people you’ll need on staff to support your attorneys – paralegals, intake specialists, administrative assistants, and so on.

Educational Background

At this stage, you’ll also want to start writing bios for all your attorneys. This content will be useful to include on your website, as well as on attorney review websites. You can start by writing up some information about everyone’s educational background.

Begin by discussing your undergraduate education, including what you majored in and any significant accomplishments you earned during that time. Then move on to your law school education. Be sure to include any awards you earned, academic groups you belonged to, and any accolades you received.

After you finish the education section of your bios, it will be time to start outlining your experience. This can start with any clerkships you completed during or after law school. You should also include any internships you participated in, as well as any previous legal jobs you’ve held.

It may sound counterintuitive, but if you have experience working on the opposing side of your field, you may want to highlight that in your bio. For instance, you may be a personal injury lawyer who previously worked in insurance defense or a criminal defense attorney who was previously a prosecutor. Having this experience can give you a unique insight into the tactics your opponents will likely use in court and can be a draw for potential clients.

Qualifications for Leadership

Finally, you’ll want to round off your attorney profiles by discussing the particular qualifications for leadership each partner has. Why are they in charge of the firm, and what particular strengths do they bring to the organization? Do they have previous leadership experience, and what is their management style?

Determine Which Specific Services You’ll Offer

With your organizational chart complete, you’ll need to start determining which specific services you’ll offer.

Problems You Plan to Address

Rather than just listing off services willy-nilly, it’s best to start this section by discussing the problems you want to address with your firm. If you’re a criminal defense lawyer, maybe you want to help people avoid unjust prison sentences. If you’re a personal injury lawyer, you might want to stand up against the insurance companies cheating injury victims out of their rights.

Lay out the problems you want to fix in your community and why. Dig into which injustices rankle the most for you and what you would like to see happen in these cases. Consider which specific pain points your potential clients experience and discuss how you’ll address those issues.

Solutions You’ll Provide

Once you know what problems you want to fix, you can start brainstorming about what solutions you’d like to provide. Make sure to delve into how your solutions will better resolve your clients’ needs and address their pain points. Refer back to the list of problems you just made as you’re deciding what solutions you want to tackle.

It’s also a good idea to discuss the benefits your services will provide to your clients and why they would choose you over another firm. What makes your services unique, and is there a particular niche you plan to focus on?

Overview of Your Competition

The conversation of which service to offer will naturally include discussion of the services your competitors offer. You’ll need to see what services you’ll be competing against, as well as any gaps they may have in their service offerings. If no one else in your area is currently handling a certain type of case, you’ll have a unique opportunity to corner the market.

You should also look for any pain points clients may be experiencing with these specific competitors. Do they have reviews that complain about poor customer service or a misrepresentation of costs? These are opportunities for you to get an edge on your competitors and provide a better experience for clients.

Unoffered Services

At this stage, you will also need to decide which services you don’t want to offer. This may include an entire class of cases or simply cases that don’t meet certain thresholds. Choosing not to offer these services doesn’t mean you’re limiting your business; it just means that you’re focusing on the cases that will bring the best value to your firm.

Establish Your Marketing Strategy

By now, you should be starting to get a good handle on your firm and how it will work. So it’s time to turn your attention to your marketing strategy.

Positioning

Start by taking a look at your unique selling proposition that you drafted and using it to decide what positioning you’ll use for your marketing. Your positioning is the starting point for your marketing and the way you’ll portray your firm to potential clients. This will be connected to your unique selling proposition, your mission statement, your core values, your target client, and your client approach.

Will you position yourself as a reliable, trustworthy legal service provider who will approach each case with compassion and care? Or will you take the stance of a fierce advocate who will be tough on the opposition and go to the mat fighting for your client? The ads you run will be very different depending on what tone you decide to go with.

Promotion Channels

You’ll also need to spend some time thinking about what promotion channels you want to use to market your firm. There are plenty of options, from traditional advertising like television and radio to social media to more creative marketing outlets. You may want to run billboards, bus ads, or even truck ads with companies like InMotion .

Traditional promotion channels can be a great way to reach a broader audience, but they are more expensive. Social media is much more affordable, but you may see a somewhat lower conversion rate. And the more creative outlets may be a little rarer to find, but they can help to reach all new segments of your target market.

Of course, you’ll need to settle on a budget for your marketing efforts. This will impact every part of your marketing strategy, including which channels you use. It will also depend heavily on both your firm size and your location; if you’re in a major city, your marketing budget will need to be a lot bigger than if you’re in a more rural area.

As part of your budget, you need to plan to take a marketing “tax” out of every dollar of revenue you make. A percentage of all these profits should get funneled right back into your marketing. This will help your business to keep growing and will keep your marketing budget on track with that growth.

Before you launch your marketing strategy, you need to decide which key performance indicators you’ll be using to measure your success. You’ll use these as time goes on to tweak your marketing strategy and make sure it’s working well for you. You may need to adjust the channels you’re marketing through, shift your budget, change your messaging, and so on.

There are dozens of KPIs you can track, depending on your particular goals and which marketing channels you’re using. You may want to track your email open rate, your social media engagement rate, your ROI on marketing, your total cost of acquisition per client, and so on. 

Create a Financial Plan

The final step in writing your business plan will be to create your financial plan. This will lay out where all the money in your firm will come from, where it will go, and what the end result will be.

Starting Capital

You may have heard the phrase “You have to spend money to make money,” and that applies to starting a law firm. You need to have some starting capital to get your firm off the ground, and laying out where these funds will come from is an important part of your business plan. 

Start by making a list of financial resources you’ll be drawing on to launch your business. This may include personal savings accounts, loans from family or friends, investments from financial benefactors, or bank loans. Estimate how much money you’ll be able to pull from each source other than loans and then determine how much you’ll need to borrow to get your firm going.

Monthly Operating Costs

Next, you’ll need to estimate how much it will cost you to keep your firm running each month. This will be the starting point to determine how much revenue you’ll need to bring in in order to keep growing and turn a profit.

Your monthly operating costs may include office space rent or mortgage, utilities, insurance, software costs, salaries, and tech maintenance. You may also need to factor in any CLE costs, marketing expenses, branding costs, web design and maintenance, and more. Get as detailed as you can with this section – little details like office supplies or cleaning fees can add up in a hurry.

