Start-up Funding | |
Start-up Expenses to Fund | $1,250 |
Start-up Assets to Fund | $23,750 |
Total Funding Required | $25,000 |
Assets | |
Non-cash Assets from Start-up | $5,000 |
Cash Requirements from Start-up | $18,750 |
Additional Cash Raised | $0 |
Cash Balance on Starting Date | $18,750 |
Total Assets | $23,750 |
Liabilities and Capital | |
Liabilities | |
Current Borrowing | $0 |
Long-term Liabilities | $0 |
Accounts Payable (Outstanding Bills) | $0 |
Other Current Liabilities (interest-free) | $0 |
Total Liabilities | $0 |
Capital | |
Planned Investment | |
Investor 1 | $25,000 |
Investor 2 | $0 |
Other | $0 |
Additional Investment Requirement | $0 |
Total Planned Investment | $25,000 |
Loss at Start-up (Start-up Expenses) | ($1,250) |
Total Capital | $23,750 |
Total Capital and Liabilities | $23,750 |
Total Funding | $25,000 |
WLF will provide provide law services to two different groups of customers.
WLF’s customers can be divided into two groups, technology firms and public interest organizations.
Market Analysis | |||||||
Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | |||
Potential Customers | Growth | CAGR | |||||
Technology companies | 9% | 345 | 376 | 410 | 447 | 487 | 9.00% |
Public interest organizations | 8% | 278 | 300 | 324 | 350 | 378 | 7.98% |
Other | 0% | 0 | 0 | 0 | 0 | 0 | 0.00% |
Total | 8.55% | 623 | 676 | 734 | 797 | 865 | 8.55% |
WLF will be targeting high technology companies for two reasons.
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.
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.
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.
WLF’s competitive advantage will be based on two factors, experience and specialization:
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.
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.
Sales Forecast | |||
Year 1 | Year 2 | Year 3 | |
Sales | |||
Technology companies | $174,096 | $189,525 | $195,747 |
Public Interest organizations | $16,839 | $22,578 | $24,547 |
Total Sales | $190,935 | $212,103 | $220,294 |
Direct Cost of Sales | Year 1 | Year 2 | Year 3 |
Technology companies | $0 | $0 | $0 |
Public Interest organizations | $0 | $0 | $0 |
Subtotal Direct Cost of Sales | $0 | $0 | $0 |
WLF will have several milestones early on:
Milestones | |||||
Milestone | Start Date | End Date | Budget | Manager | Department |
Business plan completion | 1/1/2001 | 1/1/2001 | $0 | Richard | Marketing |
Set up ofifce | 1/1/2001 | 1/1/2001 | $0 | Richard | Department |
First month of total technology subsidy | 4/1/2001 | 4/1/2001 | $0 | WLF | Department |
Totals | $0 |
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.
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.
Personnel Plan | |||
Year 1 | Year 2 | Year 3 | |
Richard | $66,000 | $66,000 | $66,000 |
Receptionist/ secretary | $11,550 | $12,500 | $13,500 |
Paralegal | $22,000 | $23,000 | $24,000 |
Law clerk | $8,100 | $11,000 | $12,000 |
Law clerk | $4,500 | $11,000 | $12,000 |
Total People | 5 | 5 | 5 |
Total Payroll | $112,150 | $123,500 | $127,500 |
The following sections will outline important financial information.
The following table details important assumptions.
General Assumptions | |||
Year 1 | Year 2 | Year 3 | |
Plan Month | 1 | 2 | 3 |
Current Interest Rate | 10.00% | 10.00% | 10.00% |
Long-term Interest Rate | 10.00% | 10.00% | 10.00% |
Tax Rate | 25.42% | 25.00% | 25.42% |
Other | 0 | 0 | 0 |
The following table and charts present the projected profit and loss.
Pro Forma Profit and Loss | |||
Year 1 | Year 2 | Year 3 | |
Sales | $190,935 | $212,103 | $220,294 |
Direct Cost of Sales | $0 | $0 | $0 |
Other | $0 | $0 | $0 |
Total Cost of Sales | $0 | $0 | $0 |
Gross Margin | $190,935 | $212,103 | $220,294 |
Gross Margin % | 100.00% | 100.00% | 100.00% |
Expenses | |||
Payroll | $112,150 | $123,500 | $127,500 |
Sales and Marketing and Other Expenses | $2,160 | $2,160 | $2,160 |
Depreciation | $1,668 | $1,666 | $1,666 |
Leased Equipment | $0 | $0 | $0 |
Utilities | $1,500 | $1,500 | $1,500 |
Rent | $2,400 | $2,400 | $2,400 |
Payroll Taxes | $16,823 | $18,525 | $19,125 |
Other | $0 | $0 | $0 |
Total Operating Expenses | $136,701 | $149,751 | $154,351 |
Profit Before Interest and Taxes | $54,235 | $62,352 | $65,943 |
EBITDA | $55,903 | $64,018 | $67,609 |
Interest Expense | $0 | $0 | $0 |
Taxes Incurred | $13,210 | $15,588 | $16,761 |
Net Profit | $41,024 | $46,764 | $49,182 |
Net Profit/Sales | 21.49% | 22.05% | 22.33% |
The Break-even Analysis indicates what WLF will need in hours and revenue a month to reach the break-even point.
Break-even Analysis | |
Monthly Revenue Break-even | $11,392 |
Assumptions: | |
Average Percent Variable Cost | 0% |
Estimated Monthly Fixed Cost | $11,392 |
The following chart and table show anticipated cash flow.
Pro Forma Cash Flow | |||
Year 1 | Year 2 | Year 3 | |
Cash Received | |||
Cash from Operations | |||
Cash Sales | $47,734 | $53,026 | $55,074 |
Cash from Receivables | $112,707 | $155,697 | $163,912 |
Subtotal Cash from Operations | $160,441 | $208,722 | $218,986 |
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 | $160,441 | $208,722 | $218,986 |
Expenditures | Year 1 | Year 2 | Year 3 |
Expenditures from Operations | |||
Cash Spending | $112,150 | $123,500 | $127,500 |
Bill Payments | $31,394 | $41,570 | $41,800 |
Subtotal Spent on Operations | $143,544 | $165,070 | $169,300 |
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 | $143,544 | $165,070 | $169,300 |
Net Cash Flow | $16,898 | $43,652 | $49,686 |
Cash Balance | $35,648 | $79,300 | $128,986 |
The following table displays the projected balance sheet.
Pro Forma Balance Sheet | |||
Year 1 | Year 2 | Year 3 | |
Assets | |||
Current Assets | |||
Cash | $35,648 | $79,300 | $128,986 |
Accounts Receivable | $30,494 | $33,874 | $35,183 |
Other Current Assets | $0 | $0 | $0 |
Total Current Assets | $66,141 | $113,174 | $164,168 |
Long-term Assets | |||
Long-term Assets | $5,000 | $5,000 | $5,000 |
Accumulated Depreciation | $1,668 | $3,334 | $5,000 |
Total Long-term Assets | $3,332 | $1,666 | $0 |
Total Assets | $69,473 | $114,840 | $164,168 |
Liabilities and Capital | Year 1 | Year 2 | Year 3 |
Current Liabilities | |||
Accounts Payable | $4,699 | $3,302 | $3,448 |
Current Borrowing | $0 | $0 | $0 |
Other Current Liabilities | $0 | $0 | $0 |
Subtotal Current Liabilities | $4,699 | $3,302 | $3,448 |
Long-term Liabilities | $0 | $0 | $0 |
Total Liabilities | $4,699 | $3,302 | $3,448 |
Paid-in Capital | $25,000 | $25,000 | $25,000 |
Retained Earnings | ($1,250) | $39,774 | $86,538 |
Earnings | $41,024 | $46,764 | $49,182 |
Total Capital | $64,774 | $111,538 | $160,721 |
Total Liabilities and Capital | $69,473 | $114,840 | $164,168 |
Net Worth | $64,774 | $111,538 | $160,721 |
Industry profile ratios based on the NAICS code 541110, Offices of Lawyers, are shown in the table below.
Ratio Analysis | ||||
Year 1 | Year 2 | Year 3 | Industry Profile | |
Sales Growth | 0.00% | 11.09% | 3.86% | 8.50% |
Percent of Total Assets | ||||
Accounts Receivable | 43.89% | 29.50% | 21.43% | 8.60% |
Other Current Assets | 0.00% | 0.00% | 0.00% | 66.90% |
Total Current Assets | 95.20% | 98.55% | 100.00% | 75.50% |
Long-term Assets | 4.80% | 1.45% | 0.00% | 24.50% |
Total Assets | 100.00% | 100.00% | 100.00% | 100.00% |
Current Liabilities | 6.76% | 2.88% | 2.10% | 50.20% |
Long-term Liabilities | 0.00% | 0.00% | 0.00% | 12.90% |
Total Liabilities | 6.76% | 2.88% | 2.10% | 63.10% |
Net Worth | 93.24% | 97.12% | 97.90% | 36.90% |
Percent of Sales | ||||
Sales | 100.00% | 100.00% | 100.00% | 100.00% |
Gross Margin | 100.00% | 100.00% | 100.00% | 0.00% |
Selling, General & Administrative Expenses | 78.70% | 77.95% | 77.55% | 58.20% |
Advertising Expenses | 0.13% | 0.11% | 0.11% | 0.50% |
Profit Before Interest and Taxes | 28.40% | 29.40% | 29.93% | 3.40% |
Main Ratios | ||||
Current | 14.08 | 34.28 | 47.62 | 1.54 |
Quick | 14.08 | 34.28 | 47.62 | 1.09 |
Total Debt to Total Assets | 6.76% | 2.88% | 2.10% | 63.10% |
Pre-tax Return on Net Worth | 83.73% | 55.90% | 41.03% | 12.30% |
Pre-tax Return on Assets | 78.07% | 54.29% | 40.17% | 33.40% |
Additional Ratios | Year 1 | Year 2 | Year 3 | |
Net Profit Margin | 21.49% | 22.05% | 22.33% | n.a |
Return on Equity | 63.33% | 41.93% | 30.60% | n.a |
Activity Ratios | ||||
Accounts Receivable Turnover | 4.70 | 4.70 | 4.70 | n.a |
Collection Days | 57 | 74 | 76 | n.a |
Accounts Payable Turnover | 7.68 | 12.17 | 12.17 | n.a |
Payment Days | 34 | 36 | 29 | n.a |
Total Asset Turnover | 2.75 | 1.85 | 1.34 | n.a |
Debt Ratios | ||||
Debt to Net Worth | 0.07 | 0.03 | 0.02 | n.a |
Current Liab. to Liab. | 1.00 | 1.00 | 1.00 | n.a |
Liquidity Ratios | ||||
Net Working Capital | $61,442 | $109,872 | $160,721 | n.a |
Interest Coverage | 0.00 | 0.00 | 0.00 | n.a |
Additional Ratios | ||||
Assets to Sales | 0.36 | 0.54 | 0.75 | n.a |
Current Debt/Total Assets | 7% | 3% | 2% | n.a |
Acid Test | 7.59 | 24.02 | 37.41 | n.a |
Sales/Net Worth | 2.95 | 1.90 | 1.37 | n.a |
Dividend Payout | 0.00 | 0.00 | 0.00 | n.a |
Sales Forecast | |||||||||||||
Month 1 | Month 2 | Month 3 | Month 4 | Month 5 | Month 6 | Month 7 | Month 8 | Month 9 | Month 10 | Month 11 | Month 12 | ||
Sales | |||||||||||||
Technology companies | 0% | $0 | $8,005 | $9,514 | $13,587 | $16,547 | $16,874 | $16,854 | $17,525 | $18,547 | $18,752 | $18,887 | $19,004 |
Public Interest organizations | 0% | $0 | $1,100 | $1,200 | $1,500 | $1,545 | $1,587 | $1,584 | $1,654 | $1,666 | $1,548 | $1,741 | $1,714 |
Total Sales | $0 | $9,105 | $10,714 | $15,087 | $18,092 | $18,461 | $18,438 | $19,179 | $20,213 | $20,300 | $20,628 | $20,718 | |
Direct Cost of Sales | Month 1 | Month 2 | Month 3 | Month 4 | Month 5 | Month 6 | Month 7 | Month 8 | Month 9 | Month 10 | Month 11 | Month 12 | |
Technology companies | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Public Interest organizations | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Subtotal Direct Cost of Sales | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
Personnel Plan | |||||||||||||
Month 1 | Month 2 | Month 3 | Month 4 | Month 5 | Month 6 | Month 7 | Month 8 | Month 9 | Month 10 | Month 11 | Month 12 | ||
Richard | 0% | $5,500 | $5,500 | $5,500 | $5,500 | $5,500 | $5,500 | $5,500 | $5,500 | $5,500 | $5,500 | $5,500 | $5,500 |
Receptionist/ secretary | 0% | $0 | $1,050 | $1,050 | $1,050 | $1,050 | $1,050 | $1,050 | $1,050 | $1,050 | $1,050 | $1,050 | $1,050 |
Paralegal | 0% | $0 | $2,000 | $2,000 | $2,000 | $2,000 | $2,000 | $2,000 | $2,000 | $2,000 | $2,000 | $2,000 | $2,000 |
Law clerk | 0% | $0 | $0 | $0 | $900 | $900 | $900 | $900 | $900 | $900 | $900 | $900 | $900 |
Law clerk | 0% | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $900 | $900 | $900 | $900 | $900 |
Total People | 1 | 3 | 3 | 4 | 4 | 4 | 4 | 5 | 5 | 5 | 5 | 5 | |
Total Payroll | $5,500 | $8,550 | $8,550 | $9,450 | $9,450 | $9,450 | $9,450 | $10,350 | $10,350 | $10,350 | $10,350 | $10,350 |
General Assumptions | |||||||||||||
Month 1 | Month 2 | Month 3 | Month 4 | Month 5 | Month 6 | Month 7 | Month 8 | Month 9 | Month 10 | Month 11 | Month 12 | ||
Plan Month | 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 | 11 | 12 | |
Current Interest Rate | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | |
Long-term Interest Rate | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | |
Tax Rate | 30.00% | 25.00% | 25.00% | 25.00% | 25.00% | 25.00% | 25.00% | 25.00% | 25.00% | 25.00% | 25.00% | 25.00% | |
Other | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Pro Forma Profit and Loss | |||||||||||||
Month 1 | Month 2 | Month 3 | Month 4 | Month 5 | Month 6 | Month 7 | Month 8 | Month 9 | Month 10 | Month 11 | Month 12 | ||
Sales | $0 | $9,105 | $10,714 | $15,087 | $18,092 | $18,461 | $18,438 | $19,179 | $20,213 | $20,300 | $20,628 | $20,718 | |
Direct Cost of Sales | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Other | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Total Cost of Sales | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Gross Margin | $0 | $9,105 | $10,714 | $15,087 | $18,092 | $18,461 | $18,438 | $19,179 | $20,213 | $20,300 | $20,628 | $20,718 | |
Gross Margin % | 0.00% | 100.00% | 100.00% | 100.00% | 100.00% | 100.00% | 100.00% | 100.00% | 100.00% | 100.00% | 100.00% | 100.00% | |
Expenses | |||||||||||||
Payroll | $5,500 | $8,550 | $8,550 | $9,450 | $9,450 | $9,450 | $9,450 | $10,350 | $10,350 | $10,350 | $10,350 | $10,350 | |
Sales and Marketing and Other Expenses | $180 | $180 | $180 | $180 | $180 | $180 | $180 | $180 | $180 | $180 | $180 | $180 | |
