Free Law Practice Business Plan
For Raising Capital from Investors, Banks, or Grant Companies!
Please note that the financials
in this complete free business plan are completely fictitious and may not
match the text of the business plan below. This free business plan demonstration
purposes only. If you are interested in purchasing the completed editable MS Word
and Excel documents for this business plan, please click the button below! Also,
the text of the business plan is formatted with a fully automated
table of contents.
It should be noted that there is no special software required to use these
templates. All business plans come in Microsoft Word and Microsoft Excel format.
Each business plan features:
- Excecutive Summary
- Company and Financing Summary
- Products and Services Overview
- Strategic Analysis with current research!
- Marketing Plan
- Personnel Plan
- 3 Year Advanced Financial Plan
- Expanded Financial Plan with Monthly Financials
- FREE 30 Page Sample Private Placement Memorandum
- FREE PowerPoint Presentation for Banks, Investors,
or Grant Companies!
1.0 Executive Summary
The purpose of this business plan is to raise $100,000 for the development of a general law practice while showcasing the expected financials and operations over the next three years. Law Practice, P.C. (“the Company” or “the Firm”) is a New York based professional corporation that will provide legal advice to clients in its targeted market. The Company was founded in 2009 by John Doe, Esq.
1.1 Products and Services
The Firm intends to offer hourly and contingency based legal counsel concerning matters relating to personal injury cases, real estate law, criminal law, and general litigation. Management intends to bill services at a rate of $195 per hour. For cases taken on a contingency basis, the Firm will receive 30% of all success verdicts and/or settlements. The Firm will also have a retained paralegal that will bill for services at a rate of $75 per hour. This will ensure that Mr. Doe has a competent assistant that can assist with legal document preparation needs while concurrently increasing the billable hours of the practice. The third section of the business plan will further describe the services offered by the Law Practice.
1.2 The Financing
Mr. Doe is seeking to raise $100,000 from as a bank loan. The interest rate and loan agreement are to be further discussed during negotiation. This business plan assumes that the business will receive a 10 year loan with a 9% fixed interest rate.
1.3 Mission Statement
Mr. Doe’s mission is to provide his clients with competent legal advice regarding any legal matter that they may have.
1.4 Mangement Team
The Company was founded by John Doe. Mr. Doe has more than 10 years of experience as a practicing attorney. Through his expertise, he will be able to bring the operations of the business to profitability within its first year of operations.
1.5 Sales Forecasts
Mr. Doe expects a strong rate of growth at the start of operations. Below are the expected financials over the next three years.
1.6 Expansion Plan
The Founder expects that the business will aggressively expand during the first three years of operation. Mr. Doe intends to implement marketing campaigns that will effectively target individuals and small businesses within the target market.
2.0 Company and Financing Summary
2.1 Registered Name and Corporate Structure
Law Practice, P.C. The Company is registered as a professional corporation in the State of New York.
2.2 Required Funds
At this time, the Law Practice requires $100,000 of debt funds. Below is a breakdown of how these funds will be used:
2.3 Investor Equity
Mr. Doe is not seeking an investment from a third party at this time.
2.4 Management Equity
John Doe owns 100% of Law Practice, P.C.
2.5 Exit Strategy
In the event that Mr. Doe wishes to retire or sell the practice to a third party, he will hire an associate attorney that will take over the practice. Many state bar associations have stringent rules regarding the divestiture of established law practices to other attorneys. Based on historical numbers and operating protocols, an attorney that sells his or her practice usually receives a price equal to the previous year’s revenues paid out over a period of five years by the attorney that is acquiring the practice.
3.0 Products and Services
Below is a description of the legal services offered by the Law Practice.
The practice of law can be an extremely profitable enterprise provided that the Firm consistently provides strong and effective legal counsel. As discussed in the executive summary, Law Practice, PC intends to provide clients with a broad array of legal services with focuses ranging from minor probate, business law, civil litigation, and criminal defense representation. These services will provide two forms of revenue for the Firm. For general defensive litigation and criminal representation, the Firm will bill clients on an hourly basis. For plaintiff litigation cases, the fees received from this area of the practice will be contingent on the verdict or outcome of the case. Typically, law firms receive 30% to 40% of the verdict or settlement amount for each of these cases depending on the scope and complexity of the cases. Costs related to the case are initially paid for by the law firm and then are deducted from the settlement/verdict in the event of a successful outcome.