Number of Cases You Need to Close

Once you have a full estimate of your monthly operating costs, you can start figuring out how many cases you’ll need to close per year to keep up with your costs. Part of this calculation will include estimating how much revenue you’ll earn from each case. You also need to consider how many cases you’ll be able to reasonably handle with the staff size you currently have.

Try to be both specific and realistic in this section. Estimating your revenue will help you ensure that you’re bringing in enough money to stay afloat. Make sure each lawyer in your firm has a large enough caseload to keep them consistently busy without overwhelming them and base your case closure number on that.

Projected Profit and Loss

The final step in writing your financial plan (at least the first draft) will be drawing up a projected profit and loss statement . Your profits will include the net revenue from all the cases you close (your revenue minus any costs you accrued to acquire and close the case). Your losses will include all the operating expenses you listed out earlier. 

Your profit and loss statement can help you figure out how to optimize your firm’s spending. Look for any losses you can cut without compromising the client experience or your firm’s effectiveness. And make sure you’re getting the maximum reasonable profit from your staff and attorneys. 

It’s important to note that this first financial plan you write is far from the last version you’ll write. Your financial plan will need to change as your firm grows and as you get more grounded ideas of what these details look like. Using this framework and updating your financial plan on a regular basis can help you keep your firm on track for success.

Additional Resources

Writing a business plan can help you figure out not only who your firm is and what you want to accomplish with it, but also how it will operate day-to-day. Start by outlining your firm’s goals and describing who you plan to serve. Then conduct some market analysis, set up your organizational structure, decide on what services you’ll offer, establish your marketing strategy, and create a financial plan.

If you’d like to find more resources to grow your firm the smart way, check out the rest of our resource pages. We cover everything from how to manage SEO to PPC advertising and more. And if you’d like to start getting honesty, transparency, and results from your marketing firm, reach out to us at LawRank!

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Your guide to crafting a successful business plan for your law firm

Your guide to crafting a successful business plan for your law firm

Law practices do not often follow the traditional business structure. Sure, lawyers provide their professional services in exchange for money, but because of the nature of their industry, their obligations cannot be based on commercial concerns alone.

Additionally, lawyers want to focus primarily on their professional practice and billable hours (that’s what keeps the light on, after all). This often means that they hardly have the time to properly dedicate towards the business management side of their practices, such as marketing, financial planning, and business development efforts.

And that’s why it’s important to get it right from the very start. In this instance, it means nailing your law firm business plan!

The business plan is where it all begins. This document is essentially your breakdown of how you want your business to run. Every important consideration relating to your business must be clearly outlined here along with your process for dealing with potential issues. To say that the business plan can make or break your company’s growth and profitability is no understatement.

Why a law firm business plan is worth the effort

Regardless of your practice area, starting your law firm with a business plan is simply that smart thing to do. When you have a roadmap of where you want to go (both short-term and long-term), and how you intend to get there, things get done faster. Here’s why putting in the effort to craft a winning law firm business plan is definitely a benefit worth seeking:

1. Improve focus

One of the prevailing challenges in the legal services industry is focus. From time pressures and financial obligations to actual law practice to trying to maintain a healthy work-life balance — there’s no shortage of things that need attention on any given day.

That's why law firms with focused core practice areas are winning in the marketplace. These practice areas must be included in the initial business planning stage and clearly defined in the business plan. There’s not much sense in trying to be all things to every prospective client, especially since it can lead to a lack of identity, in addition to pulling focus in every direction.

It’s not even feasible for established sole proprietorships and small businesses, so how much more when you’re still at the startup phase. A well-designed business plan can focus your firm so you are spending time on things that really matter.

2. Foster accountability from all

Accountability is crucial in business development. When you have a roadmap of how your law firm should operate to achieve its short and long term goals, then it becomes easier to know who is responsible for what. This fosters accountability across the business and keeps everyone aligned to achieving the overall goals of the company.

The business plan also allows the firm to utilize its resources by immediately identifying areas that may need improvement. For example, if your law firm is struggling to attract new clients, then you can check the marketing strategy outlined in your business plan to see if it’s being correctly implemented.

3. Keep strategy and planning simple

A business plan helps you take on a few projects at a time that can be realistically accomplished. This simplifies not only the strategy and planning, but also the implementation. The company can then build upon initial successes to tackle more complex strategies and replace ineffective structures.

Also, because the business plan forces the law firm to think about business concerns that it otherwise would not have considered, the management can easily adopt structures that allow the firm to act decisively.

4. It can help with the firm’s growth and expansion

For many solo practitioners and small law firms, a business plan may be useful in securing financing and attracting the right lateral partners. In fact, some lending organizations will only approve a line of credit and other forms of business financing after they have thoroughly studied the firm’s business plan. In terms of attracting partners, it all comes down to the law firm’s core values, all of which have been clearly defined in the business plan.

Of course, there’s no point putting together a business plan if it is quickly forgotten. However, the mere act of creating one can give your law firm a direction head in and practical goals to work towards. Still, it is important to revisit your business plan every now and then. This way, the business considerations will remain top-of-mind and the firm will continually find ways to refine them for better productivity and profitability.

The most important considerations when creating a law firm business plan

There’s no standard recipe for success when it comes to creating a business plan. Success or failure often comes down to the reasoning behind the business plan in the first place. By taking a step back and reflecting on what you actually want to get out of your law practice, you will be able to create a meaningful, more specific, and ultimately more rewarding business plan.

With that said, here are the three main considerations when creating a law firm business plan:

What does ‘success’ mean to you?

Defining your success means understanding why you want to own a law firm in the first place. Remember that owning or running a legal practice isn’t just about having a job, but the freedom and sense of fulfillment that come with running your own business.

To determine what success means for your law firm, ask yourself these questions:

  • What drives your passion for legal services?
  • What does work fulfillment mean to you as a lawyer?
  • How do you measure success as a lawyer? Is it by the number of clients served, or huge billable amounts perhaps?
  • What’s your current financial situation like in relation to your long-term goals? Where are you planning to live? What are your most tasking expenses?
  • What type of lifestyle are you looking forward to after retirement?

Answering these questions will not be as easy as you may think. But it’s important that you answer them nonetheless so you can establish clear goals for your law firm and achieve them.

How much revenue will your law firm need to be successful?

The previous consideration was about your personal and financial goals. Now it’s time to consider the short and long term financial goals for your law firm.

