business plan for law firms

How to Create a Law Firm Business Plan Aimed at Success

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

A firm exists to serve people—so its business plan must take into account those it aims to help. A law firm's business plan lays out the key pillars that will support a practice, from operational details to marketing strategies to financial projections. Furthermore, it should provide a clear roadmap for where the firm hopes to be in the coming years.

In this blog,  we will guide you through the process  of creating a comprehensive law firm business plan that  will help you achieve your goals . Additionally, in our latest Grow Law Firm podcast, our host Sasha Berson conversed with Omar Ochoa, the founding attorney of Omar Ochoa Law Firm, to discuss the topic of creating a law firm business plan aimed at success. Be sure to listen to another insightful episode featuring Tom Lenfestey, where he discusses crafting a sellable and profitable law firm.

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.

Moreover, a business plan supports decision-making by evaluating the feasibility of new ventures and assessing potential risks and rewards. It helps to manage resources effectively by setting financial goals and tracking progress, ensuring the firm is making the most of its resources and achieving objectives.

Lastly, a law firm's business plan enables growth by identifying new opportunities and developing strategies to capitalize on them. By planning for the future and setting realistic growth targets, law firms can take their businesses to the next level. Overall, a well-developed business plan is critical for success in the legal industry, providing direction and focus, supporting decision-making, managing resources effectively, and enabling growth.

General Tips for Creating an Attorney Business Plan

Building a business plan for law firms is not an easy or intuitive process. By considering the following issues before opening your doors to clients, you have a much better chance of having a stable firm that matches your values and has a clear set of goals.

— Stay Focused

Forming a law firm can feel overwhelming. You have a lot of freedom and can easily get sidetracked into issues that either can wait or do not deserve your attention.

If having a strong law firm website design is important enough for you to include in your plan, you will spend time on that instead of less important matters.

A plan also includes a budget. The process of planning your firm's finances can ensure that you do not overspend (or underspend) as you start your own firm.

The attention to detail that comes from having a plan will help you avoid spreading yourself too thin by focusing on every issue or the wrong issues. Instead, you will maintain your focus on the important issues.

Whether you have law partners or develop a solo law firm business plan, the plan will help you stay focused on your end goals.

— Keep Track of Goals and Results

It is easy to set goals when you  start a law firm and then promptly forget about them.

Your plan will set out your goals and the metrics you will use to determine your progress toward meeting them. 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. By setting goals and the path for meeting them, you will have guardrails to keep your firm on track.

"If you want to be the number one law firm in the country by revenue right in a 20 year time period, have that be your goal and everything that you do right is in service of that goal. You might not get there, but you're gonna find that you're gonna be very successful either way."

"If you want to be the number one law firm in the country by revenue right in a 20 year time period, have that be your goal and everything that you do right is in service of that goal. You might not get there, but you're gonna find that you're gonna be very successful either way." — Omar Ochoa

— Sort Out Your Own Law Firm Strategy

Developing a clear vision is important for establishing a strategic law firm plan aimed at long-term goals . As Omar Ochoa discusses in the podcast, having very specific milestone visions like where you want to be in five, ten, or fifteen years helps drive the strategy and actions needed to get there.

It's easy to say that you'll run your law firm better. But a plan actually helps you identify how to improve by articulating a concrete strategy. The process of creating the plan will help you pinpoint problems and solutions.

A plan forces consideration of operational details often overlooked. It equates to defining your firm's purpose and then pursuing that vision with purpose-driven strategies and actions. As Omar notes, marrying vision to action through knowledge of other successful law firm models is key to achieving goals.

One area that is frequently overlooked in plans is the inclusion of law firm marketing strategies . Developing this aspect is critical for attracting clients and sustaining growth.

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— Move Forward

You should view your plan as a law firm business development plan that will guide the formation and growth of your firm .

You can review the document periodically to remind you and your law partners of your growth and expansion projections. After this review, you can ensure your growth and expansion remain on track to carry you to your goals.

The review will also tell you whether you need to update your firm's goals. When you started your law firm, you might have been unduly pessimistic or optimistic in your projections. Once you have some time to operate according to your plan, you can update your goals to keep them realistic. You can also update your processes to focus on what works and discard what does not.

The review can provide your projections for what you hope to accomplish and the roadmap for accomplishing it.

Law Firm Business Plan Template

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.

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

You need to set realistic and achievable goals. These goals should reflect your reasons for starting your law firm. Thus, if you started your law firm because you expected to make more money on your own than working for someone else, set some goals for collections.

While you are setting your goals, think about how you will reach them and the ways you will measure your success. For example, if you want to expand to include ten lawyers within three years, think about intermediate goals at the end of years one and two. This helps measure your 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

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.

But revenue is not the end of the story. Your landlord, vendors, and employees expect to get paid monthly. So, you should also calculate how much cash flow you need each month to cover your hard expenses.

You also need a reserve. Clients expect you to front expenses like filing fees. Make sure you have a reserve to pay these costs and float them 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

Figure out how much you need to work to meet your revenue target . If you charge a flat fee, you can simply divide your revenue target by your flat fee.

Hourly fee lawyers can calculate the number of hours they need to bill and collect. However, law firm owners rarely bill 100% of the hours they work due to the administrative tasks they perform to run a firm. Also, you will probably not collect 100% of your billings, and clients could take 90 days or longer to pay.

Contingency fee lawyers will find it nearly impossible to project the cases they need. You have no way of knowing the value of your cases in advance. You also have no idea when your cases will settle. You could work on a case for years before you finally get paid.

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.

Parts of a Business Plan for Law Firm Formation: 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 .

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.

— 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 attorney business plan explains where your firm's revenue comes from and where it goes. This is where your skills as a lawyer begin to diverge from your skills as a business owner. You may need to learn a few new accounting concepts so you can perform the analyses expected in a financial plan.

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

If you plan to seek a bank loan or line of credit, your bank may need a financial plan that covers three years or longer.

You will need more than a few rough numbers for a useful business plan. Instead, you will need to estimate your expenses and revenues as accurately as possible.

"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

You might need to contact vendors and service providers to get precise costs. You will probably need to track your billings with your prior firm to predict your revenues. If you are opening a law firm after law school or an in-house job, you may need a competitive analysis to show what similar law firms earn in your location and practice area.

Some reports you may need in your business plan include:

• Revenue analysis listing the fees you will collect each month
• Budget describing your monthly and annual expenses
• Financial projections combining the revenue analysis and budgeted expenses to predict your profit margins
• Cash flow statement showing how your revenues and expenses affect your cash on hand.

Your cash flow statement might be the most important financial report because it explains how your bank balance will fluctuate over time. If your clients take too long to pay their bills or you have too many accounts payable due at the same time, your cash flow statement will show you when money might get tight.

— Market Analysis

A market analysis will tell you where you fit into the legal market in your location and field. You need a competitive analysis to understand the other lawyers and law firms that will compete with you for potential clients. You can also analyze their marketing messages to figure out how to stand out from the competition.

A competitive analysis will tell you what services other firms offer, how much they charge, and what features help your competitors succeed.

Your analysis should include a discussion about your :

• Ideal clients and what you can do to help them
• Market size and whether you offer something clients need
• Competitors and what they offer to clients
• Competitive advantages and how you can market them to potential clients

You can also develop and hone your marketing strategy based on the benefits you offer to clients over your competitors. Finally, a market analysis can tell you the locations and practice areas in which your firm may expand in the future.

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

— Marketing Plan

A marketing plan sets out the steps you will take to reach your target market. Your marketing strategy will take your market analysis and turn it into a plan of action.

You will start with the results of your market analysis identifying your clients, your competitors, and your competitive advantages. You will then discuss the message you can deliver to potential clients that captures the advantages you have over your competition.

Some advantages you might have over other lawyers and law firms might include tangible benefits like lower billing rates or local office locations. Other advantages might provide some intangible benefits like more years of experience or state-bar-certified specialists in those states that allow specialization.

You will then discuss your marketing plan. A marketing plan explains :

• Characteristics of the target market you want to reach
• What your competition offers
• The distinct benefits you offer
• A message you can use to explain what separates you from your competition
• Your action plan for delivering your message
• Your goals for your action plan, such as the number of client leads, new clients, or new cases per month

Your action plan will include the marketing channels you want to use to spread your message. Marketing specialists can help you identify the best channels for your marketing message and client base.

For example, if you practice intellectual property law, you need to reach business owners and in-house lawyers who want to protect their companies' brands, inventions, artistic works, and trade secrets. A marketing agency may help you create a marketing strategy geared toward trade publications and business magazines.

However, IP lawyers require an entirely different marketing strategy than firms that practice family law. Family lawyers need to market to individuals and will tailor their marketing efforts toward different marketing channels and messages.

Even if you expect most of your client leads to come from referrals, you still need brand recognition for those leads to find you. You should consider a website, basic SEO, legal directory, and bar association listings.

— 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

You should approach your budget as a living document. You will spend more money as you add more lawyers and staff members to your firm. But you can also look for ways to reduce your operating costs through investments in technology services and other cost-saving measures .

Your budget should set out the amount you expect to initially spend on start-up expenses. As you create your start-up budget, remember many of these expenses are not recurring. Furniture, computers, and office space build-outs can last several years. In short, your budget should answer the question, "What do you need to open a law firm?"

It should also lay out the amount you plan to spend each month to operate your firm. Here, you will include your recurring expenses, such as rent, staff salaries, insurance premiums, and equipment leases.

Using your operating budget, you will determine the amount of money you need to start and run your firm. This, in turn, will tell you whether you need to take out a loan or tap into your savings to start your law firm. You will need a plan for paying your expenses and day-to-day costs while your firm gets onto its feet.

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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

You want to project confidence as you prepare your business plan. Remember, you will use this plan to approach potential law partners, lenders, and merger targets. You need to show that you have a solid plan backed up by your financial projections.

At the same time, you need to remain realistic. Write a business plan that describes your business challenges as well as your competitive advantages.

For example, if you have a strong competitor that has a solid  law firm reputation management  and many of the clients you will target, acknowledge the difficulty of getting those clients to switch law firms. Describe your marketing strategies for approaching and pitching your law firm to those clients.

— Think Ahead

Remember that your business plan sets out the roadmap for both the establishment and operation of your law firm . Think about issues that could arise as your firm grows and matures.

For example, you may have a goal of reaching ten lawyers in three years. But as your staff grows, you may need a human resources manager. You may also seek to handle your payroll in-house instead of outsourcing it to a payroll provider. These changes will create ripple effects throughout your business plans. You will incur costs when you add staff members. You will also realize benefits like increased attorney efficiency.

At the same time, any projections more than five years into the future will likely be useless. Your firm and its clients will evolve, and technology will change how you practice law.

"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.

— Consult and Update If Necessary

Your plan should guide you as you build your firm. It contains your goals and the roadmap for reaching them. But your plan is not carved in stone.

As you face challenges, you will consult your plan to make sure you approach these challenges in a way consistent with achieving your goals. But under some circumstances, you might find that the plan no longer provides the right solution.

As you work with your firm and your law partners, your goals, processes, and solutions to problems may evolve. The technology your firm uses may change. Your law firm's costs may go up with inflation or down as you realize economies of scale. You should update your plan when this happens.

— Develop a Succession Plan for Your Law Firm

Creating a succession plan for a law firm is essential for ensuring a smooth transition and preserving the firm’s value. Drawing from the experiences of professionals in other fields, it is clear that lawyers often face unique challenges in succession planning. A well-structured exit strategy can help lawyers realize the value of their practice, whether they plan to retire or pursue other interests.

Firms generating over $2 million in revenue typically have invested in systems that make them more attractive and easier to transition. These systems are crucial in creating value and attracting buyers. A transition-based sale, where the selling attorney remains involved for a period, ensures a smooth handover of clients and referral sources, reducing the risk of value loss. Additionally, specialized, systematized, and profitable firms command higher valuations. By investing in robust systems and considering your exit strategy early, you can create lasting value, financial security, and peace of mind, making your law firm more sellable in the future.

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

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

There is no recipe for creating a business plan for law firm development. What goes into your mission statement and plan will depend on several factors, including your law firm's business model. But this is a feature, not a bug of developing a business plan.

The process of business planning will help you develop solutions to issues you might have overlooked. If you have law partners, just going through the process of creating a law firm business plan can ensure that everyone is on the same page.

As you create your plan, the process itself should provoke thoughts and ideas so you can have a unique law firm tailored to your goals and values. This will help you get exactly what you wanted when you started in the legal industry.

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

• 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

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To view the calculation tailored to your law firm's needs, please provide your email address

Consult with Sasha Berson, a legal marketing expert , to address your marketing needs.

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Law Firm Business Plan Template

Written by Dave Lavinsky

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.  

Law Firm Business Plan FAQs

What is the easiest way to complete my law firm business plan.

Growthink's Ultimate Business Plan Template allows you to quickly and easily complete your Law Firm Business Plan.

What is the Goal of a Business Plan's Executive Summary?

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 a chain of law firms?

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.

Other Helpful Business Plan Articles & Templates

• Sample Business Plans

Law Firm Business Plan

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.

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

Say goodbye to boring templates

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Plans starting from $7/month

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.

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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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

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

Image Source – Creately

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.

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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Free law firm business plan template.

Whether you’re starting a law firm or developing a plan to grow an existing firm, it’s important to document your goals and how you’ll achieve them. This is why we created an easy-to-use business plan template for law firms.

This template includes sections for:

• Executive summary
• Market analysis
• Marketing strategy
• Financial plan
• Organization and management

Law Firm Business Plan Template

Written by Dave Lavinsky

Law Firm Business Plan

You’ve come to the right place to create your Law Firm business plan.

We have helped over 1,000 entrepreneurs and business owners create business plans and many have used them to start or grow their Law Firms.

Below is a template to help you create each section of your Law Firm business plan.

Executive Summary

Business overview.

The Harris & Harris Law Firm is a startup up business that provides legal advice and services for clients located within the Scottsdale, Arizona region. The company is founded by Roger Harris and his son, Anthony. Roger Harris has been a partner in a well-established company, Foundations Law Firm, for over twenty years. Anthony Harris is a recent law school graduate who will begin his training under the scholarship of his father. With the extensive list of former clients in hand, Roger and Anthony are confident they can begin open their doors for business and grow the new law firm successfully.

Harris & Harris Law Firm will provide a comprehensive array of services for individuals or business entities who need advice and/or legal representation in court proceedings. Harris & Harris will provide a multi-prong approach to fashion specific solutions for each individual they represent; in that regard, all services are custom-packaged and provided for clients by the lawyers at Harris & Harris. This unique factor will set them above all other area lawyers, as most follow standard processes within the companies where they work.

Product Offering

The following are the services that Harris & Harris Law Firm will provide:

• Client-centric efforts in every case until resolution is found
• Unique process to fully explore client options in any dispute
• Creative and sustainable solutions on a case-by-case basis
• Prioritization of client needs above all else
• Dedication to professionalism and honesty
• Equally dedicated to securing the correct outcomes for our clients
• Team of highly-skilled lawyers who create winning solutions

Customer Focus

Harris & Harris will target the residents of Scottsdale, Arizona. They will also target medium-to-large businesses within Scottsdale, Arizona. They will target former associates and lawyers with whom they can collaborate in the future. They will target residents who have been served a summons for civil or criminal case appearances, whether as a witness, interested party or a potential defendant.

