law firm startup business plan

Law Firm Business Plan Template

Written by Dave Lavinsky

Law Firm Plan

Over the past 20+ years, we have helped over 1,000 lawyers to create business plans to start and grow their law firms. On this page, we will first give you some background information with regards to the importance of business planning. We will then go through a law firm business plan template step-by-step so you can create your plan today.

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What is a Law Firm Business Plan?

A business plan provides a snapshot of your law firm as it stands today, and lays out your growth plan for the next five years. It explains your business goals and your strategy for reaching them. It also includes market research to support your plans.

Why You Need a Business Plan for a Law Firm

If you’re looking to start a law firm, or grow your existing law firm, you need a business plan. A business plan will help you raise funding, if needed, and plan out the growth of your law firm in order to improve your chances of success. Your law firm plan is a living document that should be updated annually as your company grows and changes.

Sources of Funding for Law Firms

With regards to funding, the main sources of funding for a law firm are personal savings, credit cards and bank loans. With regards to bank loans, banks will want to review your business plan and gain confidence that you will be able to repay your loan and interest. To acquire this confidence, the loan officer will not only want to confirm that your financials are reasonable, but they will also want to see a professional plan. Such a plan will give them the confidence that you can successfully and professionally operate a business.

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How to write a business plan for a law firm.

If you want to start a law firm or expand your current one, you need a business plan. Below are links to each section of your law firm plan template:

Executive Summary

Your executive summary provides an introduction to your business plan, but it is normally the last section you write because it provides a summary of each key section of your plan.

The goal of your Executive Summary is to quickly engage the reader. Explain to them the type of law firm you are operating and the status. For example, are you a startup, do you have a law firm that you would like to grow, or are you operating law firms in multiple cities?

Next, provide an overview of each of the subsequent sections of your plan. For example, give a brief overview of the law firm industry. Discuss the type of law firm you are operating. Detail your direct competitors. Give an overview of your target customers. Provide a snapshot of your marketing plan. Identify the key members of your team. And offer an overview of your financial plan.  

Company Analysis

In your company analysis, you will detail the type of law firm you are operating.

For example, you might operate one of the following types of law firms:

• Commercial Law : this type of law firm focuses on financial matters such as merger and acquisition, raising capital, IPOs, etc.
• Criminal, Civil Negligence, and Personal Injury Law: this type of business focuses on accidents, malpractice, and criminal defense.
• Real Estate Law: this type of practice deals with property transactions and property use.
• Labor Law: this type of firm handles everything related to employment, from pensions/benefits, to contract negotiation.

In addition to explaining the type of law firm you will operate, the Company Analysis section of your business plan needs to provide background on the business.

Include answers to question such as:

• When and why did you start the business?
• What milestones have you achieved to date? Milestones could include the number of clients served, number of cases won, etc.
• Your legal structure. Are you incorporated as an S-Corp? An LLC? A sole proprietorship? Explain your legal structure here.

Industry Analysis

In your industry analysis, you need to provide an overview of the law firm industry.

While this may seem unnecessary, it serves multiple purposes.

First, researching the law firm industry educates you. It helps you understand the market in which you are operating.

Secondly, market research can improve your strategy, particularly if your research identifies market trends.

The third reason for market research is to prove to readers that you are an expert in your industry. By conducting the research and presenting it in your plan, you achieve just that.

The following questions should be answered in the industry analysis section of your law firm plan:

• How big is the law firm industry (in dollars)?
• Is the market declining or increasing?
• Who are the key competitors in the market?
• Who are the key suppliers in the market?
• What trends are affecting the industry?
• What is the industry’s growth forecast over the next 5 – 10 years?
• What is the relevant market size? That is, how big is the potential market for your law firm? You can extrapolate such a figure by assessing the size of the market in the entire country and then applying that figure to your local population.

Customer Analysis

The customer analysis section of your law firm plan must detail the customers you serve and/or expect to serve.

The following are examples of customer segments: businesses, households, and government organizations.

As you can imagine, the customer segment(s) you choose will have a great impact on the type of law firm you operate. Clearly, households would respond to different marketing promotions than nonprofit organizations, for example.

Try to break out your target customers in terms of their demographic and psychographic profiles. With regards to demographics, include a discussion of the ages, genders, locations and income levels of the customers you seek to serve. Because most law firms primarily serve customers living in their same city or town, such demographic information is easy to find on government websites.

Psychographic profiles explain the wants and needs of your target customers. The more you can understand and define these needs, the better you will do in attracting and retaining your customers.

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Competitive Analysis

Your competitive analysis should identify the indirect and direct competitors your business faces and then focus on the latter.

Direct competitors are other law firms.

Indirect competitors are other options that customers have to purchase from that aren’t direct competitors. This includes accounting firms or human resources companies. You need to mention such competition as well.

With regards to direct competition, you want to describe the other law firms with which you compete. Most likely, your direct competitors will be law firms located very close to your location.

For each such competitor, provide an overview of their businesses and document their strengths and weaknesses. Unless you once worked at your competitors’ businesses, it will be impossible to know everything about them. But you should be able to find out key things about them such as:

• What types of customers do they serve?
• What types of cases do they accept?
• What is their pricing (premium, low, etc.)?
• What are they good at?
• What are their weaknesses?

With regards to the last two questions, think about your answers from the customers’ perspective. And don’t be afraid to ask your competitors’ customers what they like most and least about them.

The final part of your competitive analysis section is to document your areas of competitive advantage. For example:

• Will you provide better legal advice and services?
• Will you provide services that your competitors don’t offer?
• Will you provide more responsive customer interactions?
• Will you offer better pricing or flexible pricing options?

Think about ways you will outperform your competition and document them in this section of your plan.  

Marketing Plan

Traditionally, a marketing plan includes the four P’s: Product, Price, Place, and Promotion. For a law firm plan, your marketing plan should include the following:

Product : In the product section, you should reiterate the type of law firm company that you documented in your Company Analysis. Then, detail the specific products you will be offering. For example, in addition to in-person consultation, will you provide virtual meetings, or any other services?

Price : Document the prices you will offer and how they compare to your competitors. Essentially in the product and price sub-sections of your marketing plan, you are presenting the products and services you offer and their prices.

Place : Place refers to the location of your law firm company. Document your location and mention how the location will impact your success. For example, is your law firm located in a busy business district, office building, etc. Discuss how your location might be the ideal location for your customers.

Promotions : The final part of your law firm marketing plan is the promotions section. Here you will document how you will drive customers to your location(s). The following are some promotional methods you might consider:

• Advertising in local papers and magazines
• Reaching out to local websites
• Social media marketing
• Local radio advertising

Operations Plan

While the earlier sections of your business plan explained your goals, your operations plan describes how you will meet them. Your operations plan should have two distinct sections as follows.

Everyday short-term processes include all of the tasks involved in running your law firm, including filling and filing paperwork, researching precedents, appearing in court, meeting with clients, etc.

Long-term goals are the milestones you hope to achieve. These could include the dates when you expect to file your 100th lawsuit, or be on retainer with 25 business clients, or when you hope to reach $X in revenue. It could also be when you expect to expand your law firm to a new city.  

Management Team

To demonstrate your law firm’ ability to succeed, a strong management team is essential. Highlight your key players’ backgrounds, emphasizing those skills and experiences that prove their ability to grow a company.

Ideally you and/or your team members have direct experience in managing law firms. If so, highlight this experience and expertise. But also highlight any experience that you think will help your business succeed.

If your team is lacking, consider assembling an advisory board. An advisory board would include 2 to 8 individuals who would act like mentors to your business. They would help answer questions and provide strategic guidance. If needed, look for advisory board members with legal experience or with a track record of successfully running small businesses.  

Financial Plan

Your financial plan should include your 5-year financial statement broken out both monthly or quarterly for the first year and then annually. Your financial statements include your income statement, balance sheet and cash flow statements.

Income Statement : an income statement is more commonly called a Profit and Loss statement or P&L. It shows your revenues and then subtracts your costs to show whether you turned a profit or not.

In developing your income statement, you need to devise assumptions. For example, will you file 25 lawsuits per month or sign 5 retainer contracts per month? And will sales grow by 2% or 10% per year? As you can imagine, your choice of assumptions will greatly impact the financial forecasts for your business. As much as possible, conduct research to try to root your assumptions in reality.

Balance Sheets : Balance sheets show your assets and liabilities. While balance sheets can include much information, try to simplify them to the key items you need to know about. For instance, if you spend $50,000 on building out your law firm, this will not give you immediate profits. Rather it is an asset that will hopefully help you generate profits for years to come. Likewise, if a bank writes you a check for $50,000, you don’t need to pay it back immediately. Rather, that is a liability you will pay back over time.

Cash Flow Statement : Your cash flow statement will help determine how much money you need to start or grow your business, and make sure you never run out of money. What most entrepreneurs and business owners don’t realize is that you can turn a profit but run out of money and go bankrupt.

In developing your Income Statement and Balance Sheets be sure to include several of the key costs needed in starting or growing a law firm:

• Location build-out including design fees, construction, etc.
• Cost of licensing, software, and office supplies
• Payroll or salaries paid to staff
• Business insurance
• Taxes and permits
• Legal expenses

Attach your full financial projections in the appendix of your plan along with any supporting documents that make your plan more compelling. For example, you might include your office location lease or your certificate of admission to the bar.  

Putting together a business plan for your law firm is a worthwhile endeavor. If you follow the template above, by the time you are done, you will truly be an expert and know everything you need about starting a law firm business plan; once you create your plan, download it to PDF to show banks and investors. You will really understand the law firm industry, your competition, and your customers. You will have developed a marketing plan and will really understand what it takes to launch and grow a successful law firm.

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Other Helpful Business Plan Articles & Templates

How to Create a Law Firm Business Plan Aimed at Success

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

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

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

Why Is a Business Plan Important for Law Firms?

A business plan is a vital tool for any law firm to achieve success. It outlines goals, strategies, and the feasibility of business ideas, providing a clear direction and focus for the firm. The plan can be used to secure funding from investors or financial institutions by demonstrating the potential for growth and profitability.

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

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

General Tips for Creating an Attorney Business Plan

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

— Stay Focused

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

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

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

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

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

— Keep Track of Goals and Results

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

Your plan will set out your goals and the metrics you will use to determine your progress toward meeting them. The plan should also explain how you will know when you have met them.

For example, you might have a growth goal of reaching five lawyers within two years. Or you might have a revenue goal of collecting $200,000 your first year.

Too many businesses, including law firms, meander on their developmental path. By setting goals and the path for meeting them, you will have guardrails to keep your firm on track.

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

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

— Sort Out Your Own Law Firm Strategy

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

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

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

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

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— Move Forward

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

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

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

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

Law Firm Business Plan Template

Each of the websites below includes at least one attorney business development plan template:

• Business Plan Workbook
• PracticePro
• Smith & Jones, P.A.
• Wy'East Law Firm

You can use a law firm strategic plan example from these sites to start your firm's plan, then turn the plan into a document unique to your circumstances, goals, and needs.

What to Consider before Starting Law Firm Business Plans

Before starting a law firm business plan, think through a few key issues, including:

— Setting the Goals

Reflect deeply on your firm's purpose. Think about who you represent and how you can best meet their needs. A law firm exists for its clients. As you think about your  law firm goals , think about goals for providing legal services to your clients.

"We continue to try to have the biggest impact that we can because ultimately, in my opinion at least, that's what lawyers are for, is to be able to help people and be able to move us forward." — Omar Ochoa

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

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

— Choosing Partnership Structure

For lawyers considering a partnership structure, it's important to select partners that complement each other's strengths and weaknesses to help the firm function effectively.

There are 2 main partnership structure options:

• A single-tier model provides equal decision-making power and liability between partners.
• Meanwhile, a two-tier structure offers tiers like equity and non-equity partners, providing flexibility and career progression opportunities.

While similarly skilled individuals may clash, partners with differing abilities can succeed together. Some attorneys also choose to run their own firm for flexibility. This allows them to leverage different specialists through occasional joint ventures tailored for specific cases, without the constraints of a single long-term partnership. Furthermore, it highlights how the law firm partnership structures impacts freedom and sustainability.

