- How to Start a Law Firm
How to Create a Law Firm Business Plan
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Contents: Guide To How to Start a Law Firm
1. How to Create a Law Firm Business Plan
2. how to create a law firm budget, 3. getting support: networking and hiring, 4. setting up your workplace, 5. creating your online presence, 6. implementing systems and processes, 7. making it official, 8. how to get more clients for your law firm.
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What is a business plan and why is it important.
A law firm business plan is a document that summarizes what you want to achieve and how you’ll run your business. This summary includes general information about your law firm, why you chose to start it, major goals, the services you offer, a budget, and a strategy for gaining and managing clients.
A business plan is essential to any law firm as it documents, and serves as, a roadmap for the future.
As you think through what it is you want to achieve, what type of clients you want to serve, how much to charge as a lawyer , and what type of matters you want to handle, your business plan may evolve. That’s okay! Your law firm business plan can change as your goals change, so don’t feel pressured to have all the answers upfront.
That being said, the more thought you put into your business plan now, the better you’ll set yourself up for success in the long run.
What to consider when creating your business plan
Before you start writing a law firm business plan, as an attorney and a potential entrepreneur, it’s important to take a step back and reflect on what you want from your practice first. For a more specific, meaningful, and ultimately rewarding business plan, consider these three points:
1. What are your business goals?
The first and most critical step in writing an effective plan is to ask yourself, “Why do I want to own a law firm ? What do I want to achieve? What’s my definition of success ?”
Starting your own law firm isn’t just about having a job—it gives you the potential to have more freedom and more fulfillment. In theory, owning your own firm gives you more control over your income.
Consider the following questions to get started:
- What do I want to achieve through starting my own law firm?
- What’s 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?
Answering these questions might be more difficult than you think, but they’ll help you get clear on your goals for why you want to run a law firm.
2. Consider how much revenue you’ll need
Now that you have an idea of what success looks like, calculate how much annual revenue you’ll need to achieve those goals—and more.
In 2024, the median pay for lawyers was $176,470 (up from $126,930 in 2023) . While this isn’t a small amount of money, after factoring in living expenses like saving for retirement, rent or mortgage payments, student debt repayment, vehicles, emergencies, office lease etc., that number gets eaten away quickly.
More importantly, there’s no extra room for investment in hiring or marketing to grow your law firm. So, it may just be you and you alone until things pick up.
In that case, be generous when estimating how much revenue you’ll need, and write down a number that scares you. You’ll be much better off planning with that number in mind from the beginning.
3. Setting your fee structure
After setting your goals and estimating a few rough numbers to start, it’s time to create your fee structure.
Your fee structure should include:
- What others charge on average
- What practice area you’ve chosen
- What your business expenses are
As you might already know, each client is different which means each matter you handle will be different. It could make sense to charge a flat rate for one project but an hourly rate for another.
Understanding what your competitors are charging and how they’re structuring their pricing is a good starting point to then build out your own fee structure.
Luckily, there are so many incredible tools out there such as Clio’s Legal Trends Report , which can help you understand average hourly rates; a benchmark calculator for hourly rates within your jurisdiction ; blog posts about billing; and more, that make it easy for you to do market research and understand what others are charging.
4. Determine how many cases you need to meet that revenue goal
If you are only handling two or three cases per month, the number you came up with above might look outrageous. It’s not.
For example, let’s use the 2024 median pay of $176,470 a year in annual revenue as our goal, with a flat fee of $3,000 per client.
$176,470 per year in revenue = an average case value of $3,000 – $3200 = 55 cases per year = 4 – 5 per month.
$176,470 per year might seem crazy if you’re only working a couple of cases per month, but keep in mind that you’re going to gradually work up to it.
The number of cases you’ll need may differ depending on your location and practice area, so do your research to make sure you come up with a realistic case goal (even if it still feels like a stretch).
This brings us to the next part of developing your business plan—writing it.
How to write a law firm business plan
Once you’ve got the starting points of your business plan worked out, it’s time to put pen to paper.
While your law firm business plan should be tailored to your unique situation, the following list will walk you step-by-step through all key sections you need to have a comprehensive business plan:
1. Executive summary
An executive summary is a one-page, high-level overview of all the key information in your business plan.
Law firm business plans can cover a lot, so it’s worth having a succinct high-level overview to keep things simple (hint: While this section should come first in your plan, it’s actually easier to write this section last, after you’ve laid out your plan).
Your executive summary should include:
- 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
Next, write a company summary for your firm, something concise that provides a general overview of your firm, while providing important details describing your practice and clients, including:
- 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
A little bit of preliminary market research goes a long way.
Look at bar association listings to see how many other firms in your area offer similar services. Is there a high demand for what you’re offering? If not, how can you ensure you stand out to potential clients? This will greatly inform the message you choose to use in your marketing efforts.
Create a market analysis for your firm, including the following:
- 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
You know that you’re the best person to lead the firm, but does everyone else know it too? This section is your opportunity to provide important details about yourself—and the key players in your firm.
- Highlight your experience and the educational background details that set you apart.
- Add the same for other members of your team, if applicable, including what makes them right for their specific roles.
- If your practice is on the larger size, this section is a great place to add quick visual aids like an organizational chart.
5. Services
Outline the types of legal services your firm provides.
For example, if you practice family law, what will you provide in your portfolio of legal services—cohabitation agreements? Wills/estates? Pre-nups?
You also want to include who your services are for. For example, you might offer legal tech services to start-up companies and high-tech clients.
When writing about your services it’s important to consider:
- 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?
How to Start a Law Firm Checklist
Everything you need to start a law firm—in one checklist
6. Marketing strategy
Marketing is a critical part of your law firm , and your business plan. It helps you understand how to make your firm stand out from others, how much you need to charge, and how you’ll get the word out and attract new clients. Learn more about how to get new clients for law firms .