Depreciation | $139 | $139 | $139 | $139 | $139 | $139 | $139 | $139 | $139 | $139 | $139 | $139 | |
Leased Equipment | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Utilities | $125 | $125 | $125 | $125 | $125 | $125 | $125 | $125 | $125 | $125 | $125 | $125 | |
Rent | $200 | $200 | $200 | $200 | $200 | $200 | $200 | $200 | $200 | $200 | $200 | $200 | |
Payroll Taxes | 15% | $825 | $1,283 | $1,283 | $1,418 | $1,418 | $1,418 | $1,418 | $1,553 | $1,553 | $1,553 | $1,553 | $1,553 |
Other | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Total Operating Expenses | $6,969 | $10,477 | $10,477 | $11,512 | $11,512 | $11,512 | $11,512 | $12,547 | $12,547 | $12,547 | $12,547 | $12,547 | |
Profit Before Interest and Taxes | ($6,969) | ($1,372) | $238 | $3,576 | $6,581 | $6,950 | $6,927 | $6,633 | $7,667 | $7,754 | $8,082 | $8,172 | |
EBITDA | ($6,830) | ($1,233) | $377 | $3,715 | $6,720 | $7,089 | $7,066 | $6,772 | $7,806 | $7,893 | $8,221 | $8,311 | |
Interest Expense | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Taxes Incurred | ($2,091) | ($343) | $59 | $894 | $1,645 | $1,737 | $1,732 | $1,658 | $1,917 | $1,938 | $2,020 | $2,043 | |
Net Profit | ($4,878) | ($1,029) | $178 | $2,682 | $4,935 | $5,212 | $5,195 | $4,974 | $5,750 | $5,815 | $6,061 | $6,129 | |
Net Profit/Sales | 0.00% | -11.30% | 1.66% | 17.77% | 27.28% | 28.23% | 28.17% | 25.94% | 28.45% | 28.65% | 29.38% | 29.58% |
Pro Forma Cash Flow | |||||||||||||
Month 1 | Month 2 | Month 3 | Month 4 | Month 5 | Month 6 | Month 7 | Month 8 | Month 9 | Month 10 | Month 11 | Month 12 | ||
Cash Received | |||||||||||||
Cash from Operations | |||||||||||||
Cash Sales | $0 | $2,276 | $2,679 | $3,772 | $4,523 | $4,615 | $4,610 | $4,795 | $5,053 | $5,075 | $5,157 | $5,180 | |
Cash from Receivables | $0 | $0 | $228 | $6,869 | $8,145 | $11,390 | $13,578 | $13,845 | $13,847 | $14,410 | $15,162 | $15,233 | |
Subtotal Cash from Operations | $0 | $2,276 | $2,906 | $10,641 | $12,668 | $16,006 | $18,188 | $18,640 | $18,900 | $19,485 | $20,319 | $20,413 | |
Additional Cash Received | |||||||||||||
Sales Tax, VAT, HST/GST Received | 0.00% | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
New Current Borrowing | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
New Other Liabilities (interest-free) | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
New Long-term Liabilities | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Sales of Other Current Assets | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Sales of Long-term Assets | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
New Investment Received | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Subtotal Cash Received | $0 | $2,276 | $2,906 | $10,641 | $12,668 | $16,006 | $18,188 | $18,640 | $18,900 | $19,485 | $20,319 | $20,413 | |
Expenditures | Month 1 | Month 2 | Month 3 | Month 4 | Month 5 | Month 6 | Month 7 | Month 8 | Month 9 | Month 10 | Month 11 | Month 12 | |
Expenditures from Operations | |||||||||||||
Cash Spending | $5,500 | $8,550 | $8,550 | $9,450 | $9,450 | $9,450 | $9,450 | $10,350 | $10,350 | $10,350 | $10,350 | $10,350 | |
Bill Payments | ($761) | ($687) | $1,458 | $1,879 | $2,841 | $3,571 | $3,660 | $3,656 | $3,724 | $3,975 | $3,999 | $4,079 | |
Subtotal Spent on Operations | $4,739 | $7,863 | $10,008 | $11,329 | $12,291 | $13,021 | $13,110 | $14,006 | $14,074 | $14,325 | $14,349 | $14,429 | |
Additional Cash Spent | |||||||||||||
Sales Tax, VAT, HST/GST Paid Out | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Principal Repayment of Current Borrowing | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Other Liabilities Principal Repayment | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Long-term Liabilities Principal Repayment | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Purchase Other Current Assets | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Purchase Long-term Assets | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Dividends | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Subtotal Cash Spent | $4,739 | $7,863 | $10,008 | $11,329 | $12,291 | $13,021 | $13,110 | $14,006 | $14,074 | $14,325 | $14,349 | $14,429 | |
Net Cash Flow | ($4,739) | ($5,587) | ($7,102) | ($688) | $376 | $2,985 | $5,078 | $4,634 | $4,826 | $5,160 | $5,970 | $5,984 | |
Cash Balance | $14,011 | $8,424 | $1,322 | $634 | $1,010 | $3,995 | $9,073 | $13,707 | $18,533 | $23,693 | $29,663 | $35,648 |
Pro Forma Balance Sheet | |||||||||||||
Month 1 | Month 2 | Month 3 | Month 4 | Month 5 | Month 6 | Month 7 | Month 8 | Month 9 | Month 10 | Month 11 | Month 12 | ||
Assets | Starting Balances | ||||||||||||
Current Assets | |||||||||||||
Cash | $18,750 | $14,011 | $8,424 | $1,322 | $634 | $1,010 | $3,995 | $9,073 | $13,707 | $18,533 | $23,693 | $29,663 | $35,648 |
Accounts Receivable | $0 | $0 | $6,829 | $14,637 | $19,083 | $24,507 | $26,962 | $27,213 | $27,752 | $29,065 | $29,879 | $30,188 | $30,494 |
Other Current Assets | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
Total Current Assets | $18,750 | $14,011 | $15,253 | $15,959 | $19,717 | $25,517 | $30,958 | $36,286 | $41,459 | $47,597 | $53,573 | $59,852 | $66,141 |
Long-term Assets | |||||||||||||
Long-term Assets | $5,000 | $5,000 | $5,000 | $5,000 | $5,000 | $5,000 | $5,000 | $5,000 | $5,000 | $5,000 | $5,000 | $5,000 | $5,000 |
Accumulated Depreciation | $0 | $139 | $278 | $417 | $556 | $695 | $834 | $973 | $1,112 | $1,251 | $1,390 | $1,529 | $1,668 |
Total Long-term Assets | $5,000 | $4,861 | $4,722 | $4,583 | $4,444 | $4,305 | $4,166 | $4,027 | $3,888 | $3,749 | $3,610 | $3,471 | $3,332 |
Total Assets | $23,750 | $18,872 | $19,975 | $20,542 | $24,161 | $29,822 | $35,124 | $40,313 | $45,347 | $51,346 | $57,183 | $63,323 | $69,473 |
Liabilities and Capital | Month 1 | Month 2 | Month 3 | Month 4 | Month 5 | Month 6 | Month 7 | Month 8 | Month 9 | Month 10 | Month 11 | Month 12 | |
Current Liabilities | |||||||||||||
Accounts Payable | $0 | $0 | $2,132 | $2,521 | $3,458 | $4,184 | $4,273 | $4,268 | $4,327 | $4,577 | $4,598 | $4,677 | $4,699 |
Current Borrowing | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
Other Current Liabilities | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
Subtotal Current Liabilities | $0 | $0 | $2,132 | $2,521 | $3,458 | $4,184 | $4,273 | $4,268 | $4,327 | $4,577 | $4,598 | $4,677 | $4,699 |
Long-term Liabilities | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
Total Liabilities | $0 | $0 | $2,132 | $2,521 | $3,458 | $4,184 | $4,273 | $4,268 | $4,327 | $4,577 | $4,598 | $4,677 | $4,699 |
Paid-in Capital | $25,000 | $25,000 | $25,000 | $25,000 | $25,000 | $25,000 | $25,000 | $25,000 | $25,000 | $25,000 | $25,000 | $25,000 | $25,000 |
Retained Earnings | ($1,250) | ($1,250) | ($1,250) | ($1,250) | ($1,250) | ($1,250) | ($1,250) | ($1,250) | ($1,250) | ($1,250) | ($1,250) | ($1,250) | ($1,250) |
Earnings | $0 | ($4,878) | ($5,907) | ($5,729) | ($3,047) | $1,888 | $7,100 | $12,295 | $17,270 | $23,019 | $28,835 | $34,896 | $41,024 |
Total Capital | $23,750 | $18,872 | $17,843 | $18,021 | $20,703 | $25,638 | $30,850 | $36,045 | $41,020 | $46,769 | $52,585 | $58,646 | $64,774 |
Total Liabilities and Capital | $23,750 | $18,872 | $19,975 | $20,542 | $24,161 | $29,822 | $35,124 | $40,313 | $45,347 | $51,346 | $57,183 | $63,323 | $69,473 |
Net Worth | $23,750 | $18,872 | $17,843 | $18,021 | $20,703 | $25,638 | $30,850 | $36,045 | $41,020 | $46,769 | $52,585 | $58,646 | $64,774 |
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Law firms are something more than a business. Law firms and the lawyers within them are engaged in a profession, with obligations that go beyond purely commercial concerns.
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This truth can obscure the need for lawyers to pay attention to the business management side of their practices: their finances, marketing plans, business development efforts, IT purchases, lease terms and capital needs. For the highly trained lawyer, such concerns may feel at best like an afterthought, or at worst a nuisance that steals time from their true occupation: the “practice of law.”
And yet, those annoying business details are responsible for keeping the lights on. While law firms may be more than a business, there is, in fact, a large and necessary business element to them. For solo practices and small firms in particular, investing time into the business management side of legal practice can make a major difference in the financial rewards they derive from it—or even their survival. Firms that have failed to do so in the past (and even those that haven’t) can get a handle on their law practice business management by taking the step of drafting a business plan.
We’ll discuss the components of a business plan in a moment, but first, let’s talk about why this exercise is valuable. For another type of business, a business plan may be useful in attracting investors or securing financing. Law firms should not think of their business plans as utilitarian documents in that sense (although someday one could prove helpful in obtaining a line of credit, say, or attracting lateral partners). Instead, the primary value of the business plan, particularly for the solo practice or small firm drafting one for the first time, lies in the fact that it forces the firm to think about business issues that it otherwise would not have considered.
As the D.C. Bar says in its advice to startup law offices : “The act of planning helps you think things through thoroughly, study and research if you are not sure of the facts, and look at your ideas critically. It takes time now, but avoids costly, perhaps disastrous, mistakes later.”
Of course, a business plan does little for anyone if it is quickly forgotten. But the mere act of generating a business plan gives a firm a direction to head in and goals to point toward. If the firm makes it a practice to revisit the business plan on an annual basis (if not more regularly), its business considerations will stay top-of-mind and the firm will continually refine them in ways that improve its performance.
Creating a strong business plan will require an investment of time and energy. At the same time, no one wants to write, or read, a massive document. To improve the chances that the project gets done, and gets read, it is best to keep a business plan to a reasonable length. Anything over 20 pages may stretch attention spans to the breaking point, and there’s no harm in going shorter if you have covered all the territory you need to by that point.
So, what, exactly, is the territory that you should cover? Most authorities agree that a sound business plan for a law firm should address the following broad areas:
This section should include basic information about the firm: its name, legal structure, practice areas and leadership positions. It should also contain some deeper information about the firm's identity and aspirations.
This would include:
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
This section should discuss the business trends affecting the firm’s important practice areas and clients. It should evaluate any technologies that are affecting your practice area and consider how the firm may leverage or keep up with them. This section should also devote substantial energy to identifying the firm’s major competitors in each of its important practice areas and comparing their services to the firm’s.
In this section, identify the firm’s major clients, breaking them down by important characteristics like size, location, industry and practice groups used. Go through a similar exercise for major client prospects and targets. It’s worth examining how the firm can improve its relationships with both of these groups.
Important financial information includes the firm’s fixed and variable costs, backward- and forward-looking revenue, realization rate, collection rate, monthly overhead, assets and liabilities. A 12-month profit and loss projection should be included and could be considered the heart of the business plan.
There is a great amount of detail that any firm could get into on this front. Don’t get overwhelmed by it; at the same time, this is some of the most important information in the business plan, so it’s not advisable to gloss over it.
This section will address key operational issues like the office lease, equipment purchases and technology plans. You may assign roles to various staff members for operational issues.