— Thinking of the Revenue You Need

Calculate how much revenue you need to cover your overhead and pay your salary. Suppose your expenses include:

• $2,000 per month for office rent
• $36,000 per year for a legal assistant salary
• $600 per month for courier expenses
• $400 per month for a copier lease

Assume you want the  median annual salary for lawyers  of $127,990. You need $199,990 per year in revenue to cover your salary and expenses.

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

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

— Defining the Rate of Payment

You need to make some difficult decisions when it comes to setting your own fee structure. If you choose a higher billing rate, you will need to work less to meet your revenue goals. But you might not find many clients who are able to pay your fees.

Whether you charge a flat fee, contingent fee, or hourly fee, you should expect potential clients to compare your fees to those of your direct and indirect competitors. Remember, your firm competes against other lawyers, online services like  LegalZoom , and do-it-yourself legal forms books.

Finally, you need to comply with your state's rules of professional conduct when setting your fees. The  ABA's model rules  give eight factors to determine the reasonableness of a fee. These factors include the customary fee for your location and the skill required to provide the requested legal services.

— Making the Cases in Your Law Practice Meet the Revenue Needs

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

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

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

The Founder of Omar Ochoa Law Firm

Omar Ochoa is a founding attorney with extensive experience in complex litigation, including antitrust, class actions, and securities cases. He has recovered hundreds of millions of dollars for clients and has been nationally recognized as one of the best young trial lawyers in the country.

Omar graduated from the University of Texas at Austin with degrees in business administration, accounting, and economics. He later earned his law degree from the university, serving as editor-in-chief of the Texas Law Review. He has clerked for two federal judges and has worked at the prestigious law firm Susman Godfrey L.L.P. Omar is dedicated to seeking excellence. He has been recognized for his outstanding achievements in antitrust litigation.

Parts of a Business Plan for Law Firm Formation: Structure

A law firm business plan is a written document that lays out your law firm goals and strategies.

For many businesses, a business plan helps secure investors. But the ethical rules prohibit law firms from seeking funding from  outside investors or non-lawyer shareholders .

Your business plan is for you and your law partners. It will help you manage everyone's expectations and roles in the firm. Here is a law firm business plan example to help you see the parts and pieces in action.

— Executive Summary

An executive summary combines the important information in the business plan into a single-page overview. Your plan will include details like projections, budgets, and staffing needs. This section highlights the conclusions from those detailed analyses.

Your executive summary should include :

• A mission statement explaining the purpose of your firm in one or two sentences
• A list of the core values that your firm will use whenever it makes decisions about its future
• The firm's overarching goals for itself, its lawyers, and the clients it serves
• The unique selling proposition that sets your firm apart from other firms in the legal industry

You should think of this section as a quick way for people like lenders, potential law partners, and merger targets, to quickly understand the principles that drive your firm.

— Law Firm Description and Legal Structure

First, you will describe what your law firm does. You will describe your law practice and the clients you expect to serve.

Second, you will describe how your firm operates. The organization and management overview will explain your legal structure and the management responsibilities of you and your law partners.

This section should fill in the details about your firm's operation and structure by:

• Describing the scope of the legal services you offer and your ideal clients
• Restating your mission statement and core values and expanding upon how they will guide your firm
• Explaining your location and where your clients will come from
• Describing your business entity type and management structure
• Detailing your unique selling proposition , including the features that distinguish your firm from your competitors

When someone reads this section, they should have a clear picture of what you will create.

— Financial Calculations

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

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

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

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

"Take some financial statements courses, take some managerial accounting courses that teach you how to track costs, how to frame costs in a way that you're looking at the important costs." — Omar Ochoa

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

Some reports you may need in your business plan include:

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

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

— Market Analysis

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

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

Your analysis should include a discussion about your :

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

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

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

— Marketing Plan

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

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

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

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

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

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

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

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

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

— Your Law Firm Services

You will outline the services your law firm offers to clients. Lawyers with established clients and an existing legal practice can simply describe what they already do.

Any new law firm or lawyer transitioning from other practice areas should consider:

• Practice areas you know and enjoy
• Overlapping practice fields that will not require extra staff, such as personal injury and workers' comp
• Related legal services your clients may need, such as wills and guardianship

By offering needed services you can competently provide, you can gain clients and avoid referring existing clients out to other lawyers.

— Your Law Firm Budget

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

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

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

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

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Some Useful Tips on Creating a Business Plan for Law Firm Creation and Development

As you draft your law firm business plan, you should focus on the process. By putting your thoughts down in writing, you will often identify issues you had not previously considered.

Some other tips for drafting your business plan include:

— Describe Both Strengths and Weaknesses

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

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

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

— Think Ahead

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

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

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

"A law firm that actually does something in the unique way that is an actual measurable advantage to their clients or to their firm." — Tom Lenfestey

— Be Clear about Your Intentions

As you develop your plan, you should keep its purpose in mind. First, you want to outline your core values and goals for your law firm. Set out the reasons why you started your law firm and what you intend to accomplish with it.

"You can't just be doing something because you want prestige. There's gotta be more to that, right? You have to have a purpose that you're following. And if you've got that, that purpose is like gravity, right? You will always be grounded." — Omar Ochoa

Second, you set out your path to achieving those goals. This will include boring technical information like how much you spend on legal research every month. But it will also explain your approach to solving problems consistent with your mission statement and philosophy for law firm management.

— Consult and Update If Necessary

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

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

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

— Develop a Succession Plan for Your Law Firm

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

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

Building High-Value Law Firms with Tom Lenfestey, the CEO of Law Practice Exchange

This podcast episode features a discussion between Sasha Berson and Tom Lenfestey about the Law Practice Exchange, a marketplace for buying and selling law firms. Tom, an attorney and CPA, explains how his experience with other professionals inspired the creation of this marketplace. They discuss the importance of building systems to enhance a firm's value, the challenges of succession planning, and strategies for creating a smooth transition and maximizing value during a sale.

"You make more money with hopefully more consistency and less stress. And so that's also part of it is enjoy it. Build to better, right, overall, but build that firm that you want." — Tom Lenfestey

Tom Lenfestey

The CEO of Law Practice Exchange

Tom Lenfestey is an attorney and CPA who founded the Law Practice Exchange, a marketplace for buying and selling law firms. With a background in assisting dentists and CPAs in selling their practices, Tom identified the need for a similar platform for lawyers. His work focuses on helping attorneys realize the value of their practices, providing structured exit strategies, and facilitating smooth transitions.

Final Steps

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

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

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

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

• Easy steps you can take to bring in more clients and up this year’s revenue
• The top website and marketing mistakes holding your law firm back

Find out how much demand there is in your geographical area

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

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

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• Sample Business Plans

Law Firm Business Plan

If you are a lawyer, chances are you have thought of owning a law firm at least once if not more.

After all, having your firm gives you the freedom of taking up projects that you like and working at flexible hours.

But with freedom comes responsibility, and most of us find the thought of doing everything from onboarding clients to taking care of every detail of their case at least in the initial days quite overwhelming.

But don’t worry! It isn’t as scary as it looks. All you need to run a successful law firm is your sharp wit to deal with cases and a well-written law firm business plan to deal with the business side of your profession.

Free Law Firm Business Plan Template

Download our free business plan template now and pave the way to success. Let’s turn your vision into an actionable strategy!

• Fill in the blanks – Outline
• Financial Tables

Industry Overview

The global legal services market was valued at a whopping sum of 849.28 billion dollars in 2020 and is expected to rise at a high rate going forward too.

The main changes in the legal industry have been brought about by the introduction of AI which does proofreading and data research jobs with higher efficiency. This lets the lawyers focus on what really matters.

Also, the security and access systems have become loads better due to cloud computing.

What is Law Firm Business Plan?

A law firm business plan is a document that outlines your business goals and strategies to achieve those goals. It includes your law firm overview, your reason to start your firm, the services you will offer, a budget or funding requirements, and strategies to get and manage your clients.

Why Law Firm Business Plan is Important?

A business plan would help you understand what sets you apart from your competitors, and how you can market your USP to your clients.

It also helps you design strategies to reach out to your clients and manage them. It comes in extremely handy for analyzing the loopholes in your business structure.

Moreover, it helps you identify your strengths and work on your weaknesses.

All in all, It can make managing your business a hassle-free and less chaotic process.

Things to Consider Before Writing a Law Firm Business Plan

Focus on your expertise.

Between juggling business and practice, it is natural that practice gets neglected more often than not. But always keep in mind that though focusing on your business is important it shouldn’t come at the cost of skills you need to develop and upgrade to do well as a lawyer.

Also, it is important to decide on a niche so you can dig deeper and become an expert at handling cases of that kind.

Create a proper website

In today’s world being present and active on the internet is as important for your business as being good at what you do.

A strong web presence helps you reach out to your customers as well as builds your reliability for them.

Build your network

Networking is an important aspect of being a lawyer. From getting new customers, getting updates on the legal world, and even collecting evidence if you are a criminal lawyer, a good network can work wonders for your legal business.

The kind of circle you belong to also has an impact on your reputation and image as a lawyer.

Develop soft skills

We all know that confidence and intellect are a lawyer’s best friends. And although it is an ongoing process to develop these skills, it is good to get a head start before you start your business.

Intellect helps you upgrade and pay attention to detail, and confidence helps you sound more convincing and reliable. Both of which are foundational to a legal business.

How to Write a Law Firm Business Plan?

A law firm business plan would be a combination of segments common to all business plans and segments specific to a law firm.

Before you start writing your business plan for your new law firm, spend as much time as you can reading through some examples of  consulting-related business plans .

Reading some sample business plans will give you a good idea of what you’re aiming for. It will also show you the different sections that different entrepreneurs include and the language they use to write about themselves and their business plans.

We have created this sample law firm business plan for you to get a good idea about how a perfect law firm business plan should look like and what details you will need to include in your stunning business plan.

Chalking out Your Business Plan

Starting your own law firm is an exciting prospect for any lawyer. Having your firm gives you more independence, lets you implement ideas you want to, and most importantly, you get to deal with clients firsthand.

And if you plan on starting your own, do so with a proper business plan.

But you might wonder, why do I need a business plan as a lawyer, isn’t my legal knowledge and years of work enough?

The answer is no.

To run a law firm you need a law degree, but to run a successful business you need a business plan alongside your degree.

Law Firm Business Plan Outline

This is the standard law firm business plan outline which will cover all important sections that you should include in your business plan.

• Mission Statement
• Vision Statement
• Financial Summary
• 3 Year profit forecast
• Business Structure
• Startup cost
• Market Analysis
• Market Trends
• Target Market
• Market Segmentation
• Sales Strategy
• Marketing Strategy
• Pricing Strategy
• Personnel Plan
• Financial Plan
• Important Assumptions
• Brake-even Analysis
• Profit Yearly
• Gross Margin Yearly
• Projected Cash Flow
• Projected Balance Sheet
• Business Ratios

Say goodbye to boring templates

Build your business plan faster and easier with AI

Plans starting from $7/month

Now, let’s understand how you can complete each section of your business plan.

1. Executive Summary

The executive summary forms the first page of your business plan. It acts as a pitch for your business to potential investors and should consist of the following sections.

• Objective: This gives an overview of what you wish to accomplish with your business. The objective should be clear and solve an existing problem in the market.
• Vision Statement: This should state what vision you have for your business. How do you want it to function and how far do you expect to reach with it. You can also include how your vision sits with the current market situation.
• Financial Summary: This section should ideally consist of the history of your finances and their current state. A proper financial summary helps you gain an investor’s confidence and makes it easier for your business to get funded.

2. Company Summary

Next up we have the company summary section, this segment provides an overview of your company’s structure and its functioning.

This section provides a brief description of the following:

• Legal Structure: This section would describe the legal terms and conditions your firm functions on, as well as the ownership structure of your firm.
• USP: This would consist of points that set your firm apart from your competitor’s firm.
• Services: This section will include the services you offer, the legal procedures you are well versed in, all in all, the client base you cater to.
• Location: This segment covers your area of service and the location of your firm. A clearly stated area of service, helps you reach the right audience.

3. Market analysis

This segment consists of a thorough analysis of the market situation. It can be split up into the following sub-segments.

