solo law practice business plan

Legal Soft Solution is excited to meet you at 35th Annual AILA California Chapters Conference & Webcast on November 10-12 | Learn More

Legal Virtual Staff

• Social Media

Organic Marketing

Law Firm Growth

• Website Development
• LS Press Release
• Press Release

Key Elements of Creating a Business Plan for Solo Practitioners

For solo practitioners in the legal profession, having a well-crafted solo law firm business plan is essential for long-term success. A business plan provides a roadmap to guide your practice, establish goals, and outline strategies for growth and profitability. In this guide, we’ll delve into the essentials of creating a robust solo law firm business plan for solo practitioners. This comprehensive plan includes market analysis, targeted marketing strategies, and accurate financial forecasting, all tailored to the unique challenges and opportunities of running a solo practice.

Executive Summary: Captivating Overview of Your Solo Practice

The executive summary is a critical component of a solo practitioner’s business plan, serving as a succinct and powerful snapshot of the entire document. It condenses the key elements of your business plan into a concise overview that captures the attention of readers and gives them a comprehensive understanding of your solo practice.

Importance of an Executive Summary

As the first section that readers encounter, the executive summary holds significant importance. It acts as a gateway, providing a glimpse into your business and setting the stage for the rest of your business plan. Its purpose is to grab the reader’s attention, highlight the most compelling aspects of your solo practice, and create a positive first impression.

Within the executive summary, you will summarize essential elements of your business plan. This includes identifying and describing your target market, defining your unique selling proposition (USP), and outlining your marketing strategy. By providing a clear and concise summary of these key aspects, the executive summary enables readers to quickly grasp the fundamental elements that make your solo practice distinct and compelling.

Benefits of an Executive Summary

One of the primary benefits of the executive summary is its ability to convey the overall viability and potential of your solo practice to investors, partners, or other stakeholders. It allows them to assess the market opportunity, understand your competitive advantage, and evaluate the feasibility of your business model. The executive summary acts as a persuasive tool, compelling readers to delve deeper into your business plan and consider the opportunities for collaboration, investment, or support.

Furthermore, the executive summary serves as a reference point throughout the business plan. It provides a framework for the subsequent sections, ensuring that the details and strategies discussed align with the overarching goals and objectives outlined in the summary. This cohesiveness and alignment between the executive summary and the rest of the business plan contribute to its effectiveness in conveying a clear and compelling vision for your solo practice.

Market Analysis: Understanding The Legal Landscape

A thorough market analysis is a critical step for solo practitioners when developing a comprehensive business plan. It involves systematically evaluating the market in which your solo practice operates, enabling you to gain a deeper understanding of your target market, competitors, and overall industry dynamics. By conducting a comprehensive market analysis, you can make informed decisions, tailor your services, and effectively position your practice to attract potential clients.

Step 1: Identify Your Target Market

The first step in market analysis is defining your target market, considering demographics, legal needs, and competitive environment. Defining specific individuals or businesses needing your services allows focused marketing and tailored service development. Understanding your target market directs efforts and resources efficiently, enhancing your success potential.

Step 2: Analyze Market Trends

To stay competitive, analyzing market trends that impact your solo practice is essential. Stay informed about changes in the legal landscape, emerging technologies, and evolving client preferences. By monitoring market trends, you can adapt your strategies and stay ahead of the curve. Ensuring that your practice remains relevant and meets the evolving needs of your target market.

Step 3: Identify Your Ideal Client

Identifying your ideal client is essential for effective market analysis and service alignment. Unique characteristics and preferences of the client dictate service tailoring and marketing strategies. Understanding the ideal client enhances targeted messaging and content relevance, ensuring services meet their specific needs. This approach improves client satisfaction and fosters lasting relationships.

Step 4: Assess Demand for Your Services

To effectively gauge market demand for your legal services, an in-depth analysis of the market size is essential. Alongside considering the intensity of competition and growth prospects to fully comprehend the demand landscape for your specialized legal services. Insight into service demand enables the identification of unique niches, growth areas, and distinct opportunities versus your competitors. Through this analysis, strategic choices regarding pricing, services provided, and resource distribution can be made to maintain competitiveness and profitability.

Competitive Analysis: Differentiating Your Practice

Conduct a competitive analysis to understand the strengths and weaknesses of your competitors, both direct and indirect. Identify what sets you apart from others and develop a unique selling proposition (USP) that highlights your strengths and addresses the needs of your target market. Differentiating yourself in a crowded legal market is essential for attracting and retaining clients.

Marketing Strategy: Effective Outreach and Brand Building

Develop a comprehensive marketing strategy that outlines how you will reach and attract potential clients. Consider various marketing channels such as online marketing, networking, referrals, and community involvement. Create a marketing plan that includes tactics for branding, online presence, content creation, and client acquisition. A well-designed marketing strategy will help raise awareness of your solo practice and generate a steady flow of potential clients.

Organizational Structure: Building an Efficient Practice

Consider the organizational structure of your solo practice. Define roles and responsibilities, including support staff or virtual assistants. Create an organizational chart to visualize the structure and ensure you have the necessary resources to run your practice smoothly. Additionally, outline your legal structure (e.g., sole proprietorship or professional corporation) and any regulatory requirements.

Financial Projections: Ensuring Financial Health

Develop financial projections that outline your expected revenue, expenses, and cash flow. Consider factors such as operating costs, pricing strategies, and billing practices. Estimate your potential client base, average case value, and projected growth. This will provide a clear understanding of your practice’s financial health and help you make informed decisions to ensure profitability and sustainability.

Effective Law Firm Incubation Services from Legal Soft

Creating a business plan is a critical step for solo practitioners in the legal industry. It provides a roadmap to navigate the complexities of running a successful practice, attracting potential clients, and achieving long-term growth. 

By incorporating market analysis, marketing strategies, and financial projections, solo practitioners can establish a strong foundation for their legal journey. Remember, a well-crafted business plan is not only a document but also a dynamic tool that guides your decisions and actions as a solo practitioner.

At Legal Soft, we understand the unique challenges faced by solo practitioners in the legal industry. That’s why we offer law firm incubation services , including guidance and support in creating a comprehensive business plan tailored specifically for solo practitioners. 

Book a demo here to get started on creating a business plan that sets you on the path to solo practice success.

Latest Blogs

Legal Accounting Specialist Role: Skills & Duties Guide

Challenges of Producing a Legal Podcast: What You Need to Know

Success in Overseas Staffing: A Conversation with Hamid Kohan of Legal Soft

Law Firm Incubation: The Future of Legal Entrepreneurship

Making Your Website Mobile-Friendly and Why You Need It

How to Grow a Small Law Firm: A Guide for Success (Part 2)

We will contact you as soon as possible, speak with a representative.

• I Work at a Law Firm
• I'm a Virtual Assistant

Book A Demo Now

• Testimonials

Virtual Staffing

• Legal Virtual Assistants
• Virtual Demand Writer
• Virtual Marketing Specialist
• Virtual Assistant Smart Device

Branding and Outreach

• Mobile Apps
• Website Development & Maintenance
• Social Media Management
• Client Survey
• Attorneys Newsletter
• GMB Optimizations
• SMS Campaigns
• Directory Listing
• Legal Virtual Assistant
• Practice Growth
• Practice Setup
• Practice Management
• Lead Generation & Management
• Automated Intake Forms
• Intake Set up
• [email protected]
• (424) 341-4917

Subscribe to Our Newsletter!

• 21731 Ventura Blvd. Suite 100, Woodland Hills, CA 91364

Ⓒ 2023 Legal Soft - All Rights Are Reserved

Legal soft sponsoring the annual state bar of arizona 2024 convention.

Visit us at booth #3 , June 12th to 14th.

Sheraton Grand at Wild Horse Pass. 5594 W Wild Horse Pass Blvd, Phoenix, Arizona

• Legal Research
• En Español

Start Your Practice

• For Legal Professionals
• Member Support
• Practice Management Assistance
• Start Your Own Practice

Want to Start Your Own Law Practice?

You're in good company.  In the most recent WSBA licensing cycle, 44% of respondents identified as a solo or small-firm practitioner.

But keep in mind that practicing law and running a law office are two very different things, even if you have previous experience in a law firm.

Do not accept new matters until you lay the foundation for your new practice. This means setting goals, obtaining business licenses, finding services and technology, and setting up workflow systems.

Fortunately, there are resources to help you navigate the process:

Start with the Basics

Review wsba guides, get personalized advice, find software and services, consider buying a practice.

Don't see what you're looking for? Contact us .

1. Create a Business Plan

A business plan is a road map to guide your marketing campaigns, networking, and business formation. It should include your fee arrangements, budgets, business strategies, etc.

More information:

The U.S. Small Business Administration   |  Tools and tips for opening a business Small Business Toolkit  | a useful toolkit on BizFillings.com SCORE.org  | a website dedicated to helping people start, run, and grow a business

2. Form a Business Entity

Accepting fees for your services means that you must acquire a business license from the state of Washington and for from the municipality where your practice is located or conducts business.

State of Washington Business Licensing Service   |  Learn about business entity formation and licensing Small Business Guide   |  Licensing guide from the state of Washington

3. Set Up Your Bank and IOLTA Accounts

Banks often ask for your Federal Identification Number (EIN) before you can open a business checking account or a trust (IOLTA) account.

Visit our  IOLTA and Client Trust Accounts page.

Legal Foundation of Washington   |  See the list of financial institutions that are eligible to provide trust accounts

Back to top

Review WSBA Guides and Templates

These free guides are available online to help you learn more about practice management.

To view all of the WSBA practice management guides, visit our Guides page .

Receive Personalized Advice

Members of the WSBA are eligible for free, 30-minute confidential consultations by phone or Microsoft Teams. Visit our consultation page to learn more.

Check out the WSBA  Practice Management Discount Network for discounts on products and services you can use in your practice.

American Bar Association |  Start-Up Tech for Any Budget

ABA Law Practice Division |  Legal Technology Resource Center

Washington State Bar News | Technically Speaking  (article on choosing technology services)

If you’re considering going solo, you might be interested in purchasing an established practice from another attorney who is retiring or transitioning to another field.

For more information, visit our page on buying a practice .

NWSidebar Blog Washington State Bar News Magazine

Toll-free: 800-945-9722    Local: 206-443-9722 Ethics Line: 206-727-8284 Email:   [email protected] Webmaster: [email protected] Washington State Bar Association 1325 Fourth Ave., Suite 600, Seattle, WA 98101-2539

© 2024 Washington State Bar Association, all rights reserved.

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.

Level Up Your Brand

Book a Free Consultation

— 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.

Let us help you create a digital marketing strategy and a growth plan

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.

You May Also Like

Law Firm Marketing Budget: How Much Should You Spend?

Unlocking the Secrets of Law Firm Partnership Structures: A Must-Read Guide for Success-Driven Lawyers

Lawyers Against Unbillable Hours: Joshua Lennon Maximizes Attorney Billable Hours

How to Start a Law Firm in 2024 and Succeed

Starting a Law Firm: LLP vs. PC

Don't just wait for clients, attract them!

Get our FREE Marketing Audit to find bold new ways to boost your caseload.

Contact us today to speak with one of our experts and learn more about how we can help you grow your firm.

Stay ahead of the competition!

Compare your law firm's performance to Local competitors with our instant assessment tool

Get a clear picture of your firm's performance

Boost your online presence

Solo Law Practice Business Plan [Sample Template]

By: Author Joy Nwokoro

Home » Business Plans » B2C Sector

A solo law practice is a type of legal business structure where a single lawyer operates and manages their law firm independently.

In this setup, the lawyer is solely responsible for all aspects of the practice, including legal work, client management, administrative tasks, marketing, and business development. Solo practitioners can focus on a specific practice area or offer a range of legal services based on their expertise.

Some choose to specialize, while others prefer to provide general legal services to a broader client base. Some solo practitioners may eventually decide to expand their practice by hiring associates or forming partnerships. This can lead to growth in the business and the ability to handle more complex cases.

Suggested for You

• Interior Design Business Plan [Sample Template]
• Personal Grocery Shopper Business Plan [Sample Template]
• Special Needs Daycare Business Plan [Sample Template]
• Shoe Repair Business Plan [Sample Template]
• Sandblasting Business Plan [Sample Template]

Steps on How to Write a Solo Law Practice Business Plan

Executive summary.

John Justin® Solo Law Practice, LLC is a distinguished legal firm based in Detroit, Michigan, dedicated to providing comprehensive legal solutions to individuals and businesses across a wide range of practice areas. Founded by John Justin, an accomplished attorney with a proven track record, our firm is committed to delivering personalized, efficient, and effective legal services tailored to the unique needs of our clients.

As we continue to build our reputation as a trusted legal partner in Detroit, John Justin® Solo Law Practice, LLC aims to expand its practice areas, increase community engagement, and potentially explore opportunities for strategic partnerships to enhance our service offerings.