Think about what marketing the firm currently performs, how it obtains clients and what marketing goals it wants to set for the future.
After completing these and any other sections the firm might want to address, then go back and draft an executive summary to be included at the beginning of the business plan document. The summary should be professional, but don’t be afraid to give it some optimistic energy. After all, with your eyes on the business management fundamentals of your firm, things should be looking up for the future.
Written by Dave Lavinsky
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.
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.
The following are the services that Harris & Harris Law Firm will provide:
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.
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.
Harris & Harris Law Firm will be able to achieve success by offering the following competitive advantages:
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:
The following graph outlines the financial projections for Harris & Harris Law Firm.
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.
Since incorporation, Harris & Harris Law Firm has achieved the following milestones:
The following will be the services Harris & Harris Law Firm will provide:
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.
Demographic profile of target market.
Total | Percent | |
---|---|---|
Total population | 1,680,988 | 100% |
Male | 838,675 | 49.9% |
Female | 842,313 | 50.1% |
20 to 24 years | 114,872 | 6.8% |
25 to 34 years | 273,588 | 16.3% |
35 to 44 years | 235,946 | 14.0% |
45 to 54 years | 210,256 | 12.5% |
55 to 59 years | 105,057 | 6.2% |
60 to 64 years | 87,484 | 5.2% |
65 to 74 years | 116,878 | 7.0% |
75 to 84 years | 52,524 | 3.1% |
Harris & Harris Law Firm will primarily target the following customer profiles:
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 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 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.
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.
Harris & Harris Law Firm will be able to offer the following advantages over their competition:
Brand & value proposition.
Harris & Harris Law Firm will offer the unique value proposition to its clientele:
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.
The following will be the operations plan for Harris & Harris Law Firm. Operation Functions:
Harris & Harris Law Firm will have the following milestones completed in the next six months.
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.
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:
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.
Income statement.
FY 1 | FY 2 | FY 3 | FY 4 | FY 5 | ||
---|---|---|---|---|---|---|
Revenues | ||||||
Total Revenues | $360,000 | $793,728 | $875,006 | $964,606 | $1,063,382 | |
Expenses & Costs | ||||||
Cost of goods sold | $64,800 | $142,871 | $157,501 | $173,629 | $191,409 | |
Lease | $50,000 | $51,250 | $52,531 | $53,845 | $55,191 | |
Marketing | $10,000 | $8,000 | $8,000 | $8,000 | $8,000 | |
Salaries | $157,015 | $214,030 | $235,968 | $247,766 | $260,155 | |
Initial expenditure | $10,000 | $0 | $0 | $0 | $0 | |
Total Expenses & Costs | $291,815 | $416,151 | $454,000 | $483,240 | $514,754 | |
EBITDA | $68,185 | $377,577 | $421,005 | $481,366 | $548,628 | |
Depreciation | $27,160 | $27,160 | $27,160 | $27,160 | $27,160 | |
EBIT | $41,025 | $350,417 | $393,845 | $454,206 | $521,468 | |
Interest | $23,462 | $20,529 | $17,596 | $14,664 | $11,731 | |
PRETAX INCOME | $17,563 | $329,888 | $376,249 | $439,543 | $509,737 | |
Net Operating Loss | $0 | $0 | $0 | $0 | $0 | |
Use of Net Operating Loss | $0 | $0 | $0 | $0 | $0 | |
Taxable Income | $17,563 | $329,888 | $376,249 | $439,543 | $509,737 | |
Income Tax Expense | $6,147 | $115,461 | $131,687 | $153,840 | $178,408 | |
NET INCOME | $11,416 | $214,427 | $244,562 | $285,703 | $331,329 |
FY 1 | FY 2 | FY 3 | FY 4 | FY 5 | ||
---|---|---|---|---|---|---|
ASSETS | ||||||
Cash | $154,257 | $348,760 | $573,195 | $838,550 | $1,149,286 | |
Accounts receivable | $0 | $0 | $0 | $0 | $0 | |
Inventory | $30,000 | $33,072 | $36,459 | $40,192 | $44,308 | |
Total Current Assets | $184,257 | $381,832 | $609,654 | $878,742 | $1,193,594 | |
Fixed assets | $180,950 | $180,950 | $180,950 | $180,950 | $180,950 | |
Depreciation | $27,160 | $54,320 | $81,480 | $108,640 | $135,800 | |
Net fixed assets | $153,790 | $126,630 | $99,470 | $72,310 | $45,150 | |
TOTAL ASSETS | $338,047 | $508,462 | $709,124 | $951,052 | $1,238,744 | |
LIABILITIES & EQUITY | ||||||
Debt | $315,831 | $270,713 | $225,594 | $180,475 | $135,356 | |
Accounts payable | $10,800 | $11,906 | $13,125 | $14,469 | $15,951 | |
Total Liability | $326,631 | $282,618 | $238,719 | $194,944 | $151,307 | |
Share Capital | $0 | $0 | $0 | $0 | $0 | |
Retained earnings | $11,416 | $225,843 | $470,405 | $756,108 | $1,087,437 | |
Total Equity | $11,416 | $225,843 | $470,405 | $756,108 | $1,087,437 | |
TOTAL LIABILITIES & EQUITY | $338,047 | $508,462 | $709,124 | $951,052 | $1,238,744 |
FY 1 | FY 2 | FY 3 | FY 4 | FY 5 | ||
---|---|---|---|---|---|---|
CASH FLOW FROM OPERATIONS | ||||||
Net Income (Loss) | $11,416 | $214,427 | $244,562 | $285,703 | $331,329 | |
Change in working capital | ($19,200) | ($1,966) | ($2,167) | ($2,389) | ($2,634) | |
Depreciation | $27,160 | $27,160 | $27,160 | $27,160 | $27,160 | |
Net Cash Flow from Operations | $19,376 | $239,621 | $269,554 | $310,473 | $355,855 | |
CASH FLOW FROM INVESTMENTS | ||||||
Investment | ($180,950) | $0 | $0 | $0 | $0 | |
Net Cash Flow from Investments | ($180,950) | $0 | $0 | $0 | $0 | |
CASH FLOW FROM FINANCING | ||||||
Cash from equity | $0 | $0 | $0 | $0 | $0 | |
Cash from debt | $315,831 | ($45,119) | ($45,119) | ($45,119) | ($45,119) | |
Net Cash Flow from Financing | $315,831 | ($45,119) | ($45,119) | ($45,119) | ($45,119) | |
Net Cash Flow | $154,257 | $194,502 | $224,436 | $265,355 | $310,736 | |
Cash at Beginning of Period | $0 | $154,257 | $348,760 | $573,195 | $838,550 | |
Cash at End of Period | $154,257 | $348,760 | $573,195 | $838,550 | $1,149,286 |
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 .
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.
Law Firm businesses are often funded through small business loans. Personal savings, credit card financing and angel investors are also popular forms of funding.
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:
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Business plans for lawyers.
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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
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:
No set formula for a successful practice
Before developing a plan for a lawyer, answer the following:
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:
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.
4 Describing and Analyzing Your Own Firm
Strengths & Weaknesses are vis à vis your competitors, rather than your own history Focus on current competition and potential competition
5 Competitive Analysis and Target Market
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
6 Marketing & Strategy
Once you analyze your client needs you can build a comprehensive marketing strategy,
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By: Author Tony Martins Ajaero
Home » Business ideas » Service Industry » Legal Services » Law Firm
Are you about starting a Law firm? If YES, here’s a complete sample Law firm business plan template & feasibility report you can use for FREE to get started .
Okay, so we have considered all the requirements for starting a law firm . We also took it further by analyzing and drafting a sample law firm marketing plan template backed up by actionable guerrilla marketing ideas for law firms. So let’s proceed to the business planning section.
Lawyers would always be in need by people, companies, schools, and what have you. This isn’t unique to any part of the world, because it is the same phenomenon all over the world. For as long as there are people still living on the face of the earth, there would be rancor and disputes, and the need to have lawyers trash out cases would always arise.
It is for this reason that some lawyers have positioned themselves to take advantage of this trend, and have continued to make huge amount of money from the industry. Without mincing words, starting a law firm is a very profitable venture.
1. industry overview.
The services of lawyers are needed in every part of the united states of America. Statistics has it that the United States of America has about 165,000 law offices and they generate about $180 billion in annual revenue. These goes to show that starting a law firm is indeed a prosperous business in the U.S, because there is a large market for such business and the industry provides loads of job opportunities for lawyers and other professionals.
The United States Bureau of Labor Statistics predicts that job opportunities for legal practitioners will grow at the same rate as the average for all other occupations in coming years; the growth will be fastest in areas such as intellectual property, healthcare, antitrust, and environmental law et al.
No doubt, the growth of the U.S. population and the expansion of corporate America will definitely lead to the growth in the demand for legal services.
All over the globe, before anyone can be allowed to practice law, they are expected to pass the bar exams in the country or state in which they want to practice. In other words, the journey of starting your own private law firm starts when you eventual pass through a law school.
Although a large percentage of lawyers work for big, corporate law firms, but there are still many lawyers who are employed at mid-sized regional firms and even in one- man and two-person law firms. Just like most other industries in the U.S. and in other parts of the world, the legal services industry is globalizing at a swift pace.
Progressively more, bigger law firms are establishing offices in other countries, some are restructuring and repositioning their existing foreign offices, and others are merging or partnering with local law firms in order to position their organization to handle legal aspects of international trade and other related issues.
This recent trend is responsible for creating job opportunities for lawyers with expertise in international relations and cross-border transactions et al. In the U.S. and also in other parts of the world, lawyer firms who know how to position their organization will always be busy handling legal businesses for their clients.
Some law firms may decide to operate a general law business that cuts across various law practices, whilst others may choose to specialize in any of the two major areas of private sector law. They can choose to operate as a transactional (corporate) law firm or specialize in litigation.
Beyond every reasonable doubt, being a lawyer can be extremely challenging and demanding, but at the same time, it can also be quite rewarding. Lawyers have the privilege of providing a vital service to the business world and to individuals as well.
Lawyers serve as protectors, advisers, and advocates, which is why they are considered experts in communication, analysis, and persuasion, giving them prestige and leverage in society.
Jefferson & MacArthur Law Firm LLP is a law firm that will be located in Inc. 268 13th Street, Suite 1110 Oakland, California 94612. The company will operate as a litigation law firm and also handle other related aspect of law as requested by our clients.
Our services will cover areas such as; breaches of contract, securities-law breaches, class-action lawsuits, antitrust actions, employment-related problems, white-collar crime, and any other related cases.
We are aware that businesses these days require diverse and sophisticated legal services. This is why we will position our law firm to offer a wide range of legal services as requested by our clients. We handle offer legal services ranging from mergers and acquisitions to Product liability, from intellectual property to real estate.
Jefferson & MacArthur Law Firm LLP is a client-focused business law firm that provides broad-based experience at an affordable fee that won’t in any way put a hole in the pocket of our clients.
We will offer a complete range of legal services to our local, state, national, and multi-national clients and we will ensure that we work hard to provide the legal services and counsel needed by our clients to accomplish their business goals and objectives.
At Jefferson & MacArthur Law Firm, our client’s best interests come first, and everything we do is guided by our values and professional ethics. We will ensure that we hire attorneys who are well experienced in a wide variety of transactional and litigation matters.
We will ensure that we hold ourselves accountable to the highest standards by meeting our client’s needs precisely and completely. We will cultivate a working environment that provides a human, sustainable approach to earning a living, and living in our world, for our partners, employees and for our clients.
Jefferson & MacArthur Law Firm will at all times demonstrate her commitment to sustainability, both individually and as a firm, by actively participating in our communities and integrating sustainable business practices wherever possible.
Jefferson & MacArthur Law Firm, LLP is founded by Jefferson Carson and his son MacArthur Carson. The organization will be managed by MacArthur Carson; he graduated from Cumberland School of Law and Brock School of Business at Stamford University.
He has extensive experience in a diverse range of transactional matters, and his legal practice is concentrated in the areas of commercial real estate, commercial finance, construction, and general business contracts.
Jefferson and MacArthur Law Firm, LLP proposes to offer a variety of services within the scope of the law industry in the United States of America. Our intention of starting our law firm is to make profits from the industry and we will do all that is permitted by the law in the US to achieve our aim and ambition. Our business offering are listed below;
Our Business Structure
Jefferson and MacArthur Law Firm, LLP will build a solid business structure that can support the growth of our business. We will ensure that we hire competent hands to help us build the business of our dream. Below is the business structure that we will build Jefferson and MacArthur Law Firm, LLP on;
Patent Attorney
Legal Secretary
Admin and HR Manager
Business Developer
Front Desk Officer
Founder and President:
Legal Office Assistant
Jefferson and MacArthur Law Firm, LLP hired the services of a core professional in the area of business consulting and structuring to assist the firm in building a solid law firm that can favorably compete in the highly competitive law industry.
Part of what the business consultant did was to work with the management of the firm in conducting a SWOT analysis and preparing a law firm marketing plan for Jefferson and MacArthur Law Firm, LLP. Here is a summary from the result of the SWOT analysis that was conducted on behalf of Jefferson and MacArthur Law Firm, LLP;
Our core strength lies in the power of our team; our workforce. We have a team that can go all the way to give our clients value for their money. We are well positioned and we know we will attract loads of clients from the first day we open our doors for business.
As a new law firm, it might take some time for our firm to break into the market; that is perhaps our major weakness.
The opportunities in the law industry is massive and we are ready to take advantage of any opportunity that comes our way.
Some of the threats that we are likely going to face as a law firm operating in the United States are unfavorable government policies, and global economic downturn. There are hardly anything we could do as regards these threats other than to be optimistic that things will continue to work for our good.
Quite a number of distinct trends have emerged in recent times in the legal industry, which is why law firms are positioning their organizations to survive the peaks and troughs of an ailing economy.
As a matter of fact, most of these trends aid law firms and organizations to become more creative, competitive, efficient, and productive in a global market. Some other trends in the legal industry could be attributed to changing demographics, attitudes and work styles.