Management Team

Harris & Harris will be owned and operated by Roger Harris. He recruited his son, Anthony, to join the new firm upon Anthony’s recent graduation from law school. Within the next ten years, depending on performance, Anthony will receive incremental distributions of up to 49% of the company value in private stock. This will be based on Anthony’s performance and growth in the company as his role expands.

Roger Harris was formerly a partner in a well-established company, Foundations Law Firm, for over twenty years. He practiced law in the personal law arena, including wills and probates, trusts and other forms of personal law. He also managed the real estate law team at his former place of employment. Roger’s role in Harris & Harris will be the President, with the primary responsibility of driving new client traffic to the company. Roger has recruited Anthony, Richard Cummings, and Torey Crouch to begin their employment at Harris & Harris, as well.

Anthony Harris is a recent law school graduate who will begin his training under the scholarship of his father. Anthony will specialize in a unique processing of individual cases by creating algorithms that will specify which outcomes will best serve the client. Anthony will also represent clients in court and assist in defense appearances. With the extensive list of former clients in hand and the unique processes they’ve designed for clients going forward, Roger and Anthony are confident they can begin and grow the new law firm successfully.

Richard Cummings, a former associate of Roger Harris, will take on the role of Managing Partner in the launch of Harris & Harris. He will oversee all junior partners and staff, as the total number of lawyers grows expeditiously over the first few years.

Torey Crouch, a former law student with Anthony Cummings, will take on the role of Research & Records Manager, as she will form the background work necessary for all the other lawyers on staff.

Success Factors

Harris & Harris Law Firm will be able to achieve success by offering the following competitive advantages:

• Friendly, knowledgeable, and highly-qualified team of Harris & Harris Law Firm
• Comprehensive menu of services designed to provide specific customer-centric solutions
• Specializations in real estate, trusts, probate, civil and criminal law are all offered under this multi-pronged services of Harris & Harris Law Firm
• Harris & Harris offers family discounts and other forms of packages for clients.
• Harris & Harris offers a “monthly pay” program for clients who need to spread out payments over time.

Financial Highlights

Harris & Harris Law Firm is seeking $200,000 in debt financing to launch its Harris & Harris Law Firm. The funding will be dedicated toward securing the office space and purchasing office equipment and supplies. Funding will also be dedicated toward three months of overhead costs to include payroll of the staff, rent, and marketing costs for the print ads and marketing costs. The breakout of the funding is below:

• Office space build-out: $20,000
• Office equipment, supplies, and materials: $10,000
• Three months of overhead expenses (payroll, rent, utilities): $150,000
• Marketing costs: $10,000
• Working capital: $10,000

The following graph outlines the financial projections for Harris & Harris Law Firm.

Company Overview

Who is harris & harris law firm.

Harris & Harris Law Firm is a newly established, full-service law firm in Scottsdale, Arizona. Harris & Harris Law Firm will be the most reliable, solution-centric and effective choice for clients in Scottsdale and the surrounding communities. Harris & Harris Law Firm will provide a comprehensive menu of attorney services for any individual, family or business to utilize. Their full-service approach includes a comprehensive array of services that are uniquely prepared for each client.

  Harris & Harris Law Firm will be able to serve the residents and businesses of Scottsdale. The team of professionals are highly qualified and experienced in all aspects of the law and several permutations of legal representation. Harris & Harris Law Firm removes all headaches and issues of securing a comprehensive law firm that is reliable and dedicated to clients, and ensures all issues are taken care of expeditiously, while delivering the best customer service.

Harris & Harris Law Firm History

Since incorporation, Harris & Harris Law Firm has achieved the following milestones:

• Registered Harris & Harris Law Firm, LLC to transact business in the state of Arizona.
• Has a contract for 10,000 square feet of office space midtown Scottsdale office buildings
• Reached out to numerous former clients and contacts to consider Harris & Harris for all their legal representation needs.
• Began recruiting a staff of five lawyers and three office personnel to work at Harris & Harris.

Harris & Harris Law Firm Services

The following will be the services Harris & Harris Law Firm will provide:

• Dedication to professionalism and honest dialogue

Industry Analysis

The law firm industry is expected to grow over the next five years to over $75 billion. The growth will be driven by an increased population requiring legal representation The growth will be driven by the increase of income for individuals, which can support the decision to hire representation. The growth will be driven by the increase in faulty or misleading documents, agreements, and certifications. The growth will be driven by legal firms who collect fees for business mergers and negotiations. Costs will likely be reduced as current technology becomes dated and new, higher-performing technological advances are employed.

Customer Analysis

Demographic profile of target market.

Customer Segmentation

Harris & Harris Law Firm will primarily target the following customer profiles:

• Residents of Scottsdale region
• Businesses within Scottsdale region
• Former associates and clients with whom they can collaborate
• Individuals or businesses that have been served with a summons to appear in court

Competitive Analysis

Direct and indirect competitors.

Harris & Harris Law Firm will face competition from other companies with similar business profiles. A description of each competitor company is below.

Diamond & Johnson Defense

Diamond & Johnson Defense is a law firm located in Phoenix, Arizona. The firm was established in 1998 and has three partners who oversee all cases: Robert Anderson, who is a lead criminal defense attorney; Lisa Martinez, who is a criminal appeals and post-conviction relief attorney, and David Collin, an investigations and trial preparation lawyer. The law firm has a total of six attorneys who specialize in criminal defense, and six office staff, who communicate directly with each lawyer on staff.

Diamond & Johnson Defense is known as “The Defendant’s Law Firm” in Scottsdale, as 99% of the law practice is focused on personal law representation in civil or criminal court cases. The law firm charges fees within the top 5% in the county for personal representation. The years of practice have proven to be winning ones for Diamond & Johnson Defense, as over 69% of their clients have been released without any prison time. The team at D & J Defense are known to be highly-skilled at investigations and trial preparation, with several team members who will take on a single case to thoroughly cover every possible defense for each client.

Legacy Law Associates

Legacy Law Associates is well-known as a “compassionate” team of attorneys, specializing in family wills and trusts. With a team of dedicated and experienced attorneys, the firm aims to provide comprehensive legal services that meet the goals of each client or family who need legal services during a difficult season of life. Legacy Law Associates consists of a partnership of two attorneys, Jonathan Dunlap and David Sessions, who established the law firm in 2005 in Phoenix after graduating from law school together. Together, the co-owners seek families who have legal needs after the death of a family member; such as estate negotiations, final documents and closures, trustee assistance, probate searches, and confidential proceedings per the will of any individual. The law firm has hired a private secretary for each partner and is housed in a small office in downtown Phoenix. The firm has not grown since 2007 and does not choose to make that a pivotal goal for their partnership, relying instead on the on-going legal processes of trusts, wills, probate and other related items.

Construction Defect Law Firm

The Construction Defect Law Firm is owned and operated by Chip Jackson and is located in Green Valley, Arizona. The focus of the law firm is to represent homeowners who have determined a new or nearly-new home contains construction defects. In most cases, the home builder has moved on from the geographic region and, even when contacted repeatedly, is unwilling to rectify the situation by repair or monetary refund.

Chip Jackson is a highly-skilled evaluator and contractor within the construction industry. He is able to determine the viability of most construction issues with merely a cursory examination and has proven over the past ten years to be a worthy adversary in the courtroom. He wins 98% of all cases he brings into the courtroom. Chip’s clients are always homeowners who have been victims of construction defects in homes that are typically new or less than ten years old. His skill set includes negotiation outside the courtroom, compelling videos of problematic construction processes, drone footage of damaged rooftops, chimneys and other areas not typically viewed by homeowners and other support graphics that demonstrate the defects of the property.

Competitive Advantage

Harris & Harris Law Firm will be able to offer the following advantages over their competition:

Marketing Plan

Brand & value proposition.

Harris & Harris Law Firm will offer the unique value proposition to its clientele:

Promotions Strategy

The promotions strategy for Harris & Harris Law Firm is as follows:

Word of Mouth/Referrals

Harris & Harris Law Firm has built up an extensive list of contacts over the years by providing exceptional service and expertise to former clients and associates. This group will follow Roger and Anthony to their new company and help spread the word of Harris & Harris Law Firm.

Professional Associations and Networking

Harris & Harris Law Firm will take an active role in all community organizations and networking events, where they can spread the word about the launch and start of their company. The law firm will offer an Open House specifically for association members to acquaint the city of Scottsdale with their new services and location.

Website/SEO Marketing

Harris & Harris Law Firm will fully utilize their website. The website will be well organized, informative, and list all the services that Harris & Harris Law Firm provides. The website will also list their contact information and list their available reservation times to meet with one of the attorney’s for an initial consultation. The website will employ SEO marketing tactics so that anytime someone types in the Google or Bing search engine “law firm services” or “lawyer near me”, Harris & Harris Law Firm will be listed at the top of the search results.

The pricing of Harris & Harris Law Firm will be moderate and on par with competitors so customers feel they receive excellent value when purchasing their services.

Operations Plan

The following will be the operations plan for Harris & Harris Law Firm. Operation Functions:

• Roger Harris will be the Owner and President of the company. He will engage and manage new client relations.
• Anthony Harris will be the Legal Outcomes & Research Manager for the company. He will work with clients to craft potential outcomes based on algorithms and research.
• Richard Cummings will take on the role of Managing Partner and, as such, will oversee junior partners and staff, as the total number of staff lawyers is expected to markedly grow in the coming five years.
• Torey Crouch will take on the role of Research & Records Manager, where she will support and provide research for all junior and senior attorney staff members. She will also oversee the office personnel.

Milestones:

Harris & Harris Law Firm will have the following milestones completed in the next six months.

• 5/1/202X – Finalize contract to lease office space
• 5/15/202X – Finalize personnel and staff employment contracts for the Harris & Harris Law Firm
• 6/1/202X – Finalize contracts for Harris & Harris Law Firm clients
• 6/15/202X – Begin networking at association meetings and industry events
• 6/22/202X – Begin moving into Harris & Harris Law Firm office
• 7/1/202X – Harris & Harris Law Firm opens its office for business

Financial Plan

Key revenue & costs.

The revenue drivers for Harris & Harris Law Firm are the fees they will charge to clients for the legal services and representation they provide.

The cost drivers will be the overhead costs required in order to staff Harris & Harris Law Firm. The expenses will be the payroll cost, rent, utilities, office supplies, and marketing materials.

Funding Requirements and Use of Funds

Harris & Harris Law Firm is seeking $200,000 in debt financing to launch its law firm. The funding will be dedicated toward securing the office space and purchasing office equipment and supplies. Funding will also be dedicated toward three months of overhead costs to include payroll of the staff, rent, and marketing costs for the print ads and association memberships. The breakout of the funding is below:

Key Assumptions

The following outlines the key assumptions required in order to achieve the revenue and cost numbers in the financials and in order to pay off the startup business loan.

• Number of Clients Per Month: 125
• Average Revenue per Month: $325,000
• Office Lease per Year: $100,000

Financial Projections

Income statement.

Balance Sheet

Cash Flow Statement

Law Firm Business Plan FAQs

What is a law firm business plan.

A law firm business plan is a plan to start and/or grow your law firm business. Among other things, it outlines your business concept, identifies your target customers, presents your marketing plan and details your financial projections.

You can easily complete your Law Firm business plan using our Law Firm Business Plan Template here .

What are the Main Types of Law Firm Businesses? 

There are a number of different kinds of law firm businesses , some examples include: Commercial Law, Criminal, Civil Negligence, and Personal Injury Law, Real Estate Law, and Labor Law.

How Do You Get Funding for Your Law Firm Business Plan?

Law Firm businesses are often funded through small business loans. Personal savings, credit card financing and angel investors are also popular forms of funding.

What are the Steps To Start a Law Firm Business?

Starting a law firm business can be an exciting endeavor. Having a clear roadmap of the steps to start a business will help you stay focused on your goals and get started faster.

1. Develop A Law Firm Business Plan - The first step in starting a business is to create a detailed law firm business plan that outlines all aspects of the venture. This should include potential market size and target customers, the services or products you will offer, pricing strategies and a detailed financial forecast. 

2. Choose Your Legal Structure - It's important to select an appropriate legal entity for your law firm business. This could be a limited liability company (LLC), corporation, partnership, or sole proprietorship. Each type has its own benefits and drawbacks so it’s important to do research and choose wisely so that your law firm business is in compliance with local laws.

3. Register Your Law Firm Business - Once you have chosen a legal structure, the next step is to register your law firm business with the government or state where you’re operating from. This includes obtaining licenses and permits as required by federal, state, and local laws.

4. Identify Financing Options - It’s likely that you’ll need some capital to start your law firm business, so take some time to identify what financing options are available such as bank loans, investor funding, grants, or crowdfunding platforms.

5. Choose a Location - Whether you plan on operating out of a physical location or not, you should always have an idea of where you’ll be based should it become necessary in the future as well as what kind of space would be suitable for your operations.

6. Hire Employees - There are several ways to find qualified employees including job boards like LinkedIn or Indeed as well as hiring agencies if needed – depending on what type of employees you need it might also be more effective to reach out directly through networking events.

7. Acquire Necessary Law Firm Equipment & Supplies - In order to start your law firm business, you'll need to purchase all of the necessary equipment and supplies to run a successful operation.

8. Market & Promote Your Business - Once you have all the necessary pieces in place, it’s time to start promoting and marketing your law firm business. This includes creating a website, utilizing social media platforms like Facebook or Twitter, and having an effective Search Engine Optimization (SEO) strategy. You should also consider traditional marketing techniques such as radio or print advertising. 

Learn more about how to start a successful law firm business:

• How to Start a Law Firm

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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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Business Plan Template for Law Firms

• Great for beginners
• Ready-to-use, fully customizable Subcategory
• Get started in seconds

Starting a law firm requires careful planning and strategic thinking. To ensure success, you need a comprehensive business plan that covers all the essential aspects of your practice. Look no further than ClickUp's Business Plan Template for Law Firms!

This template is specifically designed to help law firms, whether established or just starting out, create a robust and effective business plan. With ClickUp's template, you can:

• Outline your strategic goals, target market, and competitive analysis
• Create accurate revenue projections and financial forecasts
• Detail your operational processes and resource allocation
• Develop a powerful marketing strategy to attract clients and secure investment

Don't waste precious time and energy trying to create a business plan from scratch. Get started with ClickUp's Business Plan Template for Law Firms and set your legal practice on the path to success today!

Business Plan Template for Law Firms Benefits

A business plan template specifically designed for law firms offers a range of benefits, including:

• Streamlining the process of creating a comprehensive business plan
• Providing a structured framework to outline strategic goals and objectives
• Helping law firms identify their target market and develop effective marketing strategies
• Enabling competitive analysis to understand the market landscape and position the firm effectively
• Assisting in projecting revenue and financial forecasts to attract potential investors or secure funding
• Offering operational details to efficiently manage the day-to-day activities of the legal practice
• Empowering law firms to make informed decisions and adapt to changing market conditions.

Main Elements of Law Firms Business Plan Template

ClickUp's Business Plan Template for Law Firms is designed to help law firms outline their strategic goals, target market, revenue projections, operational details, and marketing strategies, ensuring they can effectively manage their legal practices and attract clients and investment. This template includes:

• Custom Statuses: Track the progress of each section of your business plan, including Complete, In Progress, Needs Revision, and To Do, so you can easily monitor the status of each task and ensure all components are on track.
• Custom Fields: Utilize custom fields such as Reference, Approved, and Section to add additional information to your business plan, making it easier to categorize and organize your content.
• Custom Views: Access different views, including Topics, Status, Timeline, Business Plan, and Getting Started Guide, to view your business plan from various perspectives, ensuring you have a comprehensive understanding of your strategy and progress.

