lawyers business plan

Law Firm Business Plan Template

Written by Dave Lavinsky

Law Firm Plan

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

Download our Ultimate Business Plan Template here >

What Is a Business Plan?

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

Why You Need a Business Plan

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

Sources of Funding for Law Firms

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

Finish Your Business Plan Today!

How to write a business plan for a law firm.

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

Executive Summary

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

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

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

Company Analysis

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

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

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

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

Include answers to question such as:

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

Industry Analysis

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

While this may seem unnecessary, it serves multiple purposes.

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

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

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

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

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

Customer Analysis

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

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

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

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

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

Finish Your Law Firm Business Plan in 1 Day!

Don’t you wish there was a faster, easier way to finish your business plan?

With Growthink’s Ultimate Business Plan Template you can finish your plan in just 8 hours or less!

Competitive Analysis

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

Direct competitors are other law firms.

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

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

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

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

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

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

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

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

Marketing Plan

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

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

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

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

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

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

Operations Plan

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

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

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

Management Team

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

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

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

Financial Plan

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

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

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

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

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

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

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

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

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

Law Firm Business Plan FAQs

What is the easiest way to complete my law firm business plan.

Growthink's Ultimate Business Plan Template allows you to quickly and easily complete your Law Firm Business Plan.

What is the Goal of a Business Plan's Executive Summary?

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

Don’t you wish there was a faster, easier way to finish your Law Firm business plan?

OR, Let Us Develop Your Plan For You

Since 1999, Growthink has developed business plans for thousands of companies who have gone on to achieve tremendous success.   Click here to see how Growthink’s professional business plan consulting services can create your business plan for you.

Other Helpful Business Plan Articles & Templates

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.

Part of the ‘Lawyerist Healthy Law Firm’

Legal product reviews and business guidance from industry experts.

Chapter 3/6

Developing a Business Plan for a New Law Firm

How to Start a Law Firm

10 min read

Guides Parent Form

Already an Insider? Log in to your account to receive your e-book!

Previous Chapter

Next Chapter

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

Starting a Law Firm Business Plan

A good business plan includes:

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

Law Firm Vision

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

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

Picture these two lawyers:

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

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

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

Law Firm Values

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

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

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

Here are some tips on crafting great values:

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

As an example, here are Lawyerist’s values :

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

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

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

Law Firm Business Model

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

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

Ask yourself:

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

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

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

Competitive Analysis

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

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

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

Here are some tips for putting together a competitive analysis:

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

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

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

Targets and Priorities

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

Short-term Goals

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

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

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

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

Long-term Goals

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

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

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

Key Performance Indicators (KPIs)

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

Measuring and monitoring your KPIs will allow you to:

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

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

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

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

Types of KPIs for Successful Firms

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

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

Let’s look at some examples.

Financial KPIs

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

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

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

Client Satisfaction KPIs

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

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

Examples of KPIs to track include:

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

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

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

Marketing and Business Development KPIs

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

Some of these metrics include:

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

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

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

Some examples of business development metrics to track include:

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

Profitability KPIs and Law Firm Financial Ratios

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

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

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

Download the Full Guide on How to Start a Law Firm

With this guide, you’ll have the tools to plan, strategize, organize, finance, brand, launch, market, and run a new firm.

• 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: 1405448

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.

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.

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.

— 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.

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 .

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.

• 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 below

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

Client Management

Case management, billing & payments, accounting & report, e-signature.

• Help Center

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

Why Every Law Firm Needs a Business Plan

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

The Key Components of a Law Firm Business Plan

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

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

Section One: Executive Summary

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

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

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

Section Two: Law Firm Description

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

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

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

Section Three: Market Analysis

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

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

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

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

Section Four: Organization and Management

Image Source – Creately

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

Section Five: Services

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

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

Section Six: Marketing Strategy

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

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

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

Section Seven: Financial Plan

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

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

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

Section Eight: Start-up Budget

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

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

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

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

DigitsLaw: The Legal Practice Management Software for Law Firms

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

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

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

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

Sample Business Plan and Fillable Template

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

Download your copy of our law firm business plan template HERE

Final thoughts.

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

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

Share this post

Latest Writings

The latest news and resources from our team

Our Integrations​

It is the easiest and most organized way to manage your law firm, clients, cases, billing, accounting and more.

Get the app

© 2023 Digitslaw. All rights reserved.

Upmetrics AI Assistant: Simplifying Business Planning through AI-Powered Insights. Learn How

Entrepreneurs & Small Business

Accelerators & Incubators

Business Consultants & Advisors

Educators & Business Schools

Students & Scholars

AI Business Plan Generator

Financial Forecasting

AI Assistance

Ai pitch deck generator

Strategic Planning

See How Upmetrics Works  →

• Sample Plans
• WHY UPMETRICS?