Another trend that is gaining momentum in the legal industry is that clients have the options of seeking legal assistance from a growing number of non-lawyer professionals such as; paralegal technicians, legal document preparers, legal self-help sites, virtual assistants and offshore legal vendors.
As a result of this trend, the decisions about how legal services are delivered which include staffing, scheduling, strategies and most importantly how firms charge for their services – are increasingly being influenced by the clients, and not by the law firms as it used to be in time past.
No doubt, as the cost of legal services continues to increase and as corporate spending falls, new legal delivery methods will continue to emerge and gain momentum going forward. In addition, the market for legal services has shifted from a sellers’ market to a buyers’ market.
Lastly, it is now becoming trendy in the legal industry for smaller law firms to merge with bigger law firms and for bigger law firms to acquire smaller law firms; mergers and acquisitions. Many law firms all over the United States are coming to the conclusion that the bigger the better for them.
Although Jefferson and MacArthur Law Firm, LLP will initially serve small to medium sized businesses, from new ventures to well established businesses, but that does not in any way stop us from growing to be able to compete with the leading law firms in the United States.
We hope to someday merge or acquire other law firms and expand our legal services beyond the shores of the United States of America.
As a full service business law firm, Jefferson and MacArthur Law Firm, LLP have a variety of practice areas to help startups grow.
While we works with a variety of organizations and industries, Jefferson and MacArthur Law Firm, LLP will also specialize in working with startups, real estate investors, and contractors, manufacturers and distributors, banks, lending and financial institutions.
Our target market cuts across people of different classes and people from all walks of life, local and international organizations as well. We are coming into the industry with a business concept that will enable us work with the highly placed people and companies in the country and at the same with the lowly placed people and smaller businesses.
In other words, our target market is the whole of the United States of America and subsequently other parts of the world. Below is a list of the people and organizations that we have specifically design our products and services for;
Our Competitive Advantage
A close study of the legal industry reveals that the law firm market has become much more intensely competitive over the past seven years. As a matter of fact, the supply of legal services has significantly exceeded demand. In other to position to take on the market, most law firms have begun to merger or acquire other law firms.
Jefferson and MacArthur Law Firm, LLP might be a new entrant into the law industry in the United States of America, but the management staffs and board members are considered gurus. They are people who are core professionals and licensed legal practitioners in the US. These are part of what will count as a competitive advantage for us.
Lastly, our employees will be well taken care of, and their welfare package will be amongst the best within our category (startups law firm) in the industry – meaning that they will be more than willing to build the business with us and help deliver our set goals and achieve all our objectives.
Jefferson and MacArthur Law Firm, LLP is established with the aim of maximizing the profits in the law industry and we are going to go all the way to ensure that we do all it takes to attract clients on a regular basis. Jefferson and MacArthur Law Firm, LLP we generate income by offering the following legal services for individuals and for organizations;
As long as there are people living in the United States of America and business starting and growing in the U.S., the services of law firms will always be needed.
We are well positioned to take on the available market in the U.S, and we are quite optimistic that we will meet our set target of generating enough income / profits from the first month or operations and grow the business and clientele beyond Oakland, CA to other states in the U.S. and even the global market
We have been able to critically examine the law market and we have analyzed our chances in the industry. We have been able to come up with the following sales forecast. The sales projection are based on information gathered on the field and some assumptions that are peculiar to startups in California.
Below is the sales projection for Jefferson and MacArthur Law Firm, LLP, it is based on the location of our law firm and the wide range of legal services that we will be offering;
N.B : This projection is done based on what is obtainable in the industry,
We are mindful of the fact that there is stiffer competition in the legal market in the United States of America; hence we have been able to hire some of the best business developer to handle our sales and marketing.
Our sales and marketing team will be recruited based on their vast experience in the industry and they will be trained on a regular basis so as to be well equipped to meet their targets and the overall goal of the organization. We will also ensure that our excellent job deliveries speaks for us in the market place; we want to build a legal business that will leverage on word of mouth advertisement from satisfied clients (both individuals and organizations).
Our goal is to grow our firm to become one of the top 20 law firms in California, which is why we have mapped out strategy that will help us take advantage of the available market and grow to become a major force in the. Jefferson and MacArthur Law Firm, LLP is set to make use of the following marketing and sales strategies to attract clients;
We have been able to work with our consultants to help us map out publicity and advertising strategies that will help us walk our way into the heart of our target market.
We are set to take the law industry by storm which is why we have made provisions for effective publicity and advertisement of our firm. Below are the platforms we intend to leverage on to promote and advertise our property development business;
Hourly billing for legal services is long – time tradition in the industry. However, for some types of work, flat fees make more sense because they allow clients to better predict legal costs. As a result of this, Jefferson and MacArthur Law Firm, LLP will charge our clients a flat fee for many basic services such as; business formation and document drafting and review.
At Jefferson and MacArthur Law Firm, LLP we will keep our fees below market rate for all of our clients by keeping our overhead low and by collecting payment in advance. In addition, we will also offer special discounted rates to disadvantaged individuals, nonprofits, cooperatives, and small social enterprises.
We are aware that there are some clients that would need regular access to legal advice and assistance; we will offer flat rate general counsel services that will be tailored to take care of such clients’ needs.
At Jefferson and MacArthur Law Firm, LLP, our payment policy will be all inclusive because we are quite aware that different people prefer different payment options as it suits them. Here are the payment options that we will make available to our clients;
In view of the above, we have chosen banking platforms that will help us achieve our plans without any itches.
Going by the report from our research and feasibility studies, we will need about $200,000 to set up a law firm in Oakland, California.
Generating Funding / Startup Capital for At Jefferson and MacArthur Law Firm, LLP
At Jefferson and MacArthur Law Firm, LLP is going to start as a private business that will be solely owned by Bar Jefferson Carson and family.
He will be the sole financial of the firm, but may likely welcome partners pretty much which is why he has decided to restrict the sourcing of his start – up capital to 3 major sources. These are the areas we intend generating our start – up capital;
N.B: We have been able to generate about $60,000 (Personal savings $40,000 and soft loan from family members $20,000) and we are at the final stages of obtaining a loan facility of $100,000 from our bank. All the papers and document has been signed and submitted, the loan has been approved and any moment from now our account will be credited.
It is easier for businesses to survive when they have steady flow of business deals / customers patronizing their products and services. We are aware of this which is why we have decided to offer a wide range of legal services. We know that if we continue to deliver excellent legal services, there will be steady from of income for the organization.
Our key sustainability and expansion strategy is to ensure that we only hire competent employees, create a conducive working environment and employee benefits for our staff members. In the nearest future, we will explore the options of either merging with other law firms or acquire law firms in order for us to increase our market share.
We know that if we implement our business strategies, we will grow our law business beyond Oakland, California to other states in the U.S in record time.
Check List / Milestone
Here is a free business plan sample for a legal consulting services.
If you're passionate about the intricacies of the legal world and are considering launching your own legal consultancy, you've landed on the perfect page.
In the content that follows, we will present to you a comprehensive sample business plan tailored for a legal consultancy firm.
As an aspiring legal consultant, you're likely aware that a meticulously formulated business plan is a cornerstone of any successful venture. It serves as a roadmap, outlining your professional objectives, strategies, and the framework for your consulting services.
To streamline your planning process and ensure you're on the path to success, you can utilize our legal consultancy business plan template. Additionally, our team of experts is available to review and refine your plan at no extra cost.
A good business plan for a legal consultancy must reflect the unique aspects of the legal industry.
To start, it is crucial to provide a comprehensive overview of the legal market. This includes current statistics and identifying emerging trends within the legal field, as illustrated in our legal consultancy business plan template .
Then, you must articulate your business concept effectively. This encompasses your mission, pinpointing your target clientele (such as small businesses, corporations, or individuals), and the distinctive services your legal consultancy offers (like specialized legal advice, compliance services, or intellectual property management).
The market analysis section should delve into a thorough understanding of the competitive landscape, legal service trends, and client needs.
For a legal consultancy, particular emphasis should be placed on the services you plan to provide. Detail your service offerings - contract drafting, legal audits, dispute resolution, etc. - and explain how they cater to the requirements and challenges faced by your target clients.
The operational plan is equally important. It should outline the location of your consultancy, the structure of your legal team, partnerships with other legal professionals, and your approach to case management.
In a legal consultancy, it is vital to highlight your team's expertise, confidentiality policies, and adherence to legal and ethical standards.
Then, address your marketing and client acquisition strategy. How will you build your client base and ensure client retention? Consider networking strategies, reputation management, and client service excellence.
Adopting digital strategies, such as a professional website or an online legal resource center, is also crucial in the modern marketplace.
The financial plan is another critical component. This should include your startup costs, revenue projections, operating expenses, and the point at which you expect to break even.
In a legal consultancy, understanding your cash flow is essential, as billing cycles can be lengthy and contingent on case outcomes. For this, you may refer to our financial forecast for a legal consultancy .
Compared to other business plans, a legal consultancy's plan must pay closer attention to regulatory compliance, professional liability insurance, and the potential for cyclical demand based on legal trends.
A well-crafted business plan will not only help you to define your strategy and approach but also to attract clients or secure funding.
Lenders and clients seek robust market analysis, sound financial projections, and a clear understanding of how the consultancy will manage its caseload and client relationships.
By presenting a detailed and substantiated plan, you showcase your professionalism and dedication to the success of your consultancy.
To achieve these goals while saving time, you are welcome to fill out our legal consultancy business plan template .
Here, we will provide a concise and illustrative example of a business plan for a specific project.
This example aims to provide an overview of the essential components of a business plan. It is important to note that this version is only a summary. As it stands, this business plan is not sufficiently developed to support a profitability strategy or convince a bank to provide financing.
To be effective, the business plan should be significantly more detailed, including up-to-date market data, more persuasive arguments, a thorough market study, a three-year action plan, as well as detailed financial tables such as a projected income statement, projected balance sheet, cash flow budget, and break-even analysis.
All these elements have been thoroughly included by our experts in the business plan template they have designed for a legal consultant .
Here, we will follow the same structure as in our business plan template.
Market data and figures.
The legal consulting market is a robust and essential sector within the professional services industry.
Recent estimates value the global legal services market at approximately 850 billion dollars, with projections indicating steady growth in the coming years. This is driven by an increase in legal complexities, regulatory changes, and the globalization of business operations.
In the United States, there are over 1.3 million licensed attorneys, contributing to a legal services market that generates an estimated annual revenue of over 300 billion dollars.
These figures underscore the critical role legal consultants play in the business ecosystem and their substantial contribution to the economy.
The legal industry is experiencing significant shifts, with trends that emphasize efficiency, accessibility, and specialization.
Technology adoption is on the rise, with law firms and legal consultants leveraging artificial intelligence, legal tech software, and online platforms to streamline operations and offer more cost-effective services.
There is also a growing demand for niche legal expertise, particularly in areas such as cybersecurity, data privacy, intellectual property, and environmental law, reflecting the evolving landscape of business risks and regulatory requirements.
Alternative legal service providers (ALSPs) are gaining traction, offering a range of services from legal process outsourcing to consultancy, challenging traditional law firm models.
Moreover, clients are increasingly seeking transparent billing practices and value-based pricing models, pushing legal consultants to innovate in their service delivery and client engagement strategies.
These trends indicate a transformation in how legal services are provided and consumed, aligning with the evolving expectations of 21st-century clients.
Several key elements contribute to the success of a legal consultant.
Expertise and specialization are paramount. Legal consultants who possess deep knowledge and experience in specific legal areas can offer more value to their clients and differentiate themselves in the market.
Building strong client relationships is also essential. Trust, confidentiality, and a track record of successful outcomes are crucial for client retention and referrals.
The ability to adapt to new technologies and incorporate them into legal practices can significantly enhance efficiency and client satisfaction.
Strategic networking and partnerships can expand a legal consultant's reach and resources, providing a competitive edge.
Lastly, effective business management, including cost control, marketing, and continuous professional development, is vital for sustaining and growing a legal consultancy practice in a dynamic market.
Project presentation.
Our legal consultancy project is designed to provide specialized legal services to individuals and businesses seeking expert advice and representation in various legal matters. Located in a business district with a high concentration of small to medium-sized enterprises, this consultancy will offer a comprehensive range of legal services, including contract law, intellectual property, employment law, and corporate compliance, all delivered with a commitment to professionalism and client satisfaction.
The focus will be on providing personalized legal solutions that are both effective and cost-efficient, ensuring that clients receive the best possible outcome for their legal issues.
This legal consultancy aims to become a trusted advisor and partner for clients, offering not just legal services but also proactive legal risk management and strategic advice to help them navigate the complexities of the law.
The value proposition of our legal consultancy project is centered on delivering expert legal advice and representation tailored to the unique needs of each client. Our commitment to understanding our clients' businesses and challenges allows us to provide targeted legal solutions that protect their interests and facilitate their growth.
We are dedicated to maintaining the highest standards of integrity and transparency, ensuring that our clients are well-informed and confident in the legal strategies we pursue on their behalf.
Our consultancy aims to build long-term relationships with clients, becoming an integral part of their success by offering reliable, accessible, and forward-thinking legal services.
The project owner is a seasoned legal professional with a wealth of experience in providing legal counsel to a diverse clientele. With a background in both law firm and in-house settings, they possess a deep understanding of the legal challenges that businesses and individuals face.
Armed with a strong track record of successful case outcomes and a reputation for excellent client service, the project owner is committed to establishing a legal consultancy that stands out for its strategic approach, client-centric services, and innovative legal thinking.
With a dedication to the law and a passion for helping clients overcome their legal hurdles, the project owner is the driving force behind this project, aiming to deliver not just legal services, but peace of mind and a foundation for success.
Market segments.
The market segments for a legal consultancy are diverse and can be categorized as follows:
Firstly, there are small to medium-sized enterprises (SMEs) that require legal services but may not have the resources to maintain an in-house legal department.
Secondly, individual entrepreneurs and startups are in need of legal advice for business formation, intellectual property protection, and contract negotiations.
Additionally, larger corporations may seek specialized legal consulting for complex transactions, compliance issues, or litigation support.
