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Drafting Business Plans For Law Firms
Author : Ruth Bell
Submitted : 2011-11-14 Word Count : 575 Popularity: Not Rated
Tags: Attorney database, Legal advice online, Attorney directory, Solicitor, Solicitors, Suit
Law firms like any other type of businesses ought to be run through the use of business plans in order to be able to meet their goals and objectives. Therefore, in order to sustain the longevity of law firms, it is necessary to draft or create solid business plans. The sole purpose of a business plan is to be able to outline an organization’s goals and objectives. The business plan outlines other factors such as price structures, fixed and variable costs as well as expected revenues. In the case of law firms, the business plan ought to specify whether the organization needs to charge clients on a fixed basis or requesting retainers from clients for services rendered by the firm’s advocate.
Most entrepreneurs always view a business plan as a static document. In the case of law firms, depending on the expansion and growth rate of the law firm in terms of manpower and financial flow, the business plan can be adjusted based on these aspects. Manpower indicates the number of lawyers that are hired to represent clients and financial flow indicates an organization’s financial surplus level. In understanding the use of a business plan, entrepreneurs more so those establishing law firms, ought to understand various aspects related to a business plan. These aspects and roles of a business plan are clearly outlined below.
A business plan ought to outline the firm’s marketing strategy. Through this aspect, the firm can decide to either advertise their services through the word of mouth or through print media. In most cases, law firms are owned by individuals or are formed on a partnership basis. Therefore, a business plan ought to specify the firm’s ownership and business form. The business plan clearly outlines whether the firm has been set up as a limited or general partnership.
It is advisable, therefore, to seek the services of an advocate who specializes in company law to be able guide you and your fellow partners on the various aspects relating to the form ownership. This is because depending on where various law firms are set up, different states have their own set laws relating to business formation. These laws, therefore, clearly specify or outline the difference between Limited Liability Company, limited partnership and limited liability partnership.
Drafting a business plan helps the entrepreneur to be able to identify the firm’s expenses. Most law firms that do not have a solid business plan end up in situation where their expenses surpass their revenues more so at the initial stages of the business. The most notable expenses associated with the formation of law firms include insurance fees, rent charges, registration fees, hiring of advocates to represent clients and to offer legal advice services and website development fees. All these expenses should be clearly outlined in the business plan to avoid a scenario where the business experiences a financial stand still.
Lastly, a business plan should not only outline the firm’s long term goals, but it should also outline its target clients and competing law firms. The business plan should identify how their target clients are able to sustain their legal needs and prices charged by other legal firms. In the long run, business plans play an integral role in the success of law firms and each and every law firm ought to draft a business plan for long term and short term goals in equal measure.
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Rachel Delaney is the author of this article on Find a lawyer. Find more information, about Lawyers database here