Often, you’ll hear people say things like, “if we’re making $200,00 a year, then we’d be really happy.” In truth, $200,000 is a considerable sum, but when you factor in important expenses like the law office setup, tax, staff remunerations, retirement plans, capital projects, and emergencies, that amount doesn't seem so high anymore.

That’s why financial projections take up a significant part of any business plan. As long as it’s a business, cash flow will always be a paramount consideration. When estimating the costs of your goals, be generous with the forecasts so there is ample room to accommodate emergencies and unforeseeable circumstances.

How many cases will you need to meet your revenue goals?

This is an important consideration because it gives you an idea of how much work you’ll need to put in to make your business succeed. If you’re only able to take on three or four cases a month, then they’ll need to be high profile enough to meet your revenue goals. The number of cases you’ll need will depend on a number of factors, such as your practice area and the location of your law firm.

Balance is key here. Obviously, most startups and solo practices want to handle as many cases as possible so they can hit the ground running and establish their name. But it’s also important to pick your cases based on your capability. This way, you don't get stuck and end up feeling completely overwhelmed.

The primary components of a successful business plan

As mentioned earlier, there’s no standard success recipe for business plans. However, there are certain elements that are present in every successful business plan.

Most authorities agree that a sound law firm business plan should adequately address the following broad areas:

Overview of the law firm

This section covers the basics of your law firm — company name, branding information, practice area(s), legal structure, leadership roles, and so on. The idea here is to establish the firm's identity, as well as its aspirations. This means including other important information like the mission statement, vision statement, and any other important philosophies that guide the firm. These info are usually included in the executive summary.

Related: How to write a powerful mission statement

Client service

This section is all about defining your potential clients (demographics, needs, and motivations) so you know the best way to reach them. Understanding who your prospective clients are makes the rest of your planning much easier.

For example, if your main practice area is in real estate law, then your target market will comprise individuals and organizations that dabble in real estate. Now you’ll need to figure out the best way to reach this target market. It’s also important to know how to position your client service to stand out in such a crowded marketplace.

Market analysis

Every marketing plan should begin with an in-depth analysis of your industry. You already know that having a sound marketing strategy is non-negotiable, but in order to actually put one together, your market research must be on point.

This section should also cover the latest business trends affecting the industry and how they can impact your firm’s bottom line.

Competitive analysis

No matter what form of legal service you offer, you can expect that there will be competition. This section is about identifying your major competitors and outlining how you intend to make your law practice stand out from theirs. For example, you could offer a slightly lower pricing structure for your services for the time being until you start to have a regular stream of clients.

You need to know what kind of tactics to employ, what marketing channels to focus on, what kind of content to publish, and so on. For example, if you’re planning to do social media marketing (you definitely should), then obviously you’ll need to figure out how to do marketing on relevant platforms like Linkedin, Twitter, and Reddit.

On the other hand, if you already have a few regular clients, you could ask them for referrals. Because of the nature of the industry, word-of-mouth referrals for law firms are a very potent marketing tool.

This is one section that will receive a lot of scrutiny, especially from prospective financiers and potential partners. Your financial plan must be thorough and include details on not just how you intend to make money, but also how much you intend to spend over a given period. This means accounting for the firm’s fixed and variable costs, profit margins, monthly overheads, assets and liabilities, 12-month profit and loss financial projection, and so on.

This section focuses on addressing key operational issues regarding your law firm. Things like office location, lease, equipment purchases, and IT upgrades are important considerations. By addressing them in the business plan, you can better organize your priorities and avoid wasting resources on stuff that doesn't really matter.

Our best tips for nailing a successful business proposal

Now that you have an idea of the most important sections to cover in your business plan, it’s time to draft the document. Here are some helpful tips to get you through to completion:

1. Get the format right

The prevailing standard for the business plan format goes like this:

Table of contents — Your business plan is a formal document and so deserves a well-structured table of contents. You don't have to go overboard with the layout. Just make sure people know where to find what on the document.

  • Executive Summary — This one-pager is a high-level overview of what your business plan is about. The typical law firm business plan covers a lot of information, so it’s important to not fixate on a certain aspect over others. Keep things simple, yet informative. One thing you can do is to write the executive summary last. This way, you would have broken down all the main points in the document and it’s, therefore, simpler to summarize them.
  • Firm description — This is a company summary of your law firm. The aim here is to provide important details about your law practice — type of legal service offered, core values, history, legal structure, law firm office location, unique selling proposition, etc.
  • Strategy — This is where you detail your various analyses and strategic plans for your law firm. Basically, this section should outline your vision for your practice and a detailed breakdown of how you will actualize it. Context is vital here and your strategy must be practical. It should take into account current market trends as well as forecasts.
  • Financial projections — Though it’s part of your overall strategy, this deserves special mention because of its importance. You might even need to hire a finance expert to break down the figures as this section is often a struggle between under and over projecting.
  • Marketing plan — Another section worth highlighting separately, the marketing plan should suitably demonstrate how you intend to attract potential clients to your law firm. You should have a detailed market analysis for each specialty that you offer, as well as a breakdown of market trends that can influence demand.

2. Clearly explain your ‘why’

Your business plan is a roadmap for how your business will operate and be profitable, but it should also communicate why you’re going into that business. Anyone reading this document should immediately grasp your passion for the practice.

And remember that because you’ll need to update your business plan from time to time, your immediate ‘why’ can also change over time. For example, a lawyer nearing retirement may want the business plan to delve deeper into the long-term viability of the practice along with plans for a smooth succession.

3. Don’t exaggerate, but don’t understate either

You know your strengths and weaknesses. Craft your business plan around them. What processes can amplify your strengths and what personnel or tools can negate your weaknesses? It’s easy to overestimate one’s potential and before you know it you’re up to the ears in unfinished projects and processes while also trying to successfully run the business.

That being said, it’s important that you don't understate your capabilities either. Don't let the fear of overshooting your genuine potential keep you from doing all you can do and being all you can be. The more stuff you can get out of the way in the startup stage, the faster your law firm will grow.

4. Address potential issues upfront

It’s very likely that the people reading your business plan are industry experts and have already seen their fair share of business plans in the past. Therefore, they already know what potential may arise based on the strategy described in the business plan.

If you want more than a nonchalant glance over at your business plan, you must be able to think ahead. What comes next once I set up this law firm? What are some issues that pose a threat to your plans? How do you intend to tackle them?