How To Use Business Plan Template for Law Firms

When it comes to creating a business plan for your law firm, the process can feel overwhelming. But with the help of ClickUp's Business Plan Template for Law Firms and these four simple steps, you'll be well on your way to developing a comprehensive and effective plan that sets your firm up for success.

1. Define your firm's vision and mission

Start by clearly outlining the vision and mission of your law firm. What are your long-term goals? What sets your firm apart from others? Defining these key elements will provide a strong foundation for your business plan and guide your decision-making process moving forward.

Use a Doc in ClickUp to articulate your firm's vision and mission statement, ensuring that it's concise, compelling, and aligns with your overall business goals.

2. Analyze your target market and competition

Next, conduct a thorough analysis of your target market and the competitive landscape. Who are your ideal clients? What are their needs and pain points? Who are your main competitors, and what differentiates your firm from them? Understanding these factors will help you strategically position your firm and develop effective marketing and client acquisition strategies.

Utilize the Table view in ClickUp to create a detailed market analysis, including key market trends, target audience demographics, and competitive advantages.

3. Develop your service offerings and pricing strategy

Now it's time to outline the specific legal services your firm will offer and establish a pricing strategy. Consider the areas of law you specialize in, the types of clients you want to attract, and the value you provide. Additionally, determine your fee structure, whether it's hourly rates, fixed fees, or a combination of both, and ensure it aligns with industry standards and your target market's expectations.

Create tasks in ClickUp to define your service offerings, pricing structure, and any additional revenue streams you plan to pursue, such as consultations or legal advice packages.

4. Create a financial plan and set goals

The final step is to develop a comprehensive financial plan for your law firm. This includes projecting revenue and expenses, setting financial goals, and establishing a budget. Consider factors such as overhead costs, staffing requirements, marketing expenses, and potential revenue growth opportunities. Setting measurable goals and regularly reviewing your financial performance will help you stay on track and make informed decisions for the future of your firm.

Use Dashboards in ClickUp to track your financial goals and monitor key metrics such as revenue, expenses, and profitability. Set recurring tasks to review and update your financial plan regularly, ensuring it remains aligned with your firm's objectives.

By following these four steps and utilizing ClickUp's Business Plan Template for Law Firms, you'll have a well-structured and comprehensive business plan that serves as a roadmap for success in the legal industry.

Get Started with ClickUp’s Business Plan Template for Law Firms

Law firms can use the Business Plan Template for Law Firms in ClickUp to create a comprehensive and strategic plan for their legal practice.

First, hit “Add Template” to sign up for ClickUp and add the template to your Workspace. Make sure you designate which Space or location in your Workspace you’d like this template applied.

Next, invite relevant members or guests to your Workspace to start collaborating.

Now you can take advantage of the full potential of this template to create a solid business plan:

• Use the Topics View to outline the different sections of your business plan, such as strategic goals, target market, competitive analysis, and revenue projections
• The Status View will help you track the progress of each section, with statuses like Complete, In Progress, Needs Revision, and To Do
• The Timeline View will give you a visual representation of the deadlines and milestones for your business plan
• The Business Plan View will provide an overview of your entire plan, allowing you to easily navigate and make updates
• The Getting Started Guide View will provide step-by-step instructions and tips to help you get started with your business plan
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Law Firm Business Plan

Start your own law firm business plan

Wy'East Law Firm

Executive summary executive summary is a brief introduction to your business plan. it describes your business, the problem that it solves, your target market, and financial highlights.">.

Wy’East Law Firm (WLF) is a boutique technology law firm located in Portland, Oregon. The firm will be lead by Richard Bloom, a seasoned attorney previously with (name omitted)’s e-group. WLF will service all needs generated by technology firms, with specialization on mergers and acquisitions and qualified stock option plans; and handles both start-up and established companies.

In addition to WLF’s technology practice, we will offer public interest legal work at subsidized rates. The technology practice will allow the firm to be able to provide public interest organizations legal help at the cost of overhead.

WLF is a limited liability company founded and lead by Richard Bloom.

1.1 Objectives

The objectives for WLF for the first three years of operation include:

• To create a law firm whose primary goal is to exceed customer’s expectations.
• To develop a client list that includes at least 20 companies, each with revenues of over $3 million.
• To increase the ability to serve public interest organizations each year.
• To be able to offer each year some legal services at a subsidized rate.

1.2 Mission

The mission of Wy’East Law Firm is to provide the Portland community with technological and public interest legal guidance. We exist to attract and maintain customers and to support the public interest community. When we adhere to this maxim, everything else will fall into place.

Company Summary company overview ) is an overview of the most important points about your company—your history, management team, location, mission statement and legal structure.">

WLF is a law firm serving technology companies and public interest organizations, and will subsidize its public interest work with local companies. WLF specializes in mergers and acquisitions as well as stock option plans, but can handle most legal needs for a technology company.

The technology work will subsidize the company’s public interest work which will be billed out at the cost of overhead.

2.1 Company Ownership

WLF is a limited liability company, owned solely by Richard Bloom.

2.2 Start-up Summary

WLF’s start-up costs will include all equipment needed for the home office, website creation, and advertising.

The home office equipment will be the largest chunk of the start-up expenses. This equipment includes 4 computers, a fax machine, copier, cellular phone, office supplies, additional land line, a DSL connection, and office furniture.

Start-up expenses will also include advertising. Two methods will be used: a content-only website and the Yellow Pages. 

WLF will provide provide law services to two different groups of customers.

• Technology law services . WLF will provide legal services to high technology clients, to both start-up companies and established firms. While the firm excels in mergers, acquisitions, and qualified stock option plans, we also have experience in almost any legal field that a tech firm encounters. These clients, billed at market rate, will subsidize the public interest clients.
• Public interest law . WLF will serve regional public interest organizations, with a concentration on environmental and civil rights organizations. For most public interest organizations, good legal help is expensive. By using technology clients to subsidize the cost of legal fees for public interest firms, WLF is able to make significant contributions back to the community.

Market Analysis Summary how to do a market analysis for your business plan.">

WLF’s customers can be divided into two groups, technology firms and public interest organizations.

• Public interest organizations . These clients will be diversified, some are environmental organizations others are civil rights groups. While some public interest organizations receive their legal services for free (pro bono) from some attorneys, there is an extreme shortage of legal help for these organizations. Therefore, it is quite attractive to these organizations to have the possibility of receiving top legal help at a subsidized rate. Attracting these clients will not be the problem, the difficulty will be for Richard to select which organization will receive his help.

4.1 Target Market Segment Strategy

WLF will be targeting high technology companies for two reasons.

• Although the economy has taken a recent plummet, particularly technology firms, technology is still a growing sector of the economy. This is evidenced by the fact that 17 out of the top 25 fastest growing companies are technology firms, according to The Business Journal of Portland.
• Technology is Richard’s area of expertise. Richard practiced law at one of the top three law firms in Portland and was in their e-group, concentrating on technology firms. His experience, coupled with his network of colleagues within the industry, makes technology firms attractive customers.

WLF will be targeting public interest organizations for one simple reason, a desire to give back to the community. Public interest work is inherently altruistic to some degree. Generally, the person performing the work receives a good feeling for his/her contribution, but in today’s capitalistic society, someone who donates his/her time at far below market wages should be considered altruistic.

4.2 Service Business Analysis

The technology law practice is fairly competitive in Portland. Most larger, more prestigious firms have attorneys who specialize in technology. Some smaller firms also have attorneys who do work for technology companies. Lastly, there are boutique firms, like WLF. As a service-based industry, the practice of law is driven by personal relationships and reputation. Potential clients choose attorneys based on reputation and who they are familiar with or are recommended to. Therefore, if the attorney is providing better service to a client, the client is likely to form a long lasting business relationship with the client.

WLF has the advantage that when Richard left (name omitted) he brought 15 of his clients, which, for now, are almost enough to survive on.

Strategy and Implementation Summary

WLF will be courting new technology clients through networking and advertisements in the Yellow Pages, Business Journal of Portland, and other technology specific regional journals. As stated earlier, WLF has a sufficient amount of business at day one, however, more technology clients means the ability to perform more public interest work.

Richard will be attending the Portland Venture Group meetings as well as other informal gatherings of technology companies to network with the different technology firms in the region. These networking activities along with advertisements in appropriate media forms will allow WLF to steadily grow their list of clients.

5.1 Competitive Edge

WLF’s competitive advantage will be based on two factors, experience and specialization:

• Experience. Richard brings to WLF three years of practicing technology law at a top firm in Portland. Reputation carries a lot of weight and Richard’s time at (name omitted) means a lot in the Portland legal community and is very attractive to prospective clients. Additionally, beyond the reputation of working for a coveted firm, is the fact that the three years spent at (name omitted) provided Richard with big name clients.
• Specialization. As a boutique firm that concentrates on technology companies, WLF is in a desirable situation because it’s knowledge base is considerable, relative to other firms that practice a wide range of law.

5.2 Sales Strategy

WLF’s sales strategy will begin with months two through five with the goal of serving the existing customer base of clients. The absence of bringing in new clients during this time is purposeful, it allows WLF and the existing clients to form a new relationship at WLF, different from their previous relationship at (name omitted).

Month six will signal WLF’s conscious effort to generate new clients. Using the previously mentioned networking techniques, Richard, through personal communications, will convince prospective clients of the value of a boutique technology law firm, specifically the depth of knowledge and the close attention that the client will get when dealing with a small firm.

Regarding the public interest organizations, there will be less of a sale strategy, more of a choosing of the organizations that Richard wants to represent. There are so many needy public interest organizations that Richard will have to pick and choose those that he wishes to help out.

5.2.1 Sales Forecast

The first month will be spent setting up the home office. This will include setting up the office, a conference room, and all of the computer equipment. During the first month, Richard will also be serving some existing technology clients and some public interest clients. We project that if we spend 1/3 of our time on the technology clients, this would sufficiently subsidize the public interest clients so we would only have to cover overhead expenses.

By month six, Richard will begin actively soliciting new clients. Between months one and five he will continue networking, though will not be actively seeking customers. From month seven on and there will be a slight increase in clients taken aboard. There will be only a slight increase so as to create solid relationships with the new and existing clients. Richard will be cognizant of the possibility of growing too fast and not being able to offer the same quality service to his clients.

5.3 Milestones

WLF will have several milestones early on:

• Business plan completion.
• Set up home office.
• First month of total technology subsidy.

Management Summary management summary will include information about who's on your team and why they're the right people for the job, as well as your future hiring plans.">

Wy’East Law Firm is an Oregon Corporation founded and run by Richard Bloom. Richard has a degree in Political Science from the University of Colorado, Boulder, and a J.D. from Lewis and Clark University. While at Lewis and Clark, Richard was the President of the school’s Public Interest Student Organization. It was through this organization that Richard became fond of public interest law. After graduation, Richard went to work for (name omitted) for three years in the e-group which concentrated on technology. While working in the e-group, Richard worked on technology issues with a number of well known start-up organizations and established companies.

One of the perks working at (name omitted) was his ability to do pro bono work which counted toward his required yearly billable hours requirement. Richard has spent a fair amount of time with 1000 Friends of Oregon and other public interest organizations. After three years however, Richard was feeling constrained and desired more autonomy. He decided to leave and start his own firm. Richard was able to bring a fair number of his clients from (name omitted) to his new firm, helping the transition from leaving an established practice to hanging out his own shingle and starting over. 

6.1 Personnel Plan

The staff will consist of Richard working full time. In addition to Richard, a part-time secretary and part-time paralegal will join WLF by month two. Month four will bring WLF a law clerk, and a second law clerk by month eight.

Financial Plan investor-ready personnel plan .">

The following sections will outline important financial information.

7.1 Important Assumptions

The following table details important assumptions.

7.2 Projected Profit and Loss

The following table and charts present the projected profit and loss.

7.3 Break-even Analysis

The Break-even Analysis indicates what WLF will need in hours and revenue a month to reach the break-even point.

7.4 Projected Cash Flow

The following chart and table show anticipated cash flow.

7.5 Projected Balance Sheet

The following table displays the projected balance sheet.

7.6 Business Ratios

Industry profile ratios based on the NAICS code 541110, Offices of Lawyers, are shown in the table below.

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How to Create a Law Firm Business Plan

What is in a law firm business plan.

A law firm business plan is an essential piece of document that outlines the goals and growth strategies of your venture. Ideally, it contains several components, such as an executive summary, company description, marketing strategy, financial plan, and organizational structure. 

Why Your Law Firm Needs a Business Plan

Here are some of the biggest reasons why you need a law firm business plan:

• Establish your position in the market with unique value propositions.
• Set realistic goals to drive your marketing and business development forward. 
• Better manage your law firm by guiding your decision-making process.  
• Define an organizational structure for effective communication and collaboration workflows.
• Make better hiring decisions to keep your workforce as lean and efficient as possible. 
• Ensure your capital is invested and allocated wisely. 
• Create a profitable business model moving into the future. 

Things to Consider Before Creating Your Business Plan

As a law firm, your business plan lays the foundation for a financially and professionally successful firm. It’s not something that you can go back to and revise whenever you want. 

So, before creating your business plan, settle down and gather your thoughts on how you envision your firm’s success. 

More specifically, you need to deliberate on your law firm’s goals, fee structure, and revenue targets. 

Define Your Goals

How would you define success as far as running a law firm goes? What are the positive values you want to live by, and how will they benefit your future clients?

A well-defined goal may not seem as important initially, but it significantly impacts your decision-making as you flesh out your business plan. 

Your goals can affect how you hire your staff, build your law firm website , plan your pricing, and so on. They will also help you plot out short- to mid-term goals, which serve as milestones that bring you closer to your long-term goals. 

Some examples are:

• To have acquired 200 clients by the end of the first year in business.
• Build a solid law firm brand and grow online traffic by 200% in the first six months.
• Attain a case closure rate of at least 80% by the beginning of the third quarter. 

Build Your Firm’s Fee Structure

Building your fee structure is an important step that also helps determine if your specified short-term objectives are realistic. 

It’s generally a good idea to look at how competitors charge clients for their services. This should give you a baseline rate for similar services you offer.

You can also adopt policies like “no fee unless you win” over an hourly rate, which can attract clients by transferring risk to the firm. 

Set Your Revenue Targets

Your annual revenue target is the last measurable piece of information you need to pin down before preparing your law firm business plan. 

Don’t be afraid to aim high and exceed the average annual salary of attorneys in your law practice area. Keep in mind that, on top of essential expenses like student loan payments, office lease, insurance, and mortgages, you’ll need more funds for marketing your law firm and growing your team. 

To put things into perspective, 2024 data from PayScale revealed that the average annual salary of lawyers in the United States is $97,720.  

You can use the average salary as your baseline and increase your target revenue based on how much you’re willing to spend on marketing, advertising, and hiring. 

Factor in your fee structure to determine how many clients you need. Of course, you should also consider the number of founding lawyers that your firm starts with. 

Finally, use your own discretion and only lower the bar if you believe your target revenue is not humanly possible in terms of caseload. For example, if your target revenue requires you to handle over 150 active cases a month (which most lawyers would still consider attainable — depending on their practice area), you may need to readjust your expectations. 

8-Point Law Firm Business Plan Checklist

Now that you have nailed your goals, fee structure, and target revenue, it’s time for the nitty-gritty of building a law firm business plan. 