Company Profile

A. our products and services.

At John Justin® Solo Law Practice, LLC, we offer a diverse array of legal services, including but not limited to:

Civil Litigation: Skilled representation in civil disputes, ensuring the protection of our client’s rights and interests.

Business Law: Expert guidance in business formation, contracts, transactions, and general counsel services.

Family Law: Compassionate support in family-related matters, including divorce, child custody, and spousal support.

Real Estate Law: Proficient assistance in real estate transactions, property disputes, and landlord-tenant matters.

Estate Planning: Tailored estate planning strategies to secure our clients’ legacies and provide for their loved ones.

Personal Injury: Aggressive advocacy for individuals who have suffered personal injuries due to negligence.

b. Nature of the Business

Our solo law practice business will operate the business-to-consumer and business-to-business model.

c. The Industry

John Justin® Solo Law Practice, LLC will operate in the legal services industry.

d. Mission Statement

At John Justin® Solo Law Practice, LLC, our mission is to provide unwavering dedication to our client’s legal needs through personalized, compassionate, and expert legal counsel. We are committed to upholding the highest standards of integrity, professionalism, and excellence in every case we handle.

Our aim is to not only deliver favorable outcomes but to also build enduring attorney-client relationships founded on trust, understanding, and exceptional service.

e. Vision Statement

Our vision at John Justin® Solo Law Practice, LLC is to be recognized as a leading force in the legal landscape, known for our client-centric approach, legal prowess, and commitment to justice. We envision a future where individuals and businesses can confidently turn to us for comprehensive legal solutions, knowing that they will receive the utmost attention, respect, and expertise.

f. Our Tagline (Slogan)

John Justin® Solo Law Practice, LLC – “Advocating Your Rights, Guiding Your Journey”

g. Legal Structure of the Business (LLC, C Corp, S Corp, LLP)

John Justin® Solo Law Practice, LLC will be formed as a Limited Liability Company (LLC).

h. Our Organizational Structure

• Chief Legal Officer (Owner)
• Administrative Staff (Contract)
• Customer Care Executive (Contract/Virtual)

i. Ownership/Shareholder Structure and Board Members

• John Justin (Owner and Chairman/Chief Executive Officer) 100 Percent Shares

SWOT Analysis

A. strength.

• Founder John Justin brings extensive legal knowledge and experience to the practice.
• Ability to provide individualized attention and tailored solutions to clients.
• Commitment to upholding the highest standards of integrity and professionalism.
• Building strong attorney-client relationships based on trust and understanding.
• Strategically located in Detroit, serving a diverse and potentially growing client base.

b. Weakness

• As a solo practice, resources for handling multiple cases and tasks may be constrained.
• Solely dependent on the founder’s availability and capacity to manage the practice.
• Fewer colleagues within the practice for collaboration and knowledge-sharing.
• Facing competition from larger firms with broader resources and areas of practice.
• Challenges in managing workload and personal time due to the nature of solo practice.

c. Opportunities

• Opportunities to focus on specific practice areas and become a go-to expert.
• Increasing demand for legal services in the Detroit area.
• Opportunities to become involved in local events and initiatives.
• Collaborations with other professionals for cross-referrals.
• Integration of legal tech tools to enhance efficiency and client service.

i. How Big is the Industry?

The solo law practice services industry is a niche segment within the legal services industry hence it is not considered a big line of business.

ii. Is the Industry Growing or Declining?

The solo law practice services industry, like the broader legal services industry, tends to have variations based on factors such as economic conditions, legal trends, technological advancements, and societal changes.

Historically, solo law practices have experienced both growth and challenges. On one hand, the personalized approach and often lower overhead costs of solo practitioners can be appealing to certain clients, and solo practitioners can offer specialized services or focus on niche markets.

On the other hand, they might face difficulties in terms of competing with larger firms, managing the workload of a sole practitioner, and keeping up with technological advancements.

iii. What are the Future Trends in the Industry?

Solo law practitioners are increasingly adopting legal technology to streamline their operations. This includes case management software, document automation tools, online billing systems, and virtual meeting platforms. Technology can enhance efficiency, improve client communication, and reduce administrative burdens.

The COVID-19 pandemic accelerated the adoption of remote work and virtual services in the legal industry. Many solo practitioners started offering virtual consultations, remote client meetings, and online document signing. This trend may continue as clients become accustomed to these conveniences.

Solo practitioners are finding success by specializing in specific practice areas or niches. Focusing on a specialized area of law allows them to position themselves as experts and attract clients seeking tailored solutions. Clients are increasingly seeking transparency and value in legal services.

Solo practitioners are exploring alternative fee arrangements, such as flat fees, subscription models, and unbundled services, to provide cost-effective options and predictability for clients.

iv. Are There Existing Niches in the Industry?

No, there are no existing niches when it comes to solo law practice business because solo law practice is a niche idea in the legal services industry.

v. Can You Sell a Franchise of Your Business in the Future?

John Justin® Solo Law Practice, LLC will not sell franchises in the near future.

• Fluctuations in the economy affect clients’ ability to afford legal services.
• Changes in laws and regulations impacting practice areas and services.
• Pressure from larger firms and new entrants in the legal market.
• Meeting evolving client expectations for quick responses and digital interaction.
• Potential for burnout due to the demands of managing a solo practice.

i. Who are the Major Competitors?

In the solo law practice services industry, solo practitioners often compete with a variety of legal service providers, each with their own strengths and areas of expertise. Here are some of the major competitors that solo law practitioners might encounter:

• Online Legal Service Platforms
• Legal Process Outsourcing (LPO) Companies
• Virtual Law Firms
• Freelance Attorneys
• Legal Aid Organizations
• DIY Legal Solutions
• Public Defenders and Government Attorneys
• Consultants and Advisors
• Large Law Firms .

ii. Is There a Franchise for Solo Law Practice Business?

No, there are no franchise opportunities for solo law practice business.

iii. Are There Policies, Regulations, or Zoning Laws Affecting Solo Law Practice Business?

Yes, there are various policies, regulations, and zoning laws that can affect the operation of a solo law practice business in the United States. However, it’s important to note that these regulations can vary depending on the state, and local jurisdiction, and the specific nature of the legal services being provided.

Most jurisdictions require businesses, including solo law practices, to obtain the necessary business licenses and permits to operate legally. These licenses can vary depending on the location and the legal structure of the business (sole proprietorship, LLC, etc.).

Attorneys are required to be licensed by the state bar association to practice law. Each state has its own bar association, and attorneys must meet specific educational, ethical, and professional requirements to obtain and maintain their law licenses.

Rules for attorney advertising and solicitation vary by state and are regulated by state bar associations. Attorneys must adhere to guidelines regarding truthful and non-deceptive advertising, as well as restrictions on certain types of solicitation.

Attorneys are bound by ethical rules and guidelines established by state bar associations. These rules cover areas such as conflicts of interest, client confidentiality, and professional conduct.

Attorneys often deal with sensitive client information. There may be federal and state regulations related to data privacy and security, such as the Health Insurance Portability and Accountability Act (HIPAA) and state data breach notification laws.

Marketing Plan

A. who is your target audience.

i. Age Range: Adults, primarily ranging from 25 to 65 years old.

ii. Level of Education: Generally, individuals with at least a college degree or higher, as legal services often involve complex matters that require a certain level of education to understand.

iii. Income Level: Middle to upper-middle-income individuals and families, as legal services can be a significant investment. However, our practice’s specialization might also attract clients from various income levels.

iv. Ethnicity: This can vary based on our geographical location. Our practice could potentially serve a diverse range of ethnic backgrounds, depending on the demographics of our area.

v. Language: Primarily English-speaking clients, but if our area has a diverse population, offering services in multiple languages could be an advantage.

vi. Geographical Location: Detroit, Michigan, and its surrounding areas. Our primary focus would likely be on clients within our immediate geographic vicinity, but we might also attract clients from nearby suburbs or communities.

vii. Lifestyle: Our target audience might consist of individuals who value professional services and are seeking personalized legal assistance. They might have various lifestyles, including professionals, business owners, families, and retirees.

b. Advertising and Promotion Strategies

• Content marketing
• Deliberately Brand Our Office Facility
• Email marketing
• Events and sponsorships
• Pay-per-click (PPC) advertising
• Referral marketing
• Search engine optimization (SEO).

i. Traditional Marketing Strategies

• Broadcast Marketing -Television & Radio Channels.
• Marketing through Direct Mail.
• Print Media Marketing – Newspapers & Magazines.
• Out-of-home (OOH) advertising – Public transit like Buses and Trains, Billboards, Street shows, and Cabs.
• Leverage direct sales, direct mail (postcards, brochures, letters, fliers), tradeshows, print advertising (magazines, newspapers, coupon books, billboards), referral (also known as word-of-mouth marketing), radio, and television.

ii. Digital Marketing Strategies

• Affiliate Marketing
• Content Marketing.
• Email Marketing.
• Influencer Marketing.
• Mobile Marketing.
• Social Media Marketing Platforms.
• Search Engine Optimization (SEO) Marketing.

iii. Social Media Marketing Plan

• Create a personalized experience for our customers and their families.
• Create an efficient content marketing strategy.
• Create a community for our target market and potential target market.
• Create profiles on relevant social media channels.
• Gear up our profiles with a diverse content strategy.
• Start using chatbots.
• Run cross-channel campaigns.
• Use brand advocates.

c. Pricing Strategy

John Justin® Solo Law Practice, LLC’s pricing strategy will consider factors such as the cost of value of service offering, and the level of competition in the market. We will also analyze the competition’s pricing and services to ensure the business remains competitive while maintaining profitability. Here is our pricing strategy:

• Tiered Pricing
• All-Inclusive Pricing
• Ala Carte Pricing
• Move-In Specials
• Long-Term Contracts

Sales and Distribution Plan

A. sales channels.

John Justin® Solo Law Practice, LLC will utilize various sales channels to reach and acquire customers. Our sales channels will include both direct and indirect channels.

We will employ a direct sales approach where its representatives proactively engage with potential customers through in-person meetings, presentations, and events. This approach allows for direct communication and relationship-building with individuals and businesses interested in solo law practice services.

We will collaborate with other legal service providers, employers, insurance companies, and non-profit organizations. Building partnerships allows for cross-promotion, referrals, and access to a wider customer base. These partnerships can be established through networking, industry events, and targeted outreach.

John Justin® Solo Law Practice, LLC will evaluate and prioritize the most effective sales channels based on their target audience, market dynamics, and available resources.

b. Inventory Strategy

Our inventory strategy will involve managing and tracking the availability of essential office supplies and equipment. The inventory strategy should involve maintaining an adequate stock of these items to ensure smooth operations.

The strategy will also involve setting par levels for inventory, monitoring usage, and ordering supplies in advance to ensure that there are no shortages. We will also implement software systems to automate inventory management and improve efficiency.

Having effective inventory management will help ensure that residents receive high-quality care while reducing waste and minimizing costs for the business.

c. Payment Options for Customers

Here are the payment options that John Justin® Solo Law Practice, LLC will make available to her clients;

• Apple Pay and Google Wallet
• Gift cards and store credit
• Credit and debit cards
• Installment payments
• Cash on service delivery.

d. Return Policy, Incentives, and Guarantees

As a legal services provider, the concepts of return policies, incentives, and guarantees might work a bit differently compared to traditional retail businesses. Here’s how we will approach these aspects for John Justin® Solo Law Practice, LLC:

Return Policy

Legal services are typically not products that can be returned in the same way as physical goods. However, we will focus on client satisfaction and ensuring that our clients feel they are receiving value for their investment. If a client expresses dissatisfaction with our services, we could consider offering to review their case and address any concerns they have.

Instead of traditional incentives like discounts or promotions, we will offer value-added services or special consultations. For instance, we will provide a free initial consultation to assess a potential client’s case or offer a complimentary legal resource guide related to our practice area.

Guarantees in the legal field can be tricky due to the complexities and uncertainties of legal outcomes. Instead, we will emphasize our dedication to providing high-quality representation, ethical practices, and a commitment to pursuing the best possible outcomes for our clients.

e. Customer Support Strategy

• Developing a strong customer support strategy is essential for providing excellent service and building lasting relationships with our clients.
• We will provide multiple communication channels such as phone, email, and potentially live chat.
• Set clear response time expectations for different types of inquiries.
• Ensure that all communications are professional, respectful, and easy to understand.
• We aim to respond to client inquiries and messages promptly, ideally within 24 hours.
• Prioritize urgent matters and emergencies, showing clients that we’re there when they need us.

Operational Plan

Creating a comprehensive operational plan is crucial for the successful functioning of John Justin® Solo Law Practice, LLC. This plan outlines the day-to-day activities, processes, and procedures that will help us achieve our business goals.

• We have defined the specific practice areas we will focus on, outlining our expertise and services.
• We will outline the process of gathering client information, assessing their needs, and initiating engagement agreements.
• We will detail how we will manage cases, including documentation, research, and communication.
• We will provide regular updates to clients about the status of their cases or matters.
• We have an outline of how we will handle document storage, organization, and security, especially for sensitive client information.

a. What Happens During a Typical Day at a Solo Law Practice Business?

