Starting a law firm may require some initial sources of finance. For example, you may need to open an office to invite clients or invest in marketing to get them through the door. In addition, when starting a business, even if you have invested your own money, you might aim to attract inventors or seek a loan. When searching for these sources of finance, you must present a complete and comprehensive business plan.

This article will guide you through the process for your startup law firm’s business plan:

  • Description of your business 
  • Explaining your market
  • SWOT analysis
  • Fee structure and services
  • Financial projection

Description of your business

The first important section to include in your business plan is a description of what your startup will be. Use this section to lay out the purpose of your firm. For example, there may be certain areas of law that you will specialise in.  You could also explain what led you to start a firm.

A big part of your business will be attracting new clients to use the firm. So in this section of your business plan, talk about any ideas you have around branding. If you have a logo, for example, then explain it. Next, use the opportunity to show how you intend to market your firm. You could even mention which marketing channels you are thinking about using to advertise.

Explaining your market

You are likely to know the type of clients you would like to attract to your business. If you have done some market research beforehand, any findings you can share will make it easier to convince others of your idea. In addition, it would help if you used this section to prove the demand for your law firm.

Having the audience in mind for your business also shows that any marketing activities you have planned will aim at the right people. You want to reassure investors and lenders that you know who will benefit from your service and how exactly you can reach them. Then, when they finance you, they can be confident that you will use their funding wisely.

SWOT analysis

A SWOT analysis proves that you have put some thought into each component of your business. The analysis is a way of analysing different business strengths, weaknesses, opportunities, and threats.

Strengths

Starting with your strengths should be a way of communicating all of the reasons you have to succeed. Detail the personal attributes and professional experience you possess that will contribute to your success, for example, you may have experience in law for certain industries.

Make sure to mention any qualifications or past cases that could help prove your ability to carry out the services you will offer. For example, if you have worked on cases for a small business before, this shows familiarity with business management.

Weaknesses

Having weaknesses is not necessarily a bad thing for a business plan. It shows that you can identify areas for improvement and gives you the chance to communicate how you will fix them. In addition, it is a vital way of demonstrating your ability to be honest with lenders and investors.

The weaknesses section of your law firm business plan should also include certain aspects of running the business that are going to require extra focus. For example, you may have experience and be familiar with managing your accounts, but you will set out to make your marketing stand out from competitors. 

Opportunities

As a business, there may be certain things that you can take advantage of in the future. For example, you could identify specific gaps within the law industry. Maybe that leaves you room to innovate and set your firm apart from others.

Having the ability to show a willingness to think on your feet shows some creativity that investors and lenders will appreciate. In addition, being open to taking on new opportunities means you have some aspiration to grow the business and the skills to do it.

Threats

There may be some threats to either your industry on the whole, or your firm specifically. Mention any potential business hazards and your ability to respond to them. Running a business may mean that you encounter many unforeseen changes.

If you think about what future threats could happen, show that you prepare for any changes. For example, this could include a competitor who offers similar services for a lower price. Then, explain what you would do in the scenario and how you will overcome the threat.

Fee structure and services

Given the nature of the business, it will be crucial to explain how your firm is going to make money. It may seem obvious to you, but you may be pitching to investors or lenders who do not know the law industry. Make sure to explain how you will charge people for your services.

You must show that you know the pricing that the industry currently uses and where your firm will fit. Perhaps you would like to offer services for lower prices to attract a wide range of clients, or you may charge higher fees for specialised services with specific target businesses.

Financial projection

You should combine your fee structure with marketing research or prior industry knowledge to provide a projection of how much revenue your startup law firm can make. Combining the fees with your estimations for several customers over the first year, for example, you can put together a sales forecast

It shows that you have a way of planning all the costs required to deliver the services. In addition, you are providing some expectations that could make your business more attractive. You must also use this section to explain what you will do with the money you either lend or receive from an investment. 

Manage any finance you secure using your business plan with Countingup

Financial management can be stressful and time-consuming when you start a law firm. That’s why thousands of business owners use the Countingup app to make their financial admin easier. 

Countingup is the business current account with built-in accounting software that allows you to manage all your financial data in one place. With features like automatic expense categorisation, invoicing on the go, receipt capture tools, tax estimates, and cash flow insights, you can confidently keep on top of your business finances wherever you are. 

You can also share your bookkeeping with your accountant instantly without worrying about duplication errors, data lags or inaccuracies. Seamless, simple, and straightforward! 

To start your three-month free trial today, find out more here.