Customers Success Stories

Business Plan Course

Small Business Tools

Strategic Canvas Templates

E-books, Guides & More

• Sample Business Plans

Law Firm Business Plan

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

How to Write a Business Plan Step by Step

Notary Business Plan

Bookkeeping Business Plan

Sample Business Plans Template

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

Popular Templates

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 .

Law Firm Business Plan Template

Written by Dave Lavinsky

Law Firm Business Plan

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

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

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

Executive Summary

Business overview.

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

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

Product Offering

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

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

Customer Focus

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

Management Team

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

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

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

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

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

Success Factors

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

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

Financial Highlights

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

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

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

Company Overview

Who is harris & harris law firm.

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

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

Harris & Harris Law Firm History

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

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

Harris & Harris Law Firm Services

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

• Dedication to professionalism and honest dialogue

Industry Analysis

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

Customer Analysis

Demographic profile of target market, customer segmentation.

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

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

Competitive Analysis

Direct and indirect competitors.

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

Diamond & Johnson Defense

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

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

Legacy Law Associates

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

Construction Defect Law Firm

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

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

Competitive Advantage

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

Marketing Plan

Brand & value proposition.

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

Promotions Strategy

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

Word of Mouth/Referrals

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

Professional Associations and Networking

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

Website/SEO Marketing

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

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

Operations Plan

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

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

Milestones:

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

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

Financial Plan

Key revenue & costs.

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

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

Funding Requirements and Use of Funds

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

Key Assumptions

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

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

Financial Projections

Income statement, balance sheet, cash flow statement, law firm business plan faqs, what is a law firm business plan.

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

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

What are the Main Types of Law Firm Businesses? 

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

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

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

What are the Steps To Start a Law Firm Business?

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

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

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

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

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

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

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

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

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

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

• How to Start a Law Firm

Free Download

Law Firm Business Plan Template

Download this free law firm business plan template, with pre-filled examples, to create your own plan..

Or plan with professional support in LivePlan. Save 50% today

Available formats:

What you get with this template

A complete business plan.

Text and financials are already filled out and ready for you to update.

• SBA-lender approved format

Your plan is formatted the way lenders and investors expect.

Edit to your needs

Download as a Word document and edit your business plan right away.

• Detailed instructions

Features clear and simple instructions from expert business plan writers.

All 100% free. We're here to help you succeed in business, no strings attached.

Get the most out of your business plan example

Follow these tips to quickly develop a working business plan from this sample.

1. Don't worry about finding an exact match

We have over 550 sample business plan templates . So, make sure the plan is a close match, but don't get hung up on the details.

Your business is unique and will differ from any example or template you come across. So, use this example as a starting point and customize it to your needs.

2. Remember it's just an example

Our sample business plans are examples of what one business owner did. That doesn't make them perfect or require you to cram your business idea to fit the plan structure.

Use the information, financials, and formatting for inspiration. It will speed up and guide the plan writing process.

3. Know why you're writing a business plan

To create a plan that fits your needs , you need to know what you intend to do with it.

Are you planning to use your plan to apply for a loan or pitch to investors? Then it's worth following the format from your chosen sample plan to ensure you cover all necessary information.

But, if you don't plan to share your plan with anyone outside of your business—you likely don't need everything.

More business planning resources

Simple Business Plan Outline

How to Write a Law Firm Business Plan

Business Plan Template

How to Start a Business With No Money

How to Write a Business Plan for Investors

Industry Business Planning Guides

10 Qualities of a Good Business Plan

How to Write a Business Plan

Download your template now

Need to validate your idea, secure funding, or grow your business this template is for you..

• Fill-in-the-blank simplicity
• Expert tips & tricks

We care about your privacy. See our privacy policy .

Not ready to download right now? We'll email you the link so you can download it whenever you're ready.

Download as Docx

Download as PDF

Finish your business plan with confidence

Step-by-step guidance and world-class support from the #1 business planning software

From template to plan in 30 minutes

• Step-by-step guidance
• Crystal clear financials
• Expert advice at your fingertips
• Funding & lender ready formats
• PLUS all the tools to manage & grow

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

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

Share this article

Print/Download PDF

By  Harrison Barnes

Rate this article

2438 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:

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

Active Interview Jobs

Featured jobs.

Location: New York - New York City

Location: California - Newport Beach

Location: Texas - Houston

Most Viewed Jobs

Location: Florida - West Palm Beach

Location: California - Costa Mesa

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

I liked BCG Attorney Search because it got me a job.

