Write and Implement a Law Office Business Plan
Published on June 11, 2020 Starting a Practice

Write and Implement a Law Office Business Plan
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The purpose of business planning is to establish a common focus for action. This is done by:
- Clarifying goals
- Establishing measures of results
- Assessing resource distribution needs
- Unifying the firm to commit to a course of action
Following are the most important steps to take in preparing to write your business plan:
Get the Process Organized
- Why do it?
- What is it?
- Who will do what?
- Evaluation of the planning process
Evaluate Your Competitiveness
- Who are our existing clients?
- What is our fee history?
- Are we using outside services?
- Are we recognizing opportunities for cross-selling?
- How much do we really collect?
- What are we capable of?
- What are our internal resources?
- Who are our competitors?
- What is our market?
- Why are they our competitors (experience, price, speed, etc.)?
- How do they affect our clients?
- What do we do for their clients?
- What is our technology situation?
- What type of systems do we use?
- What can we use our systems for?
- Do we need to upgrade?
- Are there any trends developing which may affect our clients – changing laws, economy, etc.
- Are there any developments affecting current structure of our firm
Internal Strengths and Weaknesses
Consider the following:
- What is our professional reputation?
- How do we deliver legal services?
- What kind of staff do we want in our firm and how do we train them?
- What type of office environment (physical location, appearance, etc.) do we want?
- What is our culture?
- How do we manage our practice?
- Who are the firm leaders and why?
- What kind of support services do we have?
- What are the firm’s finances?
Reassess Your Strategy
- Define primary mission
- Set goals
- Review your strategy
Evaluate Your Resources Objectively
- Office organization and structure
- What kind of leadership and management skills do we have?
- What kind of tools are we using – i.e. technology, support systems, standardized forms, etc.?
- How do we identify the skills we need to recruit, how do we allocate the work among attorneys, paralegals, etc.?
- How are we doing financially, do we collect everything we bill, do we need additional capital?
Business Projection
- What kind of revenue and volume of business do we project – to work at capacity?
- What is our payroll expense now and what will it be in the future?
- How much space do we need?
- What type of technology do we need?
- What kind of transactional expenses are we expecting?
- What are our projected expenses relating to office relocation, computer conversion, etc.?
- What is our capital projection (capital sources less capital needs = net income)?
Prepare Your Financial Plan
- Balance Sheet
- Income Statement
- Cash Flow Statement
- Policies for financial management
- Financing plan
Prepare Your Business Plan Document
- Executive Summary
- Business and Revenue Forecast
- Professional Staffing Plan
- Support Staff Requirements
- Technology Forecast
- Space Requirements
- Organization and Management Plan
- Financial Plan – Operations and Capital
How to Successfully Implement “The Plan”
- Establish a common will and consensus to the plan
- Keep focused on the goals
- Recognize established leadership of the organization
- Make the commitment to proper resource allocation
- Expect to give and receive accountability for results
- Reward motivation
- Overcome inertia and avoid complacency
- Measure and evaluate results and – if necessary, readjust the plan to coincide with new developments
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Law Practice Management Committee
The Law Practice Management committee is comprised of experienced lawyers from across Texas who have been appointed by the State Bar President.