• Market Trends: This would consist of all the prevailing trends in the market. It is important to know market trends because it helps your business keep up with the evolving market.
• Target Market:  This section would consist of a summary of the market you cater to. Clearly defining your niche helps you reach out to your desired customer base.
• Market Segmentation: In this section, note down the segments present in the market, as well as what segment of the market your business would fit in. This would help you narrow down the number of competitors you have, the strategies you must follow, and the major and additional services you should offer.

4. Strategy and implementations

In this section, you would include various business strategies like:

• Marketing strategy You can formulate a marketing strategy depending on your target audience and the easiest and most effective ways of reaching out to them. It is important to formulate your marketing strategy based on your USP and your vision statement.
• Pricing Strategy It is important to formulate a pricing strategy based on the market trends, the nature of the work, and your target audience.
• Milestones This segment would consist of the various milestones your business would have to reach to achieve your goal and the strategies to help you reach them.

5. Financial Plan

The financial section of your business plan would consist of the following information regarding your business.

• Financial history
• Current State of finances
• Profit and loss

Download a sample law firm business plan

Need help writing your business plan from scratch? Here you go;  download our free law firm business plan pdf  to start.

It’s a modern business plan template specifically designed for your law firm business. Use the example business plan as a guide for writing your own.

The Quickest Way to turn a Business Idea into a Business Plan

Fill-in-the-blanks and automatic financials make it easy.

Law Firm Business Plan Summary

All of the above segments would help you in creating a well-rounded business plan. Starting your law firm with a well-written business plan can make your growth process faster and smoother.

After getting started with Upmetrics , you can copy this law firm business plan example into your business plan and modify the required information and download your law firm business plan pdf or doc file.

It’s the fastest and easiest way to start writing your business plan.

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About the Author

Upmetrics Team

Upmetrics is the #1 business planning software that helps entrepreneurs and business owners create investment-ready business plans using AI. We regularly share business planning insights on our blog. Check out the Upmetrics blog for such interesting reads. Read more

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Starting a law firm can be a rewarding and lucrative venture, but it requires careful planning and strategy. A well-crafted business plan is a crucial tool for any law firm looking to establish itself, secure funding, or grow its practice. The business plan will serve as a roadmap, outlining the law firm’s objectives, strategies, and unique selling proposition

Why Every Law Firm Needs a Business Plan

A well-structured business plan is imperative for every law firm, regardless of its size or specialization. While legal expertise is undoubtedly crucial, having a clear vision and strategic direction is equally essential. A business plan serves as a guiding light, defining the firm’s mission, values, and long-term goals. This clarity is vital for aligning the entire firm towards a common purpose, ensuring that everyone understands the objectives and the path to achieving them. Without a business plan, a law firm may find itself navigating uncertain waters, reacting to circumstances rather than proactively pursuing its ambitions.

The Key Components of a Law Firm Business Plan

A well-structured law firm business plan consists of several key components, each playing a crucial role in guiding the firm’s operations and ensuring its long-term success. Here are the essential elements of a comprehensive law firm business plan:

• Executive summary
• Law firm description
• Market analysis
• Organization and management
• Services 
• Marketing Strategy
• Financial plan
• Start-up budget

Section One: Executive Summary

The executive summary is arguably the most critical section of your law firm’s business plan. While it appears at the beginning, it is often written last, as it serves as a concise yet comprehensive overview of your entire plan. This section should capture the reader’s attention, providing them with a clear understanding of your law firm’s essence, mission, and what to expect from the rest of the document. In your executive summary:

• Introduce your law firm: Briefly describe your law firm’s name, location, and legal specialization.
• Mission and vision: State your firm’s mission and vision, highlighting your commitment to serving clients’ legal needs effectively.
• Your unique selling proposition: Clearly state your USP, and present what is unique about your firm that will ensure success.

The executive summary sets the stage for your entire business plan. It should be a concise yet compelling introduction to your firm’s mission, values, and potential. If crafted well, it can grab the reader’s attention and encourage them to explore other sections in detail. If you feel overwhelmed by this, you can write this section last. 

Section Two: Law Firm Description

This section of your business plan provides a deeper dive into your firm’s background, history, legal specializations, and legal structure and ownership. This section should provide a concise yet informative overview of your firm’s identity and history. Here’s what this section should cover:

• Mission Statement: Briefly reiterate your law firm’s mission statement. This statement should encapsulate your firm’s overarching purpose and guiding principles.
• Geographic Location: State out the physical location of your law firm’s office(s). This should include the city or region where your primary office is situated.
• Legal Structure and Ownership: State the legal structure of your law firm, whether it’s an LLC, S-Corp, or another legal entity. This choice is a fundamental aspect of your business model, influencing ownership, liability, and taxation. If your firm’s ownership is not that of a sole proprietorship, provide details on the ownership structure. Explain how the chosen structure aligns with your firm’s business model, decision-making processes, and long-term goals.
• Firm History: Provide the history of your law firm. Highlight key milestones, achievements, and notable moments in your firm’s journey. If your firm is well-established, briefly summarize its history, showcasing your accomplishments and contributions to the legal field.

Remember that brevity is key in this section. Don’t spend too much time, just touch on important points and achievements. 

Section Three: Market Analysis

A well-conducted market analysis will not only demonstrate your understanding of the legal industry but also inform your law firm’s strategies and decision-making. It goes beyond understanding your competition; it delves deep into your potential clients’ needs and expectations. 

Through market analysis, you can segment your target market based on demographics, industry, legal needs, and preferences. This segmentation allows you to tailor your services to meet the specific needs of different client groups. It also helps you identify the pain points and challenges that potential clients face. By understanding their concerns, you can offer solutions that directly address these pain points.

Your market analysis should also reveal the pricing strategies of your competitors. By benchmarking your pricing against theirs, you can position your services competitively. You can choose to price higher if you offer unique value or lower if you aim to attract price-sensitive clients. Your market analysis should reveal areas where your competitors may be falling short. Use this information to frame your services as the solution to these weaknesses. For example, if competitors have slow response times, emphasize your firm’s commitment to timely communication. 

Showcase your firm’s USPs that directly address client needs and preferences. If you excel in a particular practice area, have a reputation for excellent client service, or offer innovative fee structures, use these strengths to attract your preferred clientele. Ultimately, a well-documented market analysis not only informs your law firm’s business model but also guides your approach to client acquisition, pricing, and service delivery. It ensures that your legal services align with client expectations and positions your firm for success in a competitive legal industry

Section Four: Organization and Management

Image Source – Creately

This section provides a clear picture of your firm’s internal structure and leadership. Name the key stakeholders in your law firm and what they bring to the table. Highlight any unique experiences or expertise that each partner brings to the firm. This could include prior work at prestigious law firms, involvement in landmark cases, or specialized knowledge in a specific area of law. Explain how these experiences set your firm apart and enhance its capabilities. You can also include an organizational chart that visually represents your law firm’s structure. This chart should showcase the hierarchy, roles, and reporting lines within the firm. By including the names, educational backgrounds, unique experiences, and organizational chart, you paint a comprehensive picture of your law firm’s leadership and structure. This not only builds confidence in your team’s capabilities but also showcases the depth and expertise of your staff to potential clients, partners, or investors.

Section Five: Services

This section is the core of your law firm business plan. Here, you will go into detail about all aspects of your services. Present in simple words:

• The problem(s) your law firm is addressing and your approach to how to alleviate those pain points? Answer these questions, and provide in detail how your firm is in the best position to tackle this problem. 
• The solution(s) you are providing. This should describe how your law firm resolves your prospective market’s needs. This should include the work you do, and the benefits that each client will receive if they work with your firm. 
• Your law firm competition.  This should describe what advantages your law firm has over your competitors? What you do differently when providing your solutions and how your clients will gain additional benefits when they work with your law firm.

Section Six: Marketing Strategy

As you craft your business plan, keep these four essential questions in mind:

• What Is Your Firm’s Value Proposition? Clearly define what sets your law firm apart from others. This should guide your marketing and sales strategies, emphasizing the unique value you offer to clients.
• Who Is Your Target Audience? Identify your ideal client profile. Understanding your target audience helps tailor your marketing efforts to reach those most likely to benefit from your services.
• What Are Your Growth Goals? Set specific, measurable growth goals for your firm. These goals should inform your sales and marketing strategies, outlining how you plan to achieve them.
• How Will You Measure Success? Determine key performance indicators (KPIs) to measure the success of your marketing and sales efforts. Whether it’s tracking client acquisition rates, website traffic, or revenue growth, having measurable metrics will help you gauge your progress and make informed adjustments.

It is also valuable to perform a SWOT analysis (Strengths, Weaknesses, Opportunities, Threats) to assess your law firm’s internal and external factors. Describe your online marketing efforts, including your website, social media presence, and email marketing campaigns. Explain how you plan to leverage marketing  to reach and engage potential clients effectively. You should also define your pricing structure and fee arrangements. This may include hourly rates for specific legal services, retainer agreements for ongoing representation, or flat fees for standardized services. 

Section Seven: Financial Plan

If you want to expand your law firm and ensure a steady income, it’s essential to create a financial strategy for your practice. While you might not have all the answers regarding your firm’s finances, provide comprehensive details. Your goal should be to establish a financial plan, particularly for the initial year of your firm’s operation.

Provide comprehensive financial projections that cover the anticipated income, expenses, and cash flow for your law firm. These forecasts should offer a clear picture of how your firm expects to perform financially. You should also Incorporate income statements, which show your firm’s revenue and expenses, balance sheets that detail your assets and liabilities, and cash flow projections, which illustrate how money moves in and out of your business. These financial statements offer a holistic view of your firm’s financial health.

Explain the assumptions underlying your financial projections. This may include factors like growth rates, market trends, client acquisition strategies, and pricing models. Describe your strategies for achieving growth and how they translate into financial outcomes. This section is critical for demonstrating your law firm’s financial preparedness and sustainability. Investors, lenders, or partners will scrutinize these sections to assess the viability of your firm, making it essential to provide detailed and well-supported financial information.

Section Eight: Start-up Budget

When developing a business plan for your law firm, it is essential to create a realistic startup budget. This involves carefully considering various initial and ongoing expenses and factoring them into your revenue objectives. Here are some instances of expenses to incorporate into your budget:

• Hardware costs, such as laptops, printers, scanners, and office furniture.
• Office space expenses, whether you plan to rent space or work from home.
• Malpractice insurance fees.
• Staff salaries, including potential hires like administrative assistants or paralegals.
• Utility expenses, covering phone and internet services, among others.
• Expenses on practice management software or other tech tools

After itemizing these costs, review them thoroughly. Clearly state the total amount of funding you require to start and sustain your law firm. Explain how this funding will be allocated, including how much goes into covering startup costs and how much is reserved for ongoing operations. Be specific about the purpose of each funding component. 

Additionally, explore tools and solutions that can streamline non-billable tasks, freeing up more time for your legal practice. This not only enhances your overall productivity but also allows you to allocate more time to your legal practice. One exceptional solution that can significantly benefit your law firm operations is a legal practice management software. 

DigitsLaw: The Legal Practice Management Software for Law Firms

DigitsLaw is an all-in-one practice management software that streamlines and simplifies the day-to-day operations of a law firm. Whether you are a small firm or you have law firms in major cities, DigitsLaw can meet the unique needs of your legal practice. Our simple and intuitive tool offers a wealth of features that can make a substantial difference in the success and efficiency of your firm.

Here’s how DigitsLaw can help your new law firm scale:

• Effortless Case Management: DigitsLaw simplifies case management by centralizing all your client information, documents, and communications in one secure location. This ensures that you have easy access to everything you need, right at your fingertips.
• Time Tracking and Billing: With DigitsLaw, tracking billable hours and generating invoices is seamless. You can accurately record your time, expenses, and activities, allowing for transparent and error-free billing processes.
• Conflict Check: DigitsLaw provides a robust conflict check system that assists law firms in maintaining ethical standards and preventing conflicts of interest. By incorporating DigitsLaw conflict check capabilities into your law firm’s workflow, you can enhance your due diligence processes, reduce the risk of conflicts of interest, and uphold the highest ethical standards in your legal practice. 
• Client Collaboration: Foster better client relationships through DigitsLaw’s client portal . Clients can securely access case information, share documents, and communicate with your firm, enhancing transparency and trust.
• Legal Document Management: Say goodbye to the hassle of paper documents and disorganized files. DigitsLaw enables efficient document storage, organization, and collaboration, saving you time and reducing the risk of errors.
• Secure and Compliant: DigitsLaw prioritizes security and compliance, ensuring that your client data and sensitive information are protected at the highest standards.