Here’s a rundown of all the key details you must include:

1. Executive Summary

The executive summary provides a concise, top-level overview of all the other elements of your business plan. It also encapsulates three points that give your law firm its unique identity, namely: 

• Mission statement: A mission statement focuses on your firm’s purpose and guiding principles, including your commitment to new clients. It should ideally be two sentences at most.
• Core values: Your core values should reflect what you stand for as a legal professional — guiding your firm through tough decisions and challenging cases. Looking for employees who resonate with your core values also helps build a more productive, collaborative, and tightly-wound workplace culture.
• Unique value/selling proposition: A Unique Selling Proposition (USP) is a more direct statement that answers the question, “Why should clients pick you?” Try to capture the benefits and unique qualities that make your firm stand out.

2. Company Description

Next up, the company description summarizes the technical details of your business operations. This provides partners and potential investors a general idea of what your firm does on a day-to-day basis. 

Below are the aspects that your firm description should cover: 

• Services and target audience: What specific legal services do you offer, and who are they for?
• Legal structure: What is the legal structure of your firm (e.g., sole proprietorship, limited liability company (LLC), limited liability partnership)? If you’re forming a partnership, be sure to include the names and practice areas of each partner. 
• Service locations: Where is your office’s location, and which areas do you serve?

3. Market Analysis

Every business plan — regardless of industry — needs preemptive market research to set initial financial projections on revenue and marketing performance.

Dig deep to gauge the demand for your services, how your target audience makes hiring decisions, who your competitors are, and your potential clients’ spending power. Your local bar association website should be a great place to start, along with local attorney directories and legal industry reports. 

Be sure your line of inquiries encompasses the following details:

• Your ideal client: Who are you marketing your law firm to? Fill this information with demographic data, such as age, gender, occupation, and location. 
• Client motivations: Why do prospects need your legal services? List down their pain points and the qualities they’re looking for in a law firm.
• Industry description: What is the projected size of your market? Are there any ongoing trends to consider?
• Competitive analysis: Build a list of known competitors in your area (similar practice areas serving the same location). You may also include indirect competitors that also compete for your target audience’s attention. 
• Projections: How much are your ideal clients willing to pay for legal services? This will help you make fine adjustments to your fee structure.

4. Organization and Management Structure

The next section of your law firm business plan expands on the details of your partners and core staff members. 

This process is as straightforward as it gets. Just write up their names, law school, experience, and primary roles in your new firm. 

For bigger firms, you may need to create an organizational chart that visualizes who each member reports to. 

5. Legal Services

After filling out the organization and management section, create summaries of the legal services your firm will provide. 

For example, if you run a business law firm, are you going to cater to dispute resolution, intellectual property, contracts, estate planning, or corporate tax clients? 

What specific problems do these services solve? What is your flat fee per hour or case? 

More importantly, what are your firm’s unique advantages over competitors that offer similar services? 

6. Marketing Strategy

Next comes the more challenging aspects of drawing up a law firm business plan. 

In the marketing plan or strategy section, you need to determine a handful of details that play a critical role in your firm’s growth. This includes: 

• Target client persona: Briefly describe the profile of your target market (as defined in your market analysis). Then, identify their media consumption preferences, like social media, magazines, and search engines. 
• Marketing goals: Map out the marketing objectives you wish to accomplish within set timeframes. For example, are you looking to generate a specific number of leads through online marketing or securing more referral leads from local business partnerships? 
• Key Performance Indicators (KPIs): Which KPIs will you use to measure law firm marketing success? You can set target values and brackets to rate the performance of your strategies (getting 10+ clients a month can be rated as excellent, whereas getting less than three clients can be rated as very poor). 
• Strengths, Weaknesses, Opportunities, and Threats (SWOT) analysis: An in-depth SWOT analysis can help you set campaign-level objectives for your marketing efforts. For example, having a lot of perfect, five-star reviews on your Google Business Profile is a strength you can leverage to boost your brand image. 
• Marketing platforms: What content creation and distribution channels will you use to market your law firm? Depending on your answer, which tools and services do you need to make the most out of your channels? 
• Marketing budget: Finally, you need to cook up a detailed law firm marketing budget . Itemize the platforms and strategies you want to use and allocate a budget accordingly (e.g., $3,000 for SEO, $4,000 for billboards, and $2,000 for PPC advertising ). 

7. Financial Plan 

A solid financial plan does two things: ensure your firm doesn’t run out of cash and create a positive profit margin needed for growth. 

Since you’re still building your business plan, you only need to focus on your first year. 

Here are the items you need to include: 

• Monthly expenses: In addition to your marketing budget, you need to take into account other expenses. Some examples are office space, utilities, IT support, and salaries. 
• Monthly target revenue (up to 12 months): Based on the fee structure and revenue goals you calculated earlier, determine the monthly revenue you need to be on track. This should be well above your firm’s monthly expenses. 
• Cash flow statement: Attach a cash flow statement to the financial plan section of your law firm business plan. Update your revenue, expenses, and budget accordingly throughout the year. 

8. Startup Budget

The startup budget section underlines everything you need to turn your law firm business plan into reality. With extra attention to detail, you can also use it to find opportunities to lower your overhead costs. 

Wrap up your business plan by finalizing the following:

• Sources of capital: How will you fund your new law firm? Where is the money coming from?
• Capital allocation: Where will your firm’s initial funds be spent? This can be the same as the expenses table of your financial plan — with the addition of upfront costs like LLC formation and business registration fees. 

5 Law Firm Business Plan Templates to Get You Started

Feel free to use the checklist above to create your law firm business plan from scratch. Or, you can streamline the process by using any of the templates below: 

• Law Office Business Plan — This template was created by the Oregon State Bar Professional Liability Fund and includes guide questions to help you enter the required information. 
• Practice Support Business Plan — This downloadable business plan template by the Law Society of Ireland helps you include specific details like your would-be business contact information, assets, and business continuity planning. 
• Startup Business Plan — Canva is home to dozens of graphic business plan templates, including this one, which has all the important sections you need for your law firm. 
• Law Firm Business Plan Outline — If you need pointers as you write your business plan, this simple template from practicePRO ensures you don’t miss important details. 
• Attorney Business Plan — Lastly, this business plan sample by BCG Attorney Search is for individual lawyers looking to start a small firm or grow their legal practice as a solo attorney.

How About a Custom Marketing Strategy to Execute Your Business Plan?

With your business plan ready, the stage is set for a productive and profitable year for your own law firm. Let’s make sure you hit your goals . Contact us to get a custom marketing strategy crafted specifically for your firm’s needs .

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A Complete Strategy for Creating a Law Firm Business Plan

You’ve invested so much time into completing and graduating from law school and studying and passing the state bar exam. Maybe you spent years working at law firms, in government, or in corporate law. Now you’re ready to open your own firm, and you want to do it right so all those years of hard work pay off. You need a law firm business plan.

But do you know where to begin? What should your business plan include? What are the challenges you know and, most importantly, what don’t you know? 

Start with the basics. What are your values? What do you want to achieve with your law firm? What will make your firm stand out?

Understanding your “why” will prepare you to open your firm and establish its operations—from case and document management to checking your firm’s growth profile. Well-defined goals, plenty of preparation, and the right tools can help you get answers to your business questions and create the best business plan for your law firm.

What Is a Law Firm Business Plan?

A business plan is a roadmap that accounts for your milestones, potential setbacks, and the overall growth of your brand. You may want to include strategies for marketing, finance, sales, and partnerships.

Generally speaking, it’s a summary of what goals you want to achieve as a brand. If you’re not sure of where you’d like to start with your business plan, think about:

• The purpose of your firm and what you want to do
• How you see your firm in five, ten, or twenty years
• The type of working environment you want to provide
• Management and organization of the firm
• What do you want to see come out of your firm financially

While considering each of these factors, keep your target clientele in mind. Consider your demographic, their needs, and expectations. This way of thinking can help keep you focused on providing top-notch client care.

Why Is a Law Firm Business Plan Important?

Making a business plan is a guiding principle for your goals and success. This way, you’ll be less likely to lose sight of your goal. When managing a firm, you have to worry about yourself, your staff, the brand and business as a whole, your partners, competitors, and of course, your clients. With all this responsibility, losing track of your mission seems almost inevitable. However, it doesn’t have to be. Referring to your firm’s values, your long- and short-term objectives, and your financial projections can help prevent you from falling behind.

Your firm is a business, so you must manage it as such.

Even though you should follow your law firm’s business plan, that doesn’t mean your goals won’t or shouldn’t change. Sometimes, things don’t go as intended, and you must adapt. For example, some marketing strategies may not be as popular with your target audience as intended. In that case, it’s time to go back to the drawing board and see how you can appeal to them.

How Do I Start a Law Firm Business Plan?

Getting started is almost always the hardest part of anything. However, if you start small, it’s easy to build.

When creating your law firm business plan, follow these steps:

Define Your Goals

Having defined goals sets the tone for how you manage and market your business. It may seem obvious to you, but when prospects do a search and land on your website , that might not be the case for them. When you articulate what drives you, these potential clients may be more inclined to look into what you can offer them.

If you’re unsure how to explain your goals for the firm, maybe come back to that later. Figuring out your services, marketing strategies, financial projections, management, and operations may help you come to a more concise conclusion.

Revenue/Value Estimation

Whether you’re asking for funding or want to build the firm from the ground up, you must figure out how to keep the lights on.

You’ll want to have an answer for the following:

• What are the costs associated with starting a law firm?
• What is the number of cases you need to break even? Make a profit?
• What is your profit-loss estimation?

Be precise with these numbers. That way, you can better gauge your success or lack thereof.

Billing Structure

Creating a comprehensive legal billing policy at the beginning will save your law firm a vast amount of non-billable hours and money .

First, you’ll want to get clear on items like your fees. Some firms charge a flat fee. Others charge by the hour. The fee structure can vary depending on the area of practice . For example, if you’re working in personal injury law , especially, you may go the contingency fee route. 

Once you figure out which payment structure to use, you’ll want to create a process for how you’ll get paid. Automating your billing with legal workflows is a simple way to standardize the processes. This workflow should outline items like the invoice creation process, modes of sending the invoice, and how the client will pay. 

PracticePanther’s automated legal workflows can be customized to trigger events throughout the billing cycle so you never have to worry about missing a step. 

Identify the Risks

Just like the risk assessment you give your clients, the same should be done when starting a law firm. Identifying potentials risk during the planning process will help inform your business decision. While risks are not always avoidable, being proactive can limit the shock associated with surprise risks. 

A few potential risks for law firms: 

• Market share
• Pros and cons of your pricing structure
• Demand of services

What Is in a Law Firm Business Plan?

There’s no set formula for creating a picture-perfect business plan. However, these things may put you on the road to success:

Executive Summary

This section gives an overall view of your plan. It includes:

• Mission statement, noting your inspiration and drive for your law firm
• Core values, describing what you’ll use to serve your clients
• How you stand out, discussing what you’ll bring to the table that others may not
• A company description, articulating how you got started in law, your educational and professional background, etc.

Refrain from making general, overstated platitudes. Every other firm promises how they’ll strive to deliver the results their clients need. Be specific and tell them how you will act.

Market Analysis

Who will you represent, and how will you get paid? These questions can help you determine how you’ll carry out a market analysis:

• Target clientele: What demographic do you want to serve? Think of age, location, status, occupation, or gender.
• Financial projections: How much would this demographic reasonably spend on your services?
• Industry: What are the trends in this industry? What’s the market size? What’s its potential for growth or lack thereof?
• Competition: Who are your main competitors? What are their/your strengths and weaknesses?

Law Firm Billing and Finances

What are budgets and revenue going to look like? Think about how much money you’ll need to start up and keep the firm running every month. How many cases will allow you to break even or make a profit?

Assess how much you project to make this year and every year thereafter.

Management Structure

Now is the time to think about how you’ll operate. Yes, you want to create a healthy work environment, but how will you do that?

If you’re opening this firm, you probably have the educational background and experience to hit the ground running.

However, serving clients and running operations are two different things. Are you the right person to manage the firm as a whole? It’s okay if you’re not sure. Maybe you would benefit from hiring an office manager or other employees to keep things running.

Legal Technology

The more clients you take, the more paperwork, documents, and overall assistance you’ll need. You may not need to hire an employee to take care of such matters per se. As such, you may want to consider purchasing law practice management software to keep track of every detail of your business operations. These cloud-based solutions make it easy to work from anywhere while maintaining collaboration with staff or outsourced workers. 

Managing your law firm is made easy with an all-in-one solution . PracticePanther comes equipped with all of the resources your need to efficiently manage a profitable law firm. Native features like custom reporting to track expenses or cash flow, legal document management for accessibility and paperless filing, legal billing software to accurately manage your billing and invoicing, case management to streamline your cases, eSignature to quickly send documents for electronic signature , and online payment processing to get paid faster and enhance the client experience.

Other law practice management platforms may require costly monthly subscriptions for essential business features like online payment processing or eSignature. With PracticePanther — they’re free to activate and included with your account. 

Legal Services

Your services are the bread and butter of your firm. What problems are your potential clients experiencing, and how will you help them?

Here, you can also differentiate yourself from your competitors and discuss the advantages of hiring you.

Law Firm Marketing

When you market your firm, think about how you will present it and entice a prospect to hire you. What services will you provide, and at what cost? Show potential clients that your firm is worth every penny and that you will go above and beyond for them.

Creating a law firm marketing strategy with proven tactics and goals is key. Traditionally, firms have relied on word of mouth. However, to remain profitable — law firms should utilize modern channels such as social media, paid advertising, and search engine optimization or SEO. 

Use your executive summary and market analysis as an initial guide for your marketing strategy then continue to measure and adjust your strategy. 

Sample Law Firm Business Plan

Organizing your law firm’s business plan can seem like a big maze. However, if you have a document template that allows you to break everything down step by step, it won’t be as scary.

PracticePanther offers a white-label template for you to write out your goals for your firm. You can even customize it with your logo, ensuring your professionalism and brand recognition. This feature also stores your business plan in one place. 

What’s more, if you have several potential business plans, you can easily store them within PracticePanther as a template or file . This way, if you need to adjust your plan (which is highly recommended that you monitor your business plan) you can easily access it.

Outlook on the Business of a Law Firm

It’s great to have short-and long-term goals and objectives when you’re forming a law firm business plan. Still, these plans should be flexible and adapt to the market. 

Having an understanding of how to scale and market your law firm with modern processes will ensure the overall profitability of your business. With PracticePanther’s five-minute law firm growth quiz , you can find your growth profile along with a strategic growth roadmap for success. 

Modern legal technology makes it easier than ever to practice and manage a law firm today. Ready to get started? You can schedule a custom demo with PracticePanther to see how our features support your firm’s success.

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Home Committees, Members & Career Services Small Law Firm Center Overview Small Firm Resources Writing a Business Plan for Law Firm – Law Firm Business Plan Sample

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

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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.

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.

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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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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Law Firm Business Plan Sample

Published Jun.03, 2018

Updated Apr.23, 2024

By: Noor Muhammad

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Table of Content

Do you want to start a law firm business?

Do you plan to start a law firm business? There is no doubt this is an awesome business venture with amazing potential. In recent years, the law firm industry has been experiencing a steady growth of more than 15% per annum. The need for individuals, businesses and companies seeking for lawyer services in order not to get into legal problems has greatly increased. Today, there are many niches you can choose to start your practice on. All you need to have is the right qualification and target the right customers for your law firm business plan .