Consider including the following in your law firm marketing strategy:
- Ideal client : Where would they find you ( online , through a local business directory, local Google ads , etc)?
- 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’re 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).
It’s also important to consider that your marketing needs will be different depending on the current stage of your law firm.
When starting your own law firm, then marketing for you might mean a lot of hustle—working referral relationships , identifying groups that you can get in front of for speaking engagements, blogging, and using social media to get your name in front of potential clients.
As you grow (or if you have existing marketing in place) you should be able to estimate the number of cases you will bring in through each channel. Then, you can quantify your marketing cost per client by dividing the total cost of that marketing effort by the number of cases you got from each marketing channel. For example, if you’re the only corporate lawyer in a small town, you’ll need to spend less on advertising than a family lawyer in a larger city.
Once you have an idea of the cost and effectiveness of your marketing efforts, implement a marketing tax on yourself—a percentage that comes out of every single case fee you collect, and that gets invested straight back into marketing efforts.
This is a simple way to think about how much you need to be charging to fuel your revenue goals. It’s also an easy way to scale and grow your marketing budget.
Once you start mapping out this information, you’ll notice that a system starts to form, which connects your goals, the number of cases you need to bring in, the profit you need to make on each case, the money you need to re-invest in marketing, and the number of people or contract resources you will need to employ to keep growing.
Learn more about how to market your law firm with Clio.
7. Financial plan
The heart of your law firm business plan is the financial plan. After all, when it comes to your business, there may not be a more important question than, “How much does it cost to run your law firm?”
The key is to include as much specific financial information as possible—particularly if you’re seeking funding like taking out a bank loan. As you start out, this financial plan should include numbers for your first year.
This could include:
- Revenue goal : How much money you want to make broken down by month.
- Financial projections : What you’ll realistically expect to earn, how many cases you think you’ll have capacity to take on, and what you’ll 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. (Clio makes this easy with the financial reporting feature ). This is different from your projections and budget and should be updated as the year progresses. You’ll 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.
As you start it’s reasonable to make assumptions based on your goals. You should also review and update this document for your second year, third year, and so on as time goes on.
8. Start-up budget
If you’re creating a business plan for a new law firm, you need a realistic start-up budget. To do this, you’ll need to consider a number of up-front and day-to-day costs, and account for these in your revenue goals.
Here are a few examples of costs to include in your budget:
- Hardware (laptops, printers, scanners, office furniture, etc.)
- Practice management software and other technology services
- 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.)
Once you’ve laid out all of these costs, take a second look. Are there places where you could reduce your operating costs, and in turn, increase your profit margins? There are also plenty of tools you can look at to help streamline non-billable tasks and leave yourself more time to practice law. Be sure to look at these options and work them into your operating budget.
Law firm business plan templates
Here are some links where you can find examples of business plans and business plan templates for law firms:
- Wy’East Law Firm
- Smith & Jones, P.A.
- Business Plan Workbook
Final thoughts on how to create a law firm business plan
Having a goal and understanding how to get there is essential for any lawyer deciding to hang their own shingle. Having a written business plan does a few key things:
- It creates a concrete explanation and breakdown of why you need to work a certain number of hours this week.
- It keeps you accountable to your goals and commitments.
- It serves as a comprehensive tool you can share with your firm, investors, and potential partners.
To learn more about how to start a law firm, be sure to check out our complete guide .
And again, remember that technology is a key part of any business plan. Watch how law firms use Clio in this on-demand webinar to learn how to set up an efficient and organized back office.
Written by: Lisa Dimyadi Last updated: August 12, 2024
Set yourself up for success with our free Guide to Starting a Law Firm, with advice from successful founding partners.
Seven Sample Attorney Business Plans: Why Attorneys Must Have Business Plans
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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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Harrison is the founder of BCG Attorney Search and several companies in the legal employment space that collectively gets thousands of attorneys jobs each year. Harrison is widely considered the most successful recruiter in the United States and personally places multiple attorneys most weeks. His articles on legal search and placement are read by attorneys, law students and others millions of times per year.
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How to Design a Successful Law Firm Business Plan
Want a successful law firm? Start with a solid business plan. Our guide covers everything that will help you create a roadmap for success.
Sasha Berson
A law firm exists to serve clients, so its business plan must reflect the needs of those it aims to support. This plan should outline the foundational elements of the practice, including operational details, marketing strategies, and financial projections, while also providing a clear path for future growth.
In this blog, we'll walk you through creating a comprehensive law firm business plan that aligns with your goals. Additionally, tune in to our latest Grow Law Firm podcast, where host Sasha Berson interviews Omar Ochoa, founding attorney of Omar Ochoa Law Firm, on business development for lawyers. Don’t miss the episode with Tom Lenfestey, where he shares insights on developing a profitable and sellable law firm.
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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.
A business plan aids decision-making by evaluating new ventures, managing risks, and setting financial goals. It ensures efficient resource use and tracks progress. Additionally, it drives growth by identifying opportunities and setting realistic targets. Overall, a solid business plan provides direction, supports decisions, and enables growth in the legal industry.
What to Consider Before Starting Law Firm Business Plans
Before starting a law firm business plan, think through a few key issues, including:
— Setting the Goals
Reflect deeply on your firm's purpose. Think about who you represent and how you can best meet their needs. A law firm exists for its clients. As you think about your law firm goals , think about goals for providing legal services to your clients.
"We continue to try to have the biggest impact that we can because ultimately, in my opinion at least, that's what lawyers are for, is to be able to help people and be able to move us forward." — Omar Ochoa
Set realistic, achievable goals that align with why you started your own law firm, like increasing collections. Plan how to reach them and measure success. For example, if your goal is to have ten lawyers in three years, set intermediate goals for years one and two to track progress.