By leveraging DigitsLaw’s capabilities, you can significantly reduce administrative overhead, minimize errors, and provide a more streamlined and responsive experience for your clients. It’s a strategic investment that will pay dividends as your firm grows and prospers.

Sample Business Plan and Fillable Template

If you’re in the early stages of creating your business plan, we’ve prepared an example that can serve as a reference. You can also download a blank version of our template here. Remember to tailor your plan to your specific requirements and objectives. 

Download your copy of our law firm business plan template HERE

Final thoughts.

In conclusion, crafting a law firm business plan is not just a formality; it’s a roadmap that guides your firm toward success. Whether you’re launching a new law firm or seeking to revitalize an existing one, a well-thought-out plan helps you.  From defining your firm’s mission and values to conducting a thorough market analysis every section of your plan plays a crucial role in shaping your law firm’s journey. It’s not just about impressing potential investors; it’s about setting clear goals, making informed decisions, and ensuring that your firm is well-prepared for the challenges and opportunities that lie ahead.

As you start planning, remember that your business plan is a living document. It should evolve and adapt as your firm grows and the legal industry changes. Regularly revisit and update your plan to stay aligned with your mission, serve your clients better, and achieve your long-term vision.

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Law Firm Business Plan Template [Updated 2024]

Law Firm Business Plan Template

If you want to start a successful Law Firm or expand your current Law Firm, you need a business plan.

Fortunately, you’re in the right place. Our team has helped develop over 100,000 business plans over the past 20 years, including thousands of law firm business plans.

The following law firm business plan template and example gives you the key elements you must include in your plan. In our experience speaking with lenders and investors, the template is organized in the precise format they want.

You can download our Business Plan Template (including a full, customizable financial model) to your computer here.

Law Firm Business Plan Example

I. executive summary, business overview.

[Company Name] is a law firm in [insert location here]. The Company primarily focuses on litigation law, but also provides a wide range of legal services as requested by clients. [Company Name]’s legal services range from mergers and acquisitions to product liability, to intellectual property to real estate. Our team of lawyers works with each client to ensure successful outcomes. The Company’s goal is to become one of the leading law firms in the area.

[Company Name] will provide the following legal services to its clients:

• Arbitration & Mediation
• Business Formation
• Business and Commercial Transactions
• Collections and Credit Matters
• Commercial Real Estate Law
• Construction Law
• Corporate Governance and Compliance
• Creditor’s Rights
• Employment Law
• General Counsel Services
• Immigration Law
• Insurance Law
• Real Estate Consultancy and Advisory Services

Customer Focus

[Company Name] will primarily serve service sector businesses and individual clients within a 20-mile radius of its location. Potential customers in this area include:

• 1,500 private businesses with annual payroll exceeding $1 million
• 120,000 individuals

Management Team

[Company Name] is led by [Founder’s name], who has been in the legal industry for [x] years. [Founder’s name] graduated from the University of ABC, where he majored in law. During his apprenticeship in the legal industry, he acquired in-depth skills in practicing law and is well aware of the practices related to the legal industry. Additionally, he worked in a law firm alongside a professional, learning how to manage and run a law firm before starting [Company name].

Success Factors

[Company Name] is qualified to succeed due to the following reasons:

• There is currently a high demand for legal services within the community. In addition, the company surveyed the local population and received highly positive feedback pointing towards an explicit demand for the services, supporting the business after launch.
• The Company’s location is in a high-volume traffic area and will thus be highly convenient for a significant number of people visiting nearby.
• The management team has a track record of success in the legal business.
• The upscale legal business is a proven business and has succeeded in communities throughout the United States.
• Market trends such as high disposable income and spending power are propelling the demand for legal services.

Financial Highlights

[Company Name] is currently seeking $170,000 to launch its law firm. Specifically, these funds will be used as follows:

• Office design/build: $60,000
• Working capital: $110,000 to pay for marketing, salaries, and lease costs until [Company Name] reaches break-even

II. Company Overview

Who is [company name].

[Company Name], located in [insert location here], is a new, upscale law firm that provides a wide range of legal services to both individual and business clients. The Company has built an impressive reputation for providing superior legal advocacy and delivering consistently exceptional results to the area’s companies, businesses, and professionals. As a solution-oriented law firm, the Company makes it their primary objective to support, guide, and protect their clients.

[Company Name]’s History

[Founder’s Name] is an entrepreneur who has worked extensively with law firms & lawyers to enhance his business development skills on a personal and commercial level. He has restructured the firm to keep pace with the legal developments in the regional and international community by creating ethical, legal practices with a highly qualified legal team focusing on providing comprehensive, professional, and creative legal solutions to fully meet the confidence and expectations of the clients locally and internationally.

Upon surveying the local customer base and finding the potential retail location, [Founder’s Name] incorporated [Company Name] as an S-Corporation on [date of incorporation].

[Founder’s Name] has selected an initial location and is currently undergoing due diligence on each property and the local market to assess the most desirable location for the Law Firm.

Since incorporation, the company has achieved the following milestones:

• Found office space and signed Letter of Intent to lease it
• Developed the company’s name, logo, and website
• Created the list of services to be offered
• Determined equipment and inventory requirements
• Began recruiting key employees with experience in the legal industry

[Company Name]’s Products/Services

[Company Name] will provide a variety of legal services ranging from mergers and acquisitions to product liability, from intellectual property to real estate. The Company’s services are listed below:

III. Industry Analysis

The market size of the law firm industry in the U.S. is expected to increase 5.3% to reach $330 billion. The law firm industry in the US is the 2nd ranked professional services industry by market size in the US.

Growth in the historic period resulted from strong economic growth in emerging markets, increased mergers and acquisitions (M&A), a rise in consumer spending/increase in disposable income, and deregulation of the legal industry. Moreover, increasing demand for transactional practice areas, the growing legal tech industry, and globalization will drive the growth.

The increasing number of transactional practices in the upcoming period is expected to drive the legal services market. Transactional practice includes research, preparations, and review of documents for individuals and companies for corporate, tax, and real estate work and mergers and acquisitions.

IV. Customer Analysis

Demographic profile of target market.

[Company Name] will provide its services to businesses within a 20-mile radius of its location.

Customer Segmentation

The Company will primarily target the following customer segments:

• Individuals: [Company name] will target individuals who require assistance in terms of legal processes.
• Businesses: The Company will provide its services to businesses within a variety of sectors that require legal consulting services in [Location].

V. Competitive Analysis

Direct & indirect competitors.

Gold Law Partners In business for 15 years, Gold Law Partners is a leading full service/multi-disciplinary law firm offering transactional, regulatory, advisory, dispute resolution services. With its principal offices in Washington and New York, the firm advises a diverse clientele, including domestic and international companies, banks and financial institutions, funds, promoter groups, and public sector undertakings.

The Company was set up with a desire to bring client service into sharper focus, to provide commercially viable legal advice and committed legal representation to the clients across all sectors. The firm has successfully been able to establish its identity outside its origins, dealing with significant depth in complex domestic and international matters.

Premiere Legal Premiere Legal is an international full-service legal practice that serves the needs of many of the largest multinational corporations. The company aims to combine the highest international standards with local expertise so it can provide seamless assistance to the top corporations in their most important and challenging assignments. Through the network, the company offers a full range of commercial legal services, combined with an in-depth knowledge of local practices, in a total of 18 countries in four continents, including some of the most challenging and fast-growing emerging markets.

R&R Legal R&R Legal is a growing consortium of local law firms, providing a consistent standard of outstanding legal expertise and a considerate, personal service to clients throughout the US. Whenever required, the company will suggest input obtained from specialist barristers and other suitably qualified third-party advisors. The company has good relationships with many accountants, barristers, estate agents, bankers, surveyors, and other professionals, both locally and further afield. This adds depth to the service the company would provide when support and collaboration are needed.

Competitive Advantage

[Company Name] enjoys several advantages over its competitors. These advantages include:

• Management: The Company’s management team has xx years of business, legal consulting, and marketing experience that allows them to market and serve customers in an improved and sophisticated manner than the competitors.
• Relationships: Having lived in the community for xx years, [Founder’s Name] knows all of the local leaders, newspapers, and other influencers. As such, it will be relatively easy for [Company Name] to build brand awareness and an initial customer base.
• Great service at an affordable price: The wide range of legal consulting services offered by [Company Name] nearly equals the most prestigious positioned competitor, [Competitor Name]. However, [Company Name] will offer its services at a much more affordable price.
• Personal Service: The Company will tailor its service to the client’s requirements. Individuals can choose the way they wish to communicate with us either by email, phone, or fax, and the company will work closely with you to achieve the best result for individuals or the business.

VI. Marketing Plan

The [company name] brand.

[Company name] seeks to position itself as a renowned, upper-middle-market competitor in the law firm industry. Customers can expect to receive effective and efficient legal consulting services.

The [Company Name] brand will focus on the company’s unique value proposition:

• Expert Management Team
• Industry Relationships
• Great Services at an affordable price
• Providing excellent customer service

Promotions Strategy

[Company Name] expects its target market to be residents and service sector businesses within a 50-mile radius of the [location]. The Company’s promotions strategy to reach the audience includes:

Website The Company will create a professional website for domestic and international business prospects, which will provide easy access to essential information about the company offerings, contact details, and other information. The website will be updated and optimized to enhance the company’s online presence.

Advertisement Advertisements in print publications like newspapers, magazines, etc., are an excellent way for businesses to connect with their audience. The Company will advertise its offerings in popular magazines and news dailies. Obtaining relevant placements in industry magazines and journals will also help in increasing brand visibility.

Public Relations [Company Name] will hire an experienced PR agency/professional(s) to formulate a compelling PR campaign to boost its brand visibility among the target audience. It will look to garner stories about the company and its offerings in various media outlets like newspapers, podcasts, television stations, radio shows, etc.

Social Media Marketing Social media is one of the most cost-effective and practical marketing methods for improving brand visibility. The Company will use social media to develop engaging content in terms of different jewelry designs and post customer reviews that will increase audience awareness and loyalty. Engaging with prospective clients and business partners on social media platforms like Twitter and LinkedIn will also help understand changing customer needs.

Word of Mouth Marketing [Company name] will encourage word-of-mouth marketing from loyal and satisfied clients. The Company will use recommendations and word-of-mouth marketing to grow the customer base through the network of its existing customers. The Company will be incentivizing its existing customer base to encourage their friends to come and try their service for the first time.

Pricing Strategy

[Company Name]’s pricing will be moderate, so customers feel they receive great value when availing of the services they are paying for. The customer can expect to receive effective and efficient legal services at a far more affordable price than what they pay at an already well-established law firm.

VII. Operations Plan

Functional roles.

To execute on [Company Name]’s business model, the company needs to perform several functions, including the following:

Administrative and Service Functions

• Legal Aides
• General & administrative functions including legal, marketing, bookkeeping, etc.
• Executive Assistant
• Human Resources

VIII. Management Team

Management team members.

[Company Name] is led by [Founder’s Name], who has been in the legal consulting industry for xx years. While [Founder] has never operated a legal firm himself, he has worked extensively with domestic and international clients for different projects. [Founder’s name] graduated from the University of ABC, where he majored in law. During his apprenticeship in the legal industry, he acquired in-depth skills in practicing law and is well aware of the practices related to the legal industry.

Additionally, he worked in a law firm alongside a professional, learning how to manage and run a law firm before starting [Company name].

Hiring Plan

[Founder] will serve as the CEO. To launch the law firm, the company will need to hire the following personnel:

• Lawyers [Number]
• Legal Consultants [Number]
• Marketing & Sales Executive [Number]

IX. Financial Plan

Revenue and cost drivers.