A typical day at a solo law practice business can vary greatly depending on the specific practice areas, client demands, and the lawyer’s preferences.

Remember, flexibility is key in a solo law practice. Some days might be more focused on client meetings, while others might involve extensive legal research or document drafting. Adapting to the changing needs of your clients and your practice is essential for success.

b. Production Process

There is no production process when it comes to solo law practice business.

c. Service Procedure

• Potential clients contact your practice through phone, email, or your website to inquire about your legal services.
• Schedule an initial consultation to discuss the potential client’s legal needs, gather information about their case, and assess whether you can assist them.
• If both parties agree to move forward, provide the potential client with an engagement agreement that outlines the scope of services, fees, and other terms
• Draft legal documents, contracts, agreements, pleadings, or other necessary paperwork based on the case requirements
• File necessary documents with the court, and attend hearings, trials, or other legal proceedings as required.
• Work towards achieving a settlement or resolution that aligns with the client’s goals and best interests.
• Ensure all legal documents are properly finalized and submitted to relevant parties.
• Prepare invoices for the services provided, detailing the fees and expenses incurred.
• Safely store and retain client-related documents and information according to legal requirements and ethical standards.

d. The Supply Chain

A supply chain is not applicable to a solo law practice business.

e. Sources of Income

John Justin® Solo Law Practice, LLC generates income by offering solo law practice services.

Financial Plan

A. amount needed to start your solo law practice business.

John Justin® Solo Law Practice, LLC would need an estimate of $30,000 to successfully set up our solo law practice business in the United States of America. Please note that this amount includes the salaries of all our staff for the first month of operation.

b. What are the Cost Involved?

• Business Registration Fees – $750.
• Legal expenses for obtaining licenses and permits – $1,300.
• Marketing, Branding, and Promotions – $1,000.
• Insurance – $1,400.
• Rent/Lease – $10,000.
• Other start-up expenses include commercial satellite TV subscriptions, stationery ($500), and phone and utility deposits ($2,800).
• Operational Cost (salaries of employees, payments of bills et al) – $10,000
• Furnishing and Equipment – $5,000
• Website: $600
• Miscellaneous: $1,000

c. Do You Need to Build a Facility? If YES, How Much will it cost?

John Justin® Solo Law Practice, LLC will not build a new facility for our solo law practice business; we intend to operate from a shared office space.

d. What are the Ongoing Expenses for Running a Solo Law Practice Business?

• Office Space
• Monthly costs for electricity, water, heating, cooling, and reliable internet connection.
• Expenses for stationery, pens, paper, printers, computers, software, and other office essentials.
• Subscription fees for legal research databases, case management software, document management tools, and billing software.
• Marketing and Advertising
• Fees for bar association memberships, legal organizations, and networking groups.
• Costs for phone services, email hosting, and virtual meeting platforms.
• If you need to travel to court, client meetings, or other locations, consider fuel, parking, and public transportation costs.
• Miscellaneous Expenses

e. What is the Average Salary of your Staff?

• Chief Legal Officer (Owner) – $42,000 Per Annum
• Administrative Staff – $24,000 Per Annum
• Customer Care Executive – $24,000 Per Annum

f. How Do You Get Funding to Start a Solo Law Practice Business?

• Raising money from personal savings and sale of personal stocks and properties
• Raising money from investors and business partners
• Sell shares to interested investors
• Applying for a loan from your bank/banks
• Source for soft loans from your family members and friends.

Financial Projection

A. how much should you charge for your product/service.

Solo practitioners’ hourly rates can range from $100 to $400 or more, depending on the factors mentioned above. Flat fees can vary greatly based on the nature of the legal service. For example, simple document drafting might cost a few hundred dollars, while complex litigation representation could be several thousand dollars or more.

b. Sales Forecast?

• First Fiscal Year (FY1): $120,000
• Second Fiscal Year (FY2): $160,000
• Third Fiscal Year (FY3): $180,000

c. Estimated Profit You Will Make a Year?

• First Fiscal Year (FY1) (Profit After Tax): 25%
• Second Fiscal Year (FY2) (Profit After Tax): 30%
• Third Fiscal Year (FY3) (Profit After Tax): 35%

d. Profit Margin of a Solo Law Practice Business 

The ideal profit margin we hope to make at John Justin® Solo Law Practice, LLC will be between 20 and 35 percent on each job carried out irrespective of the distance covered.

Growth Plan

A. how do you intend to grow and expand by opening more retail outlets/offices or selling a franchise.

John Justin® Solo Law Practice, LLC will grow our solo law practice business by partnering with other solo law practitioners in our city.

b. Where do you intend to expand to and why?

John Justin® Solo Law Practice, LLC plans to expand to;

• Phoenix, Arizona
• San Diego, California
• Houston, Texas
• Seattle, Washington
• Denver, Colorado
• Portland, Oregon
• Charlotte, North Carolina
• Indianapolis, Indiana
• Nashville, Tennessee
• Atlanta, Georgia.

The cities listed above have a viable market for solo law practice services, which is why we want to expand to these locations.

The founder of John Justin® Solo Law Practice, LLC aims to exit the company through a merger and acquisition. We wish to merge with a global solo law practice firm so that when the founder retires, the company’s management can be placed in trusted hands.

How to Write a Law Firm Business Plan + Free Sample Plan PDF

Elon Glucklich

6 min. read

Updated April 3, 2024

Free Download:   Sample Law Firm Business Plan Template

It’s a dynamic time to be in the legal industry. Over 63,000 new attorneys have started practicing in the U.S. in the past decade, and they’re joining law firms that are increasingly leveraging new technologies like AI to work more efficiently.

Owning your own law practice offers numerous advantages, from greater control of your caseloads to flexibility in setting billing rates. 

But running a successful firm requires more than a deep knowledge of the law. 

You need to market yourself, understand potential clients’ motivations and desires, and clearly explain to them why they should hire you over another firm. All of which you can figure out by going through the process of writing a business plan.

• What should you include in a law firm business plan?

Here are a few sections we recommend including in any law firm business plan:

Executive summary

Market analysis, marketing plan, company overview, financial plan.

The details of your plan will vary based on factors like the size of your legal practice and whether or not you need funding

If you’re seeking a bank loan or investment, you’re best off following the traditional approach to writing a business plan . Otherwise, don’t feel bound to writing a full plan. You can just focus on the business plan sections that are most relevant to your situation. 

The executive summary is your opening pitch to the reader. Although it comes first in a business plan, you should write it last, since it distills your entire plan into a concise, one- to two-page overview. 

Start by outlining your law firm’s focus and current status. Are you:

• A newly founded practice
• An established firm seeking expansion
• A multi-location enterprise

Then, summarize your practice areas and target clientele. Describe the issues you’re solving for potential clients, and why they should choose you over competitors. 

Maybe your team has experience that’s relevant to your ideal client, or you offer an appealing fee structure. Anyone who reads the executive summary should be able to understand what makes your law firm unique .

Your executive summary briefly touches on your law firm’s area of focus. But the services section is where you give readers a detailed look at the expertise your legal practice offers, and how you address specific client needs.

What are your core practice areas? Do you represent:

Businesses: Contract disputes, regulatory compliance, employment law issues

Individuals: Personal injury claims, divorce proceedings, estate planning

Simply list all of your legal services. If you run an existing law practice, you can mention your existing client base. Also, specify if your law firm specializes in courtroom litigation, drafting contracts, or legal advisory services.

When writing out your services, consider what sets your firm apart. Maybe you provide free or low-cost initial consultations or specialize in areas underserved by competitors. Any services that might give you a competitive advantage are worth mentioning.

Understanding your potential client base is vital. Do you know the size of your market ? What are their characteristics? 

To conduct a market analysis , start by profiling your ideal client. Consider basic demographic information , like their:

• Income level
• Geographic location

Take their life circumstances into account as well. Are they navigating events like:

• Recovering from an injury
• Being charged with a crime
• Running a business
• Planning an estate

Depending on their circumstances, you’ll need to research relevant trends in your area to determine whether there’s a growing demand for the services you offer. 

Document who your competitors are as well. What other law firms might potential clients turn to? Note their strengths and weaknesses and compare them to your own in your market analysis. 

This research will help you develop a unique value proposition—something only your firm offers that you can emphasize in your marketing strategy.

The marketing and sales plan is where you describe how you will stand out and attract clients.

Where are your potential clients seeking out legal information? Common channels for law firms to market their services include:

• Television and radio commercials
• Print and online advertisements
• Company website

You’ll likely want to consider a combination of these tactics. 

But before spending your marketing budget, take some time in your business plan to determine how you’ll position yourself. If you’ve determined your law practice’s unique value proposition , it should be incorporated into all of your messaging.

Say you offer a unique combination of legal services in your market, such as financial compliance services for businesses and high-net-worth individuals. Your marketing plan is where you develop engaging messaging around your services that are tailored to your ideal client and the medium you’re promoting your services on.

Examples could include:

• Hiring a video production team to film a commercial for your legal practice
• Ensuring your law firm’s website is optimized for visibility on search engines.
• Creating pamphlets highlighting your service to distribute at business networking events or places where high net worth individuals frequent, like upscale health clubs or financial advisory offices.

One key point to remember is that the legal profession has specific marketing restrictions, to ensure law firms are promoting their services in an honest, ethical way. Make sure your plans adhere to the bar association’s guidelines .

The company overview isn’t an exhaustive history of your firm’s experience. It’s meant to quickly give the reader an understanding of your background, experience, and the structure of your firm.

Start with the basics:

Founding date: When was the firm established?

Legal structure: Is it a partnership, LLC, corporation, or other structure?

Location(s): List the communities your firm serves

Provide some detail about you and your team as well:

Founding partners: Summarize their legal experience, specializations, and any notable accomplishments.

Key Associates & staff: Briefly outline their roles and credentials

If your legal practice is already established, note any milestones you’ve achieved, such as major cases or community recognition. But even if you’re just starting, listing milestones like securing office space or building an initial client base are worth noting here as well.

Your law firm’s financial plan is crucial to determining if you have a strategy for running a viable business over the long term. 

Here’s a breakdown of what you need:

Sales forecast : Project revenue based on billable hours, retainer fees, contingency cases (if applicable), and any other income sources. Be realistic, especially in the early stages.

Expense budget : List all of your costs, including:

• Salaries and benefits:
• Rent and office expenses
• Malpractice insurance and bar dues
• Technology (i.e. case management software)
• Marketing and client development

Profit & Loss (P&L) : Your income minus your expenses, showing if you expect to be profitable.

Cash flow statement : Predicts when cash comes in and goes out of your business. Cash flows are crucial to ensure you can cover bills and payroll.

Balance sheet : An overview of your law practice’s financial health, listing assets (cash, accounts receivable), liabilities (loans), and equity.

If you’re seeking outside financing to start your legal practice, list startup costs like office build-outs, initial marketing, and technology investments separately from your expenses, since these are areas you’ll be looking to fund with lender or investor funds.

Additionally, be clear about assumptions you’re making when forecasting your revenue streams (case volume, hourly rates, etc.). Researching similar law firms can help you ensure your projections are reasonable.

• Download your free law firm sample business plan

Download our law firm sample business plan for free right now and use it for reference as you write your own plan. You can even copy and paste sections from the sample plan and customize them for your business. Just make sure you’re taking the time to do your own research.

You can also view other legal business plans , or browse the full Bplans library of over 550 sample business plans across numerous industries.

Brought to you by

Create a professional business plan

Using ai and step-by-step instructions.

Secure funding

Validate ideas

Build a strategy

Elon is a marketing specialist at Palo Alto Software, working with consultants, accountants, business instructors and others who use LivePlan at scale. He has a bachelor's degree in journalism and an MBA from the University of Oregon.

Table of Contents

Related Articles

18 Min. Read

How to Write a Business Plan for a Subscription Box Service

10 Min. Read

How to Write a Business Plan for a Retail Clothing Boutique

6 Min. Read

How to Write a Fix-and-Flip Business Plan + Free Template PDF

8 Min. Read

How to Write a Trucking Business Plan + Example Templates

The Bplans Newsletter

The Bplans Weekly

Subscribe now for weekly advice and free downloadable resources to help start and grow your business.

We care about your privacy. See our privacy policy .

The quickest way to turn a business idea into a business plan

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

No thanks, I prefer writing 40-page documents.

Discover the world’s #1 plan building software

• 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.

Related Posts

Law Firm Financial Plan

How to Write a Business Plan for Loan

Notary Business Plan

Bookkeeping Business Plan

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

Plan your business in the shortest time possible

No Risk – Cancel at Any Time – 15 Day Money Back Guarantee

Create a great Business Plan with great price.

• 400+ Business plan templates & examples
• AI Assistance & step by step guidance
• 4.8 Star rating on Trustpilot

Streamline your business planning process with Upmetrics .