Even if you’re not writing the business plan for the benefit of outside readers, having answers to these questions will go a long way in helping you scale your business quickly and steer clear of avoidable issues.

How long should my law firm business plan be?

This will mostly depend on the size of your law firm and the primary purpose of the business plan. For example, if you’re using the business plan as part of the supporting documents required for enlisting investor funding, it must be concise while also fully covering various technical details.

In any case, the length of your business plan document should be as simple or as comprehensive as you need it to be. However, remember that the more you put into it, the more useful it will be in the long term because you’ve laid out a clear strategy to follow.

With that said, no one really wants to read through a massive document, let alone write one. That’s why it’s a good idea to peg the document to a reasonable length. At the very most, 15 to 20 pages. As long as you have dutifully covered all the territory you need to, aim to keep it short.

How often should I review my law firm business plan?

Again, there’s no standard answer here. However, your business plan should fall among the categories of working documents. That means you should be able to refer to it from time to time and make revisions as your business situation changes.

Now the actual interval is something you’ll have to decide for yourself. Whether it’s once a year or once every quarter, you’ll need to take a cold hard look at your current situation and measure how it aligns with your business plan and reflects its intended future direction. Outlooks change, new opportunities arise, unforeseeable issues set in — revise your business plan accordingly.

To make things easier, you could save your business plan into a template so you can make any needed changes without having to go through a lengthy document filing and storing process. Save a copy of the original business plan. This will serve as your template base. Every sample business plan is then built on that.

Truth be told, writing a business plan can be quite cumbersome, especially if you’re juggling work and other important concerns. Between crafting the perfect message and working out the structure, the process can often stretch out far longer than you might have anticipated. Nevertheless, this is something you’ll need to get done if you hope to own a successful law firm.

Now you know how to do it, so what are you waiting for?

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The road to the creation of a new business is a long one that is often filled with unexpected challenges and accomplishments. While the unpredictable nature of starting a business can be appealing to some, for many there is value in developing a plan to help guide new owners through the first months and years of operation. For this reason, one of the most important steps that entrepreneurs can take when starting out is to carefully and thoughtfully develop a comprehensive business plan.

What Is a Business Plan?

A business plan is both a map and a marketing tool for your business. A business plan helps you carefully set forth the purpose, goals, and priorities of your new business, along with guideposts to help ensure that you stay on the right path. For instance, a business plan may require you to consider what the primary purpose of your business is, or the good or service you intend to provide, who your potential customers are, and how you intend to reach them in an effective and efficient manner. A business plan also allows you to make an honest evaluation of the current status of your business and what you will need to do to get to where you would like to be. This includes taking the time to compile your business balance sheet, analyze existing income and expenses, and determine anticipated financial needs.

Creating a detailed business plan can help business owners acquire outside funding .

In addition, a business plan serves as a marketing tool for new business owners who are attempting to gain financial backing, operational support, or mentoring for their new business. The financial aspects of a business plan lets potential funders or lenders analyze your current income streams and the likelihood of repayment, while the detailed explanation of your business objectives and operational plans helps to convince interested parties that you have taken the time to carefully plan your business endeavors and are invested in the success of your company.

How to Write a Business Plan

There is no one specific way to write a business plan. However, there are key components that most business plans should include, and these are good starting points when working on your own plan. It may also be worth reaching out to an experienced corporate attorney to help you review and revise your business plan before presenting it to others in the business community.

Business plans typically start with a summary of the business and its objectives, and then they describe the operations of the business, the good or service it will be providing, and potential income streams in more detail. Business plans should also include a detailed description of the proposed management structure of the business, including officers or directors and possibly the envisioned composition of the board. Additionally, business plans typically include extensive financial documentation, such as balance sheets, income projections or growth model projections, any pending loan applications, tax returns of the entity, and copies of any relevant legal agreements. If the business has already been in operation for some time, the business plan may also include financial records for the months of operation.

  • Summarize the business and its objectives
  • Outline how the business is organized and managed
  • Describe what the business sells
  • Identify potential income streams
  • Include financial information, such as balance sheets and projections

Using Your Business Plan

Once you have completed a business plan that you are happy with, you will find that you will often continue to refer to your plan even months or years after it was initially completed. In the initial stages, you can use your business plan to attract investors, partners, board members, or other advisors who are interested in the model you have proposed and would like to contribute to its success. As your business develops, you can continue to refer to the plan to guide you in business decisions, as well as to track timelines or certain goals that you hoped to meet. Even after your business is well-developed, returning to your business plan can help guide your yearly planning for your company, allowing you to modify your goals as they are achieved.

Last reviewed October 2023

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Your Guide to Law Firm Business Development

Willie Peacock

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Relationship building. Pressing the flesh. Developing new revenue streams. Cross-selling. This is the language of business development, and, much like marketing terminology , it is not familiar territory for most lawyers. As much as I’m prone to preaching about the place for marketing in every law firm’s toolkit , business development for law firms is the other side of the coin.

After reading this article, you will have a good idea of what business development strategies look like for law firms, and some practical tips on how to integrate them into your job as a lawyer and business owner.

What is law firm business development?

Business development for law firms means pursuing strategic opportunities for your law firm. This includes building new relationships and identifying new revenue streams and sales opportunities. Examples are cross-selling to existing clients and adding new practice areas to your firm. It might involve geographic expansion, or setting up procedures for your client intake team to follow up with prospects.

Law firm business development vs. marketing

One of the reasons I love marketing is because you can seemingly create new business out of the blue. And depending on the advertising channel, the results can be instantaneous, through techniques such as turning on pay-per-click (PPC) ads and other forms of Google advertising . John Grisham writes books about the rainmaker, and that is precisely what a good marketing person is—a rainmaker.

In business development for lawyers, you’re still making it rain, but instead of the sales-focus one-time transactions of marketing, you build bridges, relationships, and revenue streams that are more sustainable and will serve you in the long run.

One might say that marketing is the here and now, putting your law firm in front of a client who needs  your services and securing retainers. Unlike marketing, business development for law firms is about the long game—adding revenue and sales streams, practice areas , and relationships that build your practice over time. 

You may like these posts

Law firm marketing: a comprehensive guide, the conversation list strategy for law firm business development, how to create a law firm business plan, what does law firm business development mean for lawyers.

Law firm business development essentially means anything you do, in a systematic way, that expands your firm’s revenue streams. It takes into account strategies to grow revenue from a big-picture perspective rather than one-time transactional decisions.