Jonathan Lawson

University of Notre Dame Law School, Class Of 2006

My experience with BCG Attorney search was very good. They were very proactive and very helpful. BCG did all the work an.... Read more >

John Van Loben Sels

Georgetown University Law Center, Class Of 1995

[The best part was] the volume of applications you sent out in a very short period of time. [Working with BCG made my jo.... Read more >

Matthew Schmitten

Columbia Law School, Class Of 2013

Basically, I didn't have to do anything until I got the job offer. I never had to check in, she would check in with me a.... Read more >

Abbey Jahnke

Case Western Reserve University School of Law, Class Of 2012

Thanks! You guys helped me find a job so that's the best benefit! I loved working with Patrick he was very nice, profess.... Read more >

Mara Peterson

University of North Carolina School of Law

My legal placement professional was really responsive and really transparent, like I felt like I was talking to a friend.... Read more >

Janie Miller

Santa Clara University School of Law, Class Of 2016

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.

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.

A Definitive Guide to Master Law Firm Business Development

As a law firm, building robust, long-lasting client relationships can be challenging. After all, networking, client engagement, and lead generation tactics can be time consuming. However, adapting to modern business development strategies and incorporating new technology can streamline these processes.

In this article, we’ll discuss how to make connections, set your firm up for a prosperous future, and integrate innovative tools so that your vision of your firm’s success can become a reality.

• What is Law Firm Business Development?

Five Business Development Ideas for Law Firms

How to create a law firm business development plan, law firm business development vs. law firm marketing, resources to support law firm business development, what is law firm business development.

Law firm business development refers to anything you do, intentionally and systemically, to generate your firm’s revenue and gain clientele. It focuses more on the big picture rather than smaller transactional tasks.

You may apply law firm business development strategies by:

• Taking on new practice areas
• Cross-selling to existing or former clients
• Expanding the geography of your practice
• Implementing a more robust client intake process 

Constructing a business development plan requires time, reviewing data regarding your firm’s performance, staying up to date on trends in the industry, and keeping an eye on your competitor’s performance. 

Law firms of any size, practice, or location can use these law firm business development ideas to build their business:

When you hear “networking,” you may automatically think of attending happy hours or big legal conferences. That’s one way to do it, and it’s a good start. This way, you can feel more comfortable and make connections in a more relaxed environment. But don’t stop there.

After you’ve attended a few events and gotten the hang of how they work, it might be time to explore other ways to put yourself out there. You may want to base your approach on your clientele and practice area.

For example, if your clients are predominantly from the medical field or need health law related services, attend events that sponsor and host physicians. Should one of their patients need representation, a doctor you met at one of these events could direct them to you.

Online Forums

People with a common problem usually take to online forums to get answers to their questions. The conversation is a collection of posted messages, allowing multiple people to participate.

Drop into a forum and offer insights and advice to people seeking help. You might just land your next customer if you check out:

• Social media groups
• Thomas Reuters Legal Community
• Bar Association forums
• The Lawyerist Community
• Law school alumni forums

Referrals/Reviews

Some lawyers might avoid asking for referrals or reviews since they consider it free legal marketing . As long as you comply with the American Bar Association’s (ABA) guidelines, there’s no need to worry.

Referrals and reviews are a great lead generation strategy for law firms. Referred leads tend to have a higher conversion rate as they come from clients you’ve worked with and established a line of trust.

Client Engagement

Receiving leads and, ultimately, clients requires you to build strong personal relationships with your current clients. You can do this by being attentive to their needs, providing emotional support, and maintaining constant and clear communication.

As cliché as it sounds, put yourself in their position and ask yourself what you would want. Take the time to ensure they understand everything regarding their case. When you get an update on their case, let them know immediately. 

Once the case resolves, ask them for feedback. Your proactivity and willingness to do better prove your dedication and care for them.

They’ll remember how you went the extra mile for them and may feel more inclined to share their experiences with their friends and family, who just may be your future clients.

Thought Leadership

Thought leadership increases brand awareness and is another avenue to convert leads into clients. In other words, what’s your niche? If one thing about your firm stands out, make sure your prospects know what it is. Showcase your expertise by focusing on the quality of the service or perk you can provide rather than the quantity.

If you’re a personal injury attorney, provide content about common mistakes people make when dealing with insurance companies. If you run an immigration firm , write a post or make a video on how the Green Card process goes step by step.

Creating a law firm business plan sounds intimidating, but when you break it down into simple steps, you’ll feel like you can do anything.

Define Measurable Goals

Start small, and list the goals you want to accomplish in the next year. This can look like reaching a broader clientele by taking on a new practice area or partnering with another lawyer. You may have specific revenue goals you want to achieve and want to better define your law firm’s finances.  

Goals combine your firm’s performance and aspirations to create actionable, tangible achievements. 