[Company Name]’s revenues will come from the legal services offered to its customers. The major costs for the company will be salaries of the staff, rewarding them for performance and making specialists will be an active part in business retention and development. In the initial years, the company’s marketing spend will be high, as it establishes itself in the market. Moreover, rent for the prime location is also one of the notable cost drivers for the [Company Name].

Capital Requirements and Use of Funds

Key assumptions.

  5 Year Annual Income Statement

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Chapter 3/6

Developing a Business Plan for a New Law Firm

How to Start a Law Firm

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A law firm business plan is the foundation for everything your business does. Without a solid foundation, your firm will lack direction from the very beginning.

Starting a Law Firm Business Plan

A good business plan includes:

• Vision. Create a picture of what you’re building.
• Values. Identify the rules to guide your team’s important work. 
• Law Firm Business Model. What you offer, who you offer it to, and how you’ll deliver your services.
• Targets and Priorities. Clarify metrics that indicate success.

Law Firm Vision

We worked with a lawyer who was stressed out about his vision. He spent weeks on the assignment because he couldn’t think of a statement that would make his entire office happy. 

During one coaching session , he got that lightbulb moment when we told him that he was making too big of a deal of it. You don’t have to create the most amazing vision that perfectly captures everything you are hoping to build. You do need to start mapping out what you are (and aren’t) trying to create. 

Picture these two lawyers:

• Lawyer 1 wants to double the size of his team in the next two years so he can handle more cases, help more people, and make more money.
• Lawyer 2 does not enjoy managing people. She wants to build a technology-based solution that she can offer clients with a recurring monthly price and that is delivered using a few key team members.

Neither vision is wrong. But, how each lawyer will make decisions to build a profitable business will look very different. You need to get a sense if you are trying to build something that looks more like Lawyer 1, Lawyer 2, or Lawyers 3-8. Get it? 

Jot down thoughts now so you know where you’re headed and can start building the guardrails for future decisions.

Law Firm Values

Your values are a living embodiment of the firm culture you’re hoping to create and the approach to work your team shares. They are the guardrails of your business. 

From hiring to client management to a marketing strategy, every decision you make comes from your values. 

Your values are typically 3-6 factual statements that are authentically you. 

Here are some tips on crafting great values:

• Your values must concretely point to your business. You want achievable values that set your business up for success .
• Your values must have actual meaning. Like the “be the best lawyer” example, you want to avoid the obvious. Sure, every firm wants to be the best. But what, precisely, does your firm want to do that sets you apart from the crowd?
• Finally, avoid table stakes values. Honesty, integrity, and hard work are all good works that all companies should have. But, they have nothing to do with your specific goals vs. any other firm.

As an example, here are Lawyerist’s values :

• Build an Inclusive Community.
• Experiment Like a Lobster.
• Grab the Marker.
• Seek Candor.
• Grow as People.

Each of these represents the culture of our company (even “ Experiment Like a Lobster ,” which describes our playful and out-of-the-box thinking process). We use these values for all of our decisions, especially hiring. When we evaluate a candidate, we study their fit: Are they open to experimenting? Are they willing to help us build an inclusive community ? Are they eager to lean into candor and compassion ?

Building your vision and values is an essential first step for your business. We can’t tell you how much easier other decisions will flow once you have these documented. You will make better decisions and alleviate some of the anxiety of decision fatigue.

Law Firm Business Model

One of the biggest perks of starting your firm is deciding your law firm business plan and model. You get to take everything you learned in school and while working at other organizations and implement the parts you like. Even better, you get to leave out the details that stressed you out.

This is an excellent place to review your vision and values. Take the time to dream about this. This is often the most rewarding part for new law firm owners. With a smart strategy, you can build your dream firm.

Ask yourself:

• What kind of place do I want to work in every day? 
• What kind of clients do I want to serve? Who is my ideal client ?
• What type of pricing model do I want? 
• What kind of access to justice issues do I want to tackle?

You get the gist. The questions you can ask yourself here are endless, but use your vision and values to inform your model. For example, if one of your values is “ grow as people ,” you might offer education opportunities for clients in areas related to their cases. 

The important part is, it’s all up to you. This is yours. You get to decide.

Competitive Analysis

As part of finalizing your law firm business model, it can be very helpful to complete a competitive analysis. A competitive analysis not only forces you to define who your competitors are, it gives you a chance to determine what may be missing in the market so that you can address it. 

Lawyers often assume as long as they practice law, there’s a market for what they want to do. Or they think they’re only competing against other lawyers when clients are often drawn to non-law solutions. 

These lawyers are missing a huge opportunity. They aren’t asking clients how they heard about their firm. They’re not trying to figure out what other solutions their clients tried first. They aren’t looking at what clients want and how the market is attempting to respond.

Here are some tips for putting together a competitive analysis:

• Make a list of competitors. Simple, right? List firms in your practice area/location, your jurisdiction, and who may be serving your ideal client base.
• List the other ways your clients are solving their problems . Are they use an online service to create their will? Are they asking their cousin’s nephew’s wife, who once worked at a law firm in 1988, for advice? Get creative.
• Do field research . Ask your friends, family, and current clients what they do when they have a potential legal problem.

Once you’ve collected the data, you can begin the analysis. Think about the strengths and weaknesses of each competitor and the solution you’ve collected. Compare pricing, accessibility, marketing messages, and client service. How does it all compare to your firm? What do you do better? What could you improve?

And keep in mind: This isn’t a one-time deal. You’ll want to stay on top of competitive solutions through Google or social media alerts or by subscribing to industry emails and newsletters. At least once a year, do a complete forensic competitive analysis to see where things have changed.

Targets and Priorities

When you’re first starting a law firm business plan, you may just have a goal of “get my firm up and running.” A good goal! But, as you dream on your initial strategy, it’s helpful to set some initial short-term and excellent long-term goals. Yes, these goals may change as you learn and grow. But, setting goals upfront will give you a path to get started.

Short-term Goals

Look to your initial vision and values for your first goals. If you’re a family law firm that wants to do low-conflict divorces, you might have a client acquisition goal aligned with this.

For example, you could say: In the first six months of my firm opening, I want 50% of my new clients to be low-conflict separations and divorces. You’ll see this goal follows the S.M.A.R.T. formula: Specific, Measurable, Achievable, Relevant, Time-Bound. 

Another short-term goal might be systems-oriented: I want a written client onboarding process documented in my first three months. (If not implemented.)

Think through all the different parts of your business and see if you can achieve one short-term goal.

Long-term Goals

Long-term goals can be a little trickier when you’re first starting. Thinking one, two, or even five years out might seem impossible. But this is where you can begin to dream a little.

A long-term goal might be that in three years, you want a staff of five people, a complete operations manual, 50 new clients a year, and Fridays off each week. 

Remember, these goals might—and likely will—change. But give yourself something to work with in the beginning.

Key Performance Indicators (KPIs)

As you’re starting a law firm business plan, you’ll need  a way to measure your firm’s health. These measurements are called KPIs. They track goals in all parts of your business, from marketing to finances to client acquisition .

Measuring and monitoring your KPIs will allow you to:

• Monitor the health of your firm . KPIs will enable you to see how well your law firm is performing. For example, KPIs make it easy to track your finances and your firm’s monthly growth.  You’ll see problems and successes quickly and be able to take action by creating new goals or redirecting your team’s efforts.
• Simplify decision-making . Armed with the above information, you can make informed, rational decisions for everything in your business. You don’t have to guess if a decision is the right one. Instead, you can (and should) measure all variables to make the best decision for your firm’s future.
• Track your wins. By tracking your KPIs, you track your wins. Monitoring law firm data makes it simple to incentivize your staff’s hard work. After all, when you meet your numbers, everyone benefits.

For example, at Lawyerist, we track KPIs with a color-coded system.

Green means hitting our goal, yellow means we’re on the cusp, and red means not hitting the number. We track weekly, which means when something goes yellow, we can analyze and plan before it goes red.

And, because we track weekly, a one-week red doesn’t mean an emergency. It means we need to take time to discuss, find a cause, and make a plan.

Types of KPIs for Successful Firms

KPIs can cover all aspects of your business, including your finances, client satisfaction, marketing, and business development. Keep in mind, as you start your firm, KPIs will be new to you and can feel overwhelming. So, keep it simple in the beginning. 

Start by picking three business questions you want answered. Find a way to measure that answer that you can track and update without too much work regularly. Then, start measuring. As your firm grows, you’ll develop your KPIs.

Let’s look at some examples.

Financial KPIs

Want to increase your revenue or improve your law firm’s financial health? You’ll want to track some financial KPIs , including (but not limited to):

• Revenue (cash collected)
• Monthly amount invoiced to clients
• Accounts receivable (amount clients owe you)
• Budgeted expenses

Regardless of your goals, we recommend tracking some basic financial data to keep an eye on the health of your firm. For a quick win, narrow down your financial KPIs to the top three financial numbers  needed to understand your business.

Client Satisfaction KPIs

Your clients are your most valuable assets. Firm success requires that you watch specific metrics involving your clients. 

Client satisfaction KPIs connect to several key law firm growth goals. These include increasing referrals, increasing revenue (happy clients are loyal clients), and improving overall client experience. 

Examples of KPIs to track include:

• Net Promoter Score (NPS)
• Client retention rate
• Speed at which you close cases

Your Net Promoter Score measures whether current or former clients would recommend your legal services to others. A satisfied client is more likely to do so. This metric is most often gathered using a survey at the final delivery of your services.

Other measures, such as closing speed and retention, can give you insights into how happy your clients are with your services. Do you have a lower NPS than you expect? Are you losing clients? If so, your client satisfaction is low, and you could take action to improve it.

Marketing and Business Development KPIs

Is your current marketing strategy working? Without measuring KPIs, there’s no way of knowing. By tracking marketing metrics for your firm, you can see your marketing strategy’s performance and tweak where needed. 

Some of these metrics include:

• Organic traffic to your website
• Number of leads generated
• Conversion rates
• Acquisition costs/return on investment (ROI)

For example, if you see your website traffic trending down, some fresh content might do the trick. Or, if you see low conversion rates yet high traffic, your website isn’t inspiring potential clients to give you a call. You might need to change your call-to-actions or refresh your website.

Marketing and business development go hand-in-hand—as they’re both critical to achieving long-term growth goals.

Some examples of business development metrics to track include:

• Number of new clients each month
• Competitor pricing
• Sales cycle length
• Number of leads that turn into consultations

Profitability KPIs and Law Firm Financial Ratios

Every law firm should have a documented long-term financial strategy and profitability model. Any healthy business has a written plan to forecast revenue, expenses, net profit, and cash reserves. To ensure you follow through with your plan, track your firm’s profitability and financial KPIs.

And where should you track these KPIs? Don’t think too hard on that one. At Lawyerist, we use a Google Sheets  spreadsheet with a few simple formulas. Track anywhere that makes sense for your firm .

Next, we’ll outline how to use legal technology successfully.

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How to Create a Law Firm Business Plan

What is in a law firm business plan.

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

Why Your Law Firm Needs a Business Plan

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

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

Things to Consider Before Creating Your Business Plan

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

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

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

Define Your Goals

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

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

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

Some examples are:

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

Build Your Firm’s Fee Structure

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

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

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

Set Your Revenue Targets

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

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

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

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

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

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

8-Point Law Firm Business Plan Checklist

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

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

1. Executive Summary

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

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

2. Company Description

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

Below are the aspects that your firm description should cover: 

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

3. Market Analysis

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

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

Be sure your line of inquiries encompasses the following details:

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

4. Organization and Management Structure

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

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

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

5. Legal Services

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

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

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

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

6. Marketing Strategy

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

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

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

7. Financial Plan 

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

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

Here are the items you need to include: 

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

8. Startup Budget

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

Wrap up your business plan by finalizing the following:

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

5 Law Firm Business Plan Templates to Get You Started

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

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

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

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

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Law Firm Business Plan Template

Written by Dave Lavinsky

Law Firm Business Plan

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

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

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

Executive Summary

Business overview.

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

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

Product Offering

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

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

Customer Focus

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

Management Team

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

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

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

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

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

Success Factors

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

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

Financial Highlights

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

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

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

Company Overview

Who is harris & harris law firm.