Lastly, non-profit organizations and public sector entities also form a significant segment, often requiring legal expertise in regulatory, employment, and contractual matters.
A SWOT analysis of the legal consultancy business reveals several key points:
Strengths include a deep understanding of legal frameworks, a reputation for professionalism and confidentiality, and the ability to offer personalized legal solutions.
Weaknesses might encompass the challenge of keeping up with rapidly changing laws and regulations, and the potential for high operational costs.
Opportunities can be found in the growing demand for legal services in emerging areas such as cyber law, data protection, and international trade.
Threats may include intense competition from established law firms and the increasing availability of online legal service platforms.
Competitor analysis in the legal consultancy sector indicates a competitive landscape.
Direct competitors include other legal consultancies, full-service law firms, and online legal service providers.
These competitors vie for clients by offering a range of services, expertise, and pricing models.
Potential competitive advantages for a legal consultancy could be specialized knowledge in niche legal areas, flexible and client-focused service delivery, and a strong track record of successful case outcomes.
Understanding the strengths and weaknesses of competitors is crucial for carving out a unique position in the market and for client acquisition and retention.
Our legal consultancy's competitive advantages lie in our personalized approach to client service and our commitment to staying at the forefront of legal innovation.
We offer tailored legal advice that addresses the specific needs of each client, whether they are navigating complex regulatory environments or seeking to protect their intellectual property.
Our dedication to continuous learning ensures that we are equipped to handle the latest legal challenges, providing our clients with cutting-edge solutions.
Moreover, our emphasis on building long-term client relationships is based on trust, transparency, and integrity, setting us apart in a competitive industry.
You can also read our articles about: - how to offer legal consulting services: a complete guide - the customer segments of a legal consulting services - the competition study for a legal consulting services
Development plan.
Our three-year development plan for the legal consultancy firm is designed to establish a strong foundation and expand our services.
In the first year, we will concentrate on building a robust client base by offering expert legal advice and personalized services. We will also invest in building our reputation for excellence and reliability.
The second year will focus on expanding our areas of expertise and introducing additional services such as online legal consultations and workshops for businesses on legal compliance.
In the third year, we aim to form strategic partnerships with other professional service providers and explore opportunities for mergers or acquisitions to broaden our market reach.
Throughout this period, we will remain dedicated to upholding the highest standards of legal practice, client confidentiality, and adapting to the evolving legal landscape to serve our clients effectively.
The Business Model Canvas for our legal consultancy targets individuals and businesses in need of legal advice, representation, and compliance services.
Our value proposition is delivering expert legal solutions, personalized client care, and proactive risk management.
We offer our services through direct consultations, digital platforms, and client workshops, utilizing our key resources such as our legal expertise and professional network.
Key activities include legal research, client consultations, and continuous professional development.
Our revenue streams are derived from billable hours, retainer agreements, and flat-fee services, while our costs are primarily associated with professional staff, office operations, and marketing initiatives.
Find a complete and editable real Business Model Canvas in our business plan template .
Our marketing strategy is centered on building a strong brand reputation and demonstrating our legal expertise.
We aim to engage our target audience through educational content on legal topics, free initial consultations, and client testimonials.
We will leverage online platforms, including our website and social media, to share valuable insights and case studies that showcase our success.
Networking events and partnerships with business associations will also play a crucial role in our strategy to gain referrals and build professional credibility.
Finally, we will monitor client satisfaction and feedback to continuously improve our services and client experience.
The risk policy for our legal consultancy is focused on mitigating risks associated with legal practice, client data security, and professional liability.
We adhere to strict ethical standards and legal regulations, ensuring all client information is handled with the utmost confidentiality and security.
Regular training and audits are conducted to maintain compliance with the latest legal developments and to prevent any conflicts of interest.
We also maintain a comprehensive professional indemnity insurance policy to protect against potential legal claims.
Our priority is to provide reliable legal services while safeguarding our clients' interests and our firm's reputation.
We are committed to establishing a legal consultancy that addresses the complex legal needs of our clients with precision and care.
With our focus on expertise, client service, and adaptability, we are confident in our ability to thrive in the competitive legal services market.
We are enthusiastic about the opportunity to support our clients' success and to grow a sustainable and respected legal practice.
We are prepared to make the necessary adjustments to navigate challenges and seize opportunities, looking forward to a prosperous future for our legal consultancy.
You can also read our articles about: - the Business Model Canvas of a legal consulting services - the marketing strategy for a legal consulting services
Of course, the text presented below is far from sufficient to serve as a solid and credible financial analysis for a bank or potential investor. They expect specific numbers, financial statements, and charts demonstrating the profitability of your project.
All these elements are available in our business plan template for a legal consultant and our financial plan for a legal consultant .
Initial expenses for our legal consultancy include setting up a professional office environment, investing in legal research databases and software, obtaining necessary licenses and insurance, developing a comprehensive website, and engaging in targeted marketing strategies to establish our brand within the legal services market.
Our revenue assumptions are based on a thorough analysis of the local demand for legal services, taking into account the increasing need for specialized legal advice in areas such as intellectual property, business law, and compliance.
We anticipate a steady growth in client acquisition, starting with a conservative client base and expanding as our reputation for expert legal consultation solidifies.
The projected income statement reflects expected revenues from our legal consulting fees, costs of services (research materials, office supplies, subcontracted expertise), and operating expenses (office lease, marketing, salaries, etc.).
This results in a forecasted net profit that is essential for assessing the long-term viability of our legal consultancy.
The projected balance sheet provides a snapshot of our consultancy's financial standing, including assets such as office equipment, legal libraries, and liabilities like business loans and accounts payable.
It demonstrates the overall financial health of our legal consultancy at the end of each fiscal period.
Our projected cash flow statement details the inflows and outflows of cash, enabling us to predict our financial needs. This is crucial for maintaining solvency and ensuring smooth operational management.
The projected financing plan outlines the specific sources of funding we intend to utilize to cover our initial costs and support growth.
The working capital requirement for our legal consultancy will be diligently managed to maintain sufficient liquidity for day-to-day operations, such as paying for office expenses, subscription services, and employee wages.
The break-even analysis for our consultancy will determine the volume of billable hours required to cover all our costs, including startup investments, and begin generating profits.
It will signal the point at which our business becomes financially sustainable.
Key performance indicators we will monitor include the average revenue per client, the ratio of billable hours to non-billable hours to gauge efficiency, and the client retention rate to measure our success in maintaining long-term relationships.
These metrics will assist us in evaluating the financial performance and overall success of our legal consultancy.
If you want to know more about the financial analysis of this type of activity, please read our article about the financial plan for a legal consulting services .
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Use our template to make an investment-worthy business plan.
Updated December 8, 2023 Written by Sara Hostelley | Reviewed by Brooke Davis
A business plan is a document outlining a company’s operations, strategies, goals, and objectives. It’s crucial to guide you through each stage of starting and growing your business.
What is a business plan, why is a business plan essential, components of a business plan, how to write a business plan, business plan sample.
Below, you can find free business plan templates for specific business types. You can also find more in-depth information on writing a plan for your business, whether it’s a food truck, restaurant, real estate business, or another entity:
Create a detailed plan that lays out the details of how your business will achieve it's objectives.
Create a simplified version of a traditional business plan.
Create a Non-Profit Business Plan and learn how to write one.
Create a Daycare Business Plan and learn how to write one.
Create a Restaurant Business Plan and learn how to write one.
Create a Real Estate Business Plan and learn how to write one.
Create a Food Truck Business Plan and learn how to write one.
A business plan is a document detailing how a business, whether it’s a new or existing company, will achieve its goals and objectives. It guides you through every step of starting and running a company.
A business plan can be the foundation of your business, serving as a written roadmap that covers all aspects of how to structure, run, and grow your business. You can also refer back to it as your business progresses to track its growth and success.
In addition to being a helpful document internally, a business plan is also vital for a company to communicate its success to external parties that may influence its future success.
Consider some of the main reasons why large and small business owners alike use business plans:
A business plan sets specific, measurable, and time-bound goals. Having these goals helps you track progress, evaluate performance, and adjust as necessary.
By laying out goals, you have a clear and attainable plan of action with the ability to see and monitor your progress.
A business plan can help you think objectively about your business’s key elements and inform your decision-making as you move forward.
A detailed plan can provide a semblance of control over a potentially cumbersome process. Formulating a plan can improve your ability to make choices and decisions for yourself and the business. This approach is much better than suddenly making a critical decision without time to evaluate or haphazardly letting others decide for you.
An accurate business plan is essential whether or not you need to secure a business loan. Investors and lenders often require a business plan before they commit capital. A solid plan demonstrates your commitment, viability, and potential return on investment.
Create a business plan that grabs the attention of potential investors and provides them with enough structure and confidence that they will move forward and grant funding and support to your business.
You can use your business plan to highlight how the proposed business will be successful and profitable.
A business plan includes a strengths, weaknesses, opportunities, and threats (SWOT) analysis that helps identify potential risks and challenges. It is essential to allocate resources and demonstrate monthly profit or loss. By recognizing these elements early, you can develop strategies to mitigate or address them.
Market research within the plan helps you better understand your target audience, competition, and industry trends. This knowledge is crucial for making informed business decisions.
By learning about your competition, you can help make your goods or services stand out and help validate your business idea.
You should update a business plan as you go, altering your goals as necessary and being mindful of any changes of direction in your business.
A typical business plan includes the following sections:
Our business plan template includes all of the above, so you won’t have to worry about missing out on essential sections.
An executive summary is the first section of a traditional business plan, serving as the first impression of your business. Please give a brief overview of your company, including its mission, key goals, and a snapshot of your financial projections.
You can skip this step if you’re writing a lean business plan for a startup. Instead, replace it with a few sentences outlining the problem your startup aims to solve and the solution you will provide.
Market research indicates there are a growing number of dog owners in Tallahassee who want to train their animals. Consumer surveys indicate that most consumers don’t have the time or resources to train their animals themselves.
Consumers have also expressed a desire for combined dog walking and training services to help discipline their animals.
Pawsitive Strides Canine Coaching & Walks provides a convenient service for customers with furry friends and disposable incomes.
A professional business plan will include a statement about your company’s team and management.
Describe your startup’s legal structure. After that, you can insert a chart to show the hierarchical structure of your company. Show and name your C-suite executives, management team, and key employees. Include short biographies and links to their resumes and LinkedIn profiles to give the reader a complete picture of your staff’s qualifications.
If you have a smaller staff, you can highlight the founder and CEO and your staff members who perform the services or create your business’s products.
Jamie Clayton, Founder and CEO
Pawsitive Strides Canine Coaching & Walks’s dog walkers and trainers
Your business plan must also thoroughly analyze your target market and customer base. The goal here is to show that you understand your market and target audience and that there is a viable market for your business.
Pawsitive Strides Canine Coaching & Walks’s ideal customer is a dog owner between the ages of 25 and 65 with a high disposable income. They’re ideally a working professional or have recently retired from the workplace. They love their dog (or dogs) and want them to be well-behaved and have an outlet for all their energy.
Market research shows that Pawsitive Strides Canine Coaching & Walks has ample opportunities in the Tallahassee area:
Describe the products and services you offer. Pinpoint the value they provide to current and future customers and share your plans for research and development.
The main goal of this section is to convince the reader and yourself that your business is viable and that you have enough resources, time, and energy to achieve your goals.
Pawsitive Strides Canine Coaching & Walks isn’t an ordinary dog walking service. When a customer signs up for our monthly subscription plan, we have one of our certified dog walkers go to their house 12 times a month on a schedule that works for them.
Our dog walker takes their dog on a 30-minute walk and corrects their behavior. Their dog learns how to walk on a leash calmly and be around cars and people. Not only does the dog get some exercise and fresh air, but they also learn discipline, meaning the customer doesn’t have to worry about training their dog in this sense.
Discuss the brand vision you want to cultivate, the metrics you’ll track, and the channels you’ll use to reach your target audience. Outlining how you plan to collect and retain customers will help you experience growth in the long term.
Pawsitive Strides Canine Coaching & Walks will focus on social media and direct mail marketing as its two main forms of advertising. We’ll track customer referrals to determine how many current customers are satisfied with our services.
On our social media platforms, including Instagram and Facebook, we’ll track our audience growth rate, bounce rate, and click-through rate.
Organizations use SWOT analyses to determine how closely a business will adhere to its growth trajectories. This analysis involves looking at a company’s SWOTs, which are:
Opportunities
Your business plan needs to include a thorough operations plan. This section reveals your manufacturing, fulfillment, managing, staffing, hiring strategies, and all the other processes you go through when running your business daily.
Jamie Clayton will oversee the hiring of all employees, and the team lead will train all employees for at least one month to ensure they have the knowledge necessary to deal with animals of all temperaments.
The team lead will also organize the dog walking schedule to ensure all team members have enough time to arrive at customers’ houses and complete the dog walking/training sessions thoroughly.
Create financial projections, including income statements, balance sheets, and cash flow statements for the first few years of operation. If you need funding, specify the amount and how you plan to use it.
Income Statement for the Year Ended December 31, 2023
If you’re seeking funding or investment for your business, explain the amount you need and how you intend to use it. Be transparent about the terms you’re offering to investors or lenders.
Pawsitive Strides Canine Coaching & Walks has already hired a team to serve our existing customers. Once we scale to $500,000 in annual revenue over the next two years and at a 10% profit margin, our primary ongoing annual expenses (not including taxes) will total $350,000.
While already profitable, we are requesting $200,000 in the form of a business loan to buy two additional company vehicles. These vehicles will improve our employees’ ability to get to customers’ homes, and the remaining money will go toward maintaining current company vehicles.
Include relevant documents, such as resumes of key team members, legal agreements, market research data, product design mock-ups, and your business’s legal structure documents.
Remember that each business plan is unique, so tailor your content to your venture and audience. Your business plan should effectively communicate your vision, strategy, and financial viability to potential investors, partners, and stakeholders.
Combine the appendix with a table of contents and footnotes section so you can reference it throughout your document.