I know what you’re thinking: “Okay, so what does this mean to me, a sole practitioner (or lawyer at a small firm)?”

Top 3 strategies for law firm business development

Here are a few of the most common strategies lawyers of any size can use to grow new business:

1. Build strong client relationships

Build strong client relationships to increase law firm business development

The best way to get a new client is through existing clients. The 2020 Legal Trends Report reveals that a client looking for a lawyer will trust recommendations from friends and family first as well as online reviews on Google, social media, legal directories, or from past clients.

To ensure that past clients lead to referrals for new clients, law firms need to become client-centered and develop strong client relationships , both during and after the case. There are many ways to do this, but it largely boils down to making the client experience exceptional. 

The top 8 things most important to law firm clients

Other findings from the 2019 Legal Trends Report shows that communicating consistently and clearly, answering client inquiries, and being transparent with billing are all ways to make sure your clients feel they are getting the best possible experience and feel important.

To build strong relationships, focus on the five key aspects of running a client-centered law firm.

Diagram of 4 quadrants of being client centered

  • See things from your client’s perspective

Creating a better client journey and overall client experience at your law firm means truly seeing things from your client’s perspective. Don’t make assumptions. Stay engaged with your clients and look for opportunities to get insight into their experiences.

  • Care for your clients and consider their needs

Your clients don’t just come to you to get legal issues resolved. They come to you for peace of mind, reassurance, emotional support, advice, and more, during very stressful times in their lives. Lean into this with empathy and you could help your law firm stand out in a big way.

  • Be client-centric in your thinking

When your law firm makes a decision, evaluates a new tool, or tries a new process, do you think about how it will impact your clients and their experiences? Thinking of your clients first at every stage of the client journey is the first critical step towards running a more client-centered practice.

  • Communicate clearly and often

For client-centered law firms, communication means more than just providing updates on clients cases. It’s about being proactive so that clients feel informed, and taking the time to ensure clients truly understand everything that is going on. This is important throughout the entire client journey, from intake to invoice.

  • Ask for feedback to continually improve the client experience

Don’t forget to ask for feedback from your clients. The best way to validate if your client experience is meeting expectations is to get feedback right from the source. Consider measuring client satisfaction as you go. Remember the old adage: “ What gets measured gets managed . ”

One very common way to do this is by measuring your Net Promoter Score (NPS ® ). The NPS ® is a way of measuring which clients are likely to spread the good word about your service to others through reviews and referrals. You’ll also want to be proactive about managing your online reputation . This includes responding to negative reviews and asking current and former clients for feedback and positive reviews.

2. Networking

networking picture

Truthfully, I didn’t become comfortable with networking until many years into my career. I needed to feel like I had something to give others versus acting like a recent law school graduate who was desperate for a job.

Nonetheless, law firm networking is something you have to do. My advice would be to forget about your hang-ups, force yourself to get out there, and just talk to people without having a motive or professional objective such as marketing in mind. Be yourself and create relationships. Once you’re more comfortable, you can think about how to get more out of your networking . For now, just showing up is a good start. And if you’re the type to drop social events the moment you get busy at work, using the conversation list strategy for law firm business development to maintain your relationships is a great way to stay social.

Remember, networking doesn’t just mean going to bar events. Think hard about what makes most sense for your practice area . Will most of your clients come from other lawyers ? Or will they come from other professionals?

I know an attorney who built an entire book of business through referrals by rubbing elbows in professional organizations such as BNI and by being active in her local bar and practice area section. In fact, at the law firm we worked at, she brought in more than three times her salary in billable hours through referrals.

Another attorney did QDROs. Because new business came primarily through referrals from divorce attorneys, being active in the local bar and constantly present enabled him to stay top-of-mind. For him, this type of networking led to a doubling of revenue every other year. As a solo, he was bringing in over half a million in revenue.

The design of both attorney’s websites would make most marketing pros shudder. Neither knows what SEO stands for, nor do they run pay per click ads. But they play to their strengths. As a result, both are making a comfortable living these days off of networking and business development. 

Marketing and business development for law firms go hand-in-hand. While networking can take years to pay off in dividends, marketing can “turn the faucet on” now, so to speak. The best approach is to do both for maximum effectiveness. Learn more about how to get legal clients.  

3. Asking for referrals

Many attorneys are afraid to ask for anything, even when it means free marketing. A simple client review? No way, that’s beneath them. Referrals? They aren’t begging for work.

The thing is, you know that you can provide superior services to anyone who is referred to your office. Asking for referrals isn’t asking for charity. It’s asking for opportunities to help human beings. And who better to help them than you?

Attorney referral agreements and services are an interesting concept that must be treated with caution. For example, when I was a regular divorce attorney, most divorce attorneys I knew had a QDRO attorney. For every divorce case, once they finished the settlement or trial and had a judgment in hand, they would refer all of their cases to the same QDRO attorney to process the retirement account division.

Is that allowable under the ABA Model Rules ? It depends. Rule 7.2 and its comments set forth the following:

  • No paying for referrals (exception token gifts).
  • No exclusive reciprocal referral agreements (any referral agreements must be disclosed to the client).
  • Referral services and lead generation services are allowed, but they cannot vouch for a lawyer’s quality. Additionally, the services being advertised cannot be misleading.

Returning to the QDRO example, such a referral practice is allowed so long as the QDRO attorney does not pay for the referrals. If the referrals are reciprocal, it cannot be exclusive, and the client needs to be kept in the loop.

How to create a law firm business development plan

business development plan drawing

Between a law firm business plan , budget , and law firm marketing plan , you might think that your firm is all planned out. Maybe, but it is important to think of your legal practice as a business. That is, the most successful businesses are the ones that take both marketing and business development seriously.

How do you create a lawyer business development plan? It’s simpler than you’d think and can be summed up in four basic steps:

  • Create goals: Start with listing your business goals for the year. Do you want to start a new practice area? Become “the person” for an existing practice?
  • Develop strategies: After you determine your new business and marketing goals, brainstorm a list of strategies that will help get you to those goals.
  • Set your intentions: After you come up with your list, prioritize those strategies and write down the top two or three. Consider however many you have the time and budget to commit to. Roughly outline how you’re actually going to make it happen. For example, which networking events will you attend? What will a cross-selling process look like at your law firm?
  • Review your plan: Revisit this plan every quarter or so, or when your business changes drastically. For example, you move locations, your firm grows, and/or you take on a new practice area. Be critical about what’s working and what isn’t. 