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

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

Harris & Harris Law Firm History

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

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

Harris & Harris Law Firm Services

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

• Dedication to professionalism and honest dialogue

Industry Analysis

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

Customer Analysis

Demographic profile of target market.

Customer Segmentation

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

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

Competitive Analysis

Direct and indirect competitors.

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

Diamond & Johnson Defense

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

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

Legacy Law Associates

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

Construction Defect Law Firm

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

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

Competitive Advantage

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

Marketing Plan

Brand & value proposition.

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

Promotions Strategy

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

Word of Mouth/Referrals

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

Professional Associations and Networking

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

Website/SEO Marketing

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

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

Operations Plan

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

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

Milestones:

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

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

Financial Plan

Key revenue & costs.

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

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

Funding Requirements and Use of Funds

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

Key Assumptions

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

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

Financial Projections

Income statement.

Balance Sheet

Cash Flow Statement

Law Firm Business Plan FAQs

What is a law firm business plan.

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

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

What are the Main Types of Law Firm Businesses? 

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

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

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

What are the Steps To Start a Law Firm Business?

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

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

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

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

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

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

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

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

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

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

• How to Start a Law Firm

A Complete Strategy for Creating a Law Firm Business Plan

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

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

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

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

What Is a Law Firm Business Plan?

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

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

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

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

Why Is a Law Firm Business Plan Important?

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

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

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

How Do I Start a Law Firm Business Plan?

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

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

Define Your Goals

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

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

Revenue/Value Estimation

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

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

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

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

Billing Structure

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

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

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

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

Identify the Risks

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

A few potential risks for law firms: 

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

What Is in a Law Firm Business Plan?

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

Executive Summary

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

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

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

Market Analysis

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

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

Law Firm Billing and Finances

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

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

Management Structure

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

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

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

Legal Technology

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

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

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

Legal Services

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

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

Law Firm Marketing

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

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

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

Sample Law Firm Business Plan

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

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

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

Outlook on the Business of a Law Firm

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

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

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

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Kamron Sanders

Kamron Sanders is the Senior Content Marketing Specialist at PracticePanther, an all-in-one legal practice management software. She is responsible for creating engaging content across multiple channels including social media, articles, videos, and more. Kamron views marketing through a customer-focused lens and equips legal professionals with the information and tools to automate their practice.

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Law Firm Business Plan Guide: From Start to Finish [with Template]

Uncover how to craft a winning business plan for your own law firm tailored specifically for lawyers!

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By Ivan Vislavskiy

Running successful law firms need careful planning, strategic thinking, and a clear vision for the future. A well-crafted law firm business plan can propel your firm to new heights. It helps you clarify your vision, identify your target market, and gain a deeper understanding of your competition. Once you get a glimpse into your firm’s strengths, weaknesses, opportunities, and threats, you’ll be able to make informed decisions and position your practice for long-term success. 

This guide will take you through the process of creating a comprehensive business plan for your own law firm. We’ll discuss what a business plan for a law firm entails, how to construct it in 7 easy-to-follow steps, and the key components that should be included. Additionally, we’ll provide a real-world legal business plan sample to inspire and guide you.

What Is a Business Plan for a Law Firm and Its Purpose

A law firm business plan is a comprehensive document that outlines the strategic vision, operational details, and financial projections for your legal practice. It serves as a roadmap to guide the growth and development of your firm, addressing critical aspects such as your target market, competitive landscape, service offerings, law firm marketing strategies , and financial projections.

The primary purpose of a law firm business plan is to provide a clear and well-researched blueprint for the successful launch, operation, and expansion of your legal practice. By investing time and effort into crafting this document, you’ll gain several key benefits:

Clarity and direction: A well-crafted business plan helps you articulate your firm’s unique value proposition, set measurable goals, and align your team towards a common vision.

Operational efficiency: The process of developing a business plan forces you to address critical operational details, such as staffing, resource allocation, and process optimization, ensuring your firm runs smoothly and efficiently.

Financial planning: A comprehensive financial plan, including revenue projections, startup costs, and cash flow forecasts, allows you to make informed decisions about investments, pricing, and growth strategies.

Funding and investment: A professional-grade business plan can be a powerful tool for securing funding from investors, banks, or other financing sources, as it demonstrates the viability and growth potential of your legal practice.

Competitive advantage: After a thorough competitive analysis , you can develop differentiated services, pricing strategies, and marketing approaches that give your firm an edge.

Ongoing guidance: Your law firm business plan should be a living document, regularly reviewed and updated to reflect changing market conditions, client needs, and your firm’s evolving goals and objectives.

Comrade Digital Marketing Agency can help you with the above if you’re unsure how to go about it. Schedule a free consultation.

How to Build Your Law Firm Business Plan in 7 Steps

Building a law firm business plan involves several key steps, from analyzing your competitors to creating a financial plan and a client retention strategy. Each step is essential to creating a comprehensive and effective plan.

Step 1: Analyze Your Competitors

The first step in developing your law firm business plan is to thoroughly understand the legal scene. Begin the market analysis by estimating the projected size of your target market and identifying your direct and indirect competitors. Look for gaps in their approach that you can exploit or areas where you can innovate, allowing you to differentiate your firm and offer unique value to your clients.

Step 2: Define Your Law Firm’s Vision

With a clear understanding of your competitive environment, the next step is to define your law firm’s vision – a compelling, aspirational statement that encapsulates your firm’s purpose, values, and long-term goals. This statement should guide your law firm’s growth and decision-making. Additionally, identify the core values and principles that will shape your firm’s culture and decision-making processes. Translate these into measurable objectives that will drive your firm’s growth and development.

Step 3: Develop a Detailed Firm Structure

Determine the appropriate legal structure for your law firm, whether it’s a sole proprietorship, partnership, or limited liability company (LLC). Clearly define the specific duties and responsibilities of each partner, associate, and support staff member, ensuring that your organizational structure is efficient and effective. Regularly assess your firm’s structure to identify any inefficiencies or gaps, making adjustments as needed to optimize performance.

Step 4: Outline Your Services and Pricing

Clearly articulate the legal services you will offer, including your practice areas, areas of specialization, and the unique value proposition you bring to your clients. Establish competitive rates for your services, taking into account factors such as your target market, the complexity of the legal work, and the experience and expertise of your attorneys.

Step 5: Develop Your Marketing Strategy

With your firm’s core offerings and structure in place, the next step is to develop a comprehensive law firm marketing strategy that will help you effectively reach, engage, and retain your target clients. Develop a distinctive brand identity, including a logo, messaging, and visual elements, that effectively communicates your firm’s unique value proposition.  

Outline a mix of digital and traditional marketing tactics, such as search engine optimization, content marketing, social media, networking events, and print advertising, to reach and attract your target clients.

Step 6: Create a Financial Plan

A well-defined financial plan is an important component of your law firm business plan, as it outlines your startup costs, revenue projections, profit and loss forecasts, and cash flow statements. This financial roadmap will not only help you secure funding but also guide your firm’s strategic decision-making.

Develop detailed revenue projections based on your anticipated client base, billable hours, and pricing structure, as well as profit and loss forecasts to assess your firm’s long-term viability. Furthermore, create a comprehensive cash flow statement to identify potential cash flow challenges and ensure your firm has sufficient liquidity to meet its financial obligations.

Step 7: Come Up With a Client Retention Strategy

Finally, no law firm business plan is complete without a well-defined client retention strategy. Attracting new clients is essential, but it’s equally important to focus on building long-lasting relationships with your existing clients to ensure the ongoing success and growth of your firm.

Develop targeted initiatives, such as client appreciation events, loyalty programs, and personalized communication, to foster strong, lasting relationships with your clients. Continuously seek client feedback and implement processes to measure and improve client satisfaction, ensuring your firm is meeting or exceeding client expectations. You should also cultivate a culture of client advocacy by providing exceptional service and actively encouraging satisfied clients to refer their friends, family, and colleagues to your law firm business plan.

Key Components of a Law Firm Business Plan

Now that you’ve explored the steps to building your law firm business plan, we will delve into the key components that should be included in this comprehensive document below. 

Executive Summary

The executive summary is a snapshot of your law firm’s business plan, briefly covering the mission statement, the legal services offered, the target market, and the firm’s overall goals. This section should be concise, yet compelling, to provide readers with a clear understanding of your firm’s purpose and direction.

Your Law Firm Description

This section provides a detailed overview of your law firm, including its history, core values, and unique selling points. Describe the specific legal services you offer, your target clientele, unique selling proposition, and the competitive advantages that set your firm apart in the market.

Start-up Budget

The start-up budget section outlines the initial investments and costs required to launch your law firm. This should include detailed projections for expenses such as office space, equipment, technology, hiring, and other operational costs. This information is crucial for securing funding and ensuring your firm’s financial viability.

By ensuring your business plan for attorneys includes these key components, you’ll create a comprehensive and compelling document that can serve as a roadmap for your firm’s success.

Legal Business Plan Sample

The law firm business plan template sample from Rocket Lawyer provides a valuable example of the key components that should be included in a comprehensive law firm business plan. The template covers the essential sections, such as the Executive Summary, Business Description, Products/Services, Funding Request, and Financial Projections.

The Executive Summary offers a concise overview of the firm’s goals, target market, and unique value proposition. This high-level snapshot gives readers a clear understanding of the law firm’s purpose and potential.

The Business Description delves deeper into the firm’s operations, including its legal structure, management team, and competitive advantages. This section allows the firm to showcase its expertise and differentiate itself within the legal industry.

The Products/Services section outlines the specific legal services offered, highlighting the firm’s areas of focus and specialized expertise. This information helps potential clients and investors understand the scope of the firm’s capabilities.

The Funding Request and Financial Projections sections are crucial for securing financing and demonstrating the long-term viability of the law firm. These financial details provide a roadmap for growth and profitability, which are essential for attracting investment and ensuring the firm’s success.

Crafting a Powerful Business Plan for Lawyers

With the steps outlined in this comprehensive guide, you can create a robust law firm business plan that sets your legal practice up for long-term success. Whether you’re a solo practitioner or leading a multi-partner firm, a well-crafted business plan will help you secure funding, attract top talent, and demonstrate your strategic thinking to prospective clients. Remember, it’s a dynamic document that needs regular updates to align with market changes and evolving goals, ensuring your firm’s growth and leadership in the legal industry.

As you craft your law firm business plan, consider partnering with a professional digital marketing agency like Comrade Digital Marketing , to help you develop a strong online presence and implement effective marketing strategies. Our team of experts can provide customized SEO , PPC , and web design services to help you reach and engage your target audience, ultimately driving more leads and client conversions for your law firm. Contact us to learn more about how we can support the success of your law firm through data-driven, results-oriented digital marketing solutions!

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Business Plan Writer Moscow

A well written business plan is an essential component for any company seeking to raise capital. Our team at Prospectus.com has over 20 years of experience writing business plans and structuring business models for start-ups, later stage and expansion companies, those seeking venture or angel financing all the way to mezzanine and 144A funding, spanning a wide range of industries across the globe. We have been involved in thousands business projects and assisted with business planning, offering and private placement setup, feasibility studies, drafting financial projections, both for private companies and those seeking initial public offerings or listings on a stock exchange.  Our team is a recognized leader in business plan development. In fact, our CEO is the Chairman and Founder of  Borders.org  ( Business Plans Without Borders ), a not-for-profit 501c3 organization which assist low income families as well as refugees and immigrants with business plan writing services and grants.

Our Team’s Business Plan Advisory Services Value-Proposition:

• Our staff are known as one of the most reliable and affordable Business Plan developers in the U.S. and worldwide. Our straight forward and honest assessment of one’s business is one of our strongest characteristics
• Offices and associates in numerous countries, including New York, London, Hong Kong Beijing, Singapore and Seattle
• 1 to 2 weeks’ average time for completing business plans
• Proven track record of saving entrepreneurs thousands of dollars in needless spending while developing the business plan
• Ability to draft your business plan and prospectus or private placement memorandum or offering memorandum for debt or equity offerings or any other service and package    everything as one price
• We are somewhat of a one stop business for most of the startup and later stage company needs.