You can download a free business plan template below in PDF or Word format:
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The document above is a sample. Please note that the language you see here may change depending on your answers to the document questionnaire.
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Choosing the right legal structure is a necessary part of running a business. Whether you're just starting out or your business is growing, it's crucial to understand the options.
Your business’s legal structure has many ramifications. It can determine how much liability your company faces during lawsuits. It can put up a barrier between your personal and business taxes – or ensure this barrier doesn’t exist. It can also determine how often your board of directors must file paperwork – or if you even need a board. [Related article: What to Do if Your Business Gets Sued ]
We’ll explore business legal structures and how to choose the right structure for your organization.
A business legal structure, also known as a business entity, is a government classification that regulates certain aspects of your business. On a federal level, your business legal structure determines your tax burden. On a state level, it can have liability ramifications.
Choosing the right business structure from the start is among the most crucial decisions you can make. Here are some factors to consider:
The most common business entity types are sole proprietorships, partnerships, limited liability companies, corporations and cooperatives. Here’s more about each type of legal structure.
A sole proprietorship is the simplest business entity. When you set up a sole proprietorship , one person is responsible for all a company’s profits and debts.
“If you want to be your own boss and run a business from home without a physical storefront, a sole proprietorship allows you to be in complete control,” said Deborah Sweeney, vice president and general manager of business acquisitions at Deluxe Corp. “This entity does not offer the separation or protection of personal and professional assets, which could prove to become an issue later on as your business grows and more aspects hold you liable.”
Proprietorship costs vary by market. Generally, early expenses will include state and federal fees, taxes, business equipment leases , office space, banking fees, and any professional services your business contracts. Some examples of these businesses are freelance writers, tutors, bookkeepers , cleaning service providers and babysitters.
A sole proprietorship business structure has several advantages.
The sole proprietorship is also one of the most common small business legal structures. Many famous companies started as sole proprietorships and eventually grew into multimillion-dollar businesses. These are a few examples:
A partnership is owned by two or more individuals. There are two types: a general partnership, where all is shared equally, and a limited partnership, where only one partner has control of operations and the other person (or persons) contributes to and receives part of the profits. Partnerships can operate as sole proprietorships, where there’s no separation between the partners and the business, or limited liability partnerships (LLPs), depending on the entity’s funding and liability structure.
“This entity is ideal for anyone who wants to go into business with a family member, friend or business partner – like running a restaurant or agency together,” Sweeney said. “A partnership allows the partners to share profits and losses and make decisions together within the business structure. Remember that you will be held liable for the decisions made as well as those actions made by your business partner.”
General partnership costs vary, but this structure is more expensive than a sole proprietorship because an attorney should review your partnership agreement. The attorney’s experience and location can affect the cost.
A business partnership agreement must be a win-win for both sides to succeed. Google is an excellent example of this. In 1995, co-founders Larry Page and Sergey Brin created a small search engine and turned it into the leading global search engine. The co-founders met at Stanford University while pursuing their doctorates and later left to develop a beta version of their search engine. Soon after, they raised $1 million in funding from investors, and Google began receiving thousands of visitors a day. Having a combined ownership of 11.4% of Google provides them with a total net worth of nearly $226.4 billion.
Business partnerships have many advantages.
Partnerships are one of the most common business structures. These are some examples of successful partnerships:
A limited liability company (LLC) is a hybrid structure that allows owners, partners or shareholders to limit their personal liabilities while enjoying a partnership’s tax and flexibility benefits. Under an LLC, members are shielded from personal liability for the business’s debts if it can’t be proven that they acted in a negligent or wrongful manner that results in injury to another in carrying out the activities of the business.
“Limited liability companies were created to provide business owners with the liability protection that corporations enjoy while allowing earnings and losses to pass through to the owners as income on their personal tax returns,” said Brian Cairns, CEO of ProStrategix Consulting. “LLCs can have one or more members, and profits and losses do not have to be divided equally among members.”
According to Wolters Kluwer , the cost of forming an LLC comprises the state filing fee and can vary depending on your state. For example, if you file an LLC in New York, you must pay a $200 filing fee, a $9 biennial fee, and file a biennial statement with the New York Department of State .
Although small businesses can be LLCs, some large businesses choose this legal structure. The structure is typical among accounting, tax, and law firms, but other types of companies also file as LLCs. One example of an LLC is Anheuser-Busch, one of the leaders in the U.S. beer industry. Headquartered in St. Louis, Anheuser-Busch is a wholly owned subsidiary of Anheuser-Busch InBev, a multinational brewing company based in Leuven, Belgium.
Here some other well-known examples of LLCs:
The law regards a corporation as separate from its owners, with legal rights independent of its owners. It can sue, be sued, own and sell property, and sell the rights of ownership in the form of stocks. Corporation filing fees vary by state and fee category.
There are several types of corporations, including C corporations , S corporations, B corporations, closed corporations, and nonprofit corporations.
Corporations enjoy several advantages.
This structure is ideal for businesses that are further along in their growth, rather than a startup based in a living room. For example, if you’ve started a shoe company and have already named your business, appointed directors and raised capital through shareholders, the next step is to become incorporated. You’re essentially conducting business at a riskier, yet more lucrative, rate. Additionally, your business could file as an S corporation for the tax benefits. Once your business grows to a certain level, it’s likely in your best interest to incorporate it.
These are some popular examples of corporations:
Learn more about how to become a corporation .
A cooperative (co-op) is owned by the same people it serves. Its offerings benefit the company’s members, also called user-owners, who vote on the organization’s mission and direction and share profits.
Cooperatives offer a couple main advantages.
Forming a cooperative is complex and requires you to choose a business name that indicates whether the co-op is a corporation (e.g., Inc. or Ltd.). The filing fee associated with a co-op agreement varies by state.
An example of a co-op is CHS Inc., a Fortune 100 business owned by U.S. agricultural cooperatives. As the nation’s leading agribusiness cooperative, CHS reported a net income of $422.4 million for fiscal year 2020. These are some other notable examples of co-ops:
For new businesses that could fall into two or more of these categories, it’s not always easy to decide which structure to choose. Consider your startup’s financial needs, risk and ability to grow. It can be challenging to switch your legal structure after registering your business, so give it careful analysis in the early stages of forming your business.
Here are some crucial factors to consider as you choose your business’s legal structure. You should also consult a CPA for advice.
Where is your company headed, and which type of legal structure allows for the growth you envision? Turn to your business plan to review your goals and see which structure best aligns with those objectives. Your entity should support the possibility for growth and change, not hold it back from its potential. [Learn how to write a business plan with this template .]
When it comes to startup and operational complexity, nothing is more straightforward than a sole proprietorship. Register your name, start doing business, report the profits and pay taxes on it as personal income. However, it can be difficult to procure outside funding. Partnerships, on the other hand, require a signed agreement to define the roles and percentages of profits. Corporations and LLCs have various reporting requirements with state governments and the federal government.
A corporation carries the least amount of personal liability since the law holds that it is its own entity. This means creditors and customers can sue the corporation, but they can’t gain access to any personal assets of the officers or shareholders. An LLC offers the same protection but with the tax benefits of a sole proprietorship. Partnerships share the liability between the partners as defined by their partnership agreement.
An owner of an LLC pays taxes just as a sole proprietor does: All profit is considered personal income and taxed accordingly at the end of the year.
“As a small business owner, you want to avoid double taxation in the early stages,” said Jennifer Friedman, principal at Rivetr. “The LLC structure prevents that and makes sure you’re not taxed as a company, but as an individual.”
Individuals in a partnership also claim their share of the profits as personal income. Your accountant may suggest quarterly or biannual advance payments to minimize the effect on your return.
A corporation files its own tax returns each year, paying taxes on profits after expenses, including payroll. If you pay yourself from the corporation, you will pay personal taxes, such as those for Social Security and Medicare, on your personal return.
If you want sole or primary control of the business and its activities, a sole proprietorship or an LLC might be the best choice. You can negotiate such control in a partnership agreement as well.
A corporation is constructed to have a board of directors that makes the major decisions that guide the company. A single person can control a corporation, especially at its inception, but as it grows, so does the need to operate it as a board-directed entity. Even for a small corporation, the rules intended for larger organizations – such as keeping notes of every major decision that affects the company – still apply.
If you need to obtain outside funding from an investor, venture capitalist or bank, you may be better off establishing a corporation. Corporations have an easier time obtaining outside funding than sole proprietorships.
Corporations can sell shares of stock and secure additional funding for growth, while sole proprietors can obtain funds only through their personal accounts, using their personal credit or taking on partners. An LLC can face similar struggles, although, as its own entity, it’s not always necessary for the owner to use their personal credit or assets.
In addition to legally registering your business entity, you may need specific licenses and permits to operate. Depending on the type of business and its activities, it may need to be licensed at the local, state and federal levels.
“States have different requirements for different business structures,” Friedman said. “Depending on where you set up, there could be different requirements at the municipal level as well. As you choose your structure, understand the state and industry you’re in. It’s not ‘one size fits all,’ and businesses may not be aware of what’s applicable to them.”
The structures discussed here apply only to for-profit businesses. If you’ve done your research and you’re still unsure which business structure is right for you, Friedman advises speaking with a specialist in business law.
Max Freedman and Matt D’Angelo contributed to the writing and reporting in this article. Source interviews were conducted for a previous version of this article.
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The logistics of how lateral partners should sell themselves.
Ed. note: This is the latest installment in a series of posts Lateral Link’s team of expert contributors. Michael Allen is Managing Principal at Lateral Link, focusing exclusively on partner placements with Am Law 200 clients and placements for in-house attorneys.
A business plan is one of the most important tools to explain your practice, relationships, and strategy to another law firm. You should put together a business plan before even pursuing opportunities to preemptively answer questions that you anticipate encountering throughout the lateral placement process.
Why are business plans necessary in conjunction with their shorter brethren, LPQ’s (Lateral Partner Questionnaires), which deals almost exclusively with historical and projected business generations, conflicts, and key relationships? The answer is simply, the LPQ is your one-sheet resume, with just enough details to diligence a conversation on a lateral partner. The business plan on the other hand, is your opportunity to market your practice and walk the firm through your strategic process to achieving your goals.
There are a multitude of guidelines to adhere to when composing a business plan, but here are the six of the most crucial principles to consider:
1. The Format. There isn’t one set way to compose a business plan, but generally the best business plans we see follow this structure:
Summary: The summary highlights your practice and experience in a neat 100-200 word package, giving the firm an overview of your past achievements, and your expectations for your practice over the next few years. This is the time to brag about yourself, are you Chambers ranked? Did you win a high value or newsworthy case in the last year or two? These are eye-catching details that belong in the summary. The summary is your hook so be judicious about the material you include.
Strategy: Your strategy section should outline your vision for your practice at the firm. This is not the time for ambiguity; if your strategy calls for additional associates to service extra work, include this in your strategy. Context is vital to this section. Your strategy should detail current market trends and forecast future ones to synthesize a strategy that accounts for potential growth or decay in your practice.
Track Record: Your track record is simply a breakdown of clients by year and fee origination. This should be succinct, there is no need to delve into the fine details. A chart that lists your major clients and the revenue generated from them each year is sufficient.
Revenue Projection: This section is perhaps the most difficult and of the most interest to law firms. Completing this section requires straddling a fine line between over and under-projecting. The chart in this section should break down your work by category. For example, Outbound Lit, IP Lit and Inbound Lit, could be three sections under your category heading. Your next column should be projected revenue. If you anticipate an increase or decrease in your historic revenue, be sure to list why, as firms will examine this section carefully. The next column should list the percent of work serviced specifically by you. Your last column should be the amount you personally bill. As long as your projections are reasonable and you justify any projected growth then your business plan will be deemed credible.
Marketing Plan: The marketing plan is your opportunity to demonstrate your long-term plan for growth with the company. This section can easily span several pages and should include a market analysis across all your different specialties. In this section you want to identify trends in the market to anticipate legal demand. You should also list specific corporations and your plan for targeting them to gain their business. Structure matters here. It is easy to meander through two pages of epiphanies before you realize you have incoherent drivel. Outline this section before you write to save yourself an hour of revisions.
2. Identify The Why. Firms are looking for partners for different reasons. While some firms buy books for accretive growth, others have succession planning concerns in mind. Some have platform expansion on their minds or an appetite to build a practice that cross sells nicely with an existing client base. Whatever the reason, firms prioritize certain hires for various reasons. Determine the value you bring to the firm and vice versa. Connect the dots and communicate a strategy. For example, if you are nearing the retirement age, the firm may question your ability to pass down your business to the next generation of partners. If this is the case, your business plan should focus on the long-term viability of your practice and envision a seamless succession plan to help the firm retain the clients after your retirement.
3. Don’t Exaggerate. One of the biggest mistakes a lateral partner can make is to overestimate their potential. Your reputation and credibility are everything. Firms generally peg partner compensation at 33% of their business generation if under a $5mm practice. As the practice grows, there are more costs required to service the practice, and the percentage typically diminishes with scale. Given this formula it can be tempting to overestimate, or become overoptimistic of your chances to retain a client.
Firms run pro formas based on years of historical originations to determine future compensation. Since firms are not privy to every detail of your dealings, they might be unaware that your clients expect their demand to drop significantly—and in turn, diminish your book. If you fail to temper their expectations of future potential drops in earning potential, a disappointing year-end bonus could be the least of your problems.
Similarly, if your inflated estimations are the tipping point of your acceptance, you may find yourself being pushed back onto the market soon after if your business generation is comparatively disappointing to your estimations. You don’t want to start a job with a target on your back.
4. Don’t Understate. While the preceding section may sound unduly ominous, you do not want to underestimate your business potential out of fear of overshooting your true potential. Like any job interview, your goal is to communicate your potential, which means remaining cautiously optimistic while tastefully bombastic, i.e., credible to the decision maker who decides your compensation and role with the firm. Don’t expect firms to give you the benefit of the doubt. In fact, expect them to take a haircut off your numbers and poke holes in your strategy. That said, remain confident without exaggerating.