Remember that, unlike marketing, business development for lawyers is a long game. Look at metrics that indicate long-term success rather than focusing on immediate results alone. You may not have gotten a referral from that criminal defense lawyer you met at last month’s bar event yet, but it might happen in the near future as you continue to create a connection and build the relationship.

6 business development ideas for law firms

Here are a few strategies you may want to include as part of your law firm business development plan. For even more ideas, check out this list of tips from BigLaw rainmakers .

1. Commit to attend a certain number of networking events per year

Goals are easier to achieve if they are concrete. Commit to, let’s say, two events per month, especially if you’re a new business. At those events, go there without an agenda in mind and ask others about themselves. Have some fun and build some relationships.

2. Write or speak to demonstrate authority within your practice area

Are you an expert in your field? Prove it by committing to writing a few articles this year or committing to speak at a bar conference or other legal conferences, such as the Clio Cloud Conference . You can even see if there are any conferences outside of the legal industry that are relevant and might lead to more business referrals from non-lawyers.

3. Hire additional associates and take on a higher caseload

If you are lucky enough to be turning down cases, is that actually what you should be doing? If you want to grow your business, then the answer is no. Track the cases you’ve turned down recently, and if it comes close to the salary of an associate, consider expanding your workforce with an additional hire .

4. Cross-sell other law firm services to current clients

Consider the following scenario: A divorcee who needs a new estate plan. Once she becomes a planning client, she might be interested in add-on services like a pet trust or gun trust. Three years from now, she might need to declare bankruptcy. If you do bankruptcy law, great. If not, can you refer the case out for a fee split, or refer the case for free to build your relationship with co-counsel?

5. Expand to a new geographic market

A survey by iLawyerMarketing found that 75% of consumers won’t travel more than 30 miles to an attorney. With a statistic like that, it’s worthwhile considering adding a satellite office in a nearby town. 

If you are in an area with high traffic or large commute times, the geographic distance may need to be even shorter. In many large cities, such as New York City, it’s not surprising if many consumers were to not be willing to travel outside of their own borough.

6. Brainstorm new referral sources

To find new referral sources, think about providing a discount to a local union or church congregation. You can also befriend other lawyers with complementary practice areas. For example, a family law lawyer might need referrals for a criminal defense lawyer, QDRO, or an estate plan attorney.

The best type of referral source: Client reviews

To date, the best move I’ve made has been to become utterly relentless on acquiring client reviews. When each case is done, I ask for a review before the final bill is sent out, and I follow up if they forget.

When I moved to New York from California, I asked a few old clients who I was still in touch with to update their reviews for my new office. Reviews are a business procedure around here. I’m still ramping up my new practice, but I get approximately a dozen calls per week off of my reviews on Google Maps alone.

Personally, my plan for this year includes:

  • Establishing my NY and NJ practice.
  • Getting to know my local bar association (I’m new in town).
  • Expanding into underserved markets by year-end, including Iowa, Missouri, Kansas, and North Dakota.
  • Speaking at multiple bar conferences (three are scheduled, so far).
  • Publishing at least one article on Qualified Domestic Relations Orders;

4 tools to help with law firm business development

1. email and calendar.

I know, this is a rudimentary suggestion, but keep this in mind: M any law firms, lawyers, and bar associations  operate in the dark ages. Announcements for local bar conferences or calls for articles are often sent via bar newsletters or listservs. Many local bars or community organizations will also maintain an online calendar of upcoming events, which is a lot handier than scanning your inbox every day.

2. A great CRM

A legal CRM is a contact relationship manager. It is basically the modern Rolodex, with logs of communications included. Clio Grow is an obvious choice here for Clio Manage users since the two fit together seamlessly. Clio Grow also works really well as a stand-alone solution.

Screenshot of Clio Grow

Email and workflow automation allow you to automatically stay in touch with contacts. The ability to track where your leads and referrals originate will reinforce the value of business development in generating new clients.

Another great CRM, and one that I use personally, is Lawmatics . And yes, it integrates with Clio Manage .

3. Case Status

Screenshot of case status

Case Status is an app that might be worth looking into for acquiring client reviews. It automates status updates on a client’s case and asks them for a review when the case concludes. 

How it works is the client needs to download the app at the start of the case. The lawyer then moves the case through custom stages. These are set up by your law firm and practice area. Each change in stage results in a push notification being sent to the user. 

A tool like this goes a long way in addressing the top complaint clients have about lawyers, i.e. poor communication. It also takes some of the pain out of asking for reviews.

4. Mailchimp (or any other drip email service)

Many lawyers find marketing newsletters to be a lot of work . And honestly, I don’t know any firm that does them well. In fact, I strongly recommend against sending a potentially boring newsletter stuffed with tidbits about your firm’s new staff members and sales pitches.

A more valuable use of inbox space is drip campaigns ,  where you send a series of nurture emails (like drops of water) to a certain type of contact. For example, if a potential new client emails you about estate planning, you might send a few drip emails addressing why they need to plan, the benefits of working with your law firm, and the costs of planning. You can also do this using Clio Grow ’s email automation functionality.

(If this sounds like marketing, you are right. The idea of implementing this at your firm is business development.) 

Invest in business development for your firm

It’s easy to get plugged into your legal work and forget about law firm business development and marketing. But remember, your law practice is a business. And in business, unless you are independently wealthy and don’t have to care about making a living, you have to keep an eye on the bottom line.

In this article, I’ve shared what has worked for me in the past. But what works for me may not work for everyone. There is no “one size fits all” solution, so don’t be afraid to try a few different strategies. My QDRO colleague, who I mentioned before, has an entirely referral-based practice that’s been built through years of networking, speaking at conferences, and writing articles. My estate planning colleague built her clientele through business and bar associations, handshakes, and cocktails.

It all comes down to making a business development plan for your law firm. Outline your goals for the year. Brainstorm strategies to get you there. If you can commit to networking, demonstrating your authority, and enhancing existing client relationships, you’ll be able to optimize for repeat business, cross-sales, reviews, and referrals.

Remember: There is no “one size fits all” for law firm business development or marketing. Don’t be afraid to try a few different strategies. Remember: Business development is a long game of relationships and trust. The effects of your activities today may pay off for years to come.