Moscow Business Plan Options

There are mainly two types of business plans that are written in Moscow: capital raising business plans and management or managerial business plans.

Raise Capital with a Business Plan

Most business plans are written with eye towards raising money for their venture. In a business plan that is written for investment capital, the structure of the business plans and therefore the most important point of the document will be the value-added benefit. Information on the products, services and the market will play central roles in the development of the plan, as well as various payout or exit strategies for the investors. Most business plans will focus on either selling equity or debt to investors.

• Equity : In an equity business plan the company seeking funding will sell an ownership stake. If the company is a corporation, they will sell shares or common stock or a variation of them. If the company is a LLC or a Limited Company (which is popular worldwide) interest or units in the company would be offered. Both a form of ownership, just with a different name for each entity. In additional, there are other sweeteners one can add into any business plan offering, including warrants or preferred shares or preferred units or convertible debt.
• Debt : in a debt offering business plan the company will be issuing some type of bond or a note to investors. A bond or note differ only in terms of the length of each security, which bonds being considered a longer maturity date than a note. There are also convertible debt securities that would convert the notes/bonds to equity at a certain fixed point in time. The business plan for bonds would detail the terms, such as the maturity date, interest rate and other vital information.

Managerial Guidance Business Plan

• No Capital Raising : In a managerial or a management business plan, the focus is not on raising money but what strategy a company should employ. While most companies that write business plans do so to raise capital, there are some that simply want to get a second opinion or an outside view of their business. They ask us to write them a business plan for growth opportunities, not to raise money. Said another way, the management of the company wants to see our view and take on their business and what we would do to expand their company.
• Recommendations : A business plan used to simply strategically plan one’s next move is referred to as managerial guidance business plan document. No capital is being raised initially, although sometimes we may conclude that capital should be raised for the company to penetrate or open new markets or opportunities. In the course of research, we may conclude that, in fact, the company should conduct an offering and raise money. We will recommend the amount to raise based on the company’s expansion needs and the company valuation.

3 Levels of Business Plans

Our firm offers various levels of business plan writing service and consulting, including: Level I Start-up Business Plan »

• Prospectus.com’s team consists of industry expert business plan writers. Our Level I Start-up Business Plan can be used for companies raising initial seed funding and getting off the ground. The dollar amount being raised is not of paramount importance.
• The Start-up Plan includes complete financials, potential cash-flow, market analysis and marketing strategies as well as a break-even analysis, and a separate executive summary and much more.

Level II Expansion or Series B Business Plan »

• Prospectus’ Level II Expansion or Series B Business Plan assists companies and entrepreneurs that are seeking to expand or scale their business, including by increasing market share.
• The Level II Start-up Plan helps to define concepts, target markets and market potential, as well as financial clarity necessary to define your concept, identify your market potential, and identify capital requirements. Executive summary included.

Level III Enterprise Business Plan »

• Prospectus’ Level III Enterprise Business Plan serves the need of those later stage and established companies seeking to raise additional capital to expand their businesses, often in the form of issuing debt securities such as bonds or convertible notes.
• The Level III Enterprise Business Plan is our most comprehensive business plan and often our clients will need a prospectus or a private placement memorandum (offering memorandum) written as well.

Our firm has years of experience drafting securities documents and is confident we can assist with your Moscow Business Plan Writer.  Feel free to contact us anytime, or call us to setup an appointment at any one of our global offices.

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Harris Proposes $50,000 Small Business Tax Deduction For Startup Expenses: Here’s What To Know

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Vice President Kamala Harris proposed Wednesday a substantial boost to the tax deductions new small businesses can use on their startup expenses, tacking on to a tax-focused economic plan she has revealed more of in recent weeks.

Harris will discuss the proposal during a speech Wednesday. (Photo by JEFF KOWALSKY / AFP) (Photo by ... [+] JEFF KOWALSKY/AFP via Getty Images)

The proposal, announced during a speech in New Hampshire, would increase small businesses' $5,000 allowable deduction for startup expenses to $50,000, Harris said, adding, “It’s essentially a tax cut for starting a small business.”

New small businesses could allocate the tax deduction across multiple years or claim the full $50,000 deduction once they turn a profit.

Harris said her administration plans to make filing taxes for businesses “cheaper and easier,” likening the proposal to how individual people can file for standard deductions.

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What Is The Current Small Business Tax Deduction?

Small businesses can use the $5,000 deduction and then spread remaining startup costs over 15 years, according to The Wall Street Journal . Startup costs eligible for tax deductions include advertisements, pay for employees in training and for those who instruct them, consultant and executive salaries and travel for securing customers, suppliers or distributors, according to the IRS .

How Many Businesses Could This Impact?

Harris is aiming to attract 25 million new small business applications in her first term if elected president. President Joe Biden’s administration announced Tuesday there have been 19 million new small business applications since the start of the president’s term.

What Are Harris’ Broader Plans For The Economy?

The vice president has pitched an “ opportunity economy ” focused on supporting the middle class. Like the startup expense tax deduction, she is also looking to expand the child tax credit with a proposal including $6,000 for newborns up to the age of one and $3,600 per child in middle- and lower-income families. Harris is also looking to introduce tax cuts for middle class Americans, reduce “price gouging” at grocery stores and implement up to $25,000 in down payment aid for first-time homebuyers.

Key Background

Harris’ proposal comes just one week ahead of her scheduled debate with former President Donald Trump, who has proposed the extension of expiring tax cuts for people at all income levels, the Journal reported, noting his plans include extending a 20% deduction for small and large businesses. Harris has an edge on Trump in at least nine polling surveys following the Democratic National Convention, including a four-point lead among registered voters on the former president in an Ipsos/ABC News poll taken Aug. 23-27.

Further Reading

Harris Will Propose $25,000 In Down Payment Aid For First-Time Homebuyers As Part Of Economic Agenda (Forbes)

What We Know About Kamala Harris’ Policy Agenda After CNN Interview (Forbes)

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Open Business in Russia. The method for forming a business in Russia

How much does it cost to open a business in russia, the method for forming a business in russia, starting a company in russia, steps for registering a business in russia, how much time does it take to establish a business in russia, the benefits of doing business in the russian federation, russian federation’s high-priority business sectors, foreign personnel employed in russia, visas for doing business in russia, social customs and manners.

Russia has one of the largest economies in the world as well as a significant domestic market. Foreign investors interested in establishing a business in the nation are drawn to the country’s economic potential. The nation has many special economic zones that attract investment in industries like industrial production, research and development, logistics, and tourism.

Doing business in Russia may entail adhering to new rules, registering in the Russian company register, and collaborating with or competing with Russian enterprises. This article will help you understand the process of launching a business in Russia.

Tired of the never-ending cycle of looking for a job just to add to your resume? Maybe now is the time to go out on your own and establish your own business.

What do you need to know and what do you need to do if you are a foreign individual or corporation wishing to start actively conducting business in Russia? What alternatives do you have for structuring your business?

The cost is determined by the type of business: individual entrepreneurship (IP) is the simplest and cheapest. The only expense is the state registration charge of 800 rubles (€9). Creation of a seal and the establishment of a bank account for individual entrepreneur are optional.

Despite the simplicity of the procedure, it would be advisable to consult with an expert. Incorrect document preparation, faults in completing or legalization might not only prolong the registration procedure but also incur needless fees.

In Russia, forming a limited liability company Moscow corporation (LLC) is substantially more expensive. Minimum permitted capital – 10 000 rubles (€105), state registration fee – 4 000 rubles (€42), manufacture of the seal – € 30-40, notary services – around € 300 and additional charges for the legal address – €550 for 6 months.

The LLC registration process currently takes 3-5 working days. However, if there are many documents and foreign firms or citizens act as founders, the production of documentation might take up to a month or longer.

Services for LLC registration start at € 1000, depending on the task’s complexity.

When forming a joint-stock company, you should also pay for the allowed capital (at least 100 000 rubles if the JSC is public) and the issuance of shares. The state duty on securities issued is 0.2% of the nominal value, but not more than 200 000 rubles.

Buying an existing running firm is another option for beginning a business in Russia. Typically, they are authorized capital shares or whole LLCs. The purchase of such a business starts at € 1000 + notary services + state duty for making changes to the register. A corporation having a “business history” will be substantially more expensive.

The LLC in Russia gains the status of a business with foreign involvement after acquiring a portion of the authorized capital. This implies that its operations will be governed by foreign investment regulations. This enables foreign enterprises participating in the realization of priority projects, in particular, to import means of production with large customs benefits.

An investor can form a single proprietorship, a partnership (limited or general), or a corporation (limited liability or a joint stock company). Foreign firms can also establish a branch or a representative office.

The government offers numerous incentives to new businesses. In reality, distinct entities, such as the Foreign Investment Advisory Council, ensure the relationship between the government and the corporate market. A number of organizations were established to assist the establishment of new businesses, including the Investment Fund of Russia, the Development Bank of Russia (Vnesheconombank), and the Russian Agricultural Bank. Special Economic Zones were established to encourage investors to establish a business here.

If you want to open a company but are unable to be present in Russia, our lawyers in Russia will assist you with the entire registration procedure under power of attorney. They can also help you if you want to go to Russia.

If you are an individual or a firm considering opening a business in Russia, there are several factors to consider and procedures to follow. You should start with the basics, such as if you may lawfully operate a business in Russia.

Before going on to practical matters such as choosing a legal structure, drafting documentation, entering the Russian company register, and creating a Russian bank account for your firm, you must first have a viable business concept.

Foreign investors who wish to start businesses in Russia must take the following procedures, regardless of the type of business:

• application form P11001;
• the Articles of Association of the LLC;
• the resolution/minutes to create the company;
• guarantee letter with the company’s address;
• receipt of payment of state duty;
• notification of the transition to a simplified taxation system (if necessary).
• Sign and notarize application form, if founder is abroad – also apostille or legalize it at Russian consulate.
• File for registration of company via Russian notary or directly to registration body. If founder is abroad – it is possible to file by representative under power of attorney.
• obtain company’s seal;
• sign a rental agreement for a registered address for the company;
• open a bank account into which the share capital will be deposited;
• start doing accounting.

When establishing a business in Russia, the following processing times must be taken into account:

• creating the legal documents – 1 business day.
• registration of company – 2 to 5 business days
• obtaining a company seal – 4 to 7 business days.

1. Immigration situation

The first step for a foreigner looking to start a business in Russia is to ensure that your immigration status enables you to do so. Will you require a business or work visa, as well as a resident permit? For additional information about business visas in Russia, see the section below.

2. Business strategy for doing business in Russia

Second, do you have a viable idea and have you investigated the market to determine whether your business would succeed in Russia? Before embarking on any company endeavor, it’s a good idea to create a business plan that answers all of the issues regarding whether your business concept can not only get off the ground but also survive in the long run. Successful Russian entrepreneurs understand that while having an innovative concept is great, not all company ideas thrive in practice, thus solid planning is essential.

Download business plan templates and examine example business plans from a variety of sectors from a website like this one. You might also visit a website that maps companies in Russia, such as this one. The webpage may be searched by company category or name.

3. Legal framework

If you can start a business in Russia and are convinced that your business concept will succeed, the next step is to choose a legal structure for your company. The section on Russian business kinds below contains information on the various possibilities.

4. Selecting a firm name and address

You must select an appropriate firm name for your Russian business (ensuring that it is not already registered) as well as an address to register your Russian business at.

5. Documents establishing the foundation

According to Russian law, the foundation documents must be created by the company’s founders (charter and resolution/minutes on incorporation). The procedure will differ according on the legal structure you pick, but it should involve the following:

• complete company name (plus any abbreviation it will use in business transactions)
• the names and signatures of the company’s founders, as well as the number and kind of shareholder contributions (cash or in-kind)

6. Filing to the Russian registration body

Once the company forms are completed, incorporate your Russian firm by submitting to the Federal Tax Service (FTS) registration office following documents:

• documents on founder (a copy of the passport of a foreign citizen/extract from trade register on founder – foreign company with a notarized translation into Russian)
• completed application form № P11001;
• articles of association of LLC;
• the resolution/minutes on creation of a company;
• receipt of payment of the state fee;
• power of attorney (if necessary);

Foreign founders from unfriendly countries, when applying to a notary to open an LLC, should also provide permission from the government commission of the Ministry of Finance to register an LLC.