Create Actionable Strategies

As mentioned before, goals need to be tangible and elicit action. How will you achieve these goals? Some ideas for strategies are:

• Increasing visibility on LinkedIn or Facebook
• Attending networking events that are more clientele-based than colleague-based (See the doctor example above)
• Setting aside time to answer questions on social media or forums

Prioritize Your Goals

Prioritizing your firm’s goals will help you make actionable steps that you can measure and adjust along the way based on their performance. Overloading yourself with too many goals at once can be overwhelming and may be hard to track.

For example, if you want to build a presence on Instagram the most, take steps like:

• Converting your page into a business account
• Learning the different tools and which hashtags to use
• Deciding if you want to post photos, videos, or a mix
• Figuring out how often you’ll post both on your account and stories
• Leverage Instagram or Facebook ads

Your firm should aim to implement a set of goals over a defined period, likely on a quarterly basis. 

Develop a Timeline To Test and Measure Performance

Goals are nothing without timelines or creating processes to track them. You’ll want to set a cadence, pull reports, and gauge revenue generation. This way, you can see what’s working and what isn’t.

Law firm business development and legal marketing tend to go hand-in-hand, but there is a distinction. 

Digital marketing , such as Google advertising or pay-per-click (PPC), can generate immediate revenue.

In business development, your focus is still generating revenue, but it’s less of a focus on selling. Instead, it’s about building your firm and relationships and setting up revenue streams with the long-term end goal in mind.

Investing in law practice management software can help maximize your firm’s business development and marketing. With PracticePanther, your firm has access to native resources to effectively attract and retain more business, including: 

• CRM : From lead to closed business, easily collect and store important client data in PracticePanther’s legal crm . Use this information to populate documents, create audience lists for email marketing campaigns, and more! 
• Custom tags : Easily track where leads came from with tags that can be customized to your firm’s liking. Create custom tags for “LinkedIn Ads” or “Website” to track the performance of a campaign. Then, you can easily filter your tags and generate reports to identify which marketing tactics don’t work for your firm.
• Email management : Use PracticePanther to automate your firm’s email marketing. Once a contact is created in PracticePanther, you can use the MailChimp integration or another email automation tool to sync to your email contact list. Having a space with all the information on one platform can save you time from bouncing back and forth from different websites.
• Client intake : Streamline the onboarding process with automated client intake forms . Add custom fields to capture the information your firm needs and add your logo. Embed intake forms on your website and email signature so clients can contact your firm from anywhere. Once a client’s information is captured, it automatically syncs to PracticePanther as a contact, so you always have the record. (Yes, you can even tag them!)
• Integrated legal calendaring software : Easily keep track of deadlines, appointments, court dates, and meetings with a built-in calendaring system . Sync your Google or Outlook calendars to PracticePanther to keep track of your events, meetings, and tasks in one place without double entry. 

Use These Tips To Effectively Invest in Your Firm’s Profitability

By adopting modern business development strategies and adopting legal-specific software, your firm can increase its visibility, generate more new business and enhance client satisfaction. As we’ve discussed, goals are nothing without processes to measure them. PracticePanther helps firms manage all aspects of their practice from business development to legal case management in one place.

Download as PDF

Want a copy of this article? Download it for free!

Related Articles

Outsourcing for law firms: how to seek assistance.

A lawyer’s primary focus should always be on the law, but law firms that are short-st...

5 Law Practice Management Software Myths Debunked

As a whole, the legal industry is traditional and adverse to change. Like other tradi...

What Software Is Used in a Law Firm?

Find out which software solutions today's leading lawyers are using to stay ahead in ...

Kamron Sanders

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

Subscribe for Updates

Learn how to grow your firm and get tips to save you time and automate your work, straight to your inbox.

Download PDF

Submit this form to download this article as a PDF file.

• First Name *
• Last Name *
• Firm Name *

By submitting this form, you are agreeing to our Terms of Service and Privacy Policy

Start your free trial today

PracticePanther is the leading legal practice management software. Start a free trial today and discover the power of automation at your firm.

By creating an account, you are agreeing to our Terms of Service and Privacy Policy

Download the Buyer's Guide to Law Firm Software

Maximize the security of your law firm's confidential information and improve productivity with the right law firm software. Explore crucial features to look for when choosing your law firm software.

Law practice management software made easy

We help you do right by your clients and get you home for dinner on time. Win-win.