What does business development do in a law firm?

Business development refers to the practice of increasing a firm’s revenue and client base. Business development professionals engage in activities such as market research, competitive analysis, identifying potential clients, and creating marketing campaigns. Additionally, they build relationships with clients, conduct outreach activities, and create opportunities for networking.

What does a business development manager do in a law firm?

A business development manager in a law firm is responsible for identifying new clients, developing relationships with existing clients, and creating strategies to increase revenue and profitability. They may also be in charge of devising marketing strategies and engaging in public relations to increase a firm’s reputation and visibility.

What is a law firm business plan?

A law firm business plan outlines the specific strategies and objectives for growing and managing a law firm. It serves as a guide for decision-making and resource allocation. Typically, business plans include information about the firm’s mission and vision, competitive landscape, target markets, marketing plans, financial projections, and operational practices.

What are the five management styles used in most law firms?

The five management styles used in law firms are autocratic, democratic, managing partner, committee, and combination. Autocratic concentrates power in a limited group; democratic shares power throughout the firm; managing partner means only the managing partner takes charge; committee relies on a decision-making group; combination is a mix of styles.

We published this blog post in April 2019. Last updated: January 31, 2024 .

Categorized in: Marketing

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Every successful small business needs a business plan that maps out the company's future. The business plan helps keep everyone in the organization on the same page about the small business's goals. It also serves as your company's resume and can attract investors and capital. Having a clear vision that includes your pricing, mission statement, and financial projections will help your business succeed.

This article reviews the benefits of creating a business plan and how to get started on a business plan for your company. Other articles in this section can help you nail down the details. To learn more about starting a business in your area, consult with a local  business attorney .

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Why Write a Business Plan?

Small business owners feeling strapped for time may ask: “Does the law require me to write a business plan?" The short answer is: “No, it does not."

A business plan is not a legal document. It's a tool business owners use to increase the odds that their business will be a success.

Prospective entrepreneurs must make many decisions about their businesses before they can open their doors to the public. Writing a business plan forces a new business to go step-by-step through difficult questions and do their own research. It requires you to think about business structures, marketing strategies, and financial forecasts. You will need this information to make good business decisions.

Your business plan will also provide a roadmap that keeps your business on track to meet its goals. Where do you want to be in three years? In five years? It should be in your business plan with any important milestones you hope to reach.

A business plan is essential if you are seeking investors and capital. Use your business plan to sell your business idea to potential investors. Include all the market analysis and financial information an investor needs to get excited about your business venture.

Types of Business Plans

Most business plans follow a template and include the same  content . Different  types of business plans  may require more information or may focus on some topics over others. Most new businesses will need a startup business plan.

How To Create a Business Plan

The process of writing a business plan has great benefits in and of itself. It allows prospective business owners to research, gather data, and understand their customers and their product's place in the marketplace.

Information in this section will teach you:

  • How to create a business plan
  • The audiences you need to write for
  • Which kind of plan you may need, and the components of each plan

You can use a  business plan template  or  simply follow the guidance  provided here on how to write the plan.

Line up a reviewer to proofread your plan. You can have a business consultant or counselor at the Small Business Administration (SBA) review it for you. You want it to be perfect when you show it to potential investors. Also, take a look at the  Start-Up Checklist  to ensure you've covered everything.

What's in a Business Plan?

A traditional business plan is both a marketing document and a plan for action. While different types of business plans have different goals and audiences, key elements of the plan will be the same. The article “ Contents of a Written Business Plan " details exactly what should be included in each section of a traditional business plan.

A good business plan will include:

  • Company description, mission statement, and an overview of your business
  • Product line description, including new products
  • Market research
  • Competitive analysis and the value proposition offered by your product or service
  • Business strategy and the things that give your company a competitive advantage
  • Customer research, including potential customer demographics and target market
  • Marketing strategy and a marketing plan to drive new business
  • Management team information, an organizational chart of team members
  • Sales strategy, including product or service pricing
  • The legal structure of the business, intellectual property, and copyrights held

Financial plans and financial statements, such as financial projections, cash flow statements, balance sheets, income statements, a  break-even analysis , and anticipated profit margins

The type of financial information you have available will depend upon where your business is in its lifecycle and the type of business plan you craft. A startup business will have projections rather than historical financial reports.

Don't forget the  Executive Summary  section of your business plan. It's often read as a stand-alone document. So, it pays to put extra time into making this the most inspiring four pages your audience will read.

Effective Marketing Strategy

While developing an effective marketing strategy isn't easy, it's an essential business plan component. It's virtually impossible to market to everyone all at once successfully. Concentrate your efforts where you think you'll have the most impact. Social media should be included in your strategy.

Financial Projections

The most important audiences for your business plan will focus on the financial projections and financial summaries provided in the plan. As a business owner, financial projections will help guide your business's development. For lenders and investors, these documents tell them if your plan is realistic and if you are a good bet for their business loan or investment dollar.

A breakeven analysis is one of the key documents you need to include in a business plan. What level of sales will make the company a profit? A breakeven analysis answers that question. It identifies when your business will be able to cover all of its expenses and begin to make a profit.

It's also important to  identify your startup costs . This will help you determine the sales revenue needed to pay ongoing business expenses.

Talk to a Lawyer When Writing a Business Plan

A lawyer can help in many business scenarios. While you can certainly write a business plan on your own, an experienced business start-up lawyer can tell you how to avoid issues you may not consider. Before you visit, complete the  Confidential Business Start-Up Information Questionnaire . Take it with you so you are prepared to talk.

Contact a  business and commercial law attorney  in your state to make sure your target audience will understand your business plan.

Learn About Creating a Business Plan

Why do you need a business plan? Clarifying your business goals and attracting capital are two of the many reasons.

What Is a Business Plan?

Basic description of the types of business plans, what they do, and what they should include.

How To Write a Business Plan

How to think strategically, search for investment capital, and stay on track by writing an effective business plan.

Contents of a Written Business Plan

In-depth business plan outline, including advice for writing a concise and effective executive summary.

Creating a Business Plan Articles

Breakeven Analysis

Questionnaire: Marketing Strategy

The Benefits of a Good Business Plan

Writing a Business Plan FAQ

You Don’t Have To Solve This on Your Own – Get a Lawyer’s Help

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COMMENTS

  1. How to Create a Law Firm Business Plan

    1. Executive summary. An executive summary is a one-page, high-level overview of all the key information in your business plan. Law firm business plans can cover a lot, so it's worth having a succinct high-level overview to keep things simple (hint: While this section should come first in your plan, it's actually easier to write this section last, after you've laid out your plan).

