How to Write a Business Plan For a Law Firm?
Legal firms are all more than mere companies. Firms and the attorneys who work for them are practicing a career containing responsibilities that extend past just economic aspects.
This reality could distort the importance of attorneys to focus on financials, business models, value creation strategies, IT transactions, terms of the lease, as well as capital requirements. Moreover, such considerations may seem like an oddity to a fully skilled lawyer, or perhaps an annoyance that takes a lot of time away towards their primary field of work the "practice of law."
However, those pesky corporate specifics, on the other hand, are what keeps the business running. Above all, legal firms are so much more than just businesses, they do have a significant and important corporate factor. Hence, investing resources in the company administration aspect into a legal career, especially for solo practitioners and small businesses, may contribute significantly to the economic incentives they gain.
This takes you to the next step in the process: writing the business model.
A BUSINESS PLAN'S MATERIALS-
Though your law office business model should be customized to your particular needs, it should at the very least contain the following sections:
1. Determine the key goals of your business-
First, determine your firm`s primary objectives for say next 5 years. Some of the goals specific to this step are financial goals, practice area goals, strategic business goals, and personal goals. However, these objectives must be mentioned in one passage just at the start of your Business Plan. Also, you may want to use bullet points or other organizational resources to draw attention to your objectives.
2. Give an overview of your project.
The firm's name, legal framework, areas of practice, and leadership roles should all be included in this segment. Additionally, it should also provide more detailed knowledge about the company's personality and aims. This will include the following:
● A tag line describing the firm's goals.
● A mission statement or a list of the company's long- and short aims.
● Aspects of the firm's past that are important
● Any significant doctrines that the firm introduces to the practice of law
3. Develop broad marketing strategies
Your general marketing strategies should be included in your business plan. Therefore, to come up with marketing plans, you must do a generic market review. In conclusion, this will help you recognize the possible flaws in the present marketing tactics and set reasonable targets.
4. Offer a comprehensive description of your contenders.
Examine the major rivals. Assess what the contenders do well and where they fall short. Keep a record of any vulnerabilities you find that you're using to your advantage in your Business Model. Take the liberty of displaying these. Make the opportunity to establish yourself apart in ways where you are alike.
5. Make a plan for the overall development and operations.
It's critical to consider how you'll enhance the company's success. Make a list of the general activities and roles that your company performs on a daily basis. The office lease, equipment purchases, and technology plans will all be covered in this portion. For technical challenges, you may delegate positions to different members of your team.
Identify the firm's significant customers in this part, breaking them down by important characteristics such as scale, region, sector, and practice groups. Carry out the same process for big client opportunities and goals. It's worth exploring how the organization can reinforce its relations with these communities.
Your financial report should be the last component of your Business Plan. This segment summarises your financial situation. Make a detailed list of your financial assets and liabilities, financial projections (supported with assumptions), Break-even analysis, revenues summary by month (for at least three years), balance sheet, cash flow statement, and budget.
BUSINESS PLAN COMPONENTS FOR A VIRTUAL LAW FIRM-
It’s nothing but quite very obvious to even write a business plan for virtual law firms. With this whole amount of buzz about work from home, it’s pretty necessary to have a business plan especially when any lawyer is deciding to venture his/her own law office/firm in these unprecedented times.
In several respects, launching a virtual law office is similar to starting a traditional law firm. To begin, you'll need to have a strategy. A documented business plan is the best way to begin. On the internet and in business books, there are several sample plans to choose from. The following are the fundamentals of every business plan:
● An executive summary;
● An analysis of your intended market;
● A description of your firm;
● A financial plan;
● A description of your competitors; and
● A marketing strategy.
The online practice also has to contain the following descriptions as well-
● Your practice area;
● Your technology and communication needs; and
● Your legal business organization structure
Few other essentials of a virtual law firm-
There are low-cost options for obtaining a web domain and having a website designed. It's where you'll spend the rest of your time communicating with current and probable customers Each client should have a passcode account on your website, allowing them to transfer files, fill out paperwork, communicate with you over the internet, and, of course, pay you.
b. Virtual Private Network (VPN)
It's important to have stable net connectivity which a virtual private network (VPN) can provide. Trying to protect attorney-client confidentiality and your client's records is critical as an attorney.
c. Legal Case Management Software
This one is extremely important for the effective running of your virtual firm. All of the options like accounting and billing, time and billing tracking, case management database, calendaring and only one legal billing software such as Legodesk make gets everything sorted and your work less burdening.
d. Right Equipments
There will always be things you need. Your mobile and desktop will be your office, in addition to a desk and chair. When you use a laptop, you will take your work with you everywhere you go. Some of the other basic devices like all one printer and a portable scanner provide aid to your work.
Without a plan, even the most brilliant business can get lost. You need to have goals, create milestones and have a strategy in place to set yourself up for success. Hence having a business plan for your law firm is stage one to laying the foundation of your startup. You can’t skip or directly jump over to the next one!
Author- Sushree Swagatika
Sushree has been working with Legodesk as a content manager since the inception of the company. With years of experience in the content writing field, Sushree brings a unique combination of words, empathy, and knowledge into her write-ups. When not writing, she can be found watching movies, hopelessly pondering, or stalking an Instagram profile. You can find more about her on her website- www.thewriterswag.com