Executive Summary

2.1 the business.

The law firm will be registered under the names Raymond Associates, and will be situated in Houston, Texas. The law firm will be owned and managed by Alex Raymond who is a lawyer by profession.

2.2 Management Team

Alex Raymond is a lawyer by professional who has worked in the legal industry for more than fifteen years. Before coming up with a law firm business model, Alex worked for many to law firms across the United States and is an accomplished legal business service expert .

2.3 Customer Focus

Raymond Associates plans to offer different top notch legal services to customers in Houston, Texas. The customer focus will cater for different age groups and working class.

Once you have figured out how to start your own law firm, having an idea of the customer you intend to target is important. The customers you plan to target is essential for the growth of the business.

2.4 Business Target

Raymond Associates intends to offer services to a wide range of clientele keen on seeking legal services for their various needs. For a business to grow, it is important to carry out an in-depth research to target the right clientele.

Company Summary

3.1 company owner.

Alex Raymond is a lawyer professional who has worked with famous legal firms in the United States. In the course of his career, he ascended to the position of a seasoned attorney and took the lead role in planning the law firm operations and overseeing all management related aspects.

3.2 Aim of Starting the Business

After having been in the career long enough, Alex noticed there was a lot of potential in the legal industry in his home town Houston. That is the when he decided to move back to home and start a business plan for law firms . With a good business plan for law firms , Raymond Associates will indeed be one of the best law firms in Houston.

3.3 How the Business will be Started

As an expert in legal services, Alex understands what he needs to start the law firm. To set his idea into action, he has worked closely with businesses set-up experts to develop a financial plan for the law firm.

Legal		$7,000
Consultants		$5,000
Insurance		$20,000
Rent		$25,000
Research and Development		$12,000
Expensed Equipment		$25,000
Signs		$6,000
TOTAL START-UP EXPENSES		$100,000
Start-up Assets		$0
Cash Required		$70,000
Start-up Inventory		$30,000
Other Current Assets		$33,000
Long-term Assets		$10,000
TOTAL ASSETS		$30,000
Total Requirements		$25,000
		$0
START-UP FUNDING		$120,000
Start-up Expenses to Fund		$34,000
Start-up Assets to Fund		$30,000
TOTAL FUNDING REQUIRED		$0
Assets		$25,000
Non-cash Assets from Start-up		$20,000
Cash Requirements from Start-up		$0
Additional Cash Raised		$80,000
Cash Balance on Starting Date		$25,000
TOTAL ASSETS		$0
Liabilities and Capital		$0
Liabilities		$0
Current Borrowing		$0
Long-term Liabilities		$0
Accounts Payable (Outstanding Bills)		$0
Other Current Liabilities (interest-free)		$0
TOTAL LIABILITIES		$0
Capital		$0
Planned Investment		$0
Investor 1		$30,000
Investor 2		$25,000
Other		$0
Additional Investment Requirement		$0
TOTAL PLANNED INVESTMENT		$140,000
Loss at Start-up (Start-up Expenses)		$60,000
TOTAL CAPITAL		$70,000
TOTAL CAPITAL AND LIABILITIES		$50,000
Total Funding		$130,000

Services for Customers

Raymond Associates is focused on offering professional legal services to different type of clients. According to the starting a law firm business plan, the business is focused on offering the following services:

• Provide property law services to people facing mortgage, foreclosure and other property acquisition.
• Offer legal services to people suffering from personal injury. Employees’ injuries at work are extremely     sensitive and need a qualified lawyer to intervene.
• Provide legal services to couples going through a divorce.
• Offer legal services to people buying and selling businesses – acquisitions and mergers.

Marketing Analysis for Law Firm Business

For Raymond Associates to meet its market obligations, a detailed market analysis was done to help the business establish itself in the industry and adequately serve the needs of client. This law firm business plan explains the strategy the business will follow to attain its goals. Given the rising demand for various legal services, there is a great opportunity for Raymond Associates to meet its objectives.

5.1 Market Segmentation

Given the increasing popularity of law firms industry, Raymond Associates understands the value of coming up with sustainable marketing strategies to acquire a larger market share. Being one of the largest cities in the United States, Houston is a business hub with many individuals and companies looking for legal services. Based on the market findings and law firm business plan template, the law firm intends to target the following potential customers.

excellent work

excellent work, competent advice. Alex is very friendly, great communication. 100% I recommend CGS capital. Thank you so much for your hard work!

5.1.1 Couples

Marriage is a good thing but a time comes in life where people want to depart for various reasons. Nowadays, there is a high divorce rate in Texas, and for this reason Alex so it necessary to start a law office business plan to provide divorce legal services. When going through a divorce, you want to use a law firm that know how to handle sensitive issues. Raymond Associates highly trained attorneys and family law professionals will be dedicated to help people going through divorce to successfully navigate the family courts. If you have a family law case, it can be frustrating to sort through the maze of paperwork required to finish your case. Raymond Associates is ready to help though all the steps if filing a divorce, spousal support orders or custody issues among other services listed in the law firm business plan sample.

5.1.2 Property Owners

One of the main services offered by Raymond Associates is foreclosure and mortgage legal services. Whether it is mortgage, foreclosure or other property acquisition, Raymond Associates lawyers will help you go through that. The lawyers will offer the best advice and assist you throughout the whole process. The law firm will help file necessary documents and go through disputes that may arise between the transactions.

Business plan for investors

5.1.3 employees.

With so many companies and organization in Houston, Raymond Associates sample law firm business plan will target employees. When it comes to legal services involving employee injuries at work, these cases are usually sensitive and need a qualified lawyer to intervene. In most cases, employees feel oppressed in matters in regards to compensation and opt to use a lawyer. This is why Raymond Associates has a well inclusive personal injury law firm business plan to cater for such cases.

5.1.4 Businesses

According to the law firm marketing plan template, Raymond Associates will offer legal services to businesses to buying and selling businesses – acquisitions and mergers. With many individuals buying and selling businesses, it is important to use the services of a lawyer. A good law office will help you minimize taxes and potential liability issues for buyers and sellers figuring out how to structure a deal.

Potential Customers	Growth
Couples	25%	20,000	23,000	26,000	29,000
Property Owners	30%	18,000	21,000	24,000	27,000
Employees	25%	15,000	18,000	21,000	24,000
Businesses	20%	13,000	16,000	19,000	22,000
Total	100%	66,000	78000               90000		102,000

5.2 Business Target

Raymond Associates is getting into a highly competitive environment considering there are a high number of law firms in Houston. However, this small law firm business plan outlines the plan the business intends to use to acquire clients and propel business growth. It is costly to set up a fully functioning law firm, but adequate strategies have been put in place to help the business fully recover its initial capital. After finalizing the starting a law firm business and rolling out operations, the call centerexpects to recoup its initial investment in three years based on a projected 30-40% annual sales growth.

5.3 Product Pricing

While strategizing on how to start a law firm business plan , Alex Raymond together with the assistance of experts has come up with a competitive pricing structure tailored for different services. At the beginning, the call center intends to offer various incentives to attract clients.

When planning to start a law office, you need to come up with a great business development strategy . Alex Raymond has engaged experts to formulate a call center strategy that will be instrumental to steer business growth. He has also invested time to studying law firm proposal examples. The following is Raymond Associates law firm sales strategy.

6.1 Competitive Analysis

Raymond Associates has deployed the latest telemarketing technologies to boost efficiency and seamlessly handle multiple clients without compromising quality. After completing the procedures of how to build a law firm, the business anticipates high competition considering there are numerous similar establishments in Houston.

6.2 Sales Strategy

For Raymond Associates to achieve its intended targets and create a successful law office which is popular with clients, the following sales strategy will be implemented.

• Hire professional marketing agencies to help advertise the law firm and reach out to potential clients.
• Organize an official opening party and welcome top industry stakeholders to create awareness about the business
• Advertise on digital media platforms such as Facebook, Twitter and Instagram
• Use local media channels such as Television and newspapers to advertise the business

6.3 Sales Forecast

Raymond Associates law firm has put in place various sales strategies in order to meet its targets. According to the law firm business plan example, the sales forecast looks promising for the business.

Unit Sales			Year 3
Legal Services for Mortgage & Foreclosure	300,000	320,000	340,000
Legal Services for  Personal Injury	250,000	270,000	290,000
Legal Services for Divorce	200,000	220,000	240,000
Legal Services for Acquisitions &Mergers	150,000	170,000	190,000
TOTAL UNIT SALES
Unit Prices	Year 1	Year 2	Year 3
Legal Services for Mortgage & Foreclosure	$250.00	$200.00	$150.00
Legal Services for Personal Injury	$200.00	$150.00	$100.00
Legal Services for Divorce	$150.00	$100.00	$50.00
Legal Services for Acquisitions &Mergers	$100.00	$50.00	$30.00
Sales
Legal Services for Mortgage & Foreclosure	$240,000	$260,000	$280,000
Legal Services for Personal Injury	$200,000	$220,000	$240,000
Legal Services for Divorce	$160,000	$180,000	$200,000
Legal Services for Acquisitions &Mergers	$120,000	$140,000	$160,000
TOTAL SALES
Direct Unit Costs	Year 1	Year 2	Year 3
Legal Services for Mortgage & Foreclosure	$4.00	$3.00	$2.00
Legal Services for Personal Injury	$3.00	$2.00	$1.00
Legal Services for Divorce	$2.00	$1.00	$0.60
Legal Services for Acquisitions &Mergers	$1.00	$0.70	$0.30
Direct Cost of Sales
Legal Services for Mortgage & Foreclosure	$230,000	$250,000	$27,000
Legal Services for Personal Injury	$200,000	$220,000	$240,000
Legal Services for Divorce	$170,000	$190,000	$210,000
Legal Services for Acquisitions &Mergers	$140,000	$160,000	$180,000
Subtotal Direct Cost of Sales	$600,000	$650,000	$700,000

Personnel Plan

Raymond Associates provides diverse services in order to boost the company’s income. When coming up with a business plan for law firms , it is vital to focus on having a good personnel team to handle business operations.

7.1 Personnel Plan

The law firm is owned by Alex Raymond who will be the overall firm manager for the business. The law office intends to hire the following staff to enable the business carry out its operations.

• Administrator
• Operations Manager
• Two Marketing Executives
• Five Lawyers
• Three Advocates

Successful candidates will undergo intensive training to understand procedures and expectations.

7.2 Average Staff Salaries

Raymond Associates law office plans to pay its staff the following salaries in the first three years of operations.

Manager	$45,000	$50,000	$55,000
Secretary	$25,000	$30,000	$35,000
Administrator	$28,000	$34,000	$38,000
2 Sales and Marketing Executive	$50,000	$55,000	$60,000
5 Lawyers	$100,000	$110,000	$120,000
3 Advocates	$60,000	$65,000	$70,000
Operation Manager	$40,000	$45,000	$50,000
Total Salaries	$348,000	$389,000	$428,000

Financial Plan

Alex Raymond law firm has formulated a financial plan that will steer the path to business success. To the business, Alex will use his personal savings and funds from two investors. A loan will be sought to help raise startup capital for the business. Crucial financial information for the business has been indicated in the law firm business plan template free.

8.1 Important Assumptions

Financial forecast for Raymond Associates law firm will be based on the following assumptions.

Plan Month	1	2	3
Current Interest Rate	7.00%	9.00%	11.00%
Long-term Interest Rate	5.00%	5.00%	5.00%
Tax Rate	10.00%	13.00%	16.00%
Other	0	0	0

8.2 Brake-even Analysis

Raymond Associates Brake-even Analysis is indicated in the graph below.

Monthly Units Break-even		5000
Monthly Revenue Break-even		$350,000
Assumptions:
Average Per-Unit Revenue		$150.00
Average Per-Unit Variable Cost		$3.00
Estimated Monthly Fixed Cost		$300,000

8.3 Projected Profit and Loss

Profit and Loss information for Raymond Associates calculated on a monthly and annual basis is shown below.

Sales	$600,000	$630,000	$690,000
Direct Cost of Sales	$50,000	$60,000	$70,000
Other	$0	$0	$0
TOTAL COST OF SALES
Gross Margin	$520,000	$540,000	$580,000
Gross Margin %	85.00%	90.00%	95.00%
Expenses
Payroll	$350,000	$370,000	$390,000
Sales and Marketing and Other Expenses	$8,000	$10,000	$12,000
Depreciation	$6,000	$8,000	$10,000
Leased Equipment	$0	$0	$0
Utilities	$5,000	$7,000	$9,000
Insurance	$3,000	$5,000	$7,000
Rent	$15,000	$17,000	$19,000
Payroll Taxes	$35,000	$40,000	$45,000
Other	$0	$0	$0
Total Operating Expenses	$330,000	$360,000	$390,000
Profit Before Interest and Taxes	$60,000	$65,000	$70,000
EBITDA	$20,000	$23,000	$26,000
Interest Expense	$0	$0	$0
Taxes Incurred	$20,000	$23,000	$26,000
Net Profit	$240,000	$250,000	$260,000
Net Profit/Sales	30.00%	35.00%	40.00%

8.3.1 Monthly Profit

8.3.2 Yearly Profit

8.3.3 Monthly Gross Margin

8.3.4 Yearly Gross Margin

Below is the profit and Loss Analysis for Raymond Associates law firm.

8.4 Projected Cash Flow

The diagram below is a summary of subtotal cash spent, subtotal cash from operations, subtotal cash spent on operations, subtotal cash received and pro forma cash flow.

Cash Received
Cash from Operations
Cash Sales	$40,000	$50,000	$60,000
Cash from Receivables	$10,000	$12,000	$14,000
SUBTOTAL CASH FROM OPERATIONS
Additional Cash Received
Sales Tax, VAT, HST/GST Received	$0	$0	$0
New Current Borrowing	$0	$0	$0
New Other Liabilities (interest-free)	$0	$0	$0
New Long-term Liabilities	$0	$0	$0
Sales of Other Current Assets	$0	$0	$0
Sales of Long-term Assets	$0	$0	$0
New Investment Received	$0	$0	$0
SUBTOTAL CASH RECEIVED
Expenditures	Year 1	Year 2	Year 3
Expenditures from Operations
Cash Spending	$25,000	$29,000	$32,000
Bill Payments	$12,000	$22,000	$32,000
SUBTOTAL SPENT ON OPERATIONS
Additional Cash Spent
Sales Tax, VAT, HST/GST Paid Out	$0	$0	$0
Principal Repayment of Current Borrowing	$0	$0	$0
Other Liabilities Principal Repayment	$0	$0	$0
Long-term Liabilities Principal Repayment	$0	$0	$0
Purchase Other Current Assets	$0	$0	$0
Purchase Long-term Assets	$0	$0	$0
Dividends	$0	$0	$0
SUBTOTAL CASH SPENT
Net Cash Flow	$20,000	$24,000	$28,000
Cash Balance	$25,000	$29,000	$33,000

8.5 Projected Balance Sheet

The following is a Projected Balance Sheet for Raymond Associates law firm that shows capital, assets, long term assets, liabilities and current liabilities.