— Choosing Partnership Structure
For lawyers considering a partnership structure, it's important to select partners that complement each other's strengths and weaknesses to help the firm function effectively.
There are 2 main partnership structure options:
- A single-tier model provides equal decision-making power and liability between partners.
- Meanwhile, a two-tier structure offers tiers like equity and non-equity partners, providing flexibility and career progression opportunities.
While similarly skilled individuals may clash, partners with differing abilities can succeed together. Some attorneys also choose to run their own firm for flexibility. This allows them to leverage different specialists through occasional joint ventures tailored for specific cases, without the constraints of a single long-term partnership. Furthermore, it highlights how the law firm partnership structures impacts freedom and sustainability.
— Thinking of the Revenue You Need
Calculate how much revenue you need to cover your overhead and pay your salary. Suppose your expenses include:
- $2,000 per month for office rent
- $36,000 per year for a legal assistant salary
- $600 per month for courier expenses
- $400 per month for a copier lease
Assume you want the median annual salary for lawyers of $127,990. You need $199,990 per year in revenue to cover your salary and expenses.
Revenue isn’t everything. You need enough monthly cash flow to cover expenses like rent, vendors, and payroll. Additionally, maintain a reserve for upfront costs, such as filing fees, until clients reimburse you.
— Defining the Rate of Payment
You need to make some difficult decisions when it comes to setting your own fee structure. If you choose a higher billing rate, you will need to work less to meet your revenue goals. But you might not find many clients who are able to pay your fees.
Whether you charge a flat fee, contingent fee, or hourly fee, you should expect potential clients to compare your fees to those of your direct and indirect competitors. Remember, your firm competes against other lawyers, online services like LegalZoom , and do-it-yourself legal forms books.
Finally, you need to comply with your state's rules of professional conduct when setting your fees. The ABA's model rules give eight factors to determine the reasonableness of a fee. These factors include the customary fee for your location and the skill required to provide the requested legal services.
— Making the Cases in Your Law Practice Meet the Revenue Needs
Determine how much work is needed to meet your revenue goal. Flat fee lawyers can divide their target by their fee. Hourly lawyers should calculate billable hours but account for admin tasks and uncollected fees. Contingency fee lawyers face uncertainty, as case values and settlement timelines are unpredictable, making projections difficult.
The Founder of Omar Ochoa Law Firm
Omar Ochoa is a founding attorney with extensive experience in complex litigation, including antitrust, class actions, and securities cases. He has recovered hundreds of millions of dollars for clients and has been nationally recognized as one of the best young trial lawyers in the country.
Omar graduated from the University of Texas at Austin with degrees in business administration, accounting, and economics. He later earned his law degree from the university, serving as editor-in-chief of the Texas Law Review. He has clerked for two federal judges and has worked at the prestigious law firm Susman Godfrey L.L.P. Omar is dedicated to seeking excellence. He has been recognized for his outstanding achievements in antitrust litigation.
Key Elements of Business Development for Lawyers: Plan Structure
A law firm business plan is a written document that lays out your law firm goals and strategies.
For many businesses, a business plan helps secure investors. But the ethical rules prohibit law firms from seeking funding from outside investors or non-lawyer shareholders .
Your business plan is for you and your law partners. It will help you manage everyone's expectations and roles in the firm. Here is a law firm business plan example to help you see the parts and pieces in action.
— Executive Summary
An executive summary combines the important information in the business plan into a single-page overview. Your plan will include details like projections, budgets, and staffing needs. This section highlights the conclusions from those detailed analyses.
Your executive summary should include :
- A mission statement explaining the purpose of your firm in one or two sentences
- A list of the core values that your firm will use whenever it makes decisions about its future
- The firm's overarching goals for itself, its lawyers, and the clients it serves
- The unique selling proposition that sets your firm apart from other firms in the legal industry
You should think of this section as a quick way for people like lenders, potential law partners, and merger targets, to quickly understand the principles that drive your firm.
- Easy steps you can take to bring in more clients and up this year’s revenue
- The top website and marketing mistakes holding your law firm back
— Law Firm Description and Legal Structure
First, you will describe what your law firm does. You will describe your law practice and the clients you expect to serve.
Second, you will describe how your firm operates. The organization and management overview will explain your legal structure and the management responsibilities of you and your law partners.
This section should fill in the details about your firm's operation and structure by:
- Describing the scope of the legal services you offer and your ideal clients
- Restating your mission statement and core values and expanding upon how they will guide your firm
- Explaining your location and where your clients will come from
- Describing your business entity type and management structure
- Detailing your unique selling proposition , including the features that distinguish your firm from your competitors
When someone reads this section, they should have a clear picture of what you will create.
— Financial Calculations
Your law firm business plan should clearly outline your revenue sources and expenses. This is where your skills as a lawyer shift toward business management. Creating a detailed financial plan with accurate financial projections is essential, especially if seeking loans or credit for your new firm.
You will need a financial plan for at least the first year.
Key components include:
- Revenue Analysis : Monthly fee projections.
- Budget : Estimated monthly and annual expenses.
- Financial Projections : Expected profit margins based on revenue and expenses.
- Cash Flow Statement : Tracking cash on hand and identifying potential financial challenges.
Accurate cash flow management is crucial for any legal organization to ensure growth in its early stages and business development for lawyers. Effective business development for lawyers includes not only marketing and client acquisition strategies but also robust financial planning and management to drive sustainable success.
"Take some financial statements courses, take some managerial accounting courses that teach you how to track costs, how to frame costs in a way that you're looking at the important costs." — Omar Ochoa
— Market Analysis
A market analysis helps define your position in the legal niche by understanding client needs and industry trends. A competitive analysis identifies your competitors, their services, pricing, and success factors, allowing you to refine your business operations and marketing strategy.