Already have an account? Login

• Find a Lawyer
• Ask a Lawyer
• Research the Law
• Law Schools
• Laws & Regs
• Newsletters
• Justia Connect
• Pro Membership
• Basic Membership
• Justia Lawyer Directory
• Platinum Placements
• Gold Placements
• Justia Elevate
• Justia Amplify
• PPC Management
• Google Business Profile
• Social Media
• Justia Onward Blog

Moscow Lawyers

Find Moscow Lawyers by Practice Area

• Personal Injury
• Medical Malpractice
• Criminal Law
• Business Law
• Consumer Law
• Employment Law
• Estate Planning
• Foreclosure Defense
• Immigration Law
• Intellectual Property
• Nursing Home Abuse
• Products Liability
• Real Estate Law
• Traffic Tickets
• Workers' Compensation
• Agricultural Law
• Animal & Dog Law
• Antitrust Law
• Appeals & Appellate
• Arbitration & Mediation
• Asbestos & Mesothelioma
• Cannabis & Marijuana Law
• Civil Rights
• Collections
• Communications & Internet Law
• Construction Law
• Domestic Violence
• Education Law
• Energy, Oil & Gas Law
• Entertainment & Sports Law
• Environmental Law
• Gov & Administrative Law
• Health Care Law
• Insurance Claims
• Insurance Defense
• International Law
• Juvenile Law
• Landlord Tenant
• Legal Malpractice
• Maritime Law
• Military Law
• Municipal Law
• Native American Law
• Securities Law
• Social Security Disability
• Stockbroker & Investment Fraud
• White Collar Crime

Show All Practice Areas »

• Saint Maries
• Latah County
• Nez Perce County
• Benewah County

Researching Attorney Discipline

Find out whether an attorney has ever been disciplined.

Resources for Lawyers

• About Justia Lawyer Directory Badges
• Lawyer Directory FAQs
• Claim your Profile
• About Premium Placements
• About Justia Lawyer Rating and Reviews

How Biden's new student-loan forgiveness plan could be jeopardized before it even goes into effect

• Biden released new details for his second attempt at student-loan forgiveness.
• While it likely won't go into effect until the fall, an earlier Supreme Court decision could put the relief at risk.
• The ruling would address whether agencies have the authority to interpret a law's scope, like debt relief.

New details for President Joe Biden's student-loan forgiveness plan are out — and it's already shaping up to be a rocky road to implementation.

The same day the Supreme Court struck down Biden's first attempt at broad debt relief at the end of June 2023, the Education Department announced its plan B: relief for borrowers using an authority under the Higher Education Act of 1965.

In contrast to the HEROES Act — the law Biden used for his first attempt at relief — the HEA requires the administration to undergo a process known as negotiated rulemaking . The process requires a series of negotiations with stakeholders before drafting the regulatory text for the rule, which then enters a period of public comment before the relief can be implemented.

The Education Department completed negotiations on the relief in February. It released new details of the rule on April 8 — but senior administration officials previously said the actual draft text would be published in the coming months, with the implementation of the relief set to begin in the fall, at the earliest.

Not only does this timeline coincide with the presidential election, which could imperil any relief should Biden lose — it also puts the relief under the shadow of Supreme Court rulings set to arrive by June.

How a Supreme Court ruling on fisheries could affect student-debt relief

Cary Coglianese, an administrative law professor at the University of Pennsylvania, told Business Insider that "there's a larger context within which this plan would be evaluated if it eventually goes to court, which I would expect it will."

And that larger context, Coglianese said, is "possibly the rolling back of deference to agencies altogether in their interpretation of statutes."

Related stories

Coglianese is referring to a rule known as the Chevron doctrine , the fate of which is currently awaiting a Supreme Court ruling. In a case known as Loper Bright Enterprises v. Raimondo, a group of fisheries challenged the National Marine Fisheries Service's interpretation of a law requiring some fisheries to pay or subsidize the salaries of some federal agents who come on fishing expeditions to collect data.

The fisheries argued against that interpretation, calling into question the Chevron doctrine, which allows federal agencies to interpret a law how they see fit as long as it doesn't interfere with Congress' language.

So, if the Supreme Court strikes down Chevron, federal agencies would no longer have the authority to decide on laws related to their responsibilities — meaning the Education Department would not be able to interpret its student-debt relief authority under the Higher Education Act.

"That would, it seems to me, just provide another sort of quiver in the arsenal, if you will, to send the Biden debt-relief plan packing again," Coglianese said.

"In other words, we have a Supreme Court in which, in general, they're skeptical of agency action, at least of a certain kind of agency action, and with one student-debt relief case they've already sent a signal that they thought that was going out farther than Congress specifically authorized," Coglianese said. "And if they eliminate Chevron deference, it suggests that they're very serious about not giving agencies much leeway."

Lawsuits to likely target the law's broadness

While the regulatory text for Biden's new student-debt relief plan has not yet been published, its newly released details targeted different categories of borrowers the Education Department plans to make eligible for relief. It includes up to $20,000 in relief for borrowers with unpaid interest , along with loan forgiveness for those who have been in repayment for at least 20 years.