Assets
Current Assets
Cash	$300,000	$320,000	$340,000
Accounts Receivable	$25,000	$27,000	$29,000
Inventory	$7,000	$9,000	$11,000
Other Current Assets	$5,000	$7,000	$9,000
TOTAL CURRENT ASSETS
Long-term Assets
Long-term Assets	$10,000	$13,000	$16,000
Accumulated Depreciation	$14,000	$16,000	$18,000
TOTAL LONG-TERM ASSETS
TOTAL ASSETS
Liabilities and Capital	Year 1	Year 2	Year 3
Current Liabilities
Accounts Payable	$20,000	$24,000	$28,000
Current Borrowing	$0	$0	$0
Other Current Liabilities	$0	$0	$0
SUBTOTAL CURRENT LIABILITIES
Long-term Liabilities	$0	$0	$0
TOTAL LIABILITIES
Paid-in Capital	$32,000	$32,000	$32,000
Retained Earnings	$40,000	$45,000	$50,000
Earnings	$140,000	$150,000	$160,000
TOTAL CAPITAL
TOTAL LIABILITIES AND CAPITAL
Net Worth	$250,000	$300,000	$350,000

8.6 Business Ratios

Raymond Associates law firm Business Ratios, Ratio Analysis and Business Net Worth are shown below.

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Sales Growth	15.00%	25.00%	64.00%	8.00%
Percent of Total Assets
Accounts Receivable	10.00%	12.00%	5.10%	12.00%
Inventory	7.00%	5.00%	3.40%	15.00%
Other Current Assets	8.00%	3.00%	2.80%	30.00%
Total Current Assets	90.00%	100.00%	120.00%	65.00%
Long-term Assets	-7.00%	-14.00%	-21.00%	40.00%
TOTAL ASSETS
Current Liabilities	8.00%	4.00%	3.40%	35.00%
Long-term Liabilities	0.00%	0.00%	0.00%	30.00%
Total Liabilities	6.00%	4.00%	5.00%	43.00%
NET WORTH
Percent of Sales
Sales	100.00%	100.00%	100.00%	100.00%
Gross Margin	60.00%	70.00%	80.00%	3.00%
Selling, General & Administrative Expenses	55.00%	65.00%	60.00%	57.00%
Advertising Expenses	6.00%	4.00%	3.50%	7.00%
Profit Before Interest and Taxes	30.00%	35.00%	40.00%	2.00%
Main Ratios
Current	20	24	28	3.5
Quick	28	34	38	1.4
Total Debt to Total Assets	8.00%	5.00%	3.00%	45.00%
Pre-tax Return on Net Worth	80.00%	85.00%	90.00%	3.20%
Pre-tax Return on Assets	50.00%	55.00%	60.00%	13.00%
Additional Ratios	Year 1	Year 2	Year 3
Net Profit Margin	15.00%	20.00%	25.00%	N.A.
Return on Equity	55.00%	60.00%	65.00%	N.A.
Activity Ratios
Accounts Receivable Turnover	10	14	18	N.A.
Collection Days	90	100	110	N.A.
Inventory Turnover	23	29	35	N.A.
Accounts Payable Turnover	20	25	30	N.A.
Payment Days	27	27	27	N.A.
Total Asset Turnover	5.1	3.5	2.5	N.A.
Debt Ratios
Debt to Net Worth	0	-0.18	-0.26	N.A.
Current Liab. to Liab.	0	0	0	N.A.
Liquidity Ratios
Net Working Capital	$200,000	$240,000	$280,000	N.A.
Interest Coverage	0	0	0	N.A.
Additional Ratios
Assets to Sales	3.45	2.45	1.25	N.A.
Current Debt/Total Assets	10%	7%	5%	N.A.
Acid Test	35	40	45	N.A.
Sales/Net Worth	4.5	3.5	2.2	N.A.
Dividend Payout	0	0	0	N.A.

Download Law Firm Business Plan Sample in pdf

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How to Make a Successful Business Plan for Your Law Firm

If you want to start a law firm apart from being passionate about practicing law, you will also need a solid law firm business plan. Creating a law firm’s business plan is the key to success. While you may already have many plans in your head about what you want to name your firm, what your firm looks like, etc. But knowing how to make a law firm business plan is important.

You can’t just start your law firm without having a plan in your mind. It is the first step and you should do your research before you go to start your firm. In this blog we will be sharing how to create a law firm business plan and are the factors to consider and why it is important. 

What is a Law Firm Business Plan and Why is it Important?

In simple words, a law firm business plan is a document that contains all the details about the firm. From law firm branding , marketing to things your firm wants to achieve, and a plan of action for achieving your firm goals.

This plan can include information like why you want to start a firm, what are goals, and the service you want to offer your clients. Not just this, it may also include legal professionals who should be part of your firm and strategy, of how you will gain and manage new clients. A business plan serves as a roadmap for your law firm. 

Having a law office business plan is important because of various reasons, such as: 

• It helps in defining the short-term and long-term goals of the firm and makes them more achievable. 
• Having a law firm succession plan will help in attracting more investors for your law firm. It is a powerful tool for convincing investors of funds.
• A law firm business plan can also help in mitigating risk. Analyze any potential risk and create an action plan to avoid it or handle it. 
• Helps in aligning key decisions with the motto of the firm. 

What to Consider When Creating a Law Firm Business Plan?

If you are writing a law firm business plan, here are a few things that you should consider: 

Your Firm Goals

The first and most critical question that you need to ask yourself is what is the goal of your firm, why you want to start this firm, what you want to achieve, etc. Starting a firm is not just about having a job. It gives you freedom and fulfillment. But for the success of your firm, you want to establish a clear, firm goal. 

Consider asking these questions: 

• What do I want to achieve by starting my own law firm?
• What legal services do I want to offer my clients? 
• What is success for me? 
• What problems do I want to solve? 
• How I want to get clients for my firm
• What impact do I want to create on my clients? 

Asking these questions is essential, but answering these questions is more difficult than you think. But it will help in clearing your vision.

Revenue You Need For Your Firm 

Now that you know what your goals are and what success looks like to you. It is time to calculate what revenue you want to achieve. You will also need to figure out how you will be achieving your revenue goals. The average net profit margin for law firms is around 43%. Apart from salaries, law firms don’t have much expenses. This makes it easier for them to achieve revenue. 

Fee Structure of Your Firm 

After you have estimated all your goals, it’s time to define your fee structure. 

Your fee structure must include:

• What others charge on average
• What practice area you’ve chosen
• What your business expenses are 
• How you want to charge
• How you will accept payments 

You already know lawyers have different types of clients, so it’s not possible to charge everyone the same. You can charge all clients on an hourly basis, some cases might require flat fee pricing. So it will depend on case to case and client to client. You will have to be flexible with certain things. 

Step-by-Step Guide for Making a Successful Law Firm Business Plan

Here is a guide for making a successful law firm business plan that you should follow: 

• Start your journey of creating a law firm business plan by conducting strong marketing research. Analyze your competitors and look for opportunities to stand out from the crowd. 
• Establish realistic goals for your firm. Bear in mind that you are just starting and set goals accordingly.
• Develop a complete financial plan . It should be clear and detailed. It should include startup costs, operating expenses, emergency funds, and revenue projections.
• Create a comprehensive law firm marketing plan that covers both the online and offline market. List all the resources that you might need for marketing purposes.
• Assess the skills and expertise that you will require for your team. Identifying areas for professional development and requirement of new resources. 
• Regularly review and update your business plan. Keep updating your law firm business plan according to trends in your industry.  
• Identify any potential risks that your firm may face. Think about both external and internal factors and create a plan for mitigating any kind of potential risks.
• Outline the services that you will be offering to your potential clients. For instance, are you going to offer family law service, personal injury law , health law or real estate law, etc? 
• Mention all the legal tech tools that your firm will be using. From legal billing software to practice management software , mention everything.

Final Thoughts On Business Plan For a Law Firm

Having a goal to start a law firm is not enough. You will need a strong business plan to make it successful. The business plan will keep you accountable and help you analyze the performance. A law firm business plan is a comprehensive tool that your firm can use. If you consider all the above-mentioned factors and create a law firm business plan, you can generate revenue and achieve all your goals.

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In the 20-plus years I’ve been a legal marketer, one of the most common missteps I’ve seen is when law firms operating without a clear marketing strategy. This often leads to fragmented and uncoordinated efforts that fail to produce consistent results. In today’s competitive legal market, a robust marketing strategy is essential for law firms of all sizes to stand out and keep and attract clients.

Instead of engaging in random acts of marketing, a well-planned strategy enables you to target the right audience, convey a consistent message and measure your success effectively. This guide outlines the essential steps to develop an effective marketing strategy for your law firm and explains why it’s crucial for your success.

Why You Need a Marketing Strategy

A well-defined marketing strategy provides a clear roadmap for achieving your business goals. It ensures that your marketing efforts are cohesive, targeted and aligned with your firm’s objectives. Here are some reasons why a marketing strategy is essential for law firms:

• Consistency:  Helps maintain a consistent brand message across all platforms.
• Efficiency:  Ensures resources are allocated effectively to the most impactful activities.
• Measurability:  Allows you to track performance and adjust tactics based on data.
• Targeting:  Helps you reach the right audience with tailored messages.

Key Steps to Develop Your Law Firm’s Marketing Strategy

Developing a robust marketing strategy for your law firm requires careful analysis and a deep understanding of your market and clients. By following these key steps, you can create a solid foundation that will help you effectively reach and engage your target audience. Typically, this analysis should be conducted by a dedicated marketing team or consultant with expertise in the legal sector, working closely with senior partners and practice leaders to ensure alignment with the firm’s goals. To lay a foundation for an effective law firm marketing strategy, consider these five key steps.

• Understand your target audience
• Map your client’s journey
• Define your value proposition
• Differentiate your brand
• Evaluate your competition

1. Understand Your Target Audience:  Defining your firm’s target audience is critical. If you’re not reaching the right people in the right way, your efforts will almost always fall short. Understand who your clients are and their needs, and use this information to create a profile of your ideal client. Consider characteristics such as:

• Preferred communication channels

In many cases, your target audience can be divided into multiple segments. You can then prioritize the segments representing your most profitable opportunities and customize your marketing campaigns for different parts of your client base.

2. Map Your Client Journey:  A client journey consists of your clients’ steps as they progress from potential clients to paying, satisfied clients who refer others to your firm. The beginning of the legal client journey can be divided into three main stages:

• Awareness Stage:  Prospective clients become aware of your brand.
• Consideration Stage:  Prospects become interested in learning more about your firm.
• Decision Stage:  Clients evaluate and decide whether to hire your firm.

To optimize your client journey and promote the conversion of prospects into clients, create a map that identifies desired outcomes for each stage and the procedures you will follow to achieve those outcomes. This should include your client intake procedures, which are pivotal in persuading new prospects to become clients.

3. Define Your Value Proposition:  Your value proposition defines what you can offer your clients to motivate them to choose your law firm over another firm. It forms the heart of the marketing message you seek to communicate to prospects and clients over their client journey. A strong value proposition should include:

• What you offer clients
• Why they should want what you offer
• Why they should want it from you instead of another law firm

4. Differentiate Your Brand:  One purpose of your value proposition is to differentiate your brand from competitors, which is essential for effective marketing. Good branding starts with differentiating yourself from your competitors. Focus on what services or personal styles are unique to you and your firm.

Your brand identity should resonate consistently throughout your marketing materials, including your law firm’s website, logo, letterhead, business card, social media profile and anywhere else you interact with prospects and clients. Creating and documenting formal brand guideline policies and procedures for your marketing team to follow will help you present a consistent image to your target audience.

5. Evaluate Your Competition:  Understanding your competitors and their marketing strategies is crucial for differentiating your brand in a crowded market. A thorough competitive analysis will help you identify opportunities to stand out and highlight your unique strengths. Here are detailed steps to enhance this process:

• Direct Competitors:  Identify firms that offer similar services and target the same audience.
• Indirect Competitors:  Consider firms that may not offer the exact same services but still compete for your clients’ attention and business.
• Strengths:  Identify what your competitors do well. This could be strong brand recognition, a robust online presence or superior client service.
• Weaknesses:  Look for areas where your competitors fall short. This might include poor client reviews, limited service offerings or weak online engagement.
• Opportunities:  Determine external factors that could benefit your firm, such as emerging legal trends, changes in regulations or gaps in the market that your competitors are not addressing.
• Threats:  Be aware of external challenges that could impact your firm, like new entrants in the market, economic downturns or technological advancements that your competitors are leveraging.
• Digital Presence:  Evaluate their website quality, user experience, and SEO practices. Examine their content marketing efforts, such as blogs, whitepapers and videos.
• Social Media:  Monitor their social media activity to see which platforms they use, the frequency of their posts, the type of content they share and the level of engagement they receive.
• Advertising:  Assess their online and offline advertising efforts. Look at the channels they use, the messaging in their ad, and the promotions or calls to action they feature.
• Client Reviews and Testimonials:  Read client reviews on platforms like Chambers, Best Lawyers, Vault, Glassdoor, Google, Yelp and Avvo to understand what clients appreciate about their services and where there are opportunities.
• Client Demographics:  Identify the types of clients your competitors attract. Look at factors such as industry, company size and geographic location.
• Client Needs and Pain Points:  Understand the common needs and challenges faced by their clients, and how your competitors address these issues.
• Performance Metrics:  Compare key performance indicators (KPIs) such as website traffic, social media engagement and client acquisition rates. Use tools like Google Analytics, SEMrush and social media analytics to gather data.
• Service Offerings:  Compare the range and quality of services offered by your competitors. Identify areas where you can enhance your service offerings to provide more value to clients.
• Unique Selling Proposition (USP):  Determine what sets your firm apart from competitors. This could be specialized expertise, exceptional client service, innovative technology use or unique pricing models.
• Value Proposition:  Emphasize your unique strengths in your value proposition and marketing campaigns. Clearly communicate why clients should choose your firm over others.
• Stay Updated:  Regularly monitor your competitors’ activities to stay informed about their strategies and market movements. Set up Google Alerts for competitor names and relevant keywords.
• Adapt and Innovate:  Use insights from your competitive analysis to adapt your strategies and innovate. Be proactive in addressing market changes and client expectations.

By conducting a thorough competitive analysis and leveraging this information, you can develop a marketing strategy that highlights your firm’s unique strengths, addresses client needs more effectively and positions your brand as a leader in the legal market.

Building Your Law Firm Marketing Plan

Once you’ve performed the preliminary steps to develop your marketing strategy, you can begin building your law firm marketing plan using these five steps:

• Define the goals of your marketing campaigns
• Craft your marketing message
• Establish your marketing budget
• Determine which marketing channels you will use
• Measure your performance

1.  Define the Goals of Your Marketing Campaigns

Clear goals should guide a successful marketing campaign. Common objectives include:

• Building brand awareness among your target market
• Generating leads through engagement with prospects
• Client acquisition which converts prospects into clients
• Increasing customer lifetime value by promoting higher-value services, repeat business, and referrals

Use Key Performance Indicators (KPIs) to make your goals measurable for the best results.