Key elements to include:
- Ideal Clients : Who they are and how your law services meet their needs.
- Market Size : Assess demand and whether your offerings align with client needs.
- Competitors : What they provide, their pricing, and standout features.
- Competitive Advantages : What sets you apart and how to leverage this in your marketing strategy.
This analysis guides business operations, marketing efforts, and potential areas for expansion in your legal niche.
Your market analysis helps you focus your efforts on your legal niche.
— Marketing Plan
A marketing plan outlines the steps to attract new clients by targeting your prospective clients and refining your marketing efforts. Start with a market analysis, identifying your target market, competitors, and competitive advantages. Then, develop a marketing strategy based on this analysis.
- Target Market : Define your ideal clients and understand their needs for legal services.
- Competitive Analysis : Identify what your competitors offer and how you can differentiate your legal services.
- Unique Selling Points : Highlight tangible benefits like lower billing rates or local offices, and intangible ones like specialized expertise or more experience.
- Marketing Message : Craft a clear message that emphasizes your unique advantages to prospective clients.
- Action Plan : Choose the marketing channels that best reach your target market, whether it’s through SEO, legal directories, or publications.
Tailor your marketing efforts to your legal specialty. For instance, IP lawyers may focus on business publications, while family law practitioners might target community platforms. Even if you rely on referrals, building brand recognition through a website and online directories is essential for attracting new clients. Include an executive summary that captures these core elements for legal professionals planning their marketing strategy.
— Your Law Firm Services
You will outline the services your law firm offers to clients. Lawyers with established clients and an existing legal practice can simply describe what they already do.
Any new law firm or lawyer transitioning from other practice areas should consider:
- Practice areas you know and enjoy
- Overlapping practice fields that will not require extra staff, such as personal injury and workers' comp
- Related legal services your clients may need, such as wills and guardianship
By offering needed services you can competently provide, you can gain clients and avoid referring existing clients out to other lawyers.
— Your Law Firm Budget
Approach your start-up budget as a dynamic plan. Initially, outline the one-time expenses like office space, furniture, and technology for your start-up company. These are essential for establishing your law firm but won’t recur frequently. Include recurring costs such as rent, staff salaries, and office manager expenses to understand your monthly operations.
Your budget should help founding partners determine the initial capital needed, assess profit margins, and decide if external funding is necessary. Efficiently managing your start-up budget ensures your law firm has a solid foundation to business development for lawyers.
Find out how much demand there is in your geographical area
Law Firm Business Plan Template
Each of the websites below includes at least one attorney business development plan template:
- Business Plan Workbook
- PracticePro
- Smith & Jones, P.A.
- Wy'East Law Firm
You can use a law firm strategic plan example from these sites to start your firm's plan, then turn the plan into a document unique to your circumstances, goals, and needs.
Some Useful Tips on Creating a Business Plan for Law Firm Creation and Development
As you draft your law firm business plan, you should focus on the process. By putting your thoughts down in writing, you will often identify issues you had not previously considered.
Some other tips for drafting your business plan include:
— Describe Both Strengths and Weaknesses
When preparing your law firm's business plan, project confidence while staying realistic. You'll use this plan to approach partners, lenders, and mergers, so back it up with solid financials. Address business challenges and competitive advantages, like competing with a firm with strong law firm reputation management . Outline marketing strategies to attract clients from competitors.
— Think Ahead
Your business plan serves as a roadmap for establishing and operating your law firm. Consider future challenges, like needing HR or handling payroll in-house as your firm grows. These changes add costs but can improve efficiency. However, projections beyond five years are often unreliable due to evolving clients and technology.
"A law firm that actually does something in the unique way that is an actual measurable advantage to their clients or to their firm." — Tom Lenfestey
— Be Clear about Your Intentions
As you develop your plan, you should keep its purpose in mind. First, you want to outline your core values and goals for your law firm. Set out the reasons why you started your law firm and what you intend to accomplish with it.
"You can't just be doing something because you want prestige. There's gotta be more to that, right? You have to have a purpose that you're following. And if you've got that, that purpose is like gravity, right? You will always be grounded." — Omar Ochoa
Second, you set out your path to achieving those goals. This will include boring technical information like how much you spend on legal research every month. But it will also explain your approach to solving problems consistent with your mission statement and philosophy for law firm management.
— Develop a Succession Plan for Your Law Firm
Creating a succession plan is crucial for founding partners to ensure a smooth transition and preserve the firm’s value. By analyzing market trends and profit margins, firms can stand out and attract potential buyers. Law firms generating over $2 million in revenue often have systems in place that enhance value and simplify transitions.
A transition-based sale, where the selling attorney stays involved temporarily, helps maintain client relationships and reduces risk. Investing in strong systems and planning early ensures your firm remains profitable, systematized, and attractive for future buyers, securing a successful exit strategy.
Building High-Value Law Firms with Tom Lenfestey, the CEO of Law Practice Exchange
This podcast episode features a discussion between Sasha Berson and Tom Lenfestey about the Law Practice Exchange, a marketplace for buying and selling law firms. Tom, an attorney and CPA, explains how his experience with other professionals inspired the creation of this marketplace. They discuss the importance of building systems to enhance a firm's value, the challenges of succession planning, and strategies for creating a smooth transition and maximizing value during a sale.
"You make more money with hopefully more consistency and less stress. And so that's also part of it is enjoy it. Build to better, right, overall, but build that firm that you want." — Tom Lenfestey
Tom Lenfestey
The CEO of Law Practice Exchange
Tom Lenfestey is an attorney and CPA who founded the Law Practice Exchange, a marketplace for buying and selling law firms. With a background in assisting dentists and CPAs in selling their practices, Tom identified the need for a similar platform for lawyers. His work focuses on helping attorneys realize the value of their practices, providing structured exit strategies, and facilitating smooth transitions.