The Education Department has maintained it has the authority to enact this relief under the HEA's compromise and settlement authority , which states that the department can "enforce, pay, compromise, waive, or release any right, title, claim, lien, or demand" related to federal student debt."

However, Luke Herrine — an assistant law professor at the University of Alabama — told BI that any legal challenge will likely take issue with the department's interpretation of the HEA's authority for debt relief and argue that Biden's plan is too broad.

"The fight is primarily going to be, I assume, over whether a clause that on its face looks very broad is actually as broad as it looks, which is partly a matter of, who gets to resolve the ambiguity with that clause? Do you defer to an agency to make that determination for the agency? And increasingly, it's the case that the conservative judiciary does not believe in any sort of deference to administrative agencies," Herrine said.

Herrine said he expects the same groups who brought the cases against Biden's first debt relief plan to challenge this second one. Some of them have already filed lawsuits challenging Biden's new SAVE income-driven repayment plan — including Missouri Attorney General Andrew Bailey, who wrote on X that he would see Biden in court after the release of new details for the debt relief.

Ultimately, it comes down to how courts interpret the Education Department's authority, and should legal challenges arise, Coglianese said it's likely the arguments will be very similar to the cases that ended up striking down the first student-loan forgiveness plan.

"The administration is certainly still facing a very skeptical Supreme Court," Coglianese said. "Even though it's a different statute, it's still a skeptical Supreme Court. It's still a pretty big program even though it's a smaller one."

"So it's a risk that the court will, in the end, not allow the administration to go forward with this for the same reasons it didn't allow it to go forward the first go around," he continued. "Clearly, though, it's a risk the administration wants to take on behalf of the American public and the large segment of the American public that's been burdened with a lot of student loans."

Watch: Why student loans aren't canceled, and what Biden's going to do about it

• Main content

Our Attorneys

At Mosman Law Offices, you don’t just hire a lawyer, you hire our team. Our experienced lawyers are here to serve your legal needs. With over 60 years of experience representing cases in Moscow, Idaho and Pullman, Washington you can count on excellent legal advocacy with a personalized legal approach to your case.

…excellent legal advocacy with a personalized legal approach to your case.

Partner, Attorney at Law

CRIMINAL DEFENSE

Personal injury, wills and estates.

If you or someone you love has been charged with a crime in or around the Moscow or Pullman area, you have the right to mount the strongest possible defense. When you choose Mosman Law Offices, that is exactly what you will get.

Moscow criminal defense lawyer Wynn Mosman have been practicing criminal law in Idaho and Washington since 1992, and they understand what it takes to get your charges reduced, dropped, or dismissed.

Criminal Defense Areas of Practice in Moscow, Idaho and Pullman Washington:

• Driving Under the Influence (DUI)
• Minor in Possession (MIP)
• Drug Crimes
• Shoplifting and Theft
• Assault and Battery
• Domestic Violence
• Misdemeanor Defense
• Felony Defense
• Murder Defense
• Juvenile Crimes

When you are facing a difficult family law concern Mosman Law Offices is here to assist you. At our firm, we are poised and ready to provide outstanding representation to individuals facing a variety of family law complications.

For more than 60 years, Mosman Law Offices has provided strong representation to people in Moscow, Pullman, Latah County and Whitman County. Our experience and depth of knowledge in family law allow us to handle the most challenging cases involving divorce, child custody, child support, spousal maintenance, property division and other issues.

Family Law Areas of Practice in Moscow, Idaho and Pullman Washington:

• Child Custody
• Child Support

Mosman Law Offices has been representing clients and protecting the rights of injured individuals in Moscow, Idaho and Pullman, Washington for over 60 years. We have built our client base through hard work, dedication, and commitment to our clients allowing us to become the firm we are today. We take great pride in understanding the complex issues presented in personal injury, workers compensation, wrongful death and other personal injury cases.

Mosman Law Offices, we understand that accidents or injuries from an accident can take a toll on your life and financial situation. If you or someone you know has been injured due to negligence or you have lost a loved one due to a wrongful death we can help.

Personal Injury Areas of Practice in Moscow, Idaho and Pullman Washington:

• Traffic Accidents – Car, Truck, Motorcycle
• Pedestrian/Vehicle Accidents
• Wrongful Death
• Slip/Trip and Fall and Unsafe Property (Premises Liability)

At Mosman Law Offices we believe that everyone should plan for the future through effective estate planning. Regardless of the size of your assets an estate plan provides many practical benefits while giving you peace of mind. Proper planning for the administration of your estate can also lessen family confusion and conflict in potentially difficult times.