2. Craft Your Marketing Message

To achieve your marketing goals, you’ll need an effective marketing message that resonates with your audience and clearly communicates the unique value your firm offers. Crafting a compelling message requires a deep understanding of your audience’s needs and a strategic approach to differentiating your firm from competitors. By following these steps, you can develop a message that not only captures attention but also builds trust and drives engagement. To develop a compelling marketing message for your law firm:

• Identify your audience’s needs
• Present a solution to their needs
• Present results your solution has produced for other clients
• Explain what separates you from your competitors

3. Establish Your Marketing Budget

Distributing your marketing message through channels that reach your target audience will require a budget. Establishing your budget will help you determine what you can afford to spend on your campaigns and where you should allocate your priorities. Legal practice management consultants typically recommend spending 2% to 5% of gross revenue on marketing. Here are some steps to help you create an effective marketing budget:

• Analyze Past Expenditures:  Look at your previous marketing spend to understand where your money has been going and which efforts have yielded the best results.
• Assess Return on Investment (ROI):  Evaluate the ROI of past marketing activities to identify which strategies were most effective and where adjustments might be needed.
• Set Clear Marketing Goals and Objectives:  Establish specific, measurable goals for your marketing efforts, such as increasing brand awareness, generating leads or driving website traffic.
• Legal Industry Standards:  Legal practice management consultants typically recommend spending 2% to 5% of gross revenue on marketing, but this can vary based on your firm’s size, geographic location and practice area.
• Competitive Analysis:  Research your competitors’ marketing spend to ensure your budget is competitive and allows you to stand out in the market.
• Channel Selection:  Determine which marketing channels are most effective for reaching your target audience. This might include digital advertising, content marketing, email campaigns, social media and events.
• Prioritize High-Impact Activities:  Focus your budget on activities that have the highest potential impact. For example, if your audience is highly active on LinkedIn, allocate more funds to LinkedIn ads and content creation.
• Flexibility:  Allow for some flexibility in your budget to test new strategies and respond to unexpected opportunities or challenges.
• Track Spending:  Keep a close eye on your marketing expenditures to ensure you stay within budget.
• Measure Effectiveness:  Continuously monitor the performance of your marketing activities. Use analytics tools to track key metrics and determine the success of your campaigns.
• Adjust as Needed:  Be prepared to reallocate funds based on what’s working and what’s not. Regularly review your budget and make adjustments to optimize your marketing efforts.
• Investment in Brand Building:  Allocate a portion of your budget to long-term brand-building activities, even if they don’t provide immediate returns.
• Technology and Tools:  Invest in marketing technology and tools that can improve efficiency and effectiveness, such as CRM systems, analytics software and automation tools.
• Align Your Budget with Goals:  Ensure your budget allocation aligns with your objectives. For instance, if your goal is to increase brand awareness, allocate more funds to brand-building activities like social media advertising and public relations.

4. Determine What Marketing Channels You Will Use

Determine which marketing channels to conduct your campaigns. Your appropriate mix of channels depends on various factors, including:

• Your law firm’s specialties
• The services you’re promoting
• Your target audience’s demographics
• The geographic area you serve
• Your marketing goals
• Your budget

5. Measure Your Performance : 

Performance measurement is a final critical ingredient of an effective marketing plan. Having clear goals tied to data and a time frame is crucial. Identify KPIs which correspond to your goal to establish how you will measure the success of your marketing efforts.

Key Takeaways to Creating an Effective Law Firm Marketing Strategy

• Define Your Audience:  Understand who your clients are and their needs to create targeted marketing campaigns.
• Map the Client Journey:  Create a client journey map to guide prospects from awareness to decision.
• Craft a Strong Value Proposition:  Clearly articulate what sets your firm apart.
• Differentiate Your Brand:  Ensure your brand identity is consistent and distinct from competitors.
• Evaluate Your Competition:  Understand your competitors to gain a competitive edge.
• Set Clear Goals:  Use KPIs to measure and guide your marketing efforts.
• Establish a Budget:  Allocate your marketing spend effectively.
• Choose the Right Channels:  Select marketing channels that best reach your target audience.
• Measure Performance:  Continuously track and adjust your strategies based on performance data.

By following these steps, your law firm can build a solid marketing strategy that drives growth, attracts more clients, and strengthens your brand in the competitive legal market. With a clear plan in place, you’ll be positioned to achieve lasting success and distinguish yourself as a leader in the industry.

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5 Cost Control Strategies to Manage Law Firm Spend

By Chris Krubeck

Jun 27, 2024

Reducing your law firm overhead goes hand in hand with better serving your clients. After all, with more consistent cash flow, you can spend more on the critical resources, tools, and staff that make or break your reputation.

Even with a steady influx of clients and cases, many law firms struggle to maintain steady revenue. Over time, even small leaks can lead to missed opportunities and unsatisfied clients.

Effective law firm cost control management is crucial for improving your firm’s cash flow and client experiences — it also sets your firm up to scale growth.

You may be wondering: How can law firms save money? Where’s the best place to start with reducing your expenses ? 

In this article, we’ll give an overview of the unique challenges of managing law firm cash flow, why cost control strategies are important for growth, and five cost control strategies and best practices that can help your law firm achieve greatness.

What is Cost Control for Law Firms? 

Cost control refers to the various ways that law firms try to optimize their processes and reduce expenses in order to increase profitability. 

This is done by tracking billable and non-billable hours, law firm expenses, cash flow, and other metrics, then implementing improvements based on your findings.

Unique Challenges for Law Firm Cost Control 

Finding ways to control costs is a pillar of any business. However, unlike a retail business, the ethical and financial limitations of legal finance management create some unique cost control challenges.

1. Lack of Control on Profit Leakage

“Profit leakage” refers to the various ways that businesses lose expected income. Just like a leaking pipe, a few small (but consistent) drips may add up to a much bigger problem over time. 

Here are the top sources of law firm profit leakage:

• Inconsistent or inefficient billing practices
• Manual receipt tracking and data entry
• No time or expense tracking tools
• Not scoping work correctly

Without quantifiable and accurate methods to track and bill for your time and scope work, you may be undervaluing your services—that adds up in the long term.

2. Lack of Insight Into Spending

Without a clear view of your monthly spending, you may be surprised by unexpected end-of-the-month expenses. This can be devastating for a growing law firm and may force attorneys to shift attention away from their clients.

3. Uncaptured Law Firm Expenses

To effectively serve clients, law firms employ many tools and outside help. With so much on their plate, oftentimes lawyers inadvertently take a set-it-and-forget-it approach for things like subscriptions and recurring services. 

Or, they forget to account for some expenses altogether, such as not tracking mileage and parking fees when driving to court.

These uncaptured and untracked law firm operating expenses can lead to significant overhead costs that are hard to diagnose and fix. Capturing and categorizing your firm’s expenses is the first step to improving your firm’s financial health.

4. Reimbursable Case Expenses Missed

Many lawyers live in fear of losing track of an invoice or forgetting to enter billable work into their case management system. After all, why do all that hard work if you aren’t getting paid for it? 

When your accounting, time tracking, and billing are spread across disjointed systems, it becomes a lot easier for billable work to fall through the cracks. Add to that the time wasted on manual data entry, invoice follow-ups, and other accounts receivable (A/R) processes, and you may find you’re consistently losing track of hard-earned income.

5. Inability to Enforce Budgets

Setting a budget is a great way to set quantifiable revenue goals, increase law firm cash flow, and grow your business over time. However, you may find yourself constantly playing catch up as you try to bill clients, track law firm operating expenses, deal with unexpected bills, and more. 

In other words, in the absence of historical financial data and key law firm performance indicators , which serve as a fiscal north star, sticking to a budget is nearly impossible.

6. Manual Receipt Tracking

Some firms have been slow to adopt digital financial tools —and it shows. Manual data entry and receipt tracking are error-prone and time-consuming. Lawyers who still rely on old-school spreadsheets or antiquated software spend significantly more time on non-billable administrative work.

Why Is It Important to Have a Law Firm Cost Control Strategy?

Why are you not as profitable as expected? It might be because you don’t have an effective law firm cost control strategy in place. In truth, understanding how law firms can save money is one of the areas where many lawyers struggle. After all, you went to school to practice law, not manage finances. 

Here are the top reasons your law firm should implement a cost control strategy:

• Peace of mind: Gain confidence that nothing has slipped through the cracks by ensuring your expense management, time tracking, and billing data are centralized in one place. 
• Increased profits: Accurately tracking your case-related expenses can help you identify areas for growth and improve your cash flow.
• Reduced financial risk: Even unintentional misuse of funds can land law firms in hot water leading to  IOLTA compliance violations and lost reputation. Protect your firm by taking control of your finances.  

4 Strategies for Law Firm Cost Control

Exceptional work and happy clients are the cornerstones of a successful law firm. Implementing effective cost control strategies isn’t there to limit what you can do, but enhance everything that already makes you great.

Below are our top four strategies to take control of your finances.

1. Evaluate Law Firm Costs, Profitability, and Revenue Leakage

To establish a law firm budget, you first need a comprehensive view of all of your invoices, expenses, and billable hours. Integrating case management software into your daily processes is a good way to start. This will streamline things like expense and hour tracking (for both billable and non-billable tasks). 

Most importantly, it will give you quantifiable data to work with. Once you categorize your various expenses and revenue sources, you can hone in on the areas where you’re underperforming. Focus on setting financial goals that are trackable and achievable within a set period.

For instance, if you find a major area of revenue leakage is inefficient accounts receivable (A/R) management and billing, you can set a goal of reducing the hours spent on billing by 20% in the next quarter. To accomplish that, you may consider investing in automated billing or digital payment tools.

2. Implement Law Firm Cost-Saving Measures

Unnecessary expenses and services will slowly but surely eat away at your profits. With a centralized view of your expenses, receipts, billable hours, and other financial data, you can determine the cost-saving steps your firm needs to take—and those it doesn’t. 

Instead of arbitrarily cutting costs, leverage technology to make data-driven decisions. Common areas of focus when reducing law firm overhead include:

• Manual tasks: Are there tasks like billing and scheduling that could be automated? Could legal software help you save time in areas like these?
• Unused service subscriptions: Many of us regularly pay for various software subscriptions, answering services, and more. Are you using all of them? Are there duplicate services that could be cut?
• Office space: An increasing number of firms are going remote because it reduces real estate costs, and clients often prefer online interaction. 
• Ineffective marketing: Lead-tracking will help you determine which of your advertising methods were effective and which were duds. This helps you spend more strategically on marketing moving forward.

3. Optimize Law Firm Cash Flow

Law firms have unique cash flow challenges because, in many cases, any profit from your hard work is unrealized until it’s actually billed and paid. It’s easy to get caught up working with current clients and bringing new ones in, as unpaid client bills can start to add up.

An inefficient or outdated accounts receivable process is one of the biggest culprits. Strict payment terms, unresponsive clients, and/or manual processes can all account for a consistently high A/R. 

Implementing a legal payment solution can significantly improve your cash flow by automating many billing tasks and making payment more convenient. This removes the burden of following up with clients and provides the tools necessary to set up client-friendly alternative payment structures .

Having a simplified and modern billing process can increase your available funds and provide more stability.

4. Monitor Law Firm Financial Performance

Do you know how healthy your firm’s financial outlook is? A lot of law firms measure their success by caseload and number of clients—but the truth is, that doesn’t necessarily indicate a healthy cash flow. 

Regular financial reports are incredibly important to get an honest, bird’s-eye view of your law firm’s performance. With custom reports, you can both determine the financial health of your business and narrow down specific areas for improvement.

Leveraging Technology for Cost Control 

You can’t execute an effective cost control strategy on instinct or hunches alone. That’s why leading law firms leverage technology to track KPIs and optimize their daily processes. Legal billing and case management software is helping law firms of all sizes stay competitive and increase profits.

Here are a few of the ways technology can help save money at your law firm:

Monitor Firm Spending With Dashboards

Dashboards are visualizations of various types of data in the form of graphs and statistics. Reports on modern legal spend management softwar e can give you real-time insights into all of your expenses.

Combining spend and case management solutions allows you to spot trends and find actionable areas for improvement. Many software solutions will also let you integrate your existing accounting and case management solutions so you can have a centralized view of all of your data.

Dashboards are also a great way to monitor your firm’s performance at a glance without having to spend hours manually inputting data and running equations on spreadsheets.

Digital and Paper Receipt Tracking

Manual receipt tracking is one of the primary forms of profit leakage in law firms. Receipts are often lost, which means you can’t get reimbursed for common expenses.

Legal spend management software can help you simplify your expense tracking and facilitate reimbursement. In MyCase Smart Spend, any purchase will send out a text message that prompts firm employees to categorize the expense and take a picture of the receipt so that it’s tracked ASAP.

Automatically Limit Spending in Some Categories

Every day, you have you pay for various expenses, from postage and court filing fees to office supplies and various other costs. Over time,  you may be surprised how this can add up. 

Credit cards are useful for handling business expenses but can become a source of profit leakage when spending isn’t carefully tracked. Modern legal spend management tools can help cut down on careless spending by setting spending limits. Spending limits can be set per purchase category, employee or based on the time of day, reducing your financial risk.

Track Case-Related Expenses

It’s impossible to understand your law firm’s overhead when your expense tracking consists of a jumbled stack of receipts, a spreadsheet, and maybe an old filing cabinet. Expense tracking software centralizes all of your expenses and categorizes them.

A centralized view lets you see what is contributing the most to your overhead and opens up areas to strategically cut costs. 

Law Firm Cost Control With MyCase Smart Spend

When costs get out of control or slip through the cracks, law firms are limited in their ability to effectively serve their clients. In other words, implementing smart cost control measures is about more than profits—it’s about achieving better client outcomes.

The first step of effective law firm cost control is visibility. Modern technology like MyCase Smart Spend gives law firms of all sizes a comprehensive view of their finances, along with actionable insights on how to improve profitability.

MyCase Smart Spend is the first spend management tool built specifically for law firms, with features that help law firms simplify the way they track expenses and bill clients. 

Ready to see how it works firsthand? Schedule a free 10-day trial of MyCase today.

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Five billing and invoicing tips to improve your law firm’s payment process, bruce policky.

Jun 18, 2024

• Clear Payment Policies: Setting guidelines prevents conflicts, fosters trust, and is vital for long-term client relationships and smoother billing processes.
• Transparent Invoicing: Detailed time tracking assures accuracy, minimizes errors and compliance risks, and makes client feel confident with your legal billing practices.
• Consistent Billing: Scheduling invoices encourages prompt payments. Adding automated processes and legal-specific payment methods will optimize your firm’s revenue and help growth.

Billing and invoicing are typically not tasks that firms think of as getting easier over time. The more a firm grows, the wider its service offerings, and the more complex your accounting becomes.

Taking the time to set a strategy and standard operating procedures doesn’t have to be complicated or tedious. In fact, it can help streamline your billing process.

There are a number of strategies to optimize your firm’s billing and invoicing, from how you communicate with clients to the systems you use to process payments.

Set clear payment policies and communicate them with clients from the start

No one likes a surprise, especially when it comes to billing.

Communicating payment policies with your clients before signing them on or completing any billable hours can prevent conflict or disputes down the road. Establishing clear payment terms and conditions also establishes expectations for how the  payment process  should unfold and define obligations for you and your client.

Your payment terms and conditions should include:

When payments are due

What types of payment are accepted

How late or missed payments are handled

These expectations are vital for building long-term trust between you and your client. When clients understand their obligations, they can:

• Clear up questions before they become an issue
• Understand their payment options    
• Budget for legal expenses
• Inquire about alternate arrangements for fees 
• Avoid late fees

All of these steps will prevent drawn-out disputes and negative client experiences. Your team should also be looped into payment terms and conditions so they can answer questions confidently. In addition to training staff, it can also be helpful to add this information to any internal knowledge base you may have.

Track time in detail to provide transparent and complete invoicing

Tracking time is imperative for billing your legal services, but not all time-tracking methods are created equal. With manual time tracking, data entry can be time consuming and lead to serious errors. In turn, this can create tension with clients who need to trust that their bills are accurate. If you don’t get it right, you may risk compliance violations.