Final Steps
While there's no one-size-fits-all answer to crafting a law firm business plan, it's an essential tool for effective business development for lawyers. The planning process helps identify overlooked issues and aligns partners with shared goals. This approach ensures your law firm is uniquely tailored to your vision and values, guiding you toward your original aspirations in the legal field.
To learn how to expand your client base as your firm grows, check out Grow Law Firm, a professional law firm SEO agency .
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How to Write a Law Firm Business Plan + Free Sample Plan PDF
Elon Glucklich
6 min. read
Updated April 3, 2024
Free Download: Sample Law Firm Business Plan Template
It’s a dynamic time to be in the legal industry. Over 63,000 new attorneys have started practicing in the U.S. in the past decade, and they’re joining law firms that are increasingly leveraging new technologies like AI to work more efficiently.
Owning your own law practice offers numerous advantages, from greater control of your caseloads to flexibility in setting billing rates.
But running a successful firm requires more than a deep knowledge of the law.
You need to market yourself, understand potential clients’ motivations and desires, and clearly explain to them why they should hire you over another firm. All of which you can figure out by going through the process of writing a business plan.
- What should you include in a law firm business plan?
Here are a few sections we recommend including in any law firm business plan:
Executive summary
Market analysis, marketing plan, company overview, financial plan.
The details of your plan will vary based on factors like the size of your legal practice and whether or not you need funding
If you’re seeking a bank loan or investment, you’re best off following the traditional approach to writing a business plan . Otherwise, don’t feel bound to writing a full plan. You can just focus on the business plan sections that are most relevant to your situation.
The executive summary is your opening pitch to the reader. Although it comes first in a business plan, you should write it last, since it distills your entire plan into a concise, one- to two-page overview.
Start by outlining your law firm’s focus and current status. Are you:
- A newly founded practice
- An established firm seeking expansion
- A multi-location enterprise
Then, summarize your practice areas and target clientele. Describe the issues you’re solving for potential clients, and why they should choose you over competitors.
Maybe your team has experience that’s relevant to your ideal client, or you offer an appealing fee structure. Anyone who reads the executive summary should be able to understand what makes your law firm unique .
Your executive summary briefly touches on your law firm’s area of focus. But the services section is where you give readers a detailed look at the expertise your legal practice offers, and how you address specific client needs.
What are your core practice areas? Do you represent:
Businesses: Contract disputes, regulatory compliance, employment law issues
Individuals: Personal injury claims, divorce proceedings, estate planning
Simply list all of your legal services. If you run an existing law practice, you can mention your existing client base. Also, specify if your law firm specializes in courtroom litigation, drafting contracts, or legal advisory services.
When writing out your services, consider what sets your firm apart. Maybe you provide free or low-cost initial consultations or specialize in areas underserved by competitors. Any services that might give you a competitive advantage are worth mentioning.
Understanding your potential client base is vital. Do you know the size of your market ? What are their characteristics?
To conduct a market analysis , start by profiling your ideal client. Consider basic demographic information , like their:
- Income level
- Geographic location
Take their life circumstances into account as well. Are they navigating events like:
- Recovering from an injury
- Being charged with a crime
- Running a business
- Planning an estate
Depending on their circumstances, you’ll need to research relevant trends in your area to determine whether there’s a growing demand for the services you offer.
Document who your competitors are as well. What other law firms might potential clients turn to? Note their strengths and weaknesses and compare them to your own in your market analysis.
This research will help you develop a unique value proposition—something only your firm offers that you can emphasize in your marketing strategy.
The marketing and sales plan is where you describe how you will stand out and attract clients.
Where are your potential clients seeking out legal information? Common channels for law firms to market their services include:
- Television and radio commercials
- Print and online advertisements
- Company website
You’ll likely want to consider a combination of these tactics.
But before spending your marketing budget, take some time in your business plan to determine how you’ll position yourself. If you’ve determined your law practice’s unique value proposition , it should be incorporated into all of your messaging.
Say you offer a unique combination of legal services in your market, such as financial compliance services for businesses and high-net-worth individuals. Your marketing plan is where you develop engaging messaging around your services that are tailored to your ideal client and the medium you’re promoting your services on.
Examples could include:
- Hiring a video production team to film a commercial for your legal practice
- Ensuring your law firm’s website is optimized for visibility on search engines.
- Creating pamphlets highlighting your service to distribute at business networking events or places where high net worth individuals frequent, like upscale health clubs or financial advisory offices.
One key point to remember is that the legal profession has specific marketing restrictions, to ensure law firms are promoting their services in an honest, ethical way. Make sure your plans adhere to the bar association’s guidelines .
The company overview isn’t an exhaustive history of your firm’s experience. It’s meant to quickly give the reader an understanding of your background, experience, and the structure of your firm.
Start with the basics:
Founding date: When was the firm established?
Legal structure: Is it a partnership, LLC, corporation, or other structure?
Location(s): List the communities your firm serves
Provide some detail about you and your team as well:
Founding partners: Summarize their legal experience, specializations, and any notable accomplishments.
Key Associates & staff: Briefly outline their roles and credentials
If your legal practice is already established, note any milestones you’ve achieved, such as major cases or community recognition. But even if you’re just starting, listing milestones like securing office space or building an initial client base are worth noting here as well.
Your law firm’s financial plan is crucial to determining if you have a strategy for running a viable business over the long term.
Here’s a breakdown of what you need:
Sales forecast : Project revenue based on billable hours, retainer fees, contingency cases (if applicable), and any other income sources. Be realistic, especially in the early stages.