Log in to Lawyerist.com

Not a Subscriber yet? Register here. (It's free!)

Username or Email Address

Remember Me

Forgot your password? Reset it here.

Subscribe to Lawyerist

Back to login.

• Hidden Date MM slash DD slash YYYY
• Name * First Last
• Password * Enter Password Confirm Password
• United States
• Which state is your firm's primary location? * Pick one. Alabama Alaska American Samoa Arizona Arkansas California Colorado Connecticut Delaware District of Columbia Florida Georgia Guam Hawaii Idaho Illinois Indiana Iowa Kansas Kentucky Louisiana Maine Maryland Massachusetts Michigan Minnesota Mississippi Missouri Montana Nebraska Nevada New Hampshire New Jersey New Mexico New York North Carolina North Dakota Northern Mariana Islands Ohio Oklahoma Oregon Pennsylvania Puerto Rico Rhode Island South Carolina South Dakota Tennessee Texas Utah U.S. Virgin Islands Vermont Virginia Washington West Virginia Wisconsin Wyoming Armed Forces Americas Armed Forces Europe Armed Forces Pacific State
• Which province is your firm's primary location? * Pick one. Alberta British Columbia Manitoba New Brunswick Newfoundland and Labrador Northwest Territories Nova Scotia Nunavut Ontario Prince Edward Island Quebec Saskatchewan Yukon Province
• What is the size of your firm? * Pick one. Solo practice Small firm (2–15 lawyers) Medium or large firm (16+ lawyers) I do not work at a law firm
• What is your role at your firm? * Pick one. Owner/partner Lawyer Staff Vendor (web designer, consultant, etc.) I do not work at a law firm
• What is your primary practice area? * Pick one. Bankruptcy Civil litigation (non-PI) Class Action Collections Corporate Criminal Education Employment Estate planning, probate, or elder Family General practice Immigration International Landlord/Tenant Mediation/ADR Personal injury Real estate Small business Sports/Entertainment Tax Trademark/IP Other I do not work in law
• Legal Technology Products and Services
• Building a Healthy Firm
• Comments This field is for validation purposes and should be left unchanged.

You have read all five of your free articles this month. To read this article, log in or register.

• Email This field is for validation purposes and should be left unchanged.

Legal product reviews and business guidance from industry experts.

19 Mar 2020

How to Write Your Law Firm Business Plan

By Cari Twitchell

News Articles Healthy Strategy

Every new law practice needs a business plan . This is a guide to creating one.

Here is what should go in your business plan once you’ve decided about your law firm business model.

Section One: Executive Summary

This section provides a succinct overview of your full plan. It should also include the following:

• Mission statement.  This statement should be one or two sentences at most, so you can quickly state it off the top of your head at any given moment. It should clearly state your value and offer inspiration and guidance, while being plausible and specific enough to ensure relevancy. For further direction on how to write a mission statement, read this Entrepreneur article .
• Core values.  Your core values outline the strategy that underpins your business. When written well, they help potential employees and clients understand what drives you every day. When written incorrectly, they include meaningless platitudes that become yet another thing forgotten or ignored during practice. To pack the most punch into your core values, write them as actionable statements that you can follow. And keep them to a minimum: two to four should do just fine. You can read more about writing core values at  Kinesis .
• What sets you apart.  If you are like every other attorney out there, how will you stand out? This is known as your unique selling proposition (USP). What is it that will convince clients to turn to you instead of your competition? By clearly stating your USP, you identify what it is about your firm that will ensure your success.

Are you feeling slightly overwhelmed by all of this? Then write this section last, as you’ll find much of what you write here is a summary of everything you include in subsequent sections.

Section Two: Company Description

Write a succinct overview of your company. Here is what it should cover:

• Mission statement and values.  Reiterate your mission statement and core values here.
• Geographic location and areas served.  Identify where your offices are located and the geographic areas that you serve.
• Legal structure and ownership. State whether you are an LLC, S-Corp or other legal entity. If you are something other than a sole proprietor, identify the ownership structure of your firm. How does your law firm business model influence the ownership type?
• Firm history.  If you are writing or updating a plan for a law firm already in existence, write a brief history that summarizes firm highlights and achievements.

This section is often the shortest. Do not spend much time or space here. Touch on the major points and move on.

Section Three: Market Analysis

Done correctly, a well thought out market analysis will help you identify exactly what your potential clients are looking for and how much you should charge for your services. It also enables you to identify your competitors’ weaknesses, which in turn helps you best frame your services in a way that attracts your preferred clientele. You probably already considered some of these subjects when deciding on the small law firm business model, but you need to document them.

Elements of a market analysis include:

• Industry description.  Draft up a summary that encompasses where your particular legal niche is today, where it has been, and which trends will likely affect it in the future. Identify everything from actual market size to project market growth.
• Target audience.  Define your target audience by building your ideal client persona. Use demographics such as location, age, family status, occupation and more. Map out the motivations behind their seeking your services and then how it is you are best able to satisfy their requirements.
• Competitive analysis.  This is where you dive into details about your competitors. What do they do well? Where do they fall short? How are they currently underserving your target market? What challenges do you face by entering legal practice in your field of choice?
• Projections.  Provide specific data on how much your target audience has to spend. Then narrow that down to identify how much you can charge per service.

A proper market analysis includes actual data to support your analysis. If you are unsure of where to find data, Bplans  has a great list of resources for you to use. And if you would like to read further about conducting a market analysis, check out this article from the Small Business Administration.

Section Four: Organization & Management

This section goes into detail about you and any others who may have ownership interest in the firm. The small law firm business model section here should incorporated into the management documentation. Do not be afraid to brag a bit!

• What is your educational background?
• What experience do you currently have?
• Why are you the right person to run your firm?

If there are other individuals involved, it is a good idea to insert your organizational chart here. Visuals help quickly convey information and break up otherwise blocky text.

Section Five: Services

The Services section is the heart of your law firm business model plan. It is where you dive into all aspects of your services, including:

• The problem(s) you are addressing.  What pain points do your preferred clients experience? What can they do right now to alleviate those pain points? Answer these questions, and then take the extra step to explain how those current solutions fail to adequately address their problems.
• The solution(s) you are providing.  This describes how your solutions better resolve your prospective market’s needs. This not only includes the actual work you do, but the benefits that each client will receive based on your work.
• An overview of your competition.  Describe your competition here. For instance, which other solo attorneys and firms provide the same solutions as you? What are your advantages over these competitors? What do you differently when providing your solutions? How will clients gain additional benefits by seeking out your services instead of working with your competitors?

Section 6: Marketing Strategy

Your marketing strategy section needs to address the three P’s:

• Positioning.  How will you position your law firm and your services? What will you say to present your practice in the best light? What short statements can you use to entice a potential client to pursue your services?
• Pricing.  How much will you charge? How does that fit within the legal industry? Within your niche industry? What do clients receive for that price?
• Promotion.  Which sales channels and marketing activities will you pursue to promote your practice? Who is in charge of these activities? Even if you plan to build your law firm on the basis of word-of-mouth referrals, you must remember that most referrals will still look for information about you before contacting you. Know where they will look and ensure you are there.

Section Seven: Financials

Last comes the financials section. It is the key component to your plan if you are going to seek funding to get your practice off the ground. It is imperative that you complete this section even if you are not seeking funding, however, as you need to paint a clear financial picture before opening your doors.

Two main items make up this section: budgeting and forecasting (sales and cash flow). Answer these questions to help you address these items:

• How much starting capital do you need?
• How much money will it cost to keep your practice operating on a month-to-month basis?
• How many cases will you need to close each month to break even?
• How many cases would you need to close to make a profit?
• What is your projected profit and loss for the year?

This section often incorporates graphs and other images, including profit-and-loss and cash-flow tables. The more specific you get with your numbers, the more likely you are to succeed!

One final note: If your goal is to submit your business plan to potential funders, you want to do everything you can to make sure your plan stands out. One good way to do this is to work with a designer to artfully format your plan. Great presentation can take you a long way.

Originally published 2017-09-23. Republished 2020-07-31.

Cari Twitchell

About the Author

@CariTwitchell

/in/caritwitchell/

Website: https://www.customcontentllc.com

Share Article

Last updated October 7th, 2022

Learn the Latest from Our Partners and Community

11 Jan 2023

On The Lawyerist Podcast: Top Episodes of 2022

By Kyle Harrington

Lawyerist News News Articles Healthy Clients Healthy Owner Healthy Strategy Healthy Team

Everett Hosts Interactive Strategic Planning Session at Alaska...

Lawyerist News News Articles Healthy Strategy

Lawyerist Media Launches Redesigned Website to Better Help...

By the Lawyerist editorial team

Lawyerist News News Articles Healthy Strategy Law Firm Finances Law Firm Websites Lawyerist News Starting a Law Firm

27 May 2022

Lawyerist Values: Grow as People

Lawyerist News News Articles Healthy Strategy Lawyerist Values

Lawyerist’s Seek Candor Value Is More Than...

Develop a healthy strategy, how to competently reinvent your practice.

By Megan Zavieh

31 Dec 2019

Year-End Law Practice Checklist

19 Dec 2019

How to Use Aged A/R Reports

By Mary Juetten

News Articles Healthy Strategy Law Firm Finances

26 Nov 2019

Small Firm Roadmap Stories: Vision and Values

News Articles Healthy Strategy Lawyerist Lab Roadmap Starting a Law Firm

18 Oct 2019

Design Thinking for Lawyers

By Marshall Lichty

News Articles Healthy Strategy Healthy Systems

19 Aug 2019

Strategic Planning for Law-Firm Success and Growth

25 Oct 2018

How to Promote a Unique Value Proposition to...

By Karin Conroy

News Articles Healthy Strategy Law Firm Clients

23 Jan 2018

Rethinking Law-Firm Productivity Measurement for the Post Billable...

By Jordan Furlong

23 Mar 2017

How to Calculate Client Acquisition Cost

• Product Reviews

The original content within this website is © 2024. Lawyerist, Lawyerist Lab, TBD Law, Small Firm Dashboard, and

The Small Firm Scorecard are trademarks registered by Lawyerist Media, LLC.

Privacy policy // XML sitemap // Page ID: 83157

Home Committees, Members & Career Services Small Law Firm Center Overview Small Firm Resources Writing a Business Plan for Law Firm – Law Firm Business Plan Sample

Writing a Business Plan for Law Firm – Law Firm Business Plan Sample

Business plans for lawyers.

New York City Bar Association Small Law Firm Committee

Writing a Business Plans for Lawyers – The Non-Financial Side

1 Why write a law firm business plan?

First and foremost, it’s a Management Tool, It f orces you to think through important issues you may not otherwise consider The recipe to grow your law practice

• A roadmap, albeit a changing one, with milestones to help reach goals you already know and have yet to define
• A sales tool to obtain financing
• A sales tool when looking to form a partnership or join one
• Some parts of a business plan include stating the obvious, but should not be overlooked because they still form a part of the whole
• As you write it, ideas come, strategies unfold, beliefs you may have had change
• It also changes your mindset. You’re no longer thinking about starting a business, you’re now in the process of starting a business.
• If you write a business plan and put it away in a drawer you have not written one that is feasible or is going to do you any good. Continual updating – whether semi-annual, annual, biennial, whichever is best for you – is your own set of checks and balances.

If you are going to buy a book, look for one that offers general advice and suggestions applicable to all businesses. And, if you choose a software package, eliminate the “techy” things like their numbering system; that is a dead giveaway that you’re using a software program. Also, eliminate sections that are irrelevant!

Suggestion: Don’t just buy one from an online bookstore. Take the time go through a table of contents and thumb through.

Examples available from Barnes & Noble:

• Alpha Teach Yourself – Business Plans in 24 Hours by Michael Miller
• Successful Business Planning in 30 Days TM, 3/ed, Peter Patsula
• The Executive Summary
• Analysis of Your Market
• Description of Your Firm
• Competitors
• Your Marketing Strategy

No set formula for a successful practice

Before developing a plan for a lawyer, answer the following:

• Identify your practice niche(s)
• What skills and experience you bring to your practice
• What legal structure to use: sole proprietorship, PC, partnership, LLP, etc.
• What clients you currently have and might potentially acquire
• What clients you want
• What business and social contacts you have
• What other attorneys you can call upon to fill in practice gaps
• How your firm’s records will be kept
• What equipment and supplies will be needed
• What library and other information sources will be needed
• What insurance will be needed
• What other resources will be needed
• How you will compensate yourself
• Review your current finances re assets, current cash flow, expenses
• What financing may be needed
• What financial assets do you have
• What banking accounts will be needed
• Review your current non non-financial resources
• Identify your market
• Describe your startup plans
• Where will your office be located
• What will the name of your firm be

2 The Executive Summary

For some businesses this is the most important part of the business plan because it summarizes what the company does, where it is going and how to get there. Therefore, it must describe the company, the “product” and the market opportunities concisely.