  2. Seven Sample Attorney Business Plans: Why Attorneys Must Have Business

    Personal business planning is not about writing a 50-page manifesto outlining every detail of every day of your professional life for the next 10 years. In fact, personal business planning can be as simple as you want to make it, as you can see here with this sample business plan for law practice PDF. You don't even have to call it a business ...

  3. How to Write a Business Plan for a Law Firm (with Sample + Template)

    The lawyer or lawyers who will make up the firm at the time of launch. The location of the firm and the areas it serves. The general approach the firm takes when representing clients. 3. Market Analysis. A competitive analysis is one of the most compelling components of well-written business plans.

  4. How to Create a Law Firm Business Plan [with Examples]

    The plan should also explain how you will know when you have met them. For example, you might have a growth goal of reaching five lawyers within two years. Or you might have a revenue goal of collecting $200,000 your first year. Too many businesses, including law firms, meander on their developmental path.

  5. How to Write Your Law Firm Business Plan

    One final note: If your goal is to submit your business plan to potential funders, you want to do everything you can to make sure your plan stands out. One good way to do this is to work with a designer to artfully format your plan. Great presentation can take you a long way. Originally published 2017-09-23. Republished 2020-07-31.

  6. How to Draft a Law Firm Business Plan

    It should also contain some deeper information about the firm's identity and aspirations. This would include: A mission statement about the firm's purpose. A vision statement or recitation of medium- and long-term goals for the firm. Important aspects of the firm's history. Any important philosophies that the firm brings to legal practice.

  7. A business plan for lawyers: How to write one and what to include

    1. Executive summary. A business plan for lawyers, like any plan, should start with an executive summary. This section concisely outlines a business plan's key points, goals, and strategies. Ultimately, it serves as a snapshot for quick understanding and decision-making and should include the following parts:

  8. How to Write Your Law Firm Business Plan (with Template)

    Starting a law firm can be a rewarding and lucrative venture, but it requires careful planning and strategy. A well-crafted business plan is a crucial tool for any law firm looking to establish itself, secure funding, or grow its practice. The business plan will serve as a roadmap, outlining the law firm's objectives, strategies, and unique selling proposition

  9. How to Write a Law Firm Business Plan + Free Sample Plan PDF

    Download your free law firm sample business plan. Download our law firm sample business plan for free right now and use it for reference as you write your own plan. You can even copy and paste sections from the sample plan and customize them for your business. Just make sure you're taking the time to do your own research.

  10. Law Firm Business Plan Template [Updated 2024]

    Law Firm Plan. Over the past 20+ years, we have helped over 1,000 lawyers to create business plans to start and grow their law firms. On this page, we will first give you some background information with regards to the importance of business planning. We will then go through a law firm business plan template step-by-step so you can create your ...

  11. Law Firm Business Plan Sample

    Business Plans for Lawyers. New York City Bar Association Small Law Firm Committee . Writing a Business Plans for Lawyers - The Non-Financial Side. 1 Why write a law firm business plan? First and foremost, it's a Management Tool, It forces you to think through important issues you may not otherwise consider The recipe to grow your law practice

  12. Law Firm Business Plan: Guide & Template (2024)

    A law firm business plan is a document that outlines your business goals and strategies to achieve those goals. It includes your law firm overview, your reason to start your firm, the services you will offer, a budget or funding requirements, and strategies to get and manage your clients.

  13. Develop a Law Firm Business Plan (2024)

    A good business plan includes: Vision. Create a picture of what you're building. Values. Identify the rules to guide your team's important work. Law Firm Business Model. What you offer, who you offer it to, and how you'll deliver your services. Targets and Priorities. Clarify metrics that indicate success.

  14. How to Write a Business Plan for Your Law Firm

    The first piece of the business plan for your law firm is an executive summary. This summary should be one page long and should give a high-level overview of all the key points of your business plan. Ironically, it may be easiest to draft your executive summary at the end of the business plan writing process. There are a few key components you ...

  15. Law firm business plan

    For example, a lawyer nearing retirement may want the business plan to delve deeper into the long-term viability of the practice along with plans for a smooth succession. 3. Don't exaggerate, but don't understate either. You know your strengths and weaknesses. Craft your business plan around them.

  16. How to Draft an Effective Business Plan Considering the Legal ...

    The road to the creation of a new business is a long one that is often filled with unexpected challenges and accomplishments. While the unpredictable nature of starting a business can be appealing to some, for many there is value in developing a plan to help guide new owners through the first months and years of operation.

  17. Law Firm Business Plan Template + Example

    Follow these tips to quickly develop a working business plan from this sample. 1. Don't worry about finding an exact match. We have over 550 sample business plan templates. So, make sure the plan is a close match, but don't get hung up on the details. Your business is unique and will differ from any example or template you come across.

  18. Your Guide to Law Firm Business Development

    6 business development ideas for law firms. Here are a few strategies you may want to include as part of your law firm business development plan. For even more ideas, check out this list of tips from BigLaw rainmakers. 1. Commit to attend a certain number of networking events per year.

  19. How To Write a Business Plan

    Good business plans meet "the three C's"—referring to clarity, conciseness, and completeness. These three elements are key to a business plan effectively conveying your business idea to stakeholders, lenders, and employees: Clarity: Ensure your business plan is clear and easy to understand. Don't use flowery language.

  20. Creating a Business Plan

    Writing a business plan forces a new business to go step-by-step through difficult questions and do their own research. It requires you to think about business structures, marketing strategies, and financial forecasts. ... Talk to a Lawyer When Writing a Business Plan. A lawyer can help in many business scenarios. While you can certainly write ...

  21. Free Business Plan Template & FAQs

    When to use a Business Plan: You want to start a new business and want to set out the blueprint for the new venture. You will present your plan to potential investors to clearly outline the business goals, financials, and strategies. You are a business owner who wants all your employees and leaders to know the mission and goals for your business.

  22. Video: Expert panel on condo crisis in Miami and Broward

    MORE: Florida condos need a spending plan to make repairs — but there's an issue with the law If you weren't at the event, we videotaped it from start to finish. Find the video at the top or ...