Expense budget : List all of your costs, including:
- Salaries and benefits:
- Rent and office expenses
- Malpractice insurance and bar dues
- Technology (i.e. case management software)
- Marketing and client development
Profit & Loss (P&L) : Your income minus your expenses, showing if you expect to be profitable.
Cash flow statement : Predicts when cash comes in and goes out of your business. Cash flows are crucial to ensure you can cover bills and payroll.
Balance sheet : An overview of your law practice’s financial health, listing assets (cash, accounts receivable), liabilities (loans), and equity.
If you’re seeking outside financing to start your legal practice, list startup costs like office build-outs, initial marketing, and technology investments separately from your expenses, since these are areas you’ll be looking to fund with lender or investor funds.
Additionally, be clear about assumptions you’re making when forecasting your revenue streams (case volume, hourly rates, etc.). Researching similar law firms can help you ensure your projections are reasonable.
- Download your free law firm sample business plan
Download our law firm sample business plan for free right now and use it for reference as you write your own plan. You can even copy and paste sections from the sample plan and customize them for your business. Just make sure you’re taking the time to do your own research.
You can also view other legal business plans , or browse the full Bplans library of over 550 sample business plans across numerous industries.
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Elon is a marketing specialist at Palo Alto Software, working with consultants, accountants, business instructors and others who use LivePlan at scale. He has a bachelor's degree in journalism and an MBA from the University of Oregon.
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A business plan for lawyers: How to write one and what to include
- June 21, 2024
Jennifer Anderson
If you’re reading this article, Congratulations! You must be thinking about starting a law firm and are looking for examples of a business plan for lawyers.
Of course, if you’re serious about this prospect, one of the first things you’ll need to do is sit down and draft a business plan. And, as luck would have it, that’s why we’re here today.
In this post, we’re going to walk you through the steps of creating a business plan for your new firm. As Aristotle once said, “For the things we have to learn before we can do them, we learn by doing them.”
Sound advice.
A simple guide for a business plan for lawyers
So, we’ll provide you with the key parts and pieces for creating a law firm business plan along with a sample plan intended to show you how to create your own plan.
Now, in order to walk you through this, we’ve created a hypothetical firm using certain assumptions, which we’ll list below. Your new firm almost certainly has different factors at play.
That’s alright. We trust you’ll be able to plug in the particulars that suit your business. For now, here’s what our fictional new law firm looks like:
- This California-based law firm is founded by four partners who were all business owners before going to law school. Using our fictional founders’ last names, we’ll call the firm Smith, Jones, Jackson, & Wyle, LLP.
- The firm aims to have multiple practice areas including business litigation, labor and employment, technology, and real estate.
- The target clients will be small-to-midsize regional businesses throughout the state.
- The partners’ goal is to hire up to 10 associates over the next five years.
- The firm’s main competitors are other small, regional business-focused firms.
- Initial marketing ideas include social media, networking with former business contacts, and becoming thought leaders in various areas of the law through blogging and public speaking.
- The partners envision being highly tech dependent, utilizing CRMs, AI, and other tech tools as much as possible.
- The founding partners’ goal is to launch the firm in 6 months and to be profitable within a year.
With those basic facts in mind, let’s break down the various components that we’ll include in our business plan:
1. Executive summary
A business plan for lawyers, like any plan, should start with an e xecutive summary . This section concisely outlines a business plan’s key points, goals, and strategies. Ultimately, it serves as a snapshot for quick understanding and decision-making and should include the following parts:
Mission statement
A Mission Statement is like the elevator speech for your new firm. It charts the course for your goals, objectives, clients – and also quickly lays out your proposed methods for reaching those goals. A sample Mission Statement for our firm might say:
At Smith, Jones, Jackson, & Wyle, LLP (“SJJW”) we are dedicated to empowering small-to-midsize businesses in California with comprehensive legal solutions. With a foundation built on the rich business acumen and legal expertise of our founding partners, we aim to bridge the gap between business challenges and legal success. Our mission is to provide personalized, effective, and technology-driven legal services that not only address today’s legal needs but also anticipate tomorrow’s challenges. We are committed to becoming trusted advisors to our clients who leverage our unique background as former business owners to offer practical, actionable legal advice. Through innovation, integrity, and a client-focused approach, SJJW strives to achieve excellence in all aspects of our service, fostering long-term partnerships with our clients and contributing to their success.
Here, you will outline the firm’s growth objectives and provide a snapshot of the firm’s operations.
SJJW aims to become the leading legal advisor for California’s small to mid-sized businesses, expand our team with 10 associates within five years, and leverage technology to enhance efficiency and client satisfaction.
Brief overview
Some business plans also include a brief overview of the business. Our hypothetical firm’s overview might look like this:
Founded by four partners with business ownership backgrounds, our California-based law firm specializes in serving small-to-midsize businesses, emphasizing technology-driven solutions and personalized legal services to navigate complex challenges.
2. Firm description
Your law firm description will provide a bit more detail about the make-up of your business. This section should include information on: (1) legal structure and history; (2) location and areas of practice; and (3) vision for the future:
SJJW is a dynamic legal partnership founded by four seasoned attorneys who are also experienced business owners. Based in California, our firm offers comprehensive legal services tailored to the needs and challenges of small-to-midsize businesses across the state. Our firm practices in four distinct areas: Business Litigation, Labor and Employment, Technology, and Real Estate. With a deep understanding of both the legal landscape and the entrepreneurial journey, our team is uniquely positioned to provide strategic, effective solutions across this range of legal disciplines. As an LLP, we emphasize collaboration, integrity, and innovation, leveraging cutting-edge technology to deliver exceptional service and outcomes for our clients. Our commitment to excellence, combined with our business-savvy approach, makes us a trusted partner for businesses seeking to navigate legal complexities with confidence.