It is written after the plan is complete but is the first and, sometimes, most important part read by investors.

How important this is for a legal business plan depends on your long and short term goals, e.g., whether they are to grow a partnership, join a firm, build up a practice that is enticing for acquisition by a larger firm, etc.

In order to provide that summary, go through a number of exercises:

• Mission statement – the firm’s purpose and what it will do
• Major goals
• Objectives/milestones needed to achieve those goals
• Vision statement – where you want to go and what you want your firm to become, not just 20 years down the road but where you want to be three or five years from now
• List what is out of your control e.g., nature of the law business, direction of the marketplace, competition, mergers and acquisitions among clients, and competitors, attorneys and firms already in place
• Analyze opportunities to face and threats
• List your firm’s specific capabilities and whatever you believe you can offer that is unique
• If you are not a solo practitioner, who is the management
• What is the legal organization
• What technology will you be capitalizing on
• What is the marketing potential
• Describe your basic strategies based on the information you have learned about the legal business, your competition and applicable markets within your field.
• Provide the basis for why you believe your strategy is the right one for your firm.
• What markers will you use to change direction
• Outline what your firm needs to make that strategy succeed
• Financial projections
• Back up of those projections with assumptions (so that they can be adjusted as necessary)
• Summary of revenues by month for at least three years
• Balance sheet
• Cash flow statement
• What actions you’re going to take to carry out the plan
• What changes will be needed or skills acquired to put the plan to work

3 Analysis of Your Market: The Legal “Business” that Affects You

Purpose: an accurate understanding of trends affecting law practice in general and your specializations, client demographics, client universe.

Keep track of impact factors, obstacles, opportunities and threats to better forecast and build the strategies.

• Identify who and what firms dominate and where they are
• What new technologies have already and may yet change the way your practice is done
• What laws and regulations have and may yet change your practice
• Describe the overall demand for your specialties
• What else besides price affects your client decisions to use your services
• What clients (people or companies) can influence your areas of practice
• Large firms, mid size, boutiques, solo practitioners
• In-house attorneys
• Government attorneys
• Divide into primary, secondary and, if necessary, tertiary levels
• Is there substitution, e.g., do it yourself or outsourcing to India
• List what is available and how it affects your practice
• Describe how technology is affecting your kind of practice
• Describe who controls the technologies that affect
• Describe how you keep up with new technology
• List all the things that will make it difficult for you to practice in your expertise and locale
• List the things that will make your exit from you area of expertise or your transition to a different one difficult
• What can relationships with suppliers do for you
• Could a supplier become a competitor, e.g.; for articles you write
• Colleagues and competitors
• Professional associations
• Community associations
• Social and business organizations
• Current and former clients
• Former employment colleagues
• Pro bono colleagues
• What ways improve your position with clients
• Does pricing affect
• What else affects your relationship
• What kind of follow up do you do after meeting someone who may be a potential client or who can introduce you
• Writing articles
• Giving speeches
• How can you use your other relationships
• What are the overall costs that affect your hourly, daily or matter rates?
• Profit margins
• What do suppliers of your technology, research, information, etc. offer by way of pricing, discounts
• Are there long term agreements that can be to your advantage/disadvantage
• Elasticity of demand for the rates you charge
• If on a regular retainer, are you realizing 100% of your hourly rate, or more/less
• Identify where the biggest costs of your practice come from
• Identify fixed and variable costs
• How to gain economies of scale
• Identify where you can lower costs
• Is the profit margin you’re working with the right one for your practice
• Describe the size of your primary market
• List the niche markets that can use your expertise
• Is your kind of practice a growing or shrinking market
• Identify new growth opportunities in your areas of expertise
• Economic slowdowns
• Changing statutes, regulations and decisions
• Social pressures
• By product, industry, size, geography
• Membership lists of trade organizations
• List of conference attendees
• By referral of current clients
• By referral of colleagues, bar association, etc.
• By referral from competitors with conflicts
• What untapped market is there
• What underserved market is there
• Trade associations made of small companies in the same field
• Part time general counsel for small companies
• Trade associations you can join and committees you can volunteer for

4 Describing and Analyzing Your Own Firm

• It’s not just a law firm.
• What’s the general history
• When was it formed and why
• What is your mission
• What are your goals
• What direct experience do you have? Your partners?
• How relevant is your experience to the current world?
• How often do you talk to prospective clients
• What do you current clients feel about you
• What is the maximum amount of business you can handle yourself without farming it out
• To whom can you farm
• Who is your backup when you are too busy, traveling on business, on vacation, sick
• What is unique about you or your practice
• Describe the areas you focus on and want to focus on
• What are the ancillary areas of law that often or usually involved or triggered by your focus area
• What need does your expertise serve
• What are the advantages and disadvantages of your areas of expertise
• Identify your own strengths and weaknesses
• Who are your clients
• Who among your clients makes the decisions to use your services
• What stage of business development are your clients in
• How sophisticated/knowledgeable are your clients
• Are your clients street smart and/or business savvy
• Do they use more than one lawyer at a time
• Long term objectives
• Short term objectives
• What problems do you face
• What problems do your clients face
• What do you consider milestones
• What are the legal (statutory, regulatory & case law) trends that will affect it
• What are the technological trends that will affect it
• What are the economic trends that will affect it
• What potential risks and opportunities to be faced?
• Do you use innovative technology
• Do you offer superior client care/service
• Is your hourly, daily, or matter pricing lower than the “norm”
• Is there a small group of firms or attorneys who offer the same expertise or specialization
• Are you well known for a book, a speech, an article, news coverage, etc.
• Are you a trade association or bar association director or active participan
• Do a SWOT Analysis – Strengths, Weaknesses, Opportunities, Threats

Strengths & Weaknesses are vis à vis your competitors, rather than your own history Focus on current competition and potential competition

• Are there advantages to your expertise areas
• What do you enjoy doing
• What resources to you have access to
• What do others see as your strengths
• What can you improve
• What don’t you do well
• What should you avoid
• Do others perceive a weakness you don’t agree with
• Are your competitors doing better than you
• How can you meet a potential client
• What are the good opportunities – are they new areas, new statutes & regulations, etc.
• How can changes in technology help you
• How can changes (or no changes) in government policy affect your area of expertise
• Are there changes in social patterns or lifestyle that can help
• What opportunities can open if a weakness is eliminated
• Family/emotional/physical challenges
• Technological challenges
• What is your competition doing you are not
• How can technological changes threaten you

5 Competitive Analysis and Target Market

• List law firm/solo practice trends
• List direct competition
• List indirect competition
• Describe the extent of the unserved market for your kind of legal services
• Who is your client/customer
• What is your price
• Profile your primary customer
• Traits: geographics, demographics, psychograhics
• List client needs
• Describe how your fill those needs
• List primary, secondary and tertiary competitors
• What services do they offer in addition to yours
• What do they charge
• How do competitor firms sell their services
• What are the competitor strengths
• What are the competitor weaknesses
• What size competes with you
• What other specialties do they offer
• Who are they representing
• What is their pricing
• What are their operational strengths and weaknesses
• Are they adequately financed
• How do your competitors advertise or promote themselves
• What are their conflicts
• How does your competition market itself
• Competitive Identification
• Direct competitor – offers the same benefit
• Indirect competitor – services the client can get instead of yours
• Visit and read competitor websites and their advertising, including separate websites by individual partners
• Subscribe to competitor law firm online or other newsletters
• Does it use innovative technology
• Does it offer superior client care/service
• Is its hourly, daily, or matter pricing lower than the “norm”
• Are they well known for a book, a speech, an article, news coverage, etc.
• Are they trade association or bar association directors or active participants

Generate similar info for potential clients to help identify the target that will be most interested in you

A marketing plan must have a detailed description of the target market for your services, an analysis of the trends and conditions of that marketplace and how the trends affect that marketplace

• Total size of targeted market
• Historical current and projected growth rates
• What social, economic &political changes could affect it and your services
• Describe recent developments in the law that affect your areas of expertise
• Are there identifiable niches
• What or will be your clients’ needs and wants
• How will potential customers find out about you
• What kind of marketing, if any, are your clients and potential clients receptive to
• What do existing clients like best about your services
• Are your target clients consumers, businesses or both
• Demographics, psychographics, legal service purchasing habits
• When and how does the client decide to use a lawyer & find a lawyer
• Does your potential client use the Internet, bar association, trade association, business referral, family referral, friend referral, etc. to find a lawyer
• What is your client’s level of education and occupation
• Are they Fortune 1000,500, 100, mid size or smaller
• Is your client industry specialized and do you know that industry
• Does the client use more than one lawyer or law firm
• How long does the client take to decide to use a lawyer
• Does more than one person at the client make the decisions to use a lawyer, and if so who are they
• Is the person who decides who is going to provide legal services the one who is going to receive those services
• What influences your client’s decision to retain a lawyer
• Is using a lawyer optional, a necessity or a luxury
• Is a lawyer needed all year round, seasonal or ad hoc
• How and how well do your clients market themselves

6 Marketing & Strategy

Once you analyze your client needs you can build a comprehensive marketing strategy,

• What is it you intend to accomplish
• What is the amount of increase in clients and/or billing that you want to achieve
• Make each goal measurable and explain each one specifically
• Set each goal to a planned schedule
• Be able and prepared to assess all components to revise when necessary
• Compare these goals to what you believe your competitors’ goals to be
• Tactical objectives = measurable tasks
• Create client value
• Name recognition among your clients and potential clients
• Client retention
• Attracting partners or merging into a bigger firm
• Create a timeline for the objectives or events
• Determine the time frame for the plan, e.g., every six months, every year, etc.
• Describe the need for your services from the client’s POV
• Define the impact on the client of your services
• Ask whether your clients currently obtain this service more cost-effectively than you can provide it
• Describe what would compel clients to change from the lawyers they are using to you or to add you to their lawyer rosters
• E.g., how you will use that list of relationships
• Marketing Mix – Networking, Advertising, Promotion, PR
• Inserts in papers
• Bus, taxi, etc. ads
• Space in professional and trade publications
• Street banners
• New resident welcome kits
• Trade and trade association show directories and handouts
• Trade and trade association show sponsorships
• Coupon mailers
• Press releases
• Sponsorship
• CRM (customer relationship marketing)
• Cost based = cost plus profit margin
• Cost plus profit = cost plus fixed percentage markup
• Market based = use the market norm and add or subtract
• Ask what the highest price your target market can bear
• Determine the price elasticity for your kind of legal services
• Should you offer an introductory rate
• Age of business
• Premises/location
• Competition
• Cost to acquire a client

• Privacy Overview
• Strictly Necessary Cookies

This website uses cookies so that we can provide you with the best user experience possible. Cookie information is stored in your browser and performs functions such as recognising you when you return to our website and helping our team to understand which sections of the website you find most interesting and useful.

Strictly Necessary Cookie should be enabled at all times so that we can save your preferences for cookie settings.

If you disable this cookie, we will not be able to save your preferences. This means that every time you visit this website you will need to enable or disable cookies again.

Starting a Solo Practice Law Firm in California

Tips and resources for how to start a solo law practice..

So, you’re an attorney and have decided to branch out and start your own law firm. Congratulations! The decision to start a solo law practice is a big deal, and can potentially lead to a very fulfilling and successful career. Whether you are leaving a firm job, or are fresh out of law school, running your own business may present new challenges that you have not had to deal with before. But with a little guidance and some proper planning, you can hit the ground running, and start building a successful practice.

This article is intended as a general overview and quick reference guide for how to start a solo practice law firm in California. The information here is not meant to be comprehensive, and you should also consult other sources when starting your practice. With that in mind, the following are a few initial key issues that you should consider:

Entity Type

Business name.

• Liability Insurance
• Business License
• Bank Account
• Phone Number

In starting a solo practice law firm, the first issue that you should consider is what type of entity you will form. In California, a solo attorney basically has 2 options for forming a legal practice. They can either operate as:

• Sole Proprietorship, or
• Professional Corporation.

It should be noted that many other states also allow professionals to form their business as a Professional LLC (or “PLLC”). However, that type of entity cannot be formed in California.

Sole Proprietorship

The benefit of a sole proprietorship is that it doesn’t have to be registered with the state, has pass through taxation, and is less expensive to maintain. However, the drawback is that it does not provide any limited liability for your personal assets. This means that if you are sued in connection with your legal practice, your personal assets may be at risk. This exposure can be lessened by insurance coverage, as discussed below.

Click here to read more about sole proprietorships, on the CA Franchise Tax Board website.

Professional Corporation

A Professional Corporation (or “PC”) is a corporate entity for professional services such as attorneys, doctors, accountants, engineers, etc. The benefit of a PC is that it provides limited liability for the owner’s personal assets, and thus more protection than a sole prop. The drawback is that there are more guidelines in maintaining a corporate entity, including meetings, minutes, issuance of shares, and keeping separate finances, bank accounts and tax returns. In addition, the Franchise Tax Board assesses an $800 fee per year for maintaining a corporation.