5 Give Them A Vision. Most AmLaw firms seek to expand their presence or influence around the globe by bringing on profitable partners. It is probably the main priority of a firm chair in his or her strategic plan. Figure out what the firm’s vision is and see how you can contribute and how the firm platform might increase the pie for everyone.
For example, if you have potential business in Mexico City and your current firm does not have a Mexico City office but the prospective firm has a strong Latin American practice, walk the prospective firm through how you plan to cross-sell an international platform to your current client base to service additional business you are leaving on the table. A business plan marries your past performance with your future potential, showing how you plan to continue to grow your practice given new synergies.
6. Address Issues Upfront. If you have something that needs explaining, you should take the opportunity to explain it upfront. Get ahead of the issue and make sure the firm understands what to expect. I am not suggesting that you should highlight your weaknesses, but at least, address issues that you can expect the firm to ask during the conversation. This can save major embarrassment later, and if the backlash is strong enough to push you from the partner ranks, it can be difficult to find another lateral job after that.
Writing a business plan is cumbersome, especially after a long day in the office. Between tailoring the message and the determining the structure, the whole affair can stretch out far longer than anticipated. My fellow recruiters and I at Lateral Link have ample experience to guide you through the process, help craft your motifs and structure your plan effectively. Feel free to reach out to me at [email protected] for more information.
Lateral Link is one of the top-rated international legal recruiting firms. With over 14 offices world-wide, Lateral Link specializes in placing attorneys at the most prestigious law firms and companies in the world. Managed by former practicing attorneys from top law schools, Lateral Link has a tradition of hiring lawyers to execute the lateral leaps of practicing attorneys. Click ::here:: to find out more about us.
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About business plans, business plan faqs, business plan checklist, what is a business plan.
A Business Plan outlines the financial, marketing and operational strategies a business will use to achieve its goals. Business Plans, when starting a business, especially when launching a startup with high growth expectations, can be critical to success.
Essentially, a Business Plan documents what your business is all about and how you’re going to make it grow. With a clear plan in writing, it’s easier to pitch your ideas to potential partners and investors, and to communicate your mission to your customers, clients, employees and leaders.
It does not need to be a laborious task. Using our Business Plan template you can build a professional plan, specific to your state, with minimal effort if you know your business well. You can even customize this Business Plan sample to include details about the company, product, or service, and provide information on the market, forecasts, and financial analyses.
Many entrepreneurs opt to register a separate business entity (such as an LLC, corporation, or nonprofit) after creating a Business Plan. If this sounds like you, Rocket Lawyer can make your next step easy.
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The terms in your document will update based on the information you provide.
CONFIDENTIAL BUSINESS PLAN
This __ day of ____________, ______. | ____________________________________ |
. EXECUTIVE SUMMARY
, (hereinafter "Business") is intended to be formed as a located at , , , poised for rapid growth in the industry. The Business seeks funding to take advantage of a window of opportunity for introducing a new product service , which has the potential to dominate the market.
Business Description. The Business is to be organized as a formed and authorized under the laws of the State of Commonwealth of , and will be led by , who will serve as .
New Product. New Service. The Business has developed a product service which has the following specifications:
The Business has a window of opportunity to introduce its products services and gain a significant piece of the market share.
. BUSINESS SUMMARY
The business is a start-up business, providing clients with .
Industry Overview. The industry in the United States currently generates in annual sales. Annual revenue for the regional market where the business is located is estimated at .
Position in the Industry.
Legal Issues. The promoters have secured the required patents and trademarks for the products services and processes of the business in accordance with the statutory requirements.
. MARKETING SUMMARY
Target Markets. The main target markets for the business include:
- |
- | __________________________________________________ |
It is estimated that there are potential customers within the Business defined trading area that are estimated to spend . To seek the most profitable market segments in the target markets overall, the Business will focus on the following areas within the target market:
Competition. Customer choice of services in this industry is based on
Services. The Business intends to provide exceptional, personalized service, which will be the crucial factor in building and protecting the Business's brand within the community. The Business intends to handle customer concerns and issues with a customer oriented focus with the intent of providing timely resolution and preventing the loss of customers.
. STRATEGY AND IMPLEMENTATION SUMMARY
The Business plans the following tactics as part of sales promotion:
- | Develop a list of businesses in the neighborhood and send brochures by direct mail to the list. |
- | Advertising through press releases to industry publications and local newspapers. |
- | Internet marketing |
- | Direct sales |
- | Posting signage and flyers about the new business on bulletin boards in stores and public places. |
In addition, the Business will also engage in the following marketing campaigns:
- |
- | ______________________________________________________ |
- | Sale of Equity |
- | Public Offering |
- | Strategic Sale/Merger with other similar enterprise |
- | Management Buyout |
- | Liquidate Assets |
. FINANCIAL PLAN
The Funding Request in this Business Plan outlines the major start-up costs associated with this business. Other costs include repair and maintenance, sales and production expenses. Regular monthly expenses are estimated at for paying the employee salaries and other regular business expenses. The Business is expected to generate in the first year, and gross profit is expected to be .
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How to write a business plan.
Unlike what many people might think, a Business Plan is not simply a description of your business. It includes market analysis, marketing strategies, financial goals, funding and liability information, and company structure details.
Even if you are a sole proprietor, it will help you to set concrete goals and plan the future of your business. A Business Plan will also make it easy for the investors you approach to say yes. However, you'll need to do a bit of work before writing to be able to create a comprehensive plan. Below are the steps you need to take to write an effective Business Plan:
1. Identify your business's primary goals
What are your goals for the business within the next five years? This, along with what exactly you're offering as products or services, should be stated at the beginning of your Business Plan. Make it concise and easy to understand even to people who aren't familiar with industry jargon.
2. Provide an executive summary
The executive summary highlights all the information that you will present in the full-length Business Plan. This summary goes beyond the primary goals, but should be no more than two pages. If possible, make it no longer than one page.
3. Draft a business description
Write a description of your business, including information about your general industry, outlook, and current trends and competition within your niche, as well as what needs it fills for potential customers. Your business description shouldn’t be longer than one page unless you are citing specific statistics and research.
4. Develop general marketing strategies
How exactly do you plan on reaching your new customers? If it is a small local company, are you going to put up signage and attend local events? If your business is online, will you pay for ads or hire an online marketing or SEO company? Do you have strategic relationships with already established businesses? A good market analysis might also help you to see the potential weaknesses in your current marketing strategies so that you can set realistic goals. You can make your marketing plan as long as you need it to be. Here, the more detailed you are, the better.
5. Provide an analysis of your market and competition
What will you offer that is better than your competitors? Research your core competition. Analyze what your competitors are doing well and where they are failing. If you can find weaknesses that you can capitalize on, make note of those weaknesses in your Business Plan. Take the time to differentiate yourself in the areas in which you are similar. You should also be able to describe your market in quantifiable terms, like how many potential customers are in the market and what you expect them to spend. Remember that this part of the plan will be of as much interest to potential investors as it is to you.
6. Set out your general development and operation plan
It is important to plan how you will help your business to succeed. Lay out the general tasks and functions that your business engages in on a regular basis. Include the formal organization of the business, responsibilities of administrators and employees, and ongoing development plans. Here’s a tip: you'll get more investor confidence if your key members have a proven track record in running a business or working in the industry.
7. Examine your finances
Your financial analysis should be placed at the very end of your Business Plan. This section lays out your financial bottom line. List your financial assets and liabilities clearly. Be sure to also make it clear what you’re asking investors for, and the projected return investors can expect to receive for their investment.
Putting together the specific figures that you need as well as a clear plan for how the money will be paid back can be quite effective in this section. Because financial information can be quite complicated and confusing, you should consider putting it in chart format. You can create a basic pie chart or graph sheet. If possible, use colors to make your visuals easier to read. You want investors to be able to understand your company’s finances at a glance.
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A SWOT analysis can increase your business awareness and provide a valuable addition to your Business Plan. It’s split into four sections - Strengths, Weaknesses, Opportunities and Threats - with each one detailing the various relevant attributes and downsides to your business and the industry.
This is where you can highlight the qualities of your particular business, whether it’s the skill set, industry knowledge or a specialist resource. Do you have any specific intellectual property rights? Have you secured a retail space with a particular high foot traffic? Think about all the potential advantages of your business compared to your key competitors.
if your business is lacking in a certain area you’ll need to specify how you plan to deal with it, as well as address any weaknesses compared to your competitors.
Opportunities
Make a general case as to why your business will succeed in a certain market, as well as detailing any specific opportunities and the possibility to claim a niche position.
Threats are any external factors that you have no control over and that may detrimentally affect and threaten your business. Try to be frank about any potential reasons your business may not succeed, particularly in light of existing or possible future market conditions.
Remember to detail contingency plans for dealing with such threats. Having in place contingency plans allows a business to plan for an outcome other than what was expected, as a result of any threats. As a result, contingency plans can help solve or alleviate any threats to the business by allowing the business to adjust to different circumstances and outcomes.
Investors like to see that you’ve done the math. Including detailed financial information proves that you have a grasp of the all-important monetary aspects of running a business. Unless you’re setting up a charity or social enterprise, you need to be aiming towards making a healthy profit.
Projections you must include in your proposal are:
A cash flow forecast is one of the most important elements of a financial plan. The amount of capital you require can be determined largely from accurate predictions of cash flow. Even if your profit is high, a lack of readily available money can lead to major problems including insolvency. For example, if you’re waiting for substantial Invoices to be paid, while you may be owed a lot, without cash in the bank, you may not be able to manage your expenses, pay employees, or order new supplies.
The simplest way to forecast cash flow is to list monthly income and expenditure costs, preferably with annual totals. Try to think pragmatically and account for all kinds of variables. For example, you’ll probably need to use more heating over the winter months so your gas and electricity bills will increase. Similarly, if your product is seasonal (like an ice cream stand or snow plowing business) then you’ll need to revise your income for the relevant season.
A Profit and Loss (or P&L) Form indicates how well a business has performed overall. It differs from the cash flow forecast in that it shows how much profit has been made (or the amount of loss sustained) over a specified period (usually a year), but it doesn’t account for actual cash in the bank.
Overall, for this part of your Business Plan you'll need to map out how you plan to finance your business, even if all you have so far are projections. Do you have a business loan? Are you going to pay yourself a salary from the business? How much of the seed money will be from your own savings? Investors will also want to know if you plan to take on additional debt or if other investors are involved.
You'll also want to show how you plan to pay back debt and when you expect to be profitable. After all, the return on investment (ROI) is a key element of any Business plan, showing how much effect an investment will have upon the business.
State a realistic repayment period – it’s better to overstate the time required to avoid disappointment and show that you have taken various scenarios into account. You should also state how exactly your investors will make a profit. Will you repay them with interest? Do they get shares in the company?
An investor will want to know exactly why you need their money and what it will be spent on. You may have an excellent business idea but you’ll have to prove that the funding sought will directly lead to success. Get started on your Business Plan with Rocket Lawyer now!
Our Business Plan builder is suitable for most types of businesses from small to large, including online companies, service providers, nonprofits, side hustles and home-based businesses. Making a Business Plan helps you, and others, see the potential of your business.
A Business Plan is extremely useful for any business seeking accountability or investment. It can serve as a roadmap to help business owners know which steps they need to take and when. It can also show potential investors why your product or service will be successful by setting out clear objectives and a strategy for growing your business. Writing a Business Plan will help you set a realistic timeline for repaying investments while conveying confidence to potential investors.
Remember that a Business Plan is unique to your business and depends on the specifics of your business. Do not hesitate to ask a lawyer for assistance with drafting or reviewing your plan.
Writing a good executive summary for your Business Plan is important because it may be the only thing an investor reads to decide if they even want to bother with reading the rest of your plan. It should be able to grab the reader right away and entice them to want to learn more. Here are a few tips for writing an effective executive summary:
If you do not need to share your Business Plan with others, you may not need an executive summary. However, it is a good exercise for building your elevator pitch for times when you talk about your business with others.
Often small business owners are so excited about their product that they forget to consider their competition. If you are planning on opening a local business, you likely know your competitors. But if you are starting an online business or are in a large city, you'll benefit from some market research.
One way to perform this analysis is to create a side-by-side comparison sheet. Using this type of document, you can compare pricing, product offerings, web presence, user review scores, size of business and market reach, customer profiles and more. If you are starting a restaurant, you could compare menus, pricing, customer loyalty and patron reviews. If it is an online business, you can compare keyword terms, social media presence, subscription pricing models, or customer service responsiveness to find a competitive angle.
You may even benefit from hiring someone to do the research for you since they might be more objective than you. Companies with large budgets may even hire a marketing agency to evaluate the market for them. Regardless of your budget, market research is not a step you'll want to skip in the business planning process.
Like evaluating your market, you also want to make sure you are realistic when it comes to your financial planning . For example, can you really afford to quit your day job and run your new business? Are your sales projections reasonable? Have you planned for issues that may arise?
If you plan to open a cafe, for example, you may need money to take care of unexpected compliance issues surrounding food service. Or, what if your location falls through? Can you afford a more expensive lease? Have you underestimated monthly expenses like water usage or employee salaries? And if business is good, what will you do with the profits?
If you are having trouble creating a realistic budget, you may want to consult with a business accountant. A working budget is needed to help run your business even if you do not plan to ask for funding, so it is important to create a realistic budget.
Sometimes it is hard to complete all the parts of your Business Plan in a single sitting. You may have to look at your business objectively to evaluate whether it makes sense or not. Is the market already saturated? Is there a market at all? Is there a way to test the market? Is there a certain segment of the market more suitable for your product? Do you have the time to run your business properly? Can you realistically afford to meet your objectives? Do you have the right partners? Is it the best time for your product or service to be launched? Are your goals realistic?
If you cannot answer these questions, it may be a good time to reevaluate your business idea and market. Perhaps somehow you are missing the mark, or maybe it just requires some more research. You may also benefit from reading through the Rocket Lawyer legal guides about starting a business . Also, try not to overthink it or avoid making a Business Plan. It is better to have a Business Plan that needs work rather than no plan at all.
A good Business Plan is not fabricated around your pie-in-the-sky dreams for your company to trick investors into buying into your vision. A good plan is a working document that proves you have a product or service that can be viable in the real market. Even if you are not seeking funding, making a functional Business Plan is an excellent tool for proving your business idea is a good one.
Looking at your business like an outsider is difficult for many small business owners. But your investors, unless they are family or friends, are going to look at it objectively to see how they might benefit from investing. This is one of the reasons you need a Business Plan capable of surviving intense scrutiny.
Once you have your Business Plan made, try to look at it as if you were a stranger to your business. Have a few respected colleagues read through it as well and tell them not to be nice, but to find as many weak areas as they can. If you need to keep your business information private, you can ask those reviewing your plan to sign a Non-Disclosure Agreement .
If you find information you need to change, you can easily edit your plan. In fact, a Business Plan is an evolving, working document, so change it as often as your business needs grow and evolve.
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Business plans help you run your business.
A good business plan guides you through each stage of starting and managing your business. You’ll use your business plan as a roadmap for how to structure, run, and grow your new business. It’s a way to think through the key elements of your business.
Business plans can help you get funding or bring on new business partners. Investors want to feel confident they’ll see a return on their investment. Your business plan is the tool you’ll use to convince people that working with you — or investing in your company — is a smart choice.
There’s no right or wrong way to write a business plan. What’s important is that your plan meets your needs.
Most business plans fall into one of two common categories: traditional or lean startup.
Traditional business plans are more common, use a standard structure, and encourage you to go into detail in each section. They tend to require more work upfront and can be dozens of pages long.
Lean startup business plans are less common but still use a standard structure. They focus on summarizing only the most important points of the key elements of your plan. They can take as little as one hour to make and are typically only one page.
You might prefer a traditional business plan format if you’re very detail-oriented, want a comprehensive plan, or plan to request financing from traditional sources.
When you write your business plan, you don’t have to stick to the exact business plan outline. Instead, use the sections that make the most sense for your business and your needs. Traditional business plans use some combination of these nine sections.
Briefly tell your reader what your company is and why it will be successful. Include your mission statement, your product or service, and basic information about your company’s leadership team, employees, and location. You should also include financial information and high-level growth plans if you plan to ask for financing.
Use your company description to provide detailed information about your company. Go into detail about the problems your business solves. Be specific, and list out the consumers, organization, or businesses your company plans to serve.
Explain the competitive advantages that will make your business a success. Are there experts on your team? Have you found the perfect location for your store? Your company description is the place to boast about your strengths.
You'll need a good understanding of your industry outlook and target market. Competitive research will show you what other businesses are doing and what their strengths are. In your market research, look for trends and themes. What do successful competitors do? Why does it work? Can you do it better? Now's the time to answer these questions.
Tell your reader how your company will be structured and who will run it.
Describe the legal structure of your business. State whether you have or intend to incorporate your business as a C or an S corporation, form a general or limited partnership, or if you're a sole proprietor or limited liability company (LLC).
Use an organizational chart to lay out who's in charge of what in your company. Show how each person's unique experience will contribute to the success of your venture. Consider including resumes and CVs of key members of your team.
Describe what you sell or what service you offer. Explain how it benefits your customers and what the product lifecycle looks like. Share your plans for intellectual property, like copyright or patent filings. If you're doing research and development for your service or product, explain it in detail.
There's no single way to approach a marketing strategy. Your strategy should evolve and change to fit your unique needs.
Your goal in this section is to describe how you'll attract and retain customers. You'll also describe how a sale will actually happen. You'll refer to this section later when you make financial projections, so make sure to thoroughly describe your complete marketing and sales strategies.
If you're asking for funding, this is where you'll outline your funding requirements. Your goal is to clearly explain how much funding you’ll need over the next five years and what you'll use it for.
Specify whether you want debt or equity, the terms you'd like applied, and the length of time your request will cover. Give a detailed description of how you'll use your funds. Specify if you need funds to buy equipment or materials, pay salaries, or cover specific bills until revenue increases. Always include a description of your future strategic financial plans, like paying off debt or selling your business.
Supplement your funding request with financial projections. Your goal is to convince the reader that your business is stable and will be a financial success.
If your business is already established, include income statements, balance sheets, and cash flow statements for the last three to five years. If you have other collateral you could put against a loan, make sure to list it now.
Provide a prospective financial outlook for the next five years. Include forecasted income statements, balance sheets, cash flow statements, and capital expenditure budgets. For the first year, be even more specific and use quarterly — or even monthly — projections. Make sure to clearly explain your projections, and match them to your funding requests.
This is a great place to use graphs and charts to tell the financial story of your business.
Use your appendix to provide supporting documents or other materials were specially requested. Common items to include are credit histories, resumes, product pictures, letters of reference, licenses, permits, patents, legal documents, and other contracts.
Before you write your business plan, read the following example business plans written by fictional business owners. Rebecca owns a consulting firm, and Andrew owns a toy company.
You might prefer a lean startup format if you want to explain or start your business quickly, your business is relatively simple, or you plan to regularly change and refine your business plan.
Lean startup formats are charts that use only a handful of elements to describe your company’s value proposition, infrastructure, customers, and finances. They’re useful for visualizing tradeoffs and fundamental facts about your company.
There are different ways to develop a lean startup template. You can search the web to find free templates to build your business plan. We discuss nine components of a model business plan here:
Note the other businesses or services you’ll work with to run your business. Think about suppliers, manufacturers, subcontractors, and similar strategic partners.
List the ways your business will gain a competitive advantage. Highlight things like selling direct to consumers, or using technology to tap into the sharing economy.
List any resource you’ll leverage to create value for your customer. Your most important assets could include staff, capital, or intellectual property. Don’t forget to leverage business resources that might be available to women , veterans , Native Americans , and HUBZone businesses .
Make a clear and compelling statement about the unique value your company brings to the market.
Describe how customers will interact with your business. Is it automated or personal? In person or online? Think through the customer experience from start to finish.
Be specific when you name your target market. Your business won’t be for everybody, so it’s important to have a clear sense of whom your business will serve.
List the most important ways you’ll talk to your customers. Most businesses use a mix of channels and optimize them over time.
Will your company focus on reducing cost or maximizing value? Define your strategy, then list the most significant costs you’ll face pursuing it.
Explain how your company will actually make money. Some examples are direct sales, memberships fees, and selling advertising space. If your company has multiple revenue streams, list them all.
Before you write your business plan, read this example business plan written by a fictional business owner, Andrew, who owns a toy company.
Innovation clinic—significant achievements for 2023-24.
The Innovation Clinic continued its track record of success during the 2023-2024 school year, facing unprecedented demand for our pro bono services as our reputation for providing high caliber transactional and regulatory representation spread. The overwhelming number of assistance requests we received from the University of Chicago, City of Chicago, and even national startup and venture capital communities enabled our students to cherry-pick the most interesting, pedagogically valuable assignments offered to them. Our focus on serving startups, rather than all small- to medium-sized businesses, and our specialization in the needs and considerations that these companies have, which differ substantially from the needs of more traditional small businesses, has proven to be a strong differentiator for the program both in terms of business development and prospective and current student interest, as has our further focus on tackling idiosyncratic, complex regulatory challenges for first-of-their kind startups. We are also beginning to enjoy more long-term relationships with clients who repeatedly engage us for multiple projects over the course of a year or more as their legal needs develop.
This year’s twelve students completed over twenty projects and represented clients in a very broad range of industries: mental health and wellbeing, content creation, medical education, biotech and drug discovery, chemistry, food and beverage, art, personal finance, renewable energy, fintech, consumer products and services, artificial intelligence (“AI”), and others. The matters that the students handled gave them an unparalleled view into the emerging companies and venture capital space, at a level of complexity and agency that most junior lawyers will not experience until several years into their careers.
While the Innovation Clinic’s engagements are highly confidential and cannot be described in detail, a high-level description of a representative sample of projects undertaken by the Innovation Clinic this year includes:
More information regarding other types of transactional projects that we typically take on can be found here .
Thanks to another generous gift from Douglas Clark, ’89, and managing partner of Wilson, Sonsini, Goodrich & Rosati, we were able to operationalize the second Innovation Trek over Spring Break 2024. The Innovation Trek provides University of Chicago Law School students with a rare opportunity to explore the innovation and venture capital ecosystem in its epicenter, Silicon Valley. The program enables participating students to learn from business and legal experts in a variety of different industries and roles within the ecosystem to see how the law and economics principles that students learn about in the classroom play out in the real world, and facilitates meaningful connections between alumni, students, and other speakers who are leaders in their fields. This year, we took twenty-three students (as opposed to twelve during the first Trek) and expanded the offering to include not just Innovation Clinic students but also interested students from our JD/MBA Program and Doctoroff Business Leadership Program. We also enjoyed four jam-packed days in Silicon Valley, expanding the trip from the two and a half days that we spent in the Bay Area during our 2022 Trek.
The substantive sessions of the Trek were varied and impactful, and enabled in no small part thanks to substantial contributions from numerous alumni of the Law School. Students were fortunate to visit Coinbase’s Mountain View headquarters to learn from legal leaders at the company on all things Coinbase, crypto, and in-house, Plug & Play Tech Center’s Sunnyvale location to learn more about its investment thesis and accelerator programming, and Google’s Moonshot Factory, X, where we heard from lawyers at a number of different Alphabet companies about their lives as in-house counsel and the varied roles that in-house lawyers can have. We were also hosted by Wilson, Sonsini, Goodrich & Rosati and Fenwick & West LLP where we held sessions featuring lawyers from those firms, alumni from within and outside of those firms, and non-lawyer industry experts on topics such as artificial intelligence, climate tech and renewables, intellectual property, biotech, investing in Silicon Valley, and growth stage companies, and general advice on career trajectories and strategies. We further held a young alumni roundtable, where our students got to speak with alumni who graduated in the past five years for intimate, candid discussions about life as junior associates. In total, our students heard from more than forty speakers, including over twenty University of Chicago alumni from various divisions.
The Trek didn’t stop with education, though. Throughout the week students also had the opportunity to network with speakers to learn more from them outside the confines of panel presentations and to grow their networks. We had a networking dinner with Kirkland & Ellis, a closing dinner with all Trek participants, and for the first time hosted an event for admitted students, Trek participants, and alumni to come together to share experiences and recruit the next generation of Law School students. Several speakers and students stayed in touch following the Trek, and this resulted not just in meaningful relationships but also in employment for some students who attended.
More information on the purposes of the Trek is available here , the full itinerary is available here , and one student participant’s story describing her reflections on and descriptions of her experience on the Trek is available here .
The Innovation Clinic is grateful to all of its clients for continuing to provide its students with challenging, high-quality legal work, and to the many alumni who engage with us for providing an irreplaceable client pipeline and for sharing their time and energy with our students. Our clients are breaking the mold and bringing innovations to market that will improve the lives of people around the world in numerous ways. We are glad to aid in their success in any way that we can. We look forward to another productive year in 2024-2025!
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The lawyer or lawyers who will make up the firm at the time of launch. The location of the firm and the areas it serves. The general approach the firm takes when representing clients. 3. Market Analysis. A competitive analysis is one of the most compelling components of well-written business plans.
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.
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.
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 ...
1. Executive summary. A business plan for lawyers, like any plan, should start with an executive 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:
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. ... You can also view other legal business plans, or browse the full Bplans library of over 550 sample business plans across numerous ...
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 ...
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.
Call 1-888-858-2546 or email [email protected]. Our sales team is available Monday to Friday from 8 a.m. to 8 p.m. EST. Download our free law firm business plan template. Start your law firm on the right foot with a clear plan that explains where you're going, and how you're getting there.
Follow these tips to quickly develop a working business plan from this sample. 1. Don't worry about finding an exact match. We have over 550 sample business plan templates. So, make sure the plan is a close match, but don't get hung up on the details. Your business is unique and will differ from any example or template you come across.
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.
Write a succinct overview of your company. Here is what it should cover: Mission statement and values. Reiterate your mission statement and core values here. Geographic location and areas served. Identify where your offices are located and the geographic areas that you serve. Legal structure and ownership.
Explore a real-world law firm business plan example and download a free template with this information to start writing your own business plan. ... 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 ...
It should also contain some deeper information about the firm's identity and aspirations. This would include: 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.
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.
Before developing a plan for a lawyer, answer the following: 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 other attorneys you can call upon to fill in practice gaps.
A Sample Law Firm Business Plan Template 1. Industry Overview. The services of lawyers are needed in every part of the united states of America. Statistics has it that the United States of America has about 165,000 law offices and they generate about $180 billion in annual revenue.
A free example of business plan for a legal consulting services. Here, we will provide a concise and illustrative example of a business plan for a specific project. This example aims to provide an overview of the essential components of a business plan. It is important to note that this version is only a summary. As it stands, this business ...
Step 1 - Create an Executive Summary. An executive summary is the first section of a traditional business plan, serving as the first impression of your business. Please give a brief overview of your company, including its mission, key goals, and a snapshot of your financial projections.
If you want sole or primary control of the business and its activities, a sole proprietorship or an LLC might be the best choice. You can negotiate such control in a partnership agreement as well ...
The business plan on the other hand, is your opportunity to market your practice and walk the firm through your strategic process to achieving your goals. There are a multitude of guidelines to ...
A Business Plan outlines the financial, marketing and operational strategies a business will use to achieve its goals. Business Plans, when starting a business, especially when launching a startup with high growth expectations, can be critical to success. Essentially, a Business Plan documents what your business is all about and how you're ...
A good business plan guides you through each stage of starting and managing your business. You'll use your business plan as a roadmap for how to structure, run, and grow your new business. It's a way to think through the key elements of your business. Business plans can help you get funding or bring on new business partners.
General The Innovation Clinic continued its track record of success during the 2023-2024 school year, facing unprecedented demand for our pro bono services as our reputation for providing high caliber transactional and regulatory representation spread. The overwhelming number of assistance requests we received from the University of Chicago, City of Chicago, and even national startup and ...