4.0 Strategic and Market Analysis
4.1 Economic Outlook
This section of the analysis will detail the economic climate, the law practice industry, the customer profile, and the competition that the business will face as it progresses through its business operations. Currently, the economic market condition in the United States is in recession. This slowdown in the economy has also greatly impacted real estate sales, which has halted to historical lows. Many economists expect that this recession will continue until mid-2009, at which point the economy will begin a prolonged recovery period.
4.2 Industry Analysis
The US legal industry includes around 165,000 law offices that generate annual revenue of $180 billion. Large firms include Skadden, Arps; Baker and McKenzie; Jones Day; and Latham & Watkins. The industry is highly fragmented: the 50 largest firms hold less than 15 percent of the market. About 150 law firms have annual revenue over $100 million. In the United States, there are approximately one million active attorneys practicing within the private, public, and not for profit sectors. The average yearly income for a practicing attorney is slightly above $100,000. Salaries of lawyers vary greatly with not for profit attorneys earning salaries of $50,000 to senior partners of major law firms earning in excess of two to three million dollars per year. The growth of the number of lawyers has been high in recent years with many attorneys working beyond the age of 65. Demand for services depends on the volume of economic transactions, which changes with the economy. The profitability of individual firms depends on the reputation of its partners. Large firms have advantages in serving corporate customers with a wide range of needs. Small firms can compete successfully by providing specialized expertise or operating in a very local market. Although the industry is labor-intensive, the expertise of the profession is very valuable; average annual revenue per employee is about $300,000.
4.3 Customer Profile
In this section of the analysis, you should describe the type of customer you are seeking to acquire. These traits include income size, type of business/occupation; how far away from your business is to your customer, and what the customer is looking for. In this section, you can also put demographic information about your target market including population size, income demographics, level of education, etc.
4.4 Competitive Analysis
This is one of the sections of the business plan that you must write completely on your own. The key to writing a strong competitive analysis is that you do your research on the local competition. Find out who your competitors are by searching online directories and searching in your local Yellow Pages. If there are a number of competitors in the same industry (meaning that it is not feasible to describe each one) then showcase the number of businesses that compete with you, and why your business will provide customers with service/products that are of better quality or less expensive than your competition.
5.0 Marketing Plan
Law Practice, P.C. intends to maintain an extensive marketing campaign that will ensure maximum visibility for the business in its targeted market. Below is an overview of the marketing strategies and objectives of the Firm.
5.1 Marketing Objectives
• Establish relationships with accountants and other attorneys within the targeted market.
• Implement a local campaign with the Company’s targeted market via the use of flyers, local newspaper advertisements, and word of mouth advertising.
• Develop an online presence by developing a website and placing the Company’s name and contact information with online directories.
5.2 Marketing Strategies
Mr. Doe intends on using a number of marketing and advertising strategies to promote the acquisition of new clients upon the commencement of the law firm’s operations. The firm will use general advertising methods such as small print ads in local newspapers and publications, yellow book listings, and referrals from other attorneys that will allow the business to generate revenue immediately upon its inception. The Firm will develop a website that will showcase the firm, its practitioner (John Doe), and will provide contact information for legal advice and service. This static page website will be developed along with the firm’s other marketing materials one to two months prior to the full launch of the firm. As stated above, the Firm will also keep listings in the Yellow Books, within target market area based search websites, and among selected publications that are targeted towards business people and people with personal legal representation needs. Management expects that its marketing budget will not exceed 5% of the firm’s revenues.
In this section, describe the pricing of your services and products. You should provide as much information as possible about your pricing as possible in this section. However, if you have hundreds of items, condense your product list categorically. This section of the business plan should not span more than 1 page.
6.0 Organizational Plan and Personnel Summary
6.1 Corporate Organization
6.2 Organizational Budget
6.3 Management Biographies
In this section of the business plan, you should write a two to four paragraph biography
about your work experience, your education, and your skill set. For each owner or
key employee, you should provide a brief biography in this section.
7.0 Financial Plan
7.1 Underlying Assumptions
• The loan will have a 10 year term with a 9% interest rate.
• The Owner will acquire $100,000 of debt funds to develop the business.
• The Law Practice will have an annual revenue growth rate of 16% per year.
7.2 Sensitivity Analysis
Despite potential economic recessions, people will always demand legal advice and counsel regarding criminal cases, torts, and general legal advice for business operations. As such, only in the event of a severe economic depression would Mr. Doe expect that potential revenues could decrease as a result of a poor economy.
7.3 Source of Funds
7.4 General Assumptions
7.5 Profit and Loss Statements
7.6 Cash Flow Analysis
7.7 Balance Sheet
7.8 General Assumptions
7.9 Business Ratios
Expanded Profit and Loss Statements
Expanded Cash Flow Analysis