Further, there is major catch that has a substantial affect on attorneys. The limited liability provided by Professional Corporations in California does NOT cover professional malpractice. Therefore, even if with a PC, an attorney is still personally liable for malpractice. The limited liability of a PC is mainly helpful for other forms of liability, including trip & falls at the office, or other forms of injury incurred aside from malpractice.

Which Is Right For You?

With either a Sole Proprietorship or Professional Corporation, an attorney should have Malpractice Insurance to protect from a malpractice lawsuit. If you are still working out of your home office, need to keep expenses at a minimum, and do not have substantial assets, then you may consider a Sole Proprietorship. However, if you have substantial personal assets you need to protect, work out of an office that clients regularly visit, and can absorb the extra cost and maintenance efforts, then you may want to consider a Professional Corporation.

Now that you have selected your business entity, its time to choose a name. Though this process can be fun and creative, it is not always as easy as it seems.

If you have formed a Professional Corporation, your business name should be something that is applicable to the profession, and that is not misleading, or substantially similar to an already existing business.

Click here to search the database of registered California at the Secretary of State.

Keep in mind that under California law, a Professional Corporation name must also include an ending designation such as PC, APC, or A Professional Corporation. (ie. Smith Law PC, Smith Law APC, or Smith Law a Professional Corporation).

Legal Tip: The naming of a Professional Corporation is governed in part by California Corporations Code section 13409.

Sole Proprietorship & Fictitious Business Name

If you operate as a Sole Proprietorship, you can avoid all business filing requirements if the name of your business, (1) includes at least your last name, and (2) portrays the nature of your business (ex. John Smith Law, Smith Law, Smith Legal, or The Law Offices of John Smith.)

However, if a Sole Proprietorship is operated under a name that does not include the owner’s last name or portray the nature of the business, the owner must file a Fictitious Business Name Statement (aka “DBA”) in the county of the firm’s principal place of business. A Fictitious Business Name is also required if the name suggests the existence of additional owners (ex. Smith Company, Smith & Sons, Smith & Associates).

Click here to read more about fictitious business names, on the CA Governor’s Office of Business and Economic Development website.

Legal Tip: The filing of a Fictitious Business Name is governed by the California Business & Professions Code section 17900.

Name Cannot be Too Similar to an Existing Business

Once you determine what you can legally name your business, the next step is to determine what name is actually available. If your name is John Smith you might technically be able to name your firm Smith Law under California law, but due to the popular nature of the name, there is likely already a person or company doing business as Smith Law.

If you attempt to register a name that is too similar to an existing one, the Secretary of State will likely reject the application. If you operate under a name that is too similar to an existing one, even of that business did not register its name, you potentially open yourself up to the risk of trademark or trade name infringement.

When in doubt, you should try to select a name that is appropriate, available and unique. This phase of the naming process can require a little trial and error, and a lot of patience, since your first choice may not be available. In order to select an available name, the following are several advisable steps to take:

• Search the database of California business entities registered with the Secretary of State
• Search the database of Fictitious Business Names registered with the Secretary of State
• Check the USPTO for registered trademarks
• Perform a regular online searching using your favorite search engine
• Check whether the domain name is available

If your name clears each of these, you are probably safe to move forward with your name. But if you find any conflicts, you should assess how much risk you are willing to take on, and possibly consider choosing a different name. But in the end, remember it’s just a name! Pick something that will work, and move on to the more fundamental aspects of your practice.

Professional Liability Insurance

One of the most important aspects of starting a solo practice law firm is securing a professional liability (aka legal malpractice) insurance policy. There are many insurance providers to choose from, and offer different rates and features.

The American Bar Association has a database of carriers categorized by state. Click here for a list of malpractice insurance carriers in California.

Some carriers such as Lawyer’s Mutual, offer relatively inexpensive insurance packages for new attorneys. This allows new attorneys with a solo practice to have proper insurance coverage, while keeping overhead low.

It’s important to have insurance coverage before you actually start conducting business. If you meet with a client, start performing work, and then get insurance, you may not be covered. Even if you have not yet solidified your business entity or name, you should have insurance in place if you plan on meeting with clients or conducting business.

Business Licenses & Permits

Many cities in California require business operating within their jurisdiction to obtain some form of a basic business license. This requirement basically allows the local governing agencies to have a record on file for the individuals and companies doing business within their borders. The tricky part is that each city (or county) may have its own rules regarding local businesses, may have different names for their licenses. Some cities may require a business license, others may require a business permit, or a business tax certificate. Some may not require any filings at all.

For example, all business operating in the city of San Diego are required to file a Business Tax Certificate, within 15 days after they have started doing business.

Click here to file a San Diego Business Tax Certificate.

Depending on where exactly you do business, you may need to file business permits in several different cities or counties. For example, if an attorney primarily does business in San Diego, but regularly meets with clients in the neighboring city of Del Mar, they may be required to file for a Del Mar business license as well.

Click here to file a Del Mar Business License.

This list is not intended to be comprehensive. Continuing with San Diego as an example, additional licenses may also be required for areas like Coronado, Carlsbad, Encinitas, El Cajon, etc. If you are doing business in California, you should determine all cities and areas that you will be conducting business, and obtain all necessary permits and licenses for those areas.

Bank Account & Trust Account

As a solo practitioner you will likely be receiving money on your clients’ behalf, whether from your clients directly, or from other third parties in connection with a legal matter. Under California law, any money received or held on behalf of your client must be held in trust, separate and apart from the business’s finances.

A common banking structure is to maintain a trust account (to receive and hold all client related funds), and an operating account (for the firm’s finances). Once the trust funds have been earned through legal work, or otherwise become payable to your firm, the attorney may then transfer the funds from the trust to the operating account, and the funds then belong to the firm.

There are many banking institutions throughout California that offer trust and operating accounts. Trust accounts (aka IOLTA accounts) are typically free, with no cost to maintain. However, operating accounts will typically have a minimum balance requirement, and if that minimum is not met, the bank will typically charge a monthly maintenance fee. The minimum balance amount varies depending on the bank, but typically ranges from $1,000 to $3,000. And the monthly service charges also vary, but can range from $5 to $30 per month. Some banks will also waive the monthly service fee for a few months while you get up and running.

Some banks, such as the San Diego based Torrey Pines Bank, specifically market to lawyers, and provide a host of services specifically for lawyers. But larger banking companies, though they have more established services, typically have less flexibility in those services, and provide less personal banking experience. Whereas smaller local banks are more eager to establish a banking relationship, and probably more willing to tailor their services, and provide a more personal banking experience. In addition, some banks have more locations than others, but some offer free mobile banking where you can deposit checks simply by taking a photo of them.

The final decision will depending on (a) what specific services are important to you, (b) how much of a minimum balance you can comfortably maintain, (c) whether you value traditional or more personal service, and (d) where you are most comfortable.

Traditional v. Virtual Office

Traditionally, attorneys have operated their practice from a business office. This is very convenient for having a dedicated space to perform work, meet with clients, and otherwise operate your business. It is also potentially the largest source of overhead costs incurred by a firm. Traditional office spaces are quite plentiful, can be found in most areas of the city, and can offer a various combination of features depending on your requirements. Offices for a solo practitioner can range on the low end around $500 per month, upwards of $2,000+ per month. If you can absorb that range of cost, then start researching and contacting offices in your area to find a location that suits your needs.

For attorneys who either, do not prefer the traditional office environment, or prefer less overhead costs, more and more attorneys are opting for the new age “virtual office” environment. There are several companies in California, such as Regis, Premier, and Barrister Suites, that offer a range of virtual office services. Virtual office services include:

• Business mailing address
• Phone answering service
• Conference rooms
• Shared or part-time office space
• Full time office space

Such services come in a variety of combinations, at varying costs. But most executive suit companies will allow an attorney to upgrade their services as their legal practice grows. This is a great option for attorneys to start small, and grow safely.

With a virtual office practice, a solo practitioner can utilize all the benefits of operating a business, while minimizing costs. This allows an attorney to operate their practice remotely, either on-the-go, throughout difference counties, from a home office or other convenient location. Another large benefit of this practice is that it can greatly benefit an attorney’s clients. Reduced overhead costs means that an attorney can lower some of the costs of their services, and still run a successful business.

Whether a traditional or virtual office, the final decision will depend on each attorney’s preferences, requirements and financial strategies.

A legal practice is a highly technical, and detail oriented business. There are numerous factors that should be tracked and organized during day-to-day operations. Law firms, like most business should keep track of all open cases or projects, task lists, and deliverables. Attorneys must keep detailed records of their billable hours, and must also maintain accurate calendars for meetings, hearings, civil procedure deadlines, and other case related dates. In addition, a firm must keep records regarding its finances, client trust accounts, costs and expenses, accounts receivable, invoices, and more.

Even a smaller solo practice may have difficulty maintaining all of these details manually through Word docs or Excel spreadsheets. There are many companies and services that provide automation for some or all of these tasks.

Services like Clio or MyCase provide a broad range of case management services, and can be a great way to automate most of your calendars, tasks time tracking, invoicing. QuickBooks is a very well known and still widely used method of managing your finances. There are also numerous low cost apps available that are helpful for time tracking and invoicing, though most do not have the power and capabilities of other full case management software.

Choosing software that works for your practice, may require some experimenting. Different attorneys have different preferences for doing business, and a law firm’s software should work in a way that makes an attorney’s job more efficient and cost effective.

Phone & Fax Numbers

Business phone numbers and fax numbers can be obtained through most phone service providers. Google offers a phone service called Google Voice, where you can obtain a phone number and voice messaging system for free. Companies such as Ring Central and MaxEmail allow you to send or receive faxes online, without the need of a physical fax machine.

Clients & Cases

All of the points discussed above are important when thinking of how to start a solo practice law firm in California. But the most important thing by far, is developing a base of clients and cases. Without clients or cases, a legal practice has no purpose.

Practices for developing a stable and productive client base, is an entire industry in itself. Unfortunately this simple article is not intended to describe in detail the various types of networking, business development, or marketing strategies to build up a legal practice. If it were that easy, articles like this would be pointless. So get out there, build your practice and reputation, and put due time and focus in finding people that you can help.

Practice Areas & Services

• Business Law
• Intellectual Property
• Real Estate
• Civil Litigation
• Articles & News
• Flat Fee Services

Recent Articles

• 10 Critical Steps for Selling a Business
• What is the GDPR and Will it Affect My Business?
• US Business Visas for Foreign Entrepreneurs
• Differences Between Corporations and LLCs

Connect with Us

• Practice Areas
• Terms of Use
• Testimonials

Contact & Locations

Phone: (619) 600-5454 (M-F 9:00am to 5:00pm)

Del Mar / Carmel Valley Office: 11622 El Camino Real, Suite 100 San Diego, CA 92130

Point Loma / Liberty Station Office: 2305 Historic Decatur Road, Suite 100 San Diego, CA 92106

Copyright 2016 Kohler.Legal | All Rights Reserved

Seven Sample Attorney Business Plans: Why Attorneys Must Have Business Plans

Share this article

Print/Download PDF

By  Harrison Barnes

Rate this article

2462 Reviews Average: 5 out of 5

• Business plans are a dying art, especially in the legal profession.
• Needless to say, business plans are also essential for a lawyer’s career.
• As the adage goes, if you don't plan your career, someone else will plan it for you.

Many of you work in firms that don't have a business plan for the firm as a whole , let alone your practice group or individual attorneys. And some of you are not privy to the firm's plan, even if there is one.

• If you are interested in seeing the elements of a lateral partner business plan click here: Partner Business Plans: Key Elements

Even so, that's no reason to forgo developing a plan for yourself. Remember, if you don't plan your career, someone else will plan it for you.

Have no fear. Personal business planning is not about writing a 50-page manifesto outlining every detail of every day of your professional life for the next 10 years . In fact, personal business planning can be as simple as you want to make it, as you can see here with this sample business plan for law practice PDF . You don't even have to call it a business plan -- call it a career plan if you prefer.

No matter how simple you make it or what you call it, personal business planning is about taking inventory of where you are , determining where you want to go and building a roadmap for getting there. Once you have the plan in writing, all you have to do is revisit it periodically to check your course and make any necessary adjustments.

Also, when it comes to planning, the biggest land mines are complexity and procrastination. Try to avoid creating a plan that overwhelms you or anyone you tell about it. And remember that any plan is better than no plan at all.

Strive to keep your plan simple and start taking action. As an attorney, you're well-versed in the areas of analysis and logic. In every work matter, you look at the situation and connect the dots to accomplish the desired objective. Apply the same approach to personal business planning and the dots you connect will lead you to the career you've always wanted.

• See 30 Ways to Generate Business as an Attorney for more information.

Business Plan For A Law Firm

How do i write a business plan for a law firm, what goes into a business plan, overview of the firm.

• A mission statement about the firm’s purpose.
• A vision statement or recitation of medium- and long-term goals for the firm.
• Important aspects of the firm’s history.
• Any important philosophies that the firm brings to legal practice.