We will carefully explain all of your options and the effect that they will have on your estate. We will listen to your concerns, particularly those surrounding guardianships, tax liabilities and powers of attorney. We are here to help you through all your planning needs.

Estate planning services in Moscow, Idaho and Pullman Washington:

• Durable Powers of Attorney
• Power of Attorney for Healthcare

Error: Contact form not found.

Biden administration seeks to close the 'gun show loophole' to buy firearms

WASHINGTON — In what could be the biggest expansion of federal background checks in decades, the Biden administration is moving to end the controversial “gun-show loophole.”

“This single gap in our federal background check system has caused unimaginable pain and suffering,” said Vice President Kamala Harris in a call with reporters.

On Thursday, the Justice Department will submit a new 466-page regulation to the Federal Register outlining that the Bureau of Alcohol, Tobacco, Firearms and Explosives will require anyone “engaged in the business” of selling guns at a profit to register as a federally licensed firearms dealer and run background criminal and mental health checks on buyers.

The new rules would cover those selling guns not only at gun shows, but also at flea markets and online. In addition, the definition of being "engaged in the business" has been expanded to include those who sell small numbers of firearms. However, exceptions will be maintained for those selling private collections and family heirlooms.

The Justice Department says the new regulation will affect more than 23,000 unlicensed dealers and tens of thousands of gun sales every year.

Republican Sens. John Cornyn, of Texas, and Thom Tillis, of North Carolina, plan to introduce a joint resolution disapproving of the changes.

Attorney General Merrick Garland said of the change in a statement, "Under this regulation, it will not matter if guns are sold on the internet, at a gun show, or at a brick-and-mortar store: if you sell guns predominantly to earn a profit, you must be licensed, and you must conduct background checks."

He called the regulation "a historic step in the Justice Department's fight against gun violence."

In a video posted Thursday on X, President Joe Biden said: “Congress needs to finish the job and pass universal background check legislation now.”

ATF Director Steven Dettelbach said the change is set to take effect in a month. It is likely to face legal challenges, though the administration argues it will hold up in court by using a provision of the sweeping gun control law Congress passed in 2022.

“This final rule does not infringe on anyone’s Second Amendment rights and it will not negatively impact the many law abiding licensed firearms dealers in our nation,” Dettelbach said.

The rule will go into effect 30 days after it is published in the Federal Register.

Advocates have been intensifying calls for the move since the 2022 mass school shooting in Uvalde, Texas, and it comes as the Biden campaign seeks to highlight the administration’s efforts to reduce gun violence. Last month, Harris visited Parkland, Florida, and met families whose loved ones were murdered during the 2018 mass shooting there. In December, the vice president also brought together nearly 100 state legislators from 39 states to launch an initiative that would provide states with additional tools to advance gun safety measures. In September, Biden established the first-ever White House Office of Gun Violence Prevention.

“This is maybe the most impactful change made possible by the 2022 gun safety bill,” said Sen. Chris Murphy, D-Conn., who has been outspoken about the issue since the 2012 shooting at Sandy Hook Elementary.

Gabe Gutierrez is a senior White House correspondent for NBC News.

Diana Paulsen is a desk assistant for NBC News.

Swiss banking plan leaves 'relieved' UBS out of immediate firing line

• Medium Text

• Company UBS Group AG Follow

Get a look at the day ahead in U.S. and global markets with the Morning Bid U.S. newsletter. Sign up here.

Reporting by John Revill Additional reporting by Oliver Hirt, Noele Illien and Stefania Spezzati Editing by Dave Graham and Peter Graff

Our Standards: The Thomson Reuters Trust Principles. New Tab , opens new tab

Simpson Oil, the biggest shareholder of Parkland Corp , on Friday sent a letter to the board of the Canadian fuel retailer, urging it to immediately start a review of strategic alternatives including a potential transition of the company to new ownership.

Business Chevron

Wall St Week Ahead Surging US energy shares reflect robust growth, inflation worries

U.S. energy shares are soaring as investors benefit from rising oil prices and a stronger-than-expected economy, while seeking to protect their portfolios from a feared resurgence of inflation.

• Side Hustles
• Power Players
• Young Success
• Save and Invest
• Become Debt-Free
• Land the Job
• Closing the Gap
• Science of Success
• Pop Culture and Media
• Psychology and Relationships
• Health and Wellness
• Real Estate
• Most Popular

Related Stories

• Become Debt-Free Student loan borrowers could have up to   $20,000 in interest forgiven this fall
• Earn Over 150,000 student loan borrowers   will soon have their debt forgiven
• Become Debt-Free President Biden forgives student debt for   nearly 78,000 borrowers through PSLF
• Become Debt-Free Student debt relief due to financial   hardship could be on its way
• Earn New FAFSA rollout has faced several   obstacles and delays—what students can do

25 million student loan borrowers could see their balances shrink under Biden’s new forgiveness plan

President Joe Biden and his administration are moving forward with plans to provide student debt relief to as many people as possible.