Signature on application form and power of attorney should be notarized, if founder is abroad – apostilled or legalized. 

After receiving these papers, the FTS takes a decision within three working days. They can either accept or reject registration – article 23 of Federal Law No. 129-FZ contains a list of grounds for denial.

Within 3 business days after submitting your application, you will get the following documents:

• the Certificate of tax registration with Tax Identification Number
• articles of association of company
• extract from the Company State Register with main registration number

7. Create a business seal

This is the company’s official logo, which was created by a professional firm. Following a change in the legislation in 2015, company seals are no longer a legal necessity in Russia, yet many Russian enterprises still maintain seals.

8. Open a bank account to do business in Russia

You can create a Russian business bank account once you have received all of the appropriate documentation from the FTS. To create a business account in Russia, you will need the following:

• Foundation documents – articles of association
• Extract from the Company State Register with main registration number
• The resolution/minutes on the establishment of the LLC
• Certificate of tax registration
• Decision on election, order on appointment or other document confirming the powers of the head of the company.
• A card with a sample seal and signatures of all persons who will have access to current accounts and will be able to dispose of the money in the accounts of the company.
• Powers of attorney or orders for all employees indicated on the signature card (if necessary)
• Passport of the manager and employees indicated in the signature card – for RF citizens. The requirements for non-residents’ identity documents should be clarified with the bank.

After you have accomplished these processes, you are free to begin running your Russian firm, which will surely include a lot of organization, marketing, and so on. This is when the real work begins!

Despite the indications of crisis, national currency depreciation, commodity dependency of the Russian economy, and several other challenges, including bureaucratic obstacles, the Russian Federation remains appealing to international investors. Their volume fluctuated unevenly throughout the past decade, yet there are logic and regularity patterns in this. For example, $74.7 billion in foreign capital was invested in the Russian economy in 2008. In light of this, the 2017 indications appear small – only $28 billion. However, there were apparent failures, such as in 2015, when foreign investment barely surpassed $6,8 billion.

For 2022 amount of foreign investment reached $53 billion. This obviously demonstrates that foreign cash is progressively returning to Russia today — investment attractiveness is increasing. However, a foreigner establishing a corporation in Russia must also examine aspects of the Russian economy and legal system. The following are some arguments in favor of establishing a business in the Russian Federation:

• The departure of foreign money has significantly “thinned” the business climate. This “sanitary clearance” lowered market rivalry significantly. Actually, it did not occur in profitable areas of economic activity; legislative liberalization. Foreign money is given a local legal framework — identical to that of Russians, and in addition, legislation ensures investment protection, the possibility of their easy withdrawal to native land, and so on; target market.
• The Russian Federation’s population is nearing 150 million people, and there are many significant cities in Russia: for example, the population of St. Petersburg is four times that of Estonia; altogether, Russian businesspeople lack professionalism. A foreign businessman producing a high-quality product/service at an inexpensive price will be ahead of the competition; the ease and low cost of company registration in Russia will, of course, pale in comparison to New Zealand and Singapore, but cheap labor expenses — the average pay in the Russian Federation is under $750, therefore many Chinese firms have already relocated their producing capacity to Russia;
• unlike many other nations, the opportunity to own the complete firm rather than just a portion of it.

Because the crisis had altered Russians’ cost structures, several previously viable niches of continuing business on Russian Federation territory had been significantly diminished. Taking into account market circumstances, the following are the most popular sectors for beginning a small business today:

• Food expenditures in the budget section have steadily increased in comparison to 2014-2018; transportation sector — from public transportation organization to automobile services and car washes. For example, in the previous five years, Muscovites’ transportation prices have climbed by 93%.
• real estate The demand for warehouse real estate surged by 15% in 2019. Residential real estate is gradually decreasing in price, therefore an increase in demand is projected shortly.
• IT-sector — one of the most rapidly increasing industries, with the advantage of relatively inexpensive labor costs when compared to foreign professionals;
• The service sector — which is driven by the demands of the populace — remains at the top.

Foreign citizen should get a work permit from the Migration office and work visa to work in Russia.

To become self-employed you will need to acquire a residence permit. Non-residents may own open company in Russia without even coming to Russia.

Hospitality is a Russian virtue, and you see a totally different side of Russians at home than you see at work. It is an honor to be welcomed to a Russian house, and there are several norms to follow while visiting for the first time:

• When invited, bring a gift. Wine, cake, chocolates, and flowers are popular gifts. Flowers should be offered in odd numbers, and yellow roses, which represent separation, should be avoided.
• Avoid shaking hands or kissing over the threshold of the door because it brings ill luck. Before shaking hands, remove your gloves. Before entering the home, remove your shoes.
•  Both the guest and the host should dress appropriately.
• Traditionally, a visitor will be led to a table packed with food and beverages as soon as they arrive, however elements of ‘European’ behavior are becoming more apparent. At the table, you should actively engage in the dialogue.
• Accept all types of food and beverages. Russians like their beverages; if you decline, do so politely.
• Russians have a distinctive toasting style. Participate and learn it, just like you should while entertaining.
• The host will frequently talk about his trips, favorite things, or accomplishments. They may even bring out family photos. Make sure to express your gratitude. More often than not, it is a means of opening up to a visitor. Russians are terrific satirists and can handle criticism.
• Dinners are typically held late into the night, with a lot of drinking and loud chatting. Expect nothing in the way of niceties. Remember, the best of the home is on the table; treat it with care.

Despite various obstacles, Russia remains an attractive investment destination for foreign money, as evidenced by:

Simple business company registration in Moscow  and relatively cheap costs of this procedure; low-cost labor and a range of new markets; and the potential of using a streamlined taxation system.

Another advantage is that foreigners are subject to the same rules as Russians. It is sufficient to get a work permit and work visa for 3 years — and then you may be director of your own business.

The Russian Federation, like any other civilized country, does not restrict foreigners legitimately residing in the country from conducting business. Furthermore, in order to attract international investment, foreigners must follow the same regulations as Russians. There are, however, subtleties. We went through them in further depth.

The cost is determined on the type of business: a limited liability business (LLC), joint-stock company (JSC) or individual entrepreneurship (IP)

Although it may be seen as a country that presents certain challenges, Russia continues to implement policies that encourage foreign investments, particularly in business fields like innovation or technology.

You may also be interested

• Registration of LLC by foreigners in Russia
• Accreditation of branches of foreign companies in Russia
• Registration of individual entrepreneur in Russia
• Registration of individual entrepreneur in Russia by non-resident
• Features of doing business with foreign counterparties.
• How to set up investment company in Russia

The University of Chicago The Law School

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.

Representative Engagements

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:

Transactional/Commercial Work

• A previous client developing a symptom-tracking wellness app for chronic disease sufferers engaged the Innovation Clinic again, this time to restructure its cap table by moving one founder’s interest in the company to a foreign holding company and subjecting the holding company to appropriate protections in favor of the startup.
• Another client with whom the Innovation Clinic had already worked several times engaged us for several new projects, including (1) restructuring their cap table and issuing equity to an additional, new founder, (2) drafting several different forms of license agreements that the company could use when generating content for the platform, covering situations in which the company would license existing content from other providers, jointly develop new content together with contractors or specialists that would then be jointly owned by all creators, or commission contractors to make content solely owned by the company, (3) drafting simple agreements for future equity (“Safes”) for the company to use in its seed stage fundraising round, and (4) drafting terms of service and a privacy policy for the platform.
• Yet another repeat client, an internet platform that supports independent artists by creating short films featuring the artists to promote their work and facilitates sales of the artists’ art through its platform, retained us this year to draft a form of independent contractor agreement that could be used when the company hires artists to be featured in content that the company’s Fortune 500 brand partners commission from the company, and to create capsule art collections that could be sold by these Fortune 500 brand partners in conjunction with the content promotion.
• We worked with a platform using AI to accelerate the Investigational New Drug (IND) approval and application process to draft a form of license agreement for use with its customers and an NDA for prospective investors.
• A novel personal finance platform for young, high-earning individuals engaged the Innovation Clinic to form an entity for the platform, including helping the founders to negotiate a deal among them with respect to roles and equity, terms that the equity would be subject to, and other post-incorporation matters, as well as to draft terms of service and a privacy policy for the platform.
• Students also formed an entity for a biotech therapeutics company founded by University of Chicago faculty members and an AI-powered legal billing management platform founded by University of Chicago students.
• A founder the Innovation Clinic had represented in connection with one venture engaged us on behalf of his other venture team to draft an equity incentive plan for the company as well as other required implementing documentation. His venture with which we previously worked also engaged us this year to draft Safes to be used with over twenty investors in a seed financing round.

More information regarding other types of transactional projects that we typically take on can be found here .

Regulatory Research and Advice

• A team of Innovation Clinic students invested a substantial portion of our regulatory time this year performing highly detailed and complicated research into public utilities laws of several states to advise a groundbreaking renewable energy technology company as to how its product might be regulated in these states and its clearest path to market. This project involved a review of not only the relevant state statutes but also an analysis of the interplay between state and federal statutes as it relates to public utilities law, the administrative codes of the relevant state executive branch agencies, and binding and non-binding administrative orders, decisions and guidance from such agencies in other contexts that could shed light on how such states would regulate this never-before-seen product that their laws clearly never contemplated could exist. The highly varied approach to utilities regulation in all states examined led to a nuanced set of analysis and recommendations for the client.
• In another significant research project, a separate team of Innovation Clinic students undertook a comprehensive review of all settlement orders and court decisions related to actions brought by the Consumer Financial Protection Bureau for violations of the prohibition on unfair, deceptive, or abusive acts and practices under the Consumer Financial Protection Act, as well as selected relevant settlement orders, court decisions, and other formal and informal guidance documents related to actions brought by the Federal Trade Commission for violations of the prohibition on unfair or deceptive acts or practices under Section 5 of the Federal Trade Commission Act, to assemble a playbook for a fintech company regarding compliance. This playbook, which distilled very complicated, voluminous legal decisions and concepts into a series of bullet points with clear, easy-to-follow rules and best practices, designed to be distributed to non-lawyers in many different facets of this business, covered all aspects of operations that could subject a company like this one to liability under the laws examined, including with respect to asset purchase transactions, marketing and consumer onboarding, usage of certain terms of art in advertising, disclosure requirements, fee structures, communications with customers, legal documentation requirements, customer service and support, debt collection practices, arrangements with third parties who act on the company’s behalf, and more.

Miscellaneous

• Last year’s students built upon the Innovation Clinic’s progress in shaping the rules promulgated by the Financial Crimes Enforcement Network (“FinCEN”) pursuant to the Corporate Transparency Act to create a client alert summarizing the final rule, its impact on startups, and what startups need to know in order to comply. When FinCEN issued additional guidance with respect to that final rule and changed portions of the final rule including timelines for compliance, this year’s students updated the alert, then distributed it to current and former clients to notify them of the need to comply. The final bulletin is available here .
• In furtherance of that work, additional Innovation Clinic students this year analyzed the impact of the final rule not just on the Innovation Clinic’s clients but also its impact on the Innovation Clinic, and how the Innovation Clinic should change its practices to ensure compliance and minimize risk to the Innovation Clinic. This also involved putting together a comprehensive filing guide for companies that are ready to file their certificates of incorporation to show them procedurally how to do so and explain the choices they must make during the filing process, so that the Innovation Clinic would not be involved in directing or controlling the filings and thus would not be considered a “company applicant” on any client’s Corporate Transparency Act filings with FinCEN.
• The Innovation Clinic also began producing thought leadership pieces regarding AI, leveraging our distinct and uniquely University of Chicago expertise in structuring early-stage companies and analyzing complex regulatory issues with a law and economics lens to add our voice to those speaking on this important topic. One student wrote about whether non-profits are really the most desirable form of entity for mitigating risks associated with AI development, and another team of students prepared an analysis of the EU’s AI Act, comparing it to the Executive Order on AI from President Biden, and recommended a path forward for an AI regulatory environment in the United States. Both pieces can be found here , with more to come!

Innovation Trek

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!