Market Analysis

Do lawyers write business plans, 1. what are your goals.

• What do I want to achieve by starting my own law firm ?
• What is the impact I want to have?
• What am I good at?
• How do I want to service my clients?
• What problems do I want to help solve?
• What does success look like after starting this law firm?

2. Consider how much revenue you will need.

3. setting your fee structure, 4. determine how many cases you need to meet that revenue goal, how to create a law firm business plan, 1. executive summary.

• Mission statement: One or two sentences describing your firm’s purpose.
• Core values: What values are most important to the firm?
• Major goals: What are your firm’s overarching goals and objectives?
• Unique selling proposition: What sets your firm apart from other firms?

2. Firm Description

• Service(s): What type of law do you practice? What types of clients do you serve?
• Firm values: Restate your mission statement and core values.
• Legal structure: What sort of business entity are you? Are you in a sole proprietorship or a limited liability partnership?
• Location: Where is the office geographically located? What areas does the firm serve?
• Unique selling proposition: What makes your firm stand out? What technology or services give your firm an edge?

3. Market Analysis

• Ideal client: What demographics (like location, age, occupation), needs, and motivations would signify the best client match for your firm, and why?
• Industry description: What is the current and projected size of the market your firm is in? What are the trends in your legal niche?
• Competitive analysis: Who are your direct and indirect competitors, and how are they serving your target market? Where do your competitors succeed? What opportunities are there for your firm?
• Projections: How much can your ideal clients spend on legal services? How much can you charge?

4. Organization and Management Overview

• Describe what makes you unique and what sets you apart from other applicants.
• If applicable, include what makes each member of your team suitable for their particular roles.
• The organizational chart is a great visual aid if you have a larger practice.

5. Services

• What problems do your potential clients need your help with?
• How can your services uniquely help your clients solve their problems?
• What is the benefit of your services to clients?
• Why would potential clients choose your firm over another firm?

6. Marketing Strategy

• Ideal client: Where would you find your ideal client?
• Marketing goals: Detail what specific outcomes you hope to accomplish through marketing. Goals should include tactical objectives (more clients? Higher billing rates?) and overall objectives (like increased name recognition).
• Unique selling proposition: Restate what sets you apart and makes you uniquely able to best serve your clients.
• Competition: Detail who your competition is—and what they are doing to gain clients. Analyze their marketing strategies and assess where the cost of your services fits in with your competitors.
• Action plan: List the specific actions your firm will take to reach your target market and achieve your marketing goals (this could include a media/advertising strategy).

7. Financial Plan

• Revenue goal: How much money you want to make broken down by month.
• Financial projections: What you will really expect to earn, how many cases you think you will have the capacity to take on, and what you will be charging each client each month.
• Budget: A breakdown of your expenses and what your money will be going towards each month.
• Cash flow statement: What you actually earned and spent each month. This is different from your projections and budget and should be updated as the year progresses. You will find that you may have budgeted for something that cost you much less than you originally thought or made more in a month than you projected, these discrepancies should be recorded in your cash flow statement.

8. Start-Up Budget

• Hardware (laptops, printers, scanners, office furniture, etc.)
• Office space (Will you rent, or work from home?)
• Malpractice insurance
• Staff salaries (Are you planning to hire an administrative assistant or paralegal?)
• Utilities (Phone, internet, etc.)
• Practice management software or other technology services
• Partner Business Plans: Key Elements
• You Need to be Self-Managing and Responsible
• The Importance of Finding and Creating Demand
• The Importance of Asking the Right Questions, Self Improvement and Perception
• Attorney Business Plan Sample 1
• Attorney Business Plan Sample 2
• Attorney Business Plan Sample 3
• Attorney Business Plan Sample 4
• Attorney Business Plan Sample 5
• Attorney Business Plan Sample 6
• Attorney Business Plan Sample 7

Want to continue reading?

Become a free bcg attorney search subscriber..

Once you become a subscriber you will have unlimited access to all of BCG’s articles.

There is absolutely no cost!

Harrison Barnes does a weekly free webinar with live Q&A for attorneys and law students each Wednesday at 10:00 am PST. You can attend anonymously and ask questions about your career, this article, or any other legal career-related topics. You can sign up for the weekly webinar here: Register on Zoom

Harrison also does a weekly free webinar with live Q&A for law firms, companies, and others who hire attorneys each Wednesday at 10:00 am PST. You can sign up for the weekly webinar here: Register on Zoom

You can browse a list of past webinars here: Webinar Replays

You can also listen to Harrison Barnes Podcasts here: Attorney Career Advice Podcasts

You can also read Harrison Barnes' articles and books here: Harrison's Perspectives

Harrison Barnes is the legal profession's mentor and may be the only person in your legal career who will tell you why you are not reaching your full potential and what you really need to do to grow as an attorney--regardless of how much it hurts. If you prefer truth to stagnation, growth to comfort, and actionable ideas instead of fluffy concepts, you and Harrison will get along just fine. If, however, you want to stay where you are, talk about your past successes, and feel comfortable, Harrison is not for you.

Truly great mentors are like parents, doctors, therapists, spiritual figures, and others because in order to help you they need to expose you to pain and expose your weaknesses. But suppose you act on the advice and pain created by a mentor. In that case, you will become better: a better attorney, better employees, a better boss, know where you are going, and appreciate where you have been--you will hopefully also become a happier and better person. As you learn from Harrison, he hopes he will become your mentor.

To read more career and life advice articles visit Harrison's personal blog.

Article Categories

• Legal Recruiter ➝
• Harrison's Perspectives ➝
• Career Advice for Attorneys

Do you want a better legal career?

Hi, I'm Harrison Barnes. I'm serious about improving Lawyers' legal careers. My only question is, will it be yours?

About Harrison Barnes

Harrison is the founder of BCG Attorney Search and several companies in the legal employment space that collectively gets thousands of attorneys jobs each year. Harrison is widely considered the most successful recruiter in the United States and personally places multiple attorneys most weeks. His articles on legal search and placement are read by attorneys, law students and others millions of times per year.

Find Similar Articles:

• Legal Job Market
• Business Development
• Generate Business
• Legal Career
• Develop Additional Business
• Partner Resources
• Attorney Business Plans
• Partner Business Plans
• Lateral Partner Business Plan
• Business Plans
• Personal Business Planning

Active Interview Jobs

Featured jobs.

Location: California - Los Angeles

Most Viewed Jobs

Location: California - San Francisco

Location: Utah - Salt Lake City

Upload Your Resume

Upload your resume to receive matching jobs at top law firms in your inbox.

Additional Resources

• Harrison's Perspectives
• Specific Practice Areas
• The Winning Mindset

BCG Reviews

One of my favorite things about working with BCG was how responsive they were. Working with BCG made my job search easie.... Read more >

Isaac Swaiman

University of Minnesota Law School, Class Of 2013

I felt like my legal placement professional was very thorough, very timely and I think she was very attentive to what my.... Read more >

Dion Beatty

Chicago-Kent College of Law, Class Of 2017

My favorite thing about working with BCG was Carleen's responsiveness and attentiveness to what I was looking for in a f.... Read more >

Stephan Bradley

Columbia University School of Law, Class Of 2017

I did like how you all were available to have people talk to me in person, able to walk me through not only the BCG proc.... Read more >

American University Washington College of Law, Class Of 2014

My favorite thing about working with BCG was the service in general, just getting me connected with the firm that I ende.... Read more >

Lauren Ferrise

Depaul University College of Law, Class Of 2018

I had burned through a bunch of recruiters who, after there was an initial flurry of excitement kind of fizzled out. The.... Read more >

Steven Russell

Cornell, Class Of 2007

Popular Articles by Harrison Barnes

• What is Bar Reciprocity and Which States Allow You to Waive Into the Bar?
• What Do Law Firm Titles Mean: Of Counsel, Non-Equity Partner, Equity Partner Explained
• Top 6 Things Attorneys and Law Students Need to Remove from Their Resumes ASAP
• Why Going In-house Is Often the Worst Decision a Good Attorney Can Ever Make
• Top 9 Ways For Any Attorney To Generate a Huge Book of Business

Helpful Links

• The BCG Attorney Search Guide to Basic Law Firm Economics and the Billable Hour: What Every Attorney Needs to Understand to Get Ahead
• Quick Reference Guide to Practice Areas
• Refer BCG Attorney Search to a Friend
• BCG Attorney Search Core Values
• Recent BCG Attorney Search Placements
• What Makes a World Class Legal Recruiter
• What Makes BCG Attorney Search The Greatest Recruiting Firm in the World
• Top 10 Characteristics of Superstar Associates Who Make Partner
• Off-the-Record Interview Tips From Law Firm Interviewers
• Relocating Overseas
• Writing Samples: Top-12 Frequently Asked Questions
• The 'Dark Side' of Going In-house
• "Waive" Goodbye To Taking Another Bar Exam: Typical Requirements and Tips to Effectively Manage the Waive-in Process
• Changing Your Practice Area
• Moving Your Career to Another City
• A Comprehensive Guide to Working with a Legal Recruiter
• A Comprehensive Guide to Bar Reciprocity: What States Have Reciprocity for Lawyers and Allow You to Waive into The Bar

Related Articles

Important Questions Attorneys Need to Ask Themselves Before ....

The Importance of a Great Business Plan

No Job Offer in Hand? Then You Need a Plan

Business Plans Revealed

When you use BCG Attorney Search you will get an unfair advantage because you will use the best legal placement company in the world for finding permanent law firm positions.

Don't miss out!

Submit Your Resume for Review

Register for Unlimited Access to BCG

Sign-up to receive the latest articles and alerts

Already a subscriber? Sign in here.

Legal Practice

A Successful Business Plan for Solo Law Firm

Introduction .

Starting a solo legal practice and being your own boss can bring you a sense of empowerment and freedom. The best source of referral for a solo practitioner is their clients themselves. Therefore, it is vital to make sure that your client gets the best legal experience from your side. To achieve this, there has to be a fool-proof business plan to project and promote your law expertise.

Hallmarks of Solo Legal Practice 

The benefits of starting an independent practice are numerous. While working for a senior lawyer, junior lawyers have to take up the case they are assigned to, even if it is not their niche. When a legal professional works on their own, they can choose the area of law they would prefer to work in. It would make the work less hectic and more enjoyable.

Read Also – Some basic tips for choosing the right law firm

Additionally, solo practitioners can lay down their own terms and conditions. They can adjust and change the work schedules without compromising their personal life. Moreover, they do not have to wait for long and take permission from senior lawyers for leaves.

Solid Business Plan to Skyrocket Solo Legal Practice

A business plan is an overall outline of a legal professional’s legal business that needs to be revised and modified continuously. As you create one, new ideas and strategies unfold. It aids in formulating a direction and control for the business. Moreover, updating the business plan will keep a proper check and balances and bolster productivity. The components of a business plan are as follows:

Executive  Summary

An executive summary is the most crucial part of the business plan. It summarizes what the legal solo practice is about, where it is heading, and the action plan for attaining that goal. It is written after the business plan is completed and highlights the legal practice’s key points.

The executive summary must be inclusive of a Mission Statement. It should reflect every facet of your niche area of legal practice. This will act as a summary of your objectives and goals. Additionally, you need to include the core values which your legal practice advocate for. It helps in making a deeper connection and trust-based relationship with the clients. Finally, the executive summary has to give an outline of what makes your legal practice different from other lawyers and why it stands ahead in the profession.

General Legal Practice Description

In the second most component, you need to reiterate your goals, objectives, ambitions, and your field of expertise. Mention the years of experience that you have in the legal field and what types of clients you serve. Besides, throwing light on the motivation of starting a solo legal practice can also be included. Most importantly, describe the vital factors or strong core strengths that will help you stand out. Furthermore, mention the physical office’s address and the type of legal entity that you are.

Market Analysis

A detailed Market Analysis will discuss the competitive landscape that you are part of. It will aid you in developing stronger strategies to attract potential clients to you. Analyzing the market will help you to stay on track. A well-formulated Market Analysis will have the following:

Market description

This will enable you to understand the current and potential size of the market your legal practice is in. It helps you identify the various trends in your legal niche, making it on top of the game. Employing these trends would bolster your growth in the field.

Competitive Landscape

Understand your direct and indirect competitors. Figure out their strong and weak points, try to understand the strategies they make use of. Compare their growth with your legal practice to realize where you stand in the legal practice. Find out the unserved market for your legal service and focus on that. Learn more about how the competitors sell their services, whom they represent, their pricing, and other specialties they offer to clients.

Analysing the market will help you discover the expected growth of the market and new data on which your time can be spent efficiently.

Marketing Strategies

 Marketing strategies form an integral part of the Business Plan. In order to formulate this accurately, you need to do a general market analysis. It will help you to set realistic goals and strategies. Compare your goals to your competitors and revise whenever necessary according to changing needs. You need to explain how you will solicit referrals from other legal professionals, as well as how you will reach out to potential clients.