3. Market analysis
The next part of our business plan for lawyers is the market analysis. Your market analysis is where you do the heavy lifting around how your firm fits into California’s extensive legal market. It should include information on your target market, a competitive analysis, and the need for your particular firm within the region.
Target market
SJJW’s primary target market consists of small-to-midsize businesses in California, spanning various industries such as technology, retail, real estate, energy, and manufacturing. These businesses often encounter unique legal challenges that require personalized attention and expertise. With the state’s diverse economic landscape, there is a substantial demand for legal services that cater specifically to the nuanced needs of these entities, from regulatory compliance and intellectual property protection to labor disputes and contract negotiations.
Competitive landscape
The legal services market in California is highly competitive, with numerous firms vying for the business sector’s attention. Small, regional law firms similar to ours form the bulk of this competition, offering a range of general and specialized services. However, our differentiation lies in the unique blend of legal expertise and real-world business experience possessed by our founding partners. This combination positions us to offer unparalleled insights and practical solutions that resonate with business owners.
Market trends
The increasing complexity of regulatory environments, coupled with the rapid evolution of technology and the digital economy, has led businesses to seek legal partners who are not only advisors but also innovators. There’s a growing trend towards legal services that are highly specialized yet broadly knowledgeable about the cross-functional impacts of legal decisions.
Opportunities
Given our firm’s unique positioning and expertise, significant opportunities exist to capture market share by:
- Offering specialized services that address the intersection of business operations and legal requirements, such as compliance, data privacy, and e-commerce.
- Developing niche expertise in emerging areas of law that are particularly relevant to California’s business environment, such as tech startups, renewable energy, and digital media.
- Leveraging technology to provide more efficient, transparent, and cost-effective legal services, appealing to the tech-savvy and cost-conscious small-to-midsize business sector.
- Building strong relationships through networking and thought leadership, establishing the founding partners as go-to experts in legal matters relating to business.
Key challenges include establishing a distinct brand in a crowded market, continually adapting to rapidly changing legal and technological landscapes, and ensuring the firm remains accessible and appealing to the target market’s cost and value expectations.
In summary, the market analysis underscores the potential for SJJW to carve out a significant presence in California’s legal services sector for small-to-midsize businesses. By focusing on our strengths and strategically addressing the market’s needs, we can achieve substantial growth and success.
4. Marketing and sales strategy
The marketing and sales strategy is a crucial but often neglected aspect of any business plan for lawyers. This is where you lay out how you’re going to attract clients, convince them to use your firm’s services, and – importantly – how you’re going to retain those clients long term:
Our objective is to establish SJJW as the premier legal service provider for small to mid-sized businesses in California, leveraging our unique blend of business acumen and legal expertise.
Marketing strategy
Brand positioning
Position the firm as not just legal experts, but as partners in our clients’ business success, emphasizing our founding partners’ background as business owners.
Digital marketing
- Website : Develop a professional website highlighting our expertise, services, and the unique value we bring to businesses.
- Content marketing : Regularly publish blogs, articles, and whitepapers on legal issues affecting our target market, positioning us as thought leaders.
- Social media : Engage with our audience on platforms like LinkedIn and Twitter, sharing insights, legal updates, and participating in discussions relevant to our target industries.
Networking and partnerships
- Leverage the existing business contacts of our founding partners and actively participate in industry events, seminars, and local business associations to build relationships and referrals.
- Establish partnerships with complementary service providers (e.g., accounting firms, business consultants) to offer bundled services or referrals.
Public relations
- Engage in speaking opportunities at industry conferences, webinars, and local business events to increase visibility and establish credibility.
- Utilize press releases for significant firm milestones, new service offerings, or significant case wins to build brand awareness.
Sales strategy
Client acquisition
- Implement a CRM system to manage leads and opportunities effectively and utilize personalized follow-up and engagement strategies.
- Offer free initial consultations to prospective clients that provide immediate value and foster trust from the first interaction.
Client retention
- Provide exceptional client service with a focus on transparency, regular communication, and technology-driven solutions for ease of access and efficiency.
- Implement a client feedback loop to continuously improve services and address client needs proactively.
Cross-selling and up-selling
Once a client relationship is established, SJJW will identify additional legal needs or areas where the firm can provide value. The goal is to make sure all clients are aware of the full range of services offered.
By executing this comprehensive marketing and sales strategy, SJJW aims to rapidly grow its client base while maintaining high levels of client satisfaction and loyalty.
5. Operations plan
An operations plan outlines the day-to-day activities required to run your law firm. It details things like processes, technology, staffing, and resources needed to achieve business objectives.
To ensure efficient, effective, and client-focused legal service delivery through advanced technology integration and streamlined processes.
Legal operations
Case managemen t: Implement a state-of-the-art Case Management System (CMS) to track and manage all cases efficiently, ensuring deadlines are met, and clients are kept informed.
Document management : Utilize a secure, cloud-based Document Management System (DMS) for storing, retrieving, and sharing documents with clients and within the team, enhancing collaboration and security.
Client communication : Adopt Customer Relationship Management (CRM) software to manage client interactions, ensuring personalized and timely communication across all touchpoints.
Technology integration
Artificial Intelligence (AI) : Leverage AI tools for legal research, document review, and predictive analytics to increase accuracy and reduce turnaround times.
Automation tools : Implement automation in routine tasks such as billing, client notifications, and document drafting to improve efficiency and reduce the risk of human error.
Human resources
Team structure : SJJW will initially be comprised of four partners and support staff, with plans to expand to up to 10 associates within five years. It is our goal to foster a culture of teamwork and continuous learning.
