Before starting to write your law firm business plan, see what situation you actually fit in:
- You have a law firm for more than five years now and don’t have a business plan yet
- You have a law firm with some general notes but not exactly a plan to depict and realize your goals clearly.
- You are preparing yourself to start a law firm
These questions typically represent the kinds of lawyers existing and only a hundred out of them have a business plan ready keeping in mind their marketing plan, detailed revenue goals and research of the target market.
Where do you find yourself in the crowd? Well, it hardly matters now because if you are on this page, you probably lack a business plan and we are here to let you know the tips of creating an intelligent business plan for your law firm.
Here are your Law Firm Business Plan
1. Define your success
The first step while starting your own law firm business plan is asking yourself why you need to start a law firm and what is your definition of success.
Getting a law firm established is not just confined to owning a business, but has a lot more to do with your job fulfilment. It depicts how happy you are having something of your own, enjoying the freedom to work in the best way you know and achieve your set goals.
For getting the more detailed outline, ask yourself a few questions, like:
- What makes you happy?
- What kind of lifestyle do you wish to have?
- What are the plans for your child’s education?
- What kind of house would you like to own and when?
When you have clear answers to these questions, you will know the real urge and compassion to work in your own law firm and the need to have one as soon as possible to fulfil these happy dreams.
2. Figure out the total revenue required
Once you have a clear idea of your financial and personal goals, it’s time you calculate the revenue required to cover those things. We know this number is ought to scare you but it will help you get on the right track with the high zeal to work and flourish. You will be ready right from the beginning having an estimate of the income you need to turn your dreams into reality. See, what amount would be enough including everything from daily expenses, purchasing a house, medical claims, emergencies, savings, vehicles, home repairs, etc. Note if you have any plans for extra investment into your law firm, include that in your legal business plan.
3. Note the number of cases required to reach the set revenue goal
Now, you need to plan your case goal to see how many cases would suffice to reach the target revenue slab. If you can manage to take two to three cases every month, trust us the returns might look huge. Remember, you won’t get along with 3-4 cases right from the start. It is a journey of eventual growth and you will reach the target soon you realise your strengths of taking up and winning a case.
4. Sketch the marketing plan with budget
There’s no harm in making a preliminary market research beforehand. Find out how many similar law firms exist in your area and what do they stand in terms of demand and popularity. Do you stand anywhere near? If not, how can you reach their slab and show yourself powerful enough to attract potential clients seeking for your niche? This is where marketing plan comes to scene.
If you have just began with the law firm, this part could be a bit hustle for you such as managing referral relationships, determining groups to communication, blogging and accessing social media for promotion of your law firm in front of the potential clients. As said, nothing is impossible, you will manage everything with the right marketing efforts.
5. Outline an operating plan
See how much funds would you need to start running the law firm. To design the accurate budget, you will need an operational plan outlined. You should look up to the up-front and daily costs and other factors in your revenue goals.
Here are some important costs to include in the budget:
- Malpractice insurance
- Office space
- Staff salaries
- Management software
- Determine your profit
Once you have set your attorney business plan, it is time you map your goals on the calendar. Every passing month, note your desired goals for revenue, marketing campaigns to launch, number of cases, and the hires you want to run your firm smoother and more efficient. Keep a track of your actions that help you execute well every month, reaching nearer to your annual revenue target.
Once you know how to create a perfect business plan for your law firm, the next important part is to know the importance of having a business plan in itself. Here’s why you should start with your law firm business plan right away!
How and Why You Should Create a Law Firm Business Plan
Observe your law firm and professional goals in writing
Keep in mind, your business plan is unique and different, no matter how similar it might seem with the format of business plans by other law attorneys. It is because yours have the detailed elements focusing on your business goals, setting it apart from the rest. You should write your business strategies and goals distinctly, not just to offer some clarity on your intentions of setting up the law firm but showing the exact virtual realisation of those goals as well.
Your business plans is the business predictor
When you don’t have a clear business plan, chances of getting lost is at its peak. The day-to-day working shifts and shuffle with the clients will disturb your already confused mind. Now, when the situation reaches this high, you are likely to lack in the key areas. It is always better to make forecasts and projections in your business plan which can be your benchmarks in meeting the expected goals of your law firm in near future.
Understand your market closely
Not all the business planning lawyers understands their market completely, turning it to be an imperative to not just perform detailed market analysis on the specific areas of expertise, but also look after the needs of the clients in particular. Every smart business plan represents the touch of latest technology to ensure things run smooth and efficiently. So, make sure yours do as well.
Take expert advice while sketching your first every law firm business plan!