Mention which marketing activities you will be resorting to promote your practice and how much you will charge. You can offer introductory rates to clients and later determine the price elasticity according to your expertise and experience. Reinstate what sets you apart as a solo legal practitioner and how best you will serve them. Throw light on your traits and other achievements. Define the impact your service will have on the clients.

Customer Analysis 

Identify the potential clients and discover their characteristics, geographic locations, income levels, and everything vital to your legal practice. Examine different ways in which client satisfaction can be improved. It is also essential to clearly understand the different revenue streams that can be generated from different clients. You can try to expand to any other filed which is closely connected to your area of expertise.

Financial Plans

Financials should be the final part of your business plan. It must consist of a 12-month profit and loss projection, projected balance sheet, and a break-even calculation. It is vital to list out financial assets and liabilities. A proper and well-thought plan on how much cash you need for the legal practice is vital. It will help you to predict any shortages that are possible in the future. As a result, you can cut out certain expenses or avail a loan when needed. Incorporate graphs and pie charts to layout the proper financial plans.

Read Also – Guide to start a solo practice law firm in India

The business plan must provide a clear overview of your legal practice. If you are going solo, a business plan will help you to set concrete goals. This will help you to be on track and will attract prospective clients.

Try our Debt Resolution solutions today       Request a Demo

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

• Business Posts

How Hard Is It to Make It As a Solo Practitioner?

Instantly download this blog article as a PDF

Set yourself up for success with our free Guide to Starting a Law Firm.

Download this article as a PDF Loading ...

What do you think of when you hear “solo attorney”? A small-timer? A slick general practitioner? The truth is that solo and small firm practices are as varied as the people you met in law school. The occupation of solo attorney really is whatever you make it.

But how hard is it to make it as a solo practitioner? Well, how do you define “making it”? And what substantive areas of law do you want to practice? And are you happiest scaling exponential growth in a volume practice or handling a small set of high-value matters with extra care and attention? Starting a solo practice is easy—but to grow it and scale it is a far different matter.

Should I open my own law firm?

That’s easy: Yes! Except for those of you who aren’t disciplined enough to run a business rather than a legal clinic. And those who have zero interest in money, those who want a strict 9 to 5, those who demand certainty and security in their livelihood at all times. And not to forget those who cannot handle stress, crazy clients, snafus with software and accounting, HR issues, marketing, business development, and all of the other little jobs that come with running your own business.

Get actionable steps from successful legal entrepreneurs in our Guide to Starting a Law Firm .

Why become a solo lawyer 

Ask ten different lawyers their stories and they will give you probably ten different reasons for going into solo practice. I’ve heard things like, “I was tired of BigLaw,” “I didn’t want to work for someone else,” “I like helping people,” “My dad gave me his practice,” and “I wanted to make money.”

Last thing: It’s not the end of the world to start a practice, then fold it up. Many very happy lawyers I know got their start as a solo, then joined up with an established firm when they realized that they hated billing, marketing, H.R., business, etc.

Launching a solo practice demonstrates a passion for the profession, a willingness to work, and many other fine qualities that may land you a job with a firm that ignored you just a few years prior.

Is starting a solo law firm right for you?

Think about what’s important to you.

When figuring out how hard it is to make it as a solo practitioner, first consider what is most important to you. 

Look at your financial goals

For me, my benchmark was simple: Make more in solo practice in my first year that I did in the job I left. 

Then, I wanted to double my revenue each year from the prior year. He went $30k, $60k, $120k, $240k, $500k before leveling out running a fixed-fee volume-based practice. I’m currently on that same path since re-launching.

You’ll also need to look at your seed money that you want to invest in your legal practice and what profits you’ll need to make each year to continue growing your practice and supporting your family. 

Also, long before you launch, do the research. Listen to legal podcasts , read the legal and non-legal books everyone recommends, scope out the competition in your market, and set aside some funds for startup costs and to carry you for the dry months.

Ask yourself if it is the right time to start a solo practice

I’m going to be a little controversial here and say that there is never a perfect time to start a solo practice. 

But if your gut is saying that you have to do this, risks be damned, then you’ll probably have the passion to turn this into a real business when you run into obstacle, after obstacle, after obstacle. 

With all that said, there are some times that are terrible to launch a new venture. Yes, if you have significant medical bills, a new baby, or some other major life event happening, then you should postpone for now.

Consider an alternative legal career

I’ve heard more than one attorney tell me that they went into solo practice because they hated BigLaw. Fair. But was it the firm? Or was it the law? Law can be a stressful, unrewarding profession at times.

If the practice of law is what excites you, and the work environment was what dragged you down, then by all means, go solo. But think really hard first and be certain that lawyering is the goal. Your JD can come in handy in so many other places:

• Legal Content Writer: I have been a legal content writer, a marketing director for a multimillion-dollar law firm, and a marketing consultant for a portfolio of more than a dozen firms.
• Legal Compliance: One of my best friends writes legal compliance documents for a major entertainment conglomerate’s intranet.
• Legal Consulting : B ecoming a legal consultant lets you use a lot of the same skills but with no court dates and more flexibility.
• Legal tech: JD-toting startup founders are revolutionizing divorce, bankruptcy, legal research, intellectual property case filing, and so many other things right now.

You may like these posts

A guide to law firm business management, understanding judicial codes of conduct: a guide for lawyers, rules of professional conduct for lawyers, commingling of funds: what lawyers need to know, decide what practice area to focus on.

Pick what you know, and pick a niche.

When I first went solo, I picked family law . I had worked an internship in the area during law school and liked how everything came together day-to-day.

The next time I went solo, I picked a weird niche practice that nobody else does and that approximately half of the population needs: Qualified domestic relations orders. That’s the retirement account division following the federal law after divorce.

The benefits of the latter strategy have been numerous:

•  It was good business. There are maybe two dozen attorneys in the country who do this well. In New York City, if you ask Google, I am pretty much the only one. I also practice remotely back in California, and I am maybe one of a dozen there. Consider that nearly all people have retirement accounts and roughly half of all marriages end in divorce, and you can see that there is a massive market opportunity there.
• It worked well as a volume practice. Given my fascination with efficiency, software, and start-up principles, a growth-focused law firm that builds its own tools to scale legal practice, communication with clients, and excellent service while simultaneously scaling making actual money, was the sort of challenge I’m into. 
• I loved the niche focus. A practice that focuses on post-judgment court orders that incorporate ERISA and state domestic relations law is above all interesting to me.

You should plan as much of this out as possible before going solo. And you need to be realistic: You may have to move more volume cases now. When you become a recognized expert in your field, leverage that experience to trim your caseload while maintaining your revenue.

Determine the tools you need to start off on the right foot

Check the cost of tools you currently use and like and see if it is something that a solo can bear. 

This is also a good opportunity to migrate from an old school platform, like Time Matters, that your prior firm forced you to use.

Most solos will be better off starting with a cloud-based legal practice management platform, like Clio . For tracking time , hourly billing , trust accounting , and sorting out client files, a do-it-all platform like that will save you immense amounts of time over trying to handle things with an Excel spreadsheet.

Typically, it all boils down to setting up demos with all of your options and taking a couple of hours with each to see which one fits your ideal vision of a practice and workflow.

How to set yourself up for success as a solo practitioner

Create a law firm business plan.

If you are launching your own law firm with no plan, your odds of success are going to be slim. 

With a business plan, you outline your goals, realistic projections for revenue and expenses, overhead, market and marketing strategies, and more. The plan serves as a loose map to success, one that you are free to deviate from, but which will likely redirect you back to the course time and again whenever those “issues” threaten to derail you.

Follow these steps to create a strong law firm business plan.

Create a long term budget

To run a successful solo law firm, you will eventually have to invest in marketing, support staff, software that makes you more efficient, as well as CLEs, malpractice insurance, bar dues, etc.

You’ll probably need to add in a budget for a law firm website , and budgets for ongoing advertising on Google and social media, or any other marketing you think will pay off. And don’t forget budgeting for support staff!

Learn how to create a law firm budget here.

Decide how you’re going to market your business

The truth is, every firm and practice area will have a different path to marketing success. It might be LinkedIn advertisements and webinars to small businesses. It might be Facebook Ads with puppy dog faces talking about pet trusts.

Three things every successful law firm marketing campaign needs though are:

• Proper tracking . Every dollar that goes in, and every dollar that comes back in the form of client revenue, needs to be tracked and compared. 
• Willingness to experiment. It hurts to lose money on a marketing experiment, but if everything in marketing was a certainty, the three or four firms with the largest budgets would win every single time. Not every ad is going to resonate, not every social campaign is going to lead to lucrative cases, but if you have the guts to throw a couple hundred bucks at an experiment to gather data, you will identify a few winners that you can scale.
• Investment. There are a ton of great strategies for building an online marketing presence that involves unpaid channels: Maps listings and search engine optimization are the two most effective. But it takes years to build an authoritative presence that way. In the meantime, you still need clients, and that requires paid marketing.

Learn more about law firm marketing and creating a plan here.

Determine where you will work

Many people questioned how the practice of law would change due to the pandemic. I’m not sure about lawyers and their ability to change. But I will say that clients have changed already. Remote work is the norm, and clients want to connect remotely.

If you need to work from home, most practice areas will be amenable to the idea, as will the clients these days. Consider saving yourself the office rent and building a virtual law firm instead, especially in the first year that you are in business.

Make sure you get malpractice insurance

Even if your state does not require it, malpractice insurance is a good idea. The insurance policy will provide you with an attorney and some financial backing if crap hits the fan.

If you are new to practicing solo, shop around and check with your local bar. Many policies will have extremely discounted rates for first and second-year solo attorneys. Sometimes, state and local bars will have discount programs as well for young lawyers.

Follow these steps to choose a legal malpractice insurance provider.

Consider contract or part-time work

Starting any new business is going to mean ebbs and flows of the cash flow. You might have one week where you bring in $13,000 in new business, followed by three or four weeks where you bring in zero dollars. 

Contract work is a great way to cushion the blow of irregular cash flow.

Consider doing some freelance attorney work on the side, or asking around to see if other lawyers in your network need help on big cases.

Name your law firm

Whatever you pick, make it memorable so that people searching for your business online can actually find you. Note: Be sure to check ethics rules around trade names for law firms in your jurisdiction.

Get more tips for naming your law firm here.

Register your business

You’ll probably need to register your business with your local government, and register for federal and state tax IDs, which really only takes a few minutes online these days.

Set up your bank accounts

Most practices will need at least a trust account and an operating account. Having them at the same bank makes it easy to transfer funds and to convince your bank to charge any and all banking fees to the operating account. 

Learn more about trust accounting for law firms here.

Announce your grand opening

Throw a mixer with family, friends, and professional networks. You want to make sure that everyone knows that you are open for business, as referrals really are the best source of quality cases.

Get started.

If reading this article already has your head swimming, that’s perfectly normal. Take a deep breath, maybe take a few days, and then ask yourself again whether you should become a solo attorney.

For me, no job has ever been as exciting as my career as an attorney. I really feel that the most happiness I have ever gained professionally has come from being a lawyer-prenuer. 

It’ll take planning, a budget, and more time than you ever expected to deal with the business side of things, but at the end of each day, you’ll know that all of the work you put in was towards building a business that is uniquely you. It’s hard to make it, but it’s absolutely worth it. 

We published this blog post in September 2020. Last updated: September 7, 2023 .

Categorized in: Business

You might also like

Related articles on how to run a more efficient, profitable law firm.

Subscribe to the blog

Your law firm is more than just a legal practice—it’s also a business. Learn the law firm business management essentials…

Find your state's judicial conduct code and understand its role in shaping fair trials, professionalism, and accountability within the legal…

Learn what you need to know about rules of professional conduct for lawyers and how they impact your daily practice.

As a lawyer, commingling funds is never okay. Learn how to avoid commingling, keep track of client funds, and protect…

What's Clio?

We're the world's leading provider of cloud-based legal software. With Clio's low-barrier and affordable solutions, lawyers can manage and grow their firms more effectively, more profitably, and with better client experiences. We're redefining how lawyers manage their firms by equipping them with essential tools to run their firms securely from any device, anywhere.

Get the Reddit app

Discussion, issues, best practices, and support for lawyers practicing either solo or in a small firm. A subreddit for the business and practice of law, catering to lawyers without the support network of a large firm, and **not** generally for legal analysis or substantive case discussion. Attorney-to-attorney referrals, knowledge-sharing, business and marketing tips, and a lot more!

Solo law practice — getting started checklist

Those who have been ahead and running successfully, appreciate if anyone can share their journey and choices that made their practice productive quickly

Google workplace vs office 365 (for email)

Sharing and receiving clients documents - what options Dropbox vs google drive or Tntdrive or onedrive

Quickbooks online vs ??? Invoicing and payments ?

For any operational questions what is your go-to forum beyond this sub?

If it matters, we are in south midwest US.

Appreciate all the pointers with thanks