Law school does little to prepare you for the BUSINESS of law. It is essential for you to understand the fundamental components of developing a business plan for your law firm. It won’t require an MBA or intensive business acumen; we’ve created a quick guide to help you get started on a business development plan for lawyers.
Why Should My Law Firm Have a Business Development Plan?
A business development plan will establish a foundation for your law firm’s growth and sustained success. It creates a framework so you can not only focus on the future of your firm, but also look back and evaluate what the firm has already accomplished (or hasn’t).
The most successful law firms devote quality time to planning for business development. Preparing your law firm business plan should involve as many lawyers, and employees, as possible. You will want insight from different points of view, and everyone in the firm will have a critical role in its implementation.
If you are a solo practitioner, you can bounce ideas off your colleagues – or reach out to networking groups for mentorship on how like-minded attorneys have developed their business plans.
Business Plan Objectives
The first step is to identify the overall objectives of all partners and stakeholders in the firm. Ensuring everyone is on the same page with how they see the future of the law firm makes for a more straightforward process when writing the business plan.
Examples of objectives or goals partners and stakeholders may have:
- Growth, whether that be business, personal, or other areas.
- Serve well, efficiently, economically, and thoroughly.
- Identify and market strengths or unique services.
- Increase the firm’s exposure in the marketplace.
- Enhance the firm’s reputation in the community.
- Develop and maintain relations with potential referrals.
- Continue with pro bono and civic work.
Take time to thoughtfully determine your firms’ objectives and goals and refer back to them as you write your law firm business development plan. You can use this guide to help jumpstart your law firm business plan:
Jumpstart Your Law Firm Business Plan
The Law Firm Business Plan
At this point, be sure you have dedicated a time table for writing the business plan. The initial time it takes to write a business plan can vary anywhere from a few weeks to a year. However, once implemented, revisit and reassess the plan about once a year.
A law firm business plan is usually structured into five categories:
1. Executive Summary
- This section provides an overview of your firm. While the executive summary always comes at the beginning of a business plan, most find it easiest to write this section last after all the other pieces are complete.
- Topics to consider in your executive summary can include:
- Law firm or partner overviews
- Value proposition (specialty, tenure, community engagement, etc.)
- Target market
- Business objectives
- Keep this portion clear and concise; many executive summaries can serve as a “cover letter” for your law firm. There’s no need to get into anything granular; just include the highlights. You’ll be able to go into detail in subsequent sections of the business plan.
2. Services and Operations
- In this section, you will write a detailed description of your firm, the services you offer, and the areas of practice you work in.
- Also include detailed information about your operations:
3. Market Analysis
- The market analysis section provides a detailed look at the local business environment, specifically in your practice areas.
- Devote quality time in conducting the research necessary to understand your unique market segment and how you can best serve it.
- It’s very easy to say that your target market is “everyone,” however, this will prove to be an inefficient use of your time. The best law firm business plans understand their ideal clients and cater specifically to them.
4. Marketing Strategy
- This section will explain your strategy for reaching your target market.
- It will be beneficial to create a positioning statement.
- What does your law firm offer that competitors do not?
- What are your ideal client’s needs and wants?
- Why should a client choose you over someone else?
- How will clients find you?
- Marketing strategy can also include pricing, promotional efforts such as advertising, public relations, or social media content creation.
4. Financial Plan
- This section should contain a forecasted outlook of the next one to five years of your law firm.
- Subdivide these forecasts into measurable objectives, such as:
- Income
- Caseload
- Profits
- Loss
- Cash flow
- Balance Sheet
- You can break up your financial plan into monthly, quarterly, or annual segments. This will allow you to have metrics that you can then use to adjust strategy or efforts accordingly.
Creating a law office business plan can be a laborious exercise. Our suggestion is to think about your firm’s attorneys and management team and delegate specific people to specific sections. Finally, come together to fine-tune and collaborate on the Executive Summary.
Use Your Law Firm Business Plan
Not only will your law firm business plan help you gain a clear understanding of how you will run your firm, but it will also provide a valuable tool to share your vision with stakeholders AND clients. Don’t let your business plan collect dust on a shelf – personally contact prospective client’s and send them your plan as part of new business marketing. Let them see what your practice is all about.
If you’d like more information on creating a business plan for law firms, we’ve created a free template and guide you can download to get started.