The administration announced Monday the details of its new plan to reduce student debt balances for millions of borrowers. The proposed regulations — which were drafted as part of the months-long negotiated rulemaking process — feature several different ways for borrowers to see their debt balances reduced, if not eliminated entirely. 

The provisions of the plan include forgiving excessive interest that has accrued, discharging balances that have been in repayment for 20 years or more and relief for borrowers who attended now-closed or insolvent institutions.

"[The] plan is focused on the reasons that people are struggling with their student loan debt," James Kvaal, Under Secretary of Education, told CNBC Make It. 

"People who are upside down on their student loans because interest has racked up faster than they could pay it, people who have been making payments on their loans for decades and still owe those loans — it's a sign of how aggressive the President is [being] in tackling the student loan crisis," he said.

The relief provisions will soon be open for a public comment period where the administration will consider revisions to its proposal before it goes into effect. Some provisions are expected to roll out as early as this fall, the administration said.

As with Biden's previous student debt forgiveness proposals, it's possible this plan will come under legal scrutiny if challenged by opponents. But this plan differs from his previous action by using a different legal authority — the Higher Education Act — and narrowing the scope of borrowers eligible for relief.

In the event this plan is enacted and a future presidential administration wanted to repeal it, it would need to go through the same lengthy rulemaking process, Kvaal said.

Here's the relief borrowers may expect to see in the coming months.

Up to $20,000 of accrued interest forgiven

Interest accrues daily on student loans and some borrowers have interest rates as high as 8%. As a result, many borrowers wind up with balances higher than what they initially took out for school, despite making regular payments.

Biden's plan aims to address that "runaway interest" by canceling up to $20,000 of the amount a borrower's balance has grown due to unpaid interest after entering repayment. Single borrowers who earn $120,000 or less and married borrowers earning $240,000 or less who enroll in an income-driven repayment plan would be eligible to have their entire excess interest balances discharged, the administration said. 

Some 25 million borrowers stand to benefit from their interest balances being reduced if the plan goes into effect as proposed. An estimated 23 million of those borrowers will have their entire balance growth forgiven, according to the administration.

Automatic loan discharge for forgiveness-eligible borrowers

The Biden administration has canceled debt for over 1 million borrowers through existing forgiveness programs, including Public Service Loan Forgiveness , income-driven repayment and closed school loan discharges.

The administration estimates another 2 million borrowers are eligible to have their debt forgiven under these programs, but have not yet applied .

The new plan will allow the administration to use available data to identify and automatically clear balances for these borrowers as they are eligible, without borrower action.

Debt forgiveness for long-term borrowers

Another 2 million borrowers could benefit from a provision that will clear debt balances that are at least 20 years old for undergraduate borrowers and 25 years for graduate borrowers. It will apply to undergraduate borrowers with direct loans or direct consolidation loans who entered repayment on or before July 1, 2005, and graduate school borrowers who entered repayment on or before or July 1, 2000.

Currently, borrowers enrolled in the Saving on a Valuable Education plan or other income-driven repayment plans are eligible to have their remaining balances discharged after 20 or 25 years, but the new regulation would eliminate the IDR requirement.

Relief for attendees of 'low-financial-value' programs

The Biden administration has made a concerted effort to "hold colleges accountable when they leave students with mountains of debt and without good job prospects," it said in its statement. 

As such, the new plan would waive loans for borrowers who attended institutions or programs the administration identifies as "low-financial-value."

That includes schools that have lost eligibility to receive federal student aid or were denied recertification due to cheating or taking advantage of students, as well as programs that have since closed or have a history of leaving students with high debt loads and poor earnings outcomes.

Help for borrowers facing financial hardship

The administration says it is committed to pursuing a "specific action" for student loan borrowers experiencing a variety of financial hardships , although it's not yet clear who may receive relief and to what degree their balances will be reduced.

"This could include delivering automatic forgiveness to borrowers predicted to be likely to default on their loans, or through an individualized applications where borrowers could detail their financial hardship that is preventing them from being able to fully pay back their loan, such as a child care or medical expense," the administration said in its statement.

Want to make extra money outside of your day job?  Sign up for CNBC's new online course How to Earn Passive Income Online to learn about common passive income streams, tips to get started and real-life success stories. Register today and save 50% with discount code EARLYBIRD.

Plus, sign up for CNBC Make It's newsletter to get tips and tricks for success at work, with money and in life.