Professional development : Invest in ongoing training and professional development opportunities for all staff, ensuring the team remains at the forefront of legal and technological advancements.
Client service
Service delivery model : Offer flexible service models including traditional hourly billing and alternative arrangements like flat fees for defined services.
Client feedback system : Implement a system for collecting and acting on client feedback to continually refine and improve service offerings.
Compliance and quality assurance
Regulatory compliance : Ensure strict adherence to legal and ethical standards, with regular reviews of compliance protocols, especially regarding data protection and privacy laws.
Quality control : Establish a quality control framework to review legal work internally, guaranteeing the highest standards of legal service.
6. Financial plan
Your financial plan is one of the most critical aspects of a business plan for lawyers. There are too many factors at play here for us to create a meaningful sample plan for our hypothetical firm, but here are the details you definitely want to include in your plan:
Initial capital and use
Detail how the initial capital provided by the founding partners will be allocated (e.g., office space, technology, marketing, initial payroll).
Financial projections
Include projections for revenue, expenses, and profitability for the first 1-5 years. Use realistic assumptions based on the size of your target market, expected client acquisition rates, billing rates, and operational costs.
Revenue projections
Estimate potential earnings from client work, taking into account the growth in associate numbers and the capacity to handle more cases and matters.
Expense projections
Forecast expenses, including salaries, technology investments, office overhead, and marketing costs.
Profitability analysis
Calculate when the firm expects to become profitable. Our hypothetical firm, for example, aims to be profitable within the first year.
7. Legal and regulatory compliance
What kind of lawyers would you be if your plan didn’t include a section on legal and regulatory compliance ? A business plan for lawyers should always cover compliance, particularly in an environment where it is becoming increasingly important for firms to accommodate it .
This is where you’ll provide details regarding legal practice, data protection, and any relevant regulations for your areas of practice.
To uphold the highest standards of legal and ethical integrity by ensuring full compliance with all applicable laws, regulations, and professional guidelines governing the practice of law in California.
Compliance framework
State Bar of California : SJJW will strictly adhere to the rules and ethical standards set forth by the State Bar of California, including those related to client confidentiality, conflict of interest, and professional conduct.
Data protection and privacy : We will implement powerful data security measures compliant with the California Consumer Privacy Act (CCPA) and any relevant federal laws. We will also protect client information through encrypted storage and secure communication channels.
Business operations compliance : As an LLP, SJJW will maintain compliance with California’s business operation laws, including partnership registration requirements, financial reporting, and tax obligations.
Employment law : It is our steadfast aim to follow all state and federal employment laws, ensuring fair labor practices, workplace safety, and equal opportunity employment within the firm.
Continuous monitoring and education
Regular training : We will conduct or host ongoing legal education and training for all partners and staff on compliance matters, changes in the law, and best practices in legal ethics and data protection.
Compliance audits : The firm will perform regular internal audits to review and assess compliance with all legal, regulatory, and ethical standards, identifying and rectifying any potential issues proactively.
Risk management
Professional liability insurance : Before beginning operations, SJJW will secure comprehensive professional liability insurance to protect the firm and its clients against potential legal malpractice claims or other claims.
Conflict of interest checks : The firm will implement a rigorous system for conducting conflict of interest checks for every new client and case, with the goal of preventing ethical breaches and maintaining the firm’s integrity.
Client confidentiality and trust
Confidentiality protocols : SJJW will establish strict confidentiality protocols to protect client information, including secure document handling procedures and restricted access to sensitive data.
Client trust accounts : In accordance with California law, the firm will manage client funds with the utmost care, adhering to the State Bar’s guidelines for handling and accounting for trust accounts, ensuring transparency and accountability.
8. Milestones and timeline
Finally, a business plan for lawyers should include a section that details the timing involved in getting your law firm up and running. Again, there are probably too many details to give an effective sample here, but at the very least, your plan should include the following components:
Launch timeline
Here, you’ll plot out the key steps leading up to your launch date , including legal organization, the establishment of your office space, technology implementation, and initial marketing.
Growth milestones
Lawyers love deadlines and the growth milestones section is a good place to create them. Set specific goals for things like client acquisition, revenue targets, and team expansion to be reached within the first year and beyond.
Obviously, your firm’s business plan will include a lot more detail than our hypothetical plan for SJJW. We hope, however, that this sample plan gets you started on an enjoyable journey to starting a successful law firm.
Starting a law firm is a challenging yet rewarding endeavor. A well-crafted business plan for lawyers means getting all the essentials in place to guide your firm’s growth and success.
Get your executive summary, firm description, market analysis, marketing and sales strategy, operations plan, financial plan, and legal compliance all covered before embarking.
With careful planning and execution, you can build a firm that not only meets but exceeds your expectations, providing exceptional legal services to your clients.
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Learn how to write a law firm business plan with a template and tips. Find out what to consider when setting your goals, revenue, fee structure, and case volume.
Your law firm business plan is vital to understand what you hope to accomplish, how you'll set goals and recognize when you've achieved them, and to decide the core aspects of how your law firm will function.
Because it can take years to develop legal business, a business plan focuses you on what you need to do to ensure that you'll have business down the road. It will help you and your firm focus time and resources on those opportunities that offer the greatest chances for success.
While there's no one-size-fits-all answer to crafting a law firm business plan, it's an essential tool for effective business development for lawyers. The planning process helps identify overlooked issues and aligns partners with shared goals.
Download our law firm sample business plan for free right now and use it for reference as you write your own plan. You can even copy and paste sections from the sample plan and customize them for your business.
A well-crafted business plan for lawyers means getting all the essentials in place to guide your firm’s growth and success. Get your executive summary, firm description, market analysis, marketing and sales strategy, operations plan, financial plan, and legal compliance all covered before embarking.