On the other hand,  time-tracking software  can save attorneys a great deal of time and stress, allowing them to easily capture billable time in full detail so there are no questions about what goes into each invoice. Some software solutions can also connect to your phone or tablet, so you can  track time on the go  without missing a beat.

Send invoices on a consistent schedule

Consistency is the key to building habits, and this goes for your firm and your clients alike. Internally, if your team establishes a  consistent schedule  for invoicing, it can quickly become a standardized and, with the right tools, automated workflow for your billing staff.

At the same time, clients are more likely to pay their bills when they know what to expect. Receiving bills at the same time each month creates an established pattern: receive invoice, submit payment, repeat. Consider scheduling your invoices to go out following common paydays so clients are more likely to receive your invoice when they have sufficient funds to pay your bill without a second thought.

Look for accounting systems that allow you to create batch invoices with easy editing capabilities. Automating batch invoicing can make staying consistent much easier for your firm.

Use legal-specific payment processors for easy online payments

The more convenient it is for clients to pay your invoices upon receipt, the faster you will get paid. Make the payment process as simple as possible for clients to pay to speed up payment receipt and reduce the overhead required to follow up with delinquent payments and collections.

Convenient online payment options help clients pay the way they prefer, by credit card or ACH. One survey of legal professionals found that firms that accept digital payments get paid 39% faster on average. That’s a significant improvement for legal professionals looking to collect payments.

Quicker payment turnarounds also make it easier for your firm to budget by taking the guesswork out of your forecasted monthly revenue. These insights allow for more accurate financial planning and allow you to invest in the growth of your practice.

It’s key, though, for law firms to work with  legal-specific payment processors . While there are many payment processors on the market, generic options don’t provide the compliance safeguards like ones built for legal professionals, such as compliance with ABA and IOLTA guidelines.

Be proactive about reporting to spot problems in advance

Proactive strategies work best when they are paired with data, especially when you’re evaluating your accounting processes.

To optimize your accounting system, look at reports that help you:

Identify your most valuable clients and practice areas

Spot unbilled transactions and hours

Review clients that may be causing repeat issues

Identify any discrepancies or pain points in the system

Stay on top of compliance

Assess processes and look for opportunities to improve

By staying proactive, automating where it makes sense, and creating consistency for all parties, your billing and invoicing can become a well-oiled machine.

Improve your billing and invoicing with Tabs3 Cloud

Tabs3 Cloud offers a fully integrated suite of flexible billing and accounting tools designed to help law firms run more efficiently and profitably.

Tabs3 Cloud delivers:

Compliant online credit card payment processing with Tabs3Pay

Easy-to-use time-tracking 

Advanced reporting

To see how Tabs3 Cloud can help your law firm implement better billing and accounting practices,  schedule a demo today.

Bruce Policky is the Director of Enterprise Sales and Success at Software Technology LLC, the maker of Tabs3 Software. He is responsible for managing all marketing, sales, and training activities. Over his 30+ years with the...

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7 reasons Nvidia is poised to soar 67% as its rally continues for the next 2 years, according to a Wall Street research firm

• Constellation Research said Nvidia stock will soar 65% to $200 per share over the next year.
• The research firm said it expects Nvidia stock to continue soaring for the next 18 to 24 months as it benefits from its AI dominance.
• There are seven moats around Nvidia's business that will enable continued growth. 

Nvidia stock will surge to $200 per share over the next 12 months, and its ongoing rally is set to last up to another two years, according to Constellation Research.

Constellation founder R "Ray" Wang told CNBC on Monday that he believes Nvidia has seven moats that will help it maintain its dominant position in the market for GPUs that are fueling the AI boom.

"Nvidia is the foundational stock in the Age of AI. CEO Jensen Huang intends to achieve vertically integrated domination from silicon to software through partnerships and direct routes to market. Unlike the PC age where Microsoft, Intel, and Cisco served as a triumvirate foundational players, this new era will have new players all tied back to Nvidia," Wang told Business Insider in an e-mail on Monday.

These are the seven reasons Wang expects Nvidia stock to soar 65% from current levels.

1. Visionary founder-led CEO

"It's a visionary-led CEO, and that's very very important as you've seen in the valley. Those are the ones that have led, like the Larry Ellisons of the world, the scott Mcnealys, the Mark Zuckerbergs," Wang said.

2. High barrier to entry

"There's few competitors that can come into this chip market, and it takes a long time to get a chip to market, and if you can do that and if you succeed and then if you can actually get the right chip, that's a very hard thing to do."

3. High switching costs

"Once you're in, you're locked in because of the CUDA software and all the access to the chips, the software, and the entire stack. You're going to be locked in for quite some time and they've got quite a lead in terms of doing that."

4. Dominant market share

"Nvidia has had dominant market share, and I think that makes a big difference because they've been in this market for quite some time and the competitors are behind by 24 months."

5. Strong product roadmap

"We're only seeing one-tenth, maybe one-one hundredth of the product roadmap that Nvidia has out there, and that's really exciting for those who actually have some insight into what they have next, because it's more than just chips, and it's more than just what's happening in software. That ability to go from silicon all the way to the end side, that's where we're going to see a lot of the innovation."

6. GPU is the default standard in AI

"The ecosystem has made the GPU a default standard. It's the standard everyone's looking to for AI from inference and testing."

7. The numbers don't lie

"We're seeing some amazing growth here that actually matches the P/E ratio, and that's what everyone is looking at, they're trying to figure out how this is going to continue, but gross margins are 78%, 262% growth compared to a year ago, this is going to continue for at least the next 18 to 24 months."

Wang said the current 14% decline in the stock since it peaked at about $140 per share last week represents yet another buying opportunity for investors.

"The pullback is coming at a macro level. People are worried about the consumer side, people worried about where the economy is going to head, and they're doing some profit-taking before the summer, so I think it's a good time to buy the dip," Wang said.

Wang isn't the only analyst on Wall Street with a $200 price target for Nvidia stock.

Last week, Rosenblatt raised its Nvidia price target to $200 per share on the prospect of the company better monetizing its CUDA software platform.

• Main content

BAE Worker Seeks to Disqualify Groom Law in 401(k) Fee Challenge

By Jacklyn Wille

Workers suing BAE Systems Inc. over its retirement plan fees want Groom Law Group disqualified from representing the company, saying the firm is conflicted because it currently serves as counsel for the plan itself.

Groom receives about $700,000 each year from BAE’s retirement plan and therefore can’t represent the company in a lawsuit brought by a plan participant on behalf of the plan as a whole, plaintiff Erin Naylor said in a motion filed Thursday.

She asked Judge Anthony J. Trenga of the US District Court for the Eastern District of Virginia to disqualify the firm under a Virginia rule ...

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The Biden admin has no firm plan to call out domestic disinformation in the 2024 election

The Biden administration has no firm   plans to alert the public about deepfakes or other false information during the 2024 election unless it is clearly coming from a foreign actor and poses a sufficiently grave threat , according to current and former officials.

Although cyber experts in and outside of government expect an onslaught of disinformation and deepfakes during this year’s election campaign, officials in the FBI and the Department of Homeland Security remain worried that if they weigh in, they will face accusations that they are attempting to tilt the election in favor of President Joe Biden’s re-election.

Lawmakers from both parties have urged the Biden administration to take a more assertive stance .

“I’m worried that you may be overly concerned with appearing partisan and that that will freeze you in terms of taking the actions that are necessary,” Sen. Angus King, a Maine independent who caucuses with the Democrats, told cybersecurity and intelligence officials at a hearing last month.

Sen. Marco Rubio, R-Fla., asked how the government would react to a deepfake video. “If this happens, who’s in charge of responding to it? Have we thought through the process of what do we do when one of these scenarios occurs?” he asked. “‘We just want you to know that video is not real.’ Who would be in charge of that?”

A senior U.S. official familiar with government deliberations said federal law enforcement agencies, particularly the FBI, are reluctant to call out disinformation with a domestic origin.

The FBI will investigate possible election law violations, the official said, but does not feel equipped to make public statements about disinformation or deepfakes generated by Americans.

“The FBI is not in the truth detection business,” the official said.

In interagency meetings about the issue, the official said, it’s clear that the Biden administration does not have a specific plan for how to deal with domestic election disinformation, whether it’s a deepfake impersonating a candidate or a false report about violence or voting locations being closed that could dissuade people from going to the polls.

In a statement to NBC News, the FBI acknowledged that even when it investigates possible criminal violations involving false information, the bureau is unlikely to immediately flag what’s false.

“The FBI can and does investigate allegations of Americans spreading disinformation that are intended to deny or undermine someone’s ability to vote,” the statement said. “The FBI takes these allegations seriously, and that requires that we follow logical investigative steps to determine if there is a violation of federal law. Those investigative steps cannot be completed ‘in the moment.’”

The bureau added that it will “work closely with state and local election officials to share information in real time. But since elections are administered at the state level, the FBI would defer to state-level election officials about their respective plans to address disinformation in the moment.” 

A senior official at the Cybersecurity and Infrastructure Security Agency (CISA), the federal entity charged with protecting election infrastructure, said state and local election agencies were best placed to inform the public about false information spread by other Americans but would not rule out the possibility that the agency might issue a public warning if necessary.

“I won’t say that we wouldn’t speak publicly about something. I would not say that categorically. No, I think it just depends,” the official said.

“Is this something that’s specific to one state or jurisdiction? Is this something that’s happening in multiple states? Is this something that’s actually impacting election infrastructure?” the official said.

CISA has focused on helping educate the public and train state and local election officials about the tactics employed in disinformation campaigns, the official said.

“At CISA, we certainly have not stopped prioritizing this as a threat vector that we take very seriously for this election cycle,” the official said.

The late-breaking deepfake

Robert Weissman, president of Public Citizen, a pro-democracy group that has been urging states to criminalize political deepfakes, said that the current federal approach is a recipe for chaos.

The biggest fear, he said, is a late-breaking deepfake that reflects poorly on a candidate and could influence the outcome of an election. Right now, government bodies — from county election boards to federal authorities — have no plans to respond to such a development, he said.

“If political operatives have a tool they can use and it’s legal, even if it’s unethical, they are pretty likely to use it,” Weissman said. “We are foolish if we expect anything other than a tsunami of deepfakes.”

Disinformation designed to keep people from voting is illegal, but deepfakes mischaracterizing the actions of candidates are not prohibited under federal law and by the laws of 30 states.

The Department of Homeland Security has  warned election officials across the country that generative artificial intelligence could allow bad actors — either foreign or domestic — to impersonate election officials and spread false information, something that has happened in other countries around the world in recent months.

At a recent meeting with tech executives and nonpartisan watchdog groups, a senior federal official in cybersecurity acknowledged that fake videos or audio clips generated by AI posed a potential risk in an election year. But they said that CISA would not try to intervene to warn the public because of the polarized political climate.

Intelligence agencies say they are closely tracking false information spread by foreign adversaries, and officials  said  recently they are prepared if necessary to issue a public statement about certain disinformation if the author of the false information is clearly a foreign actor and if the threat is sufficiently “severe” that it could jeopardize the outcome of the election. But they have not clearly defined what “severe” means.

At a Senate Intelligence Committee hearing last month on the disinformation threat, senators said the government needed to come up with a more coherent plan as to how it would handle a potentially damaging “deepfake” during the election campaign.

Sen. Mark Warner, D-Va., the committee’s chair, told NBC News that the threat posed by generative AI is “serious and rampant” and that the federal government needed to be ready to respond.

“While I continue to push tech companies to do more to curb nefarious AI content of all varieties, I think it’s appropriate for the federal government to have a plan in place to alert the public when a serious threat comes from a foreign adversary,” he said. “In domestic contexts, state and federal law enforcement may be positioned to determine if election-related disinformation constitutes criminal activity, such as voter suppression.”

How other countries respond

Unlike the U.S. government, Canada has published an  explanation  of its decision-making protocol for how Ottawa will respond to an incident that could put an election at risk. The government website promises to “communicate clearly, transparently and impartially with Canadians during an election in the event of an incident or a series of incidents that threatened the election’s integrity.”

Some other democracies, including Taiwan, France and Sweden, have adopted a more proactive approach to disinformation, flagging false reports or collaborating closely with nonpartisan groups that fact-check and try to educate the public, experts said.

Sweden, for example, set up a special government agency in 2022 to combat disinformation — prompted by Russia’s information warfare — and has tried to educate the public about what to look out for and how to recognize attempts to spread falsehoods.

France has set up a similar agency, the Vigilance and Protection Service against Foreign Digital Interference, known as Viginum, which regularly issues detailed public reports about Russian-backed propaganda and false reports, describing fake government websites, news sites and social media accounts.

The European Union, following the lead of France and other member states, has set up a center for sharing information and research between government agencies and nonprofit civil society groups that track the issue.

But those countries are not plagued by the same degree of political division as in the United States, according to David Salvo, a former U.S. diplomat and now managing director of the Alliance for Securing Democracy at the German Marshall Fund think tank. 

“It’s tough, because the best practices tend to be in places where either trust in government is a hell of a lot higher than it is here,” he said. 

Discord derailed U.S. effort

After the 2016 election in which Russia spread disinformation through social media, U.S. government agencies began working with social media companies and researchers to help identify potentially violent or volatile content. But a federal court ruling in 2023 discouraged federal agencies from even communicating with social media platforms about content.

The Supreme Court is due to take up the case as soon as this week, and if the lower court ruling is rejected, more regular communication between federal agencies and the tech firms could resume.

Early in President Joe Biden’s term, the administration sought to tackle the danger presented by false information circulating on social media, with DHS setting up a disinformation working group led by an expert from a nonpartisan Washington think tank. But Republican lawmakers denounced the Disinformation Governance Board as a threat to free speech with an overly vague role and threatened to cut off funding for it. 

Under political pressure, DHS  shut it down  in August 2022 and the expert who ran the board, Nina Jankowicz, said she and her family received numerous death threats during her brief tenure. 

Even informal cooperation between the federal government and private nonprofit groups is more politically fraught in the U.S. due to the polarized landscape, experts say. 

Nonpartisan organizations potentially face accusations of partisan bias if they collaborate or share information with a federal or state government agency, and many have faced allegations that they are stifling freedom of speech by merely tracking online disinformation.

The threat of lawsuits and intense political attacks from pro-Trump Republicans have led many organizations and universities to pull back from research on disinformation in recent years. Stanford University’s Internet Observatory, which had produced influential research on how false information moved through social media platforms during elections, recently laid off most of its staff after a spate of legal challenges and political criticism.

The university on Monday  denied  it was shutting down the center because of outside political pressure. It does, however, “face funding challenges as its founding grants will soon be exhausted,” the center said in a statement.

Given the federal government’s reluctance to speak publicly about disinformation, state and local election officials likely will be in   the spotlight during the election, having to make decisions quickly about whether to issue a public warning. Some already have turned to a coalition of nonprofit organizations that have hired technical experts to help detect AI-generated deepfakes and provide accurate information about voting.

Two days before New Hampshire’s presidential primary in January, the state attorney general’s office put out a  statement  warning the public about AI-produced robocalls using fake audio clips that sounded like Biden telling voters not to go to the polls. New Hampshire’s secretary of state then spoke to news outlets to provide accurate information about voting.

Dan De Luce is a reporter for the NBC News Investigative Unit. 

Ken Dilanian is the justice and intelligence correspondent for